Peter E. Greulich's Blog for Short Thoughts, Insights and Witticisms

Challenging Forbes' 2020 World's Best Employers

11/23/2020

No, I do not have the data with which to offer a knowledgeable opinion if Samsung Electronics or Amazon deserve the #1 and #2 spots, respectively, on Forbes’ 2020 Best Employers list. I do have enough data and experience, though, to have serious doubts if IBM deserves to be recognized as the world’s third-best employer.

Image of top three companies in Forbes'

Thankfully, we live in a democracy supported by an economic system that encourages the free flow of information and divergent opinions. After reading this article—whether you agree or disagree—your thoughts are appreciated and will be respected.

Let’s start with one of my favorite sayings from B. C. Forbes, the founder of Forbes.

“With All Thy Getting, Get Understanding.”

B. C. Forbes, Forbes, “Fact and Comment” editorial tagline

Forbes went out "getting" information, but did they "get understanding?"

Peter E. Greulich

Select this button or the image to read the full article

Judge Elbert H. Gary on "Listening" to the Stock Market

11/21/2020

"Gentlemen, we do not manage our corporation for the stock market. . . .

"If I were a speculator on the Stock Exchange, buying today in the hope of selling tomorrow, . . . I might be glad to have the management of a corporation take some action in . . . declaring dividends . . . which temporarily advanced the prices of securities. . . .

"[Then] leaving management to shoulder the trouble—if it came afterwards … [and] the action proved to have been improvident."

IBM has spent $201 billion since 1995 on share buybacks (repurchases). I wonder if Arvind Krishna and James M. Whitehurst wish they had some of those dollars spent by their three predecessors on paper to now invest in people, processes and products

Peter E. Greulich

Select this button to read a review of judge Elbert H. Gary: Story of Steel

Are IBMers Buying What IBM Is Selling?

11/11/2020

"The only way to know if you have truly touched a man’s heart is when he reaches into his back pocket for his wallet."

An old televangelist witticism

Sometimes research produces one chart that seems to say it all.

The following chart is graphic research from THINK Again!: IBM CAN Maximize Shareholder Value – The Rometty Edition.

Consider this employee trend when deciding where to deposit your next investment of time, loyalty and money as one of IBM’s future customers, shareholders, employees or supportive societies.

Select the button below to read the article and see the one graphic that says it all. ... One of IBM's major stakeholders—its employees—are no longer vested, or investing, in their corporation.

Select this button to Read if "IBMers are buying what IBM is selling"

Virginia M. (Ginni) Rometty: KPI #8

11/9/2020

Revenue and Profit Performance Deteriorated

How much have revenue and profit fallen in the last eight years?

Why did the divestiture of the x86-Server Division impact corporate sales and profitability?

Virginia M. (Ginni) Rometty KPI #8

Virginia M. (Ginni) Rometty: KPI #7

11/8/2020

Revenue and Profit Growth Were in the Ditch

Was IBM in transition or decline?

How many times did IBM have positive revenue and profit growth in the last eight years?

Historically, was its performance better or worse?

Virginia M. (Ginni) Rometty KPI #7

Virginia M. (Ginni) Rometty: KPI #6

11/7/2020

Revenue and Profit Productivity Were a Disaster

How much did productivity fall?

What revenue and profit numbers could IBM have achieved in 2019 if it had kept its 2011 employee productivity in line with inflation?

virginia M. (Ginni) ROmetty KPI #6

Virginia M. (Ginni) Rometty: KPI #5

11/6/2020

The New Demand-Side Strategy Worked — At a Price

How did the Red Hat acquisition affect market value?

What is the cornerstone of this acquisition’s success? Does the acquisition play to IBM’s strengths?

Virginia M. (Ginni) Rometty KPI #5

Virginia M. (Ginni) Rometty: KPI #4

11/5/2020

The Dividend Strategy Proved Pointless

How much money did Rometty spend on dividends?

Did raising dividends every year compensate for the market’s lack of confidence in her leadership and short-term strategies?

Virginia M. (GInni) Rometty KPI #4

Virginia M. (Ginni) Rometty: KPI #3

11/4/2020

The Supply-Side Market Strategy Failed

How much money did IBM spend on share buybacks?

From the perspective of market value and share price, was this money well spent?

Virginia M. (Ginni) Rometty KPI #3

Virginia M. (Ginni) Rometty: KPI #2

11/3/2020

Maximized Shareholder Risk

Does IBM have the depth of assets to survive another financial emergency like the Crisis of 1992–93?

What has been a major side effect of the corporation’s focus on growth through acquisitions instead of internal research and development?

Virginia M. (Ginni) Rometty KPI #2

Virginia M. (Ginni) Rometty: KPI #1

11/2/2020

Minimized Shareholder Value

Image of Virginia M. (Ginni) Rometty's KPI #1:

Questions answered by Virginia M. (Ginni) Rometty's key performance indicator #1:

What were Ginni Rometty's shareholder returns?
How did these returns compare with a similar investment in some commonly held, lower-risk index funds?

Virginia M. (Ginni) Rometty KPI #1

Peter E. Greulich

Pete 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 he has read with links to articles and book reviews on this website.

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