Good Power

Good Power Plot Summary

Introduction

Virginia "Ginni" Rometty's journey from a modest upbringing to becoming IBM's first female CEO exemplifies how personal challenges can forge extraordinary leadership. When her father abandoned the family just before Thanksgiving, sixteen-year-old Ginni found herself helping care for her siblings while her mother worked multiple jobs to keep the family afloat. This early experience instilled in her a resilience and sense of responsibility that would later define her approach to leadership. Throughout her forty-year career at IBM, Rometty navigated the complex terrain of technological revolution and corporate transformation with a distinct philosophy she calls "good power." This approach to leadership emphasizes being in service of others, building genuine belief in shared missions, knowing what must change and what must endure, stewarding technology responsibly, and maintaining resilience through challenges. Her perspective offers valuable insights not just for business leaders, but for anyone seeking to create positive change in their personal lives, professional environments, or broader communities. Rometty's story illuminates how power can be wielded with respect and purpose, reminding us that influence is most effective when it unites people around shared goals and helps them become the best versions of themselves.

Chapter 1: Humble Beginnings: Family Values Shape Character

Ginni Rometty's childhood was marked by resilience and responsibility following her father's abandonment of the family. Growing up in a Chicago suburb, Rometty was just sixteen when her father left, delivering a devastating blow to her mother and siblings. Left with no money, no education beyond high school, and no work experience, Rometty's mother faced the daunting task of supporting four children on her own. This moment would prove formative for young Ginni, who overheard her father tell her mother, "I'll never give you anything. For all I care, you can go work on the street." This callous statement crystallized for Rometty the importance of self-reliance and taking control of one's circumstances. The values instilled by the women in Rometty's family profoundly shaped her character. Her great-grandmother Solemia Ushka, who had escaped Belarus during World War I and later worked as a cleaning woman in Chicago's Wrigley Building, demonstrated remarkable perseverance. Her grandmother Mary, twice widowed, ran a lamp shop to support herself and her family. These women exemplified the American work ethic: doing whatever was necessary for as long as it took to meet their needs. They were independent, industrious, and compassionate—traits that would later define Rometty's leadership style. Following her father's departure, Rometty's mother enrolled in community college classes while working two jobs to support the family. Watching her mother transform from a dependent housewife to a self-sufficient provider taught Rometty that she could control her own destiny regardless of circumstances. As the eldest child, Ginni took on significant responsibilities at home, caring for her siblings and preparing meals. This early caretaking role fostered her natural tendency to look after others, a quality that would later translate into her leadership approach of developing those around her. The family's financial struggles necessitated resourcefulness and creativity. Their furniture was a random mix of hand-me-downs and items acquired through trading stamps. Clothes were either handmade, passed down, or purchased from the Sears catalog. Despite these challenges, Rometty didn't perceive her family as poor, partly because other families in their neighborhood faced similar circumstances. This perspective helped her develop gratitude for what she had rather than resentment for what she lacked. The support network that formed around Rometty's family during these difficult times taught her the value of community. Neighbors like the Flemings provided job opportunities for the children. Extended family members checked in regularly. Teachers took extra time to nurture Rometty's academic talents. These experiences demonstrated how small acts of kindness could make meaningful differences in people's lives—a lesson that would later inform Rometty's belief that businesses should serve broader societal purposes. Rometty's early family experiences forged in her a determination to never be financially dependent on others. They also instilled a deep appreciation for education as a path to opportunity. Her mother's return to school to improve her employment prospects showed Rometty that learning was a lifelong endeavor and that it was never too late to acquire new skills. These formative experiences cultivated the work ethic, resilience, and service-oriented mindset that would eventually propel her to extraordinary heights in the business world.

