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That kind of individualism and decentralization served IBM well for so many years, but by the 80’s and early 90’s those value systems were no longer tenable. This was eroding IBM’s market share and profitability. IBM’s culture was also very collective and there was little being done to correct under performing employees. In fact, since little was done to motivate these employees out of their safe environment, they were not driven to perform or stay current with the changing markets or technological competitors. Highly decentralized nature of IBM was hampering its ability to serve global customers such as American Express because to these customers it was like dealing with multiple national mini-IBM’s with little capacity to achieve consistent and seamless service...
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