Our most frequently asked questions about the establishment of a Corporate University
FAQ About the Establishment of a "Corporate" University
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What industries have demonstrated a high degree of interest and success in launching a Corporate University and Why? |
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The industries with the greatest interest in creating and sustaining a Corporate University tend to be high technology, manufacturing, financial services, pharmaceuticals, airlines, telecommunications, healthcare and utilities. The reasons range from a high degree of consolidation (typically evident in organizations in these areas) to the advent of new technologies and the shortened "shelf-life" of knowledge required to operate successfully in those industries. In some cases, these internal university initiatives have been operating successfully now for many years and are often the central driver of future growth and renewal for the organization’s efforts to compete profitably in the marketplace. BACK TO TOP |
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How many Corporate Universities exist today and how many top companies have them? |
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According to recent research, there are believed to be around 3,000 organizations with something called a Corporate University, College, Academy or Institute of Learning. This is up from 400 just 15 years ago. Of the top companies (such as the fortune 500 companies in the US for example,) around 40% have a Corporate University of some kind. BACK TO TOP |
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What are the barriers to launching a Corporate University successfully? |
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The key obstacles to launching a corporate university successfully include: -Lack of sustained commitment to the Corporate University model. This is often the case where the initiative is the dream of the CEO or one top executive but he or she leaves before the whole infrastructure has been institutionalized. Senior line management therefore needs to be involved extensively in the initiative to build widespread momentum and deepen overall levels of ownership. -Lack of consensus among middle managers on the need for a Corporate University. Middle managers often may be genuinely supportive of the University but not provide adequate time for employees to participate in programs. A lot of effort therefore needs to be invested into planning how employees can be freed up to participate while operating and customer service needs are also met. -Inability to develop a link between the Corporate University and the Company's business goals. A Leadership and Management "faculty" for example, needs to be directly linked to current business needs for more local leaders and greater leadership and management skills, now and in the future, particularly in a growing organization. -Lack of visibility of the organization’s emphasis on learning. In this case employees often do not understand what the Corporate University provides to them and how to utilise the resources that have been made available. Web site information is often the first step in overcoming this hurdle but needs to be supplemented with more communication and other initiatives to ensure that all employees are well informed. -Inability to prove the value of the Corporate University. Often, this is the biggest on-going concern-how to measure the impact the Corporate University has on the overall performance of the corporation. |
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What are the typical drivers within a corporation to create a Corporate University? |
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Over the years, research has suggested that four key drivers have emerged as being the key drivers to launch a Corporate University.
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How important is the “bricks and mortar” that often exist for the Corporate University Model? |
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Roughly half of the existing Corporate Universities have separate buildings or a “campus” for their in-house University. In other situations, organizations have may several different learning centers and also have many access points in what is essentially a “virtual” University where people can learn in both formal classroom scenarios, at their normal place of work, on journeys to work (at times) and at home. |
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What are the critical factors in launching a Corporate University? |
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There are several key facts including the following:
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What is the typical operating budget for a Corporate University? |
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For most Corporate Universities for medium to large size companies, the University costs are about 2.5% of total payroll. In some organizations it is as low as 1.5% but in others 6% of payroll. BACK TO TOP |
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How is the Corporate University different from the old training department? |
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The Corporate University typically differs from the old training department in a number of ways. The training department has tended to be more reactive, decentralized and serves a wide audience with an array of open enrolment programs. The Corporate University on the other hand, usually aims to be a centralized umbrella offering strategically relevant learning solutions for the whole of the business or enterprise it serves and for each major job family within it. BACK TO TOP |
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Why call an internal learning effort a "University" and not just an enhanced training department? |
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A growing number of Corporations are opting to call their education or learning function a university because the message is clear; Learning is important and by using the metaphor of a university the intent is grand. A Corporate University should offer real qualifications, just as an external university would do. At a general level, many corporations are using the university model to brand their educational programs, courseware and processes. Just as a successful consumer packaged goods firm brands its products, corporations are realizing that while they may be spending millions of dollars in training their workforce, they are not branding their initiative and hence effectively manage the investment. BACK TO TOP |
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Who delivers the learning programs within the new Corporate University? |
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A wide array of learning partners will serve as the delivery arm for a Corporate University. These range from internal trainers, business unit managers, and often many senior managers of the company including the CEO and executive team in some cases. In addition, external people are also used such as specialist external trainers, coaches and management consultants/facilitators. BACK TO TOP |
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Who accredits or certifies the learning (in terms of formally recognized qualifications) offered by the new Corporate University? |
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Well set up Corporate Universities typically have two kinds of certification programs. Firstly, individual modules that people can complete gain "endorsed" qualifications (which are individual building blocks towards a particular qualification). Secondly, whole Leadership and Management courses at different levels offer people qualifications as soon as they have completed all of the required modules on the curricula). These programs are recognized by formal certifying bodies. For the 20/20 MDS® for example, this is the Institute of Leadership and Management (ILM) n the UK and Hume-Locke University (HLU) in the US. BACK TO TOP |
