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Lesson #5: Strong Management Is The Backbone Of A Strong Company



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Lesson #5: Strong Management Is The Backbone Of A Strong Company
   

“A man is known by the company he keeps,” Watson once said. “A company is known by the men it keeps.”

Perhaps the strongest legacy that Watson left behind him was his unique management style, remnants of which still persist today throughout the ranks of IBM. “The IBM spirit, the IBM heart and the IBM language were the same in all tongues and in all countries,” Watson said, in large part due to the effective management style he put in place before handing over the reins of the company to his son.

“A manager should regard his position as one that gives him a splendid opportunity to render assistance,” said Watson. This was the first and most essential component to Watson’s management strategy. He strongly believed in the principles of equality and cooperation, claiming that, “A manager is an assistant to his men.” Watson might have been at the top of the corporate ladder, but he knew that if it weren’t for those under him, that ladder would easily crumble.

“It is impossible for any man, I don’t care how able he may be, to do the work and attend to all the details of a business – to accomplish anything – without the support of his entire organization,” said Watson. “This business is such that neither I nor any executive staff can run it alone. It is too big. Our company has grown each year and succeeded because everybody has been contributing to its success.”

Watson believed that good management meant good organization, and while everybody knew their proper place within the company, Watson claimed that cooperation was the only way the company would prosper as a whole. “Cooperation means to give just as much as you get,” he said. “Every manager’s first duty is to help the men under his direction…Listen to the man below you as well as the one above.”

In addition to working together as a team, Watson believed in the importance of sharing a common vision. In order to achieve success, management had to ensure that everybody was on the same page about where the company was heading. In a speech to IBM staff, Watson said, “We have proved the worth of our machines to the world, and I feel it is now our obligation to plan so that this business may go on for all time. I want all of you to get the same kind of vision and belief in IBM.”

However, while stressing the importance of teamwork and cooperation, Watson also emphasized the importance of individuality and accountability. “Learn to supervise yourself,” he said. In a presentation that he would use time and again in staff meetings, Watson listed off all the positions within IBM, including General Manager, Sales Manager and Factory Manager. He would then highlight the construction of the word ‘manager’, focusing on ‘man’ and the individual nature of each position. To this end, Watson never required his workers to wear uniforms, although a dark business suit – which Watson believed showed business respect – soon became the unofficial uniform.

“The great accomplishments of man have resulted from the transmission of ideas and enthusiasm,” said Watson. By emphasizing teamwork, cooperation, and accountability, and by promoting a shared vision and sense of enthusiasm, Watson was able to construct a winning team.



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