Parachuting into a $65 billion company that was hemorrhaging cash and trying to turn it around is a daunting enough task. Trying to do it without a good CFO and HR director is impossible.

I’ve had a lot of experience turning around troubled companies, and one of the first things I learned was that whatever hard or painful things you have to do, do them quickly and make sure everyone knows what you are doing and why.

[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.

Logic and my own experience dictated a straightforward set of priorities: Invest in new sources of growth, build a strong cash position, and do a more rigorous assessment of our competitive position.

Some executives were beginning to exhibit the sort of personal leadership and commitment to change that I sought.

I needed, though, to provide support and encouragement for these risk takers. They were still surrounded by a lot of Bolsheviks who longed for the old system.