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What have I learned today? 1 Overview of Caterpillar University: Learning Organization Structure, Governance, Strategic Learning, Metrics and Evaluation.

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Presentation on theme: "What have I learned today? 1 Overview of Caterpillar University: Learning Organization Structure, Governance, Strategic Learning, Metrics and Evaluation."— Presentation transcript:

1 What have I learned today? 1 Overview of Caterpillar University: Learning Organization Structure, Governance, Strategic Learning, Metrics and Evaluation Dave Vance, President Caterpillar University September 23, 2004 Corporate University Exchange CLO Exchange Forum

2 What have I learned today? 2 Outline Background on Caterpillar Origin, mission, structure of Caterpillar University and learning community Key Cat U initiatives Enterprise Learning Plan and Division Learning Plan Learning metrics and Evaluation Looking ahead

3 What have I learned today? 3 Caterpillar Inc. 72,000 Caterpillar Employees –38,000 inside U.S. –34,000 outside U.S. 246 Caterpillar facilities around the world 90,500 Dealer Employees –34,400 inside U.S. –56,100 outside U.S.

4 What have I learned today? Skid Steer Loader: Manufactured in Sanford, NC Operating Capacity: 1,400 lbs. 797 Mining Truck: Manufactured in Decatur, IL Operating capacity: 380-ton nominal payload Machines Range From…

5 What have I learned today? 5 Engines Range from 9 horsepower for small machines and generators To 600 horsepower for on-highway trucks, transit buses, fire trucks To 3000 horsepower for the large Caterpillar equipment To turbines with over 18,000 horsepower for oil, gas and power generation industries

6 What have I learned today? 6 And More than Big Yellow Machines Cat Logistics—one of the world’s largest contract logistics providers, customers include Harley Davidson, DaimlerChrysler, Sprint, and Ford Motor Company Cat Financial—manages a portfolio of $18 billion, serves nearly 80,000 customers Cat Power Ventures—develops, owns, and operates power plants

7 What have I learned today? 7 The Origin of Caterpillar University Marketing Distribution Team recommends that Caterpillar must become a continual learning organization to succeed An eight-member Continual Learning Team makes specific recommendations for continual learning and creation of Caterpillar University –Cat University to focus on common learning needs, culture, leadership, knowledge sharing –Transcend 25 autonomous business units –Funding model for ongoing operations not addressed Economy slowing; recession begins in early

8 What have I learned today? 8 Caterpillar University Established January 2001 __________________ Enterprise Learning Vision To be recognized as one of the best continual learning organizations in the world. __________________ Caterpillar University Mission Improve the performance of Caterpillar employees, dealers, suppliers and customers. In a Shared Beliefs Environment

9 What have I learned today? 9  Enterprise learning strategy  Development of new learning/redesign or retirement of existing learning  Design control for learning  Enterprise learning budget  Enterprise metrics and measures Global Product Manager for Learning Working across the enterprise to ensure the investment in learning is linked to Caterpillar's strategy and provides maximum value.

10 What have I learned today? 10 Learning at Caterpillar Knowledge Sharing E-learning Leadership development (coaching, workshops, facilitation) Classroom training Competencies Career development Change management Systems support, such as Learning Management System and Knowledge Network Managing our intellectual capital and development

11 What have I learned today? 11 Caterpillar University Governance Board of Governors, which includes the CEO and senior executives -Approve learning budgets and priorities -Determine policy Advisory Board for each college, which includes senior leaders from “user” groups - Members represent different business units - Geographic and subject matter mix

12 What have I learned today? 12 Partnership in Developing Strategic Learning Lead Learning Managers, one from each business unit ‑ Dual solid line reporting to Cat U and Business Unit ‑ Monthly teleconferences Global Teams ‑ Lead Learning Managers and Subject-Matter Experts ‑ Serve as consultants on key initiatives

13 What have I learned today? 13 Role of the Cat U Managers Meet common, global learning needs Meet local and regional needs Ensure customer satisfaction with Cat U services Enable learning partnership ‑ Work with lead learning managers ‑ Work with advisory boards

14 What have I learned today? 14 Lead Learning Managers at Business Units Immediately established dual solid line reporting relationship with a Lead Learning Manager at each of 26 Business Units Learning Manager Business Unit HR Mgr Caterpillar University Manager Corporate Governance to Ensure Alignment

15 What have I learned today? 15 How Cat U Delivers Learning Enterprise learning programs for classroom delivery Business Units E-learning, Knowledge Sharing, Leadership development OR Learning Managers in Business Units

16 What have I learned today? 16 Marketing & Distribution Product Support Technology Manufacturing Engineering IT Safety Business Processes Business General Studies Leadership Dean Alice Barbour Adm. Asst. Mary Jenkins Dean Chris Arvin Dean Ruud Kronenburg Dean Ben Tien Dean Sheryl Tipton University President David L. Vance VP – Human Services Division S. C. Banwart 6 Sigma e Manager Performance Improvement Fred Goh Competencies Career Development Regional Center Coordination Vendor Management Master Scheduling Communication Metrics E-learning Knowledge Sharing CLMS Performance Support/Usability Manager Tech Enabled Lrng. Jayne Henneberg

