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    Case study

    Training employees of IBM through

    e-learning

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    People with disability

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    As a business, IBM recognise the need tocapitalise on the skills and talents of all

    segments of our diverse community. They are

    committed to building the representation of

    People With Disability (PWD) into our

    workforce.

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    profile

    Proactive recruitment

    IBM proactively seeks to employ graduates

    and professionals with a disability. Their

    recruitment specialists are trained indisability employment and hiring

    practices and communicate this focus to

    the recruitment supplier agencies.

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    Building accessibility

    They are continually improving our premises toensure all IBM offices are accessible toemployees, clients and the general public.

    Computer access

    IBM provides modified workstations and specialistIT equipment for employees with disabilities.Weare committed to developing and usingtechnology to improve access in the workplace.

    IBM has several Accessibility Centres around theworld and a website (US) dedicated to assistivetechnology in the workplace.

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    Communications accessIBM's instant messaging service helps our deaf

    employees to communicate with theircolleagues and also support video remote

    interpreting and live remote captioning andencourage hearing employees to undertakedeafness awareness training.

    Disability Employee Networking Group

    With a senior executive as its sponsor, thisGroup actively supports employees with adisability and provides feedback to thecompany.

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    Disability awareness training

    Awareness training is offered to IBM's

    Human Resource community, Real Estate,

    Procurement and Diversity ContactOfficers.

    Career advancement

    IBM make sure employees with a disabilityare included in all our high-potential

    succession planning strategies.

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    as re a ne s pos on asone of the world's top Employers

    of Choice over the years through

    its focus on:Capability:

    Rigorous and ongoing career/skills

    development programs.Climate:

    A challenging, empowering work

    environment, with world-class infrastructure.Culture:

    Sensitive to a diverse, global workforce.

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    The essence of being an IBMer resonates inthe three values which every IBMer lives

    by:

    Dedication to every client's success.

    Innovation that matters - for the company

    and the world.Trust and personal responsibility in all

    relationships.

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    IBM equal opportunityIBM respects and values diversity amongemployees. it provide opportunity to peoplewithout any sort of discrimination.

    DiversityAt IBM, diversity and inclusiveness are two sidesof the same coin. Here diversity bridges theworkplace and the marketplace

    Mobile working

    allows employees the ability to enhance theireffectiveness by providing tools to use at anylocation, be it a customer office, airport, IBMmobility workstations or home.

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    FlexibilityFlexible work options are available to assistemployees in balancing their responsibilities to work,family, education, and other personal needs.

    Health care

    IBM offers a range of personal benefits such asmedical schemes, dental schemes, health screening,wellness programs, retirement and insurance program.

    Culture

    IBM has a performance-based culture that talentedpeople find very attractive. Employees share a senseof community and work in an environment that valuesintelligence and innovation.

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    Compensation and benefits

    The IBM compensation philosophy is to attract,

    retain and motivate top performing employees

    through competitive total compensationprograms.

    Recognition

    IBM's global recognition program, "The Best of

    IBM," rewards exploration, collaboration andrisk-taking.

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    E-learning is a technology area that often has both first-tier benefits,

    such as reduced travel costs, and second-tier benefits, such as

    increased employee performance that directly impacts profitability.

    Rebecca Wettemann, research director for Nucleus Research.

    In 2002, the International Business Machines Corporation (IBM)

    was ranked fourth by the Training magazine on its The 2002

    Training Top 100.

    During the mid 1990s, IBM reportedly spent about $1 billion for

    training its employees. However, in the late 1990s, IBM undertook a

    cost cutting drive, and started looking for ways to train its employees

    effectively at lower Costs.

    C t

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    Cont After considerable research, in 1999, IBM decided to use e-

    Learning to train its employees. Initially, e-Learning was used to

    train IBMs newly recruited managers.

    The company reportedly saved about $166 million within one

    year of implementing the e-learning program for training its

    employees all over the world.

