IBM Talent Deployment Mobility IBM Our workforce at

IBM Talent Deployment & Mobility

IBM Our workforce at a glance § World’s largest Information Technology Company § $103. 6 B Revenue, $16. 7 B Income § Close to 500, 000 full time regular employees; close to 100, 000 contractors: § 5, 500 Executives, § 40, 000 Managers § Operations in 170 countries, divided into 5 Operating Teams and/or markets: § North America § Japan § North East Europe § South West Europe § Growth Markets § Key Business Segments: ü Global Technology Services ü Global Business Services ü Systems and Technology Group ü Software Group 2 A highly diverse workforce: • 50% workforce has less than 5 years of service • 62% workforce is in our Services business • 40% of employees work remotely – not from a traditional IBM office • 15% of population comes from acquisitions & outsourcing deals

IBM Enabling the Global IBMer IBM’s Global Mobility Framework is designed to enable: § Rapid response to client needs anywhere in the world § Increasing the number of short-term, developmental assignments to enable global capability of the workforce § Support IBM’s globally-integrated enterprise strategy § Leadership deployment and skills transfer into Growth Markets “The Right People in the Right Place at the Right Time” 3

IBM Global Mobility’s Spectrum of Value • Global Talent Alignment with Policies • Global Talent Pool Identification and Tracking • Global Compensation/Rewards • Post-Assignment Retention Strategies Program Maturity • Core Policies Aligned to Business Needs • • Advanced Business Advisory Services Core Policies Aligned to Business Needs • Advanced Business Advisory Services • Tailored Policies / Packages for Mass Relocations • • • Service Delivery Model • Technology Enablers • • • Global Tax Preparation • • • Global Tax Preparation • Immigration Compliance Service Delivery Model Streamlined Processes Defined Roles Vendor Services Management Technology Enablers • Immigration Compliance • Data Security • Core Service Provision • Population Awareness 4 Compliance Operational Stabilization/Excellence Risk and Liability Containment Core Service Efficiency and Effectiveness Alignment with Business Needs Meeting Business Objectives and Needs Integration with Talent Strategies Global Talent Management

IBM IBM’s New Global Mobility Framework Capability Building Development Value Global Experience § Ensure all employees traveling internationally are in compliance from a tax and immigration perspective (Compliance Services Plan). § Provide a low-cost option for employees to co -invest in an assignment experience through localization (Temporary Localization Program). § Also covers business travelers that need immigration support only. Supply-Driven § Build new capability in growth markets, encourage common methods and tools. § Enhance global networks & develop future leaders. § Limit duration to allow more people this Cost opportunity. § Future steps: Implement specific developmental assignment programs that managers can tap into Demand-Driven Strategic Business Opportunity § Fill critical business needs and/or accomplish transfer of essential knowledge. § Reserved for higher level employees and most critical roles. § Partnering with Succession Planning function as the primary user of this plan. § Included cultural intelligence/language immersion training. Client Skill Need § Ability to move skilled people to fill a client need for a short or medium duration. § “Client” could be internal or external and focuses on skill gap. Cost § Three levels of provisions within this quadrant based on employee level/duration. Prereq § Greatest range of provision levels and duration. Business Value 5

IBM Integrated Leadership Development in IBM An integrated program for identifying, assessing, developing and placing 60, 000 high performing, high potential leaders - - at all levels, across all businesses. PLANNING § Define all roles across IBM (250, down from over 600, through discipline) § Create “Success Profiles” for all leadership roles § Define demand for leadership roles by BU and market (through the business plans) § Identify critical gap roles (requiring accelerated development and recruitment) Pipeline Identification and Development § Regularly evaluate leadership competencies of those currently in leadership roles § Assess leadership potential and functional skills of IBMers globally, with verification § Provide guidance on potential career paths and personalized development plans for each IBMer, tracking progress through the IBM management system § Provide innovative and extensive experiences and developmental opportunities Placement § For each leadership role, define benches of potential candidates, ensuring diversity § For each opening, specify a slate of candidates, with diversity and high potential § Disciplined process for placement decisions, through 5 Minute Drills § Conduct annual leadership review s at all levels of the business. This company-wide process moves upward to high visibility “Chairman’s Reviews” with action follow-ups 6