Leadership Development

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Leadership Development Corporate - Higher
Education Partnerships

• Sue Todd
• Alan Todd
• January 11, 2008

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CorpU At-A-Glance
Striving to Be the Gold Standard in research,
advisory services and benchmarking for corporate
learning strategy, leadership development
practices and business performance improvement.

• World-leading authority on corporate universities
  for 10 years
• Single most trusted source for best practices and
  advice on corporate education
• Host of industrys signature awards Program
• 43,000 subscribers to CorpU Journal and CorpU
  Weekly
• Strategic Partnerships with Fortune Wharton
• Industrys first-ever site to showcase videos of
  best practices

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Who We Work With
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Annual Benchmarking Study

• Provides information on benchmarks for 200
  corporate universities
• Part of a series that enables us to spot trends
  and develop hypotheses about what works
• Additional data available to compare particular
  companies

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The learning leader at ABC, Inc. has a background
in Organizational Effectiveness which differs
significantly from Experts and the rest of the
Manufacturing Industry. This could point to a
need for development at the CLO level if other
survey results show significant weaknesses in
comparison with Experts and the industry.
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Demand Drivers for Improved Training
I N F O R M A T I O N T E C H N O LO G Y
S I X S I G M A
F I N A N C E
S A L E S
L E A D E R S H I P
New Competitors
Changing Labor Conditions
Increasing Commoditization
External
Weak Leadership Pipeline
Reorganizing Around Core Processes
Transformation Through Technologies
Organizational
Cross-functional Collaboration
New Sales Landscape
Cost Pressures
Unit / Functional
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Discovering The Value of Learning By Industry
Pharmaceutical
Manufacturing
Financial Services
For Survival
Awakening
Fast Followers
Eager Adopters
Pushed Ahead
Professional Services
Health Care
Retail
Information Technology
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What is a Corporate University?

• A corporate university is an organization created
  to manage learning and development as a strategic
  investment focused on driving measurable
  performance improvement in key business areas.

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Corporate Learning and Development Structure
Center ofExcellence Enterprise Strategy,
Governance Funding

Decentralized Learning Product Management Voice
of the Customer, Functional/Technical Needs,
Learning Delivery, Localization
Shared Service Center Infrastructure Common
Technology, Standards, Process
Corporate Initiatives Work Process, Business
Strategy, ERP, Customers
Corporate Citizenship Our Fundamentals Mission,
Culture, Values, History
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Regions Served by Corporate Universities
Estimated 2000 CUs in US and 100s More In Canada
Eastern Europe 18
Western Europe 41
USA Canada 89
Central Southern Asia 19
East Asia 20
Middle East North Africa 13
Latin American the Caribbean 25
Sub-Saharan Africa 7
Australia New Zealand 18
N165
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Yesterday Vs. Today
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Like a Business for the Business
Governing Body
Board of Directors
CLO / Corp University President
Company President and CEO
CU Functions
Corporate Functions
Performance Consulting
RD
Solution Design
Finance
Solution Development
Engineering
Sourcing
Manufacturing
Deans Advisory Councils
Voice of Customer
Product Management
RD
Product Marketing
Manufacturing
Sales and Marketing
Purchasing
Delivery Network
Regional LD
Distributors
EMEA
Retailers
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Portfolio ManagementManaging Learning Investments
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Strong Commitment to Leadership

• UBS named Europes Top Company for Leaders in a
  survey by Hewitt Associates 2005
• From over 100 companies headquartered in Europe
  40 were short listed and carefully examined UBS
  is in 1st place.

• Criteria
• CEO and Board of Directors show clear leadership
• Clear focus on developing top talent
• Existence of multiple specific leadership
  programs
• Financial results mirror excellent leadership
  culture.

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Learning Delivery Modes
Video and Audio on Demand
Web-Based Training
Virtual Hands-On Lab
Virtual Live Classroom
Live Video Stream

• Self-paced learning
• Instructor-led training

• Online mentors
• Online support

CD-Rom
Interactive Simulation
Reference Materials
Assessments
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PEC Value. . .Key Highlights

• For every 1 Cisco spent on PEC in FY03, the
  company received a range of 13-16 in value
• Cisco avoided costs of 74 million in FY04 (40
  million in FY03 and 25 million in FY02)
• The value of time saved by PEC users in selling,
  supporting, and/or servicing Cisco products due
  to PEC is estimated at 66/million/yr

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Intel Wanted to Change the Way People Learn From
this
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To This
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Getting Results

• Farmers Insurance
• New Agent success rate increased from 39 to 75
• New Agent productivity increased 38
• District productivity increased 27 over
  districts that did not participate in the
  corporate university
• MM Mars
• Gallup Q12 employee engagement score - .13
  improvement
• 33M cost savings due to Lean programs that were
  delivered through Mars U
• Return on Total Assets improvement of .2 percent
  as result of improved training on their ROTA
  principles.

