Raw Preview of Attachment:(refer to the detailed question and attachment below)
Unit 4 Team Case AnalysisTeam EGB600.02NLeadership Strategies for a Changing WorldMay 31, 2014ProfessorWilliam ChadickUnit 4: Team Case AnalysisIBM has aspirations to become a global force in the marketplace and to become a globally integrated enterprise. There are many ways for organizations to handle changes of this magnitude. As an organization, IBM is innovative, creative and strategic, which has allowed it to stay ahead of the competition. Palmisano explains, “To have a culture that connects people’s success to the success of the entity, we have to be faceless. Then they have pride in the entity’s success and will do what is important to IBM. Management is temporary, returns are cyclical. The values are the connective tissues that have longevity. We are the only ones in technology to have lasted more than 25 or 30 years” (Kanter, 2011). The purpose of this analysis is to understand the programs IBM put into place that developed the “bigger change” in society; its significance to the individuals who came experienced the change; its impact on goals that were developed and disseminated throughout the organization; and understand its effectiveness on affecting external social change. Our team will conclude with recommendations to ensure IBM transforms to a true globally-integrated enterprise. “Big Change” in SocietySince the beginning of IBM history, IBM has been known for its core values in culture, social responsibility and maintaining a constant set of principles. As IBM began to notice the world around them was changing with new focuses on the corporate citizenship standard, they decided some changes within their company were needed. “In 2003 CEO Sam Palmisano authorized a bold effect to refresh the values” (Kanter, 2007). This was the first step in reforming the values for IBM and understanding what is important to the employees, stakeholders, and customers. From the chat sessions Palmisano directed, IBM came up with three values: dedications to client’s success, innovation that matters for customers and the world, and trust and personal responsibility in all relationships. IBM understood that creating a relationship beyond just the customers and employees within the company would only lead to great things. The world around them was interested in organizations working towards a better society, helping others, and companies who put forth an effort beyond what was required. They began to find opportunities to create a broader corporate citizenship, from the world community grid to kidsmart. The bigger change in society showed IBMers that IBM was interested in everyone’s well-being, they were interested in helping others, and interested in spending time to create a better society. Through all of these new focuses, IBM created a company that was focused on areas like environment, community relations, skills and learning, and diversity. They now have more relationships in the communities they’re helping, partnerships with other organizations, involvement with new customers, and employees who are happy to have a company that promotes their philanthropies.ImportanceFor IBMers, creating an even bigger change in society is important. IBM announced the creation of the Global Citizen's Portfolio, a suite of investments and programs to help IBM employees to enhance their skills and expertise to become global leaders. The Corporate Service Corp will provide leadership development experiences for IBMers exposing participant's to the 21st Century context for business, diverse cultures, policy environments and societal expectation (IBM Announces, 2014).According to Stanley Litow, Vice President of Corporate Affairs and Corporate Citizenship, ”In today's global economy people make constant transitions from job to job or into retirement. They still value the connections they have made and they can still contribute to their society as well as to their former employer” (IBM Announces, 2014).It is important to business leaders, government and civic organizations because enhanced transition services will create bridges for IBM employee opportunities in government, non profits, educational Institutions and economic development organizations (Palmisano, 2006). In the Forum on Global leadership, U.S. Competitiveness in a Globally Integrated Economy, a two day conference at the Ronald Reagan Building and International Trade Center in Washington D.C. re-phrase; fragment The conference sponsored by IBM with the U.S. Department of Commerce and the Peterson Institute for International Economics convened 700 business, academic, government and community leaders to exchange ideas and discuss innovative ways to spur competitiveness in a globally connected world. According to Palmisano, “IBM sees the potential for a powerful virtuous circle with mutually reinforcing benefits, among empowered individuals, more agile and innovative companies, a healthier and more vibrant community and a more competitive nation” (Palmisano, 2006). It is important for multinational companies moving toward a globally integrated enterprise. The innovation and creation of IBM's Globally Integrated Supply Chain now connects businesses to suppliers and collaboration on multilevel areas is now possible. Collaboration between suppliers and business partners is important. The move from a linear supply chain to a more integrative system that is capable of handling a vast array of products is a huge benefit. Companies can now find the best talent, create smarter supply chains, focus on transformation, incorporate ROI Analysis making risk management an integral part of the supply chain process (Sharketta, 2012).Finally, it is important for manufacturers as the Chinese Economy continues to grow and develop an economic middle class. The domestic Market is becoming more attractive to manufacturers while infrastructure projects have moved to the back burner in 2012. Manufacturers are using the logistics