Reference no: EM131450162

Question: Multicultural Multinational 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."

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?