Abstract
The early 1990s were difficult years for IBM. With revenues down and expenses up, the company was losing money for the first time in its history. To again be profitable, IBM decided it needed to change, and this article takes readers on IBM's journey to reengineer its HR services. The journey started with the concept of a national benefits center that used technology and a central support system to improve benefits administration efficiency and consistency. This led to an organizational model that includes self-service tools and a centralized service center, to provide IBM's thousands of active and retired employees with their compensation, benefits, and a range of HR support services. The model has reduced IBM's expenses and improved its program administration. The authors detail this transformation, and also share the lessons IBM learned along the way.
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