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IBM: NYC and NJ

Suggestions at IBM – 1957

 

The first task I was given when I joined IBM in 1957 was a drawer-full of employee suggestions waiting to be investigated. It turned out to be a great orientation for me as they provided entrée to a variety of managers and directors at the Headquarters of the Electric Typewriter Division, such as Sales Engineering, Advertising, Communications and Product Marketing.

 

Later in my career I had the management responsibility for the second largest Suggestion Department in IBM, located in Lexington, Kentucky, which processed thousands of suggestions yearly and paid hundreds of thousands of dollars for adopted ideas. I learned about the difficulties of remote management through my monthly visits to Lexington from New Jersey. There were about 60 employees organized under several first-line managers and one second-line manager, all requiring a great deal of “people management” so heavily emphasized by IBM in those days. Employees there were not like those in the New York City area. Many were part-time tobacco “non-farmers” – that is, paid by the federal government to NOT grow tobacco. This was not out of health concerns; it was the government’s way of propping up prices for the real tobacco farmers by controlling the supply.

 

Employee suggestion programs have a long history in the U.S. The oldest documented system is Eastman Kodak’s, which was started in 1898. IBM’s plan was announced in 1928 by the company’s founder, Thomas J. Watson, Sr. The suggestion program at United Airlines was so successful it was discontinued. An airline employee suggested cutting power to most engines of plans when taxiing, thus saving fuel costs. The plan’s wording wasn’t precise about maximum award so the company faced court challenges and the prospect of paying a very large award. Ultimately, they canceled the program.

 

Some IBM employees were very prolific submitters of suggestions, often with ideas that were suitable, but not really worthwhile. For example: suggesting ‘items’ be arranged horizontally instead of vertically (or vice versa), or proposing changes that would usually be handled by routine maintenance. Managers investigating such ideas would frequently say the suggestion would be adopted, recommend the minimum award ($25) and then not bother to make the change. They thought it was an effective way to stop reinvestigation requests and avoid nit-picking challenges. Other employees used suggestion forms for anonymous gripes, such as, “My manager [specifying name and department] is incompetent and should be fired.”

 

In the last decade of the 20th century, the ‘new’ IBM solved all problems in connection with this program by quietly dropping the Suggestion Plan – I understand it was replaced by an “online employee collaboration tool” called ThinkPlace.

 

September 2009

 

 

Crossing the Great Divide – 1958

 

One of the first jobs I had in the late 1950s, at IBM’s corporate employee benefit department, was to telephone other major companies to survey their personnel practices. The “top ten” list, later expanded to fifteen, included AT&T, General Electric, General Motors, and U.S. Steel. Also on the list were now moribund or defunct companies such as Union Carbide, RCA, Westinghouse and Eastman Kodak. In those days, IBM was only a “wannabe” in the field of corporate entities.

 

On one call, after giving my name, and pronouncing it (Bee-an-CHERRY), I was asked to spell it. The voice at the other end said, “That’s pronounced Bee-an-KERRY, isn’t it?” I acknowledged the Italian pronunciation of the family name, even though my parents did not use it. He then asked in a cool, patrician tone, “What are you trying to do, slip across?”

 

I don’t recall my stumbling reply, but I clearly remember the name of the interrogator: JOHN PAUL JONES. My answer should have been along the lines of FDR addressing the DAR members as “Fellow immigrants.”

 

January 29, 2004

 

 

Women at IBM – late 1950s

 

When I started working at IBM in 1957, most of the female employees were in secretarial positions. Up to the time of World War II, women were required to resign if they married, a common practice in many businesses in the United States. IBM suspended that rule during WWII and the Korean War, and later quietly dropped it.

 

I observed in my early years at work that many of the women tried to “fit into” the mostly male environment, and some made odd accommodations. For example, some adopted nicknames: Rosemarie became Ro; Nicole became Nicky; Veronica was Ron; Josephine was Jo; Elizabeth used Bette and Betty Jane was called BJ. They likely thought that the more feminine sounding name didn’t fit in with the perceived “macho” male structure surrounding them, so they used shorter, more forceful versions of their names.

 

Others went further by getting short haircuts and suppressing stylish feminine clothing. And a few showed they could match the rough, salty language that many men used. My Army experience taught me that people who resorted to cursing and profanity merely showed that they had a #%bleeping limited vocabulary.

