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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