Training 2007

Corporate UniversitiesDelivering 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

New Competitors

Transformation Through

Technologies

Cost Pressures

LEADERSHIP

INFORMATION

TECHNOLOGY

FINANCE

SALES

SIX

SIGMA

New Sales Landscape

External

Organizational

Unit / Functional

Reorganizing Around Core Processes

Increasing Commoditization

Changing Labor Conditions

Weak Leadership

Pipeline

Cross-functional Collaboration

Shift Focus from Individual Development to Improved Business Performance

Individual Development Business Performance

Shifting Focus

• 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

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

UBS named Europe’s “Top Company for Leaders” by Hewitt Associates

100 companies headquartered in Europe, 40 were short listed and carefully examined

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

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.

Return on Investment

11© 2006 Cisco Systems, Inc. All rights reserved.Session NumberPresentation_ID Cisco Confidential

Cisco Leadership SeriesBusiness Impact

94%

74%78%

58%

79%

59%

83%

63%

0%

20%

40%

60%

80%

100%

% of Class Graduates stating they have applied the learnings to Cisco Business and have had positive impact.

Applied Learning to Job 94% 78% 79% 83%

Led to Concrete Business Results 74% 58% 59% 63%

EMLP BLP SLP ELP

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