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" The real mechanism for corporate governance is the active involvement of the owners. "
Louis V. Gerstner, Jr.
Active
Governance
Real
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" I think that my leadership style is to get people to fear staying in place, to fear not changing. "
Louis V. Gerstner, Jr.
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" If CEO compensation was performance-driven, which I believe it was in IBM's case, nobody would ever argue. If the shareholders didn't make billions and billions of dollars, I wouldn't make millions of dollars. My salary was the same for 10 years. It was all performance-based. "
Louis V. Gerstner, Jr.
Salary
I Believe
Believe
" I firmly believe that IBM's size can be used to its advantage. "
Louis V. Gerstner, Jr.
Believe
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Size
" People don't do what you expect but what you inspect. "
Louis V. Gerstner, Jr.
People
You
Expect
" You can never be comfortable with your success, you've got to be paranoid you're going to lose it. "
Louis V. Gerstner, Jr.
Lose
You
Success
" We do not need Departments of Commerce, Labor, and Education; we need a single Department of Skills that will promote an integrated approach to global competitiveness. "
Louis V. Gerstner, Jr.
Need
Education
Labor
" I want to become a student. I want to read Chinese history and go on a dig. "
Louis V. Gerstner, Jr.
Dig
Want
History
" When I arrived at IBM, there were 'Team' signs all around. I asked, 'How do people get paid?' They told me, 'We pay people based on individual performance.' "
Louis V. Gerstner, Jr.
Me
Team
Signs
" A lot of people saved IBM. Yes, I was the leader of that team, but I could never have done it without a group of IBMers helping me. "
Louis V. Gerstner, Jr.
Team
People
Me
" When a manufacturing company in Spain looks to IBM for a solution to a problem, they expect us to bring the best of IBM worldwide to it, not just the experience of IBM Spain. "
Louis V. Gerstner, Jr.
Problem
Experience
Solution
" Whether the task is fixing health care, upgrading K-12 education, bolstering national security, or a host of other missions, the U.S. is better at patching problems than fixing them. "
Louis V. Gerstner, Jr.
Problems
Health
Education
" You know, you don't need a leader to sort of administer something that's going very well. In fact, in one sense, an overly ambitious person in that circumstance can probably screw it up. "
Louis V. Gerstner, Jr.
You
Know
Going
" Visit USA.gov and you'll find thousands of directorates, agencies, boards, offices, and services replete with overlapping responsibilities, ancient priorities, and divided accountability. "
Louis V. Gerstner, Jr.
You
Priorities
Find
" The value that some analysts put on revenue vs. what they put on profit is out of whack. If you can grow real cash earnings, that's 80% of what you ought to do, and the revenue component is 20%. "
Louis V. Gerstner, Jr.
You
Value
Profit
" The next thing is: we can make IBM even better. We brought IBM back but we're gunning for leadership. "
Louis V. Gerstner, Jr.
Even
Leadership
Next
" The fundamental issue is: In the world of the Internet, is there a place for a packager of services? Does the customer want to go surf the Net and go to every one of 50,000 Web sites? Or will people pay a reasonable amount for somebody to go out and preselect and package what they want? My guess is they will both coexist. "
Louis V. Gerstner, Jr.
Place
People
Internet
" I initially wanted to be a teacher, and then I was going to become an engineer and build bridges and highways, but pretty soon I went into the business world. I never did get to be a teacher except in a different way. "
Louis V. Gerstner, Jr.
World
Build
Bridges
" Compensation needs to be predominately performance-driven. If CEO compensation was performance-driven, which I believe it was in IBM's case, nobody would ever argue. If the shareholders didn't make billions and billions of dollars, I wouldn't make millions of dollars. "
Louis V. Gerstner, Jr.
Compensation
Nobody
Believe
" Reorganization to me is shuffling boxes, moving boxes around. Transformation means that you're really fundamentally changing the way the organization thinks, the way it responds, the way it leads. It's a lot more than just playing with boxes. "
Louis V. Gerstner, Jr.
Me
Moving
Organization
" My parents worked enormously hard to put four children through college. We didn't have a lot of money. "
Louis V. Gerstner, Jr.
Children
College
Hard
" The world is full of CEOs that think that just because they write a memo or they write a letter inside an annual report or they give a little video speech that gets sent around the company, they think that's what's really going to affect employees. "
Louis V. Gerstner, Jr.
Company
World
Think
" It's about communication. It's about honesty. It's about treating people in the organization as deserving to know the facts. You don't try to give them half the story. You don't try to hide the story. You treat them as - as true equals, and you communicate and you communicate and communicate. "
Louis V. Gerstner, Jr.
People
Communication
Treat
" What we believe is going to be very important is the delivery of traditional software and services and hardware over the Net. That's a form of electronic marketplace. "
Louis V. Gerstner, Jr.
Believe
Over
Net
" Computers are magnificent tools for the realization of our dreams, but no machine can replace the human spark of spirit, compassion, love, and understanding. "
Louis V. Gerstner, Jr.
Compassion
Love
Dreams
" I want to take IBM back to its roots. "
Louis V. Gerstner, Jr.
Roots
Want
Back
" Quite frankly, I am not very comfortable in chitchat. When I go to board meetings, I arrive two minutes before and leave when it's over. I don't stay for lunch or go early and have coffee. "
Louis V. Gerstner, Jr.
I Am
Coffee
Go
" Successful enterprises are built from the ground up. You can't assemble them with a bunch of acquisitions. "
Louis V. Gerstner, Jr.
Up
You
Bunch
" Watch the turtle. He only moves forward by sticking his neck out. "
Louis V. Gerstner, Jr.
Turtle
Watch
Forward
" I'm leery of legislative solutions to what is morality. "
Louis V. Gerstner, Jr.
Morality
Solutions
Legislative
" If life was so easy that you could just go buy success, there would be a lot more successful companies in the world. "
Louis V. Gerstner, Jr.
Life
Successful
Success