Lou Gerstner, Former IBM Chief, Has Died at 83

Lou Gerstner, the previous CEO of IBM who led the corporate by probably the most consequential turnarounds in company historical past, died on Saturday on the age of 83, the corporate stated.

Gerstner ran IBM from 1993 to 2002, arriving at a time when the corporate was below extreme strain, and its future was unsure. IBM was dropping cash, the tech trade was shifting quickly, and there was widespread expectation that the corporate can be damaged up.

As an alternative, Gerstner selected to maintain IBM collectively. He pushed the corporate to prepare round buyer wants slightly than inside divisions, serving to reposition IBM as a supplier of built-in know-how and companies for big enterprises. That call grew to become central to IBM’s restoration and renewed relevance.

Gerstner additionally drove cultural change inside the corporate. He emphasised direct decision-making, accountability, and execution, whereas insisting that innovation mattered provided that it translated into actual worth for shoppers. The strategy marked a pointy break from IBM’s inward-looking habits that had taken maintain earlier than his arrival, IBM stated in its announcement of Gerstner’s dying.

His tenure included painful restructuring. IBM deserted long-standing traditions, together with its decades-long “cradle to grave” no-layoff coverage, because it sought to stabilize its funds and compete extra aggressively. Many credit score these strikes, together with Gerstner’s strategic focus, with saving the corporate from collapse.

Earlier than becoming a member of IBM, Gerstner constructed a high-profile profession in company America. He was a companion at McKinsey & Firm, later served as president of American Categorical, and was CEO of RJR Nabisco. After leaving IBM, he chaired the Carlyle Group and targeted on philanthropy, significantly in schooling and biomedical analysis.

A local of Lengthy Island, New York, Gerstner earned a level from Dartmouth School and an MBA from Harvard. IBM stated it plans to carry a celebration of his legacy within the new yr.