DYNAMIC HR: GLOBAL

APPLICATIONS FROM IBM

SHAD S. MORRIS AND ROBERT CALAMAI

As business leaders increasingly understand the importance of effectively

managing a global workforce, attention turns to the human resource (HR)
function. But as HR groups focus largely on best practices, they lose sight of
the constantly shifting demands of a global environment that requires next
practices. We propose a new Dynamic HR framework that allows HR manag-
ers constantly to renew and reintegrate their practices throughout the organ-
ization in a way that focuses on flexible entrepreneurship and coordinated
networking among dispersed HR managers. Such demands require HR man-
agers who not only are connected with one another across the globe, but
also are one step ahead of shifting local and global demands. Using practical
examples from IBM, we discuss techniques that might help HR become more
dynamic. © 2009 Wiley Periodicals, Inc.

Keywords: strategic human resource management, knowledge manage-

ment, international management, dynamic human resources, reintegra-
tion capabilities, renewal capabilities

Introduction need to understand and adapt to the chang-

ing client demands—and you need to do all
ow often has this scenario played this faster than the competition.

H out in your organization? You start

to bid for an international project
and soon realize that your primary
competitor is better staffed and bet-
ter experienced. It has more resources as well
as vast experience accumulated from other
projects throughout the world. To top things
off, a local favorite firm with strong ties to
the potential client steps onto the scene. It
acts fast and knows well how to navigate the
local business climate. To have a chance of
winning the bid, not only do you need to
capitalize on the knowledge and experience
of the demographically and culturally diverse
members of your operation, but you also
This scenario offers a glimpse of the chal-
lenges facing global organizations today.
Gone are the days when companies could
rely on deliberately planned coordination
mechanisms from headquarters (HQ). Now,
firms must rely on all their people and not
just on headquarters to coordinate and inno-
vate and to do so in a hyperefficient manner.
To achieve this seemingly impossible task,
management’s attention often turns to the
human resource (HR) function. Yet, most
of the time what has worked in the past
does not work in this constantly shifting
global environment. Many will admit, tradi-
tional HR management practices need to be

Correspondence to: Shad S. Morris, Fisher College of Business, The Ohio State University, 718 Fisher Hall, 2100
Neil Avenue, Columbus, OH 43210, Phone: 614-247-1732, Fax: 614-292-7062, E-mail: morris@fisher.osu.edu

Human Resource Management, July–August 2009, Vol. 48, No. 4, Pp. 641– 648
© 2009 Wiley Periodicals, Inc.
Published online in Wiley InterScience (www.interscience.wiley.com).
DOI: 10.1002/hrm.20302
642 HUMAN RESOURCE MANAGEMENT, JULY–AUGUST 2009
rethought (e.g., Lengnick-Hall & Lengnick-
Hall, 2006; Morris, Snell, & Wright, 2006;
Schuler & Tarique, 2007; Sparrow & Brewster,
2006; Stahl & Bjorkman, 2006; Ulrich &
Brockbank, 2005). As exemplified in the sce-
nario, with the cultural and generational dif-
ferences in today’s global workforce, many
organizations are rethinking their use of
hard-edged practices (BusinessWeek, 2007).
In Asia, for instance, 360-degree feedback
programs tend to be less effective than in
their counterpart countries and must be
modified or completely overhauled to be ef-
fective. Further, companies with a strong
country-of-origin culture struggle to bring in
top talent from foreign cultures. In recent
discussions we had with a country manager
for General Electric (GE) in South Korea, we
learned that GE is having a difficult time
competing for talent because many potential
employees see the local companies as having
better management practices—surprising
news for North American employees who see
GE as a top-shelf employer. In brief, HR man-
agers are finding themselves being pulled to-
ward entrepreneurial activities of innovative
management practices to meet shifting client
and talent needs, while they are being pulled
toward networking roles that consist of effi-
ciently coordinating practices to meet global
business demands.
But before we rethink practices, we should
first rethink the role of HR managers them-
selves. How can HR managers more efficiently
adapt to dynamic environments that require
High
Renewal Capabilities
Entrepreneurial
HR
Low
Reintegration Capabilities
FIGURE 1. Dynamic HR Matric
continuous renewal and reintegration of HR
practices? And, what specific techniques can
HR managers use?
Such demands require HR managers who
not only are connected with one another
across the globe, but are also one step ahead
of shifting local and global demands. In the
following, we discuss the practical applica-
tion of two techniques (Entrepreneurial HR
and Networked HR) for continuous renewal
and reintegration of HR practices within a
global environment. Both techniques lead to
what we call Dynamic HR (see Figure 1).
Dynamic HR provides a tension perspective
for HR managers to understand better the
challenges as well as potential solutions to
constantly renewing and reintegrating prac-
tices. To provide understanding of this ten-
sion and a practical application of how to
develop Dynamic HR in your HR function,
we offer a glimpse of what HR is doing at
IBM. We use IBM to show how HR practices
can constantly be renewed and reintegrated
in the global environment, and we offer in-
sight into how they build Dynamic HR
through Entrepreneurial HR as well as Net-
worked HR roles. Finally, we offer an example
of how they develop dynamic HR leaders
among HR staff. And we discuss general ap-
plication for HR managers.
The IBM Legacy
IBM is traditionally known as the world’s
largest provider of technological innovation
Dynamic
HR
Networked
HR
High
Human Resource Management DOI: 10.1002/hrm

