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Corporate Universities:
Strategic Organizational Learning
Authors:
May 2019
Copyright © 2019
All rights reserved. Except as permitted under U.S. Copyright Act of 1976, no part of this publication may be reproduced,
distributed, or transmitted in any form or by any means, or stored in a database or retrieval system, without the prior written
permission of the publisher
Abstract
Firms may invest in corporate universities for many reasons, but the ultimate goal always remains
keeping the organization and its people competitive in a changing marketplace. Developing a detailed
step-by-step “how to” for the creation of a corporate university would be inadvisable as each university
must be uniquely designed to meet the needs of the organization in which it operates. However, best
practices can be identified and grouped into categories of commonalities by analyzing research
Group has developed a four-part framework with the inherent flexibility necessary to be applied to any
organization while achieving the level of detail required to retain its usefulness as schema for corporate
university implementation.
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Table of Contents
History
The first modern corporate university (“CU”) between 1997 and 2007, the number of
was established by General Electric at companies in the United States increased
Crotonville in the 1950s. McDonald’s launched twofold to an estimated 2,000. Corporations in
the creatively titled “Hamburger University” in the G20 spent an estimated $400 billion USD
1961 with Disney and Motorola following suit on training in 2012. Globally, as of 2015 more
with universities in the 1970s. The concept saw than 4,000 firms had a formal Corporate
explosive adoption and growth in the latter part University.
7
Figure 1
Google (Googleplex), Zappos (Zappos Insights), corporate universities. Disney now hosts
and Apple (Apple University) are just a few of universities on both coasts which are so well
the cutting-edge firms that have created
Definition
With a history spanning over eight decades; host
organizations as disparate as GE, McDonald’s, Disney, and
Apple; and the varying stages of adoption an entity may
have achieved; establishing a comprehensive definition
that remains specific enough to having meaning is at best a
challenging endeavor. Even the term “Corporate
University” has not been unanimously adopted with
alternate terms such as “Virtual University” (BAE Systems),
“Corporate Business School “(Ernst & Young), and
“Learning Center” (General Motors) among the alternative
stylings for similar offerings.
19
University” has not been universally adopted as expansion of for-profit academic institutions,
the accepted nomenclature for the type of has also been referred to in the media and
organizational strategic learning program we academic literature as “corporate universities.”
discuss here. While it is seemingly only a This has caused further ambiguity when
semantic difference, there are a few reasons utilizing the term to describe strategic
why these decisions may be important to an organizational learning programs for
organization. businesses. 28
At the very highest level, the reason most indicator is beyond the scope of this writing.) In
companies adopt a strategic learning program the 21st century, it can be argued that academic
is the same reason they make most other universities no longer fall behind current
decisions--to remain a going concern. The trends. However, what remains true is that
benefits of a corporate university program third party academic institutions cannot teach
include attracting and retaining talent,
12
the skills and concepts that are specific to
enhanced brand image, and ROI potential. 3
individual organization. Companies like
6
Simply put, the firms that win are the ones that Motorola and AT&T leverage their corporate
9
can learn faster and smarter than the universities to teach their employees how to do
competition and corporate universities are the the actual day to day work. At Motorola, for
best way to do that. However, upon closer
12
example, this may take the form of teaching
inspection of the underlying motives behind CU factory workers how to assemble the latest
adoption, a few common sub-categories technology. At knowledge factories like,
emerge. These categories include keeping the Deloitte Consulting, the training may teach
organization and its people competitive, learners how to “assemble” less tangible
teaching organization specific skills and products like problem solving frameworks. In
concepts, and promoting a common culture and both cases, the end goal is the same: to teach
leadership philosophy across a wide team members how to effectively use
organization. proprietary processes in the execution of their
duties. As we will see next, the training and
development of these skills can no longer be
Teaching Organization Specific looked at as a one-time endeavor.
Skills
The generally accepted rationale for the Keeping the Organization, and
appearance of corporate universities points to
a period in history when traditional academic
Its People, Competitive
universities were lagging behind the rapid The most common goal cited by companies for
changes occurring in industries and creating a corporate university is keeping the
businesses. The rate of disruptive business
10
organization and its people competitive. 3
change and the rate of increase in corporate Change has always been a constant in the
universities shows at least a correlative business world, regardless of the industry.
relationship that seemingly supports this However, a convergence of factors is currently
narrative. (If that correlation indicates leaving firms particularly vulnerable to change-
causation and which trend is the leading based competency gaps.
