9 Steps to a Corporate University Presented by Kevin Wheeler San Francisco, California October 11, 2004 Launching a 21st Century Learning Organization

Our Agenda Drivers of CUs Definition of CU Nine Essential Steps in Building a CU

Drivers of CUs

Definition of CU

Nine Essential Steps in Building a CU

Today’s Talent Issues Changing Workforce Gen X, Gen Y, Millenniums Free agency Demographics Smaller, older workforce in the western world Large, young Asian workforce Skilled Worker Shortages Declining college enrollments Shift to service economy

Changing Workforce

Gen X, Gen Y, Millenniums

Free agency

Demographics

Smaller, older workforce in the western world

Large, young Asian workforce

Skilled Worker Shortages

Declining college enrollments

Shift to service economy

Today’s 2-Tiered Business Needs Tier One Narrowly skilled technical workers Range from network administrators to programmers, from accountants to engineers Tier Two Broadly skilled leaders, managers, planners, researchers With foresight, critical thinking, global perspectives, ethical understanding, independence

Tier One

Narrowly skilled technical workers

Range from network administrators to programmers, from accountants to engineers

Tier Two

Broadly skilled leaders, managers, planners, researchers

With foresight, critical thinking, global perspectives, ethical understanding, independence

Why Corporate Universities? To address two major issues all organizations are facing. . . Business Issues Competitive Pressures e-Commerce Changing Consumers Talent Issues Changing workforce Demographics Skilled Worker Shortage

To address two major issues all organizations are facing. . .

Business Issues

Competitive Pressures

e-Commerce

Changing Consumers

Talent Issues

Changing workforce

Demographics

Skilled Worker Shortage

Today’s Corporate Education Almost all focus on tier one. Personal Mastery Little effort spent on Tier Two. Systems thinking Mental models Shared vision Team learning

Almost all focus on tier one.

Personal Mastery

Little effort spent on Tier Two.

Systems thinking

Mental models

Shared vision

Team learning

The Learning Organization Continuum Focus on filling gaps in employee’s current job roles or on specific projects Focus on developing employees’ skills and capabilities against a best- in-class model through formal and informal training. Focus on integrating all components that affect human performance. Tactical Learning Integrated Learning Strategic Learning Source: Deloitte Research: From e-Learning to Enterprise Learning

The Learning Organization Continuum Source: Adapted from Deloitte Research: From e-Learning to Enterprise Learning Focus on filling gaps in employee’s current job roles or on specific projects Tactical Learning Focus on developing employees’ skills and capabilities against a best- in-class model through formal and informal training. Integrated Learning Focus on integrating all components that affect human performance. Strategic Learning Training Management Development Corporate University

Too many disparate, confusing, overlapping functions. The bigger the organization, the bigger the confusion.

Too many disparate, confusing, overlapping functions.

The bigger the organization, the bigger the confusion.

Traditional Training Characterized by: Classes Instructors Focus on personal development Focus on solving problems within content of a course. Team Learning Characterized by: Focus on group dynamics . Organizational Development Characterized by: Understanding of systems and people in systems. Focus on change and innovation Internal business consulting . Knowledge Management Characterized by: Databases containing information about what has been successfully or unsuccessfully done. Academic Values Characterized by: Focus on theory Invention and Discovery R&D Future. Career Development Characterized by: Focus on long term personal growth Employability Talent Acquisition Focus on hiring the best people internally or externally. Succession Planning Finding those who will move up and replace others.

Traditional Training

Characterized by:

Classes

Instructors

Focus on personal development

Focus on solving problems within content of a course.

Team Learning

Characterized by:

Focus on group

dynamics

.

Organizational Development

Characterized by:

Understanding of systems and people in systems.

Focus on change and innovation

Internal business consulting

.

Knowledge Management

Characterized by:

Databases containing information about what has been successfully or unsuccessfully done.

Academic Values

Characterized by:

Focus on theory

Invention and Discovery

R&D

Future.

