IBM: 'Make It Your Business' (A)

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Case

Reference no. 9-190-137

Subject category: Finance, Accounting and Control

Authors: Robert L Simons (Harvard Business School); Howard Weston (Leeds University Business School)

Published by: Harvard Business Publishing

Originally published in: 1990

Version: 17 June 1991

Length: 14 pages

Data source: Field research

Topics: Control systems; Information technology; Goal setting; Goals; Planning systems; Strategic planning; Motivation; Sales; Implementing strategy; Incentives

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Abstract

In 1987, IBM changed its strategy in an attempt to become a market- driven company rather than a product-driven company. The case begins with a description of the new strategy and the reasons for the change and then describes the top-down sales planning and quota system in use under the old strategy. Concludes with a discussion of the reasons why the new strategy cannot be implemented without changing the sales planning and quota systems. The challenge for students is to design new systems to support IBM''s market-driven strategy.

Location:

United States

Industry:

Computer Technology

Size:

USD60 billion revenues

Other setting(s):

1989