for businesses. Headquartered in Armonk,
New York, IBM focuses on meeting global
clients’ constantly changing demands by
providing customers with unique products
and services wherever and whenever they
need them. Client demands may arise due to
geopolitical, industry standard, regulatory,
client preference, or technological shifts;
they often require rapid mobilization of a
flexible, disaggregated workforce. Part of
IBM’s success as a globally integrated enter-
prise can be attributed to the innovative ef-
forts of its people as well as their sense of
community in shared problems and suc-
cesses. Of course, this takes a lot of cross-
border coordination and within-border
flexibility.
But IBM has not always been as coordi-
nated or flexible as it is today. In fact, some
say that in the past it was more controlled
than coordinated, more firm than flexible.
Even still, IBM is striving to offer more own-
ership to its various local units to create more
of the speed and innovation clients expect
today. This has not been easy. But, for CEO
Sam Palmisano, the key has been to stick to
the original principles upon which the com-
pany was founded—respect for the individ-
ual, customer service, and the pursuit of
excellence. Over the years, however, these
values had morphed into entitlement instead
of respect, selfishness instead of customer
focus, and egotism instead of excellence
(Palmisano, Hemp, & Stewart, 2004). With
the loss of these founding principles, a more
centralized, top-down system was required to
make sure everyone was on the same page.
Yet, after a while, IBM learned the hard way
that traditional top-down management pro-
cesses do not work for most 21st-century
companies.
Companies today are competing in a dy-
namic global environment where change is a
way of life (BusinessWeek, 2007). A compa-
ny’s ability to adapt to local and global
changes depends largely on the organiza-
tion’s flexibility and coordination. As stated
by Palmisano, “There’s always going to be
another strategy on the horizon as markets
change, as technologies come and go” (Hemp
& Stewart, 2004, p. 5). The key is the right set
Human Resource Management DOI: 10.1002/hrm
DYNAMIC HR 643
of values or principles to help you navigate
through these changes. It is only through
enduring values of continuous renewal and a
strong entrepreneurial mindset that IBM can
be guided through the many economic cycles
and geopolitical shifts. At the same time,
global integration of these renewed practices
and ideas cannot be left to HQ and formal
top-down structures alone.
One of the largest challenges in this ef-
fort rests on HR managers, whose job is to
coordinate how people are man-
aged so they are allowed to own
It is only through
more of their work—that is, to
make IBM their company. For enduring values of
starters, this meant that the
thousands of HR managers continuous renewal
responsible for the 400,000 em-
and a strong
ployees had to be more entrepre-
neurial in how they tackle the entrepreneurial
changing demands of the global
workforce as well as the global mindset that IBM
client. Managers are often found
making statements such as “Our can be guided
HR managers need to be less through the many
transactive and more strategic …
[they need to] think more and economic cycles
understand the client’s busi-
ness.”1 At the same time, it is and geopolitical
important that IBM’s managers
shifts.
stay networked with one another
in a way that allows them to re-
integrate practices that their peers or HQ
have renewed or modified.
Renewal and Reintegration
Capabilities
IBM has chosen to lead in a high-value, in-
novation space of the industry and to focus
on businesses and institutions of all sizes in
every industry. This strategy required HR to
be flexible and able to renew practices used
to manage people while maintaining unifor-
mity of practices and reintegrating them
once they have been changed. To develop
these capabilities, HR managers needed to be
entrepreneurs and networkers. In essence,
they needed to develop dynamic capabilities
that would allow them constantly to renew
and reintegrate practices (Teece, 2007).
