Whenever I read news about IBM, I'm glad I got out of that place. When I joined the company in the mid-90s, during Gerstner's reign, it was a great place to work, and a very successful company. There were plenty of problems, to be sure, and Gerstner laid off lots of employees, but the company was focused on the future and on building new and successful business. The employees were generally treated quite well, performance was amply rewarded, and education budgets were generous and easily accessible to ensure that technical employees continued developing their skills and the culture was one of mutual support to get things done. For large technology companies, I think the approach to employee continuing skill development is something of a bellwether for the company's future.
When Gerstner stepped down and Palmisano took over, however, the company began a long, gradual slide. It became cost-obsessed and quarterly earnings-focused. Some belt-tightening was appropriate during the dotcom bust, but that actually didn't hit IBM very hard. The problem was that Palmisano's leadership team had no idea how to create new business, the IBM services group that Gerstner started and used to revitalize the company was reaching a kind of natural saturation point, so Palmisano started slashing costs to prop up profit growth as revenue growth got harder to find. Even worse, the cost pressure began to change the culture of the company, creating more internal competition which began to turn ugly.
By the time I left in 2011, IBM had become a fairly unpleasant place to work. Global Services was the worst, for example utilization targets were routinely set so high that it was impossible to take vacation time without working overtime in order to make up for it, and cost controls had squeezed out all career development funding unless you could hide it in customer contracts. Software Group was struggling and had shifted more to focus on sales rather than development. IBM has always been primarily a sales company, backed by engineering, but shifting the balance too far towards sales is a way to boost short-term profits at the expense of long-term success. I personally got caught in that shift; my job was transformed underneath me from an architecture and development role to a technical sales support role. I even hear from my friends in R&D that they were also getting squeezed hard, with increasing pressure to abandon work on any ideas that couldn't be productized within a few months.
When I heard that Ginni Rometty was taking over for Palmisano last year I just shook my head. Rometty was a driving force in squeezing services employees with ever-increasing utilization targets and ever-tightening cost structures. IMO, IBM needs another visionary like Gerstner, not another jumped-up middle manager like Palmisano, but that's what they got in Rometty. She's a smart, talented, aggressive jumped-up middle manager, but still not what IBM needs, IMO.
I'm glad I left. I really should have done it a few years before I did.