CASE STUDY // IBM and and PYXERA PYXERA Global
IBM’s Corporate Servi S ervice ce Corps: The Shift Shi ft to a
Globally In Integr tegrated ated Enterprise By Katie Kat ie Levey, Levey, Director Dir ector of Media Media Relations, PYXERA Global COMPANY DESCRIPTION IBM is a globally integrated technology and consulting consulting company headquartered in Armonk, New York. With operations in more than 170 c oun ountries, tries, IBM attracts attrac ts and retains some of the world's most talented people people to help solve problems and provide an edge for businesses, businesses, governments and non-profits. non-profits. Founded in 1911 1911,, IBM’s year end 2013 201 3 revenue was $99.8 billion, and employs approximately approx imately 430,000 globally.
THE OPPORTUNITY Former IBM CEO, CE O, Sam Palmasino, declare d that “the globally integrated enterprise can deliver e normo normous us e conomic benefits benefits to both developed a nd developing developing nations,” in 1 Foreign Affairs Magazine. At that that time, IBM was re-inventin re- inventing g its approach to corporate citizenship through through a new program called the the Corporate Service Se rvice Corps (CS (CSC). C). Launch Launched ed in 2008, the CS C sends sends high achieving IBM IBM employees to perform community-driven community-driven economic development development projects in Africa, Asia, Eastern Easter n Europe and a nd Latin America, Americ a, working working at the intersec tion of of business, technology a nd society. The program: Addresses a variety of societal nee ds by working working with non-gove rnmental organizations, organiza tions, small o and medium enterprises, cultural institutions, institutions, governments and more in und underserv erserved ed o
economies worldwide. Catalyze s socio-economic socio-economic growth in these geographies. ge ographies.
o
Introduces Int roduces the company and future future leaders to new, less developed markets.
o
Cultivates global lea dership competencies competencies such s uch as change mastery, tea m building, building, communication, commun ication, cultural awareness, and decision making.
IBM identified several seve ral promising promising emerging economies important important to the company’s company’s busin business ess growth. For example, the company recently doub doubled led the number number of employees sent into Africa to align with its strategic stra tegic priorities to better s ervice specific geographies ge ographies on the continent.
THE STRATEGY Strategic partners such as international development nonprofit, nonprofit, PYXERA Global, Global, identify host recipients with with a strong capacity to receive IBM pro bono support in these areas and an a n equally strong strong need for technical assistance. At the same time, time, IBM administers administers a competitive application process process to assemble employee teams from geogra phies around the world. world. Each cross-border cross -border team participates participates in an intensive intensive three -month virtual virtual training that addresses topics such as scenario planning, planning, c ultu ultural ral immersion, project briefings, and security.
1
Samuel J. Palmisano, “The Globally Integrated Enterprise,” Foreign Affairs Magazine, Magazine, May 2006. http://www.foreignaffairs.com/articles/61713/samuel-j-palmisano/the-globally-integrated-enterprise
These teams spend up to four wee ks in an emerging or frontier ec onom onomy y working working on assignment ass ignment with with a government agency, small or medium enterprise, economic institution, institution, or a local organization. Levels of shared value: Reconceiving products p roducts and markets
o
Through the Corporate Serv ice Corps, IBM employees employees gain g ain insights related to use of technology, project management, governance and mar ket intelligence that are both brought technology, brought back to the home coun c ountries tries of participants and also share d with the local IBM staff. In many instances, the perception of IBM has shifted from that of a technology technology provider to a higher value business business services se rvices company company as a result of the CSC .
Redefining productivity in the value chain o
Developing IBM’s talent pipeline Developing pipeline throu through gh this approach a pproach reinforces reinforces the company’s future leadership potential potential and strengthens the business climate in g rowth markets for IBM.
RESULTS – VALUE FOR BUSINESS BUSINESS AND SOCIETY SOCI ETY
In a recent re cent survey of C SC alumni, alumni, 90% reported that the CSC increased their leadership skills and 82% said it increased their their desire to continue continue
“The program has provided
their career at IBM. In a survey of managers of CSC alumni, alumni, 89% said the the
at least
participant’s understandin understanding g of the developing world increased and 64% said the employee is now contrib contributin uting g in more valuable ways.
2
The program has provided at le ast $65 million in pro-bono consulting consulting servicess for service for host organizations orga nizations over a five-year period. The cost to send fifteen people people on a one-month assignment a ssignment is minimal
$65 million m illion in pro-bono consulting for host host organizations organizations ove overr a five-year five -year period. To date,
compared to the cost of an individual individual placed on a one- year expatriate
2,400 participants have
program. To date, 2400 participants have ser ved on 850 projects in over
participated particip ated in 850 projects
35 countries, helping IBM deepen its relationships and und understand erstand market conditions conditions in emerging markets worldwide. worldwide.
The program has positively impacted the lives of at least 140,000 140,0 00 people people directly and hundreds hundreds of thousands thou sands more indirectly through projects in the area s of of education and healthcare.
LESSONS LEARNED, LEARNED, CHALLEN CHALLENGES GES AND OUTLOOK
Plan ahead ahead and be flexible. In emerging and frontier economies, operations are often more more complicated than than that of established markets. markets. Beca Because use of this this dynamism, advance planning planning is critical. At the same time, the ability for a corporation corporation and a nd its leadership to be flexible should the s ituation change is also als o important.
Leverage the expertise of social sector partners. partners. From a corporation’s perspective, there are relatively few institutions institutions that have infrastructure infrastructure on the the ground to identify identify the most pressing needs. Working with PYXERA Global provides insight into the business problems facing h ost clients as well as Working the historical context.
Commit to long-term sustainability. sustainability. Developing strong partnerships with org anizations with with a local presence ensures IBM’s investment will have a la sting impact on the communities communities it serves serves.. This is a result of the solutions developed for the local context, context, the skills transferred, and the momentum momentum buil builtt among stakeholders stakeholders as a s a result re sult of being being part of a focused effort within their community. community.
2
IBM Survey S urvey of o f Manag ers and Past Prog ram Partici Pa rtici pan ts
