By Carol Hymowitz

(Updates with Rometty’s background from fifth paragraph.)

Oct. 25 (Bloomberg) — International Business Machines Corp. said Virginia “Ginni” Rometty will succeed Sam Palmisano as chief executive officer, becoming the first female CEO in the company’s 100-year history.

Rometty, IBM’s head of sales and marketing, will take the president and CEO posts effective Jan. 1, the Armonk, New York- based company said in a statement today. Palmisano, who’s been CEO since 2002, will remain chairman.

Rometty, 54, takes the reins after IBM celebrated its centennial and as steady profit growth pushed the shares this year to the highest level since the company went public in 1915. Her experience in sales, services and acquisitions fits with the strategic direction set by Palmisano, who said last year the company will add $20 billion to revenue between 2010 and 2015 by expanding in markets such as cloud computing and analytics.

“She is more than a superb operational executive,” Palmisano said in the statement. “With every leadership role, she has strengthened our ability to integrate IBM’s capabilities for our clients.”

The 30-year IBM veteran caught Palmisano’s attention in 2002 when she helped integrate the $3.9 billion acquisition of PwC Consulting, IBM’s largest deal ever at the time.

Rometty, then a general manager of the consulting unit, is credited with helping to retain PwC’s principal consultants, who didn’t always mesh with IBM’s cost-cutting culture. When Palmisano wanted to cut travel budgets, making consultants stay at Holiday Inns, she helped them fight — and win, said Ric Andersen, a former PwC consultant who joined IBM with the acquisition.

Sales Promotion

Palmisano promoted her to senior vice president of the group in 2005, and she boosted profit at the unit 42 percent in her first two years on the job. During her three decades at IBM, she became known as a polished executive who can close a sale, expanding relationships with companies from State Farm Insurance Co. to Prudential Financial Inc.

“She’s an engaging woman — great with customers,” said Fred Amoroso, who was her boss in the financial-services consulting division during the 1990s. “Customers just love Ginni.”

Amid the recession, Palmisano put her in charge of running the company’s almost $100 billion in sales. Last year, she added marketing and strategy to her responsibilities.

Steve Jobs’ impact on your life cannot be underestimated. His innovations have likely touched nearly every aspect — computers, movies, music and mobile. As a communications coach, I learned from Jobs that a presentation can, indeed, inspire. For entrepreneurs, Jobs’ greatest legacy is the set of principles that drove his success.

Over the years, I’ve become a student of sorts of Jobs’ career and life. Here’s my take on the rules and values underpinning his success. Any of us can adopt them to unleash our "inner Steve Jobs."

1. Do what you love. Jobs once said, "People with passion can change the world for the better." Asked about the advice he would offer would-be entrepreneurs, he said, "I’d get a job as a busboy or something until I figured out what I was really passionate about." That’s how much it meant to him. Passion is everything.

2. Put a dent in the universe. Jobs believed in the power of vision. He once asked then-Pepsi President, John Sculley, "Do you want to spend your life selling sugar water or do you want to change the world?" Don’t lose sight of the big vision.

3. Make connections. Jobs once said creativity is connecting things. He meant that people with a broad set of life experiences can often see things that others miss. He took calligraphy classes that didn’t have any practical use in his life — until he built the Macintosh. Jobs traveled to India and Asia. He studied design and hospitality. Don’t live in a bubble. Connect ideas from different fields.

4. Say no to 1,000 things. Jobs was as proud of what Apple chose not to do as he was of what Apple did. When he returned in Apple in 1997, he took a company with 350 products and reduced them to 10 products in a two-year period. Why? So he could put the "A-Team" on each product. What are you saying "no" to?  

5. Create insanely different experiences. Jobs also sought innovation in the customer-service experience. When he first came up with the concept for the Apple Stores, he said they would be different because instead of just moving boxes, the stores would enrich lives. Everything about the experience you have when you walk into an Apple store is intended to enrich your life and to create an emotional connection between you and the Apple brand. What are you doing to enrich the lives of your customers?