EMBASSY PRAGUE NOMINATION FOR SECRETARY'S AWARD

UNCLAS PRAGUE 000675

SIPDIS

SIPDIS

STATE FOR EUR/NCE ERIC FICHTE, EB/CBA NSMITH-NISSLEY AND
COMMERCE FOR 4232/ITA/MAC/EUR MROGERS

E.O. 12958: N/A
TAGS: ECON BEXP EZ
SUBJECT: EMBASSY PRAGUE NOMINATION FOR SECRETARY'S AWARD
FOR CORPORATE EXCELLENCE

REF: STATE 64726


1. SUMMARY: Embassy Prague nominates IBM Czech Republic for
the Secretary,s Award for Corporate Excellence for 2006. The
nomination recognizes the important contribution by IBM Czech
Republic to both the Czech community and business
environment. END SUMMARY


2. IBM Czech Republic (IBM CR) entered the Czech Republic
approximately 5 years ago with an initial investment of $8.8
million. They have built sales and business offices in Prague
and a regional technical support center in Brno, which
employs 1,400 people. Current investment and employment
levels are not available. As updated data is received, post
will forward septel.


3. The investment climate in the Czech Republic is considered
one of the best in Central Europe. The Czech Republic
experienced a record $11 billion in FDI in 2005. U.S.
companies have been operating in the Czech Republic since the
Velvet Revolution in 1989 and have invested nearly $4
billion. Most investment comes from large Multi-National
Enterprises (MNEs),such as IBM, Johnson & Johnson and
Procter & Gamble. However, small and medium-sized U.S. firms
also invest significantly.


4. Post selected IBM CR because of its strong internal
promotion and retention policies along with its desire for
corporate excellence. IBM distinguished itself with
innovative employment practices in the Czech market that
include professional development programs, flexible work
hours, and well-being and injury prevention programs along
with outreach to technical universities.

Employment Practices


5. &Diversity in IBM means welcoming all people in the
workplace regardless of factors unrelated to job
performance,8 said Ales Bartunek, General Manager, IBM Czech
Republic. &The best team in business consists of a rich
variety of people of different gender, race, religion, age,
physical ability, cultural background and life experience.8
IBM Czech Republic has implemented a number of employment
practices to make this goal a reality.


6. The Women's Leadership Council (WLC) raises awareness of
women,s contribution to IBM within the company and with IBM
customers. It is the place for IBM women to address issues
with the leadership teams and also to network together and to
share best practices.


7. The Taking the Stage Program shows women how to achieve a
strong leadership presence by focusing on developing their
public speaking abilities in different situations ) board
rooms, meeting rooms, conference halls and phone calls. The
program is designed to strengthen the leadership skills of
IBM women through a structured discussion and provide IBM
women with the opportunity to network and build relationships.


8. The Maternity Leave and Return Program supports IBM women
before, during, and after maternity leave to increase the
number of women returning to their job after maternity leave.
Those on leave can keep their notebook computers and User
IDs, stay on all distribution lists, have access to the
intranet, receive internal newsletters, and be invited to
department events.


9. The Flexible Office Program is an option to telecommute
from home, from a customer,s office or any other place where
it is most convenient for the employee. This program benefits
employees with children or on parental leave who are
struggling to balance the demands of their work with their
personal lives. The company supports them technologically by
providing a computer and covering their Internet connection
expenses necessary to carry out their jobs.


10. The IBM Global Pulse Survey is one of the ways the
company assesses the effectiveness of IBM leadership and
whether IBM is creating an environment where employees can
grow and make a difference. Conducted bimonthly, the survey
measures employee satisfaction and attitudes on key workplace
topics, such as leadership, innovation, processes and
resources, challenge and opportunity, rewards and feedback,
and teamwork. Results of each survey are summarized in a
report, providing insight into current employee attitudes as
well as trends over the past four months and year on year.
Data on how IBM is doing in each area relative to their
competitors and other companies in Europe is also included.

These reports are posted regularly on the intranet.

Provisions for a Safe and Healthy Workplace


11. IBM Czech Republic has implemented a workforce well-being
program that aims to reduce workplace related injuries and
hazards through prevention training and consultation. For
instance, IBM CR regularly performs inspections in all
premises to detect potentially hazardous or harmful work
conditions. Outside the physical environment, IBM requires
regular medical examinations, i.e. upon joining IBM, yearly,
and at departure from IBM.

Contribution to the Rule of Law and Overall Growth and
Development of the Local Economy


12. IBM CR opened a computer support center, the Integrated
Delivery Center, in Brno, where a large number of
universities and technical schools graduate highly trained
engineers and computer technicians every year. The center
provides services for international customers in all areas of
their IT infrastructure, such as server management (operating
systems, databases and application hosting),and managing the
corporate network infrastructure. Since its inception in
2001, the center has grown to 1,400 professionals and has
therefore reduced Czech &brain-drain8 to other nations.
Compatibility and, if Appropriate, Contribution to Local
Science and Technology Policies


13. The Czech Republic,s educational system produces too few
technically qualified workers to meet the demands of
investors and business. The country,s future prosperity will
depend on high-value-added inputs into the economy, and to
this end, IBM is helping. Through its computer education
initiative, zSeries, IBM CR supports computer science
students and teachers with access to computers, study plans,
and computer experts. It also offers training programs for
university students and teachers.


14. In 2005, the program focused on the Czech Technical
University in Prague. IBM, for example, organized a student
research competition, dubbed &Student Research Projects
2005.8 The competition, open to students in any M.A.
program, assigned research projects according to the needs of
the Czech Technical University and IBM CR. Students were
helped by both their teachers and IBM experts on the projects
with a particular emphasis on teaching students to solve
complex tasks, document work, and present findings. Prizes
included money awards totaling 60,000 CZK (2,500 USD),a
part-time job at IBM, and scholarships and grants.
DODMAN