    The figure rose to $350 million in 2001. During this year, IBM

    reported a return on investment (ROI)s of 2284 percent from

    its Basic Blue e-Learning program.

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    Cont This was mainly due to the significant reduction in the companys

    training costs and positive results reaped from e-learning

    Andrew Sadler, director of IBM Mindspan Solutions, explained the

    benefits of e-learning to IBM,

    All measures of effectiveness went up.

    Its saving money and delivering more effective training.

    the same time providing five times more content than before.

    By 2002, IBM had emerged as the company with the largest number

    of employees who have enrolled into e-Learning courses

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    Cont As a controversy it was said that e-Learning would never be

    able to replace the traditional modes of trainingcompletely.

    Rick Horton, general manager of learning services at IBM,

    favored The classroom training.

    Analysts estimated that the market for e-Learning

    programs would grow from $2.1 billion in 2001 to $33.6

    billion in 2005 representing a 100 percent compounded

    annual growth rate (CAGR).

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    BACKGROUND

    Since the inception of IBM, every employees

    contribution was important for the organization.

    The HR policies At IBM were employee- friendly.

    Employees were compensated well, above the industryaverage in terms of wages.

    Even during financially troubled periods employees were

    relocated from the plants, labs and headquarters, and wereretrained for careers in sales ,customer engineering ,field

    administration and programming.

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    In 1933 (after 15 years of its inception), the

    construction of IBM Schoolhouse to offer education

    and training for employees, was completed.

    The building had Thomas J.Watson Sr.s (the father of

    modern IBM) Five Steps of Knowledge' carved on the

    front entrance. The five steps included

    Read,Listen,Discuss,Observe and Think.

    Managers were trained at the school at regular intervals.

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    Managers were also sent for educational programs toHarvard, the London school of Economics ,MIT and

    Stanford.

    Those who excelled in these programs were sent toAdvanced Managers School, a program offered in about 40

    colleges.

    IBMs highest ranking executives were sent to executive

    seminars ,organized at Brookings Institution. This program

    covered a broad range of subjects including international

    and domestic, political and economic affairs.

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    IBM trained about 5000 managers in a year.

    There was a 5 day training program for all the new

    managers ,were they were familiarized with the basic

    culture, strategy and management of IBM.

    As the jobs became more complex ,the five day program

    turned out to be insufficient for the managers to train

    them effectively.

    The company felt that training process had to be

    continuous and not a one- time event.

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    The company specifically wanted its management

    training initiatives to address the following issues:

    Management of people across geographic borders.

    Management of remote and mobile employees.

    Reductions in management development resources.

    Limited management time for training anddevelopment.

    Digital collaboration issues.

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    The company required a continuous training program,

    without the costs and time associated with bringing

    together 5000 managers from all over the world.

    After conducting a research ,IBM felt that onlinetraining would be an ideal solution to this problem.

    The company planned to utilize the services of IBM

    mindspan solutions to design and support companysmanager training program. This was IBMs first E-

    learning project on international training.

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    On Line Training At IBM

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    Basic Blue management training program:

    *In house management training program,fully

    deployed in 2000.*75 % of the training is online , remaining 25

    % is through the traditional class room mode.

    *Founding principle: Learning is anextended process not a one time event

    *Basic blue was based on a 4 Tier blended

    learning model

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    High lights of 4 tiers:----

    1.Just in time performance support.

    2.Simulated situations.3.Interacting with each other on line.

    4.Class room training program.

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    Tier 1Learningfrominformation

    Performance supportandreferencematerials

    Read it,Watchit,listen toit,Bedirected byit.

    Websites,audioseminars,videos,books,e- books

    Internet

    Tier 2

    Learning

    from

    interaction

    Interactive

    learning,

    games and

    simulations

    Examine it,

    try it,play at

    it, interact

    with it.

    CBT/WBT

    modules,

    interactive

    games,multi

    media oractual

    simulations.

