Corporate Universities and Traditional Universities: Partners or Competitors?

I have been asked if corporate universities (CUs) will replace traditional universities (TUs). The answer is clearly "no." In fact, a better strategy is to partner with one or more TUs.

TUs teach a wide range of subjects from the sciences to the humanities. There is no need for a CU to teach any of these subjects (unless, of course, the company's core competences are in the sciences or the humanities). Generally, these subjects are best taught by the TU.

TUs also have business schools. Will corporate universities replace TU business schools? The answer again is "no." And again, I would suggest a better strategy is to partner, not to compete.

Why would a company with a CU send managers to a TU's MBA program? Actually, it's a good idea. I am a faculty member of the University of North Carolina's MBA program in Greensboro, NC. In every class I have students from a wide range of companies and industries in North Carolina. These diverse students bring ideas to the classroom that may be unheard of in other companies and industries. The subjects we cover in the classes are applicable to managers in every organization. A TU's MBA program is an excellent way to obtain general business and management knowledge.

So, what is the value of the CU? The CU adds value by teaching (or facilitating the learning of) company-specific and industry-specific knowledge and skills. This cannot be overemphasized. In an era of knowledge-driven companies, core competencies include knowledge and skills of the organizational members. No longer are physical property and equipment the sources of sustainable competitive advantage.

Let me return to TUs for a moment. TUs conduct research in addition to teaching. Should CUs become research centers? The same strategy again: partner, don't compete. Keep in mind what TUs are designed for.

TUs receive funding to conduct research in a wide range of subjects: everything from the sciences (social and physical) to the humanities. TUs conduct "pure" research. A TU's research adds to our general knowledge. But, it may provide little or no "applied" knowledge for the business community.

Should a CU conduct research? Again, generally speaking, "no." I have academic friends (tenured professors) who are masters at designing and conducting research. Here is my suggestion to corporate clients: If you need applied research (research with specific business applications), consider partnering with a local university. The corporation funds the research; the university conducts the research. A win/win for everybody.

Can you see a consistent strategy here? TUs provide general knowledge and skills required of all managers and professionals. CUs can offer company-specific and industry-specific knowledge and skills. TU's have research designing and conducting expertise. Partner, don't compete!

For more information on CUs read Corporate Universities by Jeanne Meister, or see Chapter 8 of my book, Strategic Organizational Learning.