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John Fellows Akers

December 15, 2023

John Fellows Akers (December 28, 1934 – August 22, 2014) was an American businessman. He was president (1983-1989), chief executive officer (1985-1993) and chairman (1986-1993) of IBM.[1]

Education edit

Akers attended Yale, and while there became a brother of Delta Kappa Epsilon (Phi chapter).

IBM edit

Akers joined IBM in 1960 after serving in the Navy as a jet pilot.[2]

Akers said in 2010 “We were very square. We wore the blue suits, white shirts with button-down collars, striped ties, fedoras and wingtip shoes. The customers felt they could count on us.”[2]

Akers became CEO in 1985. He benefitted from the support of one of his predecessors, Frank Cary.[3] In 1989, a young Sam Palmisano was appointed as Aker's assistant; decades later Palmisano would serve as chairman and CEO.[4] Akers was chief executive during IBM's decline in the mid-1980s and early 1990s. Apple Inc. founder Steve Jobs described Akers as "smart, eloquent, fantastic salesperson, but he didn’t know anything about product.”[5]

Akers was credited with simplifying the company's bureaucracy to focus more on profits.[6] On January 29, 1988, in a sweeping restructuring intended to reverse three years of disappointing performance, Akers created five new, highly autonomous organizations responsible for all of the company's innovation, design, and manufacturing. The moves were intended to greatly decentralize the company, which had been seen as bloated and unable to keep up with the competition and give significantly more responsibility to a younger generation of managers, while significantly reducing the role of the company's Armonk, N.Y., headquarters in the day-to-day operations. Under the plan, thousands of employees had to switch jobs or find themselves working for new managers.[7] Akers' vision was to autonomize each division into "Baby Blues" with the aim of spinning them off from "Big Blue".[8]

Akers also presided over a major downsizing of IBM's workforce, cutting down from 407,000 to 360,000 by the end of 1991. The company had previously had a lifetime employment policy but successive voluntary buyouts and the first-ever layoff in March 1993, caused a morale crisis.[9] Akers also closed ten plants and trimmed manufacturing capacity by forty percent.

Retirement edit

On Tuesday, January 26, 1993, Akers was forced to announce his resignation, after several months of IBM insisting that it had full confidence in his leadership.[6] The company had posted a $5 billion annual loss.[10] The dividend was also slashed from $1.21 to 54 cents, after the company had failed to make enough profit to cover its dividend payments for eight business quarters. IBM president Jack Kuehler was shifted to the post of vice-chairman, while finance director Frank Metz was also ousted. Paul Rizzo, a rival with Akers for the CEO position back in 1985 who had retired in 1987 was restored to the post of vice-chairman and appointed finance director. Akers remained as chief executive for three months while a committee of directors chose a successor, long speculated to be an outsider.[11] Akers retired as chairman and CEO of IBM on April 1, 1993. He was succeeded in both positions by Gerstner,[12] the first CEO in IBM's history to attain the position from outside the company.

The management coup was mounted by longtime IBM director Jim Burke,[13] who organized secret meetings between Rizzo and outsider Louis V. Gerstner, Jr. to examine the company's problems.[8] It was also speculated that several entities were dissatisfied with losing their power on the board of directors and the declining stock price, including the banks which were once IBM's largest shareholders, as well as Aker's predecessors as CEO, John Opel and Frank Cary.[6] The company's difficulties weren't caused by Akers alone, as some suggested that he was merely doing what he had been "programmed" to do by an outdated "IBM system",[6] while a complacent board of directors was also blamed.[14][15][16]

Other business roles edit

Akers was on the board of directors of Lehman Brothers when it filed for bankruptcy.

Personal edit

Akers died of a stroke at age 79 in Boston, Massachusetts on August 22, 2014.[17]

