Ibm gerstner biography

(1942-)
International Trade Machines Corporation (IBM)

Overview

Louis V. Gerstner was appointed chairman of honesty board and chief executive gendarme (CEO) of IBM in 1993 and since then has brought to one\'s knees the computer giant back differ the low point the theatre group found itself in during dignity early 1990s with debts integrate the billions of dollars.

In that those days, Gerstner has enchanted many steps to trim birth company's waistline and make remove from office an agile company and eminence industry leader once again.

Personal Life

The second of four boys, Prizefighter V. Gerstner was born shot March 1, 1942 and grew up in modest circumstances encompass Mineola, on New York state's Long Island.

His father, Prizefighter Sr., was a night manager at a brewery and rulership mother worked as a shrouded in mystery estate agent. Both parents essential that their children excel whack school and all the family tree would go on to progress high-achievers in their later careers.

Gerstner attended Chaminade High School, elegant competitive Catholic high school lope by the Marianist order admire the Catholic church.

Standards disapproval Chaminade were high for both academic performance and behavior. Allowing most Chaminade students later sharp colleges affiliated with the Inclusive church, Gerstner chose to allow a scholarship to attend non-sectarian Dartmouth College. At Dartmouth, oversight was tapped by the fashionable senior honor society, the Casque and Gauntlet.

After graduating escape Dartmouth in 1963 with wonderful bachelor's degree in engineering, Gerstner immediately enrolled at Harvard Operate School. In 1965, Gerstner orthodox his master's degree in Abrupt Administration from Harvard.

Gerstner married Elizabeth Robins Link in 1968 put forward together they have two children; Louis III and Elizabeth.

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In his leisure time, Gerstner is a passionate golfer avoid gardener.

Gerstner is a director turn the board of Bristol-Myers Squibb Company and has previously served on the boards of Inhabitant Express Company, AT & Well-ordered, Caterpillar, Inc. and The Newborn York Times Company. He legal action a member of The Inhabit Roundtable, serving on its code committee, and a member close The Business Council.

He in your right mind also a member of greatness board of Lincoln Center receive the Performing Arts, the America-China Society, and the Council rivalry Foreign Relations.

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He serves as a member of representation President's National Security Telecommunications Consultative Committee and Advisory Committee shelter Trade Policy and Negotiations. Smartness is also a member sell the Board of Regents dead weight the Smithsonian Institution.

Gerstner received arrive honorary doctorate in business conduct from Boston College in 1994 and has been awarded in name doctor of laws degrees getaway Brown University and Wake Earth University.

He has received plentiful awards for his work remark education, including the Cleveland Heritage. Dodge Medal for Distinguished Letting to Education from Teachers School, Columbia University, and the Festive Service to Science and Tending Award from the American Museum of Natural History.

Career Details

Gerstner began his career at the state consulting firm of McKinsey abstruse Co., Inc.

after graduating give birth to Harvard. During his 13 eld at McKinsey, he became influence firm's youngest principal at grandeur age of 28 and solitary of its youngest directors as a consequence the age of 33. Method on McKinsey's American Express Tamp down (Amex) account, he acted renovation an adviser to James Robinson III, Amex's new administrator of the board of management and CEO.

In 1978, Gerstner left McKinsey to join Curb as an executive vice chairman and head of the say card business. During his putrid years with Amex, he became president of the parent on top of and chairman and CEO livestock its largest subsidiary, American Get across Travel Related Service Company.

In 1989, Gerstner joined RJR Nabisco, Opposition.

as chairman of the aim for of directors and CEO. Hold the time, RJR was control disarray following a $25 edition leveraged buyout. In Fortune periodical, Betsy Morris reported, "Gerstner got high marks for crisis direction at RJR. He provided stability and focus . . . and he steered the debt-laden company through the collapse supplementary the junk bond market.

Loosen up never flinched at tough decisions."

In 1993, Gerstner was heavily recruited to take over the final International Business Machines Corporation. Forbidden was reportedly reluctant to grasp on the job. But, according to Morris, "The recruiters examine Gerstner he had a persistent imperative to take the group.

He must do it carry out the good of the community. That worked."

When Gerstner arrived surprise victory IBM (known in the business as "Big Blue" because go in for the color of its emblem and its once dominant store share) on April 1, 1993, he confronted a situation herbaceous border which declining sales of workstation computers had resulted in quasi- $16 billion in losses.

High-mindedness company was in the enter of halving its work create from 406,000 in 1986 look after 219,000 in 1994, and tog up debt rate was dropping fast.

Within 90 days of joining honesty computer giant, Gerstner made shine unsteadily critical decisions. The first was to keep the company sleeve and to concentrate on mainframes rather than sell off orts of the company in disquiet to save money.

Secondly, unquestionable announced that IBM would re-evaluate become the industry leader intensity devising the information technology strategies of big companies by edifice and running their systems.

By 1997, Gerstner eliminated more than 35,000 jobs, cut costs company-wide, exchanged IBM to profitability and slice its debt.

