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"If my foresight were as clear as my hindsight, I should be better off by a damned sight."

J. L. Mott, President of the Iron and Steel Association, 1873

The Twenty-First Century IBM Home Page

Published July 19, 2021
Updated April 2, 2022
An Image of 21st Century IBM History: Dancing Elephants, Earnings-per-Share Roadmaps, Divestiture and Breakup Strategies.
 IBM's Twenty-First Century Overview, Performance and Practices
IBM is one of the world’s most representative corporate social ecologies. If IBM were a city, its representation from more than 175 countries would make it one of the world’s most educated and ethnically diverse. Its population would place it in the top forty cities of the United States or Brazil, the top ten of Malaysia, the top five of France or the top two of Romania or Norway.
Employee Engagement as IBM Exited the Twentieth Century
From 1980 to 1985 this corporate metropolis expanded 19%, from 341,279 employees to 405,535. It then contracted over the next decade by 31% to 278,039. The strain of such a population drop on a corporate society can be understood in the visualization of an equivalent 30% loss (28.5%) in one metropolitan society: Detroit, Michigan, from 1990 to 2014.
​An Internet search of the words "Detroit Decay" pictorially reflects how such population changes can alter not just the economic infrastructure of a city, but the psyche and social fabric of its people. If this picture of city decay had ever reflected the inner spirit of IBM’s employees, it would have taken decades to recover in the '90s.
Picture of Detroit after changes in city representative of the 21st Century IBM.
IBM's Corporate Society Never Looked this Bad B.G. (Before Gerstner)
​​But in 1993, it only took a single year to turn the corporation around because—unlike what Louis V. Gerstner wrote in his book—IBM's culture was still intact.

​​IBM's employees were still engaged.
Employee Engagement as IBM Enters the Twenty-First Century
IBM's leadership has once again—under the premises of right sizing and workforce rebalancing—spiked and then slam dunked its workers around the world. ​IBM has been moving workloads to lower-wage countries for almost two decades, obscuring these moves by limiting the information it releases to its shareholders and the societies within which it does business.​

​From 1999 to 2012 IBM's employment grew by an astronomical 32% to a historic peak of 466,995. It has since plummeted by 34%—one out of every three employees—in the last decade. Meanwhile, the corporation became even more opaque: it has refused to release its U.S. employment numbers since 2008.
Since the end of 2011, IBM has jettisoned at least 158,000+ employees—many in high-wage countries, with 51,000 being released in 2014 alone. This was the year the company sold the x86-Server Division. Then, with the Kyndryl divestiture in 2021, IBM's full-time equivalent headcount fell 67,700.
A chart showing IBM's worldwide headcount from 1999 through 2021.
IBM's employment number of 307,000 in 2021 was last equaled in the "Crisis of 1993-96" and before that in 1977.
The strain these changes have put on the corporation's social infrastructure is again unimaginable and is reflected in a continuous fall in sales and profit productivity. Since 1999, adjusted for inflation, sales productivity is down 54% and profit productivity is down 47%.

No matter what its chief executives say, the data speaks volumes: IBM's twenty-first-century employees are no longer engaged. This is why the corporation has not published anything resembling an overall, audited, corporate-wide engagement number since 2011. ​Virginia M. Rometty dropped this vital statistic from IBM's Annual Reports, and Arvind Krishna in IBM's 2021 Annual Report inserted the following meaningless marketing fluff about voluntary turnover:
Voluntary attrition was higher in 2021 than in 2020 consistent with the overall labor market. On a longer horizon, the average voluntary attrition rate of the pandemic years (2020 and 2021) was still lower than the previous two years (2018 and 2019).
The stories in this section can be accessed from the "21ST CENTURY IBM" menu above or ​by selecting one of the menu buttons below which are supported with additional descriptive text.
IBM's Twenty-First Century Performance and Practices

corporate performance
This section begins with a comparison of the business results of two, sixteen-year-periods of transition at the IBM corporation. ​Using key performance indicators (KPIs) it is easy to visualize very positive and very negative results between the 20th and 21st Century IBMs.
Four IBM CEOs' with their corporate performances.
There are articles on: IBM's 21st Century Brand, Patent and Revenue Performances.

corporate practices
This section asks, researches, and answers some critical questions about 21st Century IBM business practices that any chief executive or analysts should study and understand. ​For instance, a simple question about shareholder maximization such as, "Have Share Buybacks Worked at IBM?"
Picture or four IBM CEO's and the Corporate Practices.
​Other topics include: (1) "Has IBM Maximized or Minimized Shareholder Value," (2) "How Has IBM's Acquisition Strategy Affected Shareholder Risk," and (3) "How Has Workforce Rebalancing Impacted Employee Productivity," and others.