 

By the time I retired in 1988, there was a lot more equality in the work place than I saw in the 1950s and 1960s. Some of it, I like to think, was due to enlightened self-interest. But there was also the powerful, overriding effect of federal, state and local civil rights legislation, beginning in 1964.

 

October 3, 2005

 

You Name It

In the late 1950s, the Sales Engineers at IBM's Electric Typewriter Division HQ in NYC were proud to show me a new technical innovation -- two electric typewriters were connected in tandem, and what was typed on one, was duplicated on the other. They called it a "MASTER-SLAVE" unit, a name perhaps given by engineers at our Lexington, Kentucky plant. I expressed my concern with the designation of "master slave" [I didn't use the following words, but thought it was antithetical to American ideals of egalitarianism]. 

I was a brand-new hire and not yet working in the Personnel department, so I didn't expect or get much of a reaction. Yet, shortly after, the name was changed to "Input-Output" unit. I suspect someone higher up in the organization also saw how inappropriate it was. But engineering jargon still abounds -- Google currently lists a "Clutch Master and Slave Cylinder Assembly".

October 2018 

The Tiffany Revere Bowl That Never Was – 1959

One of my assignments in the Corporate Personnel Department at IBM’s World Headquarters around 1959 was to determine whether the gift for retiring employees should be changed. It was a sterling silver, initialed calling card tray from Cartier, the prestigious jewelry store on Manhattan’s Fifth Avenue. The tray was about six inches in diameter and cost approximately $20. As presented to the retiree, it was accompanied by an engraved card that read:

 

            Mr. and Mrs. Thomas J. Watson, Jr.

 

Mr. Watson, Jr. was the son of the company’s founder and Chairman of the Board. 

 

In those early days at IBM, most retirees came from the Endicott plant (there were no “factories” in IBM), the company’s original manufacturing site located in upstate New York. I learned from the Personnel Manager there that the retirees very likely did not have calling cards and thus didn’t have any use for the gift.

 

My job was to evaluate possible replacement gifts and to make a recommendation. The only restriction was that the new item could not cost more than the calling card tray. Based on the value of the trays then purchased annually by IBM, the Cartier sales representative was not very interested in this business and had little to offer me in the way of service. Major sales at Cartier’s were usually through private appointments made by the monied families of New York City and the world.

 

Right up the street from our office at the corner of Madison Avenue and 57th Street was located Tiffany and Company, not yet popularized by the 1961 movie Breakfast at Tiffany’s, but still a fashionable store and known for their exquisitely designed window displays. Compared with Cartier, however, which dates back to 1847, they were newcomers in the field of fine jewelry. Actually, Tiffany had started as a dry goods and stationery store on lower Broadway ten years earlier, in 1837. Cartier opened their New York store in 1909 and Tiffany built its headquarters on Fifth Avenue in 1940.

 

The people in Tiffany’s corporate promotions department were very helpful, showing me several possible gifts. They assured me that the famous blue Tiffany box would bring recognition, and I thought this would extend even to Painted Post, New York, the town where Mr. Watson came from. I considered two items – a sterling silver bowl in the Paul Revere style and a pair of crystal hurricane lamps. My final choice was a Revere bowl, a classic American design that could be used as a serving piece. The bowl came in many sizes, but I selected one about five inches in diameter, equal to the cost of the calling card tray.

 

My recommendation for the engraved Revere bowl from Tiffany went through channels to upper management, and I was pleased when they agreed to adopt it. However, the supplier was not changed to Tiffany, but remained the “classier” Cartier.

 

About fifteen years later, the gift had substantially increased in cost, due to the wildly rising silver prices, and the selection was again changed. A story, perhaps apocryphal, was that at a retirement luncheon, when the small Revere bowl was presented, the retiree said, “What a thoughtful gift. All these years IBM has been paying me peanuts, and now I have something to put them in.”

 

The new gift, was and still is, a shiny pewter serving tray. At eleven inches in diameter, it’s much larger than the Revere bowl, and thus more impressive. It comes from – you guessed it – Cartier. I call it the fancy pizza tray.

 

Footnote: In November 2015, a 6.75" Revere Bowl from Tiffany's sells for $1,500.

 

1996

 

 

The Expensive Unicorn – 1960s

 

Marcal’s was a jewelry store on Fifth Avenue in New York City, near van Cleef and Arpels and Tiffany’s, but not as fancy. I worked nearby and stopped in one day looking for a unicorn pin as a gift for my wife, Ann, who collected unicorns in every fashion.

