Simo Susiluoto CEO Principal Adulta Institute of Further

Simo Susiluoto CEO, Principal Adulta, Institute of Further Education Finland

ADULTA, INSTITUTE OF FURTHER EDUCATION • Adult training centre, located in Southern Finland • Founded in 1972, incorporated company since 1995 • Facilities: Järvenpää, Tuusula, Kerava, Vantaa and Helsinki • Nearly 9000 students in 2004 • 184 staff in 2004 • Turnover for 2004 13, 5 million EUR • ISO 9001 quality certification since 1998

ADULTA, INSTITUTE OF FURTHER EDUCATION • Owned by four municipalities (Järvenpää, Kerava, Tuusula and Mäntsälä) • Main building in Järvenpää, 45 km north from Helsinki, 8 satellites in the metropolitan area • Mission statement: Our institute responds to the development needs of its customers by producing flexible high quality adult education and constultative services

SERVICES OFFERED BY ADULTA • Training courses for unemployed people • Self-motivated education • Courses for private individuals • Apprenticeship training • Training need surveys • Tailor-made courses for companies • Planning and subcontracting services • Production services • Consultative services • Accommodation services • Each course is an individual, separetely priced training product

ADULTA´S VALUES • The Client Valuing our clients, striving for their success and emphasing the confidentiality of the client relationship. • Quality and profitability Emphasising high quality training and good financial results. • Change and opportunity Setting our sights on the future, embracing change and the opportunities for continual learning and development. • Motivation and professionalism Creating a happy working environment that motivates our capable staff and ensures professionalism.

4 20 03 20 02 20 01 20 00 19 99 19 98 19 97 19 96 19 95 19 94 19 93 19 92 19 91 SALES GROWTH Milj. euro 14, 0 12, 0 10, 0 8, 0 6, 0 4, 0 2, 0 0, 0

FINANCING 2001 -2004 % 16000 14000 12000 10000 8000 6000 4000 2000 0 2001 2002 employment training apprenticeship training basic training 2003 2004 self-motivated education training for companies other incomes

AGES DISTRIBUTION FOR THE STUDENTS 1988 1400 1200 1000 800 600 400 200 0 20 -24 25 -29 30 -34 35 -39 40 -44 45 -49 50 -54 55 -59 60 -64

OPERATIVE PLANNING PROCESS IN ADULTA Mission Future megatrends The Board Adulta vision 2003, 2006 (Balanced Scorecard) Adulta strategies, objectives 2003, 2006 (Balanced Scorecard) Image survey (values) Quality audition ISO 9001 (values) Division Balanced Scorecard The result arguments of the division Budget 2004 Team Balanced Scorecard Team developing objectives and personal developing plans Atmosphere survey of the company (values) Team appraisals Student feedback (values) Key results for the team

MANAGING DIRECTOR PRINCIPAL PEDAGOGICAL LEADERSHIP Vice Principal Pedagogical. Developm ent ARTO Principal TECHNICAL DIVISION Director Communication and Culture Executive Secretary Quality INDUSTRIAL DIVISION Director IDA Director BUSINESS UNIT Director Automation Adulta Consulting Language and Culture Customer Relations Workshop Automation or KAT Internat. Hotel and Tourism Customer Service Electricity Metalwork & Welding LEHI International Trade Finance Data Communications Measurement Immigrannt Training Enterprise and Leadership Information Technology Projects & Development Sales ADMINISTRATION Director IT Training Construction Technology Metal Sales and Marketing IT Systems Secretarial Ma. Ra. Cat Services Projects Personnel Unit Finance ARTO = Adulta radio and television institute IDA = International Development Centre of Adulta Catering Preparatory Training Matrix and special teams

IMPORTANCE OR SHARED VISION AND STRATEGY • • On one hand, organizations set contrasting corporate objectives On the other hand, successful organizations know the following: • • What they have to accomplish to create corporate values How they can commit themselves to common corporate goals LONG-TERM PROFITABILITY SHORT-TERM PROFITABILITY PRODUCTIVITY CUSTOMER SATISFACTION PERSONEL GOALS COST REDUCTION MARKET SHARE QUALITY PROFITABILITY PER BUSINESS UNIT SALES

BALANCED SCORECARD FIVE KEY FACTORS • Clarifies the company vision and fulfills its strategy through follow-up and measurement • Leads the organization operations towards the desired future • Reveals the organization to its employees, how their input is an important part of the overall operations; (coverage and commitment) • Compensates traditional methods of economic analysis with more flexible strategy based measurements allowing more relevant points of view. • Simultaneously creates an overall plan and also considers the reasons and relationships which define the organization.

