Example: Global Structure at IBM
A. Key learning point of example: The case looks at Lou Gerstner and IBM.
B. Gerstner needed to alter the behavior of his country managers to create greater coopera”on across
na”onal boundaries.
1. He created a global matrix.
2. His change led to lots of resistance from the country managers.
C. Analysis of Example
What renewed strategy is Gerstner trying to pursue?
He is trying to posi”on IBM as a truly global organiza”on in response to global customers such as
American Express. This is an example of moving from a mul”na”onal to a global organiza“on—one that
allows seamless responsiveness to global customers.
What behavioral changes will be required?
Gerstner has targeted the behaviors of IBM’s country managers. In the past, IBM has emphasized and
bene-ted from high levels of autonomy within each country. Now, however, he wants country managers
to act as part of a highly interdependent team, working with customer groups.
How has he approached change implementa“on?
Gerstner has taken his past experience at McKinsey & Co. and imposed their structure—globally-focused
