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diversity as strategy
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IBM expanded minority markets dramatically by promoting diversity in its own workforce. The result: a virtuous circle of growth and progress. Diversity as Strategy by David A. Thomas

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IBM expanded minority markets dramatically by promoting diversity in its own workforce. The result: a virtuous circle of growth and progress. Diversity as Strategy

COPYRIGHT © 2004 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.

by David A. Thomas

When most of us think of Lou Gerstner and the turnaround of IBM, we see a great business story. A less-told but integral part of that success is a people story—one that has dramatically altered the composition of an already diverse corporation and created millions of dollars in new business.
By the time Gerstner took the helm in 1993,
IBM already had a long history of progressive management when it came to civil rights and equal employment. Indeed, few of the company’s executives would have identified workforce diversity as an area of strategic focus. But when Gerstner took a look at his senior executive team, he felt it didn’t reflect the diversity of the market for talent or IBM’s customers and employees. To rectify the imbalance, in
1995 Gerstner launched a diversity task-force initiative that became a cornerstone of IBM’s
HR strategy. The effort continued through
Gerstner’s tenure and remains today under current CEO Sam Palmisano. Rather than attempt to eliminate discrimination by deliberately ignoring differences among employees,

harvard business review • september 2004

IBM created eight task forces, each focused on a different group such as Asians, gays and lesbians, and women. The goal of the initiative was to uncover and understand differences among the groups and find ways to appeal to a broader set of employees and customers.
The initiative required a lot of work, and it didn’t happen overnight—the first task force
convened

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