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  Developing a Corporate University Strategy  

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By Roberta L. Westwood and Martin Stewart

  In recent years, there has been a lot of buzz about "corporate universities", both in corporate training circles and in the business community at large. Hundreds of leading organizations worldwide have implemented corporate universities, and today it seems that everyone wants to add a "U" to the organization’s lingo.

For organizations on the outside looking in, and perhaps considering stepping into the fray, the big question to be answered is this: "Is a U for you?" This query opens the door to more lingering questions, such as: Just what is a corporate university anyways? Why might an organization want one? What are the steps to successfully creating a corporate university? What lessons can be learned from organizations that have been there?

 
 

Defining the CU Concept

Defining the corporate university (CU) concept starts best with defining what a corporate university is not.

A corporate university is not simply a ‘snazzy logo’ emblazoned on t-shirts and espoused in the company newsletter. And a corporate university is not just a new online catalogue or even new online courses.

The corporate university concept goes far beyond an ‘empty label’ slapped onto a tired training department to breathe new life into it.

Best practice corporate universities are comprehensive learning infrastructures. The best are an extension of the organization’s learning culture and what Peter Senge coined the ‘learning organization’. i

Corporate University Definitions

"A function or department that is strategically oriented toward integrating the development of people as individuals with their performance as teams and ultimately as an entire organization by linking with suppliers, conducting wide-ranging research, by facilitating the delivery of content, and by leading the effort to build a superior leadership team."

Kevin Wheeler, GLR Resources, "The Uses and Misuses of the Term "Corporate University" ii

"The strategic umbrella for developing and educating employees, customers, and suppliers in order to meet an organization’s business strategies."

Jeanne C. Meister, "Corporate Universities: Lessons in Building a World-Class Work Force" iii

 
  Where traditional approaches to training tended to be reactionary, driven by tactical delivery of technical skills in bricks and mortar classrooms – and where training was seen as an event – the learning organization takes a more proactive approach where all learning is aligned with the corporate business strategy, is focussed on developing competencies, and is delivered using a blended model of both face-to-face and online learning technologies. Learning is embraced at all levels of the organization and is viewed as a continuous process.
Given this context, the corporate university is not only a powerful metaphor, but provides a flexible framework within which to shape and implement a learning strategy that reflects the heart of the organization’s learning culture.

Benefits of a Corporate University

The most compelling reason to consider a corporate university is to equip the organization to meet its strategic objectives. As business continues to evolve and become more global, as technology changes the face of the economy, as competition increases and the demand for quality workers presses on, and especially as organizations become more knowledge based, a learning culture becomes a key business strategy.

Only when the required competencies have been identified, and a comprehensive strategy has been developed to populate the organization with bright and energetic minds that can move it forward, can the organization hope to accomplish its vision. Along with top management commitment, a corporate university is at the heart of creating such a learning culture.

An equal driver is recruitment and retention of talent. Any organization operating in a highly competitive labor market would do well to consider the observation made at Kendle International, a research organization in pharmaceuticals and biotechnology, from which Kendle College was born. "Associates were telling us loud and clear in exit interviews that they were leaving to join companies that would support them by providing courses and tuition reimbursement," says Amy Shannon, director of corporate training and development. iv This example points to how a corporate university can become a cornerstone in an organization’s recruitment and retention strategy. Once in place, learning opportunities through the corporate university should be shamelessly promoted throughout all aspects of recruitment, from newspaper and website advertising to candidate interviews.

Laying the Foundation

The essential elements of a corporate university strategy generally fall under twelve main areas, and are often grouped into four main phases:

 
 
 
FOUR PHASES
 
  Phase 1: Exploration
  • Exploring & Benchmarking
  Phase 2: Vision
  • Governing Board
  • Mandate
  Phase 3: Business Case & Strategy
  • Business Case
  • Organizational Learning Assessment
  • Learning Services & Delivery Plan
  • e-Learning & Technology Strategy
  • Strategic Partnerships
  • Investment, ROI & Funding
  Phase 4: Implementation
  • Project Management & People
  • Change & Transition
  • Branding & Launch
 
  Using this flexible framework, a foundation can effectively be laid for the successful design and implementation of a corporate university. The term ‘framework’ is used intentionally, as working through the elements may not necessarily take place in a linear fashion.

