An IBM Change Story: Transformational Change from Below and Above 1. Who were the forerunners/ advocates of the change? Change From Below David Grossman is a computer programmer at IBM. -John Patrick is a member of the strategy task force at IBM. Change from Above Lou Gerstner was IBM’s CEO in the 1990’s. Samuel Palmisano is IBM’s CEO from 2002 who took over Lou Gestner. 2. What changes were implemented? How was it managed? The change in IBM started in the early middle 1990’s.
David Grossman, computer programmer who saw the important role that the internet will play in how business will be done in the future. He began convincing the head of marketing and her team but ended up with an ally in John Patrick, a member of IBM’s strategy task force. Together, they created an underground community of web fans who shared technical information and worked willingly for a common goal. Even problems with the lack of funding that usually comes with unofficial projects has been toppled because of the support of several business units, which eventually spread through out the organization.
Further, time came when they were already supported by IBM’s then CEO Lou Gestner. The change initiated by Grossman and Patrick started the period of change and reinvention at IBM. After the change from the low levels, the top management also did its part in facilitating the change that helped bring IBM into the great global service provider with almost a quarter of its revenues coming from e-business made possible by the internet.
From CEO Lou Gestner, who supported the two major change advocates to the new CEO Samuel Palmisano, who advanced the changes to the next level. Palmisano focused on improving teamwork and collaboration. He started by distributing his CEO bonus among the top level management because he believed that he can better foster collaboration by bridging the pay gap between him and his team. Later, he disbanded the top level management to form a three teams that he could work with directly- one for strategy, technology, and operations. . What was the reaction to the change? The reaction to the change was positive from both the low level to the top level of the organization. Since the initial change advocates were from the low level, it was not hard for the rest of the low level personnel to accept the change. On the part of the top management, the CEOs were receptive and accepting of the changes from the low level. In fact, they even encouraged the change and advocated a few more of their own.
