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Successful Contract Training:A Grounded Theory for a
Sustainable Business Model
presented at the
National Council for Workforce Education Conference
by Martin Reimer, PhD
October 31, 2014
IntroductionThe purpose of this study was
to create a sustainable business model that can be used by
community colleges and other higher education institutions
that wish to increase the enrollment and revenue of their
contract training programs.
Statement of the Problem
• There is a shortage of skilled workers in the United States for companies to employ.
• Training needs of employers have expanded and accelerated
• Although some community colleges have had some success in establishing sustainable contract training programs to train workers, many community colleges are still operating under the traditional, adult education model.
Research Questions
• What are the primary, or essential, elements that contract training programs need in order to create a sustainable business model?
• What variables affect these elements and to what extent?
• What leadership characteristics are common in successful contract training programs?
Methodology
Mixed Methodology• Research Design
• Multicase Study
• Interpretive Approach
• Ground Theory
Methodology
Instrumentation• Learning Management Systems (LMS)
variables
• Financial Results
• Contact Hours
• Regional Employment Growth
• Survey (using 4 point Likert Scale) categories
• Leadership
• Outreach
• General
MethodologyData Collection• Quantitative: Empirical records from state and
community college databases were obtained and a survey was issued to 22 participants from four Iowa community colleges .
• Qualitative: Interviews with 22 participants from four Iowa community colleges including executive-level leaders, midlevel managers, and other staff.
MethodologyData Analysis• Processes and Techniques
• Comparative Method of LMS Empirical Data
• Descriptive Analysis of Surveys & Interviews
MethodologyData Analysis (cont)• Coding
• LMS Empirical Data
• Revenue
• Contact Hours
• Revenue per District Employment
• Contact Hours per District Employment
• Revenue per Contact Hour
MethodologyData Analysis (cont)• Coding
• Surveys
• Leadership elements
• Marketing elements
• General elements
• Comparative approach to determine if survey perceptions matched LMS empirical data
Methodology
Data Analysis (cont)
• Interviews
• Comparative approach to determine if interview perceptions matched survey and LMS empirical data
• Compared similarities and differences between participants and institutions
Results: Research Question 1
What are the primary, or essential, elements that contract training programs
need in order to create a sustainable business model?
Results: Research Question 1
Findings• Identified 16 primary, or essential,
elements by meeting the criteria of having participants from at least three of the four community college rate the element with a mean score higher than 3.75.
Results: Research Question 1
Findings (cont)
Essential elements OverallCommunity College
One
Community
College Two
Community
College Three
Community College
Four
Flexible delivery 4.00 4.00 4.00 4.00 4.00
External partnerships 3.95 4.00 3.83 4.00 4.00
Customized curriculum 3.95 4.00 3.83 4.00 4.00
Executive leadership support/direction 3.95 4.00 4.00 4.00 3.80
Passionate/engaging/entertaining instructors 3.91 4.00 3.83 4.00 3.80
Formalized strategic/operational plan 3.91 4.00 4.00 4.00 3.60
Consistency in vision 3.86 3.67 3.83 4.00 4.00
Knowledgeable instructors 3.86 3.50 4.00 4.00 4.00
Consistency in execution 3.82 3.83 3.67 3.80 4.00
Professional drive to succeed 3.82 3.67 3.67 4.00 4.00
Ability to market programs 3.82 4.00 4.00 3.60 3.60
Focused business-to-business marketing strategy 3.82 3.67 3.67 4.00 4.00
Formalized mission/vision 3.82 4.00 3.83 3.60 3.80
Culture of innovation 3.77 3.83 3.67 3.80 3.80
Ability to deliver training onsite 3.77 4.00 3.33 3.80 4.00
Fiscally operating in the black 3.73 3.33 3.83 4.00 3.80
Table 30. Essential Elements for Successful Contract Training
Results: Research Question 2
What variables affect these elements and to what extent?
Results: Research Question 2Findings
• Three common themes emerged
• Leadership
• Adaptable and engaging learning
• Partnerships• Unable to determine to what extent variables
affect essential elements
Results: Research Question 3
What leadership characteristics are common in successful contract training
programs?
Results: Research Question 3Findings
• Leadership characteristics most often rated highest
• Leadership characteristics needed for successful contract training aligned with identified leadership characteristics deemed important in literature review
Conclusions
Leadership• consistency in vision• consistency in execution• professional drive to succeed• executive leadership
support/direction• formalized
strategic/operational plan• formalized mission/vision• culture of innovation; and• fiscally operating in the black
Adaptable and Engaging Learning
• flexible delivery• customized curriculum• passionate/engaging/entertaining
instructors• knowledgeable instructors• ability to deliver training onsite
Partnerships• ability to market programs• external partnerships• focused business-to-business
marketing strategy
Successful Contract Training Business Model
Does the model work?
Source. Annual Condition of Iowa’s Community College Reports
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
(70%)
(50%)
(30%)
(10%)
10%
30%
50%
NC Growth in Iowa FY07-FY13
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Contract Training Contact Hours vs. FTE vs. Revenue
Contact Hours FTE Expense Revenue
Does the model work?
Prior to
study
During
study
Integrating model after
study
Conclusions• Leadership needs to create a strategic vision
• Leadership needs to provide support and direction to ensure the department operates in a fiscally positive manner
• Contract training departments need to have adaptable, engaging education
• Contract training should not be built on the credit model
• Curriculum should be competency based and delivered in a customized fashion
• Trainers need to be both engaging and knowledgeable
• Contract training departments need a focused business-to-business marketing plan based on long-term partnerships
• Training cannot be delivered without knowing intimately what clients need and in what manner they need it
• Contract training programs need to spend time and effort to understand the desired goals of their clients before program creation
Recommendations• Follow-up study to determine continued success
of each institution
• Collect and analyze both relevant revenue and expenses for each contract training program
• Examine what determines successful contract training from the point of view of external stakeholders
• Compare unsuccessful contract training programs to successful contract training programs to determine what essential elements prevent sustainability
• Study how different forms of curriculum development and delivery play a part in creating a sustainable contract training program