Farnam Street helps you make better decisions, innovate, and avoid stupidity.

With over 350,000 monthly readers and more than 88,000 subscribers to our popular weekly digest, we've become an online intellectual hub.

Louis Gerstner: An Elementary Management Lesson

IBM CEO Louis Gerstner

Louis V. Gerstner Jr. is a pretty shrewd psychologist.

In this excerpt from Who Says Elephants Can’t Dance?, which details how he turned around IBM, Gerstner echoes Warren Buffett.

I’ve had a lot of experience turning around troubled companies, and one of the first things I learned was that whatever hard or painful things you have to do, do them quickly and make sure everyone knows what you are doing and why. Whether dwelling on a problem, hiding a problem, or dribbling out partial solutions to a problem while you wait for a high tide to raise your boat— dithering and delay almost always compound a negative situation. I believe in getting the problem behind me quickly and moving on.

This is a short post but one that I feel is worthy of reflecting upon. There is a lot to unpack in there.