 

I asked the salesman if they had any unicorn pins and he bought out a nice one studded with stones of some sort. I asked, “How much is it?”

 

He replied, “Three hundred dollars.”

 

I smiled and said, “Oh. That’s kind of high.”

 

He arched his eyebrows and said, “Well it’s a fine specimen.”

 

I thought, specimen? For that kind of money I should get the real animal.

 

I found a very nice unicorn pin from DePinna’s, further down on Fifth Avenue, for about $19.99.

 

January 2, 2000

 

 

Falling Out of the Shelter – 1961

 

A recent New York Times article (October 2, 2011) on President Kennedy’s nuclear bomb shelter in Palm Beach, Florida, built 50 years ago, reminds me of my experiences at IBM around that time.

 

In the interests of national defense, IBM offered an interest-free, fallout shelter loan program for employees. The loan maximum was $1,000 and it was to be used to construct and/or purchase supplies for a bomb shelter put in the family home. I was the administrator of this program for the Electric Typewriter Division in 1961-1962.

 

Fallout from the program intersected with another division responsibility I had – to monitor the sales of employee homes under the Home Guarantee Program, where IBM, through local banks, took over the sale of homes of transferred employees at a guaranteed appraised value. Homes on the market for more than six months received special attention.

 

One home in Florida was particularly difficult to sell. It was unsold for about one year and one of the drawbacks was the bomb shelter in the backyard. Brokers complained that it was an eyesore, possibly home to rodents and/or mischievous neighborhood juveniles. My decision, in an effort to make the property more saleable, was to bury the shelter, despite IBM having fostered its construction in the first place. A local contractor was hired to fill the shelter with dirt, bulldoze the entrance and plant grass. The property was eventually sold, at a modest loss.

 

Gradually, the shelter loan program faded away, even though the cold war would take another three decades to wind down. In some future eon, an archeological dig may unearth that ancient structure, possibly still filed with plastic jugs of water. The experts will speculate about its origins, but they’ll never get to the full story of a compounded employer-employee relationship.

 

October 2011

 

 

Computer Systems – 1960s

 

My first management job at IBM, in the mid-1960s, included responsibility for a new computer system for our Division Personnel Department – what Human Resources was called in those days. Working with me on this project was Art Doherty, a fellow retiree still living in New Jersey, who ably handled the technical details and staffing. As usual, an acronym was used to describe the program: PDS – Personnel Data System. It operated mostly parallel to, and at times in competition with, the payroll system, which some thought was more important, since it involved paychecks, deductions, and withholding taxes. Decades later, PDS was replaced by CERIS – Corporate Employee Resources Information System. I believe the debate still rages as to whether the payroll or human resource system should be primary in recording an employee’s entry into the company.

 

Recently, some forty years later, I attended a meeting at our church where they announced a new personal computer-based program: PDS – this time it meant Parish Data System. It tracks parishioners in all modes – hatch, match, and dispatch.

 

Everything that goes in circles comes around again, if you live long enough.

 

November 16, 2005

 

 

IBM’s Apple Orchard – 1960s

 

In the mid-1960s, before IBM moved from New York City to Armonk, New York, in Westchester County, the acreage IBM owned there was actually a working farm – an apple orchard.

 

The guys in the accounting department, then located at 590 Madison Avenue in Manhattan, were proud of their analysis of IBM’s profit margin on the apple production. They told me the percentage of “Return on Investment” for the apples was much better than for any other IBM product. Dollar volume, of course, was another matter.

 

When the company relocated to Armonk in the mid-1960s, the street address became the distinctive “Old Orchard Road.” Unfortunately, the apples trees were treated so they no longer produced fruit. Later, circa 1997, when a new headquarters was constructed on the site, the address was refashioned as “New Orchard Road.”

 

November 5, 2010

 

 

IBM Cafeteria Catering – 1960s

 

In the mid-1960s, IBM moved its World Headquarters from 590 Madison Avenue, at 57th Street in New York City, to the bucolic apple orchards of Armonk, New York. The responsibility for operating the building in Manhattan was transferred to the headquarters of the Office Products Division, and as personnel manager at headquarters, the cafeteria manager reported to me. The food service facility was located on the third floor and served about 1,000 meals daily.

