1 IBM: ORGANIZATIONAL CHANGE 4 Running head: IBM: ORGANIZATIONAL CHANGE IBM: Organizational Change Student Name Western Kentucky University LEAD 325 – Leading Change Cindy L. Ehresman November 12, 2018 IBM: Organizational Change Celebrating its one hundredth anniversary this year, International Business Machines Corporation is located in Armonk, New York, has 426,751 employees worldwide, and enjoys revenues of $99.9 billion (IBMa, 2011). Founded in 1911 in New York by Charles F. Flint, and originally named The Computing-Tabulating-Recording Company or CTR, the company manufactured and sold commercial scales, time recorders for industry, tabulators, along with other items. Operating out of New York City, the company employed 1,300 people with plants in several cities in addition to one in Canada. In 1914, Thomas J. Watson Sr. took over the company, and with his guidance, CTR became a frontrunner in technology and innovation, and a soon to be multinational corporation (IBMb, 2011). Changing its name to International Business Machines Corporation in 1924, IBM went on to develop new technologies, and in the 1940’s were on the cutting edge of the large electronic calculator research, eventually leading in 1952 to the IBM 701, their first large computer (IBMb, 2011). Also well known for introducing the first successful electric typewriter in the United States in 1935 and the Selectric Typewriter in the 1960’s (Batchelor, 2003), IBM continued to be in the forefront of innovation. As time went on IBM hung on to outdated methods of doing business, such as divisions producing their own parts, acting independently of one another and, in many cases, competing with each other. During 1993, IBM lost $8 billion and was near bankruptcy. Enter Lou Gerstner in 1993. He described the culture at IBM as, “inbred and ingrown” (DiCarlo, 2002). He tied compensation to the companies’ performance rather than by division to instill unity, consolidated divisions creating a culture of teamwork that had not existed at IBM, and eliminated products that were draining the company (DiCarlo, 2002). Through patience, hard work, and an understanding of the need for culture change, Gerstner was able to lead IBM back from the brink of disaster. Today, IBM even offers services in organizational change. References Batchelor, B. (2003). History of the IBM Typewriter. Retrieved from www.etypewriters.com: http://www.etypewriters.com/history.htm DiCarlo, L. (2002). How Lou Gerstner Got IBM to Dance. Retrieved from http://www.forbes.com/2002/11/11/cx_ld_1112gerstner.html IBM. (2011a). About IBM. Retrieved from http://www.ibm.com/ibm/us/en/ IBM. (2011b). IBM Achives. Retrieved from http://www-03.ibm.com/ibm/history/history/history_intro.html Running head: GE and Jack Welch Instructions- LEAD 530 Ter.