Publications
Publications
- May 2023
- HBS Case Collection
IBM’s Ginni Rometty: Leading with Good Power
By: Hubert Joly, Leonard A. Schlesinger and Stacy Straaberg
Abstract
In March 2023, Virginia (Ginni) Rometty published Good Power: Leading Positive Change in our Lives, Work, and World, which covered her personal history and career at International Business Machines (IBM). Rometty was IBM’s ninth and first woman CEO from 2012–2020. Her tenure followed John Akers, Louis Gerstner, Jr., and Samuel Palmisano, CEOs who helmed IBM through the PC revolution, IBM’s brush with insolvency, the company’s rebound, and its early attempts at commercializing AI technology as well as its late entry into cloud computing. Prior to joining IBM, Rometty’s upbringing taught her the value of hard work, education, and serving others. Once at IBM, Rometty advanced through the ranks, notably negotiating the acquisition of PricewaterhouseCooper’s consulting unit and integrating its people into IBM. As CEO, Rometty developed a leadership philosophy of good power, based on wielding authority for the benefit of others. She also defined IBM’s purpose as Being essential to clients and society. Strategically, Rometty rebalanced IBM’s product portfolio to align with changes in the tech ecosystem such as the rise of cloud computing and AI. Rometty also committed to hiring and upskilling workers to achieve IBM’s goals including using a SkillsFirst approach that prioritized job proficiencies over credentials. Outside of IBM, Rometty signaled her commitment to the entire ecosystem of stakeholders by signing the Business Roundtable’s 2019 revision of the Statement on the Purpose of a Corporation, and she co-founded OneTen, which sought to employ and promote 1 million Black Americans without four-year degrees into living-wage jobs. From 2012–2020, IBM’s revenue declined every year but one and share price trailed other large tech firms. However, in 2022, IBM’s share price bested other large tech companies. What factors contributed to IBM’s underperformance during Rometty’s tenure and the company’s improved performance in 2022—predecessor impact, good power tactics, market factors, or her initiatives?
Keywords
Transformation; Acquisition; Trends; Gender; Diversity; Education; Training; Values and Beliefs; Profit; Revenue; Leadership Style; Leading Change; Business or Company Management; Negotiation; Corporate Social Responsibility and Impact; Mission and Purpose; Organizational Change and Adaptation; Organizational Culture; Family and Family Relationships; Business and Community Relations; Business and Government Relations; Business and Shareholder Relations; Business and Stakeholder Relations; Personal Characteristics; Perspective; Social Issues; Adaptation; Business Strategy; Commercialization; Competition; Corporate Strategy; Information Infrastructure; Information Technology; Health Industry; Information Technology Industry; Manufacturing Industry; Service Industry; Technology Industry; New York (city, NY); United States
Citation
Joly, Hubert, Leonard A. Schlesinger, and Stacy Straaberg. "IBM’s Ginni Rometty: Leading with Good Power." Harvard Business School Case 323-114, May 2023.