644 HUMAN RESOURCE MANAGEMENT, JULY–AUGUST 2009
Entrepreneurial HR
In responding to customer demands IBM has
always been fast, but it has not always been
flexible. The new strategy has pushed HR to
think differently about how HR managers are
developed to be entrepreneurs. An HR entre-
preneur is not just someone who tries to cre-
ate new practices and initiatives based on a
dream or a slick new idea. Being entrepre-
neurial in HR means analyzing industry
trends for regulatory or standard changes. It
means studying the company’s line of busi-
ness in order to become a strategic partner
able to offer line managers inno-
vative ideas as a consultant rather
Entrepreneurial than simply being an administra-
HR managers tor who is there to take an order
(Ulrich & Brockbank, 2005).
are open to local An entrepreneurial HR man-
ager has the ability to take on
knowledge and to challenges and develop new ways
to address them (Nonaka, 1994).
searching beyond
Though not overreliant on met-
HQ and industry best rics, an entrepreneurial HR man-
ager is able to analyze data to
practices to what show what is and is not a good
investment for the company. For
might be termed
example, when proposing an ini-
next practices with tiative, an entrepreneurial HR
manager will show how that
which they can initiative will develop and de-
ploy a certain number of people,
better respond to
at a certain cost, and will have a
the environment. direct plan for executing it and
measuring its effectiveness.
Ghoshal and Bartlett (1988)
noted that renewed products, practices, or
systems are often generated using specific
knowledge found locally in order to respond
to the environment. Entrepreneurial HR
managers are open to local knowledge and
to searching beyond HQ and industry best
practices to what might be termed next
practices with which they can better re-
spond to the environment.
Traditionally, most of the next practices
at IBM came from the top at HQ. Even today,
many decisions are centrally made, yet IBM
has also realized the importance of practicing
renewal and reintegration in order to reach
the customer better. This change has largely
been facilitated in HR by learning programs
geared to developing more entrepreneurial
thinking among HR leaders in the various
field locations. Such development initiatives
help to foster Entrepreneurial HR within the
HR function.
In Asia, for instance, one geographical HR
leader noted that management development
in China will need to be quite different from
the programs used in the United States. She
stated, “We have really had to operate in a
really different mode than in a mature envi-
ronment like in the U.S.” For example, in
India, line managers’ average experience level
is significantly less than in more mature mar-
kets such as the United Kingdom or the
United States. As a result, HR deployed addi-
tional resources with expertise in leadership
development to raise that leadership team’s
management capabilities. Such examples
show the importance of entrepreneurial skills
among HR members that will allow them to
develop and deploy unique practices and
ideas to solve unique problems.
Networked HR
To respond to the environment efficiently,
HR managers must not only renew existing
HR practices, but also be able to integrate
new practices from others or reintegrate old
practices once they have been changed.
This requires global networking abilities. An
HR networker is not necessarily someone
who interacts with many other HR manag-
ers. In fact, an HR networker does not have
to be well connected. We define an HR net-
worker as one who is open to and proactive
at working across boundaries to apply prac-
tices and ideas from latent information in
the firm and in people’s minds to existing
job tasks. In essence, it is not just the use of
information but the reuse of information
that allows the HR networker to leverage
existing practices within the firm toward
other productive means—thereby incurring
economies of scope.
While Entrepreneurial HR is vital for
local adaptability, HR managers’ primary
objective in most global operations is to
Human Resource Management DOI: 10.1002/hrm

