IBM developed the Workforce Management Initiative (WMI) to more efficiently manage human capital and talent acquisition. WMI restructured HR into cross-functional teams serving executives, managers, and employees. It also implemented new roles for HR and leadership, requiring additional training. WMI standardized skills into 4,000 measurable sets and identified skills across IBM's entire workforce. This allowed for improved collaboration between HR and business operations to identify and acquire the best talent to meet business needs.
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Introduction
IBM is the world’s largest and most respected manufacturers of information
technology. With stiff competition from other manufacturers such as Microsoft, Cisco
Systems, General Electric, and Hewlett-Packard, IBM realized that, in order to stay on
top, the company needed a new way to assess and acquire the best talent in
technology. Talent acquisition is a process that generally befalls the Human Resource
(HR) department of any business. Therefore, IBM determined that the best and first
changes need to focus on the way that HR operates. IBM needed a more accurate yet
efficient way to manage human capital. Through innovative thinking and collaboration,
executives at IBM developed the Workforce Management Initiative (WMI) to help the
HR elements of the business flow seamlessly instead of operating independently and ill-
optimized as in the past. The result is an integrated HR system unlike the world ever
saw, even though systems similar to this existed before in smaller businesses.
Optimization and innovation stood out as the key to IBM’s successful repurposing and
restructuring of HR to act as well-oiled, talent acquiring machine.
New Structures and Roles
The new structures and roles for HR mean that the HR leaders at IBM faced the
same critiques as the company’s other talent. In addition, use of the new WMI system
meant that the HR officials at IBM needed assessment and training to operate
effectively. First, a restructuring of the HR roles and mission meant that many in HR
gravitated into new positions with new, different, and changing responsibilities. The
organizational structure that emerged as a result of the formation of WMI immediately
alerted those in HR that a structural change took place. The traditional structure of the
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company, which segmented each area of HR, was inefficient, but the new structure
under the WMI led to a steady, flowing supply of human capital where needed. The
WMI cut HR into a layer cake of three customer sets: executive and technical
resources, managerial talent, and rank-and-file employees, with cross functional HR
teams serving each layer (Grossman, 2007).
In addition, the new structure signaled that those in HR attained new roles,
covered more than one area, needed additional training, or became obsolete. No one at
IBM is safe from being in that obsolete category; those lacking necessary competencies
have the opportunity to be trained if they can and want to be (Grossman, 2007). The
WMI system took all of the IBM workers, from executives, management, and workers,
identified them, defined them, and assigned them to operate under more than one role if
needed. Analyst broke down each employee profile, explored each skill set, and
determined the role for each employee as a result (Grossman, 2007). These employees
and their skills fall under 4,000 measurable and defined skill sets, all of which are
monitored by the IBM HR department (Grossman, 2007). Because IBM developed this
system, the company also holds requirements for its HR officials. The experience the
company has in analytics, research, and development helped the company determine
the level of expertise required of its HR department workers. The HR leaders under
WMI held the responsibility of increasing their business and HR knowledge through
training and collaboration in order to become a better supporting player.
A challenge facing HR as IBM changed its structures and roles involves providing
feedback and information to other leaders not verse in HR. When IBM decided to scrap
the traditional structure of HR, the company embroiled itself into a tedious process of
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analyzing qualifications and roles of the company’s leadership. The discovery of leaders
in need of new initiatives and new training became evident. In the new structure, those
in HR find themselves better equipped and able to give feedback and training to those
executives with obsolete positions, skills, and training. Also, the new structure
positioned HR to collaborate with the business side of IBM, as opposed to just
employee performance. Traditionally, it was very easy for the HR operations to become
disconnected from the business operations, because HR leaders working as business
partners might not be familiar with the global process operations and vice versa
(Boudreau, 2010). The result is that the company is a leader in employee development,
talent mobility, expertise management, leadership, business, and many other HR
practices (Bersin, 2013). “The tie that binds all talent directors is knowledge of the
individual business sectors” (Grossman, 2007, assembling the team).