    Multimedia

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    \Tier 3Learningfromcollaboration

    Collaborative learning

    Discuss it,practicewith others,createvirtualcommunities ofpractice orpurpose

    Live virtualclassrooms,e-labs,e-teams,collaborativesessions,webconference

    s.

    Collaborative

    Tier 4

    Learning

    from

    collocation

    Experience

    based

    learning

    Get

    together,

    meet as a

    community,

    developrelationships

    ,

    live it, do it.

    Mentoring,

    Role

    playing,

    case

    studies,Coaching.

    Face to face

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    The tremendous success of the Basic Blue initiative encouraged IBM to extend

    training through e-Learning to its-sales personnel and experienced managers as

    well. The e-Learning program for the sales personnel was known as Sales

    Compass, and the one for the experienced managers, as Managing@ IBM.

    Prior to implementation of sales compass the sales personnel underwent live

    training at the companys headquarters and training campuses. They also attended

    field training program, national sales conferences and other traditional methods of

    training.

    It seems to be more expensive, time consuming and coordination problems also

    cropped up.SALES COMPASS:

    Sales Compass was originally started in 1997 on a trial basis to help the sales team,

    it-was not implemented on large scale. But with the success of Basic Blue, Sales

    Compass was developed further. The content of the new Sales Compass was

    divided into five categories including Solutions (13 courses), industries (23courses), personal skills (2 courses), selling skills (11 courses), and tools and job

    aid (4 aids).

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    Sales Compass provided critical information to the sales personnel helping them to

    understand various industries in a much better manner. The sales personnel could

    use the information from their desktops using a web browser.

    It also enabled the sales people to sell certain IBM products designed for Customer

    Relationship Management (CRM), Enterprise Resource Planning (ERP), Business

    Intelligence (BI), and so on. Sales Compass also trained the sales personnel on

    skills like negotiating and selling services.

    Sales Compass was offered to 20,000 sales representatives, client relationship

    representatives, territory representatives, sales specialists, and service professionals

    at IBM. Brenda Toan, global skills and learning leader for IBM offices across the world,

    said, Sales Compass is a just-in-time, just-enough sales support information site.

    Most of our users are mobile. So they are, most of the times, unable to get into a

    branch office and obtain information on a specific industry or solution. IBM Sales

    Compass provides industry-specific knowledge, advice on how to sell specific

    solutions, and selling tools that support our signature selling methodology, which is

    convenient for these users.

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    Managing@IBM

    IBM launched an e-Learning program called Managing @ IBM for its

    experienced managers, in late 2001.

    The program provided content related to leadership and people

    management skills, and enabled the managers to meet their specific needs.

    Unlike the Basic Blue program, this program enabled managers to choose

    information based on their requirements. The program included the face-to-

    face Learning Lab, e-learning, and Edvisor, a sophisticated Intelligent Web

    Agent. Edvisor offered three tracks offering various types of information.

    THREE TRACKS OF EDVISOR

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    THREE TRACKS OF EDVISOR Just In Time Performance Support

    Solve a people management and/or leadership problem; Edvisor provides immediate access toover 150 online best-thinking and best-practices management performancesupport modules,managers can have access of modules by topic, alphabetically or via a keyword searchengine. Module include company-designed learning tools, online simulators and interactivecases, and external materials consistent with company approaches and models

    Managing@IBM Learning Lab

    Prepare for attending classroom learning lab. Managers use Edvisor to create their ownpersonal pre-work skills curriculum for a 2day Managing@IBM Learning lab- a faceto-face

    workshop.

    Manager Development Planning

    Work on long-term leadership and management development. Managers use Edvisor todesign a personal, long-term development plan. Edvisor interviews the manager, asksquestions about his/her current business conditions, and analyzes his/her 360 surveyfeedback. By incorporating this information, Edvisor creates a recommended PersonnelManager Development Plan [MDP]. This MDP provides immediate online access to thedevelopment offerings the manager needs to improve his/her leadership competencies, andtracks his/her progress through the plan. The MDP continues throughout the managerscareer, and can be modified whenever desired to meet changing business needs or personalgoals.

