In 1993, Lou Gerstner became CEO of a failing IBM, which faced massive losses and calls to be broken up. He rejected this, instead unifying the company to provide integrated solutions.
When Lou Gerstner took charge of IBM in 1993, many believed the legendary company was finished. The tech world was shifting fast, losses were mounting, and there was open debate about breaking IBM into pieces. Instead, Gerstner chose a harder path, to rebuild, not retreat.
His passing has brought back memories of how one man’s calm clarity saved a giant.
Walking Into a Company on the Brink
In the early 1990s, IBM was struggling to keep up with a rapidly changing industry. Competitors were moving faster, customers were looking elsewhere, and morale inside the company was low.
Gerstner didn’t arrive with flashy promises. He arrived with one question: What do our customers really need from us?
“Let’s Just Talk”: The Moment That Changed Everything
Early in his tenure, Gerstner famously stopped a long internal presentation and said, “Let’s just talk.”
It was a simple line, but it shattered years of rigid corporate habits. From that day, meetings were shorter, conversations more honest, and customer impact mattered more than hierarchy.
Bringing Customers Back to the Centre
Gerstner believed IBM had become too focused on itself, on its processes, debates and internal politics.
He turned the spotlight outward. Innovation was no longer about impressive ideas alone; it had to solve real problems. Every product, every service had to earn its place in a customer’s world.
The Decision That Saved IBM
At a time when experts wanted IBM broken apart, Gerstner refused.
He saw that clients didn’t want scattered technologies, they wanted solutions that worked together. Keeping IBM whole was risky, but it gave the company its soul back and rebuilt its relevance with global enterprises.
Changing Behaviour, Not Just Balance Sheets
Gerstner understood that lasting change happens quietly, in how people behave when no one is watching.
He renewed IBM’s values, encouraging employees to challenge themselves, confront reality and put honesty before comfort. The culture shifted from cautious to courageous.
A Leader Who Never Truly Left
Even after stepping down in 2002, Gerstner remained a quiet presence in IBM’s life. Current CEO Arvind Krishna recalled how he would offer advice gently, always ending with, “I’ve been gone a long time — I’m here if you need me.”