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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.
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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
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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
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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
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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
!
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.
!
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
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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
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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
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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
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 B
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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 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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