In 1999, IBM launched the pilot Basic Blue management training program, which was fully deployed in 2000. Basic Blue was an in-house management training program for new managers. It imparted 75 percent of the training online and the remaining 25 percent through the traditional classroom mode. The e-learning part included articles, simulations, job aids and short courses. The founding principle of Basic Blue was that ‘learning is an extended process, not a one-time event.’ Basic Blue was based on a ‘4-Tier blended learning model’. The first three tiers were delivered online and the fourth tier included one-week long traditional classroom training. The program offered basic skills and knowledge to managers so that they can become effective leaders and people-oriented managers. The managers were divided into groups of 24 members each. Each group then entered the first tier of the Basic Blue program (without interaction with the other members of the group – learning from information). The content for the first tier was delivered through IBM’s Intranet. The first tier trained them on the fundamental skills required to be an IBM manager and offered ‘just-in-time’ performance support. In this tier, the managers were provided access to a lot of information including a database of questions, answers and sample scenarios called Manager QuickViews. This information addressed the issues like evaluation, retention, conflict resolution etc., which managers came across. A manager who faced a problem could either access the relevant topic directly, or find the relevant information using a search engine. He/she had direct access to materials on the computer’s desktop for online reading. The material also highlighted other important web sites to be browsed for further information. IBM believed that its managers should be aware of practices and policies followed in different countries. Hence, the groups were formed virtually by videoconferencing with team members from all over the world. In the second tier, the managers were provided with simulated situations. Senior managers trained the managers online. The simulations enabled the managers to learn about employee skill-building, compensation and benefits, multicultural issues, work/life balance issues and business conduct in an interactive manner. Some of the content for this tier was offered by Harvard Business School and the simulations were created by Cognitive Arts of Chicago. The online Coaching Simulator offered eight scenarios with 5000 scenes of action, decision points and branching results. IBM Management Development’s web site, Going Global offered as many as 300 interactive scenarios on culture clashes. In the third tier, the members of the group started interacting with each other online. This tier used IBM’s collaboration tools such as chats, and team rooms including IBM e-learning products like the TeamRoom, CustomerRoom and Lotus Learning Space. Using these tools, employees could interact online with the instructors as well as with peers in their groups. This tier also used virtual team exercises and included advanced technologies like application sharing, live virtual classrooms and interactive presentations on the web. In this tier, the members of the group had to solve problems as a team by forming virtual groups, using these products. Hence, this tier focused more on developing the collaborative skills of the learners. Though training through e-learning was very successful, IBM believed that classroom training was also essential to develop people skills. Therefore, the fourth tier comprised a classroom training program known as ‘Learning Lab.’ By the time the managers reached this tier, they all reached a similar level of knowledge by mastering the content in the first three tiers. Managers had to pass an online test on the content provided in the above three tiers, before entering the fourth tier. In the fourth tier, the managers had to master the information acquired in the above three tiers and develop a deeper understanding and a broader skills set. There were no lectures in these sessions, and the managers had to learn by doing and by coordinating directly with others in the classroom. The tremendous success of the Basic Blue initiative encouraged IBM to extend training through e-learning to its sales personnel and experienced managers as well. The e-learning program for the sales personnel was known as ‘Sales Compass,’ and the one for the experienced managers, as ‘Managing@ IBM.’ By implementing these programs, IBM was able to reduce its training budget as well as improve employee productivity significantly. In 2000, Basic Blue saved $16 million while Sales Compass saved $21 million. In 2001, IBM saved $200 million and its cost of training per-employee reduced significantly – from $400 to $135. E-learning also resulted in a deeper understanding of the learning content by the managers. It also enabled the managers to complete their classroom training modules in lesser time, as compared to the traditional training methods used earlier. The simulation modules and collaboration techniques created a richer learning environment. The e-learning projects also enabled the company to leverage corporate internal knowledge as most of the content they carried came from the internal content experts.

1. IBM implemented different e-learning programs for its new managers, based on their requirements. Explain in detail how IBM implemented Basic Blue e- learning programs to train managers. 2. IBM claimed to have saved millions of dollars by adopting online training methods. What, according to you are the benefits of training employees through e-learning? How do employers gain from it? Explain.