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