 

Our division management was not too happy with this arrangement, seeing it as a liability. Corporate executives and the IBM board of directors still used offices there as home base in Manhattan. If something went wrong with that operation, its visibility made it a “no-win” exposure. For example, shortly after we moved into the building, the IBM president called our division president complaining about cooking odors that wafted onto the elevator when the doors opened on the third floor. The quote we heard was that “it smelled like a boarding house – fix it!” Shortly afterward, glass partitions and enhanced exhaust fans were installed in the lobby. But when fish was frying, the odors still rolled through to the elevators.

 

When I was temporarily managing the cafeteria – after the cafeteria manager moved to a positon in marketing – I received a call from the office of the Chairman of the Board, Thomas J. Watson, Jr. He was planning to sail his yacht “Palawan” from the Hudson River and wanted the cooks to prepare several pounds of hamburger patties. This had been done in the past and the head chef and one of his assistants started on the task. The Chairman’s office said they would pay for the cost of the chopped sirloin. I decided it would be appropriate for them to also pay for the labor cost. I calculated the time spent in preparing the patties, wrapping each in aluminum foil and placing them in Styrofoam containers, which were sent to our mail room for delivery to a pier on Manhattan’s west side.

 

Several days later the manager of the corporate accounting department called me to ask why I was including a labor charge. I explained that I thought the Chairman would not want such personal expenses to be borne by the IBM Company. Then, he wanted to know how I calculated the labor cost. I told him I used the total hours reported by each cook multiplied by an hourly rate, based on the mid-point of the salary range for a cook’s job. That seemed to be enough precise detail to satisfy even a CPA. The cost offset wasn’t much, but I needed all the help I could get for the cafeteria’s bottom line, which was always in the red. I think it was a bargain, since I did not charge for pro-rated benefit costs.

 

October 2003

 

 

If the Suit Fits – 1960s

 

When in Japan in 1955, I had two suits custom-made – a gray flannel and a blue serge. Oddly, these tailors in Tokyo were Chinese.

 

About five years later, I bought a new suit at R.H. Macy’s in Manhattan, and alterations were included. As the Italian-born tailor was measuring me and checking the trousers, he asked, “Do you dress right?” I was only familiar with the Army drill command: “Dress right, DRESS,” to align soldiers in formation, so I didn’t understand his question. Using vague, non-direct language, the tailor explained what he was asking – he would alter the crotch area of the trousers based on the form-fitting men’s clothing styles then popular in the early 1960s.

 

After all the ministrations and modifications by the tailor – sleeve length, shoulder leveling, cuffs, waist AND crotch adjustment – even Richard III would look Regal.

 

January 25, 2014

 

 

Blackout 1965

 

It was a dark and non-stormy night.

 

Around 5:25 PM on November 9, 1965, I was about ready to leave my office at IBM at 590 Madison Avenue, near East 57th Street, NYC, when the power went out. It was soon apparent that it was widespread, as all nearby buildings were without lights and the street traffic lights were not working. I later learned that a grid problem in Canada caused a blackout in much of the northeastern United States.

 

The cafeteria in our building was still serving evening meals in those days, so I headed there. Since the cafeteria manager, who reported to me, had left earlier, I decided to make his office my center of operations. Word eventually came down that we should continue to serve meals and beverages at no charge. A single light bulb was mounted in a central area, near the staircase, hooked up to a generator set up by our building service employees.

 

From the third-floor cafeteria windows, I could see the bus, car, and pedestrian traffic surging up Madison Avenue, with volunteer “traffic cops” doing a good job at the major intersection at 57th Street. Luckily for the walkers, the weather was relatively mild that night.

 

Telephones were still working, since Bell generated the low voltage electricity used for transmissions over wires. By calling home, I found that that Long Island was also without power, so I told my wife, Ann, that it might be quite a while before I got home. When the food in the cafeteria ran out, most people just sat at the tables looking out into the dark streets below.

 

Around midnight, the third shift (midnight to 8 AM) building service employees were arriving by automobile. Management decided to have those employees use their cars to ferry employees to their homes in the various boroughs and suburbs. At 2 AM, I awaited my car ride, which was just returning from a run to the nearby NYC boroughs. It was to go to several towns on Long Island, with mine, Merrick, toward the end of the run. I arrived home at around 3:30 AM, and power returned much later that morning.