advancements to build massive campuses and factories in China's Western Region. The new domestic customer is age 37, has a spouse and a child and both parents. They want to buy high end consummable products and high tech devices: and with aging parents, health care products will also grow in demand. What the consumer wants in the future is exposure to music and culture. In education, they want their children to have higher education in the west or American and International services bought to China (Sharketta, 2012). GoalsSuccessful institutions such as IBM develop a strong culture that reinforce basic beliefs and principles that make the institution great. They reflect on the environment from which they emerged. When the environment shifts, it is very hard for the corporate culture to change. In fact, it becomes an enormous impediment to the institution’s ability to adapt. What IBM did was to create conditions for transformation. They provided incentives and defined the marketplace realities and goals, and then they needed to trust one another and that invited the workforce itself to change the culture. The deepest culture change goal was to introduce IBMers to believe in themselves, to believe they had the ability to determine their own fate. The new IBMers needed to act collaboratively, as hungry, curious self-starters. IBM had a sense of and commitment to accessibility, social value and corporate responsibility; and this always run deep within the company’s values. IBM felt more focused and targeted in their efforts on solving problems, and not merely throwing money at them. IBM dramatically changed traditional corporate philanthropic philosophy and began focusing on the use of technology as a way of solving social, and especially educational problems. One of the examples mentioned in the article is that IBM’s involvement in the K-12 public education transformation “was the area its employees and customers cared about the most” (Kanter, 2011, para 1, p4). This new form of education established an important model for IBM’s corporate citizenship initiatives to follow. They were strategically focused on solutions, and operated like the other technology projects that IBM delivered for their customers.They invested in a unique grant project called Reinventing Education; creating working partnerships between major urban school districts, rural states and engaged IBM researchers, technical talent along with contributions of computer hardware and consulting services in addressing significant educational problems facing public schools. At the head of the problem is the belief that business can and must contribute to profound and far-reaching changes in the educational process that is rooted in technology. In 1990, IBM created educational Kid Smart workstations for young children involving educational transformation assisting with market entry in other countries where public support for IBM’s presence became a critical ingredient. This revolutionized IBM business and the technology industry.The triple benefit for IBM’s Corporate Social Responsibility was finally developed. IBM wins by creating a workforce capable of driving a competitive advantage to a new globalized market. The IBMers win because they acquire new skills and experience at which adds value to their work. And the community wins by IBM addressing the global issues of economic development and teacher shortages. Staging of External Social Change ProjectsIn the past, the cornerstone of excellence for any business is exceeding expectation, earning potential, offerings and creating long-term value. Most businesses could meet these expectations through productivity, customer satisfaction and profits. Today new technologies and expanded markets have allowed every industry the potential to be global. With this shift in markets decision-makers are beginning to realize it is getting harder to achieve the level of excellence that is being demanded (Vidaver-Cohen & Altman, 2000, p. 145).IBM put into place several programs to help with education and community outreach programs that have effectively bridged the organization and the communities they do business in. There are challenges when creating programs in developing countries. However the case identified programs in India that have shown how successful organization can facilitate collaboration which will product measurable benefits and results of everyone involved.This type of outreach doesn’t happen overnight. There are five steps that need to be followed in order for this to be successful:IdentificationReview the environment to understand the economic, social, political, ecological, cultural and technological conditions that can potentially threaten or derail an organization and the community in which they do business.InvestigationReviewing any of the threats or derailers identified. This step will allow an organization to address any of the threats they can immediately to mitigate the risk.InnovationThis phase is where an organization collaborates with the community members to lay out the strategic solution to mitigate the threats while enhancing the community’s infrastructure.ImplementationCompany’s and community work together collaboratively to activate and test the innovations identified in the innovation phase.IntegrationOnce the implementation is completed a long term strategy to ensure the commitment of the organization and community are stable. Source: Vidaver-Cohen & Altman, 2000, p. 155-158RecommendationsThe most important step for IBM to take is to complete the transformation to Palmisano’s vision for a Globally-Integrated Enterprise (GIE). “One paradox of global integration was that it inverted the pyramid in another way: it was accompanied by a greater need for deep national and local connections in many more places” (Kanter, 2009, p. 11). Through its numerous aforementioned global corporate social responsibility programs and cultural diversity efforts, IBM needs to be perceived not as an “American” company, but