LIVE PROJECT

ON

CASE STUDY: TRAINING EMPLOYEES OF IBM THROUGH E-

LEARNING

(The Class of 2009-2011)

INC, Pantnagar

Submitted to submitted by
Mrs. Rachna Bamba Asmita das and
Harsimrat kaur

1|Page
 CONTENT

S.NO CONTENTS PAGE NO.

1. ABSTRACT 3
2. SUMMARY 4
3. QUESTION FOR DISCUSSION 5-11
4. REFERENCE 12

ABSTRACT

The case explains in detail the concept of 'e-learning' - the new mode of employee training
adopted by IBM. IBM had focused on its workforce development since inception. The case
discusses in detail about how IBM implemented different e-learning programs for different
groups of employees, based on their requirements. The company implemented the 'Basic Blue'
program for its new managers, which was based on a four-tier learning model. 'Sales Compass'

2|Page
was a program designed for its sales team which provided critical information to the sales
personnel that helped them to improve their selling skills and consequently the sales.
Managing@IBM was an exclusive program designed for experienced managers which offered
'just-in-time' performance support to the managers.They could interact with experts in different
fields and solve their problems from anywhere at any time. Finally, the case talks about the
benefits reaped by IBM from its e-learning initiatives and about its future endeavors in this field.

KEYWORDS: E-learning, employee training, IBM, workforce development, different groups,

employees, requirements, Basic Blue, managers, four-tier learning model, Sales Compass, sales
team, critical information, sales personnel, selling skills, Managing@IBM, experienced
managers, just-in-time and performance support.

SUMMARY

IBM (international business machine corporation) established in .since its inception , IBM had
been focusing on human resource development. The company concentrated on the education and
training of its employees as an integral part of development. The HR policies of IBM were eco-

3|Page
friendly. The company followed ‘no layoffs’ policy. IBM had emphasized on training its
employees from the beginning.

In 1933 the construction of the ‘IBM Schoolhouse’ to offer education and training for
employees, was completed. The building had THOMSON J.WATSON Sr. (the father of modern
IBM) ’Five Steps of Knowledge’ carved on the front entrance. The five steps included ‘Read,
Listen, Discuss, Observe and Think’. Managers are trained at the school at regular intervals. To
widen their knowledge base and broaden their perspectives, managers were also sent for
educational programs to Harvard, the London School of Economics, MIT, and Stanford. Those
who excelled in these programs were sent to the Advanced Managers School, a program offered
in about forty colleges including some in Harvard, Columbia, Virginia, Georgia, and Indiana.

In 1997, Louis Gerstner, the then CEO of IBM, conducted a research to identify the unique
characteristics of best executive and managers. He received the ability to train employees was
one of the essential skill. Then he adopted coaching methodology to train the employee. After
sometime Gerster realized that the training workshops were not enough. Moreover, these
workshops were not ‘just in time’. IBM trained about 5000 new managers in a year. There was a
five day training program for all the new managers, where they were familiarized with the basic
culture, strategy and management of IBM. The company specifically wanted its management
training initiatives to address the following issues:

1. Management of people across geographic borders.

2. Management of remote and mobile employees.
3. Digital collaboration issues.
4. Reduction in management development resources.
5. Limited management time for training and development.
6. Management low comfort level in accessing and searching online HR resources.

In 1999, IBM launched the pilot Basic Blue management training program, which was fully
deployed in 2000. Basic Blue was an in-house management training program for new
managers. It imparted 75 percent of the training online and the remaining 25 percent through
the traditional classroom. The tremendous success of the Basic Blue initiative encouraged
IBM to extend training e-learning to its sales personnel was known as ‘sales compass’ and
the one for the experienced managers as ’Managing@IBM’ prior to the implementation of

4|Page
the sales compass e-learning program, the sales personnel went under live training at the
companies headquarters and training campuses. They also attended field training program,
national sales conference and other traditional method of training. ’Managing@IBM’
provided content related to leadership and people management skills, and enabled the
managers to choose information based on their requirement. By implementing this program,
IBM was able to reduce its training budget as well as improve employee productivity
significantly. It also enabled manager to complete their classroom training modules in lesser
time, as compared to traditional training modules.

The e-learning projects of IBM had been successful from the initial stages of their
implementation. The Basic Blue program bagged three awards of ‘Excellence Practice’.
IBM also started exploring the evolving area of ‘mobile learning’. Analysis felt that for
mobile sales force of IBM, m-learning was the next ideal step. IBM leveraged many new
communication channels for offering its courses to its customers and to the general public.
In early 2002, American airlines used IBM’s e-learning package, which enable flight
attendant to log on to AA’s website and complete ’safety and security training’ from any
place , at an time. The company had trained 24,000 flight attendants by November 2002.

