Who Says Elephants Can’t Dance?

Who Says Elephants Can’t Dance? is an account of IBM’s historic turnaround as told by Louis V. Gerstner, Jr., the chairman and CEO of IBM from April 1993 until March 2002. Lou Gerstner led IBM from the brink of bankruptcy and mainframe obscurity back into the forefront of the technology business. After a brief foreword and introduction in which Gerstner provides his pre-IBM background, he jumps right into the story of his IBM experience. The book is divided into five parts: “Grabbing Hold,” “Strategy,” “Culture,” “Lessons Learned,” and “Observations.”

Part I, “Grabbing Hold,” is the story of how Gerstner wrestled with the idea of taking the IBM job (he turned it down at first), followed by highlights from his first year on the job. It provides an interesting insider’s view of the CEO recruiting process for a Fortune 50 company and describes how Gerstner addressed IBM’s severe financial crisis in the early ’90s and managed to keep the company solvent. It also reveals just how precarious IBM’s financial position was during that time, which many readers (including myself) might not have known. Still, although Part I is quite interesting, the real meat of the book is in the subsequent parts.

After stepping back to provide a brief history of IBM, Part II (“Strategy”) dives more deeply into how Gerstner repositioned IBM’s corporate strategy to keep the company together and pull off a successful turnaround. When Gerstner came on board, the conventional wisdom, from both industry pundits as well as many IBM insiders, was that the only way to save IBM from eventual disaster was to break it apart. But Gerstner looked beyond this advice and opted to preserve the real strength he believed IBM brought to customers. His decision to keep the company together and “teach the elephant to dance” was “the first strategic decision, and, I believe, the most important decision I ever made — not just at IBM, but in my entire business career,” Gerstner writes.

Fixing IBM: “All about execution”

What Gerstner realized is that IBM had a unique and unequaled capability to “apply complex technologies to solve business challenges.” It was this unique value proposition that would enable him to bring IBM back from near extinction. But to accomplish this, IBM needed not only a corporate makeover, but also a complete facelift and some liposuction as well! Gerstner likens his arrival at IBM to stepping through a time warp and arriving back in the ’50s. A massive, difficult, and painful reengineering feat was required to get the insular IBM to focus on bringing value to the customer in the marketplace. Ultimately, though, this led to the “new” IBM. It also gave rise to a hilarious statement that the book credits to a senior IBM executive: “Reengineering is like starting a fire on your head and putting it out with a hammer.”

In Gerstner’s own words, “fixing IBM was all about execution” and required “an enormous sense of urgency.” His whole approach was to drive the company from the customer’s view and “turn IBM into a market-driven rather than an internally focused, process-driven enterprise.” And it worked. It was all about execution — and honest ways to measure its effectiveness. Before Gerstner arrived, IBM had a tendency to fool itself with bogus indices and data (e.g., customer satisfaction numbers generated from hand-picked samples; subjective product milestones, etc.), but he changed all that. “People do what you inspect, not what you expect,” he explains.

I couldn’t help thinking that perhaps Gerstner took a peek at Rational’s mission statement and Five Field Measures to craft his IBM strategy, but then I know these things work because they are based on sound general business principles. As a new IBM employee, I was very encouraged by Gerstner’s maniacal attention to customers’ notions of success and his single-minded focus on responding to marketplace needs. If his market-driven approach to doing business really does pervade the “new” IBM culture, then it will be no surprise if IBM ends up dominating the technology landscape in this century, just as it did in most of the last one.

Culture is everything

Part III (Culture) was particularly interesting to me because one of the main reasons I wanted to work for Rational was the company culture, and I was concerned about its compatibility with IBM’s culture. Many Rational tech reps (myself included) say they have enjoyed working at Rational because the company culture empowers individuals to make a difference. Fortunately, company culture was another of Gerstner’s main targets for change:

Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization’s makeup and success — along with vision, strategy, marketing, financials, and the like. I came to see, in my time at IBM, that culture isn’t just one aspect of the game; it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.

Gerstner’s most important and proudest accomplishment was to institute a culture that brought IBM closer to its customers by inspiring employees to drive toward customer-defined success. Now, the company’s strong customer focus will allow Rational to continue pursuing the same mission that has guided us for more than twenty years.