The first influencing factor is the prevalence of of skilled knowledge workers who are reaching
digital transformation. Figure 2 shows a
10
retirement age.20
marked increase in the use of terms related to As the Boomer generation retires, they leave
disruptive technology driven change in gaps at every level of the organization. No
business articles since 2010. Industries which
17
sector, industry, or company is entirely
were previously viewed as impervious to immune. If a program is not in place to retain
outside change have been drastically altered by or replace the knowledge held by these
a blindside from a digital competitor. retirees, firms will struggle to maintain the
Executives are taking notice. To combat the status quo while the competition is taking
gathering storm of digital disruption, firms now leaps into the future. Figure 3 illustrates the
realize that the traditional view of L&D as one- projected age demographic changes in the US
time training is simply not enough. A program of workforce according to statistician Nate
continuous development must be adopted to Silver’s FiveThirtyEight.
14
Promoting A Common Culture, use it, organizations can reduce costs in many
ways:
and Leadership Philosophy • Turnover due to employee disengagement,
In addition to teaching organization-specific • Eliminating “fragmentation and
skills and keeping organizations competitive, redundancy” by providing just in time
creating a corporate university provides a knowledge about culture, process, and
29
the expansion of the gig economy, the training employees on cultural expectations
globalization of work—a corporate university of the countries in which they are operating,
provides a formal structure to provide as well as the culture and leadership style of
continuous and unified learning and the company to prevent societal cultural
development. In a world where today’s incompatibilities from disrupting
employees can access information about operations or negatively impacting the
anything, at any time, and from anywhere, a bottom line. 22
making required in an agile organization makes Training has often been an afterthought
the establishment of a common leadership and because it is hard to prove the value and ROI of
values framework more important to hold the a learning program. It has long been expected
organization together, and a centralized entity
28
that employees will learn on-the-job, and any
like a corporate university provides a standard sort of formal learning programs are a waste of
way of communicating and training those time. Tribal learning is the way to go. New
values. employees will learn from their peers and
managers. However, as the workforce becomes
By providing employees with a place to learn, more virtual and global, many workers no
develop, and grow, and empowering them to longer sit physically with managers and peers
and simply cannot learn as much on the job. In 2
One of the prerequisite hallmarks of a practices can be identified and grouped into
corporate university program is a bespoke categories of commonalities. Utilizing this
correlation to the individual organization’s methodology, Inspirant Group has developed a
strategy. As such, developing a detailed step- four-part framework with the inherent
by-step “how to” for the creation of such a flexibility to be applied to any organization
program would be inadvisable. However, by while achieving the level of detail necessary to
analyzing research surrounding successful retain its usefulness as schema for corporate
corporate university implementations, best university implementation.
Phase 1: Define Core Purpose and establishes the foundation upon which the
Scope of University entire university is built. A needs analysis
exercise with the top leadership is a common
The first step in the process is to define the core
starting point to get everyone on the same
purpose of the university program. This is the
6
page. 28
Prototype I: Reinforcing and Prototype II: Managing Change Prototype III: Driving and
Perpetuating Behavior Shaping the Organization
Corporate Universities tasked When the primary purpose of Rather than being driven by
with this role are primarily the CU is to assist with the strategic changes, these
concerned with promoting and management of change, the Corporate Universities aim to
reinforcing the values and curriculum skews heavily be active participants in driving
mission of the organization. towards the examination and the strategic direction. By
Companies like Disney, which elimination of the obsolete forcing disparate groups of
have a strategic differentiator behaviors and beliefs followed managers and other employees
based in large part on the by the introduction of new to think about the company
behavior of its people utilize a insights and behaviors. The 24
from a strategic standpoint,
CU to instill the values mindset universities, in the parlance of these universities empower
in their teams.8
the Kurt Lewan model of individuals with the skills
change management, are necessary to lead the
designed to “unfreeze” organization into the future.8
be varied but those that are often cited include: technology is leveraging existing online
difficulty convincing top management that educational content as pre-work. Massive
additional training is necessary (especially for Online Open Courses (MOOCs) through
them), siloed divisions push back against the
28
providers such as Coursera, provide excellent
adoption of a uniform approach, and 28
lessons from top tier universities on a variety of
disagreement between L&D and HR staffs subjects and include audio and visual lectures
when they do not report to a common as well as “hands-on” interactive exercises.