to be connected nationally and locally as an equal partner and teammate in every foreign country around the globe. This will break down the current barriers to trade and open competitive opportunities for IBM. In order to accomplish this, our team recommends the following courses of action: Implement the leader-member exchange model (LMX). IBM should first conduct a climate survey that assesses the current working relationship between its leaders and members. This survey will identify the in-group and out-group perceptions of team members to identify relationship areas that need improvement. "In-group members tend to achieve a higher level of performance, commitment, and satisfaction than do out-group members; furthermore, they (in-group members) are less likely to quit" (DuBrin, 2013, p. 291). IBM should take steps for leaders to maximize the in-group perceptions of its members through cultural diversity training. Methods to accomplish this were covered in our Unit 3 assignment with improving leadership cultural diversity to build the interpersonal connection between culturally diverse leaders and employees. This connection will build trust and loyalty between leaders-members and also increase the numbers of members who feel they are part of the“in-group”. The end result will be increased member productivity and morale.Teach coaching techniques. IBM should teach coaching techniques to leaders in order to motivate and inspire employees. Once the LMX-driven model is implemented with solid interpersonal connections between leaders and members, the path becomes clear for effective coaching techniques. Leaders can now practice sound coaching techniques to raise productivity levels by inspiring and motivating employees. As mentioned in DuBrin, “the person being coached is better motivated to accomplish goals for the good of the organization” (2103, p. 320). This will help build a sense of belonging and loyalty to IBM that will in turn foster a more productive work environment.Build creative work environment. With LMX and coaching techniques in place, the next logical progression is to create a pleasant work environment built upon mutual respect and caring. The basic formula for human behavior is: B = f(P x E); human behavior, B, is a function of a Person, P, interacting with the Environment, E. "In this context, certain personal characteristics may facilitate a leader's being creative, but the right environment is necessary to trigger creative behavior" (2013, p. 346). The idea is for IBM to create a culturally diverse work environment which will produce the right environment that fosters creativity for innovation.Enhance Innovation. IBM's business strategy is founded on innovation, which becomes the key for its future success. "All leadership and management practices that enhance creative problem-solving therefore also enhance innovation” (2013, p. 362). IBM should implement the following eight leadership initiatives to enhance innovation: “1. Emphasize transformational leadership if possible, 2. Continually pursue innovation, 3. Take risks and encourage risk taking, 4. Emphasize collaboration among employees, 5. Avoid innovation for its own sake, 6. Use loose-tight leadership, 7. Integrate development and production, and 8. Recognize the hidden opportunities when product ideas flop” (DuBrin, 2013, p. 362-365). When implemented properly, these initiatives will ensure IBM meets its future strategic innovation and creativity requirements.These techniques should be incorporated into the overall IBM corporate strategy and mission statement. In the words of Palmisano, “IBM can’t be run solely from the top; rather, it needs thousands of leaders operating collaboratively around the globe to fulfill its customers’ diverse needs” (George, 2012, p. 1). This action will ensure IBM achieves Palmisano’s vision by transforming it into a true globally-integrated enterprise.ConclusionIBM has put into place several different types of community programs that have been very successful. As an organization they are cognizant of shareholder and stakeholders alike when making decisions on how to continue to grow into a globally integrated enterprise. They have followed the steps it takes to make decisions that are responsible for both the organization and communities therein. To continue to be a global company and continue to be successful, excellence inbusiness is required. Robert Solomon writes “Excellence in business….both practically and philosophically…is a word of great significance and indicates a sense of mission, a commitment beyond profit potential and the bottom line. It is a word that suggests ‘doing well’ but also ‘doing good.’ It is a word, therefore, that synthesizes the demands of the marketplace and the demands of ethics…In business life, the assumption is…that excellence (like quality) sells, that excellence is the key to success” (Vidaver-Cohen & Altman, 2000, p. 158).ReferencesDubrin, A. (2013). Leadership: Research Findings, Practice, and Skills. Mason, OH: South-Western Cengage Learning.George, B. (2012). How IBM’s Palmisano Redefined the Global Corporation. Harvard Business Review. Retrieved May 27, 2014 from http://hbr.org/2012/01/how-ibms-sam-palmisano-redefin/. IBM Announces 'Global Citizen's Portfolio to Enable 21st Century Skills and Leaders : Retrieved from http://www-03ibm/press/us/en/pressrelease Kanter, R. (2009). IBM in the 21st Century: The Coming of the Globally-Integrated Enterprise. Harvard Business School, p. 1-20.Kanter, R (2011). IBM Values and Corporate Citizenship. Harvard Business School, p. 1-16.Palmisano , S (2006) The Globally Integrated Enterprise, Foreign Affairs, 85(3), 127-136Sharketta , M. (2012) IBM Evolves a Globally Integrated Supply Chain. World Trade :WT100 25(5), 32.Vidaver-Cohen, D., & Altman, B. W. (2000). Corporate citizenship in the new millennium: Foundation for an architecture of excellence. Business & Society Review (00453609), 105(1), 145.
Solution: Gb600 Unit 5 Team project