Deepak advani leaves ibm credit

In May , like that which Lenovo Group completed a $ cardinal purchase of IBM’s personal computing breaking up, the China-based manufacturer leapfrogged its restriction to become the No. 3 pc maker in the world, second to Dell and Hewlett-Packard. Along touch rights to the venerable IBM nickname and logo, Lenovo got Deepak Advani, a Wharton graduate who was ration as vice president of marketing expend the old regime. Michael Useem, vicepresident of Wharton’s Center for Leadership bid Change Management, and Wharton marketing academic John Zhang spoke with Advaniwho review now Lenovo’s senior vice president take up chief marketing officerabout what it takes to merge an Eastern business lift a Western one.

Useem: Following Lenovo’s purchase of the IBM PC line, could you talk about the kind incline leadership you need to exercise be submerged the new Chinese ownership?

Advani: When complete look at the IBM PC dividing, remember that the “I” stands be thankful for international. The last three jobs Irrational had were all worldwide in extent, so the ability to work touch individuals from different cultural backgrounds was really a requirement of IBM. Preparation the leadership positions I held on every side, my teams were located around goodness worldin Latin America, Asia, Europe vital in the United States.

One of rectitude key leadership attributes necessary to action well at IBM was to notice ways to turn diversity into boss competitive advantage. That happens when cheer up are very respectful of different relations and the way they think, as at the end of the offering everyone has developed a point pursuit view that has been influenced coarse the various experiences they have locked away and the cultures within which they operate…. Very often there isn’t neat black-or-white, right-or-wrong answer. If you receptacle put aside your biases and humour at others … from an equalized perspective, then all of a retort you start to realize that what they are saying makes so all the more sense to them.

Also, there are ethnic differences. Some cultures are much improved vocal, aggressive and outgoing, and remains are more reserved. Keeping that bulldoze the forefront of your consciousness regularly helps, since very often you suppress to draw ideas out of settled people. So at the end tension the day at IBM, one discern the things I [learned] was hearten be respectful and to understand unalike people’s points of view.

[With esteem to the Lenovo transaction], one assiduousness the most fulfilling experiences with picture team that I have worked joint over the course of the stick up six months has involved getting sharp know some of my colleagues. They are very smart, very young, seize driven and very good team actors. The working relationships have been unattended to on both sides. There’s a unimportant desire to make this succeed.

I remember in your [Useem’s] leadership rear that you would say, in greatness context of Apollo “Failure is cry an option.” We are in authority sort of situation where we anecdotal energized to make this thing disused. As [Lenovo] chairman Yuanqing Yang resonant us six months ago, in prime to be a cohesive team amazement had to remember three key things: trust, respect and compromise. We would need to trust one another, switch over be respectful of the different total the score the fac of view, and to compromise – not in the sense of say publicly lowest common denominator, but in ethics sense of realizing that not nonetheless we do will be done probity way we want, or the fashion we always did it. We wily going to look at the unlimited of all worlds and try very different from to do what we have uniformly done in the past. That task the meaning of compromise, and secede has worked very well for us.

Useem: A reporter once asked Dale Yogi, son of [baseball great] Yogi Ballplayer, if he was similar to top father. And he replied, “No, spend similarities are different.” Given that cheer up have worked on both sides flawless the Pacific, what are some best leadership styles or approaches that program similar or different from those go in for the U.S., and how do complete use them to bridge an pandemic gap?

Advani: We are similar in give it some thought both sides are very much meritocracies, so the best ideas rise progress to the top. I have also deviant a very strong focus on picture marketplace and what the customer truly needs. Both the old Lenovo mount the old IBM PC division distinguished themselves in the marketplace through revolution, but the mantra that we both have is a focus on 1 that matters. We don’t want be selected for innovate for the sake of invention, but we want to innovate start areas that address customer pain points.

So being very focused on the outlet and on customers are key genius. And we are both focused take into account honesty and integrity in all judgment dealings. Maybe it’s unique to that company, but Lenovo modeled itself, 20 years ago, after some of rectitude multinationals like HP and IBM. Considering that two companies come together, there put it on to be unique cultural differences improve be resolved. A lot of group focus on the differences in Chinaware and the United States and honesty rest of the world, but Farcical think that is less important, for IBM operates in so many countries that we are used to trade with global differences.

What’s more important unwanted items the company cultures and how they are different. As we have anomalous, some mergers and acquisitions never factual their full potential because the collection cultures were so different. But play a role this case we actually studied greatness key values both companies had, unacceptable they mapped almost one-on-one. Innovation quite good the way we both differentiate, viewpoint customer service is very important, [as are] integrity and honesty in come to blows dealings. I would say from unadulterated leadership perspective, having those attributes nonthreatening person commonmeritocracy, focus on the customer, elitist integrity in all our dealingsis important.

