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““A View from the Top: A View from the Top: HR InnovationHR Innovation””
Presented by Khun Suphajee SuthumpunCountry General Manager
IBM Thailand Company Limited
Driving the Innovation Culture
Suphajee SuthumpunCountry General ManagerIBM Thailand Co., Ltd.
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© 2006 IBM Corporation3
Agenda
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It‘s time to be an innovator
IBM : An Innovation Company
Workplace of the 21st Century3
© 2006 IBM Corporation4
11 It’s time to be an Innovator
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November 23, 2006 © 2006 IBM Corporation5
"We will fight our battles not on the low road to commoditization, but on the high road of innovation."
– Howard Stringer, Chairman and CEO, Sony
"Government support for scientific research is not enough. We also need to make sure that scientific innovation gets translated into applied uses in business."
– Tony Blair,Prime Minister, UK
"Continuous innovation and the full, unfettered expression of human capacity are indispensable to Japan's economic rebirth and revitalization."
– Junichiro Koizumi,Prime Minister, Japan
"Constant reinvention is the central necessity at GE…We’re all just a moment away from commodity hell."
– Jeffrey ImmeltChairman and CEO, GE
“More and more CEOs are adopting an innovation agenda.”– Sam Palmisano
"We are at a pivotal moment for the company. If we don't become an innovator, we could end up like one of those Japanese companies, mired in difficulties.“
– Kim Byung CheolVice President, Samsung
© 2006 IBM Corporation6
1972the world is round
“The Blue Marble”Photo taken from Apollo 17
Last human mission to the moon
2006the world is flat
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© 2006 IBM Corporation7
20thCentury
New Model for the 21st CenturyInternational Exporting
© 2006 IBM Corporation8
20thCentury
New Model for the 21st CenturyMultinational Country Silos
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© 2006 IBM Corporation9
21stCentury
New Model for the 21st CenturyThe Globally Integrated Enterprise
© 2005 IBM Corporation10
Operations are becoming more global
Kuala Lumpur
Manila
DalianJapan
Shanghai
Brisbane
Okinawa
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Innovation that Matters | It’s great to be an Innovator © 2006 IBM Corporation11
The Global CEO Study 2006 is the largest CEO-level study of its kind Americas
25%Asia Pacific 40%
Europe 35%Purpose: Understand role of innovation on CEOs agenda
Innovation Definition: “New ideas or current thinking applied in fundamentally different ways resulting in significant change”
Innovation focus:– Products, Services, and Markets– Business Models– Operations
Scope: 765 CEOs and business leaders representing all major countries
© 2006 IBM Corporation12
IBM Global CEO Survey
Innovation goes beyond products and services.
External collaboration is essential.
Innovation starts at the top.
Myth: Innovation means developing new products and services
Myth: Innovation is too critical and proprietary to involve outsiders
Myth: Responsibility for innovation should be delegated
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Innovation that Matters | It’s great to be an Innovator © 2006 IBM Corporation13
Have one today
Are actively collaborating
Manage change well
The Innovation Gap
83% 20%
76% 51%
80% 50%Want to foster a culture of innovation
Value collaborative innovation
Know their businessmodel must change
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Sources of New Ideas and Innovation
Academia
Associations, trade groups, conference boards
Competitors
Consultants
Customers
Business partners
0515253545% 45%3515 2550
Internet, blogs,bulletin boards
Other
R&D (internal)
Sales or service units
Employees(general population)
Think tanks
External Internal
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What stands in the way?
Obstacles to Innovation
0 10 20 30 4040 30 20 10 0
Government and otherlegal restrictions
Economic uncertainty
Inadequate enabling technologies
Insufficient accessto information
Unsupportive culture
Limited funding
Internal workforce issues
Process immaturity
Inflexible infrastructure
External workforce issues
External Internal
November 23, 2006 © 2006 IBM Corporation16
management and culture
policy and society
business processes
services
products
business models
It’s time to innovate
IBM Global CEO Study 2006
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© 2006 IBM Corporation17
22 IBM : An Innovation Company
October 4, 2006 © 2006 IBM Corporation18
IBM: An Innovation Company
1929 – Card Punch
1934 – Accounting Machine
1961 – Selectric Typewriter
1952 – First Mainframe
1970 – System 370
1981 – Personal Computer
1945 - $142M 1957 - $1.2B 1968 - $6.9B 1981 - $29.1B 1994 - $64.1B 2005 - $91.1B
2006 – Playstation 3
1906 – Bundy Time Recorder
1926 – Scale
Global Services
1995 – IGS formed
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November 23, 2006 © 2006 IBM Corporation19
IBM 1984
“The IBM Era Is Over ... what was once one of the world's more vaunted high-tech companies has been reduced to the role of a follower, frequently responding slowly and ineffectively to the major technological forces reshaping the industry.”
The New York TimesDecember 16, 1992
IBM 1992
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March 8, 2004
“…once-sluggish IBM surges onto the top ten list.”
