IBM’s Global Talent Management Business Caseyniyazigmu.weebly.com/uploads/5/7/5/8/57582051/ibm.pdf!0!! Youliduzi!Niyazi!EDIT!706!!! ! IBM’s Global Talent Management Business Case:

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IBM’s Global Talent Management Business Case:

Motivational Strategy Development Mentor Program for Middle

Manager Development

George Mason University

Youliduzi Niyazi

Fall EDIT 706

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Business Case Table of Contents !

Table!of!Contents!EXECUTIVE(SUMMARY(((.......................................................................................................................(2(

INTRODUCTION(......................................................................................................................................(3(

STATEMENT(OF(THE(GAP(AND(MEASURES(OF(SUCCESS(...........................................................(3(

THE(PROBLEM(........................................................................................................................................(3(

THE(PURPOSE(OF(THE(PAPER((..........................................................................................................(5(

JUSTIFICATION(.......................................................................................................................................(6(

PROJECT(PLANNING((.............................................................................................................................(8(

MSD'S(GANTT(CHART(.........................................................................................................................(11(

FINANCIAL(METRICS(...........................................................................................................................(14(

ASSUMPTIONS((......................................................................................................................................(14(

RISKS(........................................................................................................................................................(15(

SCENARIO(...............................................................................................................................................(15(

BUSINESS(IMPACTS(.............................................................................................................................(17(

CONCLUSIONS(AND(RECOMMENDATIONS(...................................................................................(17(

REFERENCE((...........................................................................................................................................(18(!!!!!!!!!!!!!!!


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Executive Summary

Problem: While IBM has been investing on development of the top-tier leadership, gaps

and duplication in the talent is reflecting that there is a room for middle management

development at IBM, as middle managers are those who can motivate the employees to

“seek a mentor” to have the expected informal mentorship with leaders to make the

existing leadership programs to be collaboratively and successfully run.

Recommendation: This document is the business case for investing in cost-effective

middle manager development program, which aims to recommend an online mentoring

program for motivational strategic development for middle management development at

IBM under the same framework of WMI and the Enterprise Taxonomy for developing

leaders at the top-tier, not only to improve middle managers knowledge and skills of

understanding the importance of motivating existing workforce and help them to identify

high-performing employees from the to help them to be groomed for future mid

management successions, but also to be equipped with knowledge and skills to integrate

factual information with theoretical information to derive a sensible solution to a

motivational problem within a limited time frame, to plan the strategies of motivational

action in response to a specified motivation problem, and to create motivational strategic

plan for sustaining motivation in a specified workplace situation to build a highly positive

team culture.

Business impact: As a tangible benefits, estimated cost of US$81.25 million, this

program will be projecting approximately 105.34% ROI which is around 9% increased

than the ROI from the existing taxonomy.


The major impact of this program would be the middle mangers, who are equipped with

the most important skills and strategies to improve the existing workforce’s motivation

based on individual’s needs, values, and situations. This program also encourages middle

mangers to become more motivated and engaging at their work.

Introduction

In his article of “It's Not The CEO. It's The Leadership Strategy That Matters”, Josh

Bersin writes:

IBM went through a wrenching transformation as Lou Gerstner came in and

changed the company from a “seller of solid technology” to a “deliverer of high

value services.” This meant bringing in many new leaders, building a consulting

mindset, and driving a different type of innovation and creativity into the

management team. Sam Palmisano had much to do with driving this forward.

Now the company has deep roots of leadership from which to grow this base. And

Ginny Rometti can build and evolve this leadership into the future. (Josh, 2012)

Josh’s article states “regardless of who the CEO may be, operational execution takes

place at the mid-level and supervisory level. When these individuals are well aligned,

coached, and trained, the business thrives” (Josh, 2012).

