Multicultural Teams at IBM

When many people think of a traditional, established
company, they think of IBM. IBM has been famous for its
written and unwritten rules—such as its no-layoff policy,
its focus on individual promotions and achievement, the
expectation of lifetime service at the company, and its requirement
of suits and white shirts at work. The firm was
one of the mainstays of the “man in a gray flannel suit”
corporate culture in the United States.
Times have certainly changed.
IBM has clients in 170 countries and now does
two-thirds of its business outside the United States. As a
result, it has overturned virtually all aspects of its old culture.
One relatively new focus is on teamwork. While IBM
uses work teams extensively, like almost all large organizations,
the way it does so is unique.
To foster appreciation of a variety of cultures and open
up emerging markets, IBM sends hundreds of its employees
to month-long volunteer project teams in regions of
the world where most big companies don’t do business.
Al Chakra, a software development manager located in
Raleigh, North Carolina, was sent to join GreenForest,
a furniture manufacturing team in Timisoara, Romania.
With Chakra were IBM employees from five other countries.
Together, the team helped GreenForest become
more computer-savvy to increase its business. In return
for the IBM team’s assistance, GreenForest was charged
nothing.
This is hardly altruism at work. IBM firmly believes
these multicultural, multinational teams are good investments.
First, they help lay the groundwork for uncovering
business in emerging economies, many of which might
be expected to enjoy greater future growth than mature
markets. Stanley Litow, the IBM VP who oversees the
program, also thinks it helps IBMers develop multicultural
team skills and an appreciation of local markets. He
notes, “We want to build a leadership cadre that learns
about these places and also learns to exchange their diverse
backgrounds and skills.” Among the countries where
IBM has sent its multicultural teams are Turkey, Tanzania,
Vietnam, Ghana, and the Philippines.
As for Chakra, he was thrilled to be selected for the
team. “I felt like I won the lottery,” he said. He advised
GreenForest on how to become a paperless company in
3 years and recommended computer systems to boost productivity
and increase exports to western Europe.
Another team member, Bronwyn Grantham, an
Australian who works at IBM in London, advised
GreenForest about sales strategies. Describing her team
experience, Grantham said, “I’ve never worked so closely
with a team of IBMers from such a wide range of competencies.”
Questions
1. If you calculate the person-hours devoted to IBM’s
team projects, they amount to more than
180,000 hours of management time each year.
Do you think this is a wise investment of IBM’s
human resources? Why or why not?
2. Why do you think IBM’s culture changed from formal,
stable, and individualistic to informal, impermanent,
and team-oriented?
3. Would you like to work on one of IBM’s multicultural,
multinational project teams? Why or why not?
4. Multicultural project teams often face problems with
communication, expectations, and values. How do
you think some of these challenges can be overcome?

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