Louis Gerstner - IBM Endeavors March 1942, was born in New York City, Long Island. In 1963, graduated from Dartmouth College, bachelor&#39;s degree in Engineering Technology. Students Gerstner era is very intelligent, honest, popular with good but also very clear straightforward personality. He can not tolerate him and things seem foolish. If someone shows defects and deficiencies, he would bluntly tell each other &quot;This is stupid.&quot; If someone is doing a bit silly, in his view the statement, he often will not tactful way to express their views, but let others stop statement. In 1965, Gerstner received the Harvard Business School&#39;s MBA degree, he joined the McKinsey management consulting firm. With his wisdom, Gerstner at McKinsey a miracle: the 28-year-old became the youngest partner at McKinsey, 33-year-old became the youngest director of McKinsey. In 1978, Gerstner served as served as Executive Vice President American Express Company, later to become established for the Express, &quot;American Express credit card,&quot; one of the goodwill of the hero. However, in the Kallsen 1981 American Express acquired the company, he had expected to be transported through Robinson&#39;s successor, President, CEO, however, been Kallsen 斯坦福威 尔 winner, board president of the throne. In 1987, Gerstner began looking for new opportunities. He was being recruited will be thrown Hydrangea CEO United Airlines, United Airlines, but was caught in labor disputes are among some of the company executives who think that Gerstner is not suitable for this job, Gerstner United Airlines chief executive officer and missed. April 1, 1993, Gerstner tobacco by the nation&#39;s largest food company boss turned into IBM chairman and CEO, was ordered to make up for its predecessor in distress to the IBM records left by the unprecedented loss. Gerstner to adopt a pragmatic attitude, six months, decisive cut of 45 million, the total destruction of the old mode of production began to cut costs and restructuring. Revive the mainframe business, expand service areas and lead to the PC market, IBM re-attack. The end of 1994, IBM acquired from the 90&#39;s the first profit since the three billion U.S. dollars. June 1995, Gerstner eventually the company 3.5 billion acquisition of Lotus, the largest merger in software history of the case, began to launch a general offensive software market, promptly winning the enterprise network market. In 1995, IBM&#39;s sales exceeded 70 billion U.S. dollars mark. IBM&#39;s mainframe business has also risen. November 15, 1996, IBM shares rose to 145 U.S. dollars, reaching the highest point of 9 years. Lou Gerstner brought IBM rolling for the profits earned for himself a high income. In 1996 he had received 82.5 million option, the book value of 69 million. March 1997 the board agreed to give him an increase of 30 million options and hope that he do another term until 2002. Additional 2 million for this company stock options. If IBM stock can maintain 10% growth momentum, that the value of these shares will be 330 million U.S. dollars. April 1, 1993, Fool&#39;s Day. Gerstner took over from former Akers of IBM&#39;s right to handle, as chairman and chief executive officer. Hilton Hotel in New York news conference, he was full of curious people, so that a layman to the world&#39;s largest computer company in charge, this also happened in the most bureaucratic and conservative, it is inconceivable within IBM. Gerstner is the theme throughout the conference: &quot;I am new here, do not ask me where or what questions to answer, I do not know.&quot; But he said that he learn quickly, and the courage to take stringent measures . In fact, the day he issued this clearly signals a change IBM: he different to wearing a blue shirt. After the meeting, Gerstner walked into the Armonk headquarters in the southeast corner of the third floor of the office, here, but IBM&#39;s highest center of power. Of course, sitting in this position is also not easy, many people rely on cigarettes and fast food business started on the computer industry, as this is purely a layman&#39;s Gerstner positions cynical, joked that he wants to IBM to remove it. However, Gerstner has effectively retaliate with action of those people. As we all know, IBM has long been a computer industry executive acknowledged leaders in the world is seen as a symbol of American scientific and technological strength and national competitiveness of the fortress. But in the beginning of the 20th century, after 90 years, Big Blue has become the faltering, even to the brink of collapse. In 1992, Gerstner took office, IBM losses of up to 50 million; in 1993, when Gerstner took over, IBM leading enterprises in the computer industry has begun to decline, is facing the danger of being dismembered, the Shih- satisfied the first year after taking office, IBM loss of 81 million; in 1994, IBM profit of 3 billion U.S. dollars, year after year after harvest. &quot;Gerstner&#39;s personality than the nails still hard, at present IBM difficult, are necessary like him who has the extraordinary ability.