A Case Study ANALYSIS OF IBM’S Diversity Strategy Professor David A. Thomas & Research Associate Ayesha Kanji

1. 1
IBM’S DIVERSITY STRATEGY
A CASE STUDY ANALYSIS OF
Professor David A. Thomas & Research Associate Ayesha Kanji

2. I
COMPANY OVERVIEW

3. Headquarters
Founded
Founder
Armonk, New York,
United States
June 16, 1911
Charles 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

4. Headquarters
Founded
Founder
Armonk, New York,
United States
June 16, 1911
Charles 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

5. IBM’s Business Model

6. II
STATEMENT OF THE
PROBLEM

7. MAIN
PROBLEM
IBM had not yet
connected itself to
the marketplace
because its
tremendous
diversity was
being minimally
utilized.

8. Diversity Issues In
The Workplace

9. Low level of diversity
in the senior ranks of
the company

10. Untapped talent pool
especially pertaining to
talented minorities

11. Limited minority
representation in areas
such as computer
sciences and engineering

12. III
AREAS OF
CONSIDERATION

13. STAKE
HOLDERS
Any
constituencies in
the organization’s
environment
affected by the
organization’s
decisions and
actions

14.  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

15.  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

16.  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

17.  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

18. 1
EMPLOYEES
 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

19. APPLICANTS
BUSINESS
PARTNERS
COMPETITORS
MARKETERS
2
APPLICANTS
 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

20. 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

21. IV
COURSES OF ACTION

22. “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

23. 8 IBM Task Forces

24. 8 IBM Task Forces
1.Asian
2.Black
3.Gay and Lesbian
4.Hispanic
5.Native American
6. People with
Disabilities (PWD)
7. White Men, and
8.Women

25. 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

26. 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

27. 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

28. 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

29. “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..”

30. DISADVANTAGES
Costly,
Guarantee of it that it will be successful,
Moral hazard,
Political diversity,
Culture and religion

31. OTHER COURSES OF ACTION
Five-Minute Drill
Initiative for senior executives
Advertising
Building Business Partnership
 The creation and expansion of BAP
(Business Alliance Program) and PX
(Partnership Executive) program

32. Recommendation
Keep reaching
out.

33. VI
COMPANY UPDATES

34. 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.

35. In 2015, its
awards are

36. Forbes: No. 5 most valuable brand.
DiversityInc.: Top 10 Companies for Global
Diversity
National Association of Female Executives: Top
50 Companies for Female Executives
Working Mother: Top 10 Companies for
Multicultural Women
Working Mother: 100 Best Companies

37. Workplace Pride Foundation:
World’s Most LGBT-Inclusive
Company
Human Rights Campaign
Foundation: Best Places to Work
for LGBT Equality
Stonewall Global Equity Index:
Star Performer LGBT-friendly
workplace

38. 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