Harvard Case - Building a Developmental Culture: the Birth of Deloitte University
"Building a Developmental Culture: the Birth of Deloitte University" Harvard business case study is written by Boris Groysberg, Maureen Gibbons, Joshua Bronstein. It deals with the challenges in the field of Accounting. The case study is 28 page(s) long and it was first published on : Oct 19, 2010
At Fern Fort University, we recommend Deloitte implement a comprehensive strategy to solidify Deloitte University as a strategic asset, fostering a culture of continuous learning and development. This strategy will focus on:
- Strengthening the Business Case: Demonstrating the tangible financial benefits of Deloitte University through rigorous cost-benefit analysis and performance measurement.
- Expanding the Curriculum: Developing a diverse and dynamic curriculum encompassing leadership development, technical skills, and industry-specific expertise, catering to the evolving needs of a global workforce.
- Leveraging Technology: Utilizing innovative technology platforms to enhance the learning experience, enabling personalized learning pathways and fostering a collaborative learning environment.
- Building a Sustainable Model: Ensuring the long-term financial viability of Deloitte University through strategic partnerships, cost-effective operations, and a robust financial forecasting model.
2. Background
This case study explores the creation and evolution of Deloitte University, a unique learning and development center established by the professional services firm Deloitte. Recognizing the need to cultivate a culture of continuous learning and development, Deloitte invested heavily in creating a dedicated facility to enhance employee skills, foster leadership, and drive organizational growth.
The main protagonists of the case study are:
- Joe Echevarria: CEO of Deloitte, who championed the vision of Deloitte University and its role in driving organizational success.
- Mike Bechtle: The individual responsible for spearheading the development and execution of Deloitte University.
- Deloitte's leadership team: Who played a crucial role in defining the strategic objectives and supporting the implementation of Deloitte University.
3. Analysis of the Case Study
Strategic Framework: This case study can be analyzed through the lens of the Resource-Based View (RBV) framework. Deloitte University represents a unique and valuable resource that strengthens Deloitte's competitive advantage by:
- Developing core competencies: By investing in employee development, Deloitte University enhances the firm's core competencies in areas such as accounting, financial analysis, and consulting.
- Creating a sustainable competitive advantage: The unique learning experience offered by Deloitte University differentiates Deloitte from its competitors and fosters a culture of continuous learning that attracts and retains top talent.
- Facilitating growth and innovation: By equipping employees with the skills and knowledge needed to adapt to changing market dynamics, Deloitte University fuels innovation and supports the firm's growth strategy.
Financial Framework: Deloitte University's success can be measured through key financial indicators such as:
- Return on Investment (ROI): Analyzing the financial benefits of Deloitte University through metrics such as increased employee productivity, improved client satisfaction, and reduced turnover.
- Cost-Benefit Analysis: Evaluating the costs associated with developing and operating Deloitte University against the tangible benefits it generates for the firm.
- Activity-Based Costing (ABC): Using ABC to allocate costs associated with Deloitte University to specific activities, providing a more accurate and insightful cost analysis.
4. Recommendations
1. Strengthen the Business Case:
- Conduct a comprehensive cost-benefit analysis: Quantify the tangible benefits of Deloitte University, including increased employee productivity, improved client satisfaction, reduced turnover, and enhanced innovation.
- Develop robust performance measurement systems: Track key performance indicators (KPIs) related to employee development, client satisfaction, and financial performance to demonstrate the impact of Deloitte University.
- Utilize activity-based costing (ABC): Implement ABC to accurately allocate costs associated with Deloitte University to specific activities, providing a more transparent and insightful cost analysis.
2. Expand the Curriculum:
- Develop a comprehensive curriculum: Offer a diverse range of programs covering leadership development, technical skills, industry-specific expertise, and emerging technologies.
- Tailor learning pathways: Provide personalized learning paths based on individual needs and career aspirations, leveraging data analytics and learning platforms.
- Integrate industry trends and best practices: Ensure the curriculum remains relevant and up-to-date, incorporating emerging trends and best practices from various industries.
3. Leverage Technology:
- Invest in innovative learning technologies: Utilize virtual reality (VR), augmented reality (AR), and gamification to create immersive and engaging learning experiences.
