Culture and Leadership at IBM

To explain the role that corporate culture has played in the performance of IBM, this case traces the culture of IBM under four of its influential leaders: Thomas Watson, Sr., Thomas Watson , Jr., John Akers and Lou Gerstner. Particular attention is paid to Gerstner's impact revitalizing the culture and bringing the company back, in some sense, to its cultural roots. Analysts and commentators agreed that Lou Gerstner had created a revolution within IBM, but Gerstner himself claimed: “On one level so much about IBM has changed. On another level very little is different.”

This case helps students understand two things. First, the importance of corporate culture: how it influences organizational behavior and how it impacts performance for better and for worse. Second, how exceptional leaders influence and vitalize culture, shaping its influence for the better.