Introduction

> Running a company for the long term requires making tough decisions, even if they are unpopular. Sacrifices are necessary for enduring success, whether it's restructuring teams or changing strategies. It's about focusing on the future, not solely on being liked.

> Being a leader isn't about winning a popularity contest, especially during crises. The key is prioritizing what's best for the organization in the long run, even if it means making difficult choices that others may not understand at the time.

IBM

> Reflecting on my time at IBM, I realized that "the biggest challenges are not in running them, it's in changing them." It became essential to identify what should endure while also modernizing our practices, allowing us to remain a crucial player in the world by providing "mission critical work."

> Another critical lesson I learned was about speed in a large organization where bureaucracy can slow us down. I often said, "if I didn't do something to change how work was done," we wouldn't keep pace with the industry's rapid evolution. Implementing agile methodologies was not just a buzzword for us; it was a comprehensive approach that required "training hundreds of thousands of people" to embrace a new way of working at scale.

> Lastly, leading a company like IBM sometimes demanded making tough decisions for the long-term good, even when they were unpopular. I understood that, "it's not a popularity contest," but rather a commitment to ensure we continue "to be essential" in an increasingly complex and changing digital landscape.

Hiring

> Over the years, my perspective on hiring has dramatically evolved. Initially, I focused on expertise, but I realized that willingness to learn and curiosity are far more crucial. I learned that experts often resist change, which is a problem in a dynamic industry. Thus, adopting a skills-first approach, emphasizing potential over formal education, can open up new talent pools and address workforce gaps.

> Successful change within a company stems from a culture of continuous learning. During our transition to cloud and AI at IBM, the real winners were those who embraced learning from each other and adapted. This hands-on experience solidified my belief that promoting, hiring, and paying based on skills and willingness to learn is key to navigating future uncertainties, especially in fields like AI where the landscape is ever-changing.

Leadership

> When it comes to leadership, finding the balance between showing the way and letting people find their way is crucial. Role modeling values, especially during tough decisions, and demonstrating a commitment to learning are keys to effective leadership. So, in essence, it's about showing values and relationships with clients and role modeling continuous learning.

> Preparing thoroughly for moments allows me to be fully present and listen deeply, enhancing my ability to help the situation at hand. This practice originated from early experiences as the only woman in engineering school, prompting a strong desire to understand things deeply rather than just memorize. Ultimately, preparation not only boosts my confidence but also enables me to focus on the present moment and offer meaningful contributions.

Hard work

> Hard work has always been a cornerstone of my life; I find joy in it and believe it’s rooted deeply in my upbringing. "Hard work is how you are sure you can always take care of yourself," a lesson that resonates from my great-grandmother to my mother, who taught me valuable skills and the importance of education amidst challenges.

> I've learned that power often has a negative stereotype associated with it, but my experience shows that "you need power to do good." Understanding this helps me appreciate my journey — not just for myself but for broader societal impact, and it reaffirms my belief that hard work can lead to meaningful change.

Adversity

> Overcoming adversity played a pivotal role in my journey. "Growth and comfort never coexist," a profound lesson from my husband, profoundly shaped my leadership approach. It's about embracing uncomfortable challenges and realizing that difficult experiences can inspire resilience and personal growth.

> Meeting my husband at 19 was a life-changing event. While on a scholarship from General Motors at Northwestern University, living in humble conditions near a cement plant, a serendipitous blind date led to meeting my life partner. His unwavering support has been instrumental in my career and personal life.

Power

> Good power is about embracing tension, respecting others, and celebrating progress rather than perfection. It's about choosing to do meaningful work in a positive way.

> The ultimate definition of good power is doing something for society, focusing on the results and how things are done. Collaboration and empathy play key roles in achieving this.

> Surrounding oneself with honest and diverse perspectives is crucial in avoiding the corrupting nature of power. Diversity, including various viewpoints and backgrounds, leads to better outcomes both professionally and personally.

Sacrifice

> Reflecting on my experiences as a CEO, I've always believed in the necessity of balancing the interests of multiple stakeholders over just focusing on shareholders. "If you're gonna be a hundred years old, you only get there because you actually do...balance all these different stakeholders," and that often means navigating through a gray world filled with complex decisions that go beyond simple right or wrong.

> Moreover, the essence of forming lasting relationships with clients lies in consistent integrity and honoring commitments. "You say what you do and you do what you say," and it's about acting on values that have been cultivated over decades. For me, truly understanding your purpose and principles shapes the foundation of a prosperous business, and it's something I would prioritize if I were starting a company today.