Fortune MagazineMarch 8, 2004
© 2006 IBM Corporation22
33 Workplace of the 21st Century
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Transforming IBM toward the 21st century workplace
Capability
Culture
Climate
CareersA Great
Company
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Culture
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The IBM Culture
Paternalistic
Insular
Entitlement
Lost Hunger/Passion
Bureaucratic
Empowerment
Market Focus
Meritocracy
Sense of Mission
Exploit Knowledge and Expertise
26 © 2006 IBM Corporation
SetSet aggressive targetsaggressive targets and focus on winningand focus on winningWork byWork by principles, not rulesprinciples, not rulesEmbraceEmbrace change + diversitychange + diversityFeelFeel urgencyurgencyRRemainemain openopen to new ideasto new ideasPay constant attention toPay constant attention to improving skillsimproving skillsHold ourselvesHold ourselves accountableaccountable for individual,for individual, team and IBM resultsteam and IBM resultsUnderstand Understand work-life balancework-life balance
AND AT IT's CORE: AND AT IT's CORE: PASSIONPASSION
highhigh performanceperformance culture -culture - some characteristicssome characteristics
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27 © 2006 IBM Corporation
7 Characteristics of High Performance Culture
A. We act and lead with integrity
B. We put client & IBM first. Our unifying focus is results: in client satisfaction; share leadership; and revenue & profit growth.
C. We trust in each other.
D. We are open to change, and recognize when it’s needed.
E. We tell it straight. No rationalization. No spinning.
F. We hold high standards for ourselves and the teams we lead; we are accountable.
G. We are in this to win and to lead. We celebrate & reward winning.
October 4, 2006 © 2006 IBM Corporation28
From High Performance Cultureto
Innovation Culture
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November 23, 2006 © 2006 IBM Corporation30
InnovationJam
More than 140,000 people participated in Phase One.
– 4.2 million page views.
– 37,000 ideas from 77 countries.
67 clients, business partners and academic institutions participated worldwide
12,690 family members
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© 2006 IBM Corporation31
Opened IBM’s business and technology forecasting processes for the first time
– Insights shared openly and opportunities pursued collaboratively
GIO 2004: Three primary focus areas– Healthcare, Government, Work/Life Balance
Focus expanded in 2005-06– Developing new markets and capitalising on
business opportunities
– Future of the Enterprise, Environment & Energy, Transportation & Mobility
Global Innovation Outlook
November 23, 2006 © 2006 IBM Corporation32
Climate
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33 © Copyright IBM Corporation 2006
IBM Human Resources
Elements of a Healthy ClimateElements of a Healthy Climate........
Clarity: IBMers know their mission. IBMers understand their role in IBMers know their mission. IBMers understand their role in achieving it.achieving it.
Standards: IBMers do not tolerate mediocrity. IBMers are constantly IBMers do not tolerate mediocrity. IBMers are constantly challenged.challenged.
Responsibility: IBMers operate with autonomy. IBMers take risks.IBMers operate with autonomy. IBMers take risks.
Flexibility: IBMers don't create bureaucracy. IBMers invent new ways to IBMers don't create bureaucracy. IBMers invent new ways to win. win.
Rewards: IBMers are recognized on the basis of their performance. IBMers IBMers are recognized on the basis of their performance. IBMers thrive amid criticism and threats.thrive amid criticism and threats.
Team Commitment: IBMers stand together. IBMers take pride in their team. IBMers stand together. IBMers take pride in their team.
IBMers awake each IBMers awake each morning energized, morning energized, focused on the focused on the customer and the customer and the competition, and competition, and ready to win!ready to win!
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Productsand
Services
BusinessGoals &Strategy
OrganizationalStructure
ManagementTeam
LeadershipCompetencies
ManagementPractices
LeadershipStyles
Revenue,Profit, &
Shareholder Value
OrganizationalClimate
28-36%
Leadership Fram eworkLeadership Fram ework
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35 © Copyright IBM Corporation 2006
COERCIVE - Draws immediate response from employees - directive
AUTHORITATIVE - Motivates by focusing on how day-to-day activities support long-term goals and common vision
AFFILIATIVE - Supports employees in routine or stressful times by focusing on the human element of a situation DEMOCRATIC - Empowers people to make decisions about their own goals, creating greater teamwork and commitment
PACESETTING -Leads by doing vs.. inspiring or coaching others
COACHING - Builds self confidence and motivates by linking day-to-day work with personal long-term objectives
Managerial StylesManagerial Styles
36 © Copyright IBM Corporation 2006
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Career
© 2005 IBM Corporation38
Areas of expertiseJob roles
Consultant IT Architect
Project Management Technical Services
LogisticsProcurementFulfillment
Solutions SalesContracts & NegotiationsBusiness DevelopmentSales Operations
Communications FinanceAdministration Human Resources Legal
Market IntelligenceDistribution Channels
Integrated Marketing CommsMarketing Operations
TechnicianEngineer
Production
Engineer Technician
Software Engineer
Operations
IT and ServicesResearch &
development
Sales
ManufacturingMarketing
Supply Chain
Our Careers
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© 2005 IBM Corporation39
Technical / Professional Managerial /Executive
Leadership
Degree of businesscontribution
Set your goals Build yourexpertise
Dual career path
Manageyour career
Career growthOur Careers
© 2005 IBM Corporation40
Establish annual work objectives (PBCs)
Participate in learning activities
Assess skills & competencies / Updatedevelopment plan
Performanceevaluation
PEOPLE DEVELOPMENT
Checkpoint/ Feedback
Compensation & future opportunities
Our CareersManaging performance @ IBM
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October 4, 2006 © 2006 IBM Corporation41
Capability
October 4, 2006 © 2006 IBM Corporation42
The Foundational Competencies form the base for People Development and help to build the house of competencies necessary for achieving success .....
