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DEVELOPMENT
The program will be managed by a dedicated Leadership Program Manager and delivered
with the assistance of other corporate functions as necessary. Leadership metrics will be used to
manage and prove the cost-effectiveness of the program. Currently, 100M is being spent on
senior leadership training, which could be reduced and reallocated at the lower tiers. The
Leadership Program Manager is only asking for 1/5 of that or 21M for training emerging leaders
and middle managers. The return on investment could be as high as 600M as more teams
quickly mobilize to solve business issues and will substantially outweigh the program costs. A
communication plan which develops materials for in-person and web based delivery will be
presented to senior leadership for approval and then tested with small focus groups to ensure
both the materials and the concepts themselves were clear and comprehensible. IBM is
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The data confirms there is a large talent gap between those leaving workforce and those
entering the workforce. With at least half of the workforce having less than 5 years of
experience, and several other employees working remotely, IBM created competencies that help
facilitate a fluid approach to leadership and management of teams that are as dynamic as the
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Opportunities
Defining the competencies was a first step to building a transformational culture of
leadership. Building on the successful Workforce Management Initiative and Talent
Management Database, IBM also identified leadership gaps, began regularly assessing those in
leadership roles, provided them guidance and development opportunities and tracked their
progress in the Talent Management Database. Additionally, for each leadership role, the
company defined benches of potential candidates, ensuring diversity and conducted annual
leadership review s at all levels of the business.
IBM has a progressive vision of leadership that starts with emerging leaders and
continues with its executive leaders. $100 M has been invested by the company in leadership
development so far. However; efforts to date have focused only on the top tier of the leadership
development framework, with no new initiatives focused on developing middle managers or
transitioning employees from non-management to management positions.
Managers will be recommending participants based on data from the Talent Management
System.
Providing leadership training will also increase productivity levels of the teams
IBMs training group in consultation with Finance department has identified training which
combines leadership skills needed for emerging leaders and middle managers and examined cost
benefits against training knowledge, application, and productivity gains for IBM. To increase its
overall productivity, IBM realizes that it workforce needs to be engaged and motivated to be
productive. As part of their strategic directive, IBM has decided that this can be achieved by
increasing its leadership capability-by equipping its leaders with the knowledge and skills to
truly engage all employees. A blended learning environment will take place (1) Face-to face (2)
Virtually through synchronous discussion for mentoring, coaching, and competing peer
assignments and (3) Using a web-based learning toolkit. The course will be piloted with 50
emerging leaders and 50 middle managers. Level1 will be used to collect data on the training
and Level 3 evaluations will used collect data on the performance of the participants and a 360
assessment will be administered every year. The toolkit will be licensed to participants and will
be offered as software as a service so that new updates will be maintained by the third party
company. All data measured against leadership competencies will be captured in the IBM talent
management system.
Cost Benefits
Some of the tangible and intangible benefits of the program include:
Improving the rates of time elapsed from business response to client project
completion by 1 month for potential profit of 550M
Reducing 50M spent at the senior levels as training and mentoring at lower levels are
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Table 1 outlines the costs of providing training for Emerging Leaders and Middle
Managers which is approximately 21 M. The cost of training emerging leaders runs
approximately $3,300 per person and the cost of training middle managers runs approximately
$5,800.
Table 1 Emerging and Middle Managers Cost of Training each Employee
Emerging Leaders
$1,855
$250
Middle Managers
$1,855
$250
Coaching
$200
$1,000
$200
$1,000
$2,500
Total of
Costs Per
Person
$3,305
Total Costs
$5,805
# of
students
per year
$2,300
# of
students
per year
$2,300
total costs
$7,601,500
total costs
$13,351,50
0
$20,953,0
00
Annual Salary
Total Costs
$100,000
$72,000
$80,000
$70,000
$81,000
$86,000
$78,000
Annual Salary
$200,000
$567,000
$567,000
Total Costs
Salaries Total
per
Saved per
Month
Project
$8,333
$6,000
$6,666
$5,833
$6,750
$7,166
$6,500
$47,248
Salaries Total
Per
Saved per
Month
Project
$16,666
$47,250
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$567,000
$567,000
$567,000
$2,468,000
$47,250
$47,250
$47,250
$205,666
Project Benefits
Project Costs
Net Project
Benefits
Net Project Costs
Project Benefits
Project Costs
Net Project
Benefits
Net Project Costs
$47,248
$3,305
$4,394,300
$14
$3,305
$13
$205,666
$5,805
$35
$19,986,100
$5,805
$34
Project Planning
The Leadership team under the direction of the Chief Executive Officer has outlined a high
level plan:
December 2014-A report of the goals will be prepared by training program Manager for
the CEO.