&quot; IBM has such a senior executive commented. Gerstner took over IBM, the IBM does not replace most senior executives, but through his actions and the power to reverse the hard-line remarks IBM &quot;Yilaoyishao&quot; their style and way of thinking, straight cut IBM habits of market operation: bureaucratic model, the market impact substantially reduced the development cycle is slow, costly operation of enterprises, big pot and so on. Facing criticism from internal and external criticism Gerstner insistence shock therapy, significantly cut costs, and successfully persuaded the restructuring of the Board - &quot;If there is no commitment to produce high-level business at least 5 years to reform , then the institutional restructuring not be successful, but is not difficult to start, but will change endure, until an end. &quot; He also actively abolish the old rigid system, such as the staff dress requirements and unnecessary meetings and conferences; He also used the stock options and financial incentives to encourage ways of combining their subordinates. However, in exclusionary terms, Gerstner is not soft, and even his brother is no exception. It can be said Gerstner treatment on his brother Dick has caused much controversy within IBM. As a warm, sociable, sociable, senior director, Dick claim to be a spokesman for IBM tradition. In 1960, Dick entered IBM as industrial engineer, was promoted to president of IBM Asia Pacific. In 1988, he was appointed to handle the complicated PC business. However, just before he took office, suffering from Lyme arthritis and had to leave and then, because of the company for a period of 3 months to return to consulting project at a time when Lou Gerstner took over IBM and IBM occasion. As a conservative forces within the representatives of IBM, Dick finally conducted his first meeting with Gerstner leave IBM. In the management concept, Gerstner always find ways to make the company&#39;s direction so that every employee know, this is usually a large company the most difficult. He broke the previous IBM hierarchical approach, direct e-mail and staff communications. For example, if the United States, today announced the company&#39;s global headquarters in performance, then the next morning, more than 20 million employees worldwide e-mailbox president will have a detailed report. Every place he went to a special arrangement to be an hour meeting with all staff, to talk about the company&#39;s direction, and then leave 45 minutes, the staff raised their hands free to ask him questions. So he always had a way to hear the voice of customers, staff hear the voice, to see the market change. In the end, Gerstner did not let his colleagues had expected disappointment. In his nine-year tenure, Gerstner made a decision two of the most important: First, split the company rejected the proposal, but to make IBM&#39;s reach to global expansion, more diversified business, so IBM to avoid opened the depression of high-tech industry; second is IBM&#39;s business model has changed, it shifted business focus from hardware manufacturers to provide services. Today, IBM Global Services has become the fastest growing this company, a division of benefits, and has accounted for 43% of total sales. [Edit] &quot;Customer First&quot; strategic adjustment of the Hong Thirith it pulled the curtain Gerstner took a few weeks after a Virginia resort, Hong Thirith, IBM&#39;s largest 200 customer information executives were invited to participate in an extraordinary meeting. This is the first time IBM in front of customers admit that they are not Jack of all trades is the first time, IBM&#39;s manager of open-minded to ask two customers the most simple question: What are we doing right? What wrong? Gerstner said: the information revolution is imminent, but the premise is simple worship of the computer industry to stop the technology, and began to focus on technology for our customers real value. Simply put, the customer first, IBM second, the third of the business. IBM can no longer rely on light shoes and a smile to cross the border. Like master chess, and many wonderful Liansha layout are seemingly normal copy number from the beginning. Looking back now, Gerstner, &quot;his excellent&quot; The secret is not a major technological breakthrough, not price Henzai knife, not even grasp the changing market. But the leadership of IBM in Hong Thirith it recovered a basic business principle: keep in close touch with customers. This may seem an understatement after Gerstner immediately faced a most difficult choice, but also his best in a strategic choice. As we have discussed the relationships of Which will lead to, &quot;what is to small boat U-turn, or to ship large anti-wave?