Skill Expectations
With the inclusion of the WMI, business leaders at IBM need skills directed
toward the needs of the employee base. These skills target motivating the workforce,
relating to the workforce, and encouraging learning and responsibility. Leader
performance is based on complex problem-solving skills, solution construction skills,
and social judgment skills; all with a body of knowledge or expertise in one or more
disciplines (Connelly, et al., 2000). When combined, leaders have the skills needed to
provide solutions and constructive feedback to the workforce that helps workers meet
company objectives. Many times, it is a lack of one of these basis skills that causes fails
in the business relationship of employers and employees. Therefore, the most valuable
skill lies in the social skills. A leader that holds the ability to socialize effectively holds
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the skill to persuade, negotiate, and motivate while providing judgment and decisions to
the workforce. In addition, many attributes need to follow a leader’s skill set, such as
integrity, ability to communicate, and vision (Boudreau, 2010). These attribute translate
into a leader who organizes and structures for company events and activities, such as
training sessions, professional development, and performance management (Boudreau,
2010). Other elements that satisfy the WMI include competencies. Competencies, like
passion, drive, and trustworthiness, are inside people inherently and not taught or
trained. By using competency models, IBM leaders look for employees to display these
qualities while performing on the job.
When HR runs as efficiently as it does at IBM since WMI came, the leadership
holds the opportunity to focus on business issues. However, by obtaining knowledge of
the employee pool and how HR acquires talent is helpful for both departments. The
interactions and dialogues between the business leadership and HR breed an
environment where the two departments confer to acquire talent that better meets the
needs of the business. This is because the business leaders, through interaction with
HR, share their knowledge and requirements for new talent so that HR has the
information needed to deliver. Once the new talent begins a career path at IBM, the
leadership already has those individuals with the skills and knowledge needed to
enhance company performance and meet goals.
Leveraging with WMI
The success of WMI became another marketable and profitable tool for IBM. As
a firm that turned its successful turnaround into a consultation service for other
business, IBM stands to use its WMI system to help other businesses in their talent
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searches. In addition, IBM developed software for other HR departments of other
enterprises. IBM also earned back its status as one of the big innovators in technology
thanks to WMI. The benefits represent a rise in stock value, satisfaction of the
stakeholders, increase in customers, and a product that IBM could sell. IBM also
realized its own cost savings since use of WMI. WMI integration cost IBM millions of
dollars but this money returned to the company in the form of hard savings due to use of
better systems, such as management of contractors and full-time employees
(Boudreau, 2010). To retain the balance between soft benefits and hard benefits, IBM
needs to allow WMI to continue to function as a living resource. The changes that occur
in WMI allow the company’s workforce and HR to adapt in three year increments. This
keeps the WMI updated and cost-effective.
Conclusion
When IBM fell on hard times, the company restructured instead of slacking. The
Bible teaches man that preparation is the key to survival during hard times but also in
good times. In Proverbs, the Scripture teaches that, “A slack hand causes poverty, but
the hand of the diligent makes rich. He who gathers in summer is a prudent son, but he
who sleeps in harvest is a son who brings shame” (Proverbs 10:4-5, NIV). Because IBM
continues to plans during these good times, the company guarantees its survival for
many years to come. The WMI system is an entity that refreshes itself and requires
those who enjoy their careers at IBM to constantly mold themselves, colleagues, and
subordinates in the manners that benefit the company most. HR at IBM serves as a
model for other companies to follow and as an additional product for IBM’s use in its
product repertoire.
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Resources
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12, 2014 from http://www.forbes.com/sites/joshbersin/2013/01/31/ibm-launches-
its-smarter-workforce-initiative/
Boudreau, J. (2010). IBM’s Global Talent Management Strategy: The Vision of the
Globally Integrated Enterprise. Society for Human Resource Management.
Boudreau, J. (2010). IBM’s Global Talent Management Strategy: The Vision of the
Globally Integrated Enterprise. Strategic HR Management case study–PART B.
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Connelly, M., Marks, M., Mumforda, M., Zaccarob, S. (2000). Leadership skills:
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an.aspx
Proverbs 10:4-5, New International Version
