I look for people who work to solve problems and help colleagues. I sack politicians… Solve problems laterally; don’t keep bringing them up the line.

It became clear to me at that point that the company, either consciously or unconsciously, was milking the S/390 and that the business was on a path to die. I told the team that, effective immediately, the milking strategy was over and instructed them to get back to me with an aggressive price reduction plan that we could announce two weeks later at a major customer conference.

I have worked in services companies (McKinsey and American Express) and product companies (RJR Nabisco and IBM). I will state unequivocally that services businesses are much more difficult to manage.

Watson’s eminently sensible direction was: Respect your customer, and dress accordingly.

I’m a strong believer in the power of language. The way an organization speaks to its various audiences says a lot about how it sees itself. Everywhere I’ve worked I’ve devoted a good deal of personal attention to the organization’s “voice”—to the conversations it maintains with all of its important constituencies, both inside and outside the company. And I have chosen my own words—whether in written, electronic, or face-to-face communications—very carefully.

The truth is, you can learn a great deal about a place simply by listening to how it talks.