HomeResearch & Knowledgeback to HomeOrganizational Behaviorback to Research & KnowledgeIBM: The value of values (A)back to Organizational Behavior

Case Study

IBM: The value of values (A)

By John R. Weeks and Jean-Louis Barsoux

9 pages

May 2010

Order this case study

Reference: IMD-4-0320

This case is about rebuilding a high performance culture at IBM. The case starts in 2002, shortly after Sam Palmisano succeeded Louis V. Gerstner as Chairman and CEO of IBM. By the time Palmisano took over, the company had gone through a painful turnaround and was back on a healthy footing. The challenge for Palmisano, an IBM lifer, was how to persuade fellow IBMers to keep on changing in the absence of a “burning platform”. After ten years of sacrifice and effort, there was a real danger of slipping back into complacency. Palmisano took a bet on an online “jam” – a massive, 72-hour chat room where employees worldwide could voice ideas about the values of the company. The exercise served to showcase IBM’s technology and its willingness to tap into the ideas of its employees. It helped breathe new life into IBM’s values as well as reconnecting IBM with its heritage. Most importantly, it provided Palmisano with a collective mandate for ongoing change that, in 2010, pushed IBM’s results to new record highs.

Learning Objective

This case explores what culture is and how it can be changed, focusing on the particular challenge of building on success. For instructions looking for a broader discussion of IBM’s major leadership and change challenges since 1993, see case IMD-4-0318.

Keywords

Organizational Culture, High Performance, Sustaining Change, Participation, Innovation, Online Forum, Strategy, Vision, Alignment, Listening to Employees, Customer Orientation, Organizational Behavior, Culture Change

Settings

World/global
1993-2010

Type

Published Sources

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

IBM: The value of values (A)
IBM: The value of values (B)
IBM: The value of values (C)

This case study is part of a series

IBM: The value of values (A)
IBM: The value of values (B)
IBM: The value of values (C)

Keep reading

Book Chapter

Why now?

In the past, many business leaders could operate much like the generic merchants in Adam Smith’s Wealth of Nations. They could pursue their own personal and corporate ends, while resting assured that an “invisible hand” would promote the pub...

Organizational Change Sustainability Organizational Behavior

By Julia Katharina Binder and Knut Bjarne Haanaes

in Binder, Julia Katharina (Ed.); Haanaes, Knut Bjarne (Ed.) / Leading the sustainable business transformation: A playbook from IMD, pp. 19-32 / Hoboken: Wiley, 2025

Article

Is your board a team? Three keys to effective governance

Today’s chaotic and turbulent competitive context means the board’s role is more important than ever. Beyond their traditional oversight role, boards today are critical in shaping strategy, managing risks, maintaining accountability, and driving i...

Board Team Dynamics Corporate Governance Organizational Behavior

By Didier Cossin and Yukie Saito

in Irish Tech News

17 December 2024

Book

Hostage at the table: How leaders can overcome conflict, influence others, and raise performance (2nd edition)

In the newly revised second edition of Hostage at the Table: How Leaders Can Overcome Conflict, Influence Others and Raise Performance, clinical psychologist, distinguished leadership professor, and veteran hostage negotiator George Kohlrieser com...

General Management Negotiation Leadership Organizational Behavior

By George Kohlrieser and Andrew Kohlrieser

Article

Do you know the two types of power?

Many people are uncomfortable with the idea of power, but it’s important to realize that it can be a force for good. This begins by understanding the different kinds of power.

Organizational Behavior

By Jennifer Jordan

in I by IMD Brain Circuits

13 December 2024

Article

Lessons from leadership by an Olympic Finalist

When I was eight years old, I watched the Mexico Olympics on television and thought ‘I want to do that.’ It took eight years and an incredible amount of work, including extraordinary highs and lows, to achieve that goal.

Leadership Disruption Organizational Behavior

By Susan Goldsworthy

in Startups Magazine

11 December 2024

Case Study

Employees in Foxconn’s business empire

Foxconn, a Fortune Global 500 giant and the world's largest electronics manufacturer, made headlines in 2023 by announcing a shift to a five-day, eight-hour workweek in its Chinese factories - a significant departure from its long history of exten...

Leadership Organizational Behavior Talent Management

By Zhike Lei and Yunfei Feng

Article

Se il manager sceglie di centralizzare la catena decisionale

September 2024 marks a turning point in corporate management and a drama in the management world, which began with an essay by Paul Graham, patron of Silicon Valley's leading startup incubator, Y Combinator.Graham coins a new paradigm, the founder...

Family Business Team Dynamics Organizational Behavior Leadership

By Alfredo De Massis and Paolo Lacchè

in Il Sole 24 ore

21 November 2024

Article

How emotional intelligence is the best defence against GenAI threats

Emotional intelligence is essential for recognizing and managing artificial intelligence (AI) enabled manipulation, especially in scams. Organizations should train employees to spot emotional triggers and practice reflection to mitigate generative...

Artificial Intelligence Disruption Organizational Behavior

By Öykü Işık

in WEF Forum

15 November 2024

Case Study

Prudence in a maze of metaphors

“Prudence in a maze of metaphors” follows a fictional day in the life of a woman to explore a variety of challenges individuals commonly face in their professional environments. Prudence’s story uses metaphors such as Sticky Floor, Glass Ceiling, ...

Diversity and Equity and Inclusion Leadership Organizational Behavior Organizational Culture

By Vanina Farber and Heather Cairns-Lee

Article

Why your past is key to understanding the leader you are today

Shlomo Ben-Hur and Nik Kinley reveal how our default instincts, shaped by childhood experiences, can help us to understand our leadership styles.

Organizational Behavior Leadership Decision Making

By Shlomo Ben-Hur and Nikolas Kinley

in I by IMD

27 September 2024

Why now?

By Julia Katharina Binder and Knut Bjarne Haanaes
in Binder, Julia Katharina (Ed.); Haanaes, Knut Bjarne (Ed.) / Leading the sustainable business transformation: A playbook from IMD, pp. 19-32 / Hoboken: Wiley, 2025

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Organizational Change

Sustainability

Organizational Behavior

Browse all topics

Is your board a team? Three keys to effective governance

By Didier Cossin and Yukie Saito
in Irish Tech News 17 December 2024

Summary

Contact