COMMONWEALTH OF AUSTRALIA

Copyright Regulation 1969

WARNING
This material has been copied and communicated to you by or on
behalf of Curtin University of Technology pursuant to Part VB of
the Copyright Act 1968 (the Act)

The material in this communication may be subject to copyright under

the Act. Any further copying or communication of this material by you
may be the subject of copyright protection under the Act.

Do not remove this notice

MGMT6003 Global Business Dynamics

Topic 10
Knowledge as a Driver for Global Business:
Learning Organisations and Corporate
Universities
Dr. Subra Ananthram
Senior Lecturer International Business
Curtin Business School
 RESOURCES?
Human capital
Harness
Comp Adv

http://jgollner.typepad.com/.a/6a00e54f8d0913883301053548591f970b-320wi
 Technopreneurship Singapore + Other
More than 3500 hi-tech cos started in Singa during 2003
762 started by foreign technopreneurs
Info-communications, media, engineering, electronics, other technical and
engineering services
Facilitated by Tech Singapore (EDB) and the Infocomm Development Authority
of Singapore (IDA)
IDA and Oracle working on a $25 million project Enterprise-g Singapore
helps more than 30 companies to develop enterprise grid solutions and train
some 300 infocomm professionals.
Education focus schools, universities.
E-government vision 2nd best in the world (Accenture)
World Competitiveness Report 2th best in the world (2016-17)
NPM reforms and PS21 reforms (accountable, corruption, Private Sector)
Shortage of white-collar knowledge workers in BRICS
Employee Retention, job hopping [TRAINING]
Knowledge Management
Knowledge Management (KM) comprises a range of
strategies and practices used in organisations to identify,
create, represent, distribute, and enable adoption of ideas,
insights and experiences. (Summarised from Lee, 2003)
Ideas, insights and experiences comprise data, information,
knowledge and wisdom which can be individual or collective
and can be harnessed for competitive advantage.
An established discipline since 1991 (Nonaka 1991)
Knowledge worker [consultants?] and knowledge
economy [???] WHAT ABOUT A KM Process?
Learning organisations and corporate universities
Linked to business and bottom line and HRM strategy
Link b/w Data and Wisdom
Source: Adopted from Ackoff 1989

Category Definition [Job satis & retention] Relevance/Time

Data (exists) Symbols, raw facts. (SPSS datafile) Past

Information Data that are processed to be useful; provides Past

(processed) answers to who, what, where and when.
(relational conn)

Knowledge Application of data and information; answers Past

(intent to be useful how questions (apply)
Study) (Males and Females) CONTEXT.
Understanding Appreciation of why (compare old/new frames) Past (Future?)

Wisdom Evaluation understanding (ethical, moral codes Future

etc.) (understanding of which there has been no
previous understanding?)
Transition from Data to Wisdom using
Understanding
Connectedness Wisdom

Understanding Principles

Knowledge

Understanding Patterns

Information

Understanding Relations

Data Understanding

A more succinct model describing the sequence of transition from data to wisdom is
provided by Bellinger, Castro and Mills (2003). Figure Two represents the transitions from
data, to information, to knowledge and finally to wisdom using understanding as the
support for transition from each stage to the next. Understanding in this model is
explained as a support mechanism rather than a separate stage.
 Jack Welch Former CEO of GE
About management and leadership assisting KM

All we are talking about is human dignity and voice giving

people a chance to speak, to have their best idea. That is a
global desire of all people who breatheMy job is allocating
capital, human and financial, and transferring best practice.
Thats all. Its transferring ideas, constantly pushing ideas,
putting the right people in the right job and given them
resources to win

LEADERSHIP LEADERSHIP LEADERSHIP

Financial Times, September 30, 1997

Learning Organisations
organisations where people continually expand their
capacity to create the results they truly desire, where new
and expansive patterns of thinking are nurtured, where
collective aspiration is set free, and where people are
continually learning to see the whole together.

Peter Senge, 1990:3

Five components of a learning organisation: Systems thinking,

Personal mastery, Mental models, Building shared vision &
Team learning
Five Components
Systems Thinking allows businesses to be studied as bounded
objects. Information systems to measure the performance of the
org as a whole and of various components (KPIs?).
Personal Mastery commitments of individuals to the process of
learning. Staff training, development but most of all the
INDIVIDUALs willingness.
Mental Models assumptions held by individuals and organisation
must be challenged. Open culture of trust and inquiry. Unlearning
unwanted values (lifelong improvement).
Shared Vision collaborative vision from various levels transmitted
to, and understood by all. Strong culture?
Team Learning the accumulation of individual learning leads to
team learning. Synergies are built across levels culture of trust
and caring.
Learning organisations typically have excellent knowledge
management structures, allowing creation, acquisition,
dissemination, and implementation of this knowledge in the
organisation
 Characteristics of a learning organisation