executive. With these difficulties being Assigning these courses to be completed before
stipulated, the importance of active an internal discussion allows the instructor to
participation from the highest level of utilize a “flipped classroom” approach in which
executive leadership still cannot be knowledge is acquired outside of the classroom
overstated. As we find in all change
29
and class time is dedicated to active and
management, executive sponsorship is often interactive application of the concepts. It has
the linchpin holding success. been shown that this approach leads to a
deeper understanding of the concepts and
Phase 2: Develop Content Delivery more active participation in learning as a result
of an increase in interaction between students
Methodologies and greater feedback to the students and the
When considering the best methodology to use instructor.32
for content delivery, it is important to consider
the details: what needs to be learned and by It is important to not rely on technology to
whom. In the age-old debate, proponents of replace learning that would be more beneficial
traditional classroom settings clash with those in person. It would be easy to assume that in this
who prefer, even mandate, the complete modern age; most people would prefer to learn
transition to eLearning. In good practice, on their smartphone or with a quick YouTube
learning strategy encompasses many different video. While certain topics (such as those
ways of disseminating knowledge. The same mentioned previously) may lend themselves to
person may prefer or need to take in different this type of learning, many other topics are
information from different methodologies. For much better taught—and learned—together in
example, functional and tactical management person. Southwest Airlines (SWA), a leader in
skills, such as time management, delegation, employee development and engagement, finds
and giving feedback can be developed and value in bringing people to their headquarters
possibly delivered by outside experts. These,
28
for training. Only 10% of their SWA University
and similar functions that are repeatable for People is available online. As a learner
29
Figure 4
Regardless of the makeup of the learning Management System (LMS) that provides a
audience, there are certain commonalities that one-stop shop. When learners know what to
23
hold true for all methodologies. Having a expect, they are primed to receive information
dedicated facility - whether it’s brick and better than if it comes to them haphazardly.
mortar or online - is key to creating a reliable
4
Another way to create a repeatable - and
and repeatable learning experience for therefore reliable - learning experience is by
participants. This can be a classroom in an office establishing a common language, both formal
building or a high-functioning Learning and informal. It is harder to take in new
28
teach higher level courses, their participation is technology cannot be integrated into these in
felt at all levels of the organization. At all levels, person solutions. Finally, learning is not a one-
it is important that the classroom (physical or time event, so whether the delivery is
otherwise) be a place of equality. This should be traditional classroom or technology-based
demonstrated through a policy that includes learning, there are many ways to continue the
everyone in a class is on a first name basis or no learning journey. Organizations can reinforce
one is (i.e. everyone is “Mr. [Last Name]” or key concepts through spaced microlearning. 26
everyone is “[First Name]” for both instructors Individual learning can also be supplement,
and students. If physical participation requires through the use of Massive Open Online
travel, all accommodations should be as equal Courses (MOOCs) or other on demand self-
as possible. The classroom, and everything
21 study options. 28
the primary determinant in achieving buy-in After the launch, the delivery phase will follow
from the consumers (users/learners) and the plan set forth in Phase 2. Particular
provide the best chances for long-term success. attention should be paid to collecting relevant
Ergo, the same process utilized to launch an KPIs. For courses delivered via live (in-person
external product or service should be followed or virtual) instructor led training (“ILT”), a
when launching the CU. If an external methodology for systematizing into the LMS,
marketing agency is employed for the branding not only learner feedback (which is not always
and messaging of new products, an external as granularly accurate as is desired); but also,
marketing agency should be employed to instructor observations of particular areas or
develop the brand and messaging surrounding subject matters of concern should be
the launch of the corporate university. The plan developed.
developed should include marketing
communication not only the initial launch but Phase 4: Analyze | Continuously
subsequent additions and changes to the
Evaluate and Adapt
curriculum. Providing the same treatment to
the CU as other products and services offered Corporate Universities establish a learning
by the firm will communicate the value that culture. They are not just established once and
executive leadership places on strategic forgotten. The process of developing a CU is
organizational learning. This will shape the ever on going. This logically makes sense as the
attitude toward the CU adopted by the rest of initial design was based on the current needs of
the organization. Figure 5 shows examples of the business and those needs will evolve as the
Corporate University branding from Zappos environment in which it competes also evolves. 28
Conclusion
While performing the research for this paper, corporate university is the early
we came across many articles with headlines acknowledgement that there is nothing static
and titles that corporate universities as dead. about it. Corporate universities are designed to
The true crux of the argument was never that help the organization achieve its goals. As long
corporate universities are going away. Rather, as those goals, or the skills needed to achieve
author after author contended that the “old them, continue to evolve, the universities that
way” of planning, designing, and delivering support them will need to evolve as well. By
corporate universities was becoming extinct. following the method described here, evolution
But is it really? What was the “old way?” is baked into the fabric of the university itself.
