Analyzing IBM's Value Proposition and Transformational Leadership

This discussion post analyzes IBM's value proposition and leadership styles, focusing on the impact of Gerstner's transformational leadership. The author explores IBM's unique value propositions, including customer interaction, quality products, and innovation, and contrasts them with less effective strategies. The alignment of transformational leadership with IBM is examined through Gerstner's actions, emphasizing his outsider perspective, strategic changes, and focus on collaboration and customer relations. The analysis highlights how Gerstner's approach, combining elements of the Great Man Theory, facilitated significant changes within IBM, ultimately contributing to its success. References from various sources support the arguments presented.

Running head: THREADED DISCUSSION
Discussion on value proposition and leadership style: A case study of IBM
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THREADED DISCUSSION
Table of contents
Primary value proposition of IBM.............................................................................................2
Aligning Transformational leadership with IBM.......................................................................3
References..................................................................................................................................5

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Primary value proposition of IBM
Value proposition deals, which the unique values which enhances the reputation of
the companies and organization among the customers. In case of IBM, the unique value
proposition was many. One of this was personal interaction with the clients. This is in
response to the assumption that the clients lacked the ability to make practical application of
the learnt skills into the execution of the workplace activities (CNN Money, 2018). This
attempt did not prove fruitful as the experts were in a hurry to bring renovate the workplace
scenario.
Lessening the costs and contracting a huge portion of the customers to the IT
department cannot be considered as a value. This is because the other customers are deprives
of the services levied by IBM. Neglecting the strategies reflects opposition to the
organizational values in case of IBM. Using the strategies to close the deals and
manufacturing items on the self efforts is a foolish act towards luring the customers towards
the brands (CNN Money, 2018).
Providing alternative payment options to the IT customers represents the
consciousness of the IBM staffs regarding valuing their needs, demands and requirements.
Variation in the payment options provides enough space to the customers to exercise their
purchasing power. Being able to answer the needs of the customers, through the delivery of
quality goods, is one of the other values, which enhances the reputation of IBM. In
comparison to the progress, supplying quality products helps IBM to achieve success.
Seeking innovation in the quality of the manufactured products has enabled IBM to gain
loyalty, trust and dependence from large number of customers. The major drive behind this is
the development of strategic framework and maintaining transparency in the execution 0of
the business activities (Osterwalder et al., 2014).

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Consciousness towards the preservation of traditionalism in the process of innovation
can be considered as the unique value proposition for IBM. This consciousness enhances
their reputation among the customer. Moreover, this consciousness generates an urge within
the foreign investors to invest in the services of IBM.
Aligning Transformational leadership with IBM
The role played by Gerstner needs to be assessed for aligning transformational
leadership with the business of IBM. He perceived the internal infrastructure from the
viewpoints of an outsider. This enhanced his clarity regarding the necessity of change.
Therefore, he deeply analyzed the current internal environment of IBM (Banks et al., 2016).
This analysis brought to his notice the need for senior administratives, who are freshers in
terms of IBM business. For this, he preferred upgradation of the corporate governance rather
than stripping the departmental units of their power. Most importantly, he sketched the
changes within a structure, which helped him to systematize the activities according to their
priority. This systemtic approach generated coordination among the staffs.
Altering the perspective transforms Gerstner into a great man from just an ordinary
CEO. This transformation helps him to envision the situation of IBM from different
perspective, compelling him to change the approach towards marketing (McCleskey, 2014).
Thinking of holding a firm and stable hand enhances the personality of Gerstner in terms of
assessing the effectiveness of the undertaken steps. Viewing it from other perspective, taking
external assistance acts as a wise step for Gerstner in terms of ensuring the smooth
functioning of the business activities.
Creating a plan before starting the necessary works is a tactful step of Gerstner in
terms of achieving positive results. His initiative towards mitigation of conflicts is his attempt
towards sharing the success (Baldassarre et al., 2017). This quality makes him down to earth

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and an asset for IBM. Collaborative feeling in Gerstner acts as an inspiration for the staffs of
IBM in terms of planning before starting a work. Personal interaction with the clients reflects
his concern towards them in terms of ensuring their wellbeing. This can be considered as an
attempt towards enhancing the stability in the relationship with the clients. This attempt
bridges the gap between the designation of CEO and the stags. Their identities merge in terms
of seeking knowledge regarding the efficient and effective means of executing the business
activities. This merging adds to the qualities and attributes of Gerstner as leader and enhances
his personal and professional development (McCleskey, 2014). Based on the above aspects, it
can be concluded that IBM would achieve new heights under the leadership of Gerstner.
Delving deep into the aspect, Great Man Theory merges with the transformational
leadership in this discussion. This is in terms of the alterations, which Gerstner made in terms
of transforming the business scenario of IBM.

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References
Baldassarre, B., Calabretta, G., Bocken, N. M. P., & Jaskiewicz, T. (2017). Bridging
sustainable business model innovation and user-driven innovation: A process for
sustainable value proposition design. Journal of Cleaner Production, 147, 175-186.
Banks, G. C., McCauley, K. D., Gardner, W. L., & Guler, C. E. (2016). A meta-analytic
review of authentic and transformational leadership: A test for redundancy. The
Leadership Quarterly, 27(4), 634-652.
CNN Money (2018). International business machines corp . Retrieved from CNN Money:
http://money.cnn.com/quote/profile/profile.html?symb=IBM
Covin, J. G., Garrett, R. P., Kuratko, D. F., & Shepherd, D. A. (2015). Value proposition
evolution and the performance of internal corporate ventures. Journal of Business
Venturing, 30(5), 749-774.
McCleskey, J. A. (2014). Situational, transformational, and transactional leadership and
leadership development. Journal of Business Studies Quarterly, 5(4), 117.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design:
How to create products and services customers want. John Wiley & Sons.