What Kind of Leader Are You?
Back When IBM Made Punch cards
A powerful story from IBM’s history reveals what separates good leaders from great ones—and how you can build that mindset too. In the 1950s, IBM looked radically different from the tech giant we know today. The company’s core product? Punch-card systems. Not exactly thrilling.
At the time, IBM’s CEO, Tom Watson Sr., rejected the idea of developing computers—calling them overpriced and unreliable.
A New Era Begins
Everything changed in 1952 when Tom Watson Jr. took the reins. In just four years, IBM’s sales surged from $275 million to $734 million—a staggering 267% increase.
Watson Jr. had vision. And in the early ’60s, he bet the company’s future on something radical: System/360.
IBM's $5 Billion Gamble
System/360 introduced a line of computers that could run the same software and hardware—a first at the time.
Fortune magazine called it “IBM’s $5 billion gamble.” The risk paid off.
System/360 became the backbone of modern computing.
Leadership in Action: Million-Dollar Mistake
One story captures Watson Jr.’s leadership best.
A young executive made costly errors that lost IBM millions. Called into Watson’s office, he said, “I know you’re going to fire me.”
Watson smiled and replied:
“Fire you? We just spent several million dollars educating you.”
Instead of reacting with anger, he responded with perspective. That’s true leadership.
Thomas Edison once said:
“I haven’t failed. I’ve just found 10,000 ways that won’t work.” When fire destroyed his lab in 1919, he said: “All our mistakes are burned up. Thank God we can start anew.”
This mindset isn’t natural for most—it’s learned. The good news? You can practice.
Next time a challenge arises:
- Take a breath.
- Step back.
- Ask: What’s the opportunity here? What Can I learn? Frustration won’t fix the problem. But reflection might.
So... What Kind of Leader Are You?
Ask yourself:
- Do my employees seek out my input—even on personal matters?
- Do they bring ideas and take ownership of their work?
If you answered “yes,” you’re leading well. If not, maybe it’s time to change your lens.
Because great leaders don’t just react. They respond—with clarity, calm, and confidence.
Author: Adam Katzen
Adam Katzen is a marketer, writer, and development executive with a penchant for adrenaline-fueled adventures and making the world a better place. He helps businesses grow, builds trust-based corporate cultures, and coaches C-level leaders in mindfulness-based leadership.
Adam teaches meditation, founded the nonprofit Dharma Project, and plays professional beach volleyball.
Reach him at: adam@360consulting.co