IBM's Strategy

I often wonder whether the CEO's of large Fortune 500 companies create much additional shareholder value or basically just benefit from the strategy they inherit. This story in the NYT discusses the ten year period in which Samuel Palmisano was CEO at IBM. During that period he added $40 billion to market value, an increase of approximately 29 percent. 

Palmisano's success was achieved by recasting IBM's strategy in terms of four questions, according to the NYT:

1. Why would someone spend their money with you — so what is unique about you?
2. Why would somebody work for you?
3. Why would society allow you to operate in their defined geography — their country?
4. And why would somebody invest their money with you?

These four simple questions frame the key issues for any company and their strategy

1. Customer value proposition
2. Employee development
3. Contribution to society
4. Shareholder return

I would also point out that these themes are in order of priority. 

Probably the most elegant lesson in corporate strategy I have seen.