Chapter 2: Education and Early Career at IBM

Ginni Rometty's educational journey was marked by determination and academic excellence despite financial constraints. After graduating near the top of her high school class, she gained admission to Northwestern University, where she initially planned to pursue a medical career. Though she lacked the financial resources of many of her peers, Rometty pieced together scholarships, loans, and part-time jobs to finance her education. The most significant support came from a General Motors scholarship that covered her final two years of tuition and provided valuable summer internship experiences at GM's headquarters in Detroit. At Northwestern, Rometty soon discovered her true passion lay not in medicine but in computer science and engineering. She was often the only woman in her engineering classes, a situation that taught her to prepare meticulously and develop confidence in her abilities. Rather than being intimidated, Rometty embraced the challenge, approaching complex problems with a methodical mindset. She valued understanding the fundamental principles behind concepts rather than merely memorizing facts. This deep, analytical approach to learning would become a hallmark of her professional style. Upon graduating with distinction in 1979, Rometty received multiple job offers from prestigious technology companies. Though Hewlett-Packard tried persistently to recruit her to their operation in California, Rometty chose to join General Motors in Detroit. This decision reflected both her sense of loyalty to the company that had supported her education and a more personal motivation—she had met and fallen in love with Mark Rometty, a young professional working in Detroit's automotive industry. After two years at GM, Rometty made the pivotal decision to join IBM as a systems engineer in 1981. Her interview almost derailed when she realized too late that she had left a large white tag on the sleeve of her new suit jacket, but her technical knowledge and preparation overcame this small embarrassment. From her earliest days at IBM, Rometty demonstrated exceptional dedication, often working late to master technical details and serve clients more effectively. Her willingness to put in extra hours wasn't merely about climbing the corporate ladder—it reflected a genuine enthusiasm for problem-solving and delivering value. Rometty's early career at IBM coincided with momentous changes in the technology industry. The same year she joined IBM, the company introduced its first personal computer, marking a significant departure from its traditional focus on mainframe computing. Though Rometty wasn't directly involved with the PC launch, she witnessed firsthand how technological shifts could transform both companies and careers. Working with clients like the Grand Trunk Western Railroad, she helped implement new software solutions that modernized operations and improved efficiency. These formative professional experiences solidified Rometty's belief in the transformative power of technology when properly applied to business challenges. She developed a reputation for thoroughness, reliability, and an unusual ability to translate complex technical concepts into clear explanations that clients could understand. By combining technical expertise with strong communication skills, Rometty distinguished herself among her peers and established the foundation for a remarkable ascent through IBM's ranks. More importantly, she was developing her philosophy that technology should serve people, not the other way around—a principle that would guide her leadership in the decades to come.

Chapter 3: Rising through the Ranks: Challenges and Growth

Ginni Rometty's career progression at IBM was characterized by her willingness to embrace risk and venture beyond her comfort zone. In 1991, after nearly a decade of building a successful track record in systems engineering and sales, she faced a pivotal decision: whether to join IBM's nascent consulting business. This move represented a significant gamble—stepping off IBM's well-established management track to join an unproven venture with an uncertain future. Despite reservations, Rometty chose to take the risk, recognizing that acquiring new skills in business consulting would make her more versatile and valuable, regardless of the outcome. The consulting transition proved challenging but immensely rewarding. Rometty had to learn an entirely new profession, moving from selling systems to selling solutions and, essentially, herself. Her performance would now be judged not on whether clients bought computers, but on whether they were willing to pay for her advice. This vulnerability initially made her uncomfortable, but she approached the learning process with characteristic thoroughness. She studied under veteran consultants, developed frameworks for analyzing business problems, and gradually built confidence in her ability to provide strategic guidance to clients. Under the mentorship of Fred Amoroso, Rometty flourished in the consulting environment. Fred recognized her potential and pushed her to establish a more public presence both within and outside the company. He encouraged her to write articles, speak at events, and build relationships with clients at the highest levels. When Lou Gerstner, IBM's CEO at the time, needed to meet with executives from major insurance companies, Fred ensured that Rometty was involved, giving her visibility with the company's top leadership. Fred also advocated for her compensation, fighting human resources to ensure she was paid competitively. In 1997, Rometty faced another career-defining moment when Fred suggested she should succeed him as head of IBM's global insurance business. Though the opportunity aligned with her ambitions, Rometty hesitated, feeling she needed another year to prepare fully. When her husband learned of her reluctance, he asked a question that would forever change her approach to career advancement: "Do you think a man would've answered it that way?" This wake-up call helped Rometty recognize that her self-imposed doubts were holding her back more than any external barriers. She accepted the role, learning an important lesson that would become one of her signature insights: growth and comfort never coexist. As Rometty continued her ascent through IBM's leadership ranks, she developed a management style characterized by deep preparation, active listening, and a focus on delivering value. She believed in running toward conflict rather than avoiding it, seeing difficult conversations as opportunities to strengthen relationships and improve outcomes. She also recognized the importance of balancing analytical rigor with emotional intelligence, understanding that effective leadership required connecting with people on a human level while maintaining high standards for performance. By the early 2000s, Rometty had earned a reputation as a skilled strategist who could handle complex challenges. She led IBM's integration of PricewaterhouseCoopers Consulting, a massive undertaking that required merging two very different corporate cultures. The successful execution of this merger further enhanced her standing within IBM and demonstrated her ability to lead transformational change. Each challenging assignment she accepted built upon the last, gradually preparing her for the ultimate leadership test that would come in 2011, when she was selected to become IBM's first female CEO.

