Human Resources – Understanding and Developing a Corporate University

Understanding and Developing a Corporate University: Strategies for the Way Forward

by Gavin Eccles

The last few years have seen phenomenal growth of businesses developing and implementing a ‘Corporate University’ into their organisation. The reasons cited for this growth is that a corporate university allows an organisation to tailor its people and development to the business plan, allowing employees to solve real time problems to business issues. In a recent survey in the UK that looked at the best ‘100’ companies to work for, virtually half of all those mentioned had, either, a) embarked on, b) in the process of, or C) presently running a corporate university. ‘Real-time learning’ is the key reason for implementing such an approach, whereby employee competencies are developed and assessed in their response to implementing solutions to business problems.

The picture so far

Many companies and organisations are at different stages of evolution in their thinking and application of the corporate university concept, from those who are just starting out, compared to businesses that have put thousands of employees through development programmes. However, in all cases it is fair to say that all are somewhere on a learning curve, and it would be a brave HR Director to admit otherwise. Why is it then that this learning curve is not so well defined? As with all soft measures of success one companies experience is unique to them and benchmarking their approach may not deliver similar successes. Applying learning and development for British Airways would not be the same for TAP or Iberia for that matter. Each organisation has it’s own learning and development culture and this results in HR departments not having the case study or ‘check-list’ to implement the solution effectively. The challenge therefore for organisations in considering the concept, for universities as the providers of intellectual knowledge, and consultants assisting the whole process is the constant strive to introduce a new learning paradigm – ‘that of a development curve that stimulates applied learning’.

Positioning on the learning curve

From experiences of assisting organisations in developing their approach, it is fair to say that the first stage of the journey is for HR departments to consider where their organisation presently sits along the educational learning pathway. To assist the process, HR managers need to undertake a simple equation; ‘dividing where their corporate university development is to-date versus what learning presently looks like within the organisation’. This will help to understand the learning culture that presently resides within the business. From this analysis, organisations can work out how close they are to breaking through the barrier to support applied learning.

Breaking through management’s learner-gate

In studying businesses over the last six years, I have come to the conclusion that organisations traditionally follow one of two distinct learning models. Either, an ‘Educational Model’, or the ‘Company Training and Development Model’. Aspects of these models are outlined below:

Model 1 Educational Model	Model 2 Company Training & Development Model
Characterised by: – educational stages or steps – delivered through institutions – highly structured curriculum – well-ordered learner groups of students – gatekeepers of the knowledge – an institutional hierarchy that takes all decisions – rewards have intrinsic value and are variable	Characterised by: – performance improvement and management development – delivered through training/HR dept – module-focused; defined content meeting organisational needs – groups are selected according to identified needs or potential – knowledge is business experience based – rewards are tenuous; connected to remuneration packages

Both of these approaches have significant benefits. The educational model provides employees with structured learning, rigorous discipline in analysis and forecasting as well as the added advantage of harnessing academic knowledge. However, at what point is the learning shared throughout the organisation, applied to solve business issues. Recent debates have focused on the importance of intellectual capital and knowledge management and one could argue that under this model, power lies with the individual, not necessarily the corporation. The second approach is where most organisations are to-date – utilising training programmes to teach and develop employees skill sets to solve existing problems. The successes lie in individuals knowing what is required of them in their job, and therefore improving their operational effectiveness. Learning is shared amongst the group and people feel motivated, as they have had time to discuss the business. However, at what point do individuals learn for the future – not so much what we need to do now, but what is required for competitive success. Therefore, in moving learning forward, organisations that are considering a corporate university are rethinking their strategies for Models 1 and 2, combining the positive associations of both, and working up a third educational model that provides a framework for assessing performance improvement and employee potential.

Model 1: Educational Model

Model 2: Company Training & Development Model

Model 3: Corporate University?

Why and how to consider Model 3

The benefit of breaking through the learner-gate and applying Model 3 is that it allows the organisation to be more effective, particularly in building employee capabilities that align with the strategic purpose of the business. A culture dominated by ‘enterprise and free-intelligence’ will support empowerment, intuition, reasoning and equality; rather than the traditions of orders and co-operation.To support the process, attention needs to focus on the key subject areas that will contribute to the formulation and development. In particular:

– Applied learning solutions – ensuring that we support and develop experiential learning, applied through actions and e-learning solutions.

– Strategic fit – ensuring commitment from the top for real-time solutions to business issues; balanced against who should learn, what, how, where and when?

– Business-led – encourage development to be at the forefront of the business; have we the resources to deliver these needs effectively?

– Management – committed team throughout the process – objectives, assessment, feedback and resources.

Managing learning within a corporate university

Many companies have made interesting observations about their current programme of corporate university development. Some indicate that they have accessed only a fraction of the potential available. In other company situations Model 2 is still largely in place, unblemished and working well. However, their views contribute penetrating and valuable insights into the reality of the influencing issues for change – particularly factors connected with staff retention and image as a respected employer of choice. Recognising the need to formulate Model 3 is very important and is the first strategic step in the evolution of the corporate university. It has to draw upon the strengths of Models 1 and 2, utilising their values in a different setting or a more creative/flexible way. The corporate university should ultimately aim to have a very practical effect in helping people at work and to realise their ambitions; in a previous managerial age this was called ‘job-enrichment’. A corporate university is essentially about connecting with the motivations of individuals, in a secure learning environment where they can give full expression to their capabilities.