Career Development

Characterized by:

Focus on long term personal growth

Employability

Talent Acquisition

Focus on hiring the best people internally or externally.

CEO’s see this. . .

CEO’s see this. . .

Org Dvlp Traditional corporate training Academic Education Executive education Recruiting Career Development Succession planning Orientation Knowledge Management Team Bldg Retention Current State of Corporate Human Capital Acquisition & Development

Consolidation is Needed These disparate pieces need to be merged, coordinated, rationalized.

These disparate pieces need to be merged, coordinated, rationalized.

Org Dvlp Traditional corporate training Academic Education Executive education Recruiting Career Development Succession planning Orientation Team Bldg Retention Emerging State of Corporate Human Capital Acquisition & Development Knowledge Management

In Summary Always have the right talent available for any given need at the lowest cost. Ensure than knowledge is widely distributed, added to regularly and free. Enable everyone to contribute at the highest level they can and want to. Provide developmental opportunities continuously. Build systemic harmony and synergy.

Always have the right talent available for any given need at the lowest cost.

Ensure than knowledge is widely distributed, added to regularly and free.

Enable everyone to contribute at the highest level they can and want to.

Provide developmental opportunities continuously.

Build systemic harmony and synergy.

Getting Started

Set a Direction Be somewhat Machiavellian Requires senior management involvement Must be Top-down Focused Committed

Be somewhat Machiavellian

Requires senior management involvement

Must be

Top-down

Focused

Committed

Create a Vision Develop 3-4 short term goals that are: highly visible Easy to roll out Develop internal marketing and communication campaign. Build a business case.

Develop 3-4 short term goals that are:

highly visible

Easy to roll out

Develop internal marketing and communication campaign.

Build a business case.

Nine Steps to Creation What are we doing & why? Planning and Decision Making Organization Reporting Relationships Who tells us what to do? What kind of people work in the CU? What skills are needed? Who pays for the CU? How are curricula funded? What our budget? What curriculum and courses are we offering? How are we delivering them? How do we communicate What we are doing and why we are doing it? How do we celebrate success? What does the organization really believe in? What guides us? Who benefits? How do we measure our success?

Determine the Operating Principles What fundamental assumptions are made about development and about people in your organization? What are the core philosophies/values you operate under?

What fundamental assumptions are made about development and about people in your organization?

What are the core philosophies/values you operate under?

Define the Scope Who receives the outputs/benefits of the university? Which employees are primary recipients of the training and development activities? What type of programs are offered?

Who receives the outputs/benefits of the university?

Which employees are primary recipients of the training and development activities?

What type of programs are offered?

Scope Broad and expensive Large budgets and staffs Can be leveraged through senior management Personal Quick response to immediate needs Focused Lacks corporate focus

Broad and expensive

Large budgets and staffs

Can be leveraged through senior management

Personal

Quick response to immediate needs

Focused

Lacks corporate focus

What is a Stakeholder? Anyone who benefits from or has an interest in what you do. Some typical stakeholders include owners, presidents, CEOs, VPs, managers, candidates, and other employees.

Anyone who benefits from or has an interest in what you do.

Some typical stakeholders include owners, presidents, CEOs, VPs, managers, candidates, and other employees.

Who Are Your Stakeholders? Usually four major types Customers Employees Management Vendors Each of these can be broken into smaller segments.

Usually four major types

Customers

Employees

Management

Vendors

Each of these can be broken into smaller segments.

