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Training 2007. Corporate Universities Delivering Value to their Businesses. Agenda. Moving From Tactical to Strategic Great Accomplishments This Year Challenges Ahead Our Future. Address External, Organizational and Functional-Level Change. I N F O R M A T I O N T E C H N
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Training 2007 Corporate Universities Delivering Value to their Businesses
Agenda • Moving From Tactical to Strategic • Great Accomplishments This Year • Challenges Ahead • Our Future
Address External, Organizational and Functional-Level Change 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 S A L E S F I N A N C E 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
Shift Focus from Individual Development to Improved Business Performance • Ad Hoc training • Lack of focus on business priorities • Not enough context for career paths • Supports decentralized L&D • Budgets allocated by business priorities • Drive critical business initiatives • More leadership involvement • Improved impact on performance Business Performance Individual Development Shifting Focus
Senior Leader Sponsorship and Emphasis on Focus • CEOs driving the development of Corporate Universities to: • Build leadership pipelines • Leave a legacy upon retirement • Prepare for upcoming talent shortages • Drive growth initiatives • New emphasis on CASE • Consolidate, Automate, Standardize and Execute • Adopt common practices and standards • Share internal best practices
Change in Major Organizations • Intel • Moving from decentralization to centralization under 3 groups • Strategy – Design and Development – Delivery • Reduction of 40% of staff • Citigroup Business Global Transaction Services • Want to adopt corporate university model • Requirements for deep knowledge of products and their integration • Simultaneous creation of new enterprise-wide council on learning • Watching actions of Transaction Services group to consider future adoption at the enterprise level • Xerox • New business models – outsouring business processes • Rapid growth and new knowledge work activities to create and deliver business solutions • differing needs than product organizationServices organization growing rapidly
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 • M&M 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 as result of improved training on their ROTA principles.
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
Rank Company HQ Country 1 UBS Switzerland 2 L'Oreal France 3 Royal Bank of Scotland UK 4 BMW AG Germany 5 Vodafone UK 6 Deutsche Lufthansa Germany 7 Randstad Holding Netherlands 8 Degussa AG Germany 9 Voith AG Germany 10 ING Group Netherlands Return on Investment • UBS named Europe’s “Top Company for Leaders” by Hewitt Associates • 100 companies headquartered in Europe, 40 were short listed and carefully examined • 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.
CAT Achieved a $1.4B savings to the bottom line after 2 years of teaching Six Sigma in the Corporate University
Agenda • Moving From Tactical to Strategic • Great Accomplishments This Year • Challenges Ahead • Our Future
Agenda • Moving From Tactical to Strategic • Great Accomplishments This Year • Challenges Ahead • Our Future
Agenda • Moving From Tactical to Strategic • Great Accomplishments This Year • Challenges Ahead • Our Future