 

My sister, Marie, and some of her family members were also caught in the blackout. Her husband, Rudy, and their son, Jack, then a high school student, were on a LIRR commuter train somewhere underground, approaching the East River. They had to exit the train, walk along the tracks, climb up an emergency staircase and make their way back to Penn Station. There, using phone contacts with my mother on Long Island, they were able to meet up with Marie at Penn Station. She was with a lady she met there who was very nervous about the situation and wanted to stay close to Marie. All four then took a cab to the doctor’s office where Marie worked on Park Avenue and 59th Street. As the hours ticked away, they decided to settle in for the night. Each found the most comfortable seat available, and one even used the doctor’s examining table. With the return of the power in the morning, each was able to resume their journeys home, except Marie. The doctor said some patients were due to arrive, so he asked her to remain.

 

It seems the spike in the birth rate nine months later was never firmly proven as having been caused by the blackout in November. Whether anomaly or urban legend, it makes a good story.

 

And police records for that night didn’t show a significant increase in criminal activity; not like the blackout of 1977, where there was widespread looting and arson in New York City.  

 

February 2012

 

 

The Parable and the Cook – 1968

 

Early in my career as a Personnel Manager for IBM, I was temporarily in charge of the employee cafeteria at our headquarters building on Madison Avenue in New York City. At around 4:00 PM one day, there was a major tie-up in the subway. A public address announcement was made to employees that due to the problem, they were permitted to leave early. Since the cafeteria workers had early shifts, they had left hours before.

 

The next morning, the head chef, Felipe, came to see me. He said that since other employees in the building were allowed to leave one hour early the day before, he thought the cafeteria workers should now receive similar time off.

 

Knowing that he was a pastor of a church in his neighborhood in Queens, I gave him a negative reply with some Biblical backing.

 

“Felipe,” I said, “you know the parable of the workers in the vineyard, where some workers received a full day’s pay, even though they only worked a few hours?”

 

He was somewhat surprised at my answer, but smiled and said, “Yes, but it was different then.”

 

Expecting a theological rebuttal, I asked what the difference was.

 

His answer capped all my studies in labor-management relations.

 

“IBM wasn’t around in those days.”

 

November 1, 1990

 

 

The Cafeteria Manager at IBM – 1969

 

In the late 1960s, I hired Leo K. as manager of the IBM cafeteria at our headquarters building in Manhattan. He was a very interesting man – he had survived the Holocaust in Europe, then joined the Israeli army right after that country was established in 1948. His most recent job had been as a cafeteria manager at Pan Am at JFK airport in Queens. 

 

This was my first management job as IBM, and I knew very little about food service. So I let him handle the technical aspects of food preparation and I focused on helping him learn the people-sensitive style of management needed in that non-unionized, somewhat paternalistic company.

 

The IBM Speak Up! program allowed employees to send comments, complaints or compliments to management, either anonymously or signed. All these communications were investigated and reports were prepared for higher management review. One of the first comments we received about the cafeteria stated: “I rarely eat in the IBM cafeteria. The other day I tried it and found the food terrible, the portions small and the lines too long.”

 

My management philosophy on such comments could be summed by two Latin proverbs: “De gustibus non est disputandum” – “In matters of taste, there can be no debate.” The second proverb: “Nulle bastardum carborundum” – roughly translates as, “Don’t let the turkeys wear you down.”

 

I asked Leo to prepare a suggested response and his draft began: "Thank you for writing about your experience at the IBM cafeteria. I am sorry you were not satisfied."

 

So far, so good, I thought. But his proposed reply continued: "On your next annual visit to the cafeteria, please see the cafeteria manager and he will make sure you get everything you’re entitled to."

 

I chickened out on sending this pungent reply back to upper management. Instead, I watered it down to a mealy-mouthed bit of pabulum that would be more digestible to the executive palates.

 

Years later, after moving to the grassy plains of New Jersey, with a brand-new cafeteria and a new cafeteria manager, the writer of that complaint identified himself to me – he then reported to me as manager of Equal Opportunity – and he still left the building for lunch.

 

June 2004

 

 

Room Service – 1969

 

In the early 1960s, IBM co-signed, with Vice President Lyndon B. Johnson, a document entitled, “Plan for Progress,” which committed the company to ensuring equal opportunity in all its operations. My division at the time, Electric Typewriter, employed a relatively small number of minorities – enough so that my boss, the division manager of personnel (what human resources was called then) kept the entire list on a small deck of hand-written index cards. He came from the South and ran into problems when he referred to African Americans as “NIG-rahs,” the way some Southerners said “Negroes.” After being told his pronunciation could be misunderstood, he changed it to a deliberately accentuated “KNEEE-grows

After the Civil Rights Act was passed in 1964, IBM’s Equal Opportunity efforts expanded to include setting goals and timetables for increased hiring, training and promotion of minorities and women, along with other affirmative action programs. For example, IBM opened a manufacturing plant in the Bedford-Stuyvesant section of Brooklyn, which continued until it was transferred to private ownership a couple of decades later. In the latter half of the 1960s, our division, then called Office Products, helped to set up a program called the “Harlem Street Academy” for training office equipment repair technicians on 125th Street in New York City.

