Thread regarding IBM layoffs

IBM’s Sales Culture is Toxic

IBM’s sales culture has pretty much ruined the company as many of executives have no real knowledge about the products and services they sell. They do however have a rather obsessive desire for more “high margin” sales.

The insane focus on sales and margins ruined this company - we went away from product dev, customer focus, moved all focus to sales - that's what killed IBM.

This is from six years ago:

IBM has developed growth objectives for earnings, and all indicators of the plan to achieve these aggressive targets seem to come at the expense of jobs, primarily jobs based in the USA – in favor of shipping them overseas, as this is thought to be ‘less costly’. The scale of a reduction required to achieve the aggressive growth targets for earnings suggest that while executives and sales folks will stay, most everyone else will need to go.

The staff changes will require massive cuts in technical folks. The very same technical wizards who invent the products, get the patents, establish a new and innovative technology that can create a dominant market position are the ones that will need to go to achieve the targets. IBM’s sales culture and its current strategic plan will kill IBM if Ginni can’t stop it, and so far, she is only promising more of the same.

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| 2348 views | | 6 replies (last June 15, 2017) | Reply
Post ID: @OP+NFqEIbY

6 replies (most recent on top)

This isn't 'nonesense'... whomever posted that obviously never worked at IBM.

By "Sales Culture" the author of this comment is correct.

There are way way too many "SALES Executives" who create the Sales Culture which is synonymous with creating the Sales Strategy. They come up with the spin and it rolls down hill in a massively hyped way and is repeated like propaganda which can only be described as CULT-LIKE. Unfortunately customers can hear the sizzle, but dont' get anything that resembles steak, more like scraps glued together. You can only get away with that for so long. Then next year, the same glued together scraps are then sold as Unicorn Crappe, as it is whipped up in a blender and served chilled at 2 times the price but 3 years financing is available!

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Post ID: @8krs+NFqEIbY

Nonsense. The sales team doesn't set strategy, fund research, etc. They sell what they are given to sell and csll it a "strategy". On what planet does the sales team benefit by declining sales and margins?

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Post ID: @2xmw+NFqEIbY

@1zua that's pretty much it... summed up nicely...

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Post ID: @1qnk+NFqEIbY

Most legacy enterprise product/software/IT firms have this problem.

With time, lack of innovation sets in as the entrenched interests within the company have well protected recurring personal gains - therefore, with minimal effort a significant gains are obtained. Any additional effort needed to make sure innovation happens has diminishing returns, so folks decide to add a minimal to no effort while collecting what they have ensured already.

At that point, all what you need to do is to continue to milk your base (exactly what we and other legacy companies are doing) - to do so, you need to have a strong, aggressive and unscrupulous sales arm. With time, sales and finance folks take over, operations/product folks take a back seat.

For example look at what happened to Apple after Jobs was fired in 1985 - sales folks milked revenue streams through 1995, things turned really ugly at that point. Jobs was back in 1997, spent two years building products and OSX, iPhone/iPad happened a while after.

Examples like this are numerous, granted that folks that are in specific industries that have monopolistic elements, limited competition and high barriers to entry, may have a bit different experiences (e.g., aerospace, heavy machinery, etc.)

Just my two cents on this...

Thoughts?

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Post ID: @1zua+NFqEIbY

Source: http://www.netnetweb.com/blog/top-10-reasons-why-ginni-rometty-will-fail-ibm%E2%80%99s-new-ceo

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Post ID: @1ekw+NFqEIbY

Where is that quote from?

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Post ID: @1slu+NFqEIbY

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