Statement of the Gap and Measures of Success

The problem


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Boudreau’s article (2010) has stated that in 2003, with the “emergence of GIE, a

number of signals within IBM suggests a room for in how the organization measured,

tracked, deployed and developed the workforce” (Part A., P. 6) the problems IBM

confronting on its direction to become globally optimizing service delivery were “Low

Utilization Rates and Needless Talent Gaps and Surpluses, Bottlenecks in Service

Delivery, Disconnected Talent Supply Sources, Missed Opportunities for Meaningful

Workforce Development, The Language of “Work” Was Insufficient “( Part A, P. 7to 10)

As an answer to these problems IBM has launched The Workforce Management Initiative

and Enterprise Taxonomy. The implication of this framework was that “a great deal of

the day-to-day work involved in workforce management would reside with managers,

team leaders and employees and more than 80% of IBMers have successfully used this

system.” (Boudreau, 2010, Part C, p. 1)

Currently, IBM has more than 400,000 employees and more than 40,000 managers, and

50%!of!them!has!more!than!5!years!working!experience, across different countries in

numerous company verticals, IBM already has internal talent and skills to fill these new

management positions. In her talk on the IBM Leadership Development Framework in

2012, Barbara Lombardo stated that our leadership development program with our

leaders at levels are very self-aware, motivated for the collaborative mentoring program

and are actively involved in the delivering the culture. She also said that leaders should

encourage our people to seek mentors (Barbara, 2012). It means that workforce needs to

be encouraged and motivated to have that kind of informal mentorship with leaders.

However, the main problems IBM currently has, which is related to human capital are too


many needless employees and gaps and duplication in the talent reflect that there is a

room for middle management development, regardless of the fact that middle managers

are those who can motivate the employees to “seek for a mentor” (Barbara, 2012) to

make the existing leadership programs to be collaboratively and successfully run.

The purpose of the paper

This paper document is the business case for investing a cost-effective middle

manager development program, which aims to recommend mentoring program for

motivational strategic development program for middle management development at

IBM under the same framework for developing leaders at the top-tier, not only to

improve middle managers knowledge and skills of understanding the importance of

motivating existing workforce and identify high-performing employees from the to help

them to be groomed for future mid management successions, but also to be equipped with

knowledge and skills to Integrate factual information with theoretical information to

derive a sensible solution to a motivational problem within a limited time frame, to plan

the strategies of motivational action in response to a specified motivation problem, and to

create motivational strategic plan for sustaining motivation in a specified workplace

situation to build a highly positive team culture.

Justification:

According to Boundless, (2014) “Managers are classified according to a hierarchy

of authority and perform different tasks”. “They are accountable to the top-level


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management for their department's function, and they devote more time to organizational

and directional functions than upper management. A middle manager's role may

emphasize:

•! Executing organizational plans in conformance with the company's policies and

the objectives of the top management;

•! Defining and discussing information and policies from top management to lower

management;

•! Most importantly, inspiring and providing guidance to lower-level managers to

assist them in performance improvement and accomplishment of business

objectives.

Middle managers may also communicate upward by offering suggestions and feedback to

top managers. Because middle managers are more involved in the day-to-day workings of

a company, they can provide valuable information to top managers that will help them

improve the organization's performance using a broader, more strategic view.”

(Boundless, 2014) The leadership model at IBM core competencies lies in its people .For

a long-term perspective, the mid-level managers play a critical role in its business

performance. “Because middle managers work with both top-level managers and first-

level managers and they tend to have excellent interpersonal skills relating to

communication, motivation, and mentoring. Leadership skills are also important in

delegating tasks to first-level managers” (Boundless, 2014)

Financial metrics of Current state of IBM reflects that it really needs to switch its

direction to the development of its existing middle management to improve its existing


employees’ development and motivation. As we can see from the chart below the

numbers are getting down on the financial reports and it is a signal for IBM to have an

action.

Net income from continuing operations for the twelve months ended December 31, 2014

was $15.8 billion compared with $16.9 billion in the year-ago period, a decrease of 7

percent.

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Financial metrics from IBM’s 2014 Report of Fourth<Quarter!and!Full<Year!Results

has shown that “the!Americas’!fourth<quarter!revenues!were!$11.1!billion,!a!decrease!

of!9!percent!(down!4!percent,!adjusting!for!divested!businesses!and!currency)!from!

the!2013!period.!!Revenues!from!Europe/Middle!East/Africa!were!down!13!percent!

to!$8.0!billion!(down!1!percent,!adjusting!for!divested!businesses!and!

currency).!!Asia<Pacific!revenues!decreased!17!percent!(down!2!percent,!adjusting!

for!divested!businesses!and!currency)!to!$4.9!billion.”!!