GENERAL FRAMEWORK FOR DEVELOPING MEASURES Vision Perspectives Strategic objectives If we achieve our vision, where do we stand? Success Factors What kind of decisive success factors can affect the main strategic goals? Key Measures What kind of measures can describe significant strategic orientation? Implementation Plan What kind of action plan can guarantee success? source: Olve-Roy-Wetter (1998) Financial Perspective Customer Perspective Business Process Perspective Learning & Growth Perspective

GENERAL FRAMEWORK FOR DEVELOPING MEASURES Vision Perspectives Strategic objectives If we achieve our vision, where do we stand? Success Factors What kind of decisive success factors can affect the main strategic goals? Key Measures What kind of measures can describe significant strategic orientation? Implementation Plan What kind of action plan can guarantee success? source: Olve-Roy-Wetter (1998) Financial Perspective Customer Perspective Business Process Perspective Learning & Growth Perspective

Adulta Oy Team/Division: STRATEGIC ALIGNMENT BALANCED SCORECARD 2005 Compiled: CRITERIA FOR SUCCESS MEASUREMENTS Printed: * 1(1) INITIATIVES FINANCE OPERATIONS DEVELOPMENT LEARNING CUSTOMER VISION 31. 12. 2005 MISSION:

THE BALANCED SCORECARD´S FRAMEWORK OF LINKED CAUSE-AND-EFFECT RELATIONSHIP FINANCIAL SCORE CUSTOMER SCORE BUSINESS PROCESS SCORE LEARNING & GROWTH SCORE

BALANCED SCORECARD STRUCTURE IN ADULTA Business Div. Vision Start. 2008 Succfact. Techn. Div. Vision Start. 2005 Succfact. Indicators Projects Techn. Div. Vision Start. 2008 Succfact. Adulta 2008 Vision Strategies Succes Factories Met. Engin. Div. Vision Start. 2008 Succfact. Internat. Div. (IDA) Vision Start. 2008 Succfact. TV/radio Inst. (ARTO) Vision Start. 2008 Succfact. Administrat. Vision Start. 2008 Succfact. Business Div. Vision Start. 2005 Succfact. Indicators Projects Adulta 2005 Vision Strategies Succes Factories Indicators Projects Met. Engin. Div. Vision Start. 2005 Succfact. Indicators Projects Internat. Div. (IDA) Vision Start. 2005 Succfact. Indicators Projects TV/radio Inst. (ARTO) Vision Start. 2005 Succfact. Indicators Projects Administrat. Vision Start. 2005 Succfact. Indicators Projects

BALANCED SCORECARD FOR ADULTA LTD (1) VISIO 31. 12. 2005 Adulta On. Line becomes STRATEGIC ALIGNMENT Each training division is to CRITERIA FOR SUCCESS A new online learning MEASUREMENTS - there will be 700 students INITIATIVES An ongoing programme of Continuous development of IT systems. Operations are profitable in all training areas. All training areas have several training projects where funding is combined methodically. There is sufficient awareness concerning sources of funding in every training area and team. Each team’s financial results are followed by division directors at all times. New premises and training areas are profitable. Training products grow in accordance with preliminary estimates at approx. 5 % over 2004. Adulta’s profit is 2 %. The Board reviewed/evaluated 25. 5. – 26. 5. 2005. Budjets are realised. All training divisions have some training with common sources of funding. Ok. related to the central processes is done between divisions amd especially with cooperation partners. (Peto). Ok. Renewal plans for IT systems are checked. (LN ja ES). IT training programmes are made more efficient. Ok. Training about sources of funding (A). FINANCE Comprehensive use of IT systems Adulta has functional and up-to-date IT systems, which support and serve operations. Less than 39% of students to remain unemployed after three months of employment office funded vocational training. Measurements are found to gauge the use of IT systems in training departments and teams. OPERATIONS DEVELOPMENT environment. training with for Adulta established practice and produce On. Line training for online- learning isbe taking An ongoing programmetrainers On. Line Each training division to learning componentan online A new there will 700 students preparatory training /ES of is in part commercially, especially by in online pedagogy. available. OPSO becomes established (apprenticeship) training. On. Linecompetences for 1. 11. 2005 bean onlinetraining for trainers produce Professional training - therepreparatory Ok. board decides the criteria for environment. taking training with 40 training will The the chosen areas of emphasis courses incorporating online selecting relevant areas practice and is in part preparation of each are defined and the first steps for in 1. 11. 2005 pedagogy. /ES of focus. commercially, especially learning by online learning component by Following Adulta has selected the 1/05. Ok. towards necessary - the number of trainers to have division in spring 2005, the strategies and points of Training divisions prepare development are taken. commercially will completed online pedagogical administration is to name the emphasis that available. OPSO (apprenticeship) 1. 11. 2005 Ok. 50 by the end of development plans and budgets. Sufficient funds for investment training to be areas which will have a special enable it to become a K 05. Ok. are allocated in the budget for focus (3 -5). training. country-wide training - ensure that the chosenbe 2005 training there will 40 2005 to provider. The number of cooperation project areas can start agreements is established in courses incorporatingtheonline The partnership strategy is accordingly. carried out. accordance with Cooperation partners are A partnership strategy is put partnership strategy. foundlearning by 1. 11. 2005 that will bring added together in spring 2005. Adulta is a desirable value to both sides and in cooperation partner. The form, content and methods All significant areas for Adulta. Emphasis is placed on the of putting together study plans - the number ofrequired OL course to havereviewed and renewed to a trainers programmes are approved. . Adulta’s training processes are organization and planning of High quality training are Functional working tools and in order and harmonised where training and on student carried out by Adulta. completed online pedagogicalsuffficient degree. (ES). Ok. methods for planning and applicable. customer service. Practical on-the-job follow-up are available and in Bonus incentives foster greater training carried out Training is bought for NTM working order. Student work training to be 50 by the end of(training for specialists in commitment. Employment through work according to objectives. feedback grades for practical Feedback from OPAL is placement is furthered by competence-based on-the-job training are at least always methodically reviewed guidance and the acquisition of examinations). Benchmarking 2005 3. 65 for all training divisions. in the training divisions. more training places.