&quot; At that time, Gerstner has run into this problem. Akers left his former executives to IBM for the dismemberment of a plan, and get majority approval. The situation in the face of panic, Gerstner must make decisions as soon as possible. According to Gerstner &quot;customer first&quot; philosophy, a disintegration of IBM, of course, can not be integrated to provide quality customer service, on the contrary, only to maintain the unity of the company, face to face with a client, only more competitive, while This is precisely what IBM a unique resource. Gerstner to adhere to the &quot;service and technology with both hands, so that IBM, a comprehensive development&quot;, can not be dismembered not only IBM, but also to make the greatest efforts to bring IBM into a huge fist clenched. Thus, Gerstner has decisively rejected the dismemberment plan Akers, IBM decided to maintain the integrity. This is not casual, on this most people have recognized the dismemberment plan a &quot;total negation&quot; of course there are great risks. However, Gerstner did not notice this, he can not compromise, we can not compromise, that is his personality. He ruled out any interference, and immediately arranged according to their strategic intent of the next plan of action. Seems straightforward personality related, Gerstner has not so he began to convince those who doubt their own feet have not completely firm, launched a series of failures on the IBM tradition of strategic action. Then, he employees say: &quot;I want you to know that the wind we would head towards the past. I can not predict exactly what will happen when the exciting changes, but I believe the wind will change.&quot; Fortunately, the end of 1994, IBM profit of 30 billion U.S. dollars, this is the 20th century, the first time since the 90&#39;s profitable, year after year after harvest. It may be done speedily and vigorously School retribution, Gerstner won with facts unprecedented confidence. Otherwise, he was way ahead of the bad away. June 5, 1995, finished with &quot;housekeeping&quot; of Gerstner finally down the outside edge, he quickly realized he wanted the world, IBM Zuanjin a fist with much power. Gerstner first took aim at the Lotus company, wants to own it receives under its command. Is expected, Lotus&#39;s president Jimumanzi strong resistance. Gerstner immediately decided to forcibly annex. Through a variety of media, to send a strong signal to the world: Gerstner to Lotus&#39;s 55 million common shares listed on the forced acquisition. IBM opened a high price to Lotus stock price doubled. At the same time, Gerstner said that if Lotus dare to &quot;anti-takeover&quot;, IBM will always raise prices, will fight in the end. Most Hou Manzi compromise. June 11, this deal eventually 3.5 billion deal, becoming the largest software acquisition in the history of the case. A week&#39;s time, Gerstner made a pretty quick decision, to those who support the dismemberment of his colleagues left unforgettable memories, IBM taxi air rising up immediately. Then, Gerstner&#39;s with Lotus Notes software as a bomb, immediately launched a strong attack to the software market. Few months, had moved the company won the enterprise network market, IBM once again shows the power of Iron Fist. To the end of the year, IBM&#39;s sales exceeded 70 billion U.S. dollars mark, mainframe business has rapidly risen. IBM completely out of the crisis, full of hope. November 15, 1996, IBM shares rose to 145 U.S. dollars, reaching the highest point of 9 years. Big Blue re standing proudly in front of the world. January 1997, the annual global staff conference, Gerstner said: &quot;In 1997, we have nowhere to hide. For all of us, this is a year of checkout. In 1994 we proved that they can survive; 1995 was the year we hold our ground; in 1996 show that we can grow; 1997 we will show the world that we can become leaders. we no longer need any excuses. &quot; Gerstner never say no to grasp the fine words, but he said them, we will be able to fulfill. By 2001, IBM revenue reached 88.4 billion U.S. dollars, net profit 7.7 billion, creating the &quot;myth Gerstner&quot; climax. Rising trend in recent years, IBM is striking. Competitors in the various companies as a protracted recession and the collapse of the case across the board, IBM&#39;s earnings per share soared, largely thanks to IBM by the clever implementation of cooperation strategies. Zai Gerstner&#39;s leadership, and have their own rival software companies work together to stop a lot of application software. The strategy to make IBM gained great interests and motivation. November 1999, Gerstner has developed cooperation with independent software company policy. In the commercial software, the United States and Germany, SAP, Microsoft has an overwhelming advantage, IBM has been losing money then. Gerstner thus concluded that the customer is not anything else to use IBM products. So he decided to withdraw from the business software field, while the use of cooperative strategies to fill the blank piece of. At the same time, Gerstner has realized sales of co-sell each other&#39;s products without passion is only a formality, it will fall through. Therefore, he actively contributed to IBM reached a series of agreements with software companies. More than 70,000 leaders and sales of IBM&#39;s business agent accepted the partners software, related training, in order to sell to the customer information system software is recommended partner. Now, Gerstner implemented profit-sharing alliance and cooperation pattern has been involved in computer services and all areas of competition. Using this model, IBM in servers, storage devices and databases and other key areas to expand their market share. As a global leader in computer services, IBM also expanded its hardware and software sales. Siebel Systems Inc. in the United States co-operation with the IBM process, the United States, Siebel Systems