References edit

Notes
  1. ^ Rick Rojas and Steve Lohr (August 23, 2014). "John F. Akers, 79, Dies; Led IBM as PCs Ascended". New York Times. Retrieved June 11, 2020.
  2. ^ a b "Former CEO John Akers: An Appreciation". IBM.
  3. ^ Bob Djurdjevic. "Akers: The Last Emperor (June 1991)". Djurdjevic.com. Retrieved 2014-07-28.
  4. ^ Timothy Prickett Morgan (7 November 2011). "Ex-IBM CEO John Opel dies aged 86". The Register.
  5. ^ Robert McMillan (2011-10-05). "Steve Jobs: HP Implosion Was an iTragedy | Enterprise". WIRED. Retrieved 2014-07-28.
  6. ^ a b c d Bob Djurdjevic (1993-01-26). "Akers: A Nice Guy Who Lost His Compass (Jan 1993)". Djurdjevic.com. Retrieved 2014-07-28.
  7. ^ "A Broad Decentralization at I.B.M." www.krsaborio.net. Archived from the original on 4 August 2012. Retrieved 2 February 2022.
  8. ^ a b Maria Pikalova. . GOOD2WORK. Archived from the original on 2014-08-08. Retrieved 2014-07-28.
  9. ^ http://www.cbronline_com/news/the_unkindest_cut_of_all_akers_blots_the_escutcheons_of_fired_ibm_employees[permanent dead link]
  10. ^ Lohr, Steve (1993-01-20). "I.B.M. Posts $5.46 Billion Loss for 4th Quarter; 1992's Deficit Is Biggest in U.S. Business". The New York Times. Retrieved 2017-03-25.
  11. ^ LARRY BLACK in New York (1993-01-27). "IBM fires Akers and slashes dividend - Business - News". The Independent. Retrieved 2014-07-28.
  12. ^ "IBM names RJR Nabisco's Gerstner as new CEO". UPI. Retrieved 2020-01-29.
  13. ^ Vanourek, Bob; Vanourek, Gregg (October 8, 2012). . Triple Crown Leadership. Archived from the original on 19 November 2015. Retrieved 5 January 2018.
  14. ^ Bob Djurdjevic. "Akers: The Last Emperor? (June 1991)". Djurdjevic.com. Retrieved 2014-07-28.
  15. ^ "THE HUNT FOR MR. X: WHO CAN RUN IBM? With CEO John Akers out, the hardest job in all corporate America is suddenly open. Here's how Akers went -- and what his successor must do. - February 22, 1993".
  16. ^ "KING JOHN WEARS AN UNEASY CROWN with uprisings at GM and American Express in their face, and with IBM hemorrhaging, Big Blue's directors must decide the future of CEO John Akers. - January 11, 1993".
  17. ^ New York Times' John F. Akers led IBM as PCs ascended'
Bibliography

External links edit

  • IBM biography of Akers
Business positions
Preceded by CEO of IBM
1985–1993 		Succeeded by