Planning is Key Single most cited reason for corporate university failure: Lack of political support Second most cited: Not responsive to customers’ needs Third: Too much overhead and administrative burden

Single most cited reason for corporate university failure:

Lack of political support

Second most cited:

Not responsive to customers’ needs

Third:

Too much overhead and administrative burden

Set Strategic Direction There are several strategic orientations found in universities with a corporate-wide charter: Skills and Competency Development Qualification External Customer Focus Relationship Change Management Focus Change Strategic Business Issue Focus Accomplishment Research Academic

There are several strategic orientations found in universities with a corporate-wide charter:

Skills and Competency Development

Qualification

External Customer Focus

Relationship

Change Management Focus

Change

Strategic Business Issue Focus

Accomplishment

Research

Academic

Skills and Development Focus Focus on individuals: Skill building Succession planning Ensuring that there is a competent & highly skilled workforce

Focus on individuals:

Skill building

Succession planning

Ensuring that there is a competent & highly skilled workforce

Strategic Business Focus Focus on business initiatives: Driving major initiatives quality globalization empowerment Providing skills Business development

Focus on business initiatives:

Driving major initiatives

quality

globalization

empowerment

Providing skills

Business development

GE’s Strategy GE's current social architecture began to form in the early '80s when we became convinced that the only way a company like ours could move quickly and successfully through times of radical change was to use every mind in the Company and to involve everyone in the game ...”

GE's current social architecture began to form in the early '80s when we became convinced that the only way a company like ours could move quickly and successfully through times of radical change was to use every mind in the Company and to involve everyone in the game ...”

A typical initiative — Product Services, say, or Six Sigma Quality — is launched with passionate intensity . .

A typical initiative — Product Services, say, or Six Sigma Quality — is launched with passionate intensity . .

GE’s Management Development Institute Crotonville is the place where Jack Welch can drive business initiatives through the management team. Not designed for individual skill building or customer development. Focus is on driving business initiatives and change.

Crotonville is the place where Jack Welch can drive business initiatives through the management team.

Not designed for individual skill building or customer development.

Focus is on driving business initiatives and change.

Implementation “ . . . every Business Management Course class at our Management Development Institute — 50 to 60 of our highest potential leaders — reports back on its three-week experience in the field on the best practices they found from other companies around the world .” -1999 Annual Report

“ . . . every Business Management Course class at our Management Development Institute — 50 to 60 of our highest potential leaders — reports back on its three-week experience in the field on the best practices they found from other companies around the world .”

-1999 Annual Report

Business Initiative Examples “ This year, for example, the first full day was on e-Business. Day 2 covered new thinking in Globalisation, Six Sigma and Product Services . ” -1999 Annual Report

“ This year, for example, the first full day was on e-Business. Day 2 covered new thinking in Globalisation, Six Sigma and Product Services . ”

-1999 Annual Report

GE Ties Development to Planning Fourth Quarter As one cycle ends, another begins. Budgets, personnel and business plans are finalized for the coming year. Continued review and analysis ensures that the right people are in the right jobs for long-term success. October: Corporate Officers Meeting (150 Officers) Next-Year Operating Plan Focus Role Models Present Initiative Successes Executive Development Course (EDC) Recommendations All Business Dialogue: What Have We Learned? -From GE 2003 Annual Report

Fourth Quarter As one cycle ends, another begins. Budgets, personnel and business plans are finalized for the coming year. Continued review and analysis ensures that the right people are in the right jobs for long-term success.

October: Corporate Officers Meeting (150 Officers)

Next-Year Operating Plan Focus

Role Models Present Initiative Successes

Executive Development Course (EDC) Recommendations

All Business Dialogue: What Have We Learned?

Change Management Focus Focus on change & growth: Driving change or transformation Providing change management skills Organizational learning Consulting

Focus on change & growth:

Driving change or transformation

Providing change management skills

Organizational learning

Consulting

Case Example: National Semiconductor University A federation of groups & departments working collaboratively to align training & employee development activities at National worldwide.

A federation of groups & departments working collaboratively to align training & employee development activities at National worldwide.

Purposes To help achieve corporate business goals by implementing change practices (Leading Change). To link education, training and development of our human resources to specific business goals. To identify, share and disseminate best practices .

To help achieve corporate business goals by implementing change practices (Leading Change).

To link education, training and development of our human resources to specific business goals.

To identify, share and disseminate best practices .

