Ginni the Eagle: IBM’s Corporate “Transformation”

IBMI promised a follow-up to my post from last week about IBM’s massive layoffs and here it is. My goal is first to give a few more details of the layoff primarily gleaned from many copies of their separation documents sent to me by laid-off IBMers, but mainly I’m here to explain the literal impossibility of Big Blue’s self-described “transformation” that’s currently in process. My point is not that transformations can’t happen, but that IBM didn’t transform the parts it should and now it’s probably too late.

First let’s take a look at the separation docs. Whether you give a damn about IBM or not, if you work for […]

Soylent Green — Now Made with More Women!

Soylent_greenSoylent Green is the punchline of a bad joke told to me at the breakfast table by Channing, my 13 year-old son, but in a way it is fitting for this column about women executives in danger of being chewed-up by their corporate machines. And kudos to you if you caught the reference to Edward G. Robinson’s final film — about an over-populated world where people are recycled into cookies.

First up is Yahoo CEO Marissa Mayer, whom I’m told is rapidly losing the support of her hand-picked board. Mayer, who is expecting twins, will probably not be returning from her upcoming maternity leave and Wall Street has begun speculating about possible successors. […]

Autodesk’s John Walker explained HP and IBM in 1991

autodeskcoverOne reader of this column in particular has been urging me to abandon for a moment my obsession with IBM and look, instead, at his employer — Hewlett Packard. HP, he tells me, suffers from all the same problems as IBM while lacking IBM’s depth and resources. And he’s correct: HP is a shadow of its former self and probably doomed if it continues to follow its current course. I’ve explained some of this before in an earlier column, and another, and another you might want to re-read. More of HP’s problems are covered in a very fine presentation you can read here. Were […]

IBM’s reorg-from-Hell launches next week

Ginni_RomettyIBM’s big layoff-cum-reorganization called Project Chrome kicks-off next week when 26 percent of IBM employees will get calls from their managers followed by thick envelopes on their doorsteps.  By the end of February all 26 percent will be gone. I’m told this has been in the planning for months and I first heard about it back in November. This biggest reorganization in IBM history is going to be a nightmare for everyone and at first I expected it to be a failure for IBM management, too. But then I thought further and I think I’ve figured it out…

I don’t think IBM management actually cares. More on this later.

IBM […]

How to fix IBM

IBMGiven IBM’s earnings miss last week and the impact it had on company shares I thought rather than just criticizing the company it might make better sense to consolidate my ideas for how to fix IBM. Here they are.

Early in his tenure as CEO, Sam Palmisano made changes that created IBM’s problems today. IBM customers are buying fewer products and services. Revenue has dropped each quarter for the past ten. Sam’s changes alienated IBM customers, many of whom are ending what has been in many cases a multi-decade relationship. No amount of earnings promises, no amount of financial engineering, will fix this problem.

IBM forgot the most important part of running a business. While shareholder value […]