 

The IBM manager handling this part of the program was Salvatore (Ted) La Marca, a former branch manager for “Customer Engineering” (repair technicians). Ted asked me, as one of the personnel managers, to join the IBM table at a fund-raising dinner being held by the project sponsor, the Ministerial Interfaith Association, at the New York Hilton hotel.

 

He attended with his wife, and when the dinner and speeches ended at about 11:00 PM, they left for the commuter railroad station. He had reserved a room at the Hilton in case they wanted to stay overnight, but he offered it to me, as he and his wife were returning to their home on Long Island. Shortly after I settled into the room, I called my wife, Ann, giving her the hotel phone number and room extension. A few minutes later, Ted called me saying that he and his wife had changed their minds and asked if I would mind getting another room. I obliged and moved somewhere else in the hotel around midnight.

 

The following morning at eight o’clock Ted called. My wife had called their room, his wife had answered the phone and told her I was not in the room. He suggested, in a somewhat concerned tone, that I call my wife promptly.

 

I forget the reason Ann called me, but I recall doing some fast talking as to why a woman answered the phone in “my” room. Ann never questioned, then or now, the truth of my explanation. A few years later, at a company picnic, the two wives met and had a good laugh over the mix-up.

 

As I look back at it, I wonder if the Marx Brothers started out this way. 

 

2004

Dashing Dan – LIRR – 1963-1970

 

To the editor of TIME magazine:

 

The “American scene” article by Contributor Jane O’Reilly on the L.I.R.R. (Jan 28) is a masterpiece of tragic writing.

 

As a former Dashing Dan, I could refeel the clunk of the square wheels, as well as the chills, sweat and frustration of daily commuting on the Babylon line. My fondest memories include the Penn Station announcement, “All trains are delayed due to singnal (sic) trouble,” or, after sitting in a freezing train for 45 minutes only one “station-stop” from home, hearing a conductor yell, “Dis train is dead!”

 

Years ago, in the Terrible Sixties, I recall the promise made by then Governor Nelson Rockefeller that the L.I.R.R. would be the best railroad in the country. Then, the debate was over which was the culprit – management or labor. Long after happy memories of the former U.S. Veep have faded, it seems the problem still persists.

 

I took the only way out – a move of employment and residence to New Jersey. Now, I have a pleasant 40-minute auto ride over the rolling hills of North Jersey, listening to the Morning Edition on National Public Radio and classical music in bite-size chunks on commercial free WNYC-FM. I don’t even listen to the frenetic warns of Shadow Traffic coming from the Vietnam-style choppers.

 

The solution? Designate the L.I.R.R. as a wonder of the world, right after the hanging commuter lines of Delhi, India. Or, declare it a living national treasure: a new ballet art-form entitled, “Change at Jamaica.” Or, have the Vatican proclaim it as a substitute for one thousand years in Purgatory.

 

March 14, 1985

What’s in a Name? – 1985

 

Arriving at a hotel late one evening on an IBM business trip to Bethesda, Maryland, the front desk clerk could not find my name. I assured her that my secretary had phoned for the one-night reservation.

 

“Sir, what company are you with?” she asked.

 

“IBM,” I replied, “from Franklin Lakes, New Jersey.” She then looked through the reservations that were made through the IBM corporate account, while I tried to look on as patiently as possible.

 

“Oh, here’s one from Franklin Lakes, New Jersey. Filed under ‘C’ – Mr. Bing Cherry.”

 

I didn’t know whether to croon or swoon.

 

November 1996

 

 

IBM Office Products Division – The People – thru 1981

 

The seminal work on the history of the IBM’s Electric Typewriter Division (later renamed the Office Products Division) is the book, published in 1991, entitled The Romance Division: A Different Side of IBM by the late Connie DeLoca and my email correspondent Sam Kalow. It covered the history of IBM’s only wholly integrated division – from Engineering and Manufacturing through a nationwide network of branch offices for Sales, Service and Administration.

 

What follows are some reflections on the people in all these functions, based on my experiences from 1957 through 1981 as an employee and manager in the division headquarters personnel/human resources function.