Phase 1 – Exploration

Exploration & Benchmarking

A powerful brick in the foundation of a corporate university is an exploratory kick-off meeting with the CEO and senior management team. While many of these stakeholders may have general awareness of corporate universities, they generally will not have had the opportunity to explore the concept in any depth. In order to make an intelligent decision as to whether to proceed with a corporate university, the executive group needs an opportunity to gain a greater understanding of the concept, and to identify how a corporate university fits in with the overall business strategy.

In the exploratory meeting, the following outcomes should be accomplished:

  • To identify the organization’s learning challenges and opportunities
  • To develop a shared understanding of what a corporate university is
  • To identify benefits to the accomplishment of strategic objectives, both short- and long-term
  • To develop a shared understanding of the process to develop a corporate university strategy
  • To begin to identify the critical factors required for successful development and implementation

The corporate university strategy will not be developed in the exploratory meeting, but the foundation will begin to be laid. The purpose of the exploratory meeting is to make a ‘go’ or ‘no go’ decision to continue down the corporate university path and to begin to develop the strategy. Depending upon the complexity and number of issues raised, the exploratory phase may span a number of days or meetings. Use of skilled facilitators with expertise in the field of corporate universities is recommended to accomplish the outcomes.

Benchmarking is key to this phase, and may be woven into exploratory meetings to help stakeholders assess the value of a corporate university. This includes best practice case studies, competitor research, and benchmarking against organizations with a similar business structure.

Phase 2 – Vision

Governing Board

One of the success factors identified at the exploratory meeting is the make-up of the steering committee that will act as a governing board for the corporate university. The importance of this group cannot be emphasized enough. While establishment of a long-term vision for the corporate university is essential, it is equally important that the university continually reinvent itself in response to the changing needs of the business. The governing board is key to both of these roles. The corporate university’s governing board is made up of the CEO, Chief Learning Officer and a select group of senior champions. Initially, this group is charged with development of the corporate university strategy and guiding the process through to implementation.

On an ongoing basis, the role shifts to ensuring the university remains strategic and is positioned to meet future business needs. Motorola U for example, perhaps the most widely studied corporate university in the world, went through a dramatic reengineering when, in the late 1990’s, both the company and corporate university had slipped. Part of the evolution for Motorola was the eventual transitioning of all training and development, enterprise wide, under Motorola U umbrella; previously, more than half of the training in the organization was handled by business units. v

Mandate

One can think of the CU mandate much like an organizational values statement which guides employee conduct and acts as a guide for decision-making; a corporate university’s mandate provides vision and guides learning decisions in the organization. In addition to describing the learning philosophy and parameters for the corporate university, the mandate captures the spirit of the learning culture with a compelling statement of purpose. This will later provide the basis for branding and communication.

Phase 3 – Business Case & Strategy

Business Case

With the vision developed, or in the final process of gelling conceptually, the business case for the corporate university can begin to be developed.

As the scope of a corporate university is broad, and a lot of groundwork is required to thoroughly assess needs and plan the most appropriate learning approaches, the business case may be initially drafted and then evolve as other aspects of Phase 3 – Business Case & Strategy are developed.

Organizational Learning Assessment

Prior to beginning to sketch out a repertoire of learning services to be offered by the corporate university, a detailed understanding of both organizational and learner needs is required.

Organizational competencies first need to be identified, in context of the organizational vision, strategic plan and business plan. An effective competency model is aligned with Human Resource (HR) practices, such as performance management systems. Competencies common to the overall organization are generally identified, as well as specific competencies pertaining to main employee groups (e.g. management, front-line staff, etc.).

Once competencies have been developed, an assessment to determine current reality is performed. This is often referred to as a training needs analysis. The purpose is to assess where the organization sits today in terms of the competencies required. A variety of processes may be used to assess current levels of competence, identify gaps and set priorities. A review of existing training offerings should also be conducted.

Learning Services & Delivery Plan

A learning services and delivery plan outlines all of the learning services – such as courses and learning activities – to be offered by the corporate university, and how they will be delivered.

