IBM

Some very talented people. In hardware development, the employee culture is excellent, friendly, and helpful.

The executive strategy hits hard on two fronts: reducing US headcount and focusing on EPS.

US hiring has been frozen for years. In our area, we have few people younger than 40.

In a highly technical area, you need to keep the pipeline of people coming in, which is not happening. Overseas hires have generally not worked out well, but management cannot change the executive direction.

Focusing on EPS at the expense of revenue means that when financial targets are missed, cost cutting is the way to make the EPS targets. We have no discretionary budgets or travel anymore, so layoffs are the only cost-cutting method left.

So they are doing layoffs even from areas they say are critical and strategic to IBM's future. And of course, layoffs are mostly limited to the US workforce.

And the stack employee evaluation system (PBC) is not helping anything, but of course, that is the executive goal.

I can't tell them anything they don't know. At this point, they are clearly doing what they intend to do. What they should do if they want to turn around IBM:

• Oust Rometti unless she does something good for IBM.
• Start hiring in the US again.
• Restore power to local 1st and 2nd line management.
• Get rid of the PBC system and use a system that evaluates group performance and allows group self-evaluation.
• Make revenue growth targets versus EPS.
• Restore a meaningful benefits program.
• Stop making HR/compensation changes which quite obviously hurt employees.
• Stop secretive layoffs and HR data.
• Focus on quality products and services.
• Restore awards for employee achievements.