McDonald’s, Disney, and Motorola have all had The CU will be primed to follow the
corporate universities for half a century. None organization in lock step today, tomorrow, and
of them look very much like they did at their well into the future.
genesis. The key to building a sustainable
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Len Musielak
Inspirant Group Head of Marketing
Len focuses on overseeing the strategic planning, development, and execution of Inspirant Group’s
marketing, advertising, and business development initiatives. Prior to joining Inspirant Group, Len
helmed his own management consulting practice where he worked closely with Inspirant on a number
of engagements including the initial development of the marketing plan, social media strategy, and
marketing mix. He has led operations consulting projects ranging from process improvement for a non-
profit legal aid clinic to the development of a global channel management scoring system for a
In addition to consulting, Len brings experience leading operations, process redesign, and compliance
technology development and integration in financial professional services firms as well as engineering
operations management to tens of thousands of students across the globe while volunteering for the
University of Pennsylvania’s Wharton School of Business through Coursera. In his free time, he is a
member of the Chicago Marathon Start Line Operations team. Len is a former member of the Chicago
Board Options Exchange (FINRA Series 56) and FINRA Registered Representative (Series 7); received
his bachelor’s degree from DePaul University; and earned a Master of Business Administration degree
Meighan Newhouse
Inspirant Group Chief People Officer
Head of Learning & Development Practice
People are Meg's passion. At Inspirant, she brings that passion to both internal Inspirant people and
external client teams. She starts every project by finding the perfect Inspirant resource for the client's
specific needs, vision, and culture. Then, as the leader of Learning Solutions, she works with those
resources and the client to assure each step in the bespoke Learner Journey is effective, engaging, and
relevant to each person. Meg brings a healthy dose of empathy, listening, and relating to all of her work.
Her focus on people, and innate desire to help them get "unstuck" and try something new, makes her
incredibly good at what she does and an invaluable asset to the Inspirant leadership team.
Before joining Inspirant Group, Meg ran her own consultancy and continues to perform charitable work
as Founding Director of Colette Allen Charities. She has previous consulting experience at Deloitte and
as an internal instructional designer at Kirkland & Ellis LLP. Meg is an accomplished motivational
speaker and executive coach. Her people knowledge extends beyond experience--having earned a
Bachelor of Science in Psychology and Master of Education in Instructional Design and Adult Learning
I started Inspirant Group for the frustrated, busy and savvy executive who wants to partner with a team
of people who have walked in their shoes – people who want to do things better. For the executive who
has already recognized the need to transform their business and are looking for seasoned advisors to
help them map the journey and stick with them to the end. We don’t look at things as one project or for
a certain duration. We ask how we can add value in the long run. We turn down projects if we don’t have
the perfect combination of skillsets to deliver a perfect solution. (We have done this on more than one
occasion.) Consultants usually sell the work and then try to find the staff they need to “complete” the
project. Inspirant Group will ensure that we have the right staff and resource skill sets before saying
yes to any work.
I have sat on both sides of the desk long enough to know that things need to change. Clients deserve
better rates and quality of work from their consultant partners. They deserve consultants that will
listen to them, treat them as unique individuals, and be willing to work with them to get the job done.
We understand the approvals, the requisitions, and the risk management hoops you have to jump
through. Our lack of bureaucracy means that we can be flexible and work with you. We will work hard
to work with you. You shouldn’t have to work hard to work with us. Inspirant Group has one goal: Make
your life easier.
Amir Azarbad
Founder & CEO
Inspirant Group, Inc.
Consulting Redefined.
See how Inspirant Group can help you with your corporate university initiative at:
inspirantgrp.com/CorporateU
26 Inspirant Group | Consulting Redefined.