Sketching out of the learning services is based on the information gathered in the organizational learning assessment. This essentially provides a ‘snapshot blueprint’ of all training courses and learning activities that are envisioned for the organization, including support and reinforcement tools. In addition to identifying the ‘course topics’, the summary should include identification of what is existing, what needs to be developed or sourced, and both short- and long-term priorities. Plans for how learning will be measured must also be identified as learning services are planned.

Very few organizations can afford to overlook the potential offered by e-learning delivery technologies. Conversely, virtually no organizations have moved to entirely online delivery, and of those that have, a move back to some face-to-face delivery is taking place. A blended learning approach taken by most organizations is being proven most effective. The delivery plan of the corporate university strategy outlines, at least in a preliminary concept, which learning services are to be delivered face-to-face, which online, and which through a combination approach.

A pivotal step in development of the learning services and delivery plan is the decision on scope. The Motorola experience cited earlier is an example of the general sentiment in the corporate university community, that one overall umbrella encompassing all corporate training and development, is the optimum approach to a corporate university.

The intent of the ‘one umbrella’ approach is to ensure a coordinated effort, one in which all training in the organization is in service of the business needs, where efficiencies are gained, and duplication is eliminated. Yet this approach does not necessarily imply that all training need be done in-house; very often the most effective means to deliver an aspect of skills training is through outsourcing.

At this stage, the need for any bricks and mortar facilities are identified.

e-Learning & Technology Strategy

An effective e-learning and technology strategy will take the long view and must be built on a strong business case. It will range from an organizational readiness ‘reality check’ and the overall e-learning vision, to technology issues and ‘build or buy’ strategies.

Organizational readiness is essential to the success of any intervention, and e-learning is no exception. An e-learning readiness assessment should consider: the degree of management support; whether there are enough potential users to justify the cost, whether the target audience can use or learn to use computers, whether the learners will accept online learning, and whether the proposed e-learning solutions will provide a method of instruction that is easier, faster, cheaper, safer or more efficient than the alternative. vi

Central to creating the e-learning vision is establishing how narrow or broad the organization’s online learning approach will be – both initially and long-term. As well, fundamental questions about instructional design philosophies and anticipated learning technologies must be answered. The spectrum of e-learning spans from instructor led online learning models to self-directed models. A combination approach is commonly employed, and is often blended with face-to-face instruction. The organization must consider the unique needs of the learners and competencies that are being developed in order to determine the right approach.

An e-learning vision will consider all potential aspects of the new learning technologies available, including: online courses, use of synchronous and asynchronous tools, knowledge management, collaboration tools, electronic performance support systems.

How the e-learning technology strategy fits into the overall technology strategy for the organization must be considered. A wide range of issues need to be considered – including infrastructure, bandwidth, delivery methods, authoring tools, internal vs. external hosting, Learning Management System and a vendor selection process – and require extensive research and planning.

As well, ‘build or buy’ strategies must be developed. Most e-learning strategies include a combination of custom-designed courses – either built internally or developed using external resources – and content bought ‘off-the-shelf’ or accessed via leased content subscription models.

To be successful, all aspects of the e-learning and technology strategy need to be closely aligned with the corporate university strategy, so as to effectively address environmental factors and consider the transition from a change management perspective.

Strategic Partnerships

Collaboration through strategic partnerships is key to an effective corporate university.

One of the most common forms of partnership is with traditional universities and educational institutions, many of which are offering specialized courses and services to the corporate community. In addition to adding quality and credibility, these partnerships pave the way for employees to earn credit for the time they spend learning through their organization’s corporate university. Accreditation alone is a powerful recruitment and retention benefit.

Partnerships can cross the usual boundaries. MGM Grand, for example, purchased American Airlines’ training and adapted it to their unique culture. A particularly innovative example of collaboration is LearnShare, a consortium created by 13 Fortune 500 companies (including 3M, General Motors, John Deere, Northwest Airlines, and Chevron). The consortium came together to share research, best practices and design of e-learning services. Today the consortium welcomes sustaining subscribers from non-competing industries.