Chapter 4: Breaking the Glass Ceiling: Becoming IBM's First Female CEO

On October 24, 2011, Sam Palmisano called Ginni Rometty to inform her that IBM's board had selected her to become the ninth chief executive officer of the company—and the first woman to hold the position in its century-long history. The announcement came after months of speculation about Palmisano's successor, with Rometty considered among several qualified internal candidates. Though her appointment would make headlines for breaking gender barriers in the traditionally male-dominated technology industry, Rometty's selection was fundamentally based on her three-decade track record of excellence at IBM and her proven ability to lead through periods of significant change. The media's reaction to Rometty's appointment reflected the historic nature of the milestone. Headlines like "IBM Names Virginia Rometty as Its First Female CEO" and "Rometty Breaks Ground" emphasized the gender aspect of her achievement. At the time, there were just eighteen women running Fortune 500 companies, with IBM ranked nineteenth on that list. While Rometty was proud to be among the breakers of glass ceilings, she wanted to be acknowledged for her accomplishments and leadership style regardless of gender. This tension—being both a symbol for aspiring female executives and a leader judged on her own merits—represented an unofficial responsibility that none of her male predecessors had faced. In the hours after the announcement went public, Rometty made a series of personal phone calls to the people who had influenced her career. These included Pat O'Brien, who had promoted her to her first management position; Fred Amoroso, who had taught her about leading with passion; Mike Collins, who had been in the trenches with her throughout the PwCC merger; and Lou Gerstner, who more than anyone else had taught her what it meant to be in service of clients and multiple stakeholders. This gesture of gratitude reflected Rometty's recognition that her achievement belonged not just to her but to all those who had supported her journey. Rometty chose to make her first official appearance as CEO at IBM's research labs in Yorktown Heights, New York. This location was symbolic, signaling the importance of innovation to the company's future. In her address to IBMers worldwide, Rometty outlined her vision, suggesting that IBM aspire to "Be Essential" in the eyes of clients, societies, and the world. She also introduced what she called the Three Strategic Beliefs: that a new era of computing had begun, driven by data, cloud, and artificial intelligence; that clients themselves were changing, seeking more intuitive products delivered via the cloud; and that IBMers would need to evolve their skills to remain relevant in this new landscape. In her first hundred days, Rometty embarked on a global listening tour, holding town halls with employees and meeting with hundreds of clients. She wanted to understand firsthand the challenges and opportunities facing the company from multiple perspectives. This approach reflected her leadership philosophy that authentic connection with stakeholders was essential for building trust and gaining insights that would inform strategic decisions. She also sent personal, handwritten notes to each of her senior vice presidents, describing what she admired about them and areas where she thought they could grow. Taking the helm of an iconic American company carried immense responsibility. IBM was more than a century old, had survived multiple technological revolutions, and was relied upon by thousands of organizations worldwide. Rometty felt deeply the weight of stewardship—the duty to not only preserve what made IBM great but to prepare it for its next chapter. As she settled into her role as CEO, she understood that the company faced significant challenges. Technology was evolving rapidly, new competitors were emerging, and customer expectations were changing. Navigating these waters would require both honoring IBM's heritage and making bold moves to secure its future. This dual mandate of preservation and transformation would define Rometty's tenure as chief executive.

