Monday, 7 April 2014

Uncle Sam weighs in

"In 2012 he formed a think tank called the Center for the Global Enterprise and just came out with an e-book called Re-Think: A Path To The Future. The book argues that multinational firms in a rapidly integrating world need to remake themselves into what he calls globally integrated enterprises (like he did with IBM). So-called GIEs are different than mere multinationals in structure and operating approach. Legal could be in Amsterdam, research in China and California, HR and accounting in New York. Talent goes where it’s needed. Work flows to where the customers are, not where the headquarters is. Country managers don’t get to act like royalty of their own realm. Collaboration is digital and frequent. Palmisano says that IBM saw a total productivity gain of $6 billion from 2006 to 2010 by doing things like globalizing support services and the supply chain (fewer and bigger factories), freeing up local managers to focus on sales and relationships. IBM outgrew growth markets such as China and India at twice the rate of the tech industry."

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