1

BUSI1323 Leadership in Organisations Summative

Assignment:
Leadership Report about Ginni Rometty
Table of Contents
I. DESCRIPTION OF THE CASE...........................................................................................2
1. Leader’s Background Information.....................................................................................2
2. Leadership Challenge..........................................................................................................2
II. ANALYSIS AND EVALUATION OF CASE..................................................................3
1. Leadership approach/concept..............................................................................................3
2. Evaluation of leadership effectiveness/endorsement..........................................................4
a/ Effectiveness of Context and Contingency Approach.....................................................5
b/ Effectiveness of Transformational Leadership...............................................................6
c/ Gender/Ethnicity Discussion.............................................................................................7
III. CONCLUSION & RECOMMENDATION.....................................................................8
1. Conclusion...........................................................................................................................8
2. Recommendations................................................................................................................9
IV. SELF-REFLECTION.......................................................................................................10
V. REFERENCES.....................................................................................................................11
VI. APPENDIX........................................................................................................................17
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I. DESCRIPTION OF THE CASE

1. Leader’s Background Information
Ginni Rometty, the former CEO of IBM, has a distinguished background that laid the foundation
for her influential career (Leavy, 2023). She graduated with high honors from Northwestern
University in 1979 with a degree in computer science and electrical engineering (Raval, 2023).
Before ascending to a significant role at IBM, she worked at General Motors Institute and later at
General Motors, gaining substantial experience in technical and managerial roles (Thomas,
2002).

Rometty's career at IBM began in 1981, where she quickly rose through the ranks due to her
keen strategic insight and leadership skills (Thomas, 2002). Prior to becoming CEO in 2012, she
led several key initiatives, including the integration of PricewaterhouseCoopers Consulting,
which was the largest acquisition in IBM’s history at that time (Narisetti, 2023).

As IBM's CEO from 2012 to 2020, Rometty was known for her transformative leadership style
(Leavy, 2023). She spearheaded the company's shift towards cloud computing and AI, focusing
on data and security services (Garcia-Murillo, M., & MacInnes, I., 2023). Her approach involved
investing billions in advanced technologies while divesting from legacy divisions that no longer
aligned with IBM's strategic goals (Leavy, 2023). Rometty emphasized the importance of
continuous learning and innovation within the organization, fostering a culture that encouraged
employees to develop new skills and adapt to evolving market demands (Chakraborty, 2024).

Rometty’s leadership philosophy also included the concept of "Good Power," where she
advocated for using leadership to drive positive change while maintaining respect and integrity
(Leavy, 2023). This principle is detailed in her memoir, which serves as a practical guide for
aspiring leaders (Masenya, 2022).

2. Leadership Challenge

In 2012, Ginni Rometty faced the significant challenge of declining hardware and software sales
at IBM (Rometty, 2023). The author indicates that the global shift towards cloud computing and
Software-as-a-Service (SaaS) models reduced the demand for traditional hardware and software
products (Jangid, 2021). This shift created a competitive environment where traditional
technology providers, including IBM, struggled to maintain their market share (Rometty, 2023).
 3

IBM's declining sales in hardware and software directly impacted investor confidence and the
company's financial performance, as evidenced by their quarterly reports showing a marked
decrease in revenue from these segments (IBM, 2023). As a result, Rometty had to address not
only the financial decline but also the strategic direction of IBM (Bessen, 2022).

To tackle this challenge, Rometty spearheaded a strategic pivot towards cloud computing and
artificial intelligence (AI) (Chakraborty, 2024). She emphasized investing in high-growth areas
such as data analytics, cloud services, and security (Kanter, R. M., & Cohen, J., 2017). Under her
leadership, IBM acquired several companies, including the landmark acquisition of Red Hat for
$34 billion, to bolster its capabilities in these domains (Zaman, 2024). Evaluating this leadership
challenge, it is clear that Rometty's decisions were pivotal. Transforming a legacy tech giant like
IBM required significant changes not only in strategy but also in corporate culture (Kanter, R.
M., & Cohen, J., 2017). Rometty's ability to steer the company through this period of
transformation highlights her strategic acumen and resilience (Goh, E., & Sengsavang, E., 2020).