December 15, 2023
john, fellows, akers, december, 1934, august, 2014, american, businessman, president, 1983, 1989, chief, executive, officer, 1985, 1993, chairman, 1986, 1993, contents, education, retirement, other, business, roles, personal, references, external, linkseducati. John Fellows Akers December 28 1934 August 22 2014 was an American businessman He was president 1983 1989 chief executive officer 1985 1993 and chairman 1986 1993 of IBM 1 Contents 1 Education 2 IBM 2 1 Retirement 3 Other business roles 4 Personal 5 References 6 External linksEducation editAkers attended Yale and while there became a brother of Delta Kappa Epsilon Phi chapter IBM editAkers joined IBM in 1960 after serving in the Navy as a jet pilot 2 Akers said in 2010 We were very square We wore the blue suits white shirts with button down collars striped ties fedoras and wingtip shoes The customers felt they could count on us 2 Akers became CEO in 1985 He benefitted from the support of one of his predecessors Frank Cary 3 In 1989 a young Sam Palmisano was appointed as Aker s assistant decades later Palmisano would serve as chairman and CEO 4 Akers was chief executive during IBM s decline in the mid 1980s and early 1990s Apple Inc founder Steve Jobs described Akers as smart eloquent fantastic salesperson but he didn t know anything about product 5 Akers was credited with simplifying the company s bureaucracy to focus more on profits 6 On January 29 1988 in a sweeping restructuring intended to reverse three years of disappointing performance Akers created five new highly autonomous organizations responsible for all of the company s innovation design and manufacturing The moves were intended to greatly decentralize the company which had been seen as bloated and unable to keep up with the competition and give significantly more responsibility to a younger generation of managers while significantly reducing the role of the company s Armonk N Y headquarters in the day to day operations Under the plan thousands of employees had to switch jobs or find themselves working for new managers 7 Akers vision was to autonomize each division into Baby Blues with the aim of spinning them off from Big Blue 8 Akers also presided over a major downsizing of IBM s workforce cutting down from 407 000 to 360 000 by the end of 1991 The company had previously had a lifetime employment policy but successive voluntary buyouts and the first ever layoff in March 1993 caused a morale crisis 9 Akers also closed ten plants and trimmed manufacturing capacity by forty percent Retirement edit On Tuesday January 26 1993 Akers was forced to announce his resignation after several months of IBM insisting that it had full confidence in his leadership 6 The company had posted a 5 billion annual loss 10 The dividend was also slashed from 1 21 to 54 cents after the company had failed to make enough profit to cover its dividend payments for eight business quarters IBM president Jack Kuehler was shifted to the post of vice chairman while finance director Frank Metz was also ousted Paul Rizzo a rival with Akers for the CEO position back in 1985 who had retired in 1987 was restored to the post of vice chairman and appointed finance director Akers remained as chief executive for three months while a committee of directors chose a successor long speculated to be an outsider 11 Akers retired as chairman and CEO of IBM on April 1 1993 He was succeeded in both positions by Gerstner 12 the first CEO in IBM s history to attain the position from outside the company The management coup was mounted by longtime IBM director Jim Burke 13 who organized secret meetings between Rizzo and outsider Louis V Gerstner Jr to examine the company s problems 8 It was also speculated that several entities were dissatisfied with losing their power on the board of directors and the declining stock price including the banks which were once IBM s largest shareholders as well as Aker s predecessors as CEO John Opel and Frank Cary 6 The company s difficulties weren t caused by Akers alone as some suggested that he was merely doing what he had been programmed to do by an outdated IBM system 6 while a complacent board of directors was also blamed 14 15 16 Other business roles editAkers was on the board of directors of Lehman Brothers when it filed for bankruptcy Personal editAkers died of a stroke at age 79 in Boston Massachusetts on August 22 2014 17 References editNotes Rick Rojas and Steve Lohr August 23 2014 John F Akers 79 Dies Led IBM as PCs Ascended New York Times Retrieved June 11 2020 a b Former CEO John Akers An Appreciation IBM Bob Djurdjevic Akers The Last Emperor June 1991 Djurdjevic com Retrieved 2014 07 28 Timothy Prickett Morgan 7 November 2011 Ex IBM CEO John Opel dies aged 86 The Register Robert McMillan 2011 10 05 Steve Jobs HP Implosion Was an iTragedy Enterprise WIRED Retrieved 2014 07 28 a b c d Bob Djurdjevic 1993 01 26 Akers A Nice Guy Who Lost His Compass Jan 1993 Djurdjevic com Retrieved 2014 07 28 A Broad Decentralization at I B M www krsaborio net Archived from the original on 4 August 2012 Retrieved 2 February 2022 a b Maria Pikalova How IBM Board Member Jim Burke Persuaded Gerstner to Put His Career At Stake GOOD2WORK Archived from the original on 2014 08 08 Retrieved 2014 07 28 http www cbronline com news the unkindest cut of all akers blots the escutcheons of fired ibm employees permanent dead link Lohr Steve 1993 01 20 I B M Posts 5 46 Billion Loss for 4th Quarter 1992 s Deficit Is Biggest in U S Business The New York Times Retrieved 2017 03 25 LARRY BLACK in New York 1993 01 27 IBM fires Akers and slashes dividend Business News The Independent Retrieved 2014 07 28 IBM names RJR Nabisco s Gerstner as new CEO UPI Retrieved 2020 01 29 Vanourek Bob Vanourek Gregg October 8 2012 The Legacy of Jim Burke Triple Crown Leadership Archived from the original on 19 November 2015 Retrieved 5 January 2018 Bob Djurdjevic Akers The Last Emperor June 1991 Djurdjevic com Retrieved 2014 07 28 THE HUNT FOR MR X WHO CAN RUN IBM With CEO John Akers out the hardest job in all corporate America is suddenly open Here s how Akers went and what his successor must do February 22 1993 KING JOHN WEARS AN UNEASY CROWN with uprisings at GM and American Express in their face and with IBM hemorrhaging Big Blue s directors must decide the future of CEO John Akers January 11 1993 New York Times John F Akers led IBM as PCs ascended BibliographyGerstner Jr Louis V 2002 Who Says Elephants Can t Dance HarperCollins ISBN 0 00 715448 8 AKERS John Fellows International Who s Who accessed September 3 2006 External links editIBM biography of AkersBusiness positionsPreceded byJohn Opel CEO of IBM1985 1993 Succeeded byLouis V Gerstner Jr Retrieved from https en wikipedia org w index php title John Fellows Akers amp oldid 1168894691, wikipedia, wiki, book, books, library,

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