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Getting Results

• HSBC
• Apprenticeship training reduced turnover by 28
• Training for Consumer Lending Sales Force led to
  improved customer satisfaction score         
• 2005 - 83.6           2006 - 84.3
• Cisco
• Estimates time saved for channel partners in
  selling, supporting and servicing Cisco products
  is about 132 hours per person for a total savings
  of 66/million/yr.  
• Costs saved by moving to eLearning strategies was
  74M in 2004.
• Sanford Health (formerly Sioux Valley)
• Nurse on-boarding program - turnover down to less
  than 10 vs. 20 for the industry average

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Leadership Challenges

• New strategies being launched with increased
  frequency
• Not a fixed competency framework
• Weak bench strength
• Talent development eliminated throughout the
  1980s
• People moving to new leadership levels at amazing
  speeds
• Horizontal leadership skills
• Managing enterprise processes across silos
• Track record for destroying shareholder value
• Failed mergers and acquisitions
• Globalization requires innovation in management
  thinking
• Western management practices not translating to
  some cultures

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Loose Alignment in Key Leadership Development
Activities
Organizational Development
Senior Leaders
Human Resources

• Business Strategy
• Mentoring
• Action Learning Review

• Job Scope

• Incentive Strategy
• Competency Model
• Performance Review
• Recruiting/Selection
• Exec Development

Talent Review Committee
Learning Development

• Classroom/Web Training
• Action Learning
• Transition Interventions
• Program Measurement

• Succession Planning
• Job Rotations

Managers

• Performance Review
• Development Plans
• Coaching

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Hypotheses for Leadership Research

• Weakness in leadership pipelines
• Confusion in the industry about who should own
  executive and leadership development
• Continuous organization change
• Increases the level of difficulty for knowing the
  leadership needs in terms of what skills, how
  many, how to develop them quickly
• No agreed, standards-based model for tracking,
  managing and measuring leadership and high
  potential talent
• Inability to adequately measure the value and
  effectiveness of programs designed to develop
  leadership and other talent

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8th Annual Benchmarking Leadership 2012 Studies

• Demographics
• Conducted pre-survey interviews
• 50 leadership/talent questions 10 demographic
  questions
• 20 of respondents headquartered outside US
• 12 qualitative interviews

• Focus Areas
• Organization Culture
• Structure and Authority of Leadership Development
  Organizations
• Leadership Development Activities
• Leadership Team Characteristics
• Forecasting Talent Needs
• Succession Planning
• High Potential Talent and Talent Pools
• Impact and Measurement

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Example Participants

• Pre-survey
• PG
• Schwans
• BTS
• Qualcomm
• Fort Hill
• Boeing

• Qualitative
• Chrysler
• GMAC
• Honeywell
• Agilent
• Alcan
• Coles
• Ford
• Qualcomm
• RR Donnelly
• Sauer Danfoss
• Schneider-Electric
• Spencer Stuart

• Quantitative
• ADP
• Bank of America
• Cargill
• CSC
• Estee Lauder
• Hersheys
• HSBC
• Intel
• Kohler
• Legg Mason
• Lehman
• Liberty Mutual
• Mitsubishi
• Nokia
• Oracle

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Straight to The Punch Line Theres a Leadership
Crisis
N71

• Only 3 of respondents say their companies have
  no concern about current bench strength and
  meeting future needs

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Challenged by These Leadership Needs

• Talent for emerging markets 69
• Moving young people through leadership ranks
  90
• Finding high potentials early in their careers
  89
• Getting leaders to relocate 86
• Balancing diversity 91

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Responding to Current Leadership Crisis
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Effectiveness of Formal Leadership Education
Programs

• Business simulations get highest marks for highly
  effective
• Business school seminars get highest marks when
  looking at programs that are somewhat or
  highly effective
• Semi-annual leadership forums receive lowest
  scores

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Effectiveness of Contemporary Leadership Programs

• Project-based learning is rated very high
• When somewhat effective is added, leader as
  teacher programs rank highest
• Fewer organizations doing cohort-based learning
  and it ranks as least effective

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What Topics Do Programs Cover?