Rometty's leadership traits, such as her focus on innovation, strategic investments, and employee
development were critical in addressing IBM's declining sales (CFI.co, 2023). Her approach
fostered a culture of continuous learning and adaptation, which was essential for IBM's transition
(Kanter, R. M., & Cohen, J., 2017). The results of Rometty's actions were significant. By the end
of her tenure in 2020, IBM had successfully shifted a substantial part of its business towards
cloud and AI services, achieving notable growth in these areas despite the initial decline in
hardware and software sales (IBM, 2023). This strategic shift was evidenced by the substantial
growth in IBM's cloud business, which reached $21 billion in revenue, and the successful
acquisition of Red Hat for $34 billion, enhancing IBM’s capabilities in hybrid cloud solutions
(IBMNewsroom, 2020)

II. ANALYSIS AND EVALUATION OF CASE

1. Leadership approach/concept

Based on Rometty’s background information, the author indicates that Ginni Rometty’s
leadership at IBM can be analyzed through the leader-follower and the context and contingency
approach, which provide comprehensive insights into leadership strategies and behaviors
(Kanter, R. M., & Cohen, J., 2017). The leader-follower approach emphasizes the dynamic
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relationship between leaders and their followers, focusing on mutual influence and collaboration
(Britt, 2021). This approach posits that effective leadership arises from interactions between
leaders and followers, where both parties influence each other’s behaviors and attitudes
(Alvesson, M., & Einola, K., 2022). Leadership effectiveness, in this view, depends on the
quality of these interactions and the leader’s ability to inspire, motivate, and support their
followers (Nandasinghe, 2020). This relational aspect of leadership is crucial as it encourages
leaders to be attuned to their followers' needs and feedback, thereby enhancing organizational
cohesion and performance (Leavy, 2023).

One theory that encapsulates the leader-follower approach in practical action is transformational
leadership, which asserts that leaders who engage and inspire their followers can achieve higher
performance and commitment (Nandasinghe, 2020). A significant strength of this approach is its
ability to create a motivated and supportive workforce (Rometty, 2023). By prioritizing
employee development and well-being, leaders can cultivate a positive organizational culture
that encourages innovation and high performance (Hodges, 2024). However, this approach can
be time-consuming and may not lead to immediate results, especially in a large and complex
organization like IBM (Kanter, R. M., & Cohen, J., 2017). Despite this, Rometty’s consistent
focus on this approach highlights its effectiveness in fostering long-term organizational success
(Leavy, 2023).

The context and contingency approach asserts that leadership effectiveness is contingent upon
various situational factors, such as the external environment and organizational challenges
(Fiedler, 1981). This approach assumes that there is no one-size-fits-all model for leadership;
instead, leaders must adapt their strategies to fit the unique circumstances they encounter
(Hersey, P., & Blanchard, K. H., 1969 ). It emphasizes the necessity for flexibility and
adaptability in leadership, encouraging leaders to be responsive to changes and to tailor their
strategies accordingly (Yukl, 2006).

A notable example of the context and contingency approach is the strategic shift towards new
growth areas like cloud computing and artificial intelligence in response to a rapidly changing
technology landscape (Leavy, 2023). Adapting strategies to stay competitive, informed by a keen
understanding of market trends, underscores the critical importance of flexibility and strategic
 5

foresight in leadership (Kotter, 2007). One strength of this approach is its ability to foresee
industry trends and align organizational resources and capabilities accordingly (Leavy, 2023).
This proactive adaptability helps organizations navigate and thrive in challenging environments
(Rometty, 2023). However, this approach requires a high degree of foresight and the ability to
manage significant organizational change, which can be daunting (Heifetz, R., & Linsky, M.,
2017). Despite these challenges, the context and contingency approach illustrates the importance
of being adaptable and strategically agile in ensuring effective leadership (Chakraborty, 2024).

To conclude, the leader-follower and context and contingency approaches highlight different yet
complementary aspects of leadership. The former focuses on relational dynamics and the mutual
influence between leaders and followers, while the latter emphasizes the need for adaptability
and strategic foresight in response to changing environments (Thomas, 2002). These approaches
underscore the multifaceted nature of effective leadership and its broader applicability in
contemporary organizational contexts (Britt, 2021).

