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The W. Edwards Deming Center for Quality, Productivity, and Competitiveness Deming Cup Award Dinner 2010 The W. Edwards Deming Center for Quality, Productivity and Competitiveness, awarded Samuel Palmisano, Chairman, President and CEO of IBM Corporation the first Deming Cup. The award was given to Sam for his ability to drive IBM to new levels of operational excellence and for his role in creating and leading IBM’s Global Services business unit. The inaugural Deming Cup Award Dinner Besnainou, CEO of Areva North America took place on October 18, 2010 at were among the attendees. Columbia University’s Low Rotunda from 6 to 9 pm. Columbia Business School alumni, faculty and current students from the MBA, EMBA Sixteen members of the Judging and PhD programs also joined the dinner. Committee were able to attend: Rob Total attendance was in excess of 200 Amen, Tom Cole, Awi Federgruen, Beth people. Ford, Nelson Fraiman, Tom Groos, Richard Jaffe, Jeff Keefer, Shelly Lazarus, David Sam Palmisano, who attended the Niles, Bennett Nussbaum, Paul O’Neill, ceremony accompanied by close family Ginni Rometty, Burt Steinberg, David and friends, was honored to receive the Thurm and Garrett van Ryzin. We are inaugural Deming Cup. “On behalf of grateful for their attendance and support IBMers around the world, I am deeply and encourage the rest of the committee honored to receive the inaugural Deming to do so next year. In addition Ken Peak, Cup, which embodies the Deming Center’s CEO of Contango Oil & Gas, Terry pioneering effort to understand and Lundgren, CEO of Macy’s, Linda Sanford, advance operational excellence in a SVP of IBM, Ernie Higa, Chairman and CEO globally integrating world” Shelly Lazarus of Higa Industries, John Dillon, former CEO introduced Sam before the award was of International Paper, Jim Wiseman, VP of given. The full texts of Sam’s and Shelly’s Toyota Motor North America and Jacques remarks at the dinner are given below. 1 | P a g e The W. Edwards Deming Center for Quality, Productivity, and Competitiveness Photo highlights from the Award Dinner: Sam Palmisano receives the award. In this picture: Nelson Fraiman, Tom Cole, Sam Palmisano, Paul O’Neill and Rob Amen (from left to right) Sam Palmisano with his son Christopher, his wife Tiffany’s cup for the Deming Cup winner 2010 Missy, and his son Sam (from left to right) 2 | P a g e The W. Edwards Deming Center for Quality, Productivity, and Competitiveness Nelson Fraiman welcomes Sam Palmisano Shelly Lazarus and Rob Amen From left to right: Peter Longo (President Macy’s Logistics & Operations), Tom Cole (CAO Macy’s and Chair Deming Center Advisory Board, Columbia Business School) and Terry Lundgren (CEO Macy’s) Paul O’Neill and Jill Schurtz (CEO, Robeco-Sage Deming Center team: Paula Pontiliano, Nelson investment) Fraiman, and María José Quinteros (from left to right) 3 | P a g e The W. Edwards Deming Center for Quality, Productivity, and Competitiveness From left to right: Jacques Besnainou (CEO AREVA Jack Flynn, Linda Sanford (SVP, IBM), and Rob North America), Guillaume Moyen (EMBA’11), and Amen (from left to right) Karim Vissandjee (SEVP AREVA) Cocktail hour transformation From left to right: Rob Amen, Tom Groos, and Clark Garrett van Ryzin and Nancy Degnan (CERC) Winter (CEO, Winter Enterprises) 4 | P a g e The W. Edwards Deming Center for Quality, Productivity, and Competitiveness Ken Peak (Founder, Chairman, and CEO Contango Oil From EMBA program: Nicole Howard, Michelle De & Gas), Nelson Fraiman, and Dana Ungermannova Feo, Marlaina Norris, Gretchen Meyer and Franziska Hummel Dinner in Low Rotunda Eitan Zemel (New York University) and Paul Jeff Keefer and Hashimoto-san (General Manager, Glasserman (Columbia Business School) IBM Japan) 5 | P a g e The W. Edwards Deming Center for Quality, Productivity, and Competitiveness Shelly Lazarus remarks to introduce Sam Palmisano for the Deming Cup Award I am so happy to be the person society. Operational excellence in the introducing Sam Palmisano as he accepts service of a better world. the first Deming Cup. Sam’s brief to us, the communicators, In my business, there’s an old saw that then was simple. If we could articulate says, “Clients always get the work they the aspiration, paint the vision, inspire deserve.” What I have come to know is with words and pictures, portray the that Sam is a great client. From the first ambition that could get everyone to moment I met him at lunch at Michael’s, I believe and contribute… then it could be had hardly sat down when he said, done. “You’ve