incompatible with IBM's previous products, it represented an enormous risk for the company. Despite delays in shipment, the products were well-received following their launch in 1964 and what Fortune magazine called "IBM's $5 Billion Gamble," in the end, paid off. Organizational structures Perhaps Watson's most enduring contribution to IBM was its organizational structure, since new products, no matter how successful, carry a company for at most a few years. In 1956, in a move that became a bi-annual event, he reorganized IBM on divisional lines, to give a decentralized organization, with five major divisions in the US. The new structure comprised: Data Processing Division – selling to (and servicing) commercial customers Federal Systems Division – selling to (and servicing) the US government Systems Manufacturing Division Components Manufacturing Division Research Division Smaller units were Electric Typewriter, IBM World Trade, Service Bureau Corporation, Supplies Division; and Time Division (sold off in 1958). Watson said "We had a superb sales organization but lacked expert management organization in almost everything else". His goal was to redirect IBM to absorb the shocks of change, including change from its own innovation. He introduced the terminology "line and staff". In his words: "By the mid-'50s just about every big corporation had adopted the so-called staff-and-line structure. It was modeled on military organizations going back to the Prussian army in Napoleonic times." His organization "... provided IBM executives with the clearest possible goals. Each operating man was judged strictly on his unit's results, and each staff man on his effort toward making IBM the world leader in his specialty." The final element of formal organizational change was the isolation of headquarters staff in Armonk, New York. This was said by him to be in order to be near his family in Connecticut. His first book in 1963 discussed his management philosophy. Honors Watson received the Silver Buffalo Award from the Boy Scouts of America in 1955 for his service to youth. He was the national president of the BSA from 1964 to 1968. His father had also served on the national executive board and was International Commissioner in the 1940s. Lyndon B. Johnson in September 1964 awarded Watson the Presidential Medal of Freedom, the highest award a U.S. President can bestow on a civilian. Watson was inducted into the Junior Achievement U.S. Business Hall of Fame in 1976. He was awarded the Vermilye Medal in 1967. In 1987