2. Evaluation of leadership effectiveness/endorsement

a/ Effectiveness of Context and Contingency Approach

Ginni Rometty’s tenure at IBM exemplifies the principles of the context and contingency
approach, which posits that leadership effectiveness is highly dependent on situational factors
and the external environment (Fiedler, 1981); (Vroom, V. H., & Jago, A. G., 2007). Rometty's
leadership was marked by a strategic pivot towards cloud computing, artificial intelligence, and
data analytics (Leavy, 2023). These areas identified as essential for IBM's continued relevance
and competitiveness in a rapidly evolving tech industry (Khanna, 2022). This strategic shift was
not merely reactive but a proactive realignment of IBM's resources and capabilities to meet
emerging market demands (Oc, 2018). For instance, Rometty oversaw the acquisition of over 30
companies between 2012 and 2015, a move aimed at bolstering IBM’s competencies in high-
value segments (Jaleha, A. A., & Machuki, V. N., 2018). This decision underscores the context
and contingency approach's emphasis on situational awareness and strategic flexibility,
highlighting Rometty’s adeptness at navigating complex challenges (Vroom, V. H., & Jago, A.
G., 2007). By understanding and anticipating market trends, she ensured IBM's resilience and
 6

sustained growth, demonstrating how effective leaders adapt their strategies to fit unique
circumstances (Oc, 2018).

Rometty’s strategic adaptability extended beyond mere market responsiveness, it involved a

comprehensive restructuring of IBM’s business model to align with future technological
advancements (Rometty, 2023). Her leadership was instrumental in transitioning IBM from a
hardware-centric company to a pioneer in software and AI services (Carlson, 2022). This
transformation was not without its challenges; it required significant changes in organizational
structure, culture, and operational processes (Kanter, 2020). Her strategic foresight and proactive
adaptability were critical in positioning IBM as a leader in the tech industry, highlighting the
effectiveness of flexible and responsive leadership in managing industry-specific challenges
(Leavy, 2023). Moreover, Rometty's focus on data and analytics, as evidenced by her push for
cognitive computing and AI, aligns with the contingency theory's assertion that leaders must be
adept at leveraging available resources to meet organizational goals (Schermerhorn Jr, 2006).
This strategic alignment not only enhanced IBM’s market position but also pointed out
Rometty’s capability to steer the company through periods of significant change and uncertainty
(Lawrence-Hughes, 2017). Despite these achievements, it’s important to note that such extensive
transformations can strain organizational resources and may not yield immediate results,
reflecting a common limitation of the context and contingency approach (Kanter, 2020).

b/ Effectiveness of Transformational Leadership

Complementing her strategic adaptability, Rometty’s leadership was profoundly influenced by

transformational leadership principles, which emphasize the importance of inspiring and
motivating followers to achieve higher performance levels (Manu, 2022). Rometty’s
commitment to mentorship and engagement within IBM was a testament to her transformational
leadership style (Lartey, 2020). She fostered a culture of continuous learning and personal
development, encouraging employees to embrace innovation and take ownership of their
professional growth (Kanter, 2020). By promoting open communication and collaboration,
Rometty strengthened the relational dynamics within IBM, building a foundation of trust and
mutual respect among her team members (Shropshire, 2020). This relational aspect of leadership
 7

is crucial, as it encourages leaders to be attuned to their followers' needs and feedback, thereby
enhancing organizational cohesion and performance (Bass, B. M., & Riggio, R. E., 2006).

Rometty’s transformational leadership approach was particularly evident in her efforts to engage
employees at all levels, promoting a sense of collective purpose and shared vision (Northouse,
2021). Her ability to inspire and motivate her team was instrumental in driving IBM’s innovation
and high performance during her tenure (Smooth Succession: How IBM Set Records in the
Realm of CEO Transition, 2021). For example, her emphasis on employee development and
well-being helped cultivate a positive organizational culture that encouraged creativity and
problem-solving (Kanter, 2020). This approach aligns with the transformational leadership
theory’s assertion that leaders who engage and inspire their followers can achieve significant
organizational success (Burns, 2012).

However, transformational leadership also has its limitations. One potential drawback is that it
can be overly dependent on the leader's vision and charisma, which may not always align with
practical realities or the diverse needs of all employees (Yukl, 2006). Additionally, while
transformational leadership encourages high levels of motivation and engagement, it can
sometimes lead to burnout if employees are constantly pushed to achieve ever-higher goals
without sufficient support or resources (Tourish, 2013).Furthermore, the focus on a shared vision
might overshadow the importance of individual autonomy and diverse perspectives, potentially
stifling innovation and critical thinking (Banks et al., 2016).