Industry associations offer potential for collaboration through industry-specific training programs. Marriott, for example, partners with the American Hotel and Motel Association. Unions also make great potential partners for jointly creating programs to develop workers with needed skills.

Investment, ROI & Funding

What is your e-learning strategy going to cost? The corporate university business case needs to identify capital investment in new technologies, and the investment required to implement all aspects of the university. Beyond just initial start-up costs, the projected cost for staggered roll-out phases to follow, and ongoing costs. Budget related issues such as cost-recovery and departmental charge backs should also be considered.

Calculation of return on investment (ROI) is an essential element of the corporate university business case, as is a cost-benefit analysis – overall and for the various aspects of the CU.

Funding may be available from government sources, the potential for which should be explored during this phase as well.

Phase 4 – Implementation

Project Management & People

A significant team effort is required to bring the corporate university from concept into reality.

Project management during development of the corporate university is a large consideration, and will be instrumental to effectively implementing the corporate university strategy. In addition to the need for project management skills for the overall CU development and implementation, major learning interventions will require project teams. A single e-learning course may involve a project manager, subject matter expert, instructional designers, programmers, designers and more.

A Chief Learning Officer may be one of the first individuals to be identified on the road to a corporate university, but the broader question of what additional expertise may be needed is central to identifying the people resources required to develop, implement and sustain the corporate university effort. If a large part of the strategy includes e-learning, and this is a new arena for the organization, specialized skills will be needed. While existing internal resources may develop online competencies over time, project teams will need experts experienced with online instructional design, most likely external contractors.

Experienced internal trainers may be able to shift some or all of their energies to become actively involved in developing the corporate university, and may fulfill roles in competency development, needs assessment, content development, design of face-to-face courses, vendor sourcing and project management. For the instructional design of customized online offerings, these individuals can work alongside experienced online designers to evolve their skills. These experienced trainers are well-positioned to learn new skills to effectively transition to supporting learners in instructor-led online learning courses.

Change & Transition

The impact of e-learning on current instructors is just one example of the magnitude of change that the shift to a corporate university will create in an organization. What will the impact of the corporate university be on the organization – the way people work, the way managers lead and coach, how employees carry out their responsibilities?

 
 

The CU will – and should – impact the way everyone thinks about learning, from the executive to the front line.

At the heart of the CU mandate and vision is a whole new learning philosophy, and consideration must be given to how this new learning culture will be fostered in the organization.

As a corporate university is more than just another training intervention – in that it will ultimately change the very paradigm of organizational learning – its impact on the organization needs to be carefully considered.

The job calls for Human Resources professionals with skills in change management. In order to plan proactively for the transitions that will take place, involvement of this perspective early on during strategy development is advised.

Transitioning learning online is more complex than most people realize. Whether it is the level of concentration created by the classroom trainer, a setting away from the workplace, or practicalities such as ‘no cell phone’ rules, most organizations have mastered the art of creating a conducive learning environment in the classroom.

The Learner in e-Learning

"Too often we are so enamoured with the opportunities that technology offers that we neglect the climate in which it will be implemented. To leverage the potential of e-learning technology for sustained, beneficial change, a sound business and people-centered strategy is essential."

Marc J. Rosenberg, "e-Learning: Strategies for Delivering Knowledge in the Digital Age" vii

"While the organization spends quite a bit of time and money designing ideal classroom environments, e-learning environmental factors have been largely ignored," says Elliott Masie, a pioneer in the e-learning field. "The assumption is that the worker will make the time, space and concentration. This is a dangerous assumption." Furthermore, studies at The MASIE Center indicate that of employees participating in e-learning in their workplace, 53% prefer to learn at a location other than their desk. As to when, roughly half prefer the learning event during working hours, while the other half prefer to study outside of work hours, including lunch-time and after work. It is worth noting that only 2% want to take e-learning on their day off.

Elliott Masie, The MASIE Center viii

 
 

When learning is online, however, when and where do we expect employees to learn? What will co-workers’ perceptions be when an employee is online learning? Are they ‘working’? Will their supervisor provide them with adequate time for learning? Will it be considered acceptable practice to forward incoming calls to voice mail, as they would do if they were attending classroom training? Is it OK to interrupt the learner to ask a question? Do we expect them to drop what they are doing if they are needed for an impromptu meeting?

