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on July 25, 2014
An excellent lamentation and history of IBM's early culture; this book is very readable and relatable. It seems that the book's target is current and former IBM employees, perhaps the former to learn the history, the latter for the catharsis. As a business text, it misses the mark a bit; I'd like to see a follow on book that closes the gaps. If someone who has never worked for IBM is looking for a text on the impact of organizational culture on business outcomes, this is a good background read. There is more research to do to make this a general business book and I'd love to read a follow-on that considers IBM's history to inform a path for modern business leaders to consider. More on that below.

Many years ago, IBM was known for its extraordinary corporate culture: good performers could count on having their jobs forever, the firm showed loyalty to its employees in acts both small and large, and employees were proud to refer to themselves as "IBMers." Employees returned this gift of loyalty with un-coerced dedication.

Mr. Greulich paints the original "basic beliefs" of the firm, its moral and ethical compass, as its "constitution" -- the framework for the firm's behavior toward its employees, and for its employees towards each other.

As Mr. Greulich points out, things have changed so much that you'd be hard pressed to find an recent IBM hire who can relate to those times past. Today, instead of a relationship based culture, there's more a transactional culture: expect no loyalty from the firm, work for the paycheck, assume you'll leave eventually, at your choice or IBM's. Instead of trusting in management, one is by default skeptical of them, partly because of the annual lay offs (euphemistically called "resource actions"). In today's world, the constitution of basic beliefs, and the way that IBM implemented them, seem hopelessly old fashioned.

Great, I enjoyed the read. And then I asked myself, "so what?" Where does one go with this background information? I would like to imagine that there's more value in Mr. Greulich's work than just the catharsis. So let me imagine Mr. Greulich is writing a follow-on book, one suitable for a university course on business organizational models, or ethics and responsibility toward employees. Or, a book for a business leader who wants to imagine a considerate, ethical and effective cultural framework for her company and is looking for ideas. Yes, I understand, Mr. Greulich might not have been aiming for that broad business readership demographic for his book. He might have written it primarily for IBM employees past. But, what if he were to extend his analysis to consider the broader business context? He might consider writing about the extensibility of his experience:

(1) Mr. Greulich portrays the basic beliefs -oriented culture as wonderful -- and surely they were for most employees. But were they an effective business approach in terms of any meaningful metrics beyond employee attitude and loyalty? For example: if the culture was so great, why were there so many layers of management, and so much bureaucracy, leading to such a high general and administrative expense?

How is it that the firm made so many errors that it found itself at the brink of bankruptcy (just prior to Lou Gerstner's turn as CEO in 1993)? Why is it that one of the first action items that Mr. Gerstner identified for IBM's recovery was to refocus the entire firm on client success? This even though the compass had explicitly identified service to the customer as a basic belief.

From an outside observer's point of view, those basic beliefs didn't do much to prevent disaster at IBM in the early 1990s. Given the customer focus issue, one might imagine that -- at least one of --the basic beliefs were completely ineffective. How did "respect for the individual" align with the legions of checkers upon checkers in the bureaucracy? It doesn't seem difficult to imagine why someone like Mr. Gerstner would think it is time to eliminate this ineffective constitution.

(2) Mr. Greulich suggests that Mr. Gerstner might have found ways to incorporate the basic beliefs into his restructure of IBM from 1993 to 2002. But given their abject failure to positively influence the firm's financials, what would have been Mr. Gerstner's motivation? To spend considerable funds "just" to assure workforce loyalty and delight may have seemed irrelevant to him. He was brought in explicitly to fix the business, so the key question is, how does a "historical IBM basic beliefs approach to the workforce" facilitate the combination of margin improvement, revenue generation, and new product investment required to succeed? This would be a very interesting research topic.

(3) In the post-Gerstner leadership era at IBM, Mr. Palmisano (and then Ms. Rometty) took over as CEO. Unlike Mr. Gerstner, they were long time IBM employees; they could remember the basic beliefs that Mr. Greulich describes as IBM's constitution. So: why didn't they find ways to bring those beliefs back into play, to eliminate annual layoffs (which anyone, even without management training or an MBA could figure out would be extraordinarily demoralizing and disruptive in the long term), and repair the old -style pension system?

Mr. Palmisano choose to restructure those basic beliefs using input from his "values jam" to rebuild them. Presumably he thought that approach would resonate with his employee base. The net was: dedication to every client's success, innovation that matters, and trust and personal responsibility in all relationships. Notably though, Mr. Palmisano's list was all about how the employees should act, and not about how the firm should behave towards those employees. Is this the key turning point in how IBM (and perhaps most US firms) think about their workforce?

I wonder if Mr. Palmisano's updated values list would have justified breaking through race, color and creed barriers back in 1953 as IBM did then, 11 years prior to the Civil Rights Act. Still the question: why not return to "old IBM beliefs?" Is it because he didn't see them working effectively at the goals that matter to him (revenue and earnings growth)? Why might this be the case? What adaptations might enable a highly loyal employee base and not unreasonably add to costs? What is acceptable EPS growth (compared to maximum EPS growth)? The key difference between these questions and the ones in (2) above are that here the lead executives were quite familiar with the old culture, as opposed to Mr. Gerstner who had no prior IBM employment experience.