QUESTIONS FOR DISCUSSION

5|Page
1. “E-learning would never be able to replace traditional classroom training”. In the light of
above statement, compare and contrast the traditional methods with that of E-learning to
train employees in an organization.

Ans. Traditional training methods can be broadly divided into on the job training method and off the
job training method. On The Job training can be of following types: Learning by doing, mentoring,
and shadowing and job rotation. Off The Job training can be of following types: interactive learning
method and induction training.
E-learning also known as ‘distributed learning’, ‘distance learning’, ‘technology-enabled learning’
and ‘online learning’. It is a form of learning that uses a network for delivery, interaction, or
facilitation. The network might include LAN, WAN, intranet or intranet. E-learning can be
synchronized or asynchronous. In synchronous e-learning, classes are real time and in asynchronous
e-learning student can access pre-packaged training based on his requirement.

TRADITIONAL METHOD V/S E-LEARNING METHOD

Traditional Learning E-Learning

Classroom Discussions

The teacher usually talks The student talks at least as

more than the student.
much as or more than the

teacher.

Learning Process

The learning is conducted Most of the learning process

with the whole class takes place in groups or by

participating; there is almost the individual student.

no group or individual study.

Subject Matter

6|Page
 The teacher conducts the The student participates in

lesson according to the study determining the subject

program and the existing matter; the studying is based

curriculum. on various sources of

information, including web

data banks and net-experts

located by the student.

Motivation

The students’ motivation is The students’ motivation is

low, and the subject matter is high due to the involvement

“distant” from them. in matters that are closer to

them and to the use of

technology.

Teacher’s Role The teacher is the authority.

The teacher directs the

student to the information.

Location of Learning

The learning takes place The learning takes place with

within the classroom and the no fixed location.

school.

Lesson Structure

7|Page
 The teacher dictates the The structure of the lesson is

structure of the lesson and affected by the group

the division of time. dynamics.

The students learn “what” The students learn “how”

Emphases in the Learning and not “how”; the students and less “what”; the learning

Process and the teachers are busy includes research study

completing the required which combines searching

subject matter quota; the for and collecting

students are not involved in information from web data

inquiry-based education and banks and authorities on the

in solving problems, but communications network; the

rather in tasks set by the learning is better connected

teacher. to the real world, the subject

matter is richer and includes

material in different formats.

8|Page
 2. IBM implemented different e-learning programs for its new and experienced
managers, based on the differences in their requirements. Explain in detail how
IBM implemented Basic Blue and Managing@IBM e-learning programs to train
managers. Compare the two programs and identify the factors that differentiate
them.

Ans. In 1999, IBM launched the pilot Basic Blue management training program, which was fully
deployed in 2000. The foundation principle of basic blue was that ‘4-Tier blended learning
model’. The first three tiers were delivered online and the fourth tier included one-week long
traditional classroom training. It imparted 75 percent of the training online and the remaining 25
percent through classroom mode. The managers were divided into group of twenty four members
each. The content was provided through intranet.
The first tier trained them on the fundamental skills required to be an IBM manager and
offered them ‘just in time’ performance support. The managers were provided access to a lot of
information including a database of questions, answers and sample scenarios called Manager
Quick Views. This information addressed the issues like evaluation, retention, and conflict
resolution and so on, which managers came across. A manager who faced a problem could either
access the relevant topic directly, or find the relevant information using a search engine. He/she
had direct access to materials on the computer’s desktop for online reading. The material also
highlighted other important web sites to be browsed for further information. IBM believed that
its managers should be aware of practices and policies followed in different countries. Hence, the
groups were foremen virtually by videoconferencing with team members from all over the
world,”

In the second tier, the managers were provided with simulated situations. Senior managers
trained the managers online. The simulations enabled the managers to learn about employee
skill-building, compensation and benefits, multicultural issues, work/life balance- issues and
business conduct in an interactive manner. Some of the content for this tier was offered by
Harvard Business School and the simulations were created by Cognitive Arts of Chicago. The
online Coaching Simulator offered eight scenarios with 5000 scenes of action, decision points
and branching results. IBM Management Development’s web site, Going Global offered as
many as 300 interactive scenarios on culture clashes.

