CONTRARIAN THINKING. If a problem’s been around for a while, it probably can’t be cracked with conventional thinking. Seek out the positive deviants, like Nucor and Haier. Borrow ideas from other domains, like biology, startups, and crowdsourcing. Rigorously challenge your deepest assumptions. Do all this, and you’ll increase the odds of finding a novel solution.

COMPASSION. People aren’t merely skeptical; they’re cynical—and with good reason. Everyone’s fighting their own corner and looking out for their own interests. When asked to help, most people will ask, “What’s in it for me?” To jump this hurdle, you have to put others first. When colleagues see you working to understand their needs, when you help them craft their experiments, and ensure they get the credit, they’ll start to trust you. When your compassion shines through, people will take risks with you and pick you up when you fall.

CONNECTIONS. Building a community is the most important thing an activist can do. This is the ultimate multiplier of individual effort. Employees eager to try something new often make the mistake of asking their boss for permission. Usually they get shot down, or win only grudging support. This isn’t entirely the manager’s fault. A priori, it’s hard to know whether an underdeveloped idea is brilliant or batty. Since great ideas are rare, the default setting for most managers is to say no. So don’t go up, go out. Talk to your peers. Find a few colleagues who will help you build and run an experiment. It’s easy for a manager to say no to a lone supplicant, but much harder to turn aside a small band of partisans who are passionate about making things better and have already made a start.

[The key strategic decisions] were:

• Keep the company together and not spin off the pieces.

• Reinvest in the mainframe.

• Remain in the core semiconductor technology business.

• Protect the fundamental R&D budget.

• Drive all we did from the customer back and turn IBM into a market-driven rather than an internally focused, process-driven enterprise.

I think it would have been absolutely naïve—as well as dangerous—if I had come into a company as complex as IBM with a plan to import a band of outsiders somehow magically to run the place better than the people who were there in the first place. I’ve entered other companies from the outside, and based on my experience, you might be able to pull that off at a small company in a relatively simple industry and under optimal conditions.

IBM LEADERSHIP COMPETENCIES

Focus to Win

• Customer Insight

• Breakthrough Thinking

• Drive to Achieve

Mobilize to Execute

• Team Leadership

• Straight Talk

• Teamwork

• Decisiveness

Sustain Momentum

• Building Organizational Capacity

• Coaching

• Personal Dedication

The Core

• Passion for the Business

IBM over the past ten years has begun to develop the ability to handle a very high level of internal complexity and even apparent contradiction. Rather than hiding from conflict or suppressing it, we’re learning how to manage it, even benefit from it. This equilibrium can be achieved only when an enterprise has a very sure sense of self.