In the 1950s, IBM looked
much different than it does today. Back then, they produced punch-card systems. Exciting stuff.
In fact, the company repeatedly rejected developing computers because the CEO at the time, Tom Watson Sr., thought they were overpriced and unreliable.
In 1952, Tom Watson Jr. took the reins as president of IBM. Under his leadership, the company went from $275 million in sales in 1952 to $734 million in 1956. That’s a 267 percent increase in just four years, impressive by any standard.
In the early 1960s, Tom Jr. oversaw a project called System 360, which produced a new line of computers that (for the first time) ran the same software and devices.
Fortune magazine called it “IBMs $5 million gamble.”
The gamble paid off … and revolutionized the computer industry. It was the impetus for the personal computers we use today.
It was also the catalyst for Tom Watson Jr. to maintain an almost 30 percent annual increase in sales for the entire 20 years he was at the helm of the company.
Watson was famous for his unique vision, not just when it came to making major business decisions, but also with his employees. I’ll give you an example.
In the early 1960s, a young executive at IBM made some bad decisions that ended up costing the company several million dollars (a huge sum of money at the time).
The employee was called to Watson’s office and as he walked in, before Watson could utter a word, said something along the lines of, “I know after that mistake, you’re surely firing me, I just wanted to say how sorry I am. I have no excuse.”
With that he tended his resignation.
Watson sat silently for a moment and replied, “Not at all young man. We just spent several million dollars educating you, I’m certainly not going to fire you and lose such a substantial investment.”
Now, Watson could have gotten frustrated, angry, and fired the young executive. Most executives probably would have. But what would that have solved? It certainly wouldn’t get back the millions lost, and Watson knew it.
Instead of seeing it as a disaster, Watson viewed the mistake as an opportunity for learning.
This is the first thing that separates leaders from the pack: they have the ability to view things from a different perspective than everyone else.
A good leader is someone who understands that there is little difference between an obstacle and an opportunity and is able to turn both to their advantage.
Thomas Edison embodied this concept. On more than one occasion, he was heard saying, “I haven’t failed, I’ve just found 10,000 ways that won’t work.”
In fact, in 1919 Edison’s office and library were destroyed in a terrible fire. When asked about the disaster he famously said, “All our mistakes are burned up. Thank God we can start anew.”
Most people would have been devastated by such an event, but not Edison. He looked at the catastrophe as a new beginning.
Of course, employing this type of optimism is easier said than done, especially when you’re in the heat of battle, being pulled in a million different directions. The good news is that it’s a learned behavior. You know how to get to Carnegie Hall, right?
So next time you’re faced with a challenge, take a step back and a deep breath. Ask yourself if there’s another angle you can look at the situation from. Is there anything encouraging about what happened, or are there lessons to be learned?
Remind yourself that negativity and hasty reactions aren’t going to lead to positive results. Getting frustrated will not fix a mistake or motivate an employee to improve.
Good leaders don’t succumb to emotional, short-sighted reactions; they simply respond, calmly and intentionally. Employees trust good leaders because they look at issues and challenges objectively and rationally.
So, what kind of leader are you? If you’re unsure, there’s an easy litmus test.
Do your employees regularly ask for your input or advice (not just about work but about life, too)? Does your team generate new ideas for your business and play a role in implementing them? Do they take pride in their work and responsibility for their mistakes?
If you answered “yes” to these questions, congrats — you’re doing a great job. If not, perhaps it’s time to shift your perspective.
Adam Katzen is Co-Founder of 360 Consulting, a business strategy, management, and coaching organization. 360 Consulting grows businesses, helps navigate transitions and crises, coaches executives, and helps build innovative and invested corporate cultures. To chat about how 360 Consulting can help your business, click here.