Well before implementing their first e-learning solution, organizations are well advised to carefully consider environmental factors. An e-learning strategy may include development of non-distracting learning spaces, permissions to study at home, supervisor coaching, well thought out launch strategies and regular assessment of feedback from learners themselves.

Branding & Launch

The compelling statement of purpose developed as part of the mandate provides the foundation for branding the CU. With clarity on the message, and the cultural learning message that is to be communicated through the CU brand, the marketing experts can get to work on creating a dynamic image to represent the corporate university. This process generally takes a number of iterations – and may even result in a name change from the original concept – but the outcome is a powerful message that is communicated through the CU logo.

Once developed, the ‘look and feel’ of the corporate university can be translated into communication tools. It is a good idea to start this process early, so that the image can be incorporated into templates for online courses as they begin to be developed. Other applications include course catalogues, online portals, certificates and logo wear, and launch materials.

Launching the CU itself is one of the most powerful mechanisms for communicating the new learning culture to the organization at large. Launching the corporate university at a corporate conference or other major company event is perhaps the best means. If employees are scattered geographically, arrange for a web-cast hook-up, or a regional roll-out through all divisions. Regardless of the approach, the active and passionate involvement of the CEO and executive team is essential.

To get the most mileage out of the launch, holding back some element of surprise, such as the official unveiling of the mandate and logo, can build energy and interest in the organization. If college or university credits are part of the organization’s CU, keeping this under wraps until the university is launched can be a dynamic way to demonstrate the organization’s commitment to employee learning. Better yet, if a way can be found to help an employee gather and apply for these credits prior to the launch, this creates excitement through awarding the first certificate publicly.

After the launch, it is equally important to follow-up with relevant and timely communications on an ongoing basis, especially as new offerings are rolled out, and continuous improvements made.

Summary

Organizations embarking on this journey are cautioned to be both thorough and patient. The whole process to launch a corporate university may take 18-24 months, or more, even if not a single brick is laid. Lessons learned from organizations which have traveled the CU route have demonstrated that attempting to short-cut the process will only bring problems down the road, or may prevent the corporate university from effectively fulfilling its mandate.

What this requires of the CU champion is a willingness to explore all the issues that will allow for a corporate university to become truly embedded in the organizational culture. As answering these questions and building buy-in requires the involvement of a range of stakeholders, and careful alignment with the organizational vision, it’s a process that takes time. This is coupled with the champion’s equally important role of maintaining the passion needed to continue driving the CU concept forward.

It’s not a task for the faint of heart. But with patience and vision, through creation of a corporate university one can leave a powerful legacy for both the organization and the people it touches.

 

 
 

With thanks to the following sources:
i. "The Fifth Discipline: The Art and Practice of Learning Organizations", Peter M. Senge, Currency/Doubleday, 1994
ii. "The Uses and Misuses of the Term "Corporate University", Kevin Wheeler, GLR Resources
iii. "Corporate Universities: Lessons in Building a World-Class Work Force", Jeanne C. Meister, McGraw-Hill, 1998
iv. "Front Lines: Corporate Universities Add Value by Helping Recruit, Retain Talent", Lynn E. Densford, The New Corporate University Review, March/April 1999
v. "Motorola University: The Next 20 Years", Lynn E. Densford, The New Corporate University Review, January/February 1999
vi. "Organizational Readiness Assessment", by Brandon Hall
vii. "e-Learning: Strategies for Delivering Knowledge in the Digital Age", by Marc J. Rosenberg, McGraw-Hill, 2001
vii. "Learning at Our Busy Desks", by Elliott Masie, Learning Decisions, The MASIE Center, May 2000

 
 

 

 
 

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Article copyright Roberta L. Westwood and Martin Stewart. Roberta Westwood is President of Westwood Dynamics Learning & Development (www.westwood-dynamics.com). Martin Stewart is founder and Director of Sales for MGI International (www.mgi-intl.com).

You are welcome to print a copy of this article for you own reference, forward the link to others or put a link on your website. For all other uses, please contact Roberta at: robertaw@westwood-dynamics.com

 


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