BALANCED SCORECARD FOR BUSINESS DIVISION (LEO) To be an expert partner in the minds of our customers and to be wanted for long-term development projects. Operations differ according to target groups: • general government • large corporations • small and medium-sized companies • private individuals CRITERIA FOR SUCCESS Client maintenance is long-term and methodical MEASUREMENTS An average grade 4 for point 7 on company client feedback questionnaires. Clarification of the benfits and methods for carrying out blended learning programmes in small- and medium-sized enterprises Benchmarking of Kuopio sme programme. Partly in progress. Immigrants are familiar with Leo’s range of Immigrants are provided with training 40 immigrants in vocational a path leading to vocational training. Ok. A model is created for the evaluation and training. guidance of on-the-job training Student feedback to be an Guidance for on-the-job average of 3, 5 in training is developed organised by LEO INITIATIVES Marketing and sales plans, follow-up procedures established as working tools for company groups. Ok. Benchmarking of Kuopio adult education centre’s sme-programme and clarification ofbenefits of initiating/operating a corresponding programme. K-U/IA. To be carried out in the autumn. Systematic notification about career guidance from the start/IDA. Ok. Current practice of initiative clarified/ team leaders/ JH/KH CUSTOMER MISSION: Together with our customers LEO checks and renews competence in the workplace VISIO 31. 12. 2005 STRATEGIC ALIGNMENT We are able to make full use of our know-how concerning funding for training Sufficient awareness of sources of funding in all teams Training about the organization for all teams involved in vocational training Ok. Feedback utilization/review in teams to be standard practice in team meetings. Ok. Development days and training concerning for teams about sources of funding/ training managers IA. . Ok. Empl. Off. 760 t€ Voc. Qual. 96 Appren. 1. 261 Supp. 904 Noste 180 Company 228 Voluntary 60 Other 855 Total 4. 344 t€ The results of all teams to be Knowledge of financial matters to be positive after administrative further increased LEO’s balanced scorecard costs subtracted review/evaluation carried LEO’s balanced scorecard review/evaluation carried out 25. 5 - 26. 5. 2005. Provisions 1: 14 %. In the budget following a correction. Training about financial matters relating to teams /IA. Ok Ok. FINANCE value than our competitors OPERATIONS DEVELOPMENT LERNING We are able At least 60% of LEO personnel methods of working are The system of organizing activities is Cooperation between Description is present, team Common LEO is to identify be teams works well within a documented to receive training in Ok. new agreements updated. considered to the agreed/Team agreements. Ok. common leadership a good workplace Information from work climate surveys is Response rate 75%. Review and the present structure online learning environment. Ok. suggestions for used in the development of activities development by team/ We are able Common methods of working are teamleaders/IA. Ok. identify andtofuture Varied cooperation We will participate methodically in the developed agreed between teams and work the present same cooperation groups as our partners with interest groups is begun. Performance appraisals and future competence teams allocated resources for study Ok. Each team allocated to be done in an online teams/IA. Ok. comptence All teams allocated resources for study of Use of the new learning At least 60 % of LEO personnel to needs of the online environment receive training in the new online allocated Ok. needs of of the online learning environment the workplace tutor/team. Each teamleaders. Ok online leaders. an learning environment. Ok. tutor/team the workplace Leo’s product Investment resources to be Training support services and classroom Feedback from students to be at Sufficient office services/IA, increase in environment is used to develop operations facilities are of good quality and functional least 3. 6 in all areas. resources/IA, “updating” of premises quality-oriented /Board. Ok. Existing key products to be Tailoring of training to target groups in line Feedback from customers and We offer our further improved. Ok. with core concepts students. Planning and evaluation of training Ok. customers better following to common guidelines. Ok. Ok.