(4) As much as IBM had been an anomaly in its corporate culture prior to the early 1990s, in the 21st century today's IBM appears to act with the norm. Most (if not all) US firms eliminated their defined benefit pension plans over the past 20 years. Recent college graduates are told they should expect to change jobs frequently and not stick with the same firm for decades (as their parents might have). Is this propaganda to reflect the discontinuation of benefit models that would encourage a long-term workforce, or is it a reflection of the changing values of American companies (i.e., towards a contractor -like, transactional and short term relationship with employees)? Is this portable employment model better for employees or worse?

Are there US -based firms today that reflect the "old IBM culture" - and if so, how are they doing on any metrics? Does Google fit the model? How about Costco? If so, is their retention rate a consequence, and a meaningful benefit? How about firms in the rest of the world?

In summary, Mr. Greulich's book is very well written and one I greatly enjoyed. The target audience appears to be long-term or former IBM employees who can find catharsis in the read. I was, however, hoping for a text that I could recommend to others, say as a guide to how to organize a 21st century firm, or as an analysis of the tradeoffs between employee relationship and business results.
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on July 30, 2014
Sad to think that IBM had to drop its most cherished social values in order (it must have concluded) to 'compete'. Even more sad to think that this is what U.S. capitalism has encouraged. I can see from Mr. Greulich's standpoint how frustrating this must be for IBM employees who have shared his experience. On the other hand, there must be another side to this story other than these presented by annoyed IBM (ex-)employees. I rather doubt that the IBM Board sat down one day and said "From now on, let's Disrespect the Individual." A more balanced presentation would perhaps give more insight to why U.S. business in general has found it necessary to degrade itself to this low level of social conscience. My question would be: Could IBM have maintained its old Watson principles (not always as strictly observed as Mr. Greulich might like to believe) and still be competitive in 2010?
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on July 20, 2014
As a former IBMer, (1957-1982), I can atttest to the validity of Peter Greulich's classic, "A View From Beneath The Dancing Elephant". It is the closest thing to being there, which of course I was for 23 years before Pete joined IBM in 1980. He captures the mystique created by Tom Watson Sr. that made IBM special. He explains the IBM culture better than most of us could who lived it. I know from personal experience how deeply the IBM Basic Beliefs pervaded the lives of every IBM'er from top to bottom during my early years. It is certainly reflected in this book

Later on, Tom Watson Jr. implemented "Respect", "Service", and "Excellence" as the foundation upon which IBM would move forward. I can remember how strong my sense of loyalty was to all that IBM stood for. Those were exciting times, and I was right there as part of the best sales force in the world. Pete captures the aura that surrounded Tom Watson Jr. all those years until Vince Learson succeeded him in 1971. Thomas Watson Jr. was the epitome of a Corporate Leader in every sense of the term.

Although I experienced much of the first transition from the "Watson"(Tom Sr & Jr) to "Non Watson"(Learson, Cary, Opel), I rarely knew what was happening topside. I just knew it was different from the IBM I joined in 1957. Pete's revelations about the "corporate picture" during this period was a remarkable eye-opener for me. Truthfully I was so busy trying to assimiilate seven reorganizations and the loss of my Division (OPD) I had no idea what was happening in Armonk HQ. And I would also leave IBM several months after John Opel took over. However, now I have all the information from Pete's book, I believe my career change was timely and fortuitous.

For the next ten years, I concentrated on my new job and related to what was happening to IBM as a stockholder. My only reliable source of information was my son Steve Curtis, who had joined IBM. By 1993 when Louis V. Gerstner took over, my contacts with my former IBM colleagues had dwindled, and I was only hopeful my IBM stock would recover. This was one of the most informative sections of Pete's book. It was fascinating remembering what I had heard and what I read in this book. I want to
personally thank Pete for the remainder of "A VIEW FROM BENEATH THE DANCING ELEPHANT" In my opinion this book will not
only will appeal to the thousands of IBMers employed or otherwise, but will become required reading for all those who seek to
understand Corporate Business. It is also essential for current IBM management to read this book, since the most powerful resource available to make a change is right there looking for a real IBM Leader....460,000+ Employees
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on June 4, 2014
Pete has done an outstanding job through the use of analogies', personal stories, and historical information; painting a very graphic picture of how IBM grew to be the greatest corporation in the world and then fell to its current spot as an also ran in the US. He makes it easy to understand what went on over the 100 years of life. Under 80 years with the Watsons, IBM became a close knit family of dedicated employees, which was the companies greatest asset, and during the last 20 years, that asset was pushed to an accountants spreadsheet for expense pruning. Reading this book, triggered many memories of my 45 years with IBM, as I was able to directly relate to the actions and events that Pete described. He has done a great job of researching information and facts about the company, and Pete's style of writing makes this an easy, entertaining, and educational experience. I highly recommend this book.
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on July 8, 2014
I concur with the statements above. The downside of reading this book is that it brought so many sad memories of how nice things were when I joined IBM so very long ago.

