Overview of Caterpillar University:
Learning Organization Structure, Governance,
Strategic Learning, Metrics and Evaluation
Corporate University Exchange
CLO Exchange Forum
What have I learned today?
Dave Vance,
President
Caterpillar University
September 23, 2004
1
Outline
• Background on Caterpillar
• Origin, mission, structure of Caterpillar
University and learning community
• Key Cat U initiatives
• Enterprise Learning Plan and Division
Learning Plan
• Learning metrics and Evaluation
• Looking ahead
What have I learned today?
2
Caterpillar Inc.
• 72,000 Caterpillar Employees
– 38,000 inside U.S.
– 34,000 outside U.S.
• 246 Caterpillar facilities around the
world
• 90,500 Dealer Employees
– 34,400 inside U.S.
– 56,100 outside U.S.
3
What have I learned today?
Machines Range From…
216 Skid Steer Loader:
Manufactured in Sanford, NC
Operating Capacity: 1,400 lbs.
797 Mining Truck:
Manufactured in Decatur, IL
Operating capacity: 380-ton nominal
payload
What have I learned today?
4
Engines Range from
• 9 horsepower for small machines and
generators
• To 600 horsepower for on-highway trucks,
transit buses, fire trucks
• To 3000 horsepower for the large Caterpillar
equipment
• To turbines with over 18,000
horsepower for oil, gas and
power generation industries
5
What have I learned today?
And More than Big Yellow Machines
• Cat Logistics—one of the world’s largest
contract logistics providers, customers
include Harley Davidson, DaimlerChrysler,
Sprint, and Ford Motor Company
• Cat Financial—manages a portfolio of $18
billion, serves nearly 80,000 customers
• Cat Power Ventures—develops, owns, and
operates power plants
6
What have I learned today?
The Origin of Caterpillar
University
1998
2000
2001
Marketing Distribution Team recommends that
Caterpillar must become a continual learning
organization to succeed
An eight-member Continual Learning Team
makes specific recommendations for continual
learning and creation of Caterpillar University
– Cat University to focus on common learning needs,
culture, leadership, knowledge sharing
– Transcend 25 autonomous business units
– Funding model for ongoing operations not addressed
Economy slowing; recession begins in early
2001
7
What have I learned today?
Caterpillar University
Established January 2001
__________________
Enterprise Learning Vision
To be recognized as one of the best continual learning
organizations in the world.
__________________
Caterpillar University Mission
Improve the performance of Caterpillar employees, dealers,
suppliers and customers.
In a Shared Beliefs Environment
8
What have I learned today?
Global Product Manager
for Learning
Working across the enterprise to ensure the
investment in learning is linked to Caterpillar's
strategy and provides maximum value.
 Enterprise learning strategy
 Development of new learning/redesign or
retirement of existing learning
 Design control for learning
 Enterprise learning budget
 Enterprise metrics and measures
9
What have I learned today?
Learning at Caterpillar
Managing our intellectual
• Knowledge Sharing
capital and development
• E-learning
• Leadership development (coaching, workshops,
facilitation)
• Classroom training
• Competencies
• Career development
• Change management
• Systems support, such as Learning Management
System and Knowledge Network
10
What have I learned today?
Caterpillar University Governance
• Board of Governors, which includes
the CEO and senior executives
- Approve learning budgets and priorities
- Determine policy
• Advisory Board for each college,
which includes senior leaders from
“user” groups
- Members represent different business units
- Geographic and subject matter mix
11
What have I learned today?
Partnership in Developing
Strategic Learning
• Lead Learning Managers, one from
each business unit
- Dual solid line reporting to Cat U and Business Unit
- Monthly teleconferences
• Global Teams
- Lead Learning Managers and Subject-Matter Experts
- Serve as consultants on key initiatives
12
What have I learned today?
Role of the Cat U Managers
• Meet common, global learning needs
• Meet local and regional needs
• Ensure customer satisfaction with
Cat U services
• Enable learning partnership
- Work with lead learning managers
- Work with advisory boards
13
What have I learned today?
Corporate
Governance to
Ensure Alignment
Lead Learning Managers at Business
Units
Immediately established dual solid line
reporting relationship with a Lead Learning
Manager at each of 26 Business Units
Business
Unit
HR Mgr
Caterpillar
University
Manager
Learning Manager
14
What have I learned today?
How Cat U Delivers Learning
E-learning,
Knowledge Sharing,
Leadership development
Enterprise learning
programs for
classroom delivery
OR
Business Units
Learning Managers in
Business Units
15
What have I learned today?
VP – Human Services Division
S. C. Banwart
University President
David L. Vance
Adm. Asst.
Mary Jenkins
Dean
Dean
Chris Arvin
Ruud Kronenburg
Leadership
General
Studies
What
Marketing &
Distribution
Product
Support
Dean
Ben Tien
Business
Business
Processes
Dean
Dean
Sheryl Tipton
Alice Barbour
Technology
•
•
•
•
6 Sigma
Manufacturing
Engineering
IT
Safety
Manager
Manager
Performance Improvement
Fred Goh
Tech Enabled Lrng.
Jayne Henneberg
Competencies
Career Development
Regional Center Coordination
Vendor Management
Master Scheduling
Communication
haveMetrics
I learned today?