• Quite a mix
• org specific topics,
• clients,
• Self
• the market
• business strategy
• round out the top 5.
• Dropping down one level to middle managers and
  hi-pos, important topics shift to
• clients,
• org topics,
• business strategy,
• competitors
• market conditions

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Other Gaps In Leadership Development Efforts

• Challenged to prepare leaders to deal with new
  members of the work force and new conditions
  required to compete in a global economy

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Leadership Development Can Achieve Status as
Strategic Function With a Role Thats Critical to
the Business
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Culture

• Factors influencing culture are complex
• What is valued and rewarded by leaders
• Stories and myths
• Secondary aspect of culture is what people
  actually do
• Stated policies

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Reconciling Behaviors With What They Say

• More talk than walk

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Summary of Conclusions

• Weak Culture
• Many dimensions of culture
• Day-to-day activities overshadow what leaders say
  and even what corporate policies dictate
• Lack of integrated processes
• Not managed like an integrated, core organization
  process
• No clear consistent or best practices
• No transparency across the enterprise
• Fragmented systems
• Data scattered between HR, business units, local
  facilities
• Weak Efficacy in Current Programs
• Development is often ad hoc with very little
  follow-up
• After all is said and done organization takes
  its best guess at who to promote with the
  exception of senior executives

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• Investors, analysts and reporters are all taking
  much greater interest in succession plans and
  organization processes for grooming future
  executives as contributing factors to a firms
  long-term viability.

Jay W. Lorsch and Rakesh Khurana, Changing
Leaders The Boards Role in CEO Succession,
Business Week, October 2007
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Fresh Ideas That Hold Promise

• Local Talent Review and Development Teams
• Ford Personnel Development Committees
• Evolving the Decision Science of HR
• Agilents metrics
• Engaging leaders families in their development
• Schwans programs to include spouses and children
• Organization consortiums to share learning
  experiences among leaders
• Schneider Electrics consortium with Nokia,
  Alcan, Wipro, LOreal
• Speed dating style of idea exchange
• Integrated talent systems
• Chrysler desire to recreate what they had with
  Daimler
• Qualcomm describing nirvana

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Corporate - Higher Education Partnerships

• Alan Todd
• January 11, 2008

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Likelihood of Partnering With Higher Education
Institution
Only 18 of organizations say they are unlikely
to partner with Higher Education Institutions
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The Problem

• The World Is Flat - The perfect storm of
  technology, globalization, and the rise of
  democracy is causing unprecedented change in
  business.
• Knowledge-Driven Economy.
• Corporations must make learning strategically
  important to innovate and adapt to change.
• Competition for talent continues acceleration.

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Assumptions

• Colleges are on a never ending quest for students
  
• and money.
• Tuition has historically risen much faster than
  the rate of inflation. And this isnt
  sustainable.
• Businesses must adapt (change) or risk
  extinction.
• A Learning Culture is a critical component of
  change.

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Investigation

• For the business world
• Identify key learning challenges that business
  leaders believe can be improved upon with higher
  education partnering.
• Explore the business model for partnering from
  both the perspective of supplier and customer.
• Uncover the barriers to success by finding
  examples that did not lead to success.

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Investigation

• For the higher education world
• Uncover the pros and cons of partnering with
  corporations.
• Explore the importance that they place on this
• market segment.
• Delve into how partnering decisions get made at
• a University.
• Define what is needed to successfully consummate
• a transaction.

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Literature

• Colleges are running out of students (Zemsky,
  Shaman, Shapiro, 2001).
• University of Virginias share of operating
  budget coming from the state declined from about
  28 in 1985 to 8 in 2004 (Economist 2005).
• Our University has evolved from being a state
  institution to being state-supported, then
  state-assisted, next state-located and now
  state-annoyed (University President, Economist
  2005).

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Literature

• National Center for Education Statistics reports
  that over the past decade more than 500
  Institutions of Higher Education have closed
  their doors.
• During this same time, corporate universities
  have grown fivefold, to more than 2,000, compared
  with 3,600 accredited universities in the U.S
  (Meister, 2003).

