Architects of Human Capital Strategies At a Glance THE USES AND MISUSES OF THE TERM CORPORATE UNIVERSITY An attempt to categorize and define today’s corporate university By Kevin Wheeler No function, department, or organization can successfully implement change or achieve excellence unless its longterm purpose is clearly defined. This mission should be the foundation upon which all strategic decisions are made and must precede the decision to create a corporate university. I have been in so many companies where the corporate university was not clearly chartered and where its energy was dissipated in many directions. Very often no one can tell me how the corporate university differs from the training and development or the career development functions. Having focus and having goals are prerequisites to success. As corporate universities have evolved over the past several years, successful ones have adopted a primary strategic focus loosely as described below. While every corporate university may have elements of more than one of these directions, those who are most successful are easy to identify because of their clear reason for existing. organization did. These universities are usually characterized by the “catalog”. This is most likely a hefty volume produced once or twice a year that lists all the courses that the university has decided are needed for and wanted by employees. More often today it is a web listing or even a portal that provides access to a potpourri of e-learning programs. There is no indication as to how these have relevance to any specific business needs, although it is hard to say the courses aren’t useful. After all, who couldn’t benefit from better presentation skills or a more complete understanding of finance? But are these courses really going to do anything to make the company more profitable? Or more strategic? Or more innovative? Or better able to face competition? Or more understanding of the marketplace? I doubt it. This is the type of renaming that we should all try to avoid creating or perpetuating because it distorts and dilutes what the corporate university, done well, can be and do for an organization. Let’s look at some of the ways that a corporate university can differ from this tactical and unfocused approach. Initiative-Driven In Name Only - What NOT To Be Often the corporate university is the training department in sheep’s clothing — it just changes its name but still does everything that the training One type of corporate university is recognized because its primary public activity is driving a corporatewide initiative or business plan or project. This is often an initiative that the CEO is passionate about and which is being cascaded throughout the company. © 2003 Global Learning Resources, Inc. All rights reserved. Reproduction prohibited. Global Learning Resources, Inc. www.glresources.com 510.659.0179 Architects of Human Capital Strategies THE USES AND MISUSES OF THE TERM CORPORATE UNIVERSITY This is an appropriate and excellent model when there are ‘great things afoot’. Motorola University very successfully drove the quality initiative throughout Motorola. At the same time, Motorola U was also involved in strategic planning and in helping the company cope with expansion into China and other parts of the world. It pioneered bringing focus to one or two issues and putting a structure in place to facilitate delivering the content, coaching the implementation and building understanding and acceptance of the issues with management and the employees. General Electric’s recent focus on Six-Sigma training for its management team is another example of how a corporate university can drive a program that has far-reaching consequences and strategic importance. Examples of initiatives include such things as globalization, productivity, process improvement, and empowerment. This turns out to be one of the most important of the emerging definitions of a corporate university. Change-Management Focused Another form of corporate university concentrates its efforts on driving change or on facilitating a complete transformation process for a company. This is often a transitory role as a company embarks on a new strategy or is in the process of merger or acquisition. The university may then go through a metamorphosis from this type to being an initiativedriven or skill provider type. National Semiconductor used National Semiconductor University to drive a Leading Change program through the company which helped lead to a financial turn around in the mid-nineties. Today, the university is more focused on leadership and skill development, but retains its ability to respond whenever needed to bringing about change. This focus on helping managers and employees understand and deal with vast change, internally or in the marketplace or both, is a second definition of a corporate university. Leadership Development-Driven The prototype for this strategic focus is General Electric’s Management Development Institute at Crotonville, New York. This institute has focused on developing managers and leaders for General Electric for decades. It was almost exclusively the tool of the former CEO, Jack Welch, for orienting and assimilating new managers to the company. It has also been the tool for driving change and initiatives. Programs such as Workout and the Change Acceleration Process are all products of Crotonville. Corporate universities with CEO-level support and a single primary focus on leadership development are usually very successful and produce great internal management strength. This third definition of a corporate university is especially powerful when combined when one of the other strategies. © 2003 Global Learning Resources, Inc. All rights reserved. Reproduction prohibited. Global Learning Resources, Inc. www.glresources.com 510.659.0179 Architects of Human Capital Strategies THE USES AND MISUSES OF THE TERM CORPORATE UNIVERSITY Business Development Driven A few universities are chartered to help develop business opportunities or to guide an exploration process to what is possible. When an organization decides to embark on a particular business strategy, for example opening several international offices, the corporate university can prepare employees for their role; help educate about the new country, do research on competition and on recruiting and development and generally support the process in a way that adds a great deal of value. Some companies make this the function of the marketing department, but by putting it into a corporate university that also does other things (e.g. leadership development); they get a more synergistic result. Of course, this requires people in the university that are very different form the ones we often find now working as trainers. Customer/Supplier Relationship Management Orientation A strategic orientation that is closely allied to the business development orientation described above focuses on educating and managing the customer and supplier relationship. Universities engaged in this activity focus on educating employees in negotiating skills and in relationship management. They may offer skills training to suppliers and even set or educate to standards. This is a practice common among manufacturing companies such as Ford or Motorola. These two practices above for m a fourth definition of a modern corporate university that is oriented toward ensuring the success of a corporate strategy through education, research and standard setting. Competency-based, Career Development Focus The final strategic orientation that I have identified is characterized by the organization that focuses on individual skill development and on managing the process of career development in a company. This may also include assisting in developing a performance management system and working through the career development activities and aggressive education strategies to help retention. All corporate universities need to provide this (or make sure it is being done somewhere and somehow), as it is the underpinning of all the other orientations. Final Definition of a Modern Corporate University So in a broad final definition, a corporate university is 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, by conducting wide-ranging research, by facilitating the delivery of content, and by leading the effort to build a superior leadership team. © 2003 Global Learning Resources, Inc. All rights reserved. Reproduction prohibited. Global Learning Resources, Inc. www.glresources.com 510.659.0179 Architects of Human Capital Strategies THE USES AND MISUSES OF THE TERM CORPORATE UNIVERSITY About the Author Kevin Wheeler (kwheeler@glresources.com), the President and Founder of Global Learning Resources, Inc., is a globally-known speaker, author, columnist, and consultant in human capital acquisition and development. His extensive career, global client base, and research affiliations make GLR a leading provider of both strategy and process. GLR focuses on assisting firms architect human capital strategies. To learn more or get started, contact Global Learning Resources at (510) 659-0179 or email info@glresources.com. Global Learning Resources, Inc. provides advice, analysis, strategic planning assistance, custom research and benchmarking, workshops, and on-going consultation focused around human capital including corporate education, staffing and retention. © 2003 Global Learning Resources, Inc. All rights reserved. Reproduction prohibited. Global Learning Resources, Inc. www.glresources.com 510.659.0179