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Ibm's Culture Transformation : Ibm

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IBM’s Culture Transformation
There is a multitude of reasons as to why an organization may change their culture. Some catalysts to cultural change could be such things as changes in the economy, external events, internal shortcomings, restructuring of leadership, or growth of technological capabilities. Since IBM was founded in 1911, it has undergone a multitude of cultural changes driven by each one of these factors. The 1990’s included a large cultural shift for this organization driven by a new CEO and new technological capabilities.
Culture Prior to the Change Prior to their cultural change that took place in the early 1990’s, many would have said that IBM was on a fatal downhill slide. At this point they were beginning to become obsolete. IBM at one point was among the leaders within the world for hardware/software development and information technology services, but all divisions within the organization were run independently from one another. They were not a unified enterprise. To solidify this even further, “rather than working together as a team, divisions competed against each other both internally and in the field” (DiCarlo, L., 2002).
Steps to Change On April 1, 1993 Louis V. Gerstner took over as IBM’s chairman and CEO. Gerstner was able to recognize the flaws in IBM’s model to have the company being run as several independent parts from one another. From the beginning he was able to recognize that “IBM was greater than the sum of its parts … and the entire

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