A CASE STUDY ANALYSIS ON

IBM’S DIVERSITY AS STRATEGY BY DAVID A. THOMAS

- NAME : NISHCHAY EDMUND PASCHAL

- CLASS : 27 C
- ROLL NUMBER : 27100
Nishchay Edmund Paschal
IBM – COMPANY OVERVIEW
► IBM stands for INTERNATIONAL BUSINESS MACHINES.
► Computing tabulating recording company (CTR)
► American Multinational technology company
► Operations in over 170 countries.
► Headquarters : Armonk, NEW YORK (UNITED STATES OF AMERICA)
► Founded : June 16, 1911
► Founder : Charles Ranlett Flint
► Current CEO : Arvind Krishna ( 6 April 2020 – Present)
► IBM's revenue : above $74 billion for 2021

Nishchay Edmund Paschal

LOUIS GERSTNER Jr. : THE MAN WHO TURNED
IBM AROUND
► Initial doubt – “Are you telling me that a biscuit seller is going to run the technology
conglomerate that is already in ruins and counting its days? Are you kidding me?”
► Gerstner arrived at IBM in 1993.
► IBM was suffering from continuous depletion of resources, lost direction and unable to
compete.
► Two key decisions : reverse the plan to break up the company and shift the company
from it’s roots as a PC maker.
► Big Blue’s turnaround Gerstner became a legend.
► He matches all the characteristics of Jim Collin’s ‘Level 5 leadership’ -Humble,
Consistent determination and incredibly ambitious.
► He launched the diversity task force initiative that became a cornerstone of IBM’s HR
strategy.

Nishchay Edmund Paschal

STRUGGLING IBM! MESSIAH GERSTNER?
► Main problem – IBM had not yet connected itself to the
marketplace because its tremendous diversity was being
minimally utilized.
INITIAL ISSUES FACED BY GERSTNER
► Diversity issues in the workplace.
► Low level of diversity in the senior ranks of the company.
► Limited minority representation in areas such as computer
sciences and engineering.
► Untapped talent pool especially pertaining to talented minorities.

Nishchay Edmund Paschal

 AREAS OF CONSIDERATION!
EMPLOYEES
► Wider range of talents, skills, ideas and views.
► Influence the courses of action of the corporation.
► Greater organizational flexibility to reduce the impact of change.
CUSTOMERS
► Without workforce diversity, customers could be less invested on the good and
services provided by the corporation.
► If it did promote an environment of open culture.
COMPETITORS
► Accepting workforce diversity can bring advantage to the industry competitiveness.

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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.
APPLICANTS
► Attract a large number of applicants.
► National programs initiated by IBM.
► Failure to show diversity in the workforce can cause supposed applicants to
apply for other corporations.

Nishchay Edmund Paschal

IBM : COURSES OF ACTION
TED CHILDS
► “ The company needs to win in the marketplace and out compete our
competition by looking like the people we are trying to sell and we must look
like them from the mailroom to the boardroom.”
8 IBM TASK FORCES
► ASIAN
► BLACK
► GAY AND LESBIAN
► HISPANIC
► NATIVE AMERICAN
► PEOPLE WITH DISABILITIES (PWD)
► WHITE MEN
► WOMEN Nishchay Edmund Paschal
8 IBM TASK FORCES
► Each has been assigned an executive sponsor, who was wither a direct report of the
CEO or a member of the WMC to help remove any obstacle 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.
► 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’s group productivity?
3. What decisions can IBM make to influence your group’s buying decisions so that IBM is
seen as a solution provider?
4. Which external organization should be formed to better understand your constituency?

Nishchay Edmund Paschal

RECOMMENDATIONS THAT ARE APPROVED AND
IMPLEMENTED BECAUSE OF THE 8 IBM TASK FORCES

► Announcing the lifeworks program.

► Implementing a regular part time employment program.
► Launching employee network groups and the global.
► Partnership for work/life, flexibility and mobility.

► “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.”

Nishchay Edmund Paschal

DISADVANTAGES
► Costly
► Political diversity
► Culture
► Religion

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OTHER COURSES OF ACTION
► Five minute drill
► Initiative for senior executives
► Advertising
► Building Business Partnership

Nishchay Edmund Paschal

CONCLUSION
► Many industry experts criticised IBM for selecting Lou Gerstner but he never allowed all those
criticisms affect his focus on turning around the company.
► He would have easily opted out of IBM CEO race but then he would not have entered into the hall
of fame. He created history and his success lessons are taught all over the world.
► Why Diversity?
► Aside from it being a moral imperative, an inclusive workplace has financial and productivity
benefits for all involved, making it a key factor for companies looking to succeed in this
increasingly globalised and competitive world. Simply put, promoting diversity is a win-win
situation for both employers and employees.

NEED OF DIVERSITY IN WORKPLACES

1. Boosts Employee Engagement
2. Boosts Productive Performance
3. Understand Customers Better
4. Boosts Company Reputation
Nishchay Edmund Paschal
5. Reduces Conflicts
6. Raises Profits
 THANK YOU!!! ☺

Nishchay Edmund Paschal