c/ Gender/Ethnicity Discussion

As the first female CEO of IBM, Ginni Rometty’s leadership journey provides valuable insights
into the impact of gender and ethnicity on leadership effectiveness (Eagly, A. H., & Carli, L. L.,
2009). Historically, women in leadership positions often face greater scrutiny and higher
expectations compared to their male counterparts, which can pose significant obstacles
(Heilman, 2001). Rometty’s experience as a female leader in a predominantly male-dominated
industry presented unique challenges, including biases and stereotypes that could undermine her
authority and effectiveness (Ridgeway, 2011). Despite these challenges, Rometty’s leadership
journey illustrates how gender diversity can enhance leadership effectiveness (Ibarra, H., Ely, R.,
 8

& Kolb, D., 2013). Her approach, characterized by empathy, collaboration, and strategic
foresight, challenged traditional leadership norms and highlighted the importance of inclusive
leadership practices (Ragins, B. R., & Kram, K. E., 2007). Rometty’s capability to navigate these
gender-related challenges and effectively lead IBM through a period of significant
transformation underscores the potential benefits of diverse leadership perspectives (Ibarra, H.,
Ely, R., & Kolb, D., 2013).

While Rometty is not from an ethnic minority, her leadership experience still sheds light on the
broader context of diversity in leadership (Hunt, 2018). The author suggests that diverse
leadership teams, encompassing various genders, ethnicities, and backgrounds, can enhance
decision-making and innovation, as diverse teams bring varied perspectives and experiences
(Page, 2008). Rometty’s success at IBM demonstraes the importance of fostering diversity and
inclusion in leadership roles, which can enhance organizational resilience and innovation (Ely,
1996). By leveraging her unique perspective as a female leader, Rometty was able to drive
significant change within IBM, demonstrating the value of diverse leadership in navigating
complex organizational challenges (Ely, 2020). Additionally, her focus on creating an inclusive
and supportive work environment contributed to a more engaged and motivated workforce,
further highlighting the positive impact of gender diversity on organizational performance (Eby,
2020).

Rometty’s leadership at IBM exemplifies the principles of the context and contingency approach
and transformational leadership theory (Manu, 2022). Her experience as a female leader
highlights both the obstacles and benefits of diversity in leadership (Padavic, 2020). Rometty’s
tenure at IBM not only underscores her effectiveness as a leader but also illustrates the broader
applicability of these leadership concepts in contemporary organizational contexts (Northouse,
2021). Her power to navigate the complexities of the tech industry, inspire and motivate her
team, and foster a culture of inclusivity and creativity emphasizes the critical role of diverse and
adaptive leadership in achieving sustained organizational success (Rometty, 2023).

III. CONCLUSION & RECOMMENDATION

1. Conclusion
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Ginni Rometty's leadership at IBM serves as a compelling case study on the applicability of both
the context and contingency approach and transformational leadership in navigating complex
organizational challenges (Rometty, 2023). Her strategic adaptability and focus on mentorship
underscore the effectiveness of these leadership theories in driving sustained organizational
success (Northouse, 2021). The context and contingency approach, emphasizing situational
awareness and flexibility, enabled Rometty to steer IBM through significant technological shifts,
highlighting the importance of aligning leadership strategies with external conditions (Hoover,
2020). Simultaneously, her transformational leadership style, characterized by inspiring and
motivating employees, fostered a collaborative and innovative organizational culture, proving
critical in maintaining high performance and employee engagement (Hawkins, 2021).

For other leaders facing similar challenges, it is essential to adopt a hybrid approach that
integrates strategic adaptability with a focus on relational leadership (Wallo, 2022). Leaders
should develop a deep understanding of market trends and leverage this knowledge to
proactively realign their organizational strategies, ensuring resilience and competitiveness in
rapidly changing environments (Dagnino, 2021). Additionally, prioritizing employee
development and fostering an inclusive and supportive culture can significantly enhance
organizational cohesion and innovation (Kouzes, 2023). Embracing diverse leadership
perspectives can further enrich decision-making processes and drive creative problem-solving
(Page, 2008). Ultimately, the key takeaway from Rometty’s tenure is the critical role of adaptive
and inspirational leadership in navigating the complexities of contemporary organizational
landscapes and achieving long-term success (Nguyen, 2022).

