1. How would you describe Rometty’s approach to output control? Provide several examples to support your view. 

2. How would you describe Rometty’s approach to behavior control? Provide several examples to support your view. 

3. What factors should IBM’s CEO and other senior managers take into consideration as they shift the focus of the organization going forward? What type of organizational changes do you think could be implemented as part of the plan?

IBM has been in a slump for years. Its sales for 12 straight quarters have fallen from the year-earlier quarter. Virginia Rometty has spent three years as CEO of IBM trying to revamp slowing businesses like big computers and licensed software. She has shifted toward higher-growth markets, like “cloud” technologies to manage companies’ operations over the Web and mobile devices. However, many of IBM’s older businesses continue to drag, and divesting some of them has reduced overall revenue.

Despite the obstacles, Ms. Rometty is implementing a fundamental shift, turning IBM into a company that competes where it isn’t in a position of strength, such as mobile devices. Also, she wants to increase IBM’s strengths. For example, analytics are an IBM strong suit that plays well in the era of “big data,” the floods of information that companies collect and parse for profits. Ms. Rometty wants to expand that advantage into many industries. She wants more than 40% of IBM’s revenues in 2018 to be from corporate markets in analytics, cloud computing, cyber security, social networking, and mobile technologies. In addition, she has made four major divestitures, taking charges for laying off workers. The company's head count has shrunk 12% to 380,000 during her tenure.