This probably goes far back in time, but who do you consider the last good leader at IBM? This is probably somewhat subjective since there are multiple elements and differing opinions on what makes a good leader.
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"Who Was the Last Good Leader" is a loaded question. Every leader is a product of the time when they led the company. There were times when IBM was top of the technology heap, and of course there are the down times.
In my time with IBM, I would say that Gerstner was by far "the best" leader. This is a very provocative choice, because a lot of people were canned in his time. However, you have to consider the times. IBM was severely bloated before Gerstner...it had hundreds of raised floor data centers, and legions of non-productive "administrators". Those administrators didn't make anything, they didn't sell anything, and they didn't service customers. They worked in IBM's many back offices and took regular paychecks.
Gerstner started the process of really cleaning up all that excess. A lot of people hate him for it, because they lost their jobs under him. But IBM was almost out of cash, and mainframe sales weren't bringing in enough money. Gerstner canned a lot of people, consolidated a lot of data centers, and started the process of monetizing IBM's facilities and people. He brought IBM into the world of IT services for hire...managed IT infrastructure, consulting and development services.
So...your average IT worker will say that Gerstner su-ked. But IT executives who know IBM will have a lot to say about Gerstner, both good and bad. He was definitely a leader...more than anybody who followed him.
I worked at IBM from the time of John Opel (1981-85) through current CEO A.Krishna and all others in between. I think Sam Palmisano was the "best" of this group, by virtue of his management style (actually did respect employees back then) and business results. An honest opinion from a long time former employee who actually met the man on several occasions.
What they had in common was they lived before the financialization of the economy where "shareholder value" was twisted to mean that the current quarter financial results were ALL that mattered to a company.
Read the lists from the posts below. What do all of the business leaders have in common? I would say it’s “respect for the individual”.
As folks said if you take care of your employees, they will take care of your customers.
It’s just that easy.
Where did IBM stray from that path? I would say under Gerstner especially after the first three years under his leadership
Ken Olson, founder of DEC, was light years ahead of Arvind in engineering talent and people skills.
IBM founder and CEO for decades TJ Watson Sr and then his son JR for 57 years. They DEEPLY LOVED IBM employees. During tough times they would have engineers NOT BE LAID off but build new plants, sweep floors, paint bldgs etc. Anything but layoffs as they knew first hand the devastation to the mind and health and families lay offs did.
What I learned is that great leaders balance the needs of all their stakeholders: shareholders, employees (yes employees), customers, and sustainability needs. If the criterion is “CEOs who genuinely treated employees as valuable human beings—not merely as labor”, I’d put these near the top:
Ken Olsen — DEC
A remarkable engineering culture. Olsen gave technical people enormous autonomy, trusted their judgment, and built DEC around the idea that talented employees should have meaningful responsibility.
Bill Hewlett & David Packard — HP
The classic example of the “HP Way.” They emphasized trust, respect for individuals, flexible management, and giving engineers room to innovate.
Patagonia’s Yvon Chouinard
Built a company around employees, purpose, and quality of life rather than maximizing short-term shareholder returns. His philosophy was unusually explicit about putting people and the planet ahead of conventional corporate thinking.
Costco’s Jim Sinegal
One of the strongest examples of an executive deliberately paying and treating employees better than the industry norm. He believed employee loyalty translated into better customer service and a stronger business.
Herb Kelleher — Southwest Airlines
Famous for putting employees first. His philosophy was essentially: take care of employees, and they'll take care of customers.
Tony Hsieh — Zappos
Made company culture a central management discipline. He viewed employee happiness and a strong culture as strategic assets, not perks.
Mary Barra — General Motors
Particularly notable for emphasizing accountability, safety, inclusion, and employee voice while running an enormous industrial organization.
Satya Nadella — Microsoft
His transformation of Microsoft was strongly associated with replacing an internally competitive culture with one emphasizing empathy, learning, collaboration, and a growth mindset.
Andy Grove — Intel
More demanding than the others, but highly respectful of technical talent. Grove expected a lot from people while giving them substantial responsibility and emphasizing intellectual honesty.
Richard Branson — Virgin
Consistently promoted the idea that leaders should take care of employees first, believing engaged employees create better customer experiences.
T. J. Watson