An almost 15 minute interview with AK on CNBC. Pay attention, particularly from 5:15 - 7:00, when he's discussing structural changes to the business and then from 12:24 - 14:11 when he's discussing hiring and skills across the world: read the tea leaves.
Noteworthy assessment at 6:34:
"Be nimble, pragmatic and aim for speed over elegance."
Behemoth organizations with 350K+ employees can't be nimble and speedy. . .
https://www.youtube.com/watch?v=WaOYifslReA
Colleagues
This has been an emotional time for all of us. As a company, we have been operating well in our new work-at-home situations, thanks to your tremendous adaptability and agility. Nonetheless, we are in a pandemic and this takes its psychological toll over a prolonged period. Rest and recovery is an important element of resilience, and now more than ever we all need to take time to recharge.
We also need to to be ready for when our clients and economies begin to recover and need us at our best. As a company, we will need to avoid a disruptive loss of productivity later in the year where we could end up with IBMers taking all their vacation time just when our clients and our business will need us most.
For this reason, IBM enterprise wide will be introducing a Q2 Vacation Program which will be managed through our GBS management systems to ensure we can balance client continuity and vacation burn specific to our client needs.
We would aim to do this by applying the following principles across and within all GBS markets
1 ALL Indirect and Non-Billable resources will be expected to take 5 days’ vacation preferably in April. Where this is not possible the vacation should be taken by no later than the end of Q2.
2 GTM Partners/Assoc partners will be asked to take 5 days vacation over the quarter, but only when authorized by the Geo Managing Partner.
3 Billable Practitioners: any practitioners on the bench, defined as less than 30% chargeable ute (rolling average over the last 13 weeks), will be expected to consume at least one week of their vacation when they have been on the bench for 1 week or where we see no confirmed billable role within the next 2 weeks. ALL other billable resources who are deployed in serving our clients who request vacation, should follow the existing approval and protocols.
We will exclude the GIC, (inc CPSD), GCG in Q2, but will keep the situation under constant review.
Now, you will all know better than I, the need to balance our operational needs with client demand, and we are therefore leaving this to you to manage in a way that does not impact either our revenue, signings and profit, particularly in our billable populations, but also ensuring that we are able to allow our people to take vacation during this time.
Your Only Action Required
Please forward this note with your respective GBS Senior Leadership Team for their awareness
IBM Individual Communications
To avoid confusion, individual-level communications will be managed exclusively within the local IBM markets in conjunction with the local GBS leader. Market communication will consist of an IBM-wide notification to all IBMers and will be followed by a GBS communication that is specific to the employees' geography.
Regards
Steve
Stephen Kelly
Global HR, Global Business Services
As we reach the second month of the pandemic here, I am reaching out as Chairman of IBM North America to strongly encourage you to take five days of earned vacation during the second quarter.
Almost all of us have managed the challenges of the pandemic with new routines at home and in our work. Vacation plans have taken a back seat to other priorities. Yet rest and recovery are important elements of resilience, mental health and stress reduction. Taking care of ourselves now is important so we can better care for each other and be at our best for our clients. Putting a structure in place ensures that we will in fact take the time to recharge.
Taking vacation now will also help us better balance client demands for the remainder of the year – when our clients' needs will increase as they emerge from this crisis. Please make plans now to take five days of earned vacation this quarter. If you have questions or concerns about managing upcoming projects, please discuss with your manager to determine the best approach for your team. As a reminder, if you elect to visit locations where COVID-19 community spread has occurred during your time off, you may be required to self-isolate upon your return.
Exceptions to using second quarter vacation may include certain business essential colleagues and those in client-facing roles whose client obligations may not permit time off in the quarter. For these IBMers, please work with your manager to arrange for vacation time that works best for you in the context of your business demands. For those in GTS, GBS and Systems, please look to additional guidance from your local business unit leaders shortly.