17 What have I learned today? 17 College of Leadership ‑ Caterpillar leadership programs Colleges of Business and Business Processes ‑ Performance management curriculum ‑ Change management ‑ Business Acumen Key Strategic Initiatives

18 What have I learned today? 18 College of Marketing and Distribution ‑ Sales effectiveness and certification program for dealers College of Technology ‑ Engineering curriculum and guides ‑ Safety curriculum ‑ Ergonomics e-learning ‑ Assembly e-learning ‑ IT curricula Key Strategic Initiatives

19 What have I learned today? 19 College of 6 Sigma ‑ Manage 6 Sigma training plan ‑ Develop internal Cat MBBs ‑ Train dealers and suppliers Performance Improvement ‑ Enterprise and Division Learning Plans ‑ Career Development ‑ Competencies ‑ Learning processes Key Strategic Initiatives

20 What have I learned today? 20 Technology-Enabled Learning ‑ Caterpillar Learning Management System ‑ E-Learning More 600 e-learning courses, 175 of which are available in multiple languages ‑ Knowledge Network ‑ Performance Support and Usability Key Strategic Initiatives

21 What have I learned today? 21 Division Learning Plan Needs assessment initiated at the division level ‑ Lead learning managers identified learning needs within their respective divisions through discussions with Vice Presidents and Directors/Managers ‑ Learning needs linked to Division and Corporate Critical Success Factors ‑ Resource requirements identified to meet needs ‑ Division business leaders consulted in setting priorities Vice President approves their Division Learning Plan which is the business plan for learning that address both strategic and operational learning.

22 What have I learned today? 22 Enterprise Learning Plan Enterprise-wide learning strategy developed based on the 25 divisional learning plans and Senior Management/Board of Governors input 15 high priority, global learning initiatives identified and organized by Cat U college or area Each learning initiative linked to one or more of Caterpillar’s business CSFs The Board of Governors reviewed and approved the learning strategy and investment requirements Included discussion of metrics and ROI

23 What have I learned today? 23 Tie Learning to Business Goals

24 What have I learned today? 24 Metrics Enterprise Learning Plan translated into prioritized goals with volume and level 1-3 targets Progress against plan measured every month in vital factor meeting Year-end forecast updated monthly; focus on deviations from plan.

25 What have I learned today? 25 Evaluation Started in 2002 with need to show value proposition for learning 162 page Business of Learning was our first effort Nine detailed ROI studies conducted to date ‑ Dollar benefits, costs, net benefits, ROI ‑ Tried to improve in productivity, quality or reduction in cost Three state approach to ROI ‑ Estimate ROI at development, forecast after pilot, complete ROI at close ‑ Learn, modify, improve

26 Learning Initiatives Process Owner Current Year Business Plan YTD Actuals Current Year-End Forecast © Caterpillar Inc.Caterpillar University ROI Forecasts Cumulative Metric Monthly Metrics Review

27 2000—Desire for continuous improvement and continual learning Spending on learning not reduced disproportionately in downturn Learning embedded in all tactical and strategic plans Self-perpetuating learning culture Very high level of knowledge creation and sharing, innovation, creativity, engagement and risk-taking True Continual Learning Organization PROFIT CONTRIBUTION FROM LEARNING Training FocusCoursesSharingLearningLearning Focus TIME THE JOURNEY 6 Sigma initiated Caterpillar: Confidential GreenCaterpillar University 2002 © Caterpillar Inc. Cat U Established Provide existing training at lower cost Identify and meet common global learning needs with courses Focus on leadership Focus on knowledge sharing and e-learning Commit to become a continual learning organization Begin to develop metrics and ROIs Systems thinking, change management used extensively throughout enterprise Formally tie learning to business goals Needs-assessments indicate where learning is needed to achieve business goals Mistakes viewed as opportunities to learn Leaders champion learning Begin to tie learning to business goals Learning viewed as an indispensable part of culture Extend learning to entire value chain Establish enterprise-wide learning strategies

28 What have I learned today? 28 Keys to Our Success Burning platform established by original study team Excellent foundation provided by the Continual Learning Team Partnership with our independent business units ‑ Lead Learning manager concept ‑ Dual-solid line reporting of business unit learning manager to Cat U A great team of dedicated individuals committed to transforming Caterpillar Knowledgeable resources ‑ Consultant for ROI Upper management support

29 What have I learned today? 29 Keys to Our Success (contd.) “Journey” chart to convey vision Extensive use of volume metrics, Level 1 evaluations Focus on strategic learning Business of Learning Enterprise Learning Plan

30 What have I learned today? 30 Lessons Learned On-going funding model should have been established up front Business of Learning was an excellent exercise ‑ We learned a lot in writing it ‑ The discipline, alone, was worth the effort ‑ It established the basis for our ongoing metrics and evaluation work ‑ Established credibility with many ‑ Excited the learning community and sponsors ‑ But did not sway the “die hard” skeptics

31 What have I learned today? 31 Desired State 1.Right balance between strategic, operational and personal learning 2.Greater appreciation for bottom line benefit of learning 3.Metrics and evaluation embedded in all learning 4.Process owners who plan for and integrate learning from the beginning and who can work to ensure sustainability of improved performance


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