In the third tier, the members of the group started interacting with each other online. This tier
used IBM’s collaboration tools such as chats, and team rooms including IBM e-Learning
products like the Team-Room, Customer-Room and Lotus Learning Space. Using these tools,
employees could interact online with the instructors as well as with peers in their groups. In this
tier, the members of the group had to solve problems as a team by forming virtual groups, using

9|Page
these products. Hence, this tier focused more on developing the collaborative skills of the
learners.
Though training through e-Learning was very successful, IBM believed that classroom training
was also essential to develop people skills. Therefore, the fourth tier comprised a classroom
training program, own as ‘Learning Lab.’ Managers had to pass an online test on the content
provided in the above three tiers, before entering the fourth tier. In the fourth tier, the managers
had to master the information acquired in the above three tiers and develop a deeper
understanding and a broader skills set. There were no lectures in these sessions, and the
managers had to learn by doing and by coordinating directly with others in the classroom.
The tremendous success of the Basic Blue initiative encouraged IBM to extend training through
e-Learning to its-sales personnel and experienced managers as well. IBM also launched an e-
Learning program called ‘Managing @ IBM’ for its experienced managers, in late 2001. The
program provided content related to leadership and people management skills, and enabled the
managers to meet their specific needs. Unlike the Basic Blue program, this program enabled
managers to choose information based on their requirements. The program included the face-to-
face Learning Lab, e-learning, and Edvisor, a sophisticated Intelligent Web Agent. Edvisor
offered three tracks offering various types of information. The first track was just in time
performance support, second was Managing@IBM learning lab and third was managing
development planning.

COMPARISON BETWEEN BASIC BLUE AND MANAGING@IBM METHOD OF E-LEARNING

BASIC BLUE MANAGING@IBM

Basic Blue was an in-house management ‘Managing @ IBM’ was for its experienced managers
training program for new managers.

Unlike the Basic Blue program, this program

enabled managers to choose information based on
their requirements
The e-Learning part included articles,

Simulations, job aids and short courses.

The program offered basic skills and The program provided content related
knowledge to managers so that they can to leadership and people management skills,
become effective leaders and people- and enabled the managers to meet their specific
oriented managers. needs.

10 | P a g e
Basic Blue was based on a ’4- Tier’ blended
learning model.’
The program included the face-to- face Learning Lab,

e-learning, and Edvisor, a sophisticated Intelligent

Web Agent. Edvisor offered three tracks offering
various types of information.

3. IBM claimed to have saved millions of dollars by adopting online training methods.
What, according to you are the benefits of training employees through e-learning?
How do employers gain from it? What can be the possible disadvantage of e-
learning? Explain.

Ans. Benefits of e-learning are as follows:

1) Lifelong learning for all learning styles. E-Learning is a key means of delivering

lifelong learning, cultivating a culture of innovation and expanding productivity. E-Learning
environments allow learners to move at their own pace and can be more effective for
learners who are shy, reflective, or require more time to absorb information.
2) Quality control and consistency. E-Learning provides a consistent delivery of material
and builds a shared language and understanding in the workplace; it also allows employers
to customize content and monitor employee’s progress. With long-term licenses, employees
can also review material at their convenience thereby ensuring uptake.
3) Increased productivity and decreased expenditures. E-Learning can be completed at
the time and place that is most convenient for the employer and employee. This saves time
and reduces or eliminates travel and printing costs. E-Learning is the most cost effective
means for training large numbers of employees and allows follow-up training to be more
focused and effective.
4) Shared Understanding - A better and more holistic understanding of sustainability and
its root causes and solutions. This provides a shared language for staff and encourages
dialogue and innovation.
5) Engagement - A greater sense of the collective and individual responsibility for taking
action on sustainability, particularly the importance of integrating sustainability into
business decision-making and the positive impact that individuals can make by changing
their behavior.
6) Transformation - A catalyst for action and change within individuals and organizations
that use it.

Employers gain from it:

11 | P a g e
 1. Improved project deployment
2. Increased team performance and productivity
3. Improved customer satisfaction
4. Enhanced efficiency
5. Increased employee expertise and retention

Disadvantage of e-learning are:

 Learners with low motivation or bad study habits may fall behind.

 Without the routine structures of a traditional class, employees may get lost or confused
about course activities and deadlines.

 Employees may feel isolated from the instructor and classmates.

 Instructor may not always be available when employees are studying or need help.

 Slow Internet connections or older computers may make accessing course materials
frustrating.

 Managing computer files and online learning software can sometimes seem. complex for
employees with beginner-level computer skills.

 Hands-on or lab work is difficult to simulate in a virtual classroom.

12 | P a g e
 REFERENCE

 www.mbaknol.com/
 http://www.developers.net/tsearch?searchkeys=e-
learning+versus+traditional+learning
 http://www.researchtrail.com/articles/
 http://www.about-elearning.com/e-learning
 http://www.1stclass.com
 http://edweb.sdsu.edu/people/arossett/eportfolio/popup_ibm.asp
 http://www.wseas.us/journals/educationinformation/eit-79.pdf

13 | P a g e