IBM's Two-Decade Long Stall and Fall in Employee ProductivityAt the end of 2021, every single 21st Century IBM employee produced 25% less revenue and when adjusted for inflation, 54% less; every single 21st Century IBM employee produced 14% less profit and when adjusted for inflation, 47% less. The revenue and profit productivity "tortoises" have overtaken the Gerstner-Palmisano-Rometty-Krishna profit hare. The "Productivity Insights" on each of the charts provided get across the impact of these productivity losses on revenue and profits. It seems to be a lost message in the 21st Century but productivity matters. Or as Tom Watson used to say, "Employee enthusiasm matters." Peter E. Greulich, A View from Beneath the Dancing Elephant Select image or link provided below to read the full article.
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Thomas J. Watson Sr. on the Importance of Employee Encouragement and Instruction.By keeping the importance of the man in mind, I find that we can promote self-supervision and cooperation, which I consider the most important assets of any organization. The man is more important to me than the title. Nearly every captain of American industry was “just a man” in some organization a few years ago and carries his title and position today because he proved to be the right kind of a man. The first principle of our policy is to stand back of the man and, by instruction, encouragement and aid, help him to develop himself. When this is done, and men are needed to take positions which carry the titles and greater responsibility, it is not necessary to go outside of the organization to find them. Every man in any organization should be taught that his most important duty to himself and his company is to cooperate with his fellow workers. He should be taught that, regardless of his ability, his efforts must mesh . . . without friction . . . with the other gears of the business machine of which he is a part, if he is to be of value to the organization. Thomas J. Watson Sr., "Personality in Business," 1917 Somehow, I always find it interesting that what we take for granted in what makes a winning "sports" team, we fail to consider critical in building a winning "business" team: A disciplined, cooperative football "team" will beat a bunch of "franchise players" posing as a team any day of the week. Peter E. Greulich
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Peter E. GreulichPeter E. has been studying IBM and early American corporate history since his retirement in 2011. These are his thoughts and musings, and of those whose biographies and autobiographies he has read with links to articles and book reviews on this website. Contact the author directly.
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