The leadership model at IBM focuses on global citizenship, collaboration, action-

orientation, customer value, and innovation. It!has!three!core!values,!which!are,!

dedication to every client's success, innovation that matters, for the company and for the


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world, trust and personal responsibility in all relationships. IBM’s leadership

development is important and based on the workforce development. Middle managers

need strong skills in execution of this leadership development program to approach the

globally integrated end-to-end solution towards the problems IBM facing. Because they

are responsible for execution, turning senior leaders’ vision for the organization into

reality. They are the people who are running an entire business, or successfully

introducing and managing the changes. They are the key to successfully executing the

business strategy.!Therefore implementing a “rich and extensive learning experience”

(Mantyla, 2001) for its existing middle level managers worldwide not only avoid the

duplication of talent but also improve the workforce development through middle

managers effects on the existing workforce.

Project Planning

Project aim: Improving middle management development through improving middle

managers motivational strategies and knowledge.

Problem definition: WMI is working very well with its programs to develop top-tier

leadership, However the financial metrics of IBM’ current states has been showing that

there is a room for the middle management development to leverage the existing power

of WMI to improve workforce’s motivation.

Program process:

Step1. Developing a business case

Step2. Developing the program infrastructure and components

Step3. Selecting participants


Step4. Conducting program sessions

Step5. Evaluating adjusting and continuing

Target audiences: 100 course per year, 80 participants for each course. Total 8000 middle

mangers from all around the world will be trained each year.

The project team: Three members of HR, an instructional designer, an LMS designer and

an external industrial relationship consultant and coordinator

Program format: The just in time learning program and Online Learning Management

System can be best choice for this program “to lessen costs while providing greater value.

Online learning solutions, such as mentoring platforms and social learning tools, support

just-in- time learning while potentially reducing the administrative costs of development

programs.” (Talent Development,. n. d., )

Measurements: Qualitative measures: Anecdotal evidence, surveys of participants at the

six-month and one-year rank, written evaluations by mentee pre-and post- program and

quantitative measures: financial impact, promotion rates of both employees and low level

managers will be applied

Motivational!Strategy!Development!(MSD)!

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Industry:!IBM!Corporation!!

Target!Audience:!40,000!middle!

managers!

Cost:!$85!million!for!five!years!

ROI!from!this!Project:!105.34%!!

Program Aim

The goal of creating this motivational strategy development program for middle

management is to give middle level mangers at IBM the real world experience of

understanding the employees’ needs, values and situations to identify and handle

motivational problems in the workplace.

Program!objectives!!

Within this content area, learners will be able to:

•! Explain the importance of knowledge and understanding to motivation.

•! Identify positive and negative motivators appropriate to a specified motivation

problem.

•! Integrate factual information with theoretical information to derive a sensible

solution to a motivational problem within a limited time frame.

•! Plan the strategies of motivational action in response to a specified motivation

problem.

•! Create motivational strategic plan for sustaining motivation in a specified

workplace situation.


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Mentoring Activities

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Self Assess

Issues Test

Follow Up!

Mentoring participants complete a thorough self-assessment by

using benchmarking exercises. By completing such a

document, the mentors are able to be both facilitator and

enabler to those skill areas that require the most attention.

Participants are given situations on potential future activities

such as skills to identify positive or negative motivator

problems among employees, knowledge and skills to integrate

factual information with theoretical information to derive a

sensible solution to a motivational problem within a limited

time frame. And work through them with the mentors. The

emphasis is on self-direction, and has given participants

awareness of their own development.

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Support processes low levels of activity after the exercise, as

well as to encourage continued career progress throughout the

organization as a whole.

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!MSD’S GANTTCHART

Date Task Name HR Activity

9/ 15th Submitting the Business Case

•!Project Team •!HR Department •!All the non-

executive employees

MSD is motivational skill development program for middle managers at IBM

9/15th – 10/15th

Data collection (Surveys and interviews)

•! Project Team

Project team, all HR staff and all Middle level managers

10/16th – 12/ 16th

Data Analysis

•! Project Team

Identify and confirm source of mentees:

•! Determine age range middle managers to be trained

•! How often will they communicate?

•! Do all mentees have access to e-mail?

