By Robert X. Cringely – The direct impetus for this column is IBM’s internal plan to grow earnings-per-share (EPS) to $20 by 2015. The primary method for accomplishing this feat, according to the plan, will be by reducing US employee head count by 78 percent in that time frame.
This is the first thing to understand about the IBM of today: the company is being run by executives who for the most part don’t understand the products and services they sell.
IBM’s five year plan ending in 2010 was supposed to double EPS from just under $5 to about $11. (Today it is closer to $13.) During the last five years there was an accelerated push of jobs offshore for cost reasons, high attrition rates, and longer product release cycles. The next five year plan for 2015 is to again double EPS to about $20. Can this be done? Probably, but the particular way they are going about it is also likely to destroy IBM. more> http://is.gd/Eja23m
- IBM PureSystems, StrategyGroup
- The Dumbest Idea In The World: Maximizing Shareholder Value
- The hard lessons of Boeing’s 787 outsourcing
- In Praise Of Stretch Goals
- Cringely Predicts IBM Will Shed 78% of US Employees By 2015 (news.slashdot.org)
- The Cost of Style Over Substance (soberbuildengineer.com)
- IBM hikes dividend, increases stock buyback plan by US$7-billion (business.financialpost.com)
- IBM’s First Quarter: Where’s The Growth? (informationweek.com)
- IBM Boosts Share Buybacks And Dividend, Timothy Prickett Morgan, IT Jungle
- What IBM wrought at RTP: the supermarket scanner, Peter V. Andrews, NewsObserver.com