will be the company of all business software available to IBM&#39;s server, so that the purchase of Siebel Systems Inc. software users, IBM will be easier to sell their server, but also to take Siebel Systems to consolidate itself as the world&#39;s largest customer management software company status. Currently, through the global services business, IBM has 72 software vendors have established a strategic cooperative relationship. And further, said Gerstner, IBM&#39;s goal is to establish a joint venture up to 200 network. In his view, at this world, a company can not only use their own hardware, software and sales force, we must merge themselves into a larger ecological systems. But he said the ecological system has grown in strength every day. Through this joint collaboration, IBM2001 years ago, three quarters to 22.5 billion dollars to create sales, while the year 2000, operating income from such cooperation has only 7.5 billion U.S. dollars, and progress is indeed obvious. In 2001 years, IBM in the Gerstner&#39;s traction is still pressed on, with a certain growth rate, the stock price up 35%. In the operation and management under Gerstner, IBM today has become a computer company does not manufacture computers, and many U.S. computer manufacturers did not realize until today had to do such a strategic adjustment. As the industry leader, IBM2001-year sales of up to 86 billion U.S. dollars, total profits, up to 7.7 billion U.S. dollars, second only to Microsoft in the technology industry. IBM therefore deservedly named the &quot;Fortune 500&quot; top ten. It can be said Gerstner in IBM10-year term for all the efforts made in the final of an immortal, now, IBM has once again rise from the ashes, regain its past glory. Gerstner&#39;s middle school is in a highly competitive Catholic schools spent. Strict discipline and their parents excited, Gerstner academic performance has been among the best. Since then, he got a scholarship at Dartmouth College, entered the school to study engineering degree. Impression in the university students, Gerstner is a very intelligent, honest people, and popularity are pretty good, but at the same time he&#39;s straightforward personality is also very obvious. He can not tolerate him and things seem foolish. If someone shows defects and deficiencies, he would bluntly tell each other &quot;This is stupid.&quot; If someone else seems to be a bit foolish in his statements, he often will not tactful way to express their views, but let others stop statement. Shortly after graduation, Gerstner quickly into the Harvard Business School to study MBA, but these are for later laid a solid foundation for success. In 1965, Gerstner received the Harvard Business School&#39;s MBA degree, he joined the McKinsey management consulting firm, will soon become hot on the 1st character. Although he knew little about finance and banking, but he was often able to quickly absorb large amounts of information, and immediately concluded and business problems. It is also with his outstanding performance at McKinsey, McKinsey Gerstner created a miracle - in the age of 28 became the youngest partner at McKinsey, the age of 33 became the youngest McKinsey director. If the Harvard Business School study has become an excellent Gerstner build a strategic thinker, he&#39;s 13 years at McKinsey is that he can be the full and exercise, and make it up to a new level. In 1978, Gerstner left him for many years in the McKinsey management consulting firm, into the American Express Company as executive vice president, responsible for credit card business. After entering the company, he completely ignored the rules and the level of the company&#39;s promotion system, and actively introduce outsiders senior positions. View of the then American Express credit cards and traveler&#39;s checks are facing fierce competition in the field, his positive use of consumer-oriented implementation of a single brand, be established for the Express, &quot;American Express credit card,&quot; one of the goodwill of the hero. However, in 1981, American Express acquired Kallsen company, Kallsen company personnel flows to Gerstner quite disturbing. He was originally expected to be transported through Robinson&#39;s successor, President, CEO, however, been Kallsen Stanford. Will the winner, board president of the throne of. In 1987, although Robinson remains as president of Express, but unwilling to wait for Gerstner began looking for new opportunities for personal development. He threw the ball of the then CEO of United Airlines are being recruited, but was caught in the United Airlines labor dispute is among the executives of some of the people think that Gerstner is not suitable for this job, Gerstner United Airlines chief executive officer and missed. In 1968, Gerstner and Elizabeth from Virginia. Robins. Forestry marriage. For their marriage, the McKinsey outstanding strategist believes that this is his most sensible choice. After marriage, they have two children. As a public figure, Gerstner rarely talked about his personal life. He is a devout Catholic, no matter how busy week, he will always take time to attend Mass, but he is always on the Catholic Church the &quot;Golden Pr&quot; dismissive. Gerstner familiar people