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Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
ICEM 2009 international conference – Abu Dabhi – October 7th 2009
Dr. JM Luzarraga Mondragon University
MONDRAGON EDUCATION IN A KNOWLEDGE INTENSIVE GLOBAL ECONOMYA Corporate experience based on
“Entrepreneurial Cooperative Teams”
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
How do we create more knowledge?
Are we ready for “optimal disconfort” co-creation?
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
CHECK IN:Who am I?What are my passions?
What is my life dream?
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Index
1. Mondragon Cooperative Corporation (1956-2006)1.1 Historical background
1.2 Leading thoughts and cooperative principles
1.3 Hightlights at December 2007
1.4 Mondragon University & Corporate education
2. Current challenges of a Knowledge Intensive Global Economy & how Mondragon faces it (2007-)
3. Mondragon University European official degree on “Entrepreneurship & Innovation”
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
1. Mondragon Cooperative Corporation(1956-2006)
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Starting point (1940) Massive unemployment & social crises: Spain dictatorship after civil
war. Lack of any education: technical or in business Steel-mechanic industrial roots, small & local Closed and protected market Lack of any technology
A shared dream…
EDUCATION & CO-OPERATIVE ENTREPRENEURSHIP TO SURVIVE & TRANSFORM THE SOCIETY!!!
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Mondragon education: Leading thoughts “The world is not there to contemplate it but to transform it”
“Share knowledge & education to democratize power”
“A technical school that it is not at the same time a school for human being development, is caving its own grave”
“Work and study hast to go hand by hand”
“God ideas are those ones who transform into real actions”
“Se ha dicho que el cooperativismo es un movimiento económico que utiliza la acción educativa. Pudiéndose también alterar el orden de la definición diciendo que es un movimiento educativo que utiliza la acción económica”
JM Arizmendiarrieta
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Prior to industrial co-operatives creation:– 1943: In-factory technical training– 1948: Engineering Technical school– 1956: First industrial co-operative ULGOR (13 years later)– 1966: First local co-operative cluster ULARCO (inter-cooperation)– 1974: Degree studies / international university agreements– 1998: Mondragon University -3 faculties: Engineering MGEP –
Business ETEO – Education HUEZI
Academic course: 1974-75 2007-08
– International experience: 2 110– Post-graduate: - 459 – Graduate: - 3.248– Courses: 237– Technical: 815
Mondragon education: historical facts
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Number of companies: 107 Workforce: 103.731
– Worker members: 80.9%– Female/male members:
42.2%– Abroad: 14.261
Total sales: 15.056 M. euros (57% international sales ind.)
Business ranking if listed:– Spain: 7th – Europe: 32nd – Forbes 500: 462nd
Group activities: Mondragon University, 12 Technology Centers & Garaia Innovation Park
Body Builders
Components
Construction
Elevation
HouseholdGoods
Engineering & Services
MachineTools
Industrial DivisionFinancialDivision
Mondragon Presidency / General Council
Source: MCC - 2006
Industrial Systems
Tools & Systems
Industrial Automatisation
Automotive
Equipment
Mondragon GroupMondragon Congress / Permanent Commission
DistributionDivision
Highlights at Dec 2007
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Mondragon background & leading thoughts A worker cooperative network started by Father Arizmendiarrieta in 1956
in Mondragon, a 30.000 people village in the Basque Country (Spain)
Named by several academics as one of the best examples of democracy at the work place (Macleod, Vanek, Williamson, Malone, Whyte & Whyte,…)
VISION: The companies that make up MONDRAGON share their commitment to cooperation and democracy in the workplace, backed by a unique system of worker participation.