Taking over as CEO

> Taking on the role of CEO during IBM's crucial period was immensely challenging. The urgency to reinvent the company was paramount, and I always felt the pressure to perform for our clients, employees, and shareholders. "If we didn't reinvent ourselves, we were gonna be extinct," and navigating this transformation while keeping the company afloat was like "changing the wheels while the train's running."

> The acquisition of Red Hat was a pivotal moment. "We had to take a short-term hit for a very large $34 billion acquisition," but it laid the foundation for IBM's hybrid cloud strategy, which has been crucial for our success today. It was essential to find our way in the cloud space even though we were late to it, and this move ensured IBM's relevance in its second century.

> The purchase of PwC's consulting arm in 2002 was another significant turning point. Balancing the integration of a private firm into our public structure and ensuring the new team felt valued and motivated was tough. "You acquire hearts, not parts," and navigating this transition taught me that persistence and belief in our vision were crucial. We turned a challenging situation into a major success, growing the business considerably over the years.

> Throughout my leadership journey, I learned that unwavering conviction and adaptability are key. Even when facing criticism and setbacks, knowing that "you're doing what has to be done" and having a team that believes in the vision is vital. It's about perseverance and not giving up, as taught by the lessons from our consulting acquisition, where we had to keep changing our approach until we found the right formula for success.

Negotiating

> One key insight I shared was about successful negotiations being a win-win situation, where both parties focus on long-term success for everyone involved. Pushing too hard can lead to regrets, so collaboration and empathy are essential for lasting relationships.

> Another important point I discussed was the value of experiential learning and staying connected to hands-on work, even as a CEO. It's crucial to understand things firsthand and not be afraid to get involved to build intuition and a deeper understanding of the business.

Deep Blue vs Garry Kasparov

> Reflecting on the Deep Blue match against Kasparov, it's clear that it was more than just a triumph of computation; it was a pivotal moment that catalyzed the public's understanding of AI. "To see a machine be able to beat a human... maybe the human mind is just algorithms," I realized then how vital our perception of intelligence is in this technological landscape.

> Looking ahead, we must acknowledge that as AI evolves to exhibit human-like emotions and capabilities, we face crucial ethical questions about their roles in society. "This puts a mirror to ourselves," reminding us of how we treat one another and illuminating the importance of responsibly guiding technology's use and its implications for humanity.

IBM Watson

> Working with Watson was a transformative journey. It wasn't just about technological advancements, but also about humanizing AI by demonstrating capabilities like natural language understanding and reasoning over vast data. Watson’s initial challenges and subsequent successes in healthcare taught me invaluable lessons about the essence of human change management and building trust gradually.

> The ethics and transparency surrounding AI have always been crucial to me. Throughout my career, I've championed principles like transparency and explainability, advocating that AI should be clear about who programmed it, the data used, and how decisions are made. We need to ensure that people trust and understand the technology that will inevitably shape our futures.

> On a personal level, grappling with imposter syndrome is something I’ve experienced and worked to overcome through self-belief and focusing on the work. Rather than being confined by societal expectations or constraints regarding gender, I’ve always chosen to define myself and encourage others to do the same, navigating challenges with resilience and determination.

> Role models play a crucial role in inspiring others, and I’ve embraced the responsibility of being one, especially in guiding diverse and underrepresented groups. Promoting diversity and advocating for equitable opportunities have been key aspects of my work, demonstrating that success is possible for anyone through hard work and dedication.

Work-life balance

> Choosing not to have children allowed me to focus on my career, but I deeply respect and admire those who balance work and family. It inspired me to create policies like returnships to support people's return to work after family leave, ensuring great talent stays in the workforce.

> Building relationships and supporting one another is essential in facing challenges. My friendships with other women CEOs, like Mary Barra, have been invaluable. We exchange wisdom and support each other, believing in the power of giving in relationships and mentoring the next generation to reach positions of leadership.

Advice for young people

> A life you can be proud of is about “leaving something a little bit better” than you found it; it doesn’t have to be monumental. I’ve learned that the key is to focus on growth—be a sponge who asks more questions and embraces childlike curiosity.

> I also believe in the value of patience; life unfolds in surprising ways if you let it. My husband’s insight reminds me that we often rush towards an unknown destination, but taking the time to appreciate the journey can lead to unexpected, fulfilling places.