Wisdom and Insights

There are nuggets of wisdom throughout the last two sections of the book. In “Lessons Learned” and “Observations,” Gerstner points out that some integrator, fundamentally acting in a service role, controls every major industry. This was the basis for building IBM Global Services. Another shrewd Gerstner insight is that every major industry is built around open standards. It was this realization that led IBM Software to enable and build on open standards in a network-centric world, and Gerstner provides a compelling argument for abandoning proprietary development and embracing software standards (e.g., J2EE and Web Services). In fact, Gerstner argues that the most valuable technology companies are OEM suppliers who leverage their technology wherever possible; therefore, IBM must actively license its technology in order to be successful. The book’s three appendices contain, respectively, some interesting e-mail correspondence, Gerstner’s vision of e-business (including the IBM IT On Demand, autonomic, and grid computing initiatives), and a financial overview of IBM from 1992 to 2002.

The latter clearly demonstrates that Gerstner got results. Although many people criticized IBM for selecting a non-technical CEO, based on IBM’s performance during his reign (and the insight he reveals in this book), Gerstner was definitely the right person for the job. His reinvention of IBM was one of the most dramatic corporate turnarounds of the twentieth century, and the numbers in Appendix C of this book will certainly shut the mouths of any would-be critics.

Before opening this book, I had assumed it was Gerstner’s autobiography and would highlight not only his IBM career, but also his years at the consulting firm McKinsey and Company and his executive tenure at American Express and RJR Nabisco. I also assumed that, as is typical of many books by high-profile executives, the book was ghostwritten in part. Gerstner dismisses both of these assumptions in the foreword. Not only did he write the book himself, he claims, but also the book deals (as the subtitle “Inside IBM’s Historic Turnaround” suggests) almost exclusively with Gerstner’s IBM years.

Under other circumstances I might regard this book as just another well written and interesting memoir from a captain of capitalism; both Rational employees and Rational customers now have a stake in the success of IBM and will gain a better understanding and appreciation of the company by reading this book.

INDIA UNBOUND

In 1997, when India celebrated

the 50^thanniversary of its independence, the world paid homage to its most populous democracy. Other countries had grown richer in those postcolonial years. Many had escaped the political and religious convulsions that had so often shaken the region. But almost alone in the non-Western world — barring a short interruption in 1975, when Indira Gandhi declared a state of emergency — India had clung doggedly to its democratic convictions. A slew of books commemorated the achievement. One of the finest, Sunil Khilnani’s “Idea of India,” described India’s polity as “the third moment in the great democratic experiment launched by

the American and French Revolutions.

Like many of these books, Gurcharan Das’s “India Unbound” is a broad summing-up of the last half century. Part memoir, part journalism, part history and part management bible, the book begins shortly before independence and continues until the new millennium. A former C.E.O. of Procter & Gamble in both India and America, and currently a venture capitalist and consultant, Das is less concerned with political than with economic history. And where authors like Khilnani cherish the revolution that began with independence in 1947, Das does not find full cause for jubilation until 1991, when India unleashed a series of economic reforms, the start of an “economic revolution” that he believes “may well be more important than the political revolution.”

Those reforms were forced upon India, adopted less than enthusiastically when the nation found itself with foreign exchange reserves worth only two weeks of imports. Over the course of what Das calls a “golden summer,” a newly installed government surprised everyone by easing foreign exchange restrictions, devaluing the rupee, lowering import tariffs and undoing the byzantine controls that had stifled Indian industry. Many — Das included — feel the reforms should have gone further, but the results nonetheless have been dramatic: after decades of chugging along at the so-called Hindu rate of growth (a dismal 3.5 percent per year), the economy grew by an average of 7.5 percent in the mid-1990’s. The growth in disposable incomes, and the opening up of the country to world markets, has altered the face of Indian society, creating a new consumer middle class. Das argues that these changes are only the beginning of a dramatic reversal of fortunes. “The theme of this book,” he writes, “is how a rich country became poor and will be rich again.”