E-learning
Knowledge Sharing
CLMS
Performance Support/Usability
16
Key Strategic Initiatives
• College of Leadership
- Caterpillar leadership programs
• Colleges of Business and Business
Processes
- Performance management curriculum
- Change management
- Business Acumen
17
What have I learned today?
Key Strategic Initiatives
• College of Marketing and Distribution
- Sales effectiveness and certification program for dealers
• College of Technology
-
Engineering curriculum and guides
Safety curriculum
Ergonomics e-learning
Assembly e-learning
- IT curricula
18
What have I learned today?
Key Strategic Initiatives
• College of 6 Sigma
- Manage 6 Sigma training plan
- Develop internal Cat MBBs
- Train dealers and suppliers
• Performance Improvement
- Enterprise and Division Learning Plans
- Career Development
- Competencies
- Learning processes
19
What have I learned today?
Key Strategic Initiatives
• Technology-Enabled Learning
- Caterpillar Learning Management System
- E-Learning More 600 e-learning courses, 175 of which are
available in multiple languages
- Knowledge Network
- Performance Support and Usability
20
What have I learned today?
Division Learning Plan
• Needs assessment initiated at the division
level
- Lead learning managers identified learning needs within
their respective divisions through discussions with Vice
Presidents and Directors/Managers
- Learning needs linked to Division and Corporate Critical
Success Factors
- Resource requirements identified to meet needs
- Division business leaders consulted in setting priorities
• Vice President approves their Division
Learning Plan which is the business plan for
learning that address both strategic and
operational learning.
21
What have I learned today?
Enterprise Learning Plan
•
Enterprise-wide learning strategy developed based on the
25 divisional learning plans and Senior Management/Board
of Governors input
•
15 high priority, global learning initiatives identified and
organized by Cat U college or area
•
Each learning initiative linked to one or more of Caterpillar’s
business CSFs
•
The Board of Governors reviewed and approved the
learning strategy and investment requirements
•
Included discussion of metrics and ROI
22
What have I learned today?
Tie Learning to Business Goals
23
What have I learned today?
Metrics
• Enterprise Learning Plan translated into prioritized
goals with volume and level 1-3 targets
• Progress against plan measured every month in vital
factor meeting
• Year-end forecast updated monthly; focus on
deviations from plan.
24
What have I learned today?
Evaluation
• Started in 2002 with need to show value proposition
for learning
• 162 page Business of Learning was our first effort
• Nine detailed ROI studies conducted to date
-Dollar benefits, costs, net benefits, ROI
-Tried to improve in productivity, quality or reduction in cost
• Three state approach to ROI
-Estimate ROI at development, forecast after pilot, complete ROI at close
-Learn, modify, improve
25
What have I learned today?
Monthly Metrics Review
Process
Owner
Current Year
Business Plan
ROI Forecasts
Learning
Initiatives
YTD
Actuals
© Caterpillar Inc.
Cumulative
Metric
Current Year-End Forecast
Caterpillar University
THE JOURNEY
True Continual Learning Organization
PROFIT CONTRIBUTION FROM LEARNING
Very high level of knowledge creation and sharing, innovation,
creativity, engagement and risk-taking
Self-perpetuating learning culture
Spending on learning not reduced disproportionately in downturn
Learning embedded in all tactical and strategic plans
Establish enterprise-wide learning strategies
Systems thinking, change management used
extensively throughout enterprise
2003-2004
Formally tie learning to business goals
Mistakes viewed as opportunities to learn
Begin to tie learning to business goals
Begin to develop metrics and ROIs
Identify and meet common global
learning needs with courses
Learning viewed as
an indispensable
part of culture
Needs-assessments indicate
where learning is needed to
achieve business goals
Leaders champion learning
Commit to become a continual learning organization
Focus on knowledge sharing and e-learning
Focus on leadership
6 Sigma initiated
Provide existing training at lower cost
Cat U Established
2000—Desire for continuous improvement and continual learning
Training Focus
Courses
Sharing
Caterpillar University 2002
© Caterpillar Inc.
Extend learning to
entire value chain
TIME
2001-2002
Learning
Learning Focus
Caterpillar: Confidential Green
Keys to Our Success
• Burning platform established by original
study team
• Excellent foundation provided by the
Continual Learning Team
• Partnership with our independent business
units
-
Lead Learning manager concept
Dual-solid line reporting of business unit learning manager to Cat U
• A great team of dedicated individuals
committed to transforming Caterpillar
• Knowledgeable resources
-
Consultant for ROI
• Upper management support
28
What have I learned today?
Keys to Our Success (contd.)
• “Journey” chart to convey vision
• Extensive use of volume metrics, Level 1
evaluations
• Focus on strategic learning
• Business of Learning
• Enterprise Learning Plan
29
What have I learned today?
Lessons Learned
• On-going funding model should have been
established up front
• Business of Learning was an excellent
exercise
- We learned a lot in writing it
- The discipline, alone, was worth the effort
- It established the basis for our ongoing metrics and
evaluation work
- Established credibility with many
- Excited the learning community and sponsors
- But did not sway the “die hard” skeptics
30
What have I learned today?
Desired State
1. Right balance between strategic,
operational and personal learning
2. Greater appreciation for bottom line benefit
of learning
3. Metrics and evaluation embedded in all
learning
4. Process owners who plan for and integrate
learning from the beginning and who can
work to ensure sustainability of improved
performance
31
What have I learned today?