Excerpts from:

Lou Gerstner Discusses Changing the Culture at IBM

December 9, 2002

Culture is king
These days, Gerstner sees the basis of IBM's subsequent transformation as wholly cultural. When he joined, however, it was not at all clear where the problem lay. In his first three months on the job, he didn't spend "an hour" thinking about culture, although he learned a lot about it without trying. There was the IBM culture of crisp white shirts, the culture of hordes of administrative assistants, and the culture, most debilitating, of the individual with a capital "I," of me-first for every employee.

Underneath all the sophisticated processes, Gerstner concluded, there is always the company's sense of values and identity.

"It took me to age fifty-five to figure that out. I always viewed culture as one of those things you talked about, like marketing and advertising. It was one of the tools that a manager had at his or her disposal when you think about an enterprise."

He added, "The thing I have learned at IBM is that culture is everything."