At the heart of “India Unbound” is a deep ambivalence about Jawaharlal Nehru, the architect of Indian independence but also of its disastrous economic policies. Das recognizes the political contributions made by Nehru, and he writes of the admiration he felt as a young man for the handsome leader whose lofty ideals inspired a nation. But, echoing an increasingly common attitude in modern India, he feels that Nehru’s faith in Soviet-style central planning cheated the nation of the prosperity enjoyed by some of its Southeast Asian neighbors. Nehru’s revolution, Das argues, was incomplete, delivering political liberty but failing to unshackle the nation economically. In one of the more eloquent expressions of this sentiment, he tells of a meeting at which the industrialist Rahul Bajaj is threatened with imprisonment for producing more scooters than permitted by his quota. “My grandfather went to jail for my country’s freedom,” replies Bajaj. “I stand ready to do the same for producing on behalf of my motherland.”

Such stories enliven what could easily have been a dull piece of economic history. Das had a ringside seat at the events he describes, and the result is an engaging account that moves easily from the big picture to the telling anecdote. Through Das, we are introduced not just to the standard pantheon of political figures but to a range of lesser-known characters from the corporate world. These include old-fashioned industrialists like Bajaj and also a new brand of businessman — entrepreneurs like Narayana Murthy, the C.E.O. of Infosys, India’s most successful software company, and Subhash Chandra, the founder of a global Hindi satellite television channel, often called “the Murdoch of Asia.”

Das’s sympathies clearly lie with this later generation of managers. He sees the earlier breed as dinosaurs, pampered by a protectionist government and doomed to oblivion. His enthusiasm for the new order becomes most apparent in the book’s final section, where he succumbs to a certain giddiness over India’s prospects in the 21st century. Das is particularly excited about India’s software industry, a sector whose great success has led many to predict — as the head of India’s largest mutual fund recently did — that “what oil is to the Middle East, infotech is to India.”
Such optimism is not entirely misplaced. India’s high-tech industry has been the most visible success of the reforms, generating fabulous wealth and great opportunities. What is less clear is the extent to which this wealth is trickling down to the 300 million Indians who still live in poverty and the 75 percent who live in the countryside, far away from the new economy. Das is undoubtedly right that poverty has tarnished India’s democracy, but he seems less concerned that unequal prosperity may have the same effect. To be fair, he does argue that democracy and capitalism need not be mutually exclusive, and cites from the work of Amartya Sen, who has repeatedly written on the importance of integrating the two. But despite his professed preference for “democratic capitalism,” Das’s faith in free markets can come across as overly zealous, as when he complains that too many Indians “are still listening to the background noise of democracy when we could be listening to the music of entrepreneurship.”

However, one doesn’t need to share Das’s unbridled fervor for markets to appreciate this book. “India Unbound” is like an opinionated but insightful guide to a rapidly changing nation in which old clichés about spirituality and poverty are increasingly irrelevant. Near the end, Das writes about his son, who has decided to leave a job in New York and return to India to start a company. “He’s caught up in the spirit of our times, when every young person is willing to risk the security of a job to pursue his passion,” Das writes. That “spirit” signals a dramatic widening of horizons, a new self-confidence. Something tremendous is happening in India, and Das, with his keen eye and often elegant prose, has his finger firmly on the pulse of the transformation.

The Alchemist

An alchemist traveling in a caravan in an unspecified place and time recounts a fable that he read along the way. The story is a modified version of the myth of Narcissus. The twist in this version is that the lake in which Narcissus drowns weeps for the death of Narcissus not because of his beauty, but because the lake could gaze at its own beauty in the eyes of the young boy. This idea is taken from a short prose-poem by Oscar Wilde called ‘The Disciple’.

Santiago, the protagonist, grows up with poor parents who struggled their whole lives to send him to seminary. But Santiago has a strong desire to travel the world, and so his father allows him to use his inheritance to buy a flock of sheep.

As a shepherd, he spends several years traveling the countryside of Andalusia in southern Spain, enjoying the care-free and adventurous life of a wanderer. As the story begins, we learn that a year ago Santiago met the beautiful daughter of a merchant in a town he is soon to revisit. Even though he spent only a few hours talking with this girl, his strong feelings for her make him question his life as a shepherd and make him consider the merits of a more settled life. He sleeps in a church where a sycamore tree grew where the sacristy once was (refer to end).