Some Facts Staff of 50+ worldwide in account management and organizational development positions. Ran series of successful Leading Change programs for all employees. Was a focal point for discussion, collaboration, and management development.

Staff of 50+ worldwide in account management and organizational development positions.

Ran series of successful Leading Change programs for all employees.

Was a focal point for discussion, collaboration, and management development.

Leadership CEO and Executive team council gave oversight. Strategic direction came from council and Director. Employees thought if it as a place for learning, change and growth.

CEO and Executive team council gave oversight.

Strategic direction came from council and Director.

Employees thought if it as a place for learning, change and growth.

External Customer Focus Focus on customers : Building customer & supplier relationships Integrating customer feedback and input into corporate planning Fostering partnerships

Focus on customers :

Building customer & supplier relationships

Integrating customer feedback and input into corporate planning

Fostering partnerships

Academic Focus Focus on research & discovering basic rules that govern action. Investigation into areas with possible implications for corporate success: Creativity/Innovation Technical leadership

Focus on research & discovering basic rules that govern action.

Investigation into areas with possible implications for corporate success:

Creativity/Innovation

Technical leadership

Find an Appropriate Structure Where does it report? Centralized or decentralized? Federal model? Networks & Loose Alliances Relationship to business units?

Where does it report?

Centralized or decentralized?

Federal model?

Networks & Loose Alliances

Relationship to business units?

Form follows Function Structure should reflect the strategic orientation Centralized Federal & Networks Decentralized

Structure should reflect the strategic orientation

Structural Spectrum Decision making is easy Large budgets and staffs Excellent in times of turmoil and stress Close to customer Quick response to immediate needs Can be leaner Lacks corporate focus

Decision making is easy

Large budgets and staffs

Excellent in times of turmoil and stress

Close to customer

Quick response to immediate needs

Can be leaner

Lacks corporate focus

Create a Governance Structure Who makes the key decisions? Who decides what gets done? Where do budget decisions get made?

Who makes the key decisions?

Who decides what gets done?

Where do budget decisions get made?

Governance Spectrum CEO makes all decisions Little to no input from organization May not meet enterprise needs Customers drive all curricula May not reflect internal needs or meet CEOs needs

Direction & Control May range from CEO-led boards of directors with staff and functional representation to simple internal market mechanisms May report to CEO or to Vice President of Human Resources

May range from CEO-led boards of directors with staff and functional representation to simple internal market mechanisms

May report to CEO or to Vice President of Human Resources

Possible Advisory Boards Types Customer/Stakeholder Curriculum Financial Purpose Content input Satisfaction Needs identification

Types

Customer/Stakeholder

Curriculum

Financial

Purpose

Content input

Satisfaction

Needs identification

Know Your Source of Funding For profit or not-for-profit? Paid for by corporate allocation or by charging business units? Open to non-employees or not? Hybrid model with partial costs paid by corporate

For profit or not-for-profit?

Paid for by corporate allocation or by charging business units?

Open to non-employees or not?

Hybrid model with partial costs paid by corporate

The Funding Spectrum No excuse not to attend High control Consistent messages Quality Control Messages “corporate” Must market & sell Message is custom Pricing is competitive Quality may vary

Trends Move toward partial cost recovery expectation More cost-consciousness Marketing & selling are part of doing business More focus on “pull” than on “push” in marketing

Move toward partial cost recovery expectation

More cost-consciousness

Marketing & selling are part of doing business

More focus on “pull” than on “push” in marketing

Get the Right Staff & Skills Who delivers the programs? How are they delivered? Are the university staff mostly internal or external? Are university staff experts in instructional design and presentation? What skills define the corporate university staffer?

Who delivers the programs? How are they delivered?

Are the university staff mostly internal or external?

Are university staff experts in instructional design and presentation?

What skills define the corporate university staffer?