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    By implementing the above programs, IBM was able to reduce its training

    budget as well as improve employee productivity significantly. In 2000,Basic Blue saved $16 million while Sales Compass saved $21 million. In

    2001, IBM saved $200 million and its cost of training per-employee

    reduced significantlyfrom $400 to $135.

    E-learning also resulted in a deeper understanding of the learning contentby the managers. It also enabled the managers to complete their classroom

    training modules in lesser time, as compared to the traditional training

    methods used earlier.

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    Question 1. E-learning would never be able to replace traditional

    classroom training. In the light of above statement,

    compare and contrast the traditional methods with that

    of e-learning to train employees in an organization.

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    The focus should be on using the appropriate format forthe appropriate learning objectives, circumstances,

    budgets, etc

    Though training through e-learning was very

    successful, IBM believed that classroom training wasalso essential to develop people skills.

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    QUESTION 2

    Explain in detail how IBM implementedbasic blue and Managing @ IBM e-learning

    programs to train managers. Compare the

    two programs and identify the factors that

    differentiate them.

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    First tier:

    The managers were divided into groups of 24 members each. Each group then entered thefirst tier of the Basic Blue program. The content for first tier was delivered through IBM sintranet. The first tier trained them on the fundamental skills required to be an IBMManager and offered just in time performance support

    Second tier:

    Here the managers were provided with simulated situations ,senior managers trained themanagers on line. The situation helped the managers to learn about employee skill building

    ,compensation and benefits ,multicultural issues, work life balance issues and businessconduct in an interactive manner.

    Third tier:

    In this tier the members of the group started interacting with each other on line. This tierused IBM s collaboration tools such as charts, e-learning Team Rooms, Customer Roomand Lotus learning Space. Using these tools, employees could interact on line with theinstructors as a well as with peers in their groups.

    Fourth tier:

    The fourth tier composed of classroom training program known as Learning Lab. By thetime the managers reached this tier they all reached a similar level of knowledge bymastering the content in the first three tiers.

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    Basic blue four tier model

    1999 IBM launched pilot basic blue Focusing on new managers

    75% of training online and remaining

    traditional classroom E-learning part include articles, simulation,

    job aids and short courses

    Based on 4 tier blended learning model

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    Basic blue

    Tier 1. learning from information

    Tier 2. learning from interaction

    Tier 3. learning from collaboration

    Tier 4. learning from collocation

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    Managing@ IBM

    Introduced in 2001 Focussing on experienced managers

    Focussing on leadership and people

    skill

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    Advantages of e-Learning Class work can be scheduled around personal and professional work,

    resulting inflexible learning.

    Reduces travel cost and time to and from school

    Learners may have the option to select learning materials that meets theirlevel of knowledge and interest

    Learners can study wherever they have access to a computer and Internet Self-paced learning modules allow learners to work at their own pace

    Flexibility to join discussions in the bulletin board threaded discussionareas at any hour, or visit with classmates and instructors remotely in chatrooms

    Different learning styles are addressed and facilitation of learning occursthrough varied activities

    Development of computer and Internet skills that are transferable to otherfacets of learner's lives

    Successfully completing online or computer-based courses builds self-knowledge and self-confidence and encourages students to takeresponsibility for their learning

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    Disadvantages of e-Learning Unmotivated learners or those with poor study habits may fall

    behind

    Lack of familiar structure and routine may take getting usedto

    Students may feel isolated or miss social interaction thus theneed to understanding different learning styles and individuallearner needs.

    Instructor may not always be available on demand

    Slow or unreliable Internet connections can be frustrating

    Managing learning software can involve a learning curve

    Some courses such as traditional hands-on courses can bedifficult to simulate