When he arrives in the town where the girl lives, he first decides to go to a gypsy fortune-teller to help him decipher a recurring dream that he had been having. Santiago always dreams that a child is playing with his sheep and then takes him by the hand and brings him to the Pyramids of Egypt to show him the location of a hidden treasure. But Santiago always wakes up just before the child is going to reveal to him the exact location of the treasure. The gypsy says that he has to go because if it is a child that tells, it exists.

At first, the boy does not mind what the gypsy says, but when an old man, who calls himself Melchizedeck, the king of Salem, tells him that it is his Personal Legend or his purpose to live, he is interested. Melchizedeck tells him a wonderful story about a man who found true happiness by fulfilling his Personal Legend. The king gives the boy two stones, Urim and Thummim, one black and the other white, the black meaning “yes” and the white “no”. These, he says, are for making decisions, although it is best to make them himself. Santiago decides to travel to Africa. He sells his sheep and goes to Tangier, a port in Africa near Spain. But in Tangier, he is robbed. Losing hope, he decides to walk about the city; up in a hill, and finds a crystal shop. He finds that business declined when the nearby city developed. When the boy enters the shop, he cleans the dusty crystal glasses in exchange for some food to eat. As he is cleaning two customers enter the store and buy some crystal glasses. The Arab merchant says that it is a good omen, and hires the boy. Santiago learns that every person’s fate is written, and that there is a Language of the World (unspoken) learned partly by his dealings with his sheep.

After almost a year, the boy decides to leave the crystal shop since he has enough money to buy a flock of sheep twice the size of the one he had before, and since he has since learned Arabic, can sell to Arabic merchants too. But he never buys a single sheep. He decides to fulfill his personal legend – to find his treasure.

He joins a caravan going to the desert where the Pyramids are found. In the caravan, the boy meets an Englishman who for twenty years has searched for true alchemists. The Englishman has many books on alchemy that are unusual to the boy. In the caravan, he learns the language of the desert and the Soul of the World.

As the caravan rolls on toward the oasis, the two people in the caravan decide to learn from one another. As the Englishman attempts to observe the desert and learn its language, Santiago reads the Englishman’s books and learns about alchemy. The Englishman tells him that the goal of alchemists is to purify metal by heating it for many years until all its individual properties are burned. After a while, Santiago stops reading and returns the books to the Englishman, and each tells the other he is not able to learn anything. Santiago concludes everyone has his or her own way of learning things.

When it arrives in the oasis, the caravan is welcomed and told that it will not be permitted to proceed further because of tribal wars. Santiago helps the Englishman look for the alchemist. He meets a desert woman named Fatima who tells the group where the alchemist lives. The boy is infatuated with Fatima’s beauty at first sight, and tells her that he loves her and wants her to be his wife. At the very same time, the alchemist living at the oasis realizes that he will meet a disciple who would learn from him the secrets of alchemy. Apparently the disciple turns out to be Santiago.

Santiago meets the alchemist after averting a threat of tribal attack on the oasis through a vision he has after reading about the flight of two hawks. The alchemist tells the boy that he will never be happy unless he fulfills his Personal Legend. Reluctant to leave the oasis because of his love for the desert girl Fatima, Santiago tells the alchemist that he wants to stay there, accepting the new role of councilor which was offered to him by the chieftain when Santiago saved the oasis. But the alchemist warns Santiago that in the future he would lose his ability to see omens because he stopped listening to the omens that told him to find his treasure and fulfill his Personal Legend. As a result he would lose his position as the councilor and he would regret not pursuing his destiny of finding his treasure.

Eventually, Santiago decides to leave the oasis with the alchemist in pursuit of his treasure. While traveling through the desert, the boy learns from the alchemist. He learns that each person who fulfills his personal legend enhances the Soul of the World, and that the world is just here to show to show God’s glory. The alchemist also tells the boy to listen to his heart and understand it so it will not betray him and tell him in fear that it is not wise to find his treasure. Santiago and his heart become one, and Santiago’s heart tells him that he has learned the unspoken Language of the World.

Santiago and the alchemist are captured along the way by one of the warring tribes. The alchemist tells the chief that they have brought money to give to him. the money is accepted without question as it can buy many arms; the alchemist then declares that Santiago is a powerful alchemist and can turn himself into the wind and destroy the military encampment if he wants to. The leader demands to see this and tells the boy he has three days to demonstrate his power or the two will die. This is the ultimate test of Santiago’s knowledge of alchemy. On the third day, Santiago leads the group to the top of a cliff and tells them that the action will take a while.