The Skills/Staffing Spectrum Skills Model -Staff has degrees in instructional design -Recognized as “experts” in delivery -Content from SMEs -Staff is mostly from line -Emphasis on practicality -A few experts act as coaches

Trends Movement to using external vendors More partnering & networking Sharing of resources Internal staff is minimal & differently skilled Leverage line management and internal skilled experts

Movement to using external vendors

More partnering & networking

Sharing of resources

Internal staff is minimal & differently skilled

Leverage line management and internal skilled experts

Internal Staff Competencies Project management Influencing & selling Business acumen / experience Consulting

Project management

Influencing & selling

Business acumen / experience

Consulting

Make or Buy? Many classes are better purchased from outside consultants and vendors. These include skill-oriented programs Anything involving routine processes or procedures Classes with high content/low need for interactivity/low proprietary need

Many classes are better purchased from outside consultants and vendors.

These include skill-oriented programs

Anything involving routine processes or procedures

Classes with high content/low need for interactivity/low proprietary need

Models Apprenticeship Communities of Practice Communities of Interest Reinvention of “craft” Collaborative education and knowledge sharing Skills building via e-learning, etc. . .

Apprenticeship

Communities of Practice

Communities of Interest

Reinvention of “craft”

Collaborative education and knowledge sharing

Skills building via e-learning, etc. . .

Develop Appropriate Curricula Focus on business needs and align to strategic direction. Use technology. Focus on learning and getting results, not on pedagogy.

Focus on business needs and align to strategic direction.

Use technology.

Focus on learning and getting results, not on pedagogy.

Market the CU Wisely Develop a business plan for the university. Remember that you are a business. Look like you know the business world. Show deliverables quickly! Your methods do not need to be perfect but you need to show that you have made improvements in the organization.

Develop a business plan for the university. Remember that you are a business. Look like you know the business world.

Show deliverables quickly! Your methods do not need to be perfect but you need to show that you have made improvements in the organization.

Never forget the work of building relationships with your client base (senior management)

Never forget the work of building relationships with your client base (senior management)

Metrics Determine with the governance team what will constitute success BEFORE launching. Develop tools to capture the data you need.

Determine with the governance team what will constitute success BEFORE launching.

Develop tools to capture the data you need.

A Final Few Questions Is your company strategically ready for a CU? Does it understand what a CU can do in terms of building profitability? Are YOU ready to implement?

Is your company strategically ready for a CU?

Does it understand what a CU can do in terms of building profitability?

Are YOU ready to implement?

Best Practices Among Leading Corporate Universities Strategies Strong commitment by senior management is success factor. Deliberately involve business units in all aspects of the learning process: The business strategy drives the structure of the corporate university. Learning systems extend beyond the concept of a CU to fit the mission, values and culture of the organization. Source: American Productivity & Quality Center

Strategies

Strong commitment by senior management is success factor.

Deliberately involve business units in all aspects of the learning process: The business strategy drives the structure of the corporate university.

Learning systems extend beyond the concept of a CU to fit the mission, values and culture of the organization.

Best Practices Technology Uses Leading CUs do not simply take existing courses and place them online or into e-learning. Business needs drive automation in leading CUs. Leading CUs are pioneers in the use of technology. Source: American Productivity & Quality Center

Technology Uses

Leading CUs do not simply take existing courses and place them online or into e-learning.

Business needs drive automation in leading CUs.

Leading CUs are pioneers in the use of technology.

Best Practices Learning and Structure Not all learning is “delivered”. Integration and dissemination of tacit knowledge is critical. Knowledge (data) management may be as large a function as “teaching”. Move from cost to profit centers Move toward granting certificates and degrees Source: American Productivity & Quality Center

Learning and Structure

Not all learning is “delivered”.

Integration and dissemination of tacit knowledge is critical.

Knowledge (data) management may be as large a function as “teaching”.

Move from cost to profit centers

Move toward granting certificates and degrees

The Agora of Learning Where people, ideas, data, market trends all converge; where people talk and think and plan, where future skills are forged. Global Learning Resources, Inc. Kevin Wheeler 510-659-0179 www.glresources.com [email_address] Thanks for Attending!