Thomas WatsonLate CEO of IBM[1914 - 1956]

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The Dark Side of Leadership

“individuals who are effective at building teams and getting results through others, but who obtain results that are morally or ethically challenged or undermine organizational or community success”

Destructive Leadership

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Background Born - 1874 in Campbell, NY Died - 1956 at 82 1st job: bookkeeper at a market

$6 / week

Traveling salesman National Cash Register Company (NCR)

Salesman General Sales Manager

Computing-Tabulating-Recording Co. [later IBM] 1914: General Manager 1915: President

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IBM Success Products: punch card tabulator, time clocks, business machines

Rented machines annually

Watson: 42 years at IBM First 4 years: more than doubled revenue to $9 million

Stock Investment Increase:

Number of Shares

Year Significance Worth (USD)

100 1914 When Watson started $2,750

153 1925 11 years later $6,263

3,990 1956 Year Watson Died $2,164,000

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Management One of the first to offer employee benefits

Medical expenses / Insurance / pension plan Emphasized benefits had already been earned

Industrial “family” concept1. Customer – good value for money2. “Family” – proper compensation3. Corporation Owners – profits

Effective tactics: Generous sales incentives Focus on customer service Insistence on well-groomed appearance Instilled company pride and loyalty

“THINK” motto

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2 Major Successes1. Great Depression Layoffs

Not laying off large amounts of employees Kept factories running Stockpiled inventory Filled orders faster than competitors when economy came back

2. IBM Automatic Sequence Controlled Calculator (ASCC) Authorized building of a program-controlled super calculator Cost: $500,000 Too big and expensive to manufacture or sell Great publicity

Set reputation as a leader in a new industry Began transformation into world’s most dominant computer company

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International Relations

FDR sent international authorities for Watson to entertain in NY

Expanded operations to Europe, South America, Asia, Australia

Watson elected president of International Chamber of Commerce in 1937

IBM international slogan: “World peace through world trade”

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IBM Nazi Involvement 12 year alliance with the Third Reich Nazis used IBM technology for

Military campaigns Railway traffic control Organization, systematization, & acceleration of anti-Jewish program

IBM provided machines, punch cards, training, servicing, direct management NY HQ European subsidiaries

IBM custom-made a card for top Nazi statistician & Jewish demographics expert

Hitler gave Watson an honorary medal for his services (1937)

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SourcesInformation Black, Edwin. “IBM’s Role in the Holocaust —

What the New Documents Reveal.” The World Post. 2015. Web. 30 Mar 2016.

“Chronological History of IBM: 1910s.” IBM. Web. 30 Mar 2016.

Hughes, Richard L., Ginnett, Robert C., and Curphy, Gordy J. Leadership: Enhancing the Lessons of Experience. ed. 8. New York: McGraw-Hill Education, 2015. Print.

“Thomas J. Watson” NNDB. 2014. Web. 30 Mar 2016.

“Thomas J. Watson: CEO 1914-1956.” IBM. Web. 30 Mar 2016.

“Thomas J. Watson Sr. Is Dead; I.B.M. Board Chariman Was 82.” The New York Times. 20 June 1956. Web. 30 Mar 2016.

Images “A Culture of Think.” IBM. Web. 30 Mar 2016.

“American Supporters of European Fascists.” This War Is About So Much More.” 2003. Web. 30 Mar 2016.

“IBM Automatic Sequence Controlled Calculator (ASCC) – Harvard Mark 1.“ Collection of Historical Scientific Instruments: Harvard University. Web. Mar 2016.

“IBM CEO Thomas J. Watson.” IBM. Web. 30 Mar 2016.

“International Business Machines: (1924-1926).” IBM. Web. 30 Mar 2016.

“Thomas J Watson Sr, Father of IBM.” I Programmer. Web. 30 Mar 2016.