01/01/16- 02/01/16

Software Readiness, Technical Check

•! IT Install the new contents to the existing software or implement the existing software, (Online Learning Management System)

02/02/16-03/02/16

Intervention Selection

•! Project team

List the intervention of performance improvement based on the learning needs and gap analysis

03/03/16-04/03/16

Final Intervention •!Project team •!Representatives

of middle managers

Groups rank and agree on priority of the interventions and document the final intervention

04/04/16-06/04/16

Integration •! Project Team

Integrate the final intervention with the revised taxonomy


Since October, 2015

Formative Evaluation

•!Project team •!CEO and

Executive Managers •!Mentors

Feedbacks from executive-level managers and performance experts (mentors or other mentees)

04/18-04/29 2 hours /week

Phase 1: Introduction

•!Project team •!Middle

managers

F2F training with follow online training after class: Identify the Importance of motivation. Intrinsic incentives Incentives external to the working environment The relational character of incentives Social reinforcements

05/01/16-05/13/16 2 hours /week

Phase 2: Negative and positive motivators

•!Project team •!Middle

Managers

Online mentoring with follow online training after class: Learn to identify the negative motivators at work base don individual needs, values and situations

•! Punishment •! Pain •! Suffering •! Discipline

Threat

05/16/16-05/27/16 2 hours /week

Phase 3: Maintaining Motivations

•!Project Team •!Middle

Managers

F2F training with follow online training after class Goal setting Influence of Groups on individual motivation Social loafing Employee motivation in the workplace by managers Expectations Job design

Motivation for a personal trainer


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05/30/16- 06/10/16

Phase 4: Application

•!Project team •!HR department •!Middle

Managers, •!Executive Managers

F2F training with follow online training after class: Space management Time management Staff appraisals Expectations

06/13/16 12/ 16/16-

Phase 6: Post-program evaluation:

•!Project team •!HR department •!Middle

Managers, •!Executive

Managers

•! Post-surveys with Mid managers

•! Focus groups mentees or targeted mid managers

•! Interviews with program coordinators; and

Surveys and interviews with mentors.

! Financial Metrics

This Face-to –face and online mentoring program will be under the existing

framework of IBM’s leadership development program for its top-level leaders, which

includes the Workforce Management Initiative System and Expertise Taxonomy. This

enterprise business transformation initiative has been lunched between 2002 and 2009

with the investment of $ $230 Million over five years, IBM received ~US$1.5 billion in

benefits from the WMI. US$453 million of these significant benefits were hard benefits,

flowing directly to IBM’s bottom line (Boudreau, 23)

ROI = (Financial benefit from training – total cost of training) / (Total cost of training) X 100%

WMI-ROI = $453 – $230/$230 x 100 = 96.96% / 5 =19.392% each year


It is estimated that the fiver year cost of mentoring program for middle management

development is $81.25 million, which is approximately 35% of the investment of the

original Taxonomy, which is US$230million here are the details:

Training group is consisted of two consultant and eight experiences champion executives

with deep knowledge and skills. We estimate to spend $2000 stipends, $200,000 for two

consultant and $50,000 budget for items such as staff salaries and benefits, operating

expenses: program activities, occupancy/office. Total the estimated cost of this training

program will be US $81.25million.

Mentor program ROI = 166.84- 81.25/81.25 x 100= 105.34%

Assumptions!

•! More!and!more!workforce!will!be!actively!seeking!mentors!to!improve!

business!personal!and!organizational!development!!

•! Mid!managers!skills!and!knowledge!to!motivate!their!employees!will!be!

provided!opportunities!for!employee!to!understand!of!the!importance!of!

learning!!

•! Utilization rate will t be increased

•! Leaders will quickly identify and deploy needed talent from existing highly

motivated talent

•! Mid managers will be motivated to improve the existing workforce

•! May have less or no turnover rate in mid mangers and existing employees because

they will become more engaged.

•! Communication will be improve cross culturally

•! Enable middle mangers to improve employees’ personal development


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Risks of not evaluating middle management training

Not including middle or lower management who has skills and knowledge in

motivating existing workforce will cause too many unneeded, “on the bench” less

motivated employees at work. There are will have enough employees who “seek”

for mentors to be actively engaged in the leadership development program under

the framework of WMI.

