The outsider who saved IBM – on the death of Lou Gerstner

Former IBM president Lou Gerstner has died at the age of 83, IBM announced in a press release. Gerstner led the IT group from 1992 to 2002. He was the first chairman who had not risen through the ranks at IBM but had previously worked in management positions at companies such as American Express and RJR Nabisco. Upon joining IBM, he revamped the strictly hierarchical group, networked its different divisions, and, under the motto "E-Business," found a way to present IBM as a modern partner to industry. His restructuring of IBM is considered the most successful realignment of a globally operating group.

Lou Gerstner was the head of the corporate conglomerate RJR Nabisco when he was offered the leadership of IBM. The company had been maneuvered into a deep crisis under the leadership of long-time IBM manager John Akers and was on the verge of being broken up into individual companies, the so-called "Baby Blues." Gerstner held "Big Blue" together and ensured that the individual divisions communicated better with each other. As an outsider, he was not afraid of unpopular measures, such as the decision to stop the development of the OS/2 operating system, with which IBM had intended to regain control of the PC market.

In his autobiography "Who Says Elephants Can't Dance?" he wrote that OS/2 may have been technically superior but cost millions of dollars and, with its sluggish development, damaged IBM's image as an IT provider. As a cross-divisional theme, Gerstner determined that IBM should focus on "E-Business" instead of "E-Commerce." The acquisition of Lotus and the focus on Linux fell within his tenure. Towards the end of his time at IBM, Gerstner was knighted by the British. In the IBM press release on Gerstner's death, current chairman Arvind Krishna acknowledged that Gerstner continued to advise him regularly even after his time at IBM.

After his departure from IBM, Lou Gerstner dedicated himself to the Gerstner Family Foundation, Gerstner Philanthropies, which supports biomedical research, and the Helping Hands program.

(uma)