BALANCED SCORECARD FOR DATACOMMUNICATIONS-TEAM A strategy for taking care of clients. Customer feedback of at least 4. 1 In Increased awareness about clients. particular feedback about suitability of Accurate segmentation and selection training to be at least 4. 0. of target groups. At least 2 -3 new long-term company A project to produce web-based clients. We develop training productsstudy materials. (e. Tie. Net) in Sales of web-based courses to account collaboration with companies for 10 % of total sales. The team develops its transparency, cooperation and communication directed at companies. INITIATIVES Thorough marketing and sales plans created for the team. Drawing up of plans for customer care. Description and distribution of target groups. • Staff in personal training for Follow-up and analysis of member’s personal five days Each teambe 5% of the team’s share competition. of sales to total sales the team of • Training for as a personal sales target. one e. Eemeli competition day Staff motivation and training. • Staff in personal training for Each team member is provided • Online training two days five days with a personal knowledge and Each team member takes personal training half one day for the team of skills development plan. • Product • • Trainingtraining two daysa day responsibility for an area of Online development. • sales and • • Product training half a day marketing training. Personal Development plans sales and marketing training Competence profiles Successful resources which meet for one day requirements. for one day • NTM (training for specialists in correlation with best-selling team’s competence in this competence-based examinations) products and services area. one day • NTM (training for specialists in competence-basedat examinations) in Tieke’s We will seek well-known New and existing models of We will participate in least two Participation cooperation partners throughcooperation and their continuing nationwide IT security project. one day nationwide development or training seminars and projects. development. projects. Training team Our towards is Adulta’s diplomas foremost expert on online learningcontinue to from We Our team is Adulta’s develop content foremost expert on online the point-of-view of online-learning from the point-ofprogrammes, and methods view of both content and both and guidance. content for exploiting the online learning as well Each team member has guidance. environmentthe wholeas developing a good command of the online learning environment and is able to advise clients. We will participate in nationwide training projects and find new cooperation partners. We are Finland’s highest quality IT trainer� Results from company training, development projects and supplementary vocational training Acquisition of supplementary vocational training development project/state funding. We will concentrate our Participation in future projects – resources in the staying on the pulse of the times. development of our products and services by working in close cooperation with the client. Cooperation beyond team and departmental borders as well as with outside partners. Selling competence. The team achieves its targets for results. More effective use of resources. Quality and the comprehensive We will increase the amount monitoring of the whole process of online of customer care. Exceeding learning and emphasize our customer expectations long-term clients Over 50% turnover. Better allocation of resources (mental and physical) and utilization of know-how. - Resource calendar - Training programmes for clients - Increased sales through a sales campaign CUSTOMER MEASUREMENTS LERNING In our training we listen to the customer and emphasise results. CRITERIA FOR SUCCESS OPERATIONS DEVELOPMENT We are a well-known and respected trainer in IT company and community training investments. STRATEGIC ALIGNMENT FINANCE VISIO 31. 12. 2005

TEAM COMPETENCY NAMES OF TEAM MEMBERS TEAM TASK Competency level Completely competent Nearly competent Half competent Partially competent Requires training Competence no needed

Adulta Oy, Technical Sector J. Jussila INFORMATION TECHNOLOGY -TEAM 1. Team margin (€) TARGET 1: TARGET 2: 2. The teams’s sales to the privaty sector (share of turnover) TARGET 1: TARGET 2: 3. The team’s internal and external jointoperations TARGET 1: TARGET 2:

Balanced Scorecard EFQM Excellence Performance strategy, Towards A solid foundation General Performance Evaluation Are the correct issues being addressed? Long term Inspection – From present to the future, where do we want to go? Context dependent – organization specific solution Selection, based upon targeted strategic principles Vision Based: Subjective and Value Based A whole from balancing the influence of different issues recognizing the relationships Are we doing the right things? Cross sectional inspection – Historic and present day; where are we now? Context independent – General Solution Full coverage; different issue by issue emphasis Fact based, working towards objective based evaluations Not judgmental of imbalance or of ongoing evaluation Health Inspection – An evaluation of the present organization; how are we? Fulfilling the Strategy through regular principled evaluation of chenges, what if scenarios? A Company’s basis for Strategy – Excellent Performance and Competitiveness Balanced Scorecard and EGQM

• Advance Methods § Top Down: management – Entire Organization § Pilot: management – Entire Organization § Management Scorecard Only § Entire organization at the same time § Comes to provide direction for the concern § Simultaneous pilots § Either in use jointly or then by individual daparments / divisions There actually no correct advanced methods; only advanced quantity of goals and an accompanying organization culture.

NOT WORK ACCORDING TO TRAINING, BUT TRAINING ACCORDING TO WORK

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