IBM: The Corporate Service Corps - Research Paper Example

IBM: The Corporate Service Corps List of Content Page Summary 2 Introduction 4 The Report 7 Conclusion 15 Recommendations 17 References 20 Summary The current trend of globalizing business creates more global organization models. In particular, the IBM is seeing the opportunity to pursue global integration due to some development in the world business such as free trade agreements, the availability of highly-skilled labor forces, communication channels which keep the world connected, the availability of economies fueled by service and technology industries, change on how people and organizations interacted. These are all good opportunities for IBM that it finally realized to transform itself in order to lead. With this, comes the idea of pursuing a globally integrated enterprise which is actually a deviation from the first models of global organization. Strategic business initiative is one of the main goals of IBM. They are not only after of establishing business partners and creating social values to emerging markets but it is important for them to create strategy that in the long run will make them a cut above the other emerging competitors. This strategy at present is the Corporate Service Corps (CSC) program. The main point of this paper is to know The Future Design And Longer-Term Impact On IBM Of CSC Program. Introduction Within its 100 years of existence in business, IBM without doubt is now a fully grown global organization which does not only operate in one nation but throughout 170 countries. In 2008, IBM’s total revenue reached to over $100 billion. In 1990s, IBM created a historic shift on the PC boom and computing decentralization. This led to decentralizing purchase decisions away from the traditional mainframe business of IBM. However, since it is the current trend in business that time in order to compete, then the IBM still pursued the system model which led to $8 billion annual net loss in 1993. This led to the formulation of idea to split IBM into smaller companies but Louis V. Gerstner, the Chairman and CEO in 1993 decided to keep the company together in order. IBM is well known for its strategic position in competing for computer sales especially in France and Germany. This strategy was significantly improved by the development of its technology and marketing skills in the company on a worldwide-covered basis (Porter, 1980, p. 275). IBM is always on the go to adapt to changes needed by the global business environment. In fact, IBM is adhering to the current trends in corporate citizenship and globalization. Now, the IBM decided to go for a business model that calls for global integration of its business. Part of this model is to ensure standard corporate values for the company to follow in the global setting. The best part where this can be implemented is to its human resource. Today, the current statistics available telling about the number of its employees tells around 380,000 people employed with IBM. There is no wonder why the company has seen the significance to invest on its manpower through leadership development program or known as Corporate Service Corps (CSC). The IBM is about recreate its corporate values. Samuel J. Palmisano, the current CEO of IBM is aiming to make IBM more globally integrated. With this goal, it changes the direction of the company. The IBM is in the paradigm shift looking forward to make use of the opportunity of the current trend in the global business. Corporate values are necessary for the company in order for it to work effectively. This is very important especially for those companies or organizations working in the global setting. IBM is an international company that does not only try to integrate global practices but try to enhance and equip leadership among its employees. The implementation of corporate values of IBM was a very crucial step in order to create a more systematic approach in penetrating its corporate strategies in the world. IBM is looking forward to operate in the international market in a way culture and other factors cannot stand as hindrances for its smooth-flowing operation. IBM foresees that one of the most essential factors it needs to take into account is the human resource. In the advancement of information technology, it would be now easy to integrate the whole system of IBM in the global perspective. However, the system cannot work by itself without the need to equip its human resource the leadership training and other substantial trainings they need. This leadership development program or Corporate Service Corps (CSC) is a form of assessment to high-potential employees in preparation to shifting of corporate values and strategic goals for the global integration. Corporate citizenship especially in IBM is a way to effective creation of innovative technology that could improve society. Global integration and corporate citizenship are two important ideas IBM has taken into account in order to pursue CSC program. In this regard, this paper tries to analyze the main concerned of IBM on the future design and longer-term impact of CSC program. In particular, the following concerned of IBM are addressed: How could IBM tell if the CSC was fully delivering on Palmisano’s overall goal of making IBM more globally integrated? What were the key metrics? What were the next steps for the CSC? How scalable was the program? What were the main risks to the model as it grew? The Report In this section, the future design of CSC program and its longer term impact of CSC program are discussed. The Future Design of CSC program The future design of CSC is very significant consideration in order to effectively promote it and make it as a reliable tool for IBM to obtain its corporate goals. There is no other way to look at the best future design but to try to take a glimpse at the experiences of participants in the CSC program. In this way, the company will gain enough understanding on how to do the program in the days to come. Future adjustments on the program will be easily set if the IBM can see the whole picture of how exactly the participants felt about it. The pre-work curriculum As shown in Table 1, it turned out that many participants have not actually understood how important is pre-work on the CSC program. Most of them realized that the pre work should have been the best part of the CSC program prior to its start (Marquis and Kanter, 2009, p. 12). This is an interesting point considering that the participants prior to the actual CSC program learned that they need to work in a new country, work on a new project with a new team, plus the different personalities they will experience including their own. These are not the only considerations they have to understand. Working in a new project and team in an unfamiliar country includes further awareness on one’s history and culture. Leadership Development As stated in Table 2, leadership development and change in strategic direction are very appealing impacts of CSC program to local partners. This is only a clear indication that the CSC program can be the best strategy in order to gain cooperation from local partners when it comes to leadership development and changing in strategic direction. This is also justified by the fact that some participants have actually appreciated that CSC program is able to provide them the teamwork exercise they need (Marquis and Kanter, 2009, p. 12). Other effects of CSC program on participants Based on the information shown in Table 3, the major effects of CSC program on participants were the following: Participants were able to appreciate differences in the world. Participants were able to understand the value of cross-cultural work. There was a remarkable increase in resilience among participants. There was a remarkable increase in cultural intelligence among participants. These changes are remarkable factors that will help participants understand even more the nature