Thread regarding IBM layoffs

Too big to fail

I've been reading over these forums for the past few months and I'd have to agree most of you do not fully understand business and finance... IBM will live on, I'm sorry that bothers many of you.

A resurrection of IBM would be terrific. If I thought drinking the Kool-Aid would help, I might even support comments like that above.

I am the first to admit that I don't understand "business". I thought "business" was about building and selling successful products to customers who are willing work to together towards mutual benefits in a sustainable environment where all are rewarded for their contributions. I have a lot to learn.

IBM has already failed its employees, customers, and partners. Yet in the "business" world that you refer to IBM still claims to be a success. Why is that?

Let's review the top 3 ways that IBM has failed outside of "Business and Finance":

  1. Belief in "IBM Exceptionalism". This may have been partially true 60 years ago. PhDs, top graduates and industry leaders from the world over came to IBM to partner with a winner. Most understood that "Team IBM" was competent, trustworthy and smart.

Today, there is no "team" in IBM. We are individuals who struggle to avoid the RA net. We still have smart people. Most head for the exits when they realize our real strength has become "IBM Incomprehension": the ability to hide internal disarray and disorganization long enough to convince a few customers that IBM still knows what it is doing. Too bad because once you get inside, there is no way to unsee the mess that is the modern IBM.

  1. It's all about shareholder value stupid. Long gone is the idea that products or innovation matters. It has been decades since executives have been measured by metrics like sales growth, employee contributions or customer satisfaction (for obvious reasons). The problem is: employees still think these things matter. Your general manager's bonus is the only thing that decides whether you keep your job. Stop working for the customer and do what makes your boss look good. Not exactly transferable skills - but most things we learn at IBM these days are not particularly useful.

  2. Trust. When employees no longer trust their employer, it shows. Discarding older employees can help. They have seen the veracity erosion - and they talk. Hire new people to see how long they can be fooled. I think IBM is learning that the new generation of employees is not as naive as older workers. The decline in morale and productivity can only accelerate.

Some say "IBM is too big to fail". I think we are seeing "The bigger they are, the harder they fall".

by
| 1695 views | | 8 replies (last ) | Reply
Post ID: @OP+ZCn6lzX

8 replies (most recent on top)

IBM has not yet reached their "tipping point". When they do the flight away from their nonsense will be massive and irreversible.

by
| | Reply
Post ID: @6ugd+ZCn6lzX

As a retired IT professional who worked with IBM mainframe all my career,I think back in the old days,IBM did not have the same kind of competitors like it has today.

The young brassy smaller outfits are quicker,smarter and more adapted to change,more willing to take risk,and better capitalised too.

Why not ask Bill Gates,he knows.

by
| | Reply
Post ID: @1dfu+ZCn6lzX

@-ktr: Here's the link to WSJ article --

https://www.wsj.com/articles/strong-returns-lift-pay-for-software-ceos-11560776400

For most software-and-services CEOs, pay generally rose or fell in the same direction as their companies’

total shareholder return at differing magnitudes.

(That's the paragraph just preceding the one you quoted. A perfect segue way!)

by
| | Reply
Post ID: @1clw+ZCn6lzX

Hmm ... IBM's idea of investing "a lot" is to spend a bunch of money on stupid TV ads making ridiculous claims about what Watson supposedly has solved next. The cognitive ones are particularly cringe-worthy and the laughing stock of the tech world.

by
| | Reply
Post ID: @rdp+ZCn6lzX

The modern definition of US business success: Do whatever you can get away with. If you make money, then you are a success.

IBM is doing well on the first part...

by
| | Reply
Post ID: @lll+ZCn6lzX

So what are the big 5 camss

Cloud = investing in hard and trying to grow. Hello Redhat

Analytic / cognitive again investing hard and trying to grow

Mobile = gone

Social = gone

Security - investing hard and growing, BUT it’s still small

by
| | Reply
Post ID: @fdd+ZCn6lzX

From the Wall Street Journal today, 6/18/2019, regarding CEO pay for large software and cloud companies. To those in denial of the massive problems at IBM.

“In­ternational Business Ma­chines Corp. paid Vir­ginia “Ginni” M. Rometty—the only woman among the 27 soft­ware-com­pany chiefs—$17.6 mil­lion, a slight dip from 2017 be­cause of a de­cline in her bonus. To­tal share-holder re­turn for IBM was mi­nus 22.6%, the sec­ond-worst in the in­dus­try. IBM de­clined to com­ment”.

by
| | Reply
Post ID: @ktr+ZCn6lzX

Look where some very recent layoffs are happening:

AI Watson, Blockchain & Cloud

So what's the next big hype IBM plans on jumping into? RedHat projection's wont cut the mustard.

by
| | Reply
Post ID: @gxn+ZCn6lzX

Post a reply

: