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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