IBM STG seems to be the "black sheep" of the various IBM divisions. The success of several other IBM service divisions is very linked to the the STG hardware and technology, and IBM's model of providing overall solutions. Unfortunately, this model would work well if all the business units were treated as one. Since this is not the case, and the corporate mandate is for STG to provide technology first and foremost to IBM, that business unit is always getting the short end of the stick when the quarterly numbers are reported. This translates into vastly lower bonuses and profit sharing due to the lower performance numbers. If that unit treated the rest of IBM as it does the rest of its customers and charged accordingly for their services the numbers would look much better. Morale is low in the STG division due to this and the fact that when lay-offs roll around, that is the first place that gets hit. Another problem within IBM is that it still carries with it a great deal of history of how things were and get done. This creates a LOT of inertia to overcome in order to drive changes or improvement. Not that it is impossible (I speak from experience) but it does require a greater commitment of time and energy. Time tends to be a very limited resource due to the cutbacks in personal and the increase in workload. The other item that seems to really need work is the innovation reward system IBM has established. IBM rewards people for ideas and patents, but the system is set up so that it can be "gamed" by people who have been at it for a while. It doesn't really produce new innovations that could lead to new business opportunites as much as incremental improvements in current technologies or ideas that will reward the submitter but doesn't provide new ventures for IBM.