The parallels are stunning. the world was changing, and IBM didn’t want it to.
They were stuck in the old ‘blue suit red tie’ paradigm invented for them by Tom Watson in the 1920’s, 30’s and 40’s and the world was becoming jeans and t-shirt friendly. PCs were taking over their space and mainframes were becoming dinosaurs. Their “story” about themselves, the way they related to the world, was old and rotting and they couldn’t see it. Not until Lou Gerstner came aboard from Proctor & Gamble and painfully forced them to get aware of their current state and how they needed to change for the future to survive did they shift their paradigm. They finally made the changes they needed to as a company to be successful in this “new” world.
The Post-Pandemic World
Consider the parallel with IBM and the business owners and managers today. Do you want to go back to “what got us here,” perhaps even resuming business the way it used to be? Sure, it’s comfortable and worked in the past. But consider this - Lou Gerstner didn’t take the reins of IBM to survive - he wanted to thrive. Here is how he transformed the company:
1. He called out the current state in no uncertain terms: virtually bankrupt and laughing-stock status.
2. He acknowledged that the values of the company hadn’t changed, but the behaviors and practices from the past successes weren’t going to bring the company to the next level. Drastic change was needed to be competitive again
3. He worked with a chosen team of his top talent who aligned on what they wanted IBM to become.
4. He rewarded wins and quickly punished relapses of old behavior.
5. He reiterated the new future with anyone and everyone who would listen. (New futures require constant reminders to displace everyone’s past story.)
6. He provided support to encourage the new future. i.e. – compensation packages and performance reviews were tied to the new future attainment, senior management was held accountable for the new futures targets, coaching and mentoring was provided to encourage the cementing of the new behaviors.
Eventually, after many long years of hard work IBM re-invented itself and took on the form it still carries today.
What’s Next?
The go-go years of the world bull market have changed. Some markets have virtually disappeared. Some good clients are struggling to pay, and the possible direction and future of some companies and industries are in doubt.
When will you begin that process and let go of what the company used to be and embrace how it’s going to be? Take this pause in the world as we KNEW IT to reflect, create something new, to better yourself and your company. You too can thrive in the post-pandemic world.
