As part of its focus on recruiting, retaining and developing high-potential managers around the world, IBM implemented an online MBA program to create “stickiness” and loyalty among high-potential managers in competitive markets in developing countries. Developed in partnership with the College of Business at Northeastern University, the ongoing success with managers in India has led to the recent launch of the online MBA in China. In this session, we will discuss lessons learned, the success of this partnership after two years and how this type of program can be financed. Peter B. Lynt, General Manager, Global Business Process Delivery, Global Technology Services, IBM Thomas E. Moore, Ph.D., Dean, College of Business Administration, Northeastern University

1. College of Business Administration
Retaining and Developing High-Potential
Managers in Emerging Markets
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Peter Lynt Thomas Moore
General Manager Dean
Global Business Process Delivery College of Business Administration
IBM Northeastern University
Boston, MA

2. College of Business Administration
IBM Global Business Process Delivery
Business: Offers third party outsourcing solutions within four
key focus areas
 Customer Relationship Management
 Finance and Accounting
 Procurement
 Human Resources
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3. College of Business Administration
IBM Challenge
In developing markets, particularly in India, turnover of high
potential managers was unacceptably high, approaching
100% in 2007
This is a global problem that we are addressing in IBM's
delivery centers in India
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4. College of Business Administration
Potential Solution
Develop a high quality educational program for IBM’s high
potential managers which would build skills at the same
time as reducing turnover and creating corporate loyalty
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5. College of Business Administration
The Northeastern IBM Solution
Offer the NU online MBA program to select IBM high potential
managers. This program has the following attributes:
AACSB accredited – the leading international accrediting
organization
Flexible – IBM managers may participate regardless of
extensive periods of travel and/or relocation
Accessible – asynchronous and online platforms allows IBM
students to log in from anywhere at anytime…
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6. College of Business Administration
The Northeastern IBM Solution, cont.
Interactive - IBM students move through the program in
cohorts of 15; daily interaction with faculty and peers
Affordable – Northeastern offered deep discounts on
“sticker price” for an IBM commitment of a cohort program
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7. College of Business Administration
Structure of the NU MBA Program
17 fully online courses delivered over 24 months
Each course runs approximately five weeks, with a one week
break between courses
Nine different start times each year
Students are online every day with peers and instructors
Entirely asynchronous so students who travel can maintain
progress…
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8. College of Business Administration
Structure of the NU MBA Program, cont.
Optional office hours are synchronous
Program uses short video, voice over spreadsheet and
power point, group assignments, cases, simulations and
chat rooms
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9. College of Business Administration
Process of Launching Program
IBM
Establish criteria for student selection
Collaborate with students and STET during
admission and matriculation processes
Develop commitment conditions for
students
 Financial contribution
 Service after completion
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Northeastern
Provide information and materials to
IBM managers to assist in establishing
selection criteria
Market program and interview
candidates on site
Admissions

10. College of Business Administration
Photo: Jagadeesh NV/Mint
Lessons Learned from India Launch
Establish active buy-in and sponsorship from managers before
launching the program
Determine guidelines for eligibility of potential participants.
Be selective and maintain exclusivity
Educate senior managers making nominations about program
requirements and establish their commitment to support participants
Set clear expectations for students as to rigors of the program, time
management, and expected interactivity with peers and professors
Build excitement through selection announcements and internal
marketing
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11. College of Business Administration
Program Outcome Two Years Later
Approximately 90% of the enrolled students will complete
the program on schedule
Attrition from IBM has been 5% for high potentials in the
program and 14% for those eligible but not selected
Student satisfaction has been high. Senior managers report
success factors including promotions
Company loyalty remains high and reported job
performance has improved
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12. College of Business Administration
Launch in China
Based on success of IBM DAKSH program, IBM launched the
program in China in June at IBM's Dalian and Shanghai
locations
In addition to IBM Global Services, IBM AMS has committed
to sponsoring employees as students beginning in early
2011
Recruit India MBA graduates to mentor employees from
Shanghai and Dalian as they adjust to participation in the
program
Establish additional opportunities for India and China
cohorts to interact as students and alumni
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13. College of Business Administration
Photo from Financial Times online: www.FT.com
Funding and Benefits
Through trade offsets, IBM has been able to fund this program
and key benefits are:
Investing in top talent employees will make us achieve less
attrition for this specific group
This advanced education will also produce more efficiency
since they will be more educated in these functional areas
Participating employees will be more well rounded in
several areas including global leadership and business
concerns
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14. College of Business Administration
Why IBM Recommends This Program to
Other Corporations
Program accessibility/ease of online functions
CBA accreditation
US-based online program
Cohort delivery model allows students to complete first
year’s core courses together. Second year electives are
taken with students from multiple countries
Has increased our retention rates for these top talent
employees by nearly three times
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15. College of Business Administration
Thank you for your time.
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Management Sponsor
Management Sponsor
StudentStudent
Photo from Financial Times online: www.FT.com