Chapter 5: Leading Transformation: Reinventing IBM

When Ginni Rometty assumed leadership of IBM in 2012, she inherited a company at a critical inflection point. A convergence of technological trends—cloud computing, data analytics, mobility, and social media—was redefining the industry landscape. Simultaneously, new competitors like Amazon and Google were expanding from consumer markets into business computing, challenging IBM's traditional dominance. The company wasn't in immediate crisis, but Rometty recognized that its long-term viability required comprehensive reinvention rather than incremental change. Rometty's transformation strategy began with a clear-eyed assessment of IBM's portfolio, identifying which businesses to invest in, which to divest, and which new areas to pursue. One of her most difficult early decisions concerned IBM's semiconductor business. For almost sixty years, IBM had pioneered chip design and production, leading the market with breakthrough technologies. However, manufacturing the next generation of chips would require at least $10 billion in capital investment—resources Rometty believed would be better allocated to emerging growth areas. After intense internal debate, she made the controversial decision to maintain IBM's semiconductor research and development capabilities while divesting the manufacturing operations. "We kept the future and sold the present," as one executive put it. Between 2012 and 2020, Rometty divested a total of $9 billion in annual revenue across five major product businesses. These moves freed up capital to invest in what she identified as IBM's future growth engines: cloud computing and artificial intelligence. The company made a major bet on AI through its Watson platform, which had gained public attention by defeating human champions on the game show Jeopardy! in 2011. Under Rometty's leadership, IBM sought to apply this technology to solve real-world problems, particularly in healthcare. Though this effort encountered significant challenges and did not always meet expectations, it positioned IBM as a leader in enterprise AI applications. In cloud computing, IBM was playing catch-up to established providers like Amazon Web Services and Microsoft Azure. Rather than competing directly in the public cloud arena where these companies dominated, Rometty charted a different course, focusing on hybrid cloud solutions that combined public cloud, private cloud, and on-premise systems. This strategy culminated in the 2018 acquisition of Red Hat for $34 billion—at the time, the largest software acquisition in history. The move positioned IBM to lead in the next phase of cloud adoption, particularly for mission-critical applications in regulated industries. Rometty understood that transforming what IBM did was insufficient without also changing how it operated. She implemented structural and cultural changes to make the company more agile, innovative, and client-focused. This included flattening management hierarchies, adopting design thinking and agile development methodologies, and investing heavily in employee skills development. Under her leadership, IBM made forty hours of annual education mandatory for every employee and created systems to help workers identify which skills were in demand and how to acquire them. Perhaps most challenging was Rometty's decision in 2014 to abandon IBM's long-standing financial roadmap, which had committed to specific earnings-per-share targets. While this move initially disappointed investors and contributed to a decline in IBM's stock price, Rometty believed it was necessary to create the flexibility for long-term investments in emerging technologies. Throughout this difficult period, she maintained what she called a dual focus on "painting reality and giving hope"—being honest about challenges while articulating a compelling vision for the future. By the end of Rometty's tenure in 2020, IBM had fundamentally reshaped its portfolio and capabilities. The company had invested more than $133 billion in research and development, acquisitions, and capital expenditures to prepare for a new era of computing. Though revenues had not yet returned to growth, gross profits remained strong at $36 billion, and the company had built substantial businesses in strategic areas like hybrid cloud and AI. More importantly, IBM had reoriented itself toward the future while maintaining its essential character as a trusted enterprise technology partner. The foundation Rometty laid would provide the platform for her successor, Arvind Krishna, to continue the company's evolution.