integrate practices that have been created
elsewhere in the firm and apply them in
familiar or unfamiliar situations (Morris,
Snell, & Wright, 2006). Such demands re-
quire an agile HR group that is not bogged
down with administrative support. Hence,
Managed Business Process Services, another
IBM business unit, handles a majority of
IBM’s administrative HR work. This business
unit provides outsourced HR support to IBM
customers and to its internal HR function.
The company handles the more strategic
work, which thus allows the HR manager
more flexibility looking to others for ideas
rather than simply making sure they are in
compliance with HQ. This is especially
helpful because client demands often re-
quire components of talent that one partic-
ular unit or division may not possess.
For example, operations in an emerging
market may experience greater growth than
in more established locations. This growth
can be daunting to HR as it tries to figure
out how to staff such units in a very limited
time frame. Often we would see these HR
managers turning to other HR managers in
recently developed regions to figure out ef-
fective strategies for such staffing demands.
As HR managers learn to navigate this sea of
valuable experience better, they can make a
stronger contribution to their local units
and make sure that best or next practices are
rapidly disseminated across the organiza-
tion. This means that while some aspects of
HR practices should be centrally designed,
certain locally developed aspects can prove
more useful to HR managers in various re-
gions of the firm who are experiencing
similar issues.
Of course, one benefit IBM has found
from being more network oriented is the
amount of information on HR practices that
is shared and integrated across borders. For
example, one HR manager reported that her
HR community was very well linked and that
it was important to develop these networks
in order to meet global shifts in demand
where many of their clients are operating in
multiple countries and need consistency in
the services IBM provides across borders.
Much of this sharing can be attributed to the
Human Resource Management DOI: 10.1002/hrm
DYNAMIC HR 645
principles of being company and customer
oriented while operating in an environment
where there are a small number of central-
ized policies and programs. In fact, as this
article goes to press, IBM HR is embarking on
a significant realignment of its global HR
organization; one of the major design points
is the appointment of key HR leaders with
both business unit generalist responsibility
as well as a global functional role, such as
recruiting or learning. Developing such HR
networkers helps the organization to develop
a shared vision that then carries over to the
client as seeing one IBM that offers excellent
and consistent services throughout the
world.
Developing Dynamic HR
Of course, there are still tensions between
integrating HR practices while allowing
them to be flexible to different country
needs. Often, managers are better at being
either networkers or entrepreneurs; they
seldom have both skills that allow them to
be dynamic company leaders. The key to
managing this tension, as we see it, is to
focus on identifying, developing, and re-
taining HR managers with capabilities not
only to trade off one from the other but to
focus on building both. Among some of
their most effective programs, IBM uses
two specific initiatives to help develop
both networking and entrepreneurial capa-
bilities among HR managers: (1) Skill Gap
Development and (2) Executive HR Devel-
opment.
Skill Gap Development
One of the most effective ways that HR at IBM
is dealing with this issue of understanding and
capitalizing on differences across markets in-
cludes identifying skill gaps of HR leaders in
the field. Identifying such gaps comes through
the customer. Informal as well as formal feed-
back mechanisms are used to gather data from
line managers as well as external clients on
how work was done and their level of satisfac-
tion with the HR services. It is important then
to develop ways to fill those gaps. For example,
646 HUMAN RESOURCE MANAGEMENT, JULY–AUGUST 2009
