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Lenovo 2009: The Role of Board Chairperson in a Turnaround
Lenovo, China’s largest personal computer manufacturer, had just replaced its American chief executive officer (CEO), the third replacement since the company’s 2005 acquisition of IBM’s personal computer business. The leadership shakeup was seemingly caused by the worsening conditions in Lenovo’s key target market and the company’s subsequent disastrous financial loss, but, in reality, the reasons were more complicated. Lenovo was dealing with the most challenging internal issues that a globalizing Chinese company could experience: retaining international executives under severe distress, integrating two companies with distinct cultural roots, and dealing with changed power relations on the board, including the awkward relationship between a Chinese executive chairperson and a foreign CEO.