Chapter 6: Stewarding Good Tech: Values-Based Leadership

In June 2013, less than two years into Rometty's tenure as CEO, a seismic event rocked the global technology industry. Edward Snowden, a former intelligence contractor, leaked classified documents revealing that the US government had been collecting data from several tech companies through a program called PRISM. Though IBM had no connection to the program, the company soon faced inquiries from concerned clients and governments worldwide about data security and privacy. This crisis crystallized for Rometty the growing erosion of trust in technology and the vital importance of ethical leadership in the digital age. Rather than staying silent, Rometty chose to address these concerns head-on. In March 2014, IBM released "A Letter to Our Clients About Government Access to Data," explicitly stating that the company had no connection to PRISM and did not provide backdoors in its products or encryption keys to government agencies. The letter affirmed that if a government wanted access to client data held by IBM, the company would expect that government to deal directly with the client. This transparent approach reflected Rometty's belief that trust forms the foundation of all relationships, including those between businesses and their customers. Building on this initial response, Rometty developed a comprehensive framework for what she called "stewarding good tech." This approach encompassed three core values: being trusted, championing diversity and inclusion, and preparing society to thrive in the digital era. For Rometty, these weren't just abstract principles but practical guides for decision-making in a complex technological landscape. She articulated specific standards in IBM's Principles of Trust and Transparency, which emphasized that technology should augment humanity, that data and insights belong to their creators, and that companies should be transparent about how their systems work and are applied. Rometty's commitment to inclusion extended beyond corporate rhetoric to concrete actions. When North Carolina passed a law discriminating against the LGBTQ community, she personally called the governor of Texas, where similar legislation was being considered, to make it clear that if such a bill passed, IBM would reduce its investments in the state. She deployed IBM executives to meet with lawmakers and placed newspaper ads explaining the company's opposition. These efforts, combined with similar actions from other businesses, helped prevent the discriminatory legislation from becoming law in Texas. Under Rometty's leadership, IBM achieved record diversity across all representation groups and was recognized with the prestigious Catalyst Award for Advancing Women and Diversity in Business. Perhaps the most forward-looking aspect of Rometty's "good tech" philosophy was her focus on preparing society for the digital era. She recognized early that technological change was creating a growing mismatch between the skills employers needed and those available in the workforce. To address this gap, IBM helped develop innovative educational models like P-TECH (Pathways in Technology Early College High School), which allowed students to earn both high school diplomas and associate degrees in technology fields. Rometty also championed what she called "new collar" jobs—positions that required specialized skills but not necessarily four-year college degrees—and advocated for skills-based hiring practices that focused on capabilities rather than credentials. In 2019, Rometty joined other business leaders in redefining corporate purpose through a Business Roundtable statement that committed companies to serve all stakeholders, not just shareholders. This reflected her longstanding belief that businesses have responsibilities to the communities and societies in which they operate. Throughout her career, Rometty consistently argued that commercial value and societal value are not mutually exclusive—that the pursuit of profit can and should align with broader social good. By maintaining this perspective during a period of rapid technological change and growing economic inequality, she helped chart a course for more responsible corporate citizenship in the digital age.