Scenario/Narrative Visualization of intervention potential, risks, consequences

This scenario for employee motivation emphasizes that middle management

development has great impact on the workforce development. For example, Lucy is a

full-time employee at IBM. Usually she is very energetic, efficient, cheerful, corporative,

accurate and productive. But one day she received news that her husband overseas is

cheating on her. Since then she became totally different person in her workplace,

increasingly withdrawn, gloomy, slow to complete tasks, and forgetful. Whom do you

think she could comfortably voice her situation in her workplace for help? Obviously,

this situation goes to any lower or middle mangers on duty first. Therefore it is important

to develop middle mangers to become skilled and knowledgeable to create appropriate

motivational strategies immediately to the employees.

A. If Lucy has a manger, who is very out going and energetic person. She likes to

encourage her employees. She sometimes talk with her employees ask about their needs

and values. It is really easy to exchange information with her. In this situation we can

assume that Lucy’s manager will come to Lucy and ask her situation and try to help her

to over come the difficulties. She might have give Lucy a short vacation or day off. In a

word, a improved middle management team who knows how to deal with employees


issues and motivate them based on their needs, values and situations will help IBM’s

leadership development under the frame work of WMI, because WMI’s base is lays on the

IBM’s workforce.

B. On the contrary if her manager is very tough, serous, and careless person who doesn’t

want to talk with his/her employees properly. Then it can be predicted that Lucy will end

up resigning from her job or being fired. The company would lose such an talent just

because of the mangers’ lack of skills to motivate its employees. Therefor it is important

for IBM to improve workforce motivation through training its middle managers’

motivational skills because Again WMI’s base is lays on the IBM’s workforce and “WMI enables

the optimal workforce strategy and integrated supply chain for human resource and talent

management.” (Boudreau, 2010, Part A, p. 11).

Business Impact

Lucy, Depressed

employee

A manager who took the MSD

program

A manager who didn’t take the MSD

program

Do you know Lucy? Yes she is one of my best

employees

Umm, she is just my employee

Does she look good? No, not at all. I don’t know

What happened to

her?

I know and I already talked with

her

I don’t really care her personal life

Business impact Lucy will be back her active

working mood after some break

Lucy may end up losing her job.

The major impact of this program would be the middle mangers who are equipped with

the most important skills and strategies to improve the existing workforce’s motivation


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based on individual’s needs, values, and situations. This program also encourage middle

manger themselves to become more motivated and engaging at work.

Conclusion and Recommendations

IBM needs to have a middle management team of highly skilled and

knowledgeable to have a highly engaged and motivated workforce to continue to assess,

identify, and develop potential leaders in a manner that will enhance company assets.

IBM’s self-aware leadership development requires its employees to be more motivated

enough to “seek for mentors” and middle managers and manger who are day-day work

with employees can help the existing workforce to become more active learners and the

real base for the IBM’s important leadership development which bases the workforce

development.

Reference:

ASC!DISTANCE!EDUCATION.!(n.d.),Motivation!Retrieved Arpil 10, 2015 from!

!!!!!!!!!!!!!!http://www.acs.edu.au/courses/motivation-387.aspx

Boudreau, J.W. (2010). IBM’s Global Talent Management Strategy: The Vision of the

Globally Integrated Enterprise. Society for human resource management. Case

study- part A



study- part B




study- part C

Boundless. “Middle-Level Management.” Boundless Management. Boundless, 08 Dec.

2014. Retrieved 02 May. 2015 from

https://www.boundless.com/management/textbooks/boundless-management-

textbook/introduction-to-management-1/management-levels-and-types-

18/middle-level-management-119-1548/

https://wiki.state.ma.us/confluence/download/attachments/153649467/CLC_Mentoring_P

rogram_Structure_and_Tools.pdf

https://www03.ibm.com/press/us/en/pressrelease/45884.wss

Josh, Bersin. (2012). It's Not The CEO, It's The Leadership Strategy That Matters,

Retrieved from http://www.forbes.com/sites/joshbersin/2012/07/30/its-not-the-

ceo-its-the-leadership-strategy-that-matters/

Lombardi, Barbara. (2012). IBM Leadership Development Talk. Retrieved from

https://vimeo.com/27267102

Mantyla, K. (2001). Blending e-learning. American Society for Training and

Development.


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Talent Development. (n.d.), The ROI of mentoring, coaching and other employee

development programs Retrieved April 20, from 2015!

https://hru.gov/Documents/MentoringStudio/Talent_Development_Ebook_-

_The_ROI_of_Mentoring_Coaching_and_Other_Employee_Development_Progra

ms.pdf

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