Abstracts » Business, general

Gerstner's nonvision for IBM raises a management issue

Article Abstract:

IBM Chmn Louis V. Gerstner Jr.'s declaration that IBM does not need a vision right now raises the question of whether an executive with no experience in an industry and no strategic vision can fix a company. Some management experts disparage Gerstner's mechanics' approach to IBM, but Intel CEO Andrew Grove and Microsoft CEO Bill Gates play down the importance of vision. Gerstner may eventually develop a strategic vision. So far, though, he has fended off reporters' queries, saying he does not want to tip his hand to competitors. Gerstner will not even say whether he sees IBM as a hardware or a software company. A clear vision has been crucial to the success of other high-tech turnarounds, such as Unisys Corp.

Leadership

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IBM's Gerstner holds back from sales force shake-up

Article Abstract:

IBM CEO Louis V. Gerstner has made clear his first strategic move since taking the helm of the company. Gerstner has communicated to 13 top IBM managers that the company's biggest problem is its sales force, but Gerstner also admits that radical reform will not be the solution. Instead, Gerstner will try to improve the current system, while retaining customer loyalty. IBM's traditional sales strategy is being attacked because of rapidly developing technologies and the increase of niche markets. The most prominent reorganization proposal is the idea of splitting IBM into a number of autonomous units. Another idea is to divide the company's sales force by niche markets.

Selling, Strategic Planning

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