a previous client response said that HR needed
to be more proactive in helping the client
identify and solve workforce issues. The HR
group acted on this feedback and developed an
integrated learning program for HR profession-
als to help them strengthen their client-build-
ing and influencing skills. One key learning
module is a two-day classroom course called
Managing Client Relationships. The learning
objective of this course is to teach HR profes-
sionals to be more consultative in their interac-
tions with line managers.
To assess HR professionals’ skills, IBM HR
uses the same methodology as the rest of the
enterprise. IBM has created an integrated ap-
proach for anticipating, building, and de-
ploying its workforce skills and
expertise. This Workforce Man-
Different
agement Initiative began with a
geographies and worldwide assessment of the
global workforce population’s
sometimes different skills, including the HR team’s
skills. HR employees are assessed
business units
by job roles and then by specific
require different skill sets within those job roles. As
skill gaps are identified, they are
levels of HR addressed via one-on-one devel-
opment discussions between man-
expertise.
agers and employees. In addition,
the HR leadership can view skill
gaps within geographies or by functional
skill area and then deploy learning resources
to begin filling the gaps.
Another issue that HR faces is that differ-
ent geographies and sometimes different
business units require different levels of HR
expertise. For example, about half of IBM’s
HR professionals work in the United States;
in some cases, they tend to support a smaller
scope of customers than HR professionals
outside the United States, who may support a
more diversified customer base. This means
that HR leaders need to be able to adapt to
local needs and demands, which requires a
strong entrepreneurial focus. As one geo-
graphical HR leader put it, “We do not sit idly
at the mountain and wait for the Ten Com-
mandments to come down from Armonk. We
apply the principles [that are found through-
out IBM] and have leeway in running the
show.…”
In speaking with global HR leaders, this
becomes a difficult issue because IBM is so
used to its HR policies and procedures being
standardized. As one HR manager stated,
“Now that managers have more flexibility,
they don’t want it because they have to jus-
tify their decisions.” Yet, an impinging need
for innovation means that HR leaders in dif-
ferent environments must be entrepreneurial
in adapting and developing new practices
and processes that meet local needs and pos-
sibly in helping other parts of the organiza-
tion through networking.
HR Executive Development
In addressing executive development, Randy
MacDonald, IBM’s senior vice president of
HR, said, “Developing individuals to lead
IBM now and for the future is one of our
most important corporate responsibilities.
IBM’s top spot in this first-of-a-kind ranking
confirms our commitment to give all of our
employees the opportunity to develop and
contribute at the highest level possible.”
The leadership development program
began in 1995, when IBM conducted a com-
prehensive research effort to identify the
characteristics that distinguish outstanding
business leaders inside the company. As a re-
sult, 11 leadership competencies unique to
IBM were identified along with the behaviors
that demonstrate the competencies for all
levels of management, including senior ex-
ecutives.
Potential leaders and all current execu-
tives in IBM are assessed annually against
these 11 competencies on the premise that
real development occurs on the job through
experience. According to IBM’s former vice
president of talent, Donna Riley, “It’s not
about creating lists of people who can do
something someday. It’s about finding very
talented people, letting them know that we
found them and value them, and then
providing them with mentoring and the
rich and varied experiences to move them
towards a higher level of responsibilities.”
Within the HR function, this program is
especially important in developing dynamic
leaders who are networked and entrepre-
Human Resource Management DOI: 10.1002/hrm

