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1
IBM’S DIVERSITY STRATEGYA CASE STUDY ANALYSIS OF
Professor David A. Thomas & Research Associate Ayesha Kanji
I
COMPANY OVERVIEW
Headquarters
Founded Founder
Armonk, New York, United StatesJune 16, 1911Charles Ranlett Flint
International Business Machines Computing
tabulating recording company (CTR)
American multinational technology company
World's biggest technology company
Second most valuable by global brand in 2010
With operations in over 170 countries
Headquarters
Founded Founder
Armonk, New York, United StatesJune 16, 1911Charles Ranlett Flint
International Business Machines Result of the
merger of three companies
Global Technology Services (GTS)
Global Business Services (GBS), Software
Systems Hardware and Global Financing.
Big Blue
IBM’s Business Model
II
STATEMENT OF THE PROBLEM
MAIN PROBLEM
IBM had not yet connected itself
to the marketplace because its tremendous diversity was
being minimally utilized.
Diversity Issues In The Workplace
Low level of diversity in the senior ranks of
the company
Untapped talent pool especially pertaining to
talented minorities
Limited minority representation in areas
such as computer sciences and engineering
III
AREAS OF CONSIDERATION
STAKE HOLDERS
Any constituencies
in the organization’s environment
affected by the organization’s decisions and
actions
Foundation to business Boost IBM’s potential to succeed in a
globally integrated world Critical to the development or execution of a successful workforce diversity strategy.
Working with Stakeholders
Foundation to business Boost IBM’s potential to succeed in a
globally integrated world Critical to the development or execution of a successful workforce diversity strategy.
Working with Stakeholders
Foundation to business Boost IBM’s potential to succeed in a
globally integrated world Critical to the development or execution of a successful workforce diversity strategy.
Working with Stakeholders
Foundation to business Boost IBM’s potential to succeed in a
globally integrated world Critical to the development or execution of a successful workforce diversity strategy.
Working with Stakeholders
1EMPLOYEES wider range of
talents, skills, ideas, and views
influence the courses of action of the corporation
Connects with culturally diverse customers
more innovations, flexibility, greater degree of trust among stakeholders, and greater organizational flexibility to reduce the impact of change.
can also prevent union formation when employees don’t feel well represented enough
CUSTOMERS
Without workforce diversity,
customers could be less
invested on the goods and
services provided by the
corporation than if it did promote an
environment of open culture.
EMPLOYEES
CUSTOMERS
APPLICANTS
BUSINESS
PARTNERS
COMPETITORS
MARKETERS
2APPLICANTS Attract a huge
number of applicants
National programs initiated by IBM
Failure to show diversity in the workforce can cause supposed applicants to apply for other corporations.
COMPETITORS Accepting workforce
diversity can bring advantage to the industry competitiveness.
BUSINESS PARTNERS
• Employees help generate small
businesses and in return IBM would
have additional business partners that can be a part of the task forces.
MARKETERS
Link in connecting the improved and
diversified workplace to the marketplace
IBM must also find ways of identifying, developing and connecting talent and
expertise from around the globe by embracing cultural differences and
distinctiveness.
IBM Employees and Globalization
IV
COURSES OF ACTION
“The company needs to win in the marketplace and out-compete our
competition by looking like the people we are trying to sell to, and we must look like
them from the mailroom to the boardroom.”
Ted Childs
8 IBM Task Forces
8 IBM Task Forces
1.Asian2.Black3.Gay and Lesbian 4.Hispanic5.Native American
6. People with Disabilities (PWD) 7. White Men, and 8.Women
Each has been assigned an executive sponsor, who was either a direct report of the CEO and/or a member of the WMC to help remove any obstacles that hindered the task forces from completing their work.
Each of the Task Forces was composed of 15-20 executives representing each of the corporation’s business segments.
8 IBM Task Forces
Each of these task forces was given the following tasks:
1. What is required for your group to feel welcome and valued at IBM?
2. What can IBM do, in partnership with your group, to maximize your group’s productivity?
8 IBM Task Forces
Each of these task forces was given the following tasks:
3. What decisions can IBM make to influence your group’s buying decisions, so that IBM is seen as a solution provider?
4. What decisions can IBM make to influence your group’s buying decisions, so that IBM is seen as a solution provider?
8 IBM Task Forces
1. Announcing the LifeWorks program,2. Implementing a regular part-time
employment program, 3. Launching employee network groups,
and the Global 4. Partnership for Work/Life, Flexibility, and
Mobility, and etc.
Recommendations that are approved and implemented because of the 8 IBM Task Forces
“Emphasized the goal towards being customer-
oriented or by reaching out customers through
the employees themselves and towards being
employee-oriented or by nurturing the
employees through some remunerations..”
DISADVANTAGES
Costly,Guarantee of it that it will be successful,Moral hazard,Political diversity, Culture and religion
OTHER COURSES OF ACTION
Five-Minute DrillInitiative for senior executivesAdvertisingBuilding Business Partnership The creation and expansion of BAP (Business Alliance Program) and PX (Partnership Executive) program
Recommendation
Keep reaching out.
VI
COMPANY UPDATES
In 2012, IBM's brand was valued at $75.5 billion and ranked by Interbrand as the No.2 best brand worldwide ranked by Fortune as
the No. 1 company for leaders and No. 5 most admired company, by Newsweek as the No. 2 green company in the U.S., No. 2 most respected company by Barron's, the No. 18 most innovative company by Fast Company, and the No. 1 in technology consulting and
No. 2 in outsourcing by Vault.
In 2015, its awards are
Forbes: No. 5 most valuable brand. DiversityInc.: Top 10 Companies for Global DiversityNational Association of Female Executives: Top 50 Companies for Female ExecutivesWorking Mother: Top 10 Companies for Multicultural WomenWorking Mother: 100 Best Companies
Workplace Pride Foundation: World’s Most LGBT-Inclusive CompanyHuman Rights Campaign Foundation: Best Places to Work for LGBT EqualityStonewall Global Equity Index: Star Performer LGBT-friendly workplace
Association of Talent Development: 2015 Excellence in Practice Awards
Ragan Communications: Best Employee Advocacy Program Award
Brandon Hall Group: Two Gold Awards, Measuring the Impact of Leadership and Learning Measurement
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