of business they will be working on with IBM. For instance, prior to the global integration strategy of IBM, it is important that its human resource is highly equipped with the basic understanding on the differences in the world, cross-cultural work, flexibility and cultural intelligence. In fact, all of these can be summed up to one major focus, the making of IBM as an organization with diverse human resource yet heading towards the same corporate goal. This is in fact the very crucial stage for the success of global integration in IBM. The Impact of CSC program on IBM Another important point that needs to be considered in order to identify how effective is CSC program for the global integration is to find out its impacts on IBM. As shown in Table 4, there are remarkable consistencies of results from the previous results. Participants were asked how what they have learned has better enabled them to contribute to IBM. Many participants have gained appreciation for global differences and their effects. Then there are still more who have learned new skills on networking. There was also a remarkable positive change among participants to commitment to IBM after the CSC program. These are all just positive indications implying further that the CSC program was a success on the part of IBM prior to its goal. Table 1. The assessment of participants of Pre-work effectiveness (Marquis and Kanter, 2009, p. 18). Table 2. Impacts of CSC program to local partners (Marquis and Kanter, 2009, p. 17). Table 3. Effects of CSC program on participants (Marquis and Kanter, 2009, p. 20) Table 3. cont…Effects of CSC program on participants (Marquis and Kanter, 2009, p. 21) Table 4. Impacts of CSC program on IBM (Marquis and Kanter, 2009, p. 22) Conclusions The focus of this paper is to analyze the main concerned of IBM on the future design and longer-term impact of CSC program. In particular, the following concerns need to be answered. How could IBM tell if the CSC was fully delivering on Palmisano’s overall goal of making IBM more globally integrated? What were the key metrics? What were the next steps for the CSC? How scalable was the program? What were the main risks to the model as it grew? In the development which will include in the long run demonstrating the integrity and genuineness of the values of an organization, it is worthwhile to invest on leadership, behaviors and decisions regarding an organization’s people (Carter et al., 2005, pp. 83-84). Since Palmisano is on the stage of recreating IBM corporate values and since leadership and behaviors of human resource were in particular have significant positive results, then it can be concluded that the CSC program was indeed in line with Palmisano’s goal. The key metrics were in particular the increased level of commitment to IBM of participants after the program and the leadership development on a cross-cultural environment. Since these key metrics were determined, it is important to continue enhancing CSC programs in the future that will specialize on leadership and commitment development. The program is scalable in a way that participants can actually evaluate how much they learned in the program. From their learning, the IBM can actually integrate information from both quantitative and qualitative considerations. Considering that CSC program of IBM has gained significant and important results prior to its objective, it cannot be denied that the same approach or even more refined will be employed by competitors in the related industry. The CSC program of IBM is another important method as it creates its competitive advantage (Porter, 2004, p. 89). Thus, an implementation of competitors and even much better approach will nullify such competitive advantage. Recommendations CSC program is good for IBM and the company must continue this program but with some required enhancements the soonest possible time. Equipping Human Resource Department Corporate values are very important in an organization. That is why there is a need to work it out and at some point there is a need to form it. The case of IBM It is a fact that corporations are in need of potential employees in order to move forward to corporate directions. However, part of an organization’s function is the equipping of personnel as much as assessing their potential. The Human Resource Department is very important in this development. However, the Human Resource Department of IBM must be able to equip itself first. The HR Department must work worldwide integrating the entire operation of IBM. This is a very crucial and critical task prior to the success of Corporate Service Corps. In fact, the whole Human Resource must have to standardize its practices. There are different things that the human resource should implement within the human resource and they can be varied. However, there are some important things that need to be implemented within the covered function of human resource department (Sparrow et al., 2004, p. 60). 1. The presence of flexible programs and processes in human resource. 2. Developing relationship with international human resource counterparts so as to encourage information exchange. 3. Giving much more to the expression of an organization’s worth. 4. Creation of human resource accessible to the global setting in order to develop strategic advantage. The need for Human Resource Assessment The new trend of improving manpower is to create assessment and even expose them to various trainings. It cannot be denied that various corporations or even international organizations are investing so much on employee enhancement and development programs. In the case of IBM, it has foreseen the long-term advantages associated with exposing its high-potential workers to leadership development programs. The good thing about this program is that its employees are exposed to different cultures and were allowed to experience the way of life in different countries covered by the international business of IBM. This makes sense. After all, the whole operation of IBM is planned to be instituted worldwide. This is the case of preparing the entire business to work effectively by eliminating probable barriers in the implementation-making process. Thus, it is recommended to expose the participants further to a new level of training as CSC post program. Incorporating Marketing Functions to CSC program Surviving the world’s tough competition in the era of globalization requires strategic moves. Part of IBM’s Corporate Service Corps is to incorporate trainings on marketing functions from the Marketing Department. Since IBM is ready to centralize its working system, this is very timely for its marketing function. Marketing function according to Porter (1986) requires centralized training as its tool to ensure effective implementation of global strategy (p. 84). There are many good things about centralized marketing trainings according to Porter and these are the following: 1. There are economies of scale in the production and training programs delivery. 2. As a result of gathering people with different experiences into one location, there is faster accumulated learning. 3. There is greater chance in implementing marketing programs with uniformity. Analyzing competition IBM’s employees must be able to analyze competition. Part of analyzing competition is the joint examination of industry economics and competitors in various geographic or national markets (Porter, 1980, p. 275). This implies integration of the required skills into the future CSC programs. References Marquis, Christopher and Rosabeth Kanter. IBM: The Corporate Service Corps. USA: President and Fellows Harvard College, 2009. Porter, Michael E.. Competition in Global Industries. USA: Harvard Business School Press, 1986 Porter, Michael E. Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press, 2004 Sparrow, P., C. Brewster, and H. Harris. Globalizing Human Resource Management. Great Britain: TJ International Ltd, 2004 Read More