got to help me to sell more servers.” (Talk about a clear brief!) And We had the easy part. I love the phrase, then I think more recently to the “Says easy. Does hard.” The articulation conversations we started having a couple wasn’t hard. “Smarter Planet” was merely of years ago…conversations that turned a summary, a moment of insight, on the question of where IBM was going describing what IBM was actually doing. and what its mission was in the long term. We didn’t have to make it up. We just had to take the reality and set it to words. IBM was already viewed as a great technology company. But Sam knew it But then came the hard part… the IBM was more than that. He wanted IBM to be part……. the delivering every day part… seen as one of the great companies in the putting the promise into action. world…one that was changing lives, creating futures, making the world a Fortunately, Sam Palmisano is better place; because, in fact, that’s what undauntable. (And if that isn’t a word it the 400,000 people of IBM were doing. should be because it fits him to a tee). He adopted Smarter Planet as IBM’s vision The ambition was there. The potential and its promise in Fall 2008 – at the height was there. IBM was capable of anything. of despair. There were days when IBM The key was to take all the potential and was just about the only advertiser in the make it operational. Take the culture of Wall Street Journal. quality, of operational excellence, of “we can figure this out” and put it all to work But Sam was determined to start down to solve the problems of the world. the path as soon as there was agreement that this was indeed the path……… Deming would have loved IBM during undauntable. these Palmisano years. Transforming a company to meet the future needs of 6 | P a g e The W. Edwards Deming Center for Quality, Productivity, and Competitiveness His conviction was absolute that Smarter IBM is my best new business tool. Not a Planet was not just a metaphor, but a real day goes by when I don’t get a call from description of what was happening. By some CEO who says, “I want a Smarter virtually every measure, our planet was Planet. I need a Smarter Planet.” At first, getting more integrated, more I thought they were on the “good for interconnected and more intelligent… with humanity” plane. Yes, indeed, we all could better systems, with better ways of use a smarter planet. working everywhere – from clean energy to healthcare to government – our planet But I have come to know that what they could indeed be smarter at tackling the really mean is that each wants his own big challenges of this century…And this was a fat motivating organizing idea; his or her movement that IBM could lead. Should own big organizational ideal. Something lead. Had to lead. You might almost call an organization can strive for, be proud of. it destiny… We now find ourselves in a place where practical business people all over the Here’s another thing that’s remarkable world are in search of higher purpose, about Sam………. He demands operational inspired by “Smarter Planet,” inspired by excellence, but he never forgets that it is IBM, inspired by Sam. people who get the job done. High ideals, big aspirations mean nothing unless Do you think Sam Palmisano has had people are open to new ways of working impact beyond IBM? I’d say so. and thinking. Sam re-oriented a massive organization to deliver real solutions for And yet Sam remains Sam. He is real people with real needs in the real completely authentic. No pretense. There world. From theories and models to is nothing fake. He says what he thinks operations and practice. From selling stuff and feels. When he’s mad, he’s mad. to making the world better! Sam changed When he’s happy, he’s happy. When the context, and under his leadership this something is stupid, he says so. It’s so massive enterprise, the remarkable refreshing. company we know as IBM, is delivering. Sam is a leader without parallel. When we were reviewing the finalists for this award, I said to Nelson that all the He took a great company, his company, candidates are excellent; but none, in my IBM, the company he joined 37 years ago, view, has had the impact on the business and made it, now as it’s approaching its community and the world at large that 100th anniversary, an even greater Sam has had. Sam and IBM have inspired company. It is now second in brand value the world. in the world, according to the most recent Interbrand Study. The stock price is at its highest point in 7 | P a g e The W. Edwards Deming Center for Quality, Productivity, and Competitiveness history.