neurial. This is how they do it. First, the
most senior HR leaders identify employees
with executive potential. These employees
are then assessed using IBM’s leadership
competency model. Then, a development
plan is assigned that focuses on growing
those competencies and mapping out key
developmental assignments with the goal of
growing true global leaders with functional
and generalist experiences. To assist with
this development, mentors are assigned and
progress is reviewed on an annual basis.
But IBM does not rely on its annual as-
sessments alone to find potential leaders.
For example, IBM recently told the 300
members of its Integration and Values Team
(IVT), “Reach down and find someone way
low in your organization, someone fewer
than 10 years out of college, who could do
your job someday”. Executives were amazed
at the results—a list of 294 people in the
organization who might ordinarily have
never been found. They became part of
IBM’s assessment programs and will start
mapping their job progress. They are keep-
ing career diaries and working with their
SLG sponsor, who is their career coach as
well as their direct manager, not only to
perform in their current job but also to be-
come an asset for IBM as they move on and
develop higher levels of responsibility.
These initiatives allow for a greater un-
derstanding of how a company might bet-
ter address tensions in developing dynamic
HR leaders with strengths in HR entrepre-
neurship and networking. As HR units are
able to manage this paradoxical role of re-
newing and inventing practices at the local
level while sharing and reintegrating prac-
tices from other subunits, companies will
be able to balance the need for practices
that meet changing global demands.
Conclusion
As we try to uncover what it takes to become a
dynamic HR manager, it is important to note
that firms must shift from a focus on best prac-
tices to a focus on next practices. This means
developing the techniques that allow them to
renew and reintegrate HR practices across the
Human Resource Management DOI: 10.1002/hrm
DYNAMIC HR 647
globe more efficiently and effectively to ensure
competitive advantage. By peering into what is
being done at IBM, we have offered a small
glimpse of what it means to exhibit dynamic
HR behaviors in today’s global market and
where we should be looking in terms of HR
research for the future.
In today’s global economy, renewal and
reintegration of HR practices are necessary
to remain competitive. We have offered
some practical approaches to developing
these dynamic capabilities among
HR managers by discussing the Firms must shift
techniques of Entrepreneurial HR
and Networked HR. We showed from a focus on
development of these techniques
best practices to
using the example of IBM’s HR
function and how it develops a focus on next
dynamic HR leaders in a globally
changing environment. These practices. This
techniques can originate from
sources designed to identify, de- means developing
velop, and retain dynamic HR the techniques that
leaders and are essential for en-
hancing HR’s ability to compete. allow them to renew
We have argued that managing
HR in a more flexible and inte- and reintegrate
grated manner is instrumental HR practices
for learning in the firm. By draw-
ing logical connections that link across the globe
renewal and reintegration capa-
bilities, dynamic behaviors, and more efficiently
practical interventions for HR
and effectively to
within IBM, we have contributed
to developing a framework that ensure competitive
tries to understand how HR
might exhibit dynamic behaviors advantage.
in a global environment.
Note
1. During the time of this study, the second author was in
charge of development and resources for the HR Orga-
nization of IBM. To gain a better understanding and
perspective of the global HR environment at IBM,
semi-structured, in-depth interviews were conducted
with the regional IBM HR managers. Interviews lasted
from 30 minutes to 2 hours and were conducted by the
first author, John Haggerty, and Shon Hiatt.To decrease
likelihood of bias, the interviewees were assured com-
plete confidentiality and that only their comments in
aggregate would be presented to the company.
648 HUMAN RESOURCE MANAGEMENT, JULY–AUGUST 2009

SHAD S. MORRIS, Ph.D., Cornell University, is an assistant professor in the Department of

Management and Human Resources at the Fisher College of Business, The Ohio State
University. Morris teaches and conducts research in international business and strategic
human resource management, particularly focusing on how global firms create value
through people and knowledge. He has consulted and worked for organizations such
as the World Bank, Management Systems International, Alcoa, Samsung, and SK Corpora-
tion. He is the cofounder and former managing editor of the Journal of Microfinance and
has coauthored the text Managing People and Knowledge in Professional Service Firms.

ROBERT CALAMAI is the Director of Human Resources for the Information Management
organization of IBM. He joined IBM in 1975 and has worked in several functional HR areas
and multiple business units. In his previous position, he was responsible for the develop-
ment of IBM’s worldwide Human Resource Organization, which included hiring, training,
leadership development, and succession planning for more than 3,000 HR professionals.
He is currently an adjunct professor in the graduate and undergraduate management
programs at Pace University and teaches courses in management and HR management.
He is a frequent speaker at universities and professional organizations on topics includ-
ing career planning, leadership development, and other talent-related subjects.

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Human Resource Management DOI: 10.1002/hrm