Below are some highlights from a Wharton interview with IBM’s previous CEO, Sam Palmisano (K@W, 1/18/2012.)
- Companies have a hard time seeing Act Two because they are so wedded to the product, and the financial rewards of their business model….they just don’t see, or they have a conservative view upon acting. Do I really want to take the risk of transformation?
- In 1993 and ’94, IBM had 412,000 employees — which dropped to 217,000 — and today is 426,000 EE in 170 countries. They represent different cultures, different religions, and different local priorities.
- “We do believe that part of the role as a company is [getting] permission of society to operate. Well, you need to partner with the societies where you operate. You just can’t be ‘anti’ the society and expect a partnership.” The economics of selling the ThinkPad to Lenovo, based in China, were not as attractive. But in the long term, it was a good deal for IBM because they partnered with a China champion…Lenovo.
- Leave the enterprise better than you find it. That should be your measure of success. You are a temporary steward of a wonderful institution and your role is to preserve the institution. It’s not about yourself.
Can your company transform to Act Two?