know, he is a strong sense of time, he hated the people and things of any waste of time, but he was willing to spend time painstakingly planted in the yard asparagus. For golf, Gerstner is like golf, but he has not tired of endless tedious ceremonial rituals. Gerstner&#39;s life as his business management as plain. He was little interest in celebrities to participate in bowling, he does not like meeting a movie star, or even national leaders are not very interested in meeting. It is said, he gave no time for the White House rejected the invitation. But sometimes, Gerstner is valued status of everyone, especially his own status, was not allowed to be challenged. Renault during what level he can take the company private aircraft, and even everyone&#39;s seat is very picky, and there are strict rules, and his office at the end of the table plane was called the &quot;throne&quot; . Gerstner&#39;s success in the business for all to see, but at the same time he was also very concerned about the public good, especially the public school education, he was a loyal supporter of quality education. In 1994 he co-authored with Du Dun &quot;Education reform: the entrepreneurial spirit of American public schools.&quot; He also served as a U.S. political and business leaders launched, aimed at improving the quality of education in public schools co-chairs of the organization. During his tenure at IBM, Gerstner will be education reform as a project company in order to support the system of school reform. Through education, innovative projects, IBM has 21 states and school districts to establish a strategic partnership, through the use of IBM technology and technical assistance to eliminate barriers to school reform and improve standards of our students. In view of promoting the educational development of its considerable contribution, Gerstner was awarded many prizes. June 2001 the Queen awarded Sir Gerstner honorary title of the British Empire, in recognition of his cause of public education and the outstanding contribution of the great achievements obtained in the business. I have followed the implementation of management principles rather than procedures. The market to determine all our behavior. I am a deeply believe that quality, a strong competitive strategy and planning, teamwork, performance pay system and business ethics responsibility. I desire those who can solve problems and help colleagues solve the problem of people; I will dismiss those politicians-type person. I will focus on strategy formulation, implementation strategy, the remaining task is to your affairs. Only to non-formal means let me know the relevant information. Do not hide bad news? I hate unexpected things; do not try to lie before me; from outside the production line to solve the problem, not the question to the production line. Swift action. Do not be afraid to make mistakes, because mistakes have even as we move too fast and not too slow. I have little idea of the hierarchy. No matter who, no matter the level of their duties, as long as help to solve the problem, you should discuss with the solution. Committee meetings and conferences to reduce to a minimum. Cancellation of the decision making system. Let us some more candid and straightforward communication. I am not proficient in technology, I need to learn, but do not expect me to be a technical expert. Head office must be able to explain a variety of commercial terms for me. Gerstner saved IBM&#39;s nine key words: 1, focus Gerstner believes that concern for the success of an organization is a critical factor. If a management team&#39;s focus is not clear, it is very likely to go astray; lack concern is mediocre company in the most common phenomenon; found a focus, it means the company established a sense of direction. Concern can force companies to limit their ambitions, to avoid &quot;the mountain that looks high&quot;, enabling managers to focus resources, improve management. First came to IBM, Gerstner to find Blue&#39;s concern for their own set of &quot;makes decisions within 90 days&quot; requirement. 2, cash flow Gerstner that the company&#39;s cash flow can best reflect a company&#39;s operation. Gerstner took 30 days, both by the end of April, he reports on the results from the company learned that the company&#39;s financial situation and financial situation to the next definition: &quot;the financial blood loss quickly.&quot; July, Gerstner made four key decision-making, one of which is &quot;lack of production assets for sale to raise funds.&quot; Meanwhile, the massive reduction in spending on non-competitive and create new business models, recycling internal process savings. 3, principled leadership Gerstner believes that people can be divided into four categories of &quot;positive action to promote human events; passive acceptance of events in the person; of the bystander mentality of people holding the event; do not care about anything.&quot; Employees, Gerstner uphold the approach is leading principle. Why principles? Because all the high performance of the companies rather than through the adoption of the principle procedures for leadership and management. Gerstner through three steps to achieve his principled leadership: First established eight new principles; second, to establish the requirements of 14 behavior change; third, to establish a new way of promotion staff. 