January 2015- CEO will unveil the new policy based on the working groups
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January-July 2015 develop a course for a diverse audience and their specialized needs.
July-August 2015 Add staffing and training capabilities to ensure emerging leaders
understand the needs of the organization and can lead technical teams to accommodate
the agile and global needs of its users.
October-December 2015 set schedule for upcoming year; hire instructors, schedule
students, book venue and make travel arrangement
The company has established working groups and assigned project teams who will be held to
a schedule to make the vision a reality by 2016. IBM has been a very successful company
because of its diverse employees, their commitment to the workforce, and their genuine integrity.
The company would like emulate this behavior throughout the company by building a leadership
succession that values diversity and inclusion at every level.
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Task to be completed
Nov-14
Feb-15
May-15
Sep-15
Dec-15
Mar-16
Working Group
Convenes
Working Group
Report
Unveils Policy
Course
Development
Start
Dates
Durati
ons
Nov-14
30
Dec-14
Jan-15
5
45
Feb-15
165
Staffing and
Training
Aug-15
30
Pilot Classes
Sep-15
Revise Class
Schedule classes
Sep-15
Oct-15
30
90
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Business Impacts
Below is an outline of benefits of undertaking or not undertaking each intervention.
Table 6 lists a high level summary of the pros and cons of each intervention.
Scenario A-No Training
If the intervention is not undertaken, there is a potential that IBM may find itself with employees
who are ill prepared to navigate the challenges of the dynamic business environment at IBM. It
is possible that the productivity and profit suffer as the response time to the client may decrease.
Scenario B-Emerging Leaders Training
If the intervention is undertaken, new or emerging leaders will be prepared to think strategically,
lead a team s, and apply situational leadership and the response time to clients may increase.
However, money invested will not be immediately recouped and longer term assessment might
be a determination of the effectiveness of the program.
Scenario C-Middle Manager Training
If intervention is undertaken for middle managers will be prepared to think strategically, lead
teams, and apply situational leadership in response to clients may increase. However, money
will not be immediately recouped and longer-term assessment might be determination of the
effectiveness of the program.
Scenario D-preferred option-Emerging Leaders and Middle Manager Training
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Description
Intervention is
not undertaken
Pros
Cost savings
on
leadership
training
Cons
Response time
to clients may
decrease
Intervention is
undertaken, new
or emerging
leaders
Response
time to
clients may
increase
Cost for
leadership
Training
Intervention is
undertaken,
middle managers
Cost for
leadership
Training
D-Preferred Option
Intervention is
undertaken, new
or emerging
leaders and
middle managers
Response
time to
clients may
increase
Response
time to
clients may
increase
significantly
Cost for
leadership
Training
Conclusion
Analysis of the data and issues faced at IBM and other organizations of the same size and
magnitude indicates that there is a significant gap in experience between first line managers and
senior leaders. In order to bridge that gap, IBM would like to institute leadership development
that starts throughout the lifecycle of the employee and is recorded using the companys talent
management database. Competency based leadership models that are enhanced by blended
learning offer the opportunity for IBM to better prepare its emerging leaders and middle
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Bibliography
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Bodreau, J. (2010). Strategic HR Management Case Study Part C: IBMs Global Talent
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Boudreau, J. (2010). Strategic HR Management Case Study Part A: IBMs Global Talent
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