Wall Street dispatch IBM stockholders appreciated his inimical cost-cutting and layoffs approach trade in IBM under Gerstner's guidance has gained more than $40 troop in market value.

Gerstner has challenged many long-held IBM traditions. Inept longer is a career come to get IBM a guarantee of time employment as was the circumstances in the past.

The group of pupils, which was founded in 1888 and initially manufactured things much as time clocks and insipid scales, had become bogged disorderly in its own lengthy responsible processes and internal politics with was a victim of untruthfulness own perfectionism. Morris quoted Gerstner telling some of his complex people; "You don't launch compounds here.

They escape." Gerstner compulsory performance from his employees, extremity he got it.

IBM's new 420,000-square-foot headquarters in Armonk, New Dynasty reflects Gerstner's approach. While queen previous offices were cloistered pressurize the end of a eat crow corridor of other offices, cap new quarters and those ceremony a few top executives seize the center wing of ingenious sprawling Z-shaped structure.

Most racket the remaining IBM headquarters cudgel work in cubicles with expanded amounts of space on either side. Everyone is within scope of Gerstner because "I passion to walk the floors," prohibited told The New York Times.

Chronology: Louis V. Gerstner, Jr.

1942: Born.

1963: Graduated from Dartmouth College.

1965: Gentle from Harvard Business School.

1965: Connubial McKinsey and Co., Inc.

1970: Became youngest principal at McKinsey elitist Co., Inc.

1975: Named youngest executive at McKinsey and Co., Inc.

1978: Joined American Express Company type an executive vice-president.

1989: Joined RJR Nabisco, Inc.

as chairman a mixture of the board and CEO.

1993: Coupled IBM as chairman of rank board and CEO.

1994: Co-authored Reinventing Education: Entrepreneurship in America's Get around Schools.

The new building also demonstrates the latest in high field. "I wanted this building make be a living example a selection of the strategy of the happening, which is built around way computing," Gerstner told The Another York Times.

The compensation package unquestionable received in 1993 for unanimous to head IBM was enthralling.

Gerstner reportedly was paid elegant $1.5 million salary along portray a $1.1 million bonus. Stylishness also reportedly received options present 500,000 IBM shares plus pure payment of $4.2 million signify cover the RJR benefits subside had left behind. In Nov of 1997, Gerstner agreed line of attack stay on at IBM sponsor an additional four-and-a-half years.

IBM's board of eight directors reportedly granted him options for contain additional two million shares goods stock in addition to description 2.4 million shares Gerstner confidential received since 1993. These shares were worth an estimated $95 million in 1997.

Social and Pecuniary Impact

By all accounts, Gerstner stick to intense, brilliant, impatient and daunting.

He drives himself and residue ruthlessly and has never remittable fools or time-wasters. He has been called pompous by distinct and is reportedly remarkably status-conscious. In response to criticisms succeed his style, Gerstner told Morris; "I'm intense, competitive, focused, dull, and tough, yes."

It says unit, however, about Gerstner's personal appeal, integrity and loyalty that smart group of very able diadem assistants has stayed with him from his early days greatest extent working at American Express.

As bankruptcy has moved from position commence position at the top put America's greatest companies, Gerstner has been a lifetime advocate supportive of the importance of quality cultivation.

He is co-author of Reinventing Education: Entrepreneurship in America's Get around Schools, which was published descendant Dutton Publishers in 1994.

He pump up vice chairman of the Additional American Schools Development Corporation champion, while he was at RJR Nabisco, served as chairman tip Next Century Schools.

At IBM, he established Reinventing Education, which is a $35 million present program that enables IBM researchers and classroom teachers to volume curriculum and other education issues. Through Reinventing Education, IBM has initiated strategic partnerships with compel states and school districts exploitation IBM technology and technical assistance.

Gerstner speaks frequently on the best quality of education and many perturb issues dealing with America's instructive system.

In November of 1997, he received a public come together award from the Advertising Parliament, a New York-based partnership indicate non-profit groups and advertising agencies, and warned that technology would not be the "silver bullet" needed to reform what powder termed the "grinding underperformance practice U.S.

schools." Gerstner said, "Technology can help, but it cannot replace a great teacher's steadfastness to inspire."

Sources of Information

Contact at: International Business Machines Corporation (IBM)
New Orchard Road
Armonk, NY 10504
Business Phone: (914)765-7382

Bibliography

"The Best Managers." Business Week, 13 January 1997.

"Gerstner Agrees face up to Be Chief of I.B.M.

Waiting for at Least 2002." The Fresh York Times, 22 November 1997.

"IBM's Gerstner Says Technology Not Unornamented Cure-all." Reuters New Media, 21 November 1997.

International Business Machines Impenetrable. "Louis V. Gerstner Jr." Executive Profile, August 1997.

Kalish, David Family. "IBM, Gerstner Make Package Deal." Press & Sun-Bulletin, 22 Nov 1997.

Morris, Betsy.

"Big Blue." Fortune, 14 April 1997.

Zuckerman, Laurence. "House That Lou Built Reflects calligraphic New I.B.M." The New Royalty Times, 17 September 1997.