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Samuel J Palmisano
International Business Machine(IBM)
• Ranjeet Kumar Singh
Restructuring IBM from a simple hardware and
software company to an integrated enterprise
solutions company focussed on emerging high value
technologies using its strengths in R & D.
Shifted from pure technology to outsourcing and
other service model.
Creating a compelling change story and
communicating objectives to the organisation.
Lead, communicate, and engage— includes
stakeholder alignment, communications, and
Integrated communications services: Combine IT and
business solutions expertise
IBM invests in creating its own social media tools:
i. Lotus connection: software for business that empowers
innovativeness and networking of co-workers, partners and
ii. SocialBlue: 53,000 employees stay connected with former
colleagues and get to know new ones including sharing photos and
Result: Crowd-sourcing identified 10 best incubator
businesses with increase in revenue and profit.
IBM Digital Media emerging business opportunity (EBO):
The incorporation of images, video and audio in
traditional IT applications.
Sam Palmisano an efficient listener, took over the ailing
personal in the computing division of IBM, North
Efficient in pushing the ideas of change down the
hierarchy in a phased manner.
Invited participation and effectively confirmed the
interpretations of the decision makers.
Created a standardized process for disseminating the
common business language throughout the enterprise.
Envisioned setting up a cross functional group as an
effective step towards crisis management.
Consolidating the Change
Redesigning Roles : Invested $6 Billion in creating
R & D roles across divisions.
Remodeling the Reward System : Created the
“Growth Driven Profit Sharing Program”.
Remodeling the Reward System : Created “Top
Acting consistently with the Guiding Philosophy :
Dispensed with the entire commodity business.
Consolidating the Change …(contd)
Encouraging “Voluntary acts of Initiative” : Creating
region specific initiatives viz. Asia, the Middle East and
Measuring Progress and Fine Tuning Strategies: Used
learning to build upon existing capabilities- programs like
“A Smarter Planet” leveraging strengths in Analytics with
enterprise wide integration.
Celebrate “En Route” : IBM has reiterated the positive
impact of the organizational change by highlighting the
growth in profitability thereafter.