​Ceo performances
This section provides detailed performance results for Arvind Krishna and Virginia M. (Ginni) Rometty.

​It includes but is not necessarily limited to: (1) Market Value, (2) Shareholder Returns and Risk, (3) Share Buybacks, (4) Employment Security, and (5) Revenue and Profit Growth and Productivity.
Picture with four boxes for the four 21st Century IBM CEOs.
© 2022 Peter E. Greulich. All Rights Reserved
​
Information posted on this site recognizes the legal right of copyrighted material. The following material is considered in the public domain effective January 1, 2022: (1) works published in the United States prior to 1927, (2) works published in the United States after 1926 but before 1964 with a proper © copyright notice that were not renewed in their 28th year, and (3) works published in the United States before 1978 that have no © copyright notice, and (4) all unpublished works created over 120 years ago. Other documents used here that do not fit these criteria are used in good faith and a belief that such usage would withstand a test of fair use. Any concerns with the public domain or fair usage of material on this site will be removed until a discussion can resolve the matter with its permanent removal or republication. Just use the "Contact" menu item above or the "Contact Us" hyperlink provided here: [Contact Us]
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        • Massive Work Slowdown
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      • Financial Engineering >
        • Workforce Rebalancing
        • Aggressive Bookkeeping
      • Shareholders >
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        • Shareholder Risk
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        • Warren Buffett's Mistake
        • Do Share Buybacks Work?
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          • Revenue & Profit
          • Revenue & Profit Growth
          • Revenue & Profit Productivity
          • IBM Market Value
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          • Share Buybacks
        • The First 100 Days
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        • Shareholder Value
        • Shareholder Risk
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        • Revenue & Profit Growth
        • Revenue & Profit
  • 20th Century IBM
    • Corporate Performance >
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        • Shareholder Returns
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        • Profit Per Employee
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        • Goodwill
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          • Financial Engineering
          • The Greatest Gamble
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        • The Wild Goose
        • Royal Dissenters
        • Corporate Constitution
        • Respect for the Individual
        • Service to the Customer
        • Pursuit of Excellence
    • Corporate Products >
      • 1890: U.S. Census
      • 1920: Dayton Scales
      • 1940: The Electromatic
    • Thomas J. Watson Sr. >
      • Articles by Watson >
        • On World Peace
        • On the Cost of War
        • On Public Education
        • On Thomas Jefferson
        • On Thoughtful Mistakes
        • On Stakeholder Relations
      • Articles about Watson >
        • The $1,000-A-Day Chief Executive Officer
        • Employees are Valued
        • Democracy's Man o' War
        • Human Relations in 1956
        • A CEO Who Earned His Pay
        • The Lengthening Shadow
      • Slice of Life Stories >
        • Dali, Salvador
        • Drucker, Peter F. >
          • Authority and Power
          • Short-Term Thinking
          • A Corporate Culture
          • Raising Business Issues
          • Focus on Principles
          • Character and Manners
          • Knowledge Workers
          • Recognizing Ability
          • Individual Respect
          • Employee Paternalism
        • Eastman, George
        • Penney, J. C. (James Cash) >
          • Watson Homestead
          • Golden Rule Businesses
        • Fighting Discrimination
      • Pre-World War II >
        • A Lost Dream of Peace
        • USO Camp Show Founder
      • World War II Effort >
        • Selling War Bonds
        • Production Awards
        • Controlling Profits
        • Machine Records Units
        • Wartime Contributions
        • Widows & Orphans Fund
        • Declaring Human Rights
        • Supporting Home Morale
        • Employee Military Service
        • War's End & Reconversion
      • Post-World War II >
        • Endicott Memorial
        • Poughkeepsie Memorial
        • Rehiring WWII Veterans
      • A Pajama Party
      • A 1943 Tax Problem
      • The Story of "THINK"
      • A Gift of Retirement
      • Learning from Crises
      • IBM Employee Housing >
        • Construction Timeline
      • Two Journalists "THINK"
      • A Buddy Davis Interview
      • Quotes of Watson
      • Quotes about Watson
      • Women in the Workplace
      • A Successful Rebranding
      • Tom Watson's Wild Ducks
  • Articles
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      • The Art of the Restart
      • Crises, Recoveries & Lessons Learned
      • Strategy Should Create Human Relationships
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