- Develop a robust learning management system (LMS): Implement a user-friendly LMS to facilitate online learning, track progress, and provide personalized feedback.
- Foster a collaborative learning environment: Utilize online forums, discussion boards, and virtual collaboration tools to encourage knowledge sharing and peer-to-peer learning.
4. Build a Sustainable Model:
- Explore strategic partnerships: Collaborate with universities, industry experts, and technology providers to enhance the curriculum and reduce operating costs.
- Optimize cost structure: Implement cost-effective operational practices, leverage economies of scale, and explore alternative funding models.
- Develop a robust financial forecasting model: Project future costs and revenues, ensuring the long-term financial viability of Deloitte University.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with Deloitte's core competencies in professional services and its mission to provide exceptional client service through a highly skilled workforce.
- External customers and internal clients: The recommendations address the needs of both external clients who benefit from the expertise of Deloitte's employees and internal clients who require continuous learning and development opportunities.
- Competitors: By investing in Deloitte University, Deloitte differentiates itself from competitors and strengthens its competitive advantage in the professional services market.
- Attractiveness ' quantitative measures: The recommendations are supported by quantitative measures such as ROI, cost-benefit analysis, and activity-based costing, demonstrating the financial viability and attractiveness of Deloitte University.
Assumptions:
- The demand for professional services will continue to grow, requiring a highly skilled workforce.
- Technology will continue to play a significant role in shaping the future of learning and development.
- Deloitte is committed to investing in its employees and fostering a culture of continuous learning.
6. Conclusion
Deloitte University represents a strategic asset for Deloitte, enabling the firm to cultivate a culture of continuous learning and development, enhance its core competencies, and drive sustainable growth. By implementing the recommendations outlined above, Deloitte can solidify Deloitte University as a key driver of organizational success, ensuring its long-term financial viability and strategic importance.
7. Discussion
Alternatives:
- Outsourcing training: Deloitte could consider outsourcing some training programs to external providers, potentially reducing costs but potentially compromising quality and control.
- Focusing solely on technical skills: Deloitte could prioritize technical skills development over leadership and soft skills, potentially limiting the impact of Deloitte University on the overall organizational culture.
Risks:
- Financial sustainability: Deloitte University's financial sustainability could be threatened by economic downturns or changes in the professional services market.
- Technological obsolescence: The technology used in Deloitte University could become obsolete, requiring significant investments in upgrades and maintenance.
- Employee resistance: Employees may resist the implementation of new learning programs or the use of technology, requiring effective communication and change management strategies.
Key Assumptions:
- The demand for professional services will continue to grow, requiring a highly skilled workforce.
- Technology will continue to play a significant role in shaping the future of learning and development.
- Deloitte is committed to investing in its employees and fostering a culture of continuous learning.
8. Next Steps
- Phase 1 (Year 1): Conduct a comprehensive cost-benefit analysis and develop a robust performance measurement system.
- Phase 2 (Year 2): Expand the curriculum to include new programs on leadership development, emerging technologies, and industry-specific expertise.
- Phase 3 (Year 3): Invest in innovative learning technologies and develop a robust learning management system (LMS).
- Phase 4 (Year 4): Explore strategic partnerships and optimize the cost structure of Deloitte University.
By following these steps, Deloitte can ensure the long-term success of Deloitte University and its role in fostering a culture of continuous learning and development, driving organizational growth and strengthening Deloitte's competitive advantage.
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Case Description
It is October 2009 and Barry Salzberg, CEO of Deloitte LLP, has just returned from the groundbreaking of Deloitte University. When completed, Deloitte University would be a world class learning and development center owned by, and for the exclusive use by the employees of, Deloitte. Deloitte spent a significant amount of time and money on the training and development of its employees. Historically, this training had taken place at hotels and conference centers, not affiliated with Deloitte. The idea for the construction of a special-purpose, Deloitte-owned learning facility had been championed by Salzberg. He believed Deloitte University would allow the firm to "instill our values in our people through learning and development" which he thought was critical to Deloitte's long-term success. Salzberg had won over the necessary majority of the partners, but not all of them supported the University concept. As he thought about the future of this new facility, how could he ensure it would be successful?
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