Source: Robbins et al (2005)

E.g: C.B. Richard Ellis (C-L-O), Infosys Technologies (C-M), Buckman Laboratories, WaterHub
http://www.cbre.com/EN/aboutus/MediaCentre/Video/ceo/Pages/a-culture-of-continuous-learning-.aspx
http://www.pub.gov.sg/waterhub/Pages/default.aspx
The Learning Organisation Litmus Test
Does the organisation have a defined learning agenda? past, present and
future R&D, experiments, best practice
Is the organisation open to discordant information? use negative
information dissension in the ranks, unhappy customers, pre-emptive moves by
competitors, problems with new technologies.
Does the organisation avoid repeated mistakes? ACCEPTANCE!!!
productive failures v/s unproductive success (HOW/WHY?)
Does the organisation lose critical knowledge when key people leave?
RETENTION how to solve?
Does the organisation act on what it knows? NOT JUST A REPOSITORY.
Transfer
http://hbswk.hbs.edu/item/1450.html

Garvin, 2000
Case Examples L.L.Bean
Relies on inquiry as a source of learning to understand
customer needs
Gets first hand information from experienced users
Testers are sent several samples [from competitors], including
one from LLB for three months use
Feedback is provided at weekend retreats hiking etc
Cresta Hiker suppliers, designers, testers, and users were
invited over a weekend hiking trip and were given different
pairs of hiking boots every 90 mns.
Constant interactive feedback was taken, a new prototype
developed, further feedback sought and production pursued
based on feedback.
Sales rose 85% and initial shipment was sold out within weeks
IKEA Garvin, 2000
Case Examples AT&Ts Bell Labs
Conducted reviews of its own software engineers to determine why some
were more productive than others with the goal of distilling their
techniques into best practices that their less successful counterparts could
adopt.
After the stars were identified, they were interviewed in-depth about how
they went about their work and, specifically, what they did to be more
productive.
Using these insights, the Bell Labs team designed an innovative hands-on
training program, which the star performers then delivered to a subset of
their peers. The results were immediate and impressive.
Participants reported a quick 10 percent productivity improvement, rising
to 25 percent a year later. There were equally striking gains in managers'
evaluations of their ability to spot problems, conduct high quality work,
keep their bosses informed, work across organizational boundaries, and
attend to customer and competitive needs.

Garvin, 2000
 Case Examples General Electric
Change Acceleration Process (CAP) represents the very best of experiential learning.
CAP grew from CEO Jack Welch's realization that the future was inherently uncertain and
was likely to stay that way.
Surprises were inevitable, and, it was impossible to anticipate upcoming events. But it was
possible to manage the change process more effectively [crisis management?]. What was
needed was a set of concepts, tools, and techniques for making rapid adjustments and
adaptations.
Welch assigned the task of developing a state-of-the-art model to four well-known
consultants and CAP was born. Participants come to CAP in teams of eight to twelve
people with a real problem to solve.
At Welch's insistence, the problems are "need to do; not nice to do." Each team works with
a coach, a process expert knowledgeable about the problem at hand who guides them
through the problem. The coaches are constantly present, working with the teams at the
home site before training begins, during training, and after CAP classes.
The training alternates between learning the CAP framework straightforward and easy to
apply guidelines that divide the change process into seven steps: leading change, creating a
shared need, shaping a vision, mobilizing commitment, making change last, monitoring
progress, and changing systems and structures and applying it to the problem they've
brought with them.
Does CAP impact the bottom line? Yes. At GE Plastics Japan there was nothing but red ink
from 1989 to 1993. Managers signed up for CAP training as a last resort in 1994. By the end
of the year the business was breaking even. In 1995 net income was $18 million and the
company was on solid footing for the first time Garvin, 2000
Importance of Learning in Organisations

http://www.youtube.com/watch?v=lUP4WcfNyAA
Corporate Universities
Corporate universities are essentially the in-house training
facilities that have sprung up because of the frustration of
business with the quality and content of post-secondary
education on the one hand, and the need for life-long learning
on the other. They have evolved at many organisations into
strategic umbrellas for educating not only employees, but also
secondary customers and suppliers [Meister 1998: 29]

The notion of a corporate university is becoming increasingly

fashionable as an overarching designation for formal learning
and knowledge creation activities and processes in an
organisation [Walton, 1999: 412]
Reasons for Setting up a CU
Organise training
Start and support change in the organisation (sensitive)
Get the most out of the investment in education (tailormade)
Bring a common culture, loyalty, and belonging to a company
Remain competitive in today's economy (in-house)
Retain employees

