College of Business Administration

Retaining and Developing High-Potential Managers in Emerging Markets

1

Peter Lynt Thomas Moore

General Manager Dean

Global Business Process Delivery College of Business Administration

IBM Northeastern University

Boston, MA

College of Business Administration

IBM Global Business Process Delivery

  Business: Offers third party outsourcing solutions within four key focus areas   Customer Relationship Management   Finance and Accounting   Procurement   Human Resources

2

College of Business Administration

IBM Challenge

  In developing markets, particularly in India, turnover of high potential managers was unacceptably high, approaching 100% in 2007

  This is a global problem that we are addressing in IBM's delivery centers in India

3

College of Business Administration

Potential Solution

  Develop a high quality educational program for IBM’s high potential managers which would build skills at the same time as reducing turnover and creating corporate loyalty

4

College of Business Administration

The Northeastern IBM Solution

Offer the NU online MBA program to select IBM high potential managers. This program has the following attributes:

  AACSB accredited – the leading international accrediting organization

  Flexible – IBM managers may participate regardless of extensive periods of travel and/or relocation

  Accessible – asynchronous and online platforms allows IBM students to log in from anywhere at anytime…

5

College of Business Administration

The Northeastern IBM Solution, cont.

  Interactive - IBM students move through the program in cohorts of 15; daily interaction with faculty and peers

  Affordable – Northeastern offered deep discounts on “sticker price” for an IBM commitment of a cohort program

6

College of Business Administration

Structure of the NU MBA Program

  17 fully online courses delivered over 24 months

  Each course runs approximately five weeks, with a one week break between courses

  Nine different start times each year

  Students are online every day with peers and instructors

  Entirely asynchronous so students who travel can maintain progress…

7

College of Business Administration

Structure of the NU MBA Program, cont.

  Optional office hours are synchronous

  Program uses short video, voice over spreadsheet and power point, group assignments, cases, simulations and chat rooms

8

College of Business Administration

Process of Launching Program

IBM

  Establish criteria for student selection

  Collaborate with students and STET during admission and matriculation processes

  Develop commitment conditions for students   Financial contribution

  Service after completion

9

Northeastern

  Provide information and materials to IBM managers to assist in establishing selection criteria

  Market program and interview candidates on site

  Admissions

College of Business Administration

Photo: Jagadeesh NV/Mint

Lessons Learned from India Launch

  Establish active buy-in and sponsorship from managers before launching the program

  Determine guidelines for eligibility of potential participants. Be selective and maintain exclusivity

  Educate senior managers making nominations about program requirements and establish their commitment to support participants

  Set clear expectations for students as to rigors of the program, time management, and expected interactivity with peers and professors

  Build excitement through selection announcements and internal marketing

10

College of Business Administration

Program Outcome Two Years Later

  Approximately 90% of the enrolled students will complete the program on schedule

  Attrition from IBM has been 5% for high potentials in the program and 14% for those eligible but not selected

  Student satisfaction has been high. Senior managers report success factors including promotions

  Company loyalty remains high and reported job performance has improved

11

College of Business Administration

Launch in China   Based on success of IBM DAKSH program, IBM launched the

program in China in June at IBM's Dalian and Shanghai locations

  In addition to IBM Global Services, IBM AMS has committed to sponsoring employees as students beginning in early 2011

  Recruit India MBA graduates to mentor employees from Shanghai and Dalian as they adjust to participation in the program

  Establish additional opportunities for India and China cohorts to interact as students and alumni

12

College of Business Administration

Photo from Financial Times online: www.FT.com

Funding and Benefits

Through trade offsets, IBM has been able to fund this program and key benefits are:

  Investing in top talent employees will make us achieve less attrition for this specific group

  This advanced education will also produce more efficiency since they will be more educated in these functional areas

  Participating employees will be more well rounded in several areas including global leadership and business concerns

13

College of Business Administration

Why IBM Recommends This Program to Other Corporations

  Program accessibility/ease of online functions

  CBA accreditation

  US-based online program

  Cohort delivery model allows students to complete first year’s core courses together. Second year electives are taken with students from multiple countries

  Has increased our retention rates for these top talent employees by nearly three times

14

College of Business Administration

Thank you for your time.

15

Management Sponsor Management Sponsor

Student Student

Photo from Financial Times online: www.FT.com