Leadership's Impact: Gerstner and IBM's Business Transformation

This report provides an in-depth analysis of Gerstner's leadership and its significant impact on IBM's value proposition and overall productivity. It explores how Gerstner's transformational leadership style influenced IBM's business operations, emphasizing the importance of customer-centric approaches and innovation within the administrative system. The report examines specific actions, such as Gerstner's outsider perspective and interactions with clients, highlighting how these contributed to strategic changes and improvements in the company's performance. Furthermore, the report delves into the impact of organizing for solutions and the importance of considering staff as equals in fostering a positive work environment, which ultimately enhances the relationship with clients and drives success. The references include several scholarly articles and books that support the analysis.

Running head: LEADERSHIP IN BUSINESS
Assessing the role of Gerstner towards value proposition of IBM
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Table of contents
An insight into the value proposition of IBM............................................................................2
Impact of transformational leadership on the productivity of IBM...........................................3
References..................................................................................................................................5

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An insight into the value proposition of IBM
At IBM, the customers play an important role in achieving success. Therefore, the
personnel make hard efforts to cater to the needs, demands and requirements of the
stakeholders and shareholders. Typical evidence of this lies in the face to face discussions
with the clients regarding the issues they are facing with the services of IBM (Pruzan et al.,
2017). Upon the discovery of the lack of adequate skills and resources, Gerstner, the CEO,
decided to bring innovation within the administrative system. This spontaneity reflected the
consciousness towards the wellbeing of the customers. Providing services at low prices to the
customers of IT Departments signing contracts contradicts the aspect of ensuring the
wellbeing of the customers as a whole. Viewing it from the other perspective, this practice
affirms the gaming mentality of the IBM personnel regarding the needs, demands and
requirements of the customers (Goleman, 2017). Herein, the aspect of “value” attains a
negative connotation in terms of the business operations of IBM.
Focusing on the administrations with strategic weapons aligns with the thought of
exposing systematic approach towards the needs of the stakeholders and shareholders. On the
other hand, using the strategies for producing “stand alone items” can be considered as the
misutilization of the created strategies. This misutilization could lead to negative outcomes
due to compromise with the customers’ needs. Tagging IBM as “answer driven organization”
seems inappropriate in terms of this misutilization. Delving deep into the word “quality stand
alone items” reflect the fact that its quality is enough for luring the customers (Chang, Chen
& Chiou, 2015). This confidence aligns with the value of “honesty”, enhancing the stability
in the relationship between the customers and IBM personnel.
Taking pride in providing the customers with quality services aligns more with the
satisfaction of the customers instead of IBM’s success. Application of fresh knowledge, by

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the IBM personnel towards the production of innovative quality goods and services,
possesses flexibility for luring more customers towards the brand. This aspect enhances the
self efforts of the personnel in terms of generating high value for the betterment of the
organization.
Being a solution supplier, IBM personnel, through innovation, maintain stable relation
with the clients. This stability helps them in overcoming the challenges and enhances the
productivity. Referring to various external sources, through the preservation of traditionalism
helps IBM personnel to achieve loyalty, trust and dependence from the clients (Yıldız,
Baştürk & Boz, 2014).
Impact of transformational leadership on the productivity of IBM
The heading “organizing for solution” bears direct correlation with the aspect of
leadership. This is because, for transforming, an individual needs to organize himself
according to the identified goals and objectives. Self-organization was what Gerstner; the
CEO of IBM did for altering the business scenario. One of the remarkable acts he did was,
perceiving the current situation of IBM from the perspective of an outsider. This perception
provided him with the solutions regarding bringing the innovations. He did not stop here. He
interacted with the clients for assessing the effectiveness, appropriateness and feasibility of
the direction in which he is moving (Northouse, 2015). The responses of the clients
compelled Gerstner to put on thinking cap for estimating regarding IBM’s progress.
Regulating the performance of the department confronted him with the actual
outcome of the developed plans. In the process of this regulation, Gerstner encountered
several ups and downs, which possessed flexibility towards deviating him from his targeted
goals. However, his determination, commitment and perseverance assisted him to emerge as
a successful leader.

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Overall, Gerstner’s contribution was crucial for IBM in terms of altering the business
scenario. Such a flexible hand proved beneficial for IBM in achieving new heights of success.
Considering the staffs equal makes him a people’s leader (Vaduva et al., 2016). This kind of
mentality generated an urge among the clients to invest in the services of IBM, which spread
the glory and fame of IBM into every corner of the world. Respecting the culture of the
clients, while interacting, provides an opportunity to the clients to voice out the issues, which
they are encountering in the business transactions. This type of treatment enhanced the
stability in the relationship between the IBM personnel and their clients. This stability, in
turn, was the gradual progression towards the introduction of lucrative deals, trades and
transactions for the stakeholders and shareholders (Yıldız, Baştürk & Boz, 2014). Leaders
like Gerstner are an asset for the organizations like IBM. Their hard work and strategic
approach towards the business activities would surely take the organization to new heights of
success.

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References
Chang, T. Z., Chen, S. J., & Chiou, J. S. (2015). Management leadership behavior and market
orientation: The relationship and their effects on organization effectiveness and
business performance. In Marketing, Technology and Customer Commitment in the
New Economy (pp. 276-281). Springer, Cham.
Goleman, D. (2017). Leadership That Gets Results (Harvard Business Review Classics).
Harvard Business Press.
Northouse, P. G. (2015). Leadership: Theory and practice. Sage publications.
Pruzan, P., Pruzan-Mikkelsen, K., Miller, D., & Miller, W. (2017). Leading with wisdom:
Spiritual-based leadership in business. Routledge.
Vaduva, S., Alistar, V. T., Thomas, A. R., Lupiţu, C. D., & Neagoie, D. S. (2016). Moral
leadership in business: towards a business culture of integrity. Switzerland: Springer.
Yıldız, S., Baştürk, F., & Boz, İ. T. (2014). The effect of leadership and innovativeness on
business performance. Procedia-Social and Behavioral Sciences, 150, 785-793.