Hearn, 2002
Ten Steps to Implementing a Successful CU
1. Executives or top management of an organization must form a governing body for the
corporate university, much like that of a traditional university, which will establish and
profess the organization's commitment to the program.
2. The vision or strategic plan of the corporate university must be crafted; thereby,
determining the organization's goals for the program.
3. The organization must then recommend a funding strategy. Most commonly, corporate
universities are either funded through corporate allocations or through charges placed
on individual business unit budgets.
4. Next the organization must determine its audience or stakeholders who will use the
corporate university service.
5. In addition to determining the audience, the organization must also determine how the
needs of the audience will be met while continually pursuing the strategic goal of the
corporate university.
6. Following the completion of the above tasks, corporate university organizers must
develop a template for how products and services will be designed to achieve university
goals.
7. The organization must also select suppliers, consultants, traditional universities and for-
profit firms who will act as learning partners, if appropriate.
8. The use of technology and resources to be used by the corporate university must then
be determined.
9. Additionally, a measurement system should be developed that will allow the
organization to continually monitor its progress against the university's strategic goals.
10. Lastly, the governing body must communicate the vision of the corporate university
constantly and consistently. All stakeholders should be made aware of the mission,
products and programs that make up their organization's corporate university
Meister, 1998
Motorola
Motorola established Motorola University as its corporate university and
was "one of the first learning organizations to institute virtual reality in
manufacturing training" (Meister, 1998, p. 53).
To provide its employee education, Motorola University uses virtual
manufacturing labs to train line workers by modelling the equipment
instead of using the actual equipment for training purposes. These labs
can be used at any Motorola site via the company intranet through CD-
ROM programs. (Meister, 1998).
In addition to serving its own employees, Motorola now provides for-
profit Learning and Certification services to outside sources as an
independent subsidiary of the parent company. (Nelson, 2001).

Hearn, 2001
Boeing
The Boeing Company provides education to its employees through the
Leadership Center.
Jill Vitiello explains that a large component of Boeing's curricula focuses on
executive learning. As she mentions, newly promoted supervisory personnel
must complete a web-based curriculum within 30 days. This training includes
topics on C6company policies and procedures, finding and using resources,
and understanding fiduciary responsibilities" (2001, p. 42).
Entry level managers spend one week at a local training site studying
performance management, reviewing organizational structure and learning
state and regional laws and regulations that govern [their] industry" (Vitiello,
2001, p. 42).
Managers are also "required to take core leadership courses at the centre at
five specific turning points in their careers: when they receive their first
management assignments, become managers of managers, prepare for
executive responsibilities, begin their first days as executives and assume the
challenges of global leadership" (Vitiello, 2001, p. 42).
Boeing's primary means of evaluating the success of its Leadership Centre is
by conducting employee surveys on as annual basis. These surveys have
indicated, as Vitiello summarizes, that "executives and managers who have
attended programs ... are more satisfied in their jobs than those who haven't
yet attended the programs" (200 1, p. 42).
Hearn, 2001
 Ford Motor Company
Ford Motor Company calls its corporate university FORDSTAR. FORDSTAR is a"network that
enables Ford to provide training, access to experts and product information, and
networking opportunities straight to [their more than 6,000] dealerships" (Meister, 1998, p.
52). This training is conducted via one-way video and two-way audio through a digital
worldwide network. FORDSTAR programs are designed for employees in their
credit,technical, sales, services and parts departments. Nearly 1, 100 sites can be accessed
at the same time, reaching up to 300 employees in a single session. Ford's satellite system
allows employees to obtain the information and training they need when they are available
to participate. (Meister, 1998).

Ford assesses the education it provides employees through various measurement techniques.
Primarily, each session requires a progression of steps. If employees are not able to
progress through the course, educators can quickly recognize their deficiencies and make
changes to curriculum or learning techniques as necessary. FORDSTAR cultivates its
educators by providing instructional designers and instructors with their own orientation
courses. These courses focus more on learner's roles and responsibilities than on the role
of the instructor (Meister, 1998, p. 52).

Dell Computer Corporation's university, Dell University, provides education to its employees via
web-based embedded learning. Jeanne Meister explains that embedded learning stems
from "the premise that old learning methods are woefully inadequate to keep up with
business needs of companies at the forefront of a rapidly changing industry in which
knowledge must be constantly updated" (1998, p. 52). 35-45%of Dell University's
curriculum is delivered via the web. The university's mission relies on catering to the
various learning styles of their employees. Hearn, 2001
 McDonalds Corporation

Image source: http://www.aboutmcdonalds.com/mcd/careers/hamburger_university.html

Hamburger University (McDonalds)
Campus: Illinois (basement), Sydney, Munich, London, Tokyo,
Hong Kong and Brazil
More than 5,000 students attend each year
Kitchen labs
Teaching in 28 languages
For crews, restaurant managers, mid-managers and
executives
Including class style, hands-on training, goal-based scenarios
and computer e-learning
Source: http://www.aboutmcdonalds.com/mcd/careers/hamburger_university.html
Hamburger University (McDonalds)
The purpose
Consistent restaurants operations procedures
Standardised services
High quality of foods
A good state of cleanliness