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Literature

• 90 million adult learners in the U.S.
• 50 of all adults.
• 70 of all formally enrolled students.
• Simply put, universities looking for more
  tuition paying students should be looking to the
  adult learners in
• the workforce. (Lynch, 2007)
• (The National Center for Education Statistics)

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Literature

• In 1990, less than half of the nation's community
  colleges offered training programs in conjunction
  with local businesses.
• By the mid-1990s, roughly 90 of two-year
  colleges had joined "the business of training
  workers for specific companies, rather than just
  teaching generic subjects or trades."
• (Stamps, 1995)

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Literature

• Educational institutions could become factories
  for commercial products.
• Corporations should give to colleges only for
  philanthropy with no strings attached.
• (Gary Ruskin, Executive Director of Commercial
  Alert)

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Description of Investigation

• Qualitative Interviews.
• To gain an in-depth perspective on partnering
  from both higher education and corporations.
• Total of 30 interviews, each 1 hour in duration.

• Quantitative Data.
• Collected from 200
• Global Corporations.

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Results

• Higher Education
• Corporate marketplace was crucial.
• Revenues derived from corporate learning
  contribute to programs that simply could not
  exist without this extra revenue contribution.
• Connecting faculty with corporations provides
  significant opportunities to strengthen
  relationships that ultimately lead to
  collaborations on research and other learning
  initiatives.

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Results

• Higher Education
• Customization is a nuanced issue.
• Time to develop programs.
• Potential loss of accreditation.
• Ownership of intellectual property.
• Brand dilution.

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Results

• Higher Education
• The Perfect Partnership
• Strategic relationship.
• Global.
• Consortia approach.
• Marketing to employees.

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Results

• Higher Education
• Institutional Difficulties
• Culture.
• Getting faculty to share contacts (each faculty
  is CEO unto themselves).
• Paying enough to compete with commercial
  businesses for talent.
• Incentives - Research Teaching, not
  collaborating/sharing.
• Competition for resources.

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Results

• Higher Education - Example
• Stevens Institute Partnership With Verizon
• Business Requirements - Focus tuition investment
  dollars on areas that align with company
  strategic goals.
• Offerings - Degrees in Business, Engineering,
  Project Management, and more.
• Co-Marketing to employee population.
• Started in NJ, then USA, Now Global.

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Results

• Corporations
• Universities are vital in developing talent.
• Reliance on Universities is increasing to educate
  
• corporate workers.
• Universities are in a strong position to provide
  education to businesses because of scholarly
  research and networks.

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Results

• Corporations
• Requirements
• Strategic relationship.
• Strong project management and faculty
  involvement.
• Strong administrative management.
• Communications.
• Logistics.
• Housing.
• Mailings.
• Customer service.

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Results

• Corporations
• Strong desire for customization to meet business
  requirements (crucial).
• Must impact business performance in a measurable
  way.
• Want Institution to have skin in the game.

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Results

• Corporations
• Limitations exist as to how much training can be
  outsourced to a partner.
• Government classified.
• Company proprietary.
• Government regulated.
• Company culture.
• Small-budget/quick-turnaround projects.

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Results

• Corporations
• Unsuccessful Examples
• Boeing - underperforming program lacked senior
  leadership support from both sides.
• Textron - underperforming relationship lacked
  solid administrative support and customer
  service.
• JetBlue - great relationship ended due to
  departure of Institutions Senior Leader.

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Positive Results

• Legitimacy to hold programs away from HQ
• Co-developing intellectual property
• Maintain certifications like CPA
• Tuition discounts to employees/families
• Tuition deferment
• Support a complex action learning project

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Negative Results

• Faculty not committed to contract reqs.
• Semester schedule could not support need
• Lack of commercial acumen
• Time consuming
• Weak client management
• Bureaucratic
• Lack of customization

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Dont Forget Online

• Accreditation is key, with more than 70 percent
  of companies requiring that a college or
  university be accredited before they will pay.
• Some companies, like Intel, go farther and
  specify which accrediting bodies are acceptable.
• On-line colleges and universities are always
  acceptable at more than half of companies, and
  sometimes acceptable at another 47 percent.
• Acceptable 97

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Practices - Measurement
Source Corporate University Xchange Tuition
Reimbursement Study 2007
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Summary

• Partnerships represent significant opportunities
  for all (Company, University, and Employee).
• Focus on Top 3 Critical Issues.
• Developing senior relationships.
• Monitoring performance.
• Tending to administrative details.

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Summary

• College Focus Areas
• Deep niche expertise.
• Customization.
• Customer service.

• Corporation Focus Areas
• The relationship.
• Co-marketing programs.
• Providing leader/teachers.
• Collaborating on research.

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Thank You
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Retention Value

• Based on 10,105 participants
• Average VZW turnover rate of 19
• Average LearningLINK turnover rate of 8
• Average FTE re-hire cost of 23,000
• Program expenses for 2006 were 23.5 million