4, customer-oriented Gerstner believes that to be the market (customers) for all actions and behavior to determine the motive. In his development of the company eight new principles, the first is: the market (customer) is the driving force behind all our actions. In order to understand customers, he launched the &quot;warm embrace&quot; program. The so-called &quot;warm embrace&quot; program, is to ask IBM&#39;s senior management team of 50 senior managers of each individual must be within three months, at least visit the company&#39;s five largest customers in one. The executive manager of its 200, but also the implementation of &quot;warm embrace&quot; program. After implementation of the plan, each person must submit a 1-2 page written report. Through the &quot;warm embrace&quot; plan, Gerstner realized IBM customer-oriented corporate culture change. IBM&#39;s CEO in the written conditions that must exist when Gerstner that &quot;strong customer-centric&quot; is the CEO&#39;s personal qualities will be indispensable one. 5, from a practical point of No new thing under the sun. &quot;From the reality&quot; is a very old phrase. Even if such an ancient principles (awareness), Gerstner to execute it, it by no means easy. To develop a good strategy, the most difficult part is the competitiveness of pragmatic analysis, however, almost all organizations will foster a sense of pride and are willing to think of themselves as the best, and, in the management of these organizations who would encourage this sense of honor and pride. But facts are facts, good intentions must be based on a consistent basis and without prejudice. To be realistic, Gerstner asked (1) Each division of the company must submit a 10-page report. The report includes customer needs, product range, competitive analysis, technical outlook, the economic situation and short-term critical issues and development prospects of the next year. Description of the IBM in general. (2) office to help draw up a visit schedule Gerstner, so as soon as possible with customers and staff exchanges. (3) site visits to the company&#39;s departments. (4) Customer Conference held. Thus, the reality is easier said than done will be difficult friends. 6, on marketing IBM in the Gerstner before entering, marketing, and not as a unique professional knowledge, has not been treated as a unique professional knowledge to the implementation and management. Gerstner that a successful company must have a customer-oriented and a strong marketing. To this end, he hired experts, within 60 days of the IBM marketing situation analysis and to improve and strengthen the marketing capacity, the competitor analysis, market segmentation, brand management, consumer preferences, marketing and advertising channels to establish systems integration and a series of big moves, and finally make IBM a voice, a body to maintain the integrity of the IBM Corporation. 7, merit pay Gerstner believes that it will be your check, not what you expect. Do not expect managers to be confused with the inspection. When the company&#39;s strategy is determined, the employee reward system must match with the strategy. Gerstner treatment of wages carried out a major reform: (1) all senior managers are part of the end of the year award from the company&#39;s overall performance (non-departmental performance) to decide. (2) The second level of senior managers in the 60% bonus depending on the company&#39;s overall profit status. (3) implementation of the &quot;personal business commitment&quot; system, employees must be based on business performance bonuses and personal contribution to the foundation. Gerstner that set a measurable goal, and the staff responsible for this goal is the best way to motivate employees. 8, the implementation of In &quot;Execution&gt; book, the Executive is considered&quot; a systematic process. Including close discussion of methods and goals, challenges and consistently follow up. &quot;This is the theory of implementation. Zai Gerstner view, the implementation is to transform strategy into action and measure its results, is a strategy to promote the real key to success. Committed in the implementation of the biggest mistakes is to confuse expectations and inspection. Super strategic implementation and not just doing the right thing, but must be faster than the competition, more often and more effectively to do the right thing. &lt;Who says Elephants Can not Dance? &gt; Glistened Gerstner superb execution and implementation of the role in business management insights. 9, passion Gerstner believes that business is a competitive activity, either success or failure, there is no other choice. He said, I like to beat the competition, and I very, very, very to hate failure. Therefore, the leadership of the charm is passion - passion to succeed. Passion like a platform on the quality of the machine&#39;s power, it is not an empty nothingness of things, for the managers, the passion is leadership from the beginning of the individual, it is dependent on the company&#39;s strategy, culture, inside, and that passion implies in every human heart. every human heart.