Chapter 7: The Power of Skills: Creating Economic Opportunity

Throughout her career, Ginni Rometty witnessed firsthand how access to education and employment opportunities could transform lives. Her own journey from modest beginnings to corporate leadership had been enabled by scholarships, mentors, and educational institutions that recognized her potential regardless of her financial circumstances. As CEO of IBM, she became increasingly concerned about the growing "digital divide" that threatened to leave millions of people behind in a rapidly evolving economy. In 2012, IBM faced a paradoxical challenge: the company couldn't find enough qualified candidates to fill hundreds of cybersecurity positions, despite high unemployment rates nationwide. This skills mismatch led Rometty to question traditional hiring practices, particularly the requirement for four-year college degrees in roles where specific technical skills were more relevant than academic credentials. She championed a shift toward "skills-first" hiring at IBM, encouraging recruiters to revise job descriptions to emphasize abilities rather than degrees and creating pathways for talented individuals from non-traditional backgrounds to join the company. Rometty's commitment to expanding economic opportunity took concrete form through several innovative programs. One was P-TECH, a public-private partnership that IBM helped establish in Brooklyn, New York, in 2011. The program allowed students to simultaneously earn high school diplomas and associate degrees in technology fields, while gaining hands-on work experience through paid internships. What began as a single school expanded to over 300 locations in 27 countries, with more than 600 business partners. Its success demonstrated how collaborative approaches between education and industry could create viable pathways to good jobs for underserved populations. Another initiative was IBM's apprenticeship program, which adapted the age-old model of skills transfer to contemporary technology roles. The company created registered apprenticeships for software engineers, cybersecurity analysts, and other technical positions, providing full-time, paid opportunities that combined formal education with on-the-job training. By 2022, these programs had produced over 500 skilled professionals, most of whom became full-time IBM employees. Significantly, the apprentice cohorts included people from diverse backgrounds—from teenagers to grandparents, with and without college degrees—demonstrating the breadth of untapped talent available when traditional hiring barriers are removed. Rometty also recognized the importance of helping experienced professionals transition back into the workforce after career breaks. In 2016, IBM launched "returnships," three-month programs designed to help people who had left the company, often women who had paused their careers to care for family, refresh their skills and rebuild confidence. The initiative acknowledged that many talented individuals face challenges re-entering the workforce not because they lack ability, but because they need support adapting to new technologies and ways of working. After retiring from IBM in 2020, Rometty channeled her passion for economic inclusion into broader societal change. Following the murder of George Floyd and the national reckoning with racial inequality that ensued, she co-founded OneTen, a coalition of major companies committed to hiring, promoting, and advancing one million Black Americans without four-year degrees into family-sustaining jobs by 2030. This initiative embodied Rometty's belief that addressing systemic barriers to employment required collective action and fundamental changes in how companies identify, develop, and advance talent. Through her advocacy for skills-based hiring and alternative pathways to good jobs, Rometty challenged deeply entrenched assumptions about the relationship between education and employment. She argued that the "overcredentialing" of jobs—requiring college degrees for positions that didn't truly need them—was creating artificial barriers that disproportionately affected underrepresented groups and contributed to widening economic inequality. By promoting a more inclusive approach to talent, Rometty not only helped expand opportunity for individuals but also addressed a critical business challenge: ensuring that companies could access the full spectrum of available talent in an increasingly competitive global economy.

Summary

Ginni Rometty's remarkable journey from a childhood marked by family hardship to becoming IBM's first female CEO exemplifies how personal adversity can forge extraordinary leadership. Her approach to wielding influence, which she calls "good power," offers a blueprint for creating positive change in an increasingly complex world. At its core, Rometty's philosophy centers on five principles: being in service of others rather than oneself; building genuine belief and followership rather than commanding compliance; making thoughtful decisions about what must change and what must endure; stewarding technology responsibly for the benefit of humanity; and maintaining resilience through challenges by nurturing relationships and choosing constructive attitudes. Perhaps Rometty's most enduring contribution lies in her vision of a more inclusive economy where opportunity is distributed more equitably. Through initiatives like P-TECH, apprenticeship programs, and her post-IBM work with OneTen, she has demonstrated how businesses can help bridge societal divides by focusing on skills rather than credentials. Her advocacy for "skills-first" hiring practices challenges organizations to tap into overlooked talent pools and provides a practical approach to addressing both workforce needs and economic inequality. For leaders in all sectors, Rometty's example offers powerful lessons in balancing commercial success with societal impact, navigating technological disruption with human values, and wielding influence in ways that unite rather than divide. In a world often fixated on power's corrupting potential, Rometty reminds us that power can also be directed toward creating meaningful opportunities for others—and that in doing so, we unlock its truly transformative capacity.

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Ginni Rometty

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