 

1. Marketing/Sales – In the early days only men were in Sales; women were used as Educational Representatives. The President and most top management positons in the Division were from Sales, except for one Financial type, who became President during the Division’s waning days. Common traits of Sales types: “wing tip shoes and a smile.” Their names were found all across Middle America: Bart, Roy, Colin, Tom, Bill, Jack, Dick, Jim, Dave, Johnny, etc. It was very rare to find someone with a name such as Sterling, Wellington, Thornfield, W. Clifford or Worthington. And if they had a suffix number like II after their surname, it was usually omitted. The salesmen I met told me they were a sucker for a sales pitch – they felt a deep kinship to someone who was making a spiel, even for something as simple as an apple corer or vacuum cleaner.

 

2. Customer Engineering (Service technicians) – They were a different breed, again all males at first. Most had technical training or military background, and they wore suits and ties, keeping with the IBM image, but they could be very down-to-earth when fixing an electric typewriter in a customer’s office. Once, after I made a management development presentation to a bunch of service managers, the anonymous evaluation sheets contained some direct feedback: “SOS,” their shorthand for “same old s**t.” Yet, when I ran the President’s Forum for the Customer Service Division (formed after the Office Products Division was disbanded in the early 1980s), it was the service managers who generously took up a collection and gave me, as the class manager, an informal “informal award” – a gift certificate to a local restaurant. In my then straight-laced thinking, I reported this to my manager, Namon Lewis, as a possible borderline violation of IBM’s policy on Business Conduct and Ethics. He laughed and told me to enjoy the meal.

 

3. Administration – The managers in this function at the branch office level had the job of keeping Sales and CE happy, at the same time trying to ensure that customer billing went smoothly, including high-volume products like typewriters ribbons and carbon paper.

 

2007

 

 

Equal Opportunity Reporting – 1988

 

Equal Opportunity (EO) reporting to the Federal government was a comprehensive, systematic analysis every company was required to complete each quarter. It included, among other items, the number and percent of minority and women employees, by overall population at location and department levels and by major job categories, along with comparisons with community norms, as well as written narratives with detailed action plans for all areas out of “compliance.”

 

Once I attended a management development meeting where the corporate director of EO, whom I knew from the early days of our careers at IBM’s Office Products Division, was making a presentation on EO reports, covering some changes in procedures. While talking about the very detailed paperwork requirements, he referred to the occasional overlapping of reports as “duplicity.” Presuming he would want to be aware of the misuse of the word, I sent him a personal note at the end of the meeting as part of the routine speaker evaluation feedback. I figured he would prefer to learn about it from an old buddy, rather than be criticized by some high-level IBM executive.

 

Months later I attended a meeting at IBM’s corporate headquarters in Armonk, NY and he was also there. When it was his turn for self-introduction, he made a friendly reference to me as the “old perfessor” and told all present about my correction of his statements about “duplicity” in EO reporting.

 

So much for making confidential suggestions – but I’ve always had a nagging feeling that there was a bit of irony, perhaps intended, when such reports were labeled by many as “duplicity.” But, for the record, in my 30 plus years at IBM, there was never a settlement of a class-action EO case involving the company, as was very common in industry, such as the multi-million dollar settlements with AT&T, General Motors, etc.

 

2009

 

 

 

“HOW’M-I-DOIN’?” – 1989

 

After retiring from IBM in 1989, I worked for about six months with the Mayor’s Private Sector Survey – a consulting team of approximately 50 business people looking at NYC government operations to provide recommendations for the mayor, Ed Koch. The unit I worked with evaluated personnel records systems across city agencies.

 

FINDINGS:

1. Politics and elections were very influential. There were major differences between what went on in for-profit industries, both unionized and non-unionized, compared with running a large governmental operation.


2. Bureaucratic/civil service mentality was pervasive. This was not limited to municipal worker union members; managers were just as resistant to change. For example, when I cited a patently inefficient procedure and asked, “Why is this done this way?” the reply was either, “We’ve always done it that way,” or “No one ever asked that question before.”

A popular story involved a worker permanently stationed at the bottom of a staircase in a municipal building with no apparent duties. It turned out that once, decades ago, a person fell on that staircase, and ever since, an employee was assigned to sit nearby.

 

3. Automation, even microfilming, was in primitive stages. For example, original documents were always retained – it seems a judge once asked for an original, so photo copies were not used when originals were available. Files were all over city buildings and island warehouses – in one case, an armed guard was needed every time a file needed to be retrieved.