Leadership training
40% of McDonald's Senior Management graduated from HU

Source: http://www.aboutmcdonalds.com/mcd/careers/hamburger_university.html
Hamburger University (McDonalds)
Reasons
Growth of the company
Diversification of its employees
Further development
Benefits
Raise the standard of the restaurants
Encourage workers
Create a network among workers
The Walt Disney Company

Image source: http://disneyinstitute.com/about_us/our_story.aspx

Disney Institute (Disney)
Disney has two types of corporate university
For employees (Disney University)
For business people outside of the company (Disney Institute)

Watch a video about Disney institute

http://disneyinstitute.com/about_us/our_videos.aspx
Disney Institute (Disney)
As a outsourcing provider, it has mainly 7 programs.
Leadership excellence
People management
Quality service
Brand loyalty
Inspiring creativity
Business excellence
Customs solutions

Source: http://disneyinstitute.com/about_us/our_story.aspx
Disney Institute (Disney)
Reasons & Benefits
Good opportunity
By applying their strategy to other business cases, they can develop and
enhance their own business model.

Advertisement
After knowing the logics of Disney, business people can be interested in
experiencing their entertainment.
TOYOTA MOTORS CORPORATION

Source: http://www.toyota.co.jp/company/gakuen/main.html
 TOYOTA Technical Skill Academy (TOYOTA)

Academy for 16-19 years olds

High-school-style course(3 year)
Basic education (Math, Science, English)
Technical education
Physical and Mental education
Dormitory life
40% of the course is technical skill development
TOYOTA way ELIMINATE WASTE through 14 principles
(KAIZEN - the companys constant drive to improve, GENTI-
GENBUTSU - solving problems at the source instead of behind
desks [mutual acceptance of problems])
Source: http://www.toyota.co.jp/company/gakuen/main.html
TOYOTA Technical Skill Academy (TOYOTA)

Salary for workers

Year 1 Year 2 Year 3

Monthly pay $1,350 $1,350 $1,500

Bonus $2,200 $3,750 $4,400

(twice per year)

Prices are approximate.

Source: http://www.toyota.co.jp/company/gakuen/koutou/tokusyoku/index.html
http://www.toyota-global.com/company/history_of_toyota/75years/data/company_information/personnel/personnel-related_development/academy.html
TOYOTA Technical Skill Academy (TOYOTA)

Vocational-school-style course(1year)
Choose a specialization when enrolling
Learn a specialised area
(i.e. car electronics and mechatronics)

assigned to a relevant post in TOYOTA

(i.e. maintenance, manufacturing, R&D)
Salary $1,550 per month, bonus $5000 (approximate)

Source: http://www.toyota.co.jp/company/gakuen/koutou/tokusyoku/index.html
TOYOTA Technical Skill Academy (TOYOTA)

Reasons
Grow future technical experts
Permeate TOYOTAs way
Benefits
Retain workers
Create a network of workers
Market share
Corporate Social Responsibility
CU - Videos
Credit Suisse
http://www.youtube.com/watch?v=_WzyjA1jvsU

Plastipak
http://www.youtube.com/watch?v=gVvUIuQe3Vs

Barilla
http://www.youtube.com/watch?v=zHK8U5Sdhf8

Eskom
http://www.youtube.com/watch?v=LyWRJ0kfrxo&feature=rel
ated
Knowledge Management: Lifelong Learning and
Corporate Universities

Knowledge key driver

Learning organisations have a competitive advantage

Human capital most important

KM, LO and CU have strategic importance

HRM implications?
Workshop Activity 1
Discussion questions based on the lecture slides:

1. In your opinion, is knowledge the key for MNEs to gain

competitive advantage? Explain

2. Apply the four characteristics of a learning organisation to a

real life example. Share it with the class.
Workshop Activity 2
Discussion case study:
Wolverine World Wide
 Student Presentations
Project Presentation - Social Media: Social media is a powerful
strategic tool for global businesses. Research TWO multinational
enterprises (MNEs) in different industry sectors that are using
social media to expand their global business and identify how
these MNEs have utilised social media and why this has been
successful. Draw conclusions on whether social media is a
blessing for MNEs and describe the future use of social media for
these businesses. Make recommendations on what other MNEs
can learn from your research.
Case Study Presentation - Carlos Ghosn: Leading for Global
Success at Renault-Nissan
What to do for next week
- Go through the lecture slides for Topic 11: Contemporary
Issues in Global Business: Challenges for Global
Organisations and Managers; HRD and Developing a
Global Management Cadre and pay particular attention
to the audio and written notes that accompany each
slide. Jot down any queries that you may have and bring
them to class.
- Have a go at solving the discussion questions. Jot down
brief points and bring them to class.
- Continue work on your assessments.