I will also mention that we have heard from IBMers who need additional help in balancing work and family responsibilities. IBM's U.S. Work Option Leave of Absence Program permits temporarily converting to part time hours with eligibility for the same benefits as full-time employees without change to health coverage and premiums. You can learn about the other ways we are supporting U.S. IBMers with enhanced benefits here.
oops, wrong thread sorry
Post ID: @2evj+14nCHvRV
TSS email said it was STRONGLY ENCOURAGED. It did not say mandatory Vacation is required in NA.
I do not believe he passed. I think we need to wait for 1st q earnings. If you see a substantial restructuring charge recorded, you know a major shake up is working behind the scenes I actually expect it, as everyone has a get out of jail free card earnings wise in the 1st and 2nd q due to the virus pandemic running Around the world. IBM I believe will lean heavily on spinoffs vs layoffs, but the virus was a black swan event that no one planned on, and so the restructuring details have to be worked out. The mandatory taking of vacation in 2nd q says something is brewing
Anyone else surprised at how FEW changes Arvind made to the executive team? Other than MS retiring, the #2 RH guy becoming the #1 RH guy, a new CTO, and a few execs taking on some additional responsibilities, it's the same exact team in the same exact roles as before. This was his chance to shake things up and he passed.
OK you have to view this thru the lens that he inherited a lot of baggage. Not his choice, but he owns it. With that said he laid out his strategy moving forward. Marketing to Enterprise accounts using a Redhat strategy to preserve/mine/modernize/consult/Implement a cloud strategy for the fortune 1000. That strategy when you run the numbers means IBM is going to shrink. Mostly in services that don’t fit The go forward strategy anymore, but also in commodity offerings. That’s the net of those 15 minutes. OH and by the way He doubled down on the SAM / Ginni priority of “if he can find cheaper talent, he is going to hire it”. I’m not positive it means layoffs, but it certainly means sell off’s. Given everyone’s input from this board who say “IBM is over staffed with managers, spreadsheet jockeys, etc etc” I would expect IBM to lay-off in the 1-2 billion range (15k per billion in first world countries, and 30k per billion in 3rd world countries) (lets say 60k max). then sell off what doesn’t play to the cloud strategy (lets say 75-100k). The selloff divisions have value, BUT just not value that IBM wants to invest in anymore as it transforms within the inherited FUBAR that Sam and Ginni left
IBM is even more doomed now that under Ginni...
Good luck IBMers!
IBM is doing the Agile dance, they hardly care about saving money or trimming fat.
When challenged about bringing jobs back to the US- a softball question that any sensible CEO of an AMERICAN company would say “of course” to, he flat out says no! Disgusting and shameful.
Wow, this is shocking and embarrassing to see. This guy is completely inarticulate and comes across as very ill prepared. Couldn’t they have gotten him some executive coaching?
Unfortunately, Krishna inherits a workforce too intimidated to innovate or dabble in constructive risk-taking given failure is invariably used to justify the next review's PIP. The climate of fear deliberately engineered during Rometty's tenure means many now operate in submissive compliance mode only. Most of the best people at IBM have moved on, to be displaced by malleable and more easily intimidated millenials.
@cri – maybe we could play to their strengths and direct them to the areas that need new furniture so they could destroy it and then the business would be forced to replace it with updated furniture.
@ade+: I've personally seen the same behavior from the new Rhat president that was announced monday. Maybe they'll all destroy the same furniture in the same room and save the company some money?
Ballmer persona
I have now read several accounts here and on other sites about Krishna's persona - it sounds a lot like Ballmer - especially the tantrums and furniture abuse.
God help us all.
IBM stubbornly believes that its niche is enterprise infrastructure. Buzzwords like block-chain and quantum remain buzzwords. Krishna himself admitted that watson had overpromised after it was smacked in the face by oncology. The transition to cloud was forced and late.
Swept away in the tide is some incredible talent - one or two of whom would have restarted the great engine. What is left is a bureaucray, disillusioned customers, and a prom room.
To change IBMs destiny Krishna needs Nadella-magic and a Steve Ballmer persona. And results - quickly.