IBM Foundational Competencies
Profession-related
competencies
Role/job-related
competencies
LeadershipCompetencies
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Develop Effective SolutionsGenerate Innovative Ideas & SolutionBuild & Leverage relationships
among colleaques
Build client relationshipEnsure customer relationship
Taking Ownership
Teamwork & Collaboration
Adapt to changeManage TimeDeal to Stress
Foundation of CompetencyFoundation of Competency
Adaptability
Client Focus
Effective Communication
Creative Problem Solving
Drive to Achieve
Taking Ownership
Teamwork & Collaboration
Trustworthiness
Passion for the Business
Drive to Achieve
Taking Ownership
- Listen carefully to Others- Match Mode of
communications to situation
Accept responsibilityfor actions and decisions
Trustworthiness
Set challenging goalsPersist in the face of obstacle
Passion for the business
Passion for IBM’s Future
Developing IBM People Developing IBM People and Communityand Community
Strategic Risk TakingStrategic Risk TakingEmbracing Embracing Complexity and Complexity and ChallengeChallenge
Enabling Growth and Enabling Growth and PerformancePerformance
Informed JudgmentInformed JudgmentCollaborative Collaborative InfluenceInfluence
Earning TrustEarning TrustThinking HorizontallyThinking HorizontallyBuilding Client Building Client PartnershipsPartnerships
Trust and personal Trust and personal responsibility in all responsibility in all
relationshipsrelationships
Innovation that matters Innovation that matters –– for our company and for our company and
for the worldfor the world
Dedication to every Dedication to every clientclient’’s successs success
Passion for IBM’s Future
Developing IBM People Developing IBM People and Communityand Community
Strategic Risk TakingStrategic Risk TakingEmbracing Embracing Complexity and Complexity and ChallengeChallenge
Enabling Growth and Enabling Growth and PerformancePerformance
Informed JudgmentInformed JudgmentCollaborative Collaborative InfluenceInfluence
Earning TrustEarning TrustThinking HorizontallyThinking HorizontallyBuilding Client Building Client PartnershipsPartnerships
Trust and personal Trust and personal responsibility in all responsibility in all
relationshipsrelationships
Innovation that matters Innovation that matters –– for our company and for our company and
for the worldfor the world
Dedication to every Dedication to every clientclient’’s successs successIBM Values
LeadershipCompetencies
IBM Leadership Competencies
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HR Prioritiesin
High Performance Culture
IBM Human Resources
HR Priorities in a High Performance CultureHR Priorities in a High Performance Culture
ClimateClimate
Talent
Leadership
Differentiation
Team HR Makes it Happen!
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IBM Human Resources
HR Priorities HR Priorities
Talent:Talent:Ensure that IBM has the talent necessary to meet our customers' needs and recognize that Talent is a life cycle.
Differentiation:Differentiation:Implement and leverage differentiation as a key success factor of a high performance company.
Leadership:Leadership:Ensure we have a leadership team that gives IBM a competitive advantage in the marketplace. Diverse, at the right time and at the right place.
Climate:Climate:Create a healthy work environment that serves as the distinguishing factor in our efforts to attract, motivate and retain.
HR IBM ASEAN / South Asia
Climate:Climate:Create a healthy work environment that serves as the distinguishing factor in our efforts to attract, motivate and retain.
Healthy Climate @ IBMHealthy Climate @ IBMEmployee Relations ProgramsEmployee Relations ProgramsDiversity ProgramDiversity ProgramFlexible W ork OptionsFlexible W ork Options
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HR IBM ASEAN / South Asia
Talent:Talent:Ensure that IBM has the talent necessary to meet our customers' needs and recognize that Talent is a lifecycle.
Career ManagementCareer ManagementSkills Management CycleSkills Management CycleLearning @ IBMLearning @ IBM
HR IBM ASEAN / South Asia
Differentiation:Differentiation:Implement and leverage differentiation as a key success factor of a high performance company.
Performance ManagementPerformance ManagementRetention Retention Managing Poor PerformersManaging Poor Performers
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HR IBM ASEAN / South Asia
Leadership:Leadership:Ensure we have a leadership team that gives IBM a competitive advantage in the marketplace. Diverse, at the right time and at the right place.
Leadership FrameworkLeadership FrameworkTop Talent ManagementTop Talent ManagementDevelopmentDevelopment
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Your products?Your services?Your financial strength?Your customer base?Your supply chain?Your management systems?Your business model?Your history?Your brand?Your expertise?
How will innovation matter for you?And how can we help?
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