Using his knowledge of the Language of the World that he learned from his heart on his journey, Santiago talks to the desert, and teaches it about love, and eventually the desert allows Santiago to use his sands, saying that he would also need the wind to blow them. Santiago turns to the wind, and tells it that it hasn’t met its full limits. The wind, curious about what it could do, strikes up a conversation about love with the boy. The wind is unsatisfied, and suggests the boy talk to the heavens (the sun). The boy tells the wind that it must blow the sands so he will not be blinded when looking at the sun. The boy proceeds to talk to the sun, and after the sun tells him that although he is wise, he doesn’t know how to turn Santiago into the wind. The wind, overjoyed that he knows that the sun has its limits, blows even harder.

The “Sinum,” the sandstorm that results, almost destroys the camp. Two commanders with the chief are fearful and tell him that they should stop this. The chief replies that he wishes to see the greatness of Allah, the Muslim god, and makes a mental note to remove the two from command as true desert men are not afraid. Santiago is told to talk to the hand that wrote all, that is, the Son of God. The boy and the Son of God have a silent conversation, and the soul of the boy becomes one with the Soul of the World, which is the Soul of God. The Soul of God can perform miracles, and Santiago turns himself into the wind and moves off the cliff to the far side of the camp next to a sand-covered sentinel.

After turning himself to wind, Santiago and the alchemist travel on to the pyramids with an escort party provided by the general-chief. They stop at a monastery, and the alchemist tells the escort party to return to their camp. There he meets a monk and they talk in the Coptic tongue. The monk invites them in. In the kitchen, the alchemist shows Santiago a demonstration of turning a pot of lead into gold. The alchemist divides the gold into four quarters and gives the monk one of the pieces for his generosity and hospitality. He gives a piece to Santiago, and one for him to return to the oasis. He gives the final piece to the monk for Santiago in case he ever needs it. Santiago and the alchemist separate not far from the pyramids. Santiago’s heart tells him that he should dig for his treasure where he weeps after getting to the pyramids of joy.

Robbed once again near the pyramids, Santiago gives up hope, but the robber tells him that he is stupid to have traveled so far. He then tells the boy of a recurring dream in which he had seen a treasure in a church where shepherds and their sheep slept, hidden under a sycamore tree growing where the sacristy once was. The boy, who slept in this church as a shepherd himself at the beginning of his adventures, goes back to the monk to get money for the return trip and finds the treasure, a chest of Spanish gold coins.

The idea for this story is taken from a short prose-poem by Oscar Wilde called ‘The Disciple’.

THE MONK WHO SOLD HIS FERRARI

The Deepak Chopras and Eknath Easwarans have done a great service in calling attention to ancient scriptural wisdom that is in danger of being forgotten.

And now there is a new kid on the block. Robin Sharma, a popular media personality in the US, who runs an institute that, conducts leadership and life-enrichment programmes and has authored several books on related subjects.

His latest foray ‘The Monk who sold his Ferrari’ unravels the miraculous transformation of successful but overworked lawyer, Julian Mantle who, having reached atop the success ladder suddenly stops to take a long look the life he is leading.

His search for spiritual solace takes him to India, to the Sages of Sivana where he drinks from the fountain of higher knowledge and unlocks the secret of youthful vitality.

‘The Monk…’ imaginatively reiterates the ancient truths of Sivanan philosophy in a very forceful manner. The Monk…. effectively expresses ancient truths in a modern idiom.

Sample a few messages from this book: “There are no mistakes, only lessons”, or “Life pretty much gives you what you ask from it. It is always listening”, or again, “Stop spending so much time chasing life’s big pleasures while you neglect the little ones”, and so on.

This is one book that perhaps the corporate-variety or the workaholics would do well to read, along with their ‘One minute manager’ or ‘Think and grow rich’ handbooks.

Julian Mantle could well be their alter-ego.

The book has interesting fables and innumerable anecdotes, but one attributed to ‘ancient India’ is suspiciously similar to Oscar Wilde’s, “The Selfish Giant’.

Having said it all, I’ll say book is a stimulating read.

Wisdom Revisited
A tale of a modern man’s discovery of the transforming power ancient wisdom