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OB IN ACTION CASE IBM's and Procter & Gamble's Different Approaches to Leadership Development To "wo companies that have reputations for developing their leaders are IBM and Procter & Gamble IBM has been doing very innovative work in leadership development. The company uses its nonprofit work as a training ground for managers to gain leadership experi ence and develop their skills. For example, IBM managers work on projects in places such as Romania, Turkey, Viet. nam, the Philippines, Ghana, and Tanzania, IBM sends em- ployees to lead projects in these countries through its Corporate Service Corps. "As a development tool, this is a Elaine Thompson/AP Images four for one." said Allan R. Cohen, dean of the Olin Grad- uate School at Babson College, near Boston. "It's stretch appreciated on a daily basis my colleagues' contributions ing to work in another culture, to work in a nonprofit to whatever success we were able to achieve together." where the measurement of accomplishment isn't clear, to take a sabbatical from your everyday routine and to learn DISCUSSION QUESTIONS to accomplish things when you can't just bark orders." At Procter & Gamble, informal on-the-job training is 1. How does the IBM model help build leaders? Are used to develop employees, especially junior associates. there similarities to leadership development as dis. People are involved in strategy discussions and receive a cussed in the chapter? great deal of practice in management by doing. This gives 2. IBM sends people "outside," whereas Procter & Gam. them more opportunities to receive feedback from senior ble focuses its efforts "inside the company. What are people and to better develop their skills. In his book Play. some pros and cons of each approach? ing to Win, A. G. Lafley explains how he benefited from 3. Do you see either of these approaches as being bet- this type of on-the-job leadership training while at Procter ter than the other when it comes to building transfor- & Gamble: "My years at P&G afforded me ample opportu- mational leadership behaviors? Why or why not? nity to learn about business strategy and practice busi- ness leadership and management by doing. There, with Sources: Deutsch. C. (March 26, 2008). Volunteering abroad to climb at clear accountability for strategy, operations, and results. Playing to win. Brighton, MA. Harvard Business Press. IBM. The New York Times, p. C4: Lafley, A. G. and Martin, R. L. (2013). learned from my mistakes, lived with my failures, and