I am slightly amused by the fact that the people commenting on this book probably have more than 200 years of IBM experience combined.

I know for a fact that I too really miss "Respect for the Individual."
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on November 10, 2014
Overall I thought the author fairly represented the evolving situation at IBM. As a former IBMer, I would suggest there are other critical areas where IBM could not or did not take proactive action to dramatically improve their businesses. For example, the research paper on SQL was written by IBMers but who actually capitalized on it? Larry Ellison and Oracle by building a working prototype of SQL and porting it to many platforms, the rest is history. In the 1970s, IBM had leading edge application systems called Property and Liability Information System (PALIS) and Advanced Life Information System (ALIS) that could have set the pace for application solutions for customers. Because of strategy changes and mismanagement, these products were withdrawn and now we have many other companies filling this space like SAP, Oracle..etc. In the 1970s, IBM had a working system that essentially provided "cloud type" services for customers with IBM running the supporting computer systems and customers executing their business over telecommunications lines (no internet then). In this case IBM was forced to divest this business from IBM by the U.S. government for antitrust reasons! Bureaucracy was a continuing problem, decisions taking way too long especially when speed was of the essence. Organizationally, the company was way too difficult to manage and had overlapping and competing products and organizations causing redundancies and slower execution. IBM was a great company to work for but difficult to execute within as compared to other fleet footed competitors. It had all the opportunity to win in most if not all markets but missed badly due to execution, in my opinion.
Another few points on the culture. IBM was very buttoned up when I arrived in 1966 but overall I liked it as the culture was defined and adhered to. The 'always wear white shirts' was somewhat extreme but bearable. Reading and completing the "Code of Conduct" each year (and if you were late, they would find you) was a good way to push out what you wanted to have happen as a company (and I had seen at least one person fired for violating the code). The sales organization in the early days was amazing, executive contacts at most customers, integrated with the customer on their facilities where it made sense etc. It really felt that you had a mission and that was to help make that customer successful, this lesson was never forgotten by me. I did like the attitude surveys and the 'opportunity' for a manager to cover his/her results with their subordinates, it was eye opening no matter what position you were in. The 'don't talk about your salary with anyone' was very punitive and certainly not the norm today, at least outside of IBM. I personally learned a tremendous amount of valuable skills and knowledge while working for IBM and helped launch my career both inside and outside IBM. Most of my skills and knowledge were learned at IBM and expanded after leaving in 1983.
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on December 4, 2014
As an IBM retiree and current shareholder, I am always intrigued by articles and books about the company. Often, these can be very one-sided views, tied to the stock performance, or by a bitter employee who may feel betrayed. In contrast, Pete's done a great job reminding the reader what IBM was like not so long ago, and when he and I worked together at Big Blue. Unlike many IBM "bashers", Peter has provided detailed research to back up his opinion. He offers a unique perspective both to former IBMers and those who never carried an IBM badge.

Thanks Pete for an excellent and easy read, and a memorable walk down memory lane.
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on July 17, 2014
Peter had done an outstanding job in capturing the depth of IBM. It is the IBM that those of us who worked there for years remember and respect. Being hired in 1974 and spending 34 years with the greatest company in the world I personally saw the evolution of the company. Peter does a great job in documenting that process. Respect for the individual and trust and confidence in others are beliefs that can not be taught but have to be experienced to understand. I also believe that it is the responsibility of everyone who grew up in that positive environment to help educate the younger generation on business. That is the real value of Peter's book. It should be required reading for any business class. I know I am going to use it in my classes at the college level. IBM had something that can not be duplicated in business today and it centered around its people. I highly recommend this book to anyone who wants a realistic view on business.
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on June 30, 2014
Peter's masterpiece is a courageous and transparent view of the flaws that impact corporations today and specifically a former great leader, IBM. Through his thorough report of the IBM saga over the past decade or two, Peter captures the essence of the shift in leadership thinking. From its Founder's principles of Respect for the individual, Service, and Excellence that grew one one of the most respected global corporations, IBM has morphed into a self-destructive culture full of bureaucracy, bullying, high turnover, rampant cost cutting, and frequent layoffs (sending thousands of IBMers out into the world as negative ambassadors.) As management guru Dr. W. Edwards Deming would moan, "They have the Seven Deadly Diseases." Peter's call to action is for the Board of Directors/CEO to do their job and to choose leaders who cares more about doing the right thing: to lead IBMers; serve customers; and transform for a healthy sustainable future.
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on November 10, 2014
Peter Greulich does a brilliant job of identifying the business value of IBM's 20th century corporate culture -- not only did management behave well because it was the right thing to do, but the Corporation prospered as a result. He offers a well-written account of the changes that diluted and then destroyed the culture we IBMers loved. His analysis is clear and convincing.

During my time with IBM in Europe and Los Angeles, we looked with pity on employees of companies with what we saw as a disrespectful corporate culture, especially as we saw so many of those companies fade away.

Get it on paper, though. The Kindle version is very convenient, but the book contains excellent graphics which are too small to read on a standard Kindle -- the text size adjustment doesn't affect charts and illustrations.
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