Louis Gerstner, Chairman & CEO, IBM

But when it comes to Gerstner's accomplishments as leader of one of the largest companies in the world, there is no mystery at all. Gerstner is widely regarded as the person responsible for not only turning around the computer giant financially but also transforming it into a highly profitable services leader that has thrived in spite of the economic downturn of 2001.

The turnaround story is well-documented. Gerstner became chairman and CEO of IBM on April 1, 1993, a year in which the company lost $8.1 billion on $62.7 billion in revenue. The following year, IBM earned $2.9 billion on $64.1 billion in sales. And the strong financial results have continued through this year. In the first half of 2001 alone, IBM earned $3.8 billion on $42.6 billion in sales. Over the same period, IBM's stock rose 34 percent, and when this story went to press, it was hovering around $108.

Observers say Gerstner's emphasis on services and the customer are major contributors to this impressive performance. They also point to Gerstner's ability to remain focused and stick to his vision over the long haul.

"He realized customers are willing to pay, and pay handsomely, for getting top-quality service," says Michael van Biema, a professor in the finance department at the Columbia Business School in New York. Van Biema served as a consultant to IBM prior to Gerstner's arrival and during the transition period after he was hired. Van Biema says it may have been Gerstner's consulting background at McKinsey & Co. that has helped him understand what customers want.

"People don't want to sit down with a computer nerd and explain their business," van Biema says. "They want someone who understands the insurance business or brokerage business and knows the problems. Gerstner refocused IBM on an industry-by-industry basis."

Mark Romanowski, senior vice president of client services and business development for New York-based AMC, and a member of IBM's advisory board for North America, says he thinks of the CEO almost as a hero.

"As a business professional, he's someone I look up to," Romanowski says. "A long time ago, he looked at the industry before the so-called geniuses and said the future is in services, and he never stopped doing it."

It was that determination that led to Gerstner's success, observers say. "He has put a tremendous amount of focus on the customer since he has come to IBM," says Janet Perna, general manager of IBM Data Management Solutions, who declined to comment much further on her penultimate boss. "He has instilled a sense of urgency in the company."

Gerstner also seems to know when to turn his attention from today's problem to the next challenge. Early this year, perhaps sensing the renewed interest in solution providers on the part of many vendors, Gerstner made a rare appearance at PartnerWorld 2001 in Atlanta. There, he told an overflow crowd of IBM business partners how important they'd been to the company's overall business and vowed to spend $650 million in advertising highlighting their work and to provide unlimited financing to the channel.

Public appearances by Gerstner have been so infrequent that he remains something of an enigma, even on the eve of his retirement, which is expected next spring when his contract expires. He rarely grants interviews, and attempts to speak with IBM executives about him get tied up in IBM's public relations bureaucracy. So tight is the control surrounding Gerstner that few IBMers are willing to discuss their boss without his approval. One IBM press agent described interview requests as a "highly sensitive" issue.

Even executives who previously worked with Gerstner at IBM simply refuse to talk. Jim Firestone, who ran IBM's consumer division before leaving with IBM CFO Rick Thoman to work for Xerox, declined to comment for this story. Jerome York, IBM's CFO before Thoman, who now serves as CEO for MicroWarehouse, also was closemouthed. In fact, before even considering an interview request on the subject, York's office asked if IBM had granted permission for him to talk.

Does it matter whether or not Gerstner keeps a low profile? Some crave to hear more from the IBM leader. Others say no. "His obligation is to his shareholders and his shareholders alone," van Biema says.

While the CEOs of many other companies regard public-image building as part of their job, it is hard to compare Gerstner's company to others in the high-tech kingdom. Even Microsoft, whose chairman maintains a highly visible public image, is considerably smaller than IBM. Microsoft's $25.3 billion in revenue for the fiscal year ended June 30 is dwarfed by IBM's $90 billion in sales over the same period. The only name that comes up regularly when looking for a comparison to Gerstner's task and accomplishments is Jack Welch, the longtime head of General Electric who retired in September. Like Gerstner, Welch stayed away from the public eye through much of his career, only recently granting more interviews as he looks to cement his legacy.

Those who have met Gerstner, and are willing to talk about it, say that while he is a tough, no-nonsense negotiator, he also benefits from a sense of humor, and displays patience when necessary.

At a shareholders meeting a few years ago, faced with repeated questions from a minor, individual shareholder who seemed to enjoy calling him "Lou," Gerstner maintained his composure and even got the audience, which was becoming somewhat frustrated with the situation, to laugh on a few occasions. And earlier this year, speaking at his annual meeting with Wall Street analysts, Gerstner commented, "I'm impressed that some of you would come to see the old has-been."

Van Biema says Gerstner is one of those individuals whose presence is felt when he walks into a room. "Certain people you look at and see a spark of natural intelligence there," he says. "He's one of those guys you look into their eyes and you know there's more going on than waiting for the next martini hour."

While many have an overwhelming respect for Gerstner's achievements, there are some who voice criticisms. "I think he's a guy who took a very, very sick company and stabilized it," says Sun Microsystems CEO Scott McNealy. "He stabilized the earnings potential, but he did that by liquidating a lot of assets, not necessarily growing the assets and growing the earnings potential of the company. He milked the company very well but didn't necessarily build anything new."

Whether or not Gerstner does retire early next year, as is widely expected, no one thinks he will ride off into the sunset.

There has been talk about him taking a position in the federal government or perhaps becoming president of a university. Gerstner has been outspoken on education issues, and some speculate that he will devote his time to that area after he leaves IBM.

Perhaps in his next career, Gerstner will be more accessible to the public. Perhaps not. But if his accomplishments mirror those at IBM, it is probable that few will really care.

Kristen Kenedy and Amy Rogers contributed to this story.