 

4. The Police Department was not very cooperative. They fiercely defended their independence and were especially secretive about their computer systems.

 

RECOMMENDATIONS:

  • Digitize records on computers – save acres of space and labor costs.

  • Invest in computerization upgrades (not necessarily IBM equipment) and reap larger savings.

 

OUTCOME:

Mayor Koch lost the primary; the task force recommendations were passed onto the next Mayor (David Dinkins), who faced a deteriorating city with demoralized workers. Rudy Giuliani was then elected Mayor in 1993 and began a major overhaul. Interestingly, the Police Department’s use of new computerized systems [crime reporting, precinct accountability, etc.] has been cited as a major reason for the turnaround in quality-of-life issues.

 

2010

 

 

Health Insurance – 2009

 

In 2009 my health insurance premium went up 290% from the previous year for the same HMO plan, same benefits. I wrote to the CEO of Horizon Blue Cross/Blue Shield of NJ and asked WHY? His office replied that because of federal privacy law (HIPAA), they could not answer and referred me to my previous employer, IBM.

 

IBM’s benefit administration for such plans is subcontracted to Fidelity – a brokerage firm that survived the financial blow-out of 2008. They answered me with a song-and-dance routine expanded to a full symphony concert about rising health care costs (aging population, increased use of prescription drugs, advanced and expensive diagnostic tests, etc.) None of this explains the 290% increase. They also mentioned some accounting changes and that the rates were approved by the Feds – the Centers for Medicare and Medicaid Services (CMS).

 

So I wrote to CMS in New York City. The director’s reply stated that CMS did NOT review or approve Medicare plans that are offered by employers to retirees. They referred me back to my former employer.

 

IBM Human Resource Management then stated that the premiums were dictated by the health care insurer and were essentially non-negotiable. So I went full circle with no specific answer. And when I sent this sad tale to my representative in Congress, he didn’t even acknowledge receipt.

 

When the 2010 health insurance offerings came in October 2009, the premium for Horizon was set to increase again, this time by 34%. That’s when I decided to switch to a similar HMO, AETNA, that costs me 84% less than Horizon. Why such differences? I don’t know and don’t ask. It could be caused by El Niño or perhaps by some Bernie Madoff-like manipulation.

 

2009

 

 

IBM Millstones (sic-sic) – 2011

 

In reflecting on the 100th anniversary of the founding of IBM in 2011, some other significant dates should be remembered:

 

1941 – IBM announced the proportional spacing electric typewriter technology. Release of the first such product, the “Executive” typewriter, was delayed to 1946 due to WWII.

 

1961 – In August of that year, 50 years ago, the Electric Typewriter Divisions of IBM (later renamed Office Products Division) announced a revolutionary product – the Selectric: an electro-mechanical typewriter with a single element, changeable printing head [called by some the “golf ball”]. Wikipedia says the Selectric and other similar machines ultimately got 75% of the U.S. market for business electric typewriters.

 

1971 – The Office Products Division opened its new headquarters in Franklin Lakes, New Jersey, in February 1971, 40 years ago. By the mid-1970s, OPD, the only fully integrated division of IBM, had grown – engineering and manufacturing sites in Lexington, Kentucky; Austin, Texas; Boulder, Colorado; and Greencastle, Indiana – in addition to hundreds of branch, district and regional offices across the U.S. to cover sales, customer engineering (service) and administration. With thousands of customers and millions of invoices for items as mundane as typewriter ribbons, this unit of IBM was as close as the company ever came to having a retail operation. OPD was known to some as “Little Green” (the Division color), as opposed to “Big Blue,” the name for those involved with data processing and computers, and later, for the company overall. There was, of course, a short-lived venture into IBM “stores” in the 1980s, when the Personal Computer was announced. IBM’s ultimate niche was even bigger than a “Big Box” operation – mainframe computers and information technology services.

 

1981 – IBM’s Office Products Division was dissolved; sales and service was put under two marketing divisions; service went to the Customer Service Division; and engineering and manufacturing was transferred to other units.

 

1991 – IBM sold the remnants of the typewriter and keyboard business; dictation equipment and copier products had already been dropped. And a printer business was started at the former OPD plant and lab in Lexington, Kentucky: Lexmark International.

 

[I recall we celebrated IBM’s 50th in 1964, based on when Thomas J. Watson, Senior joined in 1914 – but who’s counting?]

 

2011

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