Focus of the Organizational Change Report by Lou Gerstner

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IBM: Change Report

Introduction

Change in an organization is a challenging task for the managers. After implementation of successful change in an organization, there might be chances that change leaders would face resistance in their change program. A successful change plan in an organization helps the change leaders to change in employees' attitude and behavior. It can help the organization to compete in the market and also helpful to increase market shares (Jones & Mathew, 2008). This report discusses Lou Gerstner's change program at IBM. This report also discusses the resistance to change and skills and strategies for communicating change in an organization.

Resistance to Change at IBM

At the arrival of Louis V. Gersnter in IBM, the biggest barrier to change was the culture of organization. As Dennie Walsh, head of Integrated System Service Corporation stated that most of the salespersons of IBM recommended the products of IBM's competitors such as Microsoft, HP and Sun Microsystem rather than products of IBM. He also stated that most of the service contracts were unprofitable that has had a negative impact on the willingness of employees to sell company's services and the measurement system of compensation and performance also worked against employees' requirements. It resulted into reduced confidence of employees towards the products and services (Giachetti, 2010).

In the beginning of IBM, the company had a strong culture that showed the reputation of IBM employees as loyal and highly motivated employees towards the company. The employees of IBM also committed to conduct the business in an effective manner. At the time of ...