2. Recommendations

To enhance her leadership effectiveness, Ginni Rometty could further integrate strategic
adaptability and transformational leadership principles into her approach (Martin, 2024). The
context and contingency approach emphasizes the importance of situational awareness and
flexibility, which were pivotal during Rometty’s tenure at IBM (Ibarra, 2023). Leaders should
constantly monitor market trends and proactively adjust strategies to align with evolving external
conditions (Grint, K., & Jones, O. S., 2022). Rometty should also establish cross-functional
teams dedicated to tracking and responding to industry changes, ensuring IBM remains agile and
 10

competitive (Dagnino, 2021). Furthermore, creating a robust feedback loop that leverages real-
time data can enhance decision-making processes and foster a culture of continuous
improvement (Kouzes, 2023). Establishing a dedicated innovation hub within the company could
further drive technological advancements and maintain IBM's position at the forefront of the
industry (O’Reilly III, 2021). By doing so, Rometty could ensure that IBM remains a leader in
innovation, leveraging the latest technological trends to stay ahead of competitors (Tidd, 2020).

Simultaneously, Rometty's focus on transformational leadership could be deepened by promoting

mentorship and employee engagement (Kim, 2020). This involves cultivating a culture that
encourages open communication, collaboration, and a shared vision among employees (Zaman,
2024). For instance, implementing a comprehensive mentorship program that pairs senior leaders
with emerging talent can facilitate knowledge transfer and professional growth (Manuel, 2021).
Additionally, fostering an inclusive environment that values diverse perspectives can enhance
creativity and problem-solving. Establishing employee resource groups (ERGs) focused on
various demographics can ensure diverse voices are heard and integrated into organizational
strategies (Nye, 2022). Leaders should also prioritize regular town hall meetings and feedback
sessions to maintain a transparent communication channel with employees, further strengthening
trust and engagement within the organization (Suh, 2022). Moreover, Rometty could expand
IBM’s existing professional development programs to include specialized training in emerging
technologies, thereby equipping employees with the skills needed to drive innovation (Boselie,
2024). By fostering an inclusive and supportive environment, Rometty can enhance employee
motivation and loyalty, leading to increased productivity and a more dynamic organizational
culture (Banmairuroy, 2022). The establishment of leadership development workshops focusing
on transformational leadership skills could also empower managers to inspire their teams more
effectively (Bro, 2020). Ultimately, the key takeaway from Rometty’s leadership at IBM is the
necessity of combining adaptive strategies with transformational leadership to navigate complex
organizational landscapes effectively (Dunn, 2020). This allows leaders to inspire their staff,
generate innovation, and maintain long-term success in an ever-changing sector (Kim, 2020).

IV. SELF-REFLECTION
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During a recent team project, the author faced challenges related to the leader-follower dynamic.
As the leader, the author aimed to coordinate efforts and ensure tasks were completed on time.
The writer approach involved setting clear goals, assigning specific tasks, and promoting open
communication (Northouse, 2021). However, some team members appeared unresponsive or
disengaged, leading to frustration and delays. While some appreciated the structure, others felt
micromanaged, which affected team cohesion and productivity (Boyatzis, 2013).

This experience underscored the importance of balancing direction with autonomy. The author
approach, though intended to enhance efficiency, may have stifled creativity and initiative,
which are crucial for team success (Northouse, 2021). Realizing that author leadership style
might have been too controlling and didn’t accommodate the diverse working styles of team
members (Boyatzis, 2013).

To improve, the writer need to adopt a more participative leadership style that encourages input,
shared decision-making, and respects individual preferences (Paais, 2020). This shift highlights
the need for flexibility in leadership and adapting to the team’s unique needs. Creating a balance
between clear direction and allowing autonomy is crucial for effective team management
(Nurmohamed, 2020).

To enhance future team functionality, the writer also plan to implement strategies that promote
inclusivity and shared leadership. Regular feedback sessions will ensure all team members feel
valued and heard (Zamani, 2020). Rotating leadership roles can distribute responsibility and
empower team members, fostering a sense of ownership and commitment. Collaborative
decision-making, through brainstorming sessions, will enhance engagement and buy-in (Döös,
2021).

Additionally, establishing an innovation hub within the team can drive continuous improvement
and stay ahead of industry trends. This approach aligns with the context and contingency theory,
emphasizing the importance of strategic flexibility and situational awareness (Nurmohamed,
2020). By valuing diverse perspectives, the author can enhance creativity and problem-solving
(Dugan, 2024). Prioritizing professional development will also equip team members with skills
to adapt to changes, and ensure long-term success in a dynamic environment (Crowley, 2022).
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VI. APPENDIX