VZCZCXYZ0049
RR RUEHWEB

DE RUEHPG #0675/01 1671515
ZNR UUUUU ZZH
R 161515Z JUN 06
FM AMEMBASSY PRAGUE
TO RUEHC/SECSTATE WASHDC 7512
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC

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