Corporate University Scope and Governance Defining the Audience Structuring Roles of The Governing Board Prepared by: Corporate University Xchange Research Services Highly Confidential VERSION 1.0 © Corporate University Xchange 2004 1 September, 2004 Corporate University Organization Structure Overview Building a Model for Success Scope of Corporate University The extent to which a corporate university serves an organization’s entire workforce varies across organizations. One corporate university might include a 20-person staff dedicated exclusively to worldwide executives and not employees across organization business units. Other corporate universities provide learning services enterprise-wide for all employees. Those with broader scope often work in cooperation with business units which supplement core training areas offered by the corporate university. Many corporate universities provide “general” enterprise-wide learning, with business units providing “unique” learning that is specific business needs. A large number of corporate universities begin with a narrow focus on a specific segment of the employee population and expand breadth and influence over time as they build credibility. Leadership development often is cited as the initial focus of the corporate university. Organizations recognize an urgent need to build greater depth within their leadership pool and launch a corporate university to devote time and resources on programs designed to develop the pool of supervisors, managers and executives. The scope of a corporate university is determined by a number of factors: The talent, bench strength, and performance requirements of the current and future business strategy The extent to which the corporate university function is supported and/or promoted by senior executives The source of funds for the corporate university, either through corporate allocation, overhead or charge-backs to business units, or tuition payments by individual learners The consistency of systems and processes for the management of learning and development across the enterprise The extent to which common core curriculum should be made available across the enterprise The nature and number of unique technical and functional skills that must be developed within business units © Corporate University Xchange, Confidential 2 September, 2004 Corporate University Organization Structure Defining the corporate university’s scope drives decisions about where the corporate university function resides in the organization, the level and type of governance activity required, and the conditions for which activities are managed in a centralized or decentralized fashion. Reporting Structure for Corporate University The function or individual within an organization to which the head of the corporate university directly reports indicates the strategic importance the corporate university holds within the organization. The human resources department often has a portfolio that includes at least some of the learning at any organization, regardless of whether it has established a corporate university. Corporate universities often fall within organizational development or report through a chief operating officer. Some corporate universities use dual reporting lines to ensure that both tactical and strategic needs are met. A growing number of corporate universities report to the office of the president or chief executive officer. This direct relationship affirms the value an organization’s leadership attributes to employee learning and development, but is not essential for corporate university success. Linkage to Human Resources The function of the corporate university is to contribute higher levels of performance to the business by helping people develop skills they need to do a better job. Organizations often include financial incentives for learning as part of the performance review process. Companies might recognize teaching and learning as a core value that is measured and that directly affects some percentage of discretionary salary. Annual bonuses can be based in part on a manager and his or direct report’s involvement in corporate university programs. Some corporate universities directly support performance management processes by requiring individual development plans that feed into corporate learning needs analysis. Succession planning also ties into learning efforts in many organizations. For example, succession plans can be one input in a training needs assessment process. Most corporate universities aren’t directly responsible for succession planning, so they use information developed by others. © Corporate University Xchange, Confidential 3 September, 2004 Corporate University Organization Structure Governing Structure While strong visible support from the top is critical to the overall success of a corporate university, direct guidance from business unit heads assures that learning serves business objectives. To this end, an organization must create a governance system in which the top champion and the next level of senior line business managers jointly develop a vision for the corporate university. Governance systems vary considerably, ranging from chairman-led policy boards with line, area, and corporate staff representation, to steering committees drawing representation from labor, management, and employees. Some of the more prominent corporate universities, which exercise broad strategic influence within their companies, have governing boards composed of senior line and corporate staff executives. Some very large multinational corporations also have regional corporate university boards throughout the world. Organizations without a governing board have other ways by which to align the corporate universities’ efforts with the organizations’ respective goals. They involve business managers through business needs analyses that are conducted by corporate university staff members. Large organizations, those with more than 10,000 employees, where diverse interests and perspectives regarding learning compete, nearly always have governing boards to represent the diverse needs and mediate among groups. European companies, which particularly value consensus building among executives, are the most likely of any geographic group to organize corporate university governing boards. Guidelines for Operating a Corporate University Governing Board 1. Board Composition Invite top managers with diverse roles and business backgrounds to serve on the board Invite influential, interested and available leaders who can make a long-term commitment 2. Board Mission and Scope Concentrate on strategic issues only – not implementation or day-to-day operations Define clear roles for each board member like you would for a director of a corporate board a. Board Members Provide a Service i. Provide quality of counsel and advice by virtue of their independence from the learning organization. Consults with and coaches the CLO who relies on the Board for advice and counsel. Board members possess the level of industry experience needed to make optimal choices for resources. Carefully selected board members should contribute to enhancing the corporate university’s general reputation and credibility. b. Board Members Prioritize Resources © Corporate University Xchange, Confidential 4 September, 2004 Corporate University Organization Structure i. Board members understand how to effectively manage the organization relationships. They serve as boundary spanning agents who provide access to valued resources and information, facilitate inter-department commitments, and aid in establishing legitimacy. c. Board Members Administer Controls i. Charged with aggressively monitoring and evaluating CLO actions. Must be able to avoid conflicts likely to arise in attempting to maintain loyalty to the CLO while evaluating his or her actions Have each member sponsor a specific learning program to increase member awareness and ownership Ensure members understand how their involvement will serve their own interests Empower board members to make decisions by establishing a clear decision-making procedure Make members accountable for the corporate university’s success 3. Board Management Train members on their role and the board’s scope Meet quarterly Have a well thought out and scripted agenda for each meeting Lay out an agenda and get feedback pre-meeting Use member time carefully, as if they were high-priced consultants Develop and distribute pre-reading/pre-work to make faceto-face meeting time productive Give members specific tasks and deliverables Communicate early and often by presenting information in clear, concise bits Keep members informed of learning activities and issues facing the corporate university so they can help and serve as ambassadors Provide regular feedback on how your organization compares to others Keep them interested in what happens, or they will quit the board Rather than getting members’ help designing a learning program, have them provide feedback on the overall program Be confident in your plans, but allow them to “own” the plans by making changes. By doing so, you can get their buy-in over the long run. Reward members for a job well done. BOARD PLANNING: Directs the process of planning Staff Provides input to long range goals Joint © Corporate University Xchange, Confidential 5 September, 2004 Corporate University Organization Structure Approves long range goals Board Formulates annual learning objectives Staff Approves annual learning objectives Board Prepares performance reports on achievement of goals and objectives Staff Monitors achievement of goals and objectives Joint BOARD PROGRAMMING: Assesses stakeholder (customers, community) needs Staff Oversees evaluation of learning products, services and programs Board Maintains program records; prepares program Reports Staff Prepares preliminary budget Staff Finalizes and approves budget Board Sees that expenditures are within budget during the Staff Year Approves expenditures outside authorized budget Board PERSONNEL: Directs work of the staff Staff Hires and discharges staff members Staff Approves decision to add staff Board Settles discord among staff Staff ORGANIZATION RELATIONS: Interprets corporate university organization employee communities Board Writes news stories and manages other PR activities Staff Provides organization linkage with other Business unit or department organizations Joint BOARD COMMITTEES: Appoints committee members © Corporate University Xchange, Confidential 6 Board September, 2004 Corporate University Organization Structure Promotes attendance at Board/Committee meetings Joint Recruits new Board members Board Plans agenda for Board meetings Joint Takes minutes at Board meetings Joint Plans and proposes committee organization Joint Prepares exhibits, material and proposals for Board and Committees Staff Follows-up to insure implementation of Board and Committee decisions Staff © Corporate University Xchange, Confidential 7 September, 2004