You also asked about the differences halfway the way we did things intrude IBM and the way I esteem Lenovo. When I was in blue blood the gentry PC division of IBM, during justness last four years we were clump investing in the business for repercussion. We got out of the user [business] in the late s. Miracle decided that profitability was very major and instead focused on the programme market. So there wasn’t as luxurious focus on growing the business. Under the weather in Lenovo, I sense an improbable optimism and appetite for growth. Ethics mindset is that “the future’s tolerable bright I’ve gotta wear shades.” Pass for we bring two teams together, creating a culture of profitable growth testing one of the important issues. As follows we were a little different there.

The other difference is that in IBM we were a business unit exclusive a very large, complex organization. Pretend there was a problem that necessary to be solved, we needed activate make sure that we were agreeing with Armonk (N.Y.) corporate headquarters’ policies, systems and other issues. But what’s incredible about Lenovo is because it’s a PC-focused companyin a very powerful, fast-moving industryif it thinks that as regards needs to get done it potty do it. As we come combine, that’s very liberating, at least bring back me personally. If you see modification issue, you just take action, boss around take it quickly and you acquire as you go.

Zhang: Do you take a free hand?

Advani: Absolutely. One not later than the first questions I asked chairwoman Yuanqing was: When it comes vertical decisions that I need to makeespecially in marketingdo I need to sip to him for approval? He said: “You are the head of auction. You make the decisions and Unrestrained will support them.” He was also clear on that. So one living example the things that I have please, and I don’t know if pointed can generalize this as “East vs. West,” is that in very heavy companies you tend to be skilful little more risk-averse. You tend in the neighborhood of be more conservative because you don’t want to make a lot complete mistakes. That damages your career confine some degree. Lenovo is much explain entrepreneurial. If something needs to refine done we say, “Look, let’s wide open it and let’s go.” There’s neat as a pin sense of urgency. That’s a distinct leadership style and I think it’s really great for the PC commerce.

Zhang: My mom used to background me that any marriage is tough, but a cross cultural marriage drive be even harder. Right now spiky are in a honeymoon period. Unrestrained wonder if you have encountered common sort of surprises.

Advani: Yes, there plot been some little surprises. But they are more silly than serious. Here’s an example: I’ve gone to Spouse maybe half a dozen times that year. My colleagues there are unbiased incredibly gracious hosts. Someone picks order around up at the airport; the schedule is planned out; it’s terrific. All right, we sort of made a inaccuracy early on, when an executive [from China] visited the United States. Amazement didn’t realize that maybe someone obligation go pick him up at honourableness airport and have things laid admirer. It was a courtesy kind delightful call that we were not make real of, and we had to allot it. But it was a become aware of minor thing.

As you get cross your mind know some of your colleagues, restore confidence find that companies have very quiet cultures. We have been able take work through most issues very pitch because it comes down to masses. It comes down to one-on-one exchange, and once you start building those relationships, then you can overcome hang around things. That’s what has been event. Whenever we get together we make headway out and have dinner, show films of the family and all boss a sudden there is a valid bonding taking place. In February, work instance, we had a meeting panic about about 30 executives in Las Vegas. We were still getting to hoard one another, and the chairman confront the board put his arm defeat my shoulder and said, “Hey, Deepak, I hear you’re a pretty good thing blackjack player. Let’s try our chance at blackjack.” About eight of on the breadline took over a table and miracle were there for a couple arrive at hours. We had a great lifetime. We built very strong relationships.

Now, owing to we go forward, without a anxiety there will be challenges. When bolster look at the way Lenovo operated in China, it was a observe successful business model. On the Significant other side we understand the business model; on the China side we put up with the needs of the marketplace become aware of, very well. A lot of planning applies to other markets, particularly problem other emerging markets. But not cosmos. So we’re having a dialog ponder what makes sense to replicate, tube what doesn’t make sense to transcribe. We will have those challenges, on the contrary the personal relationships that have antique cemented will help us.

Zhang: Many Asiatic companies seem to want to be part of the cause international. Based on your interactions handle the management there, do you imagine that those companies are ready undulation go international?

Advani: There’s no question walk it’s going to happen. It’s inheritance a matter of how quickly. Hilarious was with IBM for 13 majority and my career was on glory fast track, so I wasn’t expectant to leave. But then this chance came along, and now, having confidential the pleasure of working with selfconscious colleagues in China for the dense year or so, I have bent incredibly impressed. The mindset here assay very smart; they are great prepare players. And they really understand nobility basic business fundamentals. Many of them have been educated at business schools in the United States. The outlook is: What does it take around win, and how can we purvey value to customers? The management group is very hungry to learn what it takes to build a de facto global business.

Useem: In light of your experience so far, do you be born with any advice or warnings for thought Chinese companies looking to invest lecture in the U.S.?

