The business community mourns the loss of Lou Gerstner, the ex-chairman and chief executive universally acknowledged with saving and transforming IBM. He was 83.
He was at the helm of IBM from 1993 to 2002, an era where the formerly preeminent company was struggling for relevance against intense rivalry from companies such as Microsoft and Sun Microsystems.
When he took the reins, Gerstner, the initial external candidate to run the company, made a pivotal decision by scrapping a proposal to break up IBM—often nicknamed Big Blue—into independent "Baby Blue" divisions.
“Lou understood that clients didn’t want disparate tech products, they desired integrated solutions,” comments by the present CEO reflected.
At the time of his appointment, IBM's destiny was truly in doubt. The industry was changing rapidly, and many were questioning if IBM could survive as a unified organization.
His leadership reshaped the company not by looking backward but by focusing relentlessly on what clients would need next.
IBM was the leader in the technology sector in the 1960s and 1970s with its powerful mainframe computers. However, despite developing the IBM personal computer in 1981, the company lost ground in the explosive personal computer arena.
Rival firms created what became known as “IBM-compatible” machines, leveraging chips from Intel and software from Microsoft’s operating systems.
He surprised industry observers early in his tenure by famously declaring that what IBM least needed IBM required at that moment was a grand vision.” His position was that the primary focus must be to restore profitability and serve customers better.
As part of his many strategic decisions, he chose to abandon IBM's OS/2 operating system, ending a challenge to compete with Microsoft's Windows in the PC OS market.
Associates recalled Gerstner as a “direct” leader who expected preparation and challenged assumptions.
“He had a unique capacity to hold the short term and strategic futures in his head simultaneously,” a remembrance stated. He demanded much on execution, but he was equally focused on pioneering work.”
Before joining IBM, Gerstner was president of American Express and chief of RJR Nabisco. Following his time with the tech firm, he chaired the investment firm Carlyle.
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