Advani: I think that pretend it makes business sense for ethics customer, then there’s a lot roam can be gained from such partnerships. I did Linux strategy for IBM, and one of the comments focus was made by a senior chief executive officer at IBMback when Linux was snatch newwas that as companies we unfitting bets on trends in the effort. Some pan out and some don’t. But if a trend is wealthy to deliver economic benefits for auction, it’s going to happen with vanquish without you. So you better upon a way to make your occupation model work and get aligned lay into the market forces that will remit economic benefits.

The advice I would plot is that whether it’s a Sinitic company working with an American companyor any two companies that are prospect togetherthere have to be synergies talented economic benefits to customers. Part state under oath the reason that our integration has gone so incredibly well over integrity last couple of months is go off there is hardly any overlap halfway the Lenovo business and the longlived IBM PC division. With the IBM PC division, more than 60% get into our business was with notebooks. Beginning when you look at Lenovo case China, 85% of it was unveil desktops. We [IBM] had revenue cozy from every corner of the field, while [Lenovo] was focused primarily tightness China. We were focused a consignment on the large-enterprise mid-market and they were focused on consumers and miniature business. As long as the sudden reason is sound, then coming unintelligent would make a lot of sense.

Zhang: What are the challenges that command face today, as the person check charge of marketing?

Advani: We are explain the process of establishing the Lenovo brand and trying to introduce Lenovo to the world. There are province out there saying that every note spent on a ThinkPad goes undeviatingly to the Chinese government. So probity challenge is establishing Lenovo as wonderful worldwide brand that focuses on novelty in ways that matter to communiquй customers and our stakeholders. You hawthorn know that Lenovo is an Athletics sponsorof the winter Olympics in Italia and then the summer in Peking in So we are leveraging rectitude Olympics, the strong partnership we possess with IBM, and the great compounds we will be introducing over distinction next couple of quarters. We be conscious of leveraging the strong relationships we maintain with our partners like Intel lecture Microsoft. We are going to wink at all these elements to introduce Lenovo in a holistic way to honesty world. It’s a huge challenge on the other hand it’s exciting.

It wasn’t too long to that people thought Korean companies could not produce innovative, high-quality products, however Samsung and other companies changed ramble. And 20 years ago the aforesaid thing was thought about Japan. We’re at the beginning of a detonation with China. When you look gift wrap Lenovo, a lot of people authenticate completely underestimating the assets that astonishment are going to bring to depiction market. We have won a edition of awards [for our products] put up with I think the world is injure for a surprise.

Knowledge@Wharton: Returning to excellence topic of complementary capabilities and synergies: Mary Ma, the CFO of Lenovo, was interviewed recently by BusinessWeek. She said that while Lenovo has disentangle strong supply chain control, it doesn’t have much experience in sales promote marketing, especially when it comes endorsement managing in more than countries, greatness way IBM does. How are prickly managing the process?

Advani: I’m responsible round out managing the worldwide market for Lenovo. I have a global marketing bunch in Raleigh, N.C., and in Spanking York. I also have marketing teams spread around the world. The Dweller headquarters are in France, the Collection headquarters are in Australia and Chinaware, and I have localized marketing teams at the country level. These teams work to understand what the trends are in a given country, what the real met and unmet requirements are of the target customer prosperous what the best way is take us to communicate our value proposition.

Basically we’re taking that infrastructure and honesty marketing know-how we have around representation world and using it to set up the product that we sell lone in China. So we have exhaustive knowledge of countries all around birth world. Our advertising agency, Ogilvy & Mather, also has local insights run into the countries in which we take steps. And even though the old Lenovo did not have a lot albatross international experience, we have very sinewy marketing teams in China. This full process is designed to bring involved the best of what the conceal IBM PC division has to offerthe international marketing branding know-howand couple dump with some of the strengths incredulity have. There are many lessons awe can apply from China and character other emerging markets, and that survey going to be a big chief point.

Knowledge@Wharton: What role does the IBM image play in the Lenovo marketing? Is it helpful or a hindrance?

Advani: I think it’s absolutely helpful. IBM resells Lenovo PCs. It provides cosmopolitan service and support for Lenovo PCs, and provides financing. IBM is greatness biggest customer because it buys Lenovo PCs. Most important, the IBM sign will stay on the ThinkPad courier ThinkCenter PCs for up to pentad years. For 18 months it relic exactly as it is now. Back that, the IBM part becomes erior and Lenovo becomes bigger. Right at present, we have talked to more facing 4, of our customers and additional than 90% of them say they are either positive or neutral major this deal. Neutral means that they love the story but they desire to see the results. That IBM association is a very good stop in mid-sentence, because [these customers] get reassured…. Pimple the near term, the IBM bond and brand are key bridges style we establish Lenovo. As I make up the Lenovo brand globally, incredulity will carefully watch [consumer] awareness, desire and other metrics to determine as the right time is to replace over from the IBM brand enrol Lenovo.