VALUES:– Cooperation: owners & main actors– Participation: management involvement– Social Responsibility: fair distribution of wealth created– Innovation: permanent change
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Mondragon Worker Co-operative principles Worker Co-operatives: working people are the heart of the
companies
Committment to the local environment & society: continuous experimentation to satisfy society needs (Alecop, MU, Eroski,…)
Business excelency, assuming the leadership & maximum competitiveness using the cooperative legal form
MONDRAGON CO-OPERATIVE PRINCIPLES:1. Open membership 6. Incomes/wages solidarit2. Democratic member control 7. Inter-cooperation3. Work over ownership 8. Social transformation4. Capital as a tool 9. Universal character5. Management participation 10. Education and training
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Devoted to employment creation: Mondragon net-job growth: 1956-2006
Source: ex novo - Adaptation from MCC - 2005
0
10000
20000
30000
40000
50000
60000
70000
80000
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Years1) 2) 3) 5)
1) First production plant abroad2) MCC holding structure creation3) Started Eroski Group
expansion all over Spain / 5 production plants abroad
4) 26 Production plants abroad5) 57 Production plants abroad
4)
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Companies created on diverse sectors & industries:
Avoid companies shut-downs: every Mondragon company has suffered a critical difficulties period over its history
Number of Mondragon cooperative companies: 1956-2003
Source: Clamp 2003
Committed to “companies creation & survival” through inter-cooperation
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Mondragon Factories abroad
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
International “multi-localization” industrial strategy –“Creative vs. destructive international trade”
1) 2) 3) 5)4)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
Source: ex novo - Adaptation from MCC - 2007
Years
1) First production plant abroad2) MCC holding structure creation3) 26 Production plants abroad4) 65 Production plants abroad
1) 2) 3) 4)
Total employees
Employees abroad (since 99)
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
What about the Retail division? Main facts from 2008:- Total sales 9.013 M. euros- 2.440 centers: 115 hyper, 1029 super, 274 travel agencies, 53 petrol stations, 44
FORUM (sport), 300 IF (perfume), 6 ABAC (books). In France: 4 hyper, 16 super & 17 petrol
stations. In Andorra: 4 IF (perfume) - 2.000 workforce growth (reaching 56.000)- Opening of 164 new retail centers (Hyper, super)- Strategic decision to transform conventional companies into cooperatives:
- It might become the bigger cooperative worldwide with more than
50.000 working members - At the end of 2008 already 14.733 people participate in ownership,
profits and management (1.475 annual growth)
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Prior basement/seed to the industrial companies creation
Devoted to University-Companies integration
Co-operative & participatory University: companies + students + teachers (workers)
Village University: devoted to local community service
Committed to Entrepreneurship & R+D+ innovation
Mondragon University: identity signs
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
1. Local community Technical, social & business education
2. Supports “education & work” combination (ALECOOP 1966)
3. Technology Research & innovation– Technology centre IKERLAN (1974)– Innovation Pole GARAIA (2007)
6. New companies creation & entrepreneurship (1984 – SAIOLAN 1996 – Mondragon Team Academy 2008)
7. International education: (since 1974, in 2008 (110 + 12)
Mondragon University: main roles
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
What are the main challenges of our “Knowledge intensive global economy”?
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
3. Mondragon faces “Knowledge Intensive Global economy” current challenges
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Starting point (Mondragon 2007) Solid group expanded internationally Successful structures in the past European production industrial crises: employment threat Global & interconnected economy Local communities on threat: urban massification, internal migration &
radical social differences among & within countries Lack and difficulties to create new business Need of a change/evolution of our competetitive model:
– FROM production/manufacturing TO Knowledge-Research-Innovation– FROM local TO Glocal
Current challenge…
INNOVATION & MULTI-LOCALIZATION TO DEFEND LOCAL COMMUNITY STABILITY & ENABLE SOCIAL
TRANSFORMATION “GLOCALLY”!!!
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Challenges of our global knowledge society Labour force global competition: employment threat
Fuente: ex novo a partir de Behind the China Kaledoiscope - CH-ina Guide 2005, Eustat y MCC.
Compensación medio por hora de trabajadores de línea de producción, 2003– 09, USD
0.8 1.271.12 1.681.52.382.45
3.282.7
3.832.75
3.93.64
5.47
14.29
17.77
21.0120.68
23.91
21.86
25.34
30.6
34.46
0
5
10
15
20
25
30
35
40
2003 2009
16.68
12.32
20.31 20.99
23.73
CHINA
INDIA
RUSIA
MEXICO
POLONIA
BRASIL
R. CHECA
ESPAÑA
FRANCIA
JAPON
USA
ALEMANIA
EUSKADI
MCC
Nota: se aplica tipo de cambio enero 2003 (1 Euro=1.067USD). Los datos actualizados a III-2007 reflejan un incremento superior de coste hora siendo en MCC= 23.7, Euskadi=20.69 y España 15.43.
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Western Europe production crises: unemployment threat
2,7 m
1 m
1 m
0,7
0,2
0,2
0,5
1,6 m
0,4
1,7 m
Zona A
Zona B Zona C Zona D
5,3 m
3,7 m
0,2
1,6 m
0,2
0,8
0,2
Zona A:• Cooperativa cubre muy bien
( 0 - 500 km)Zona B:• Cooperativa satisface bien
(500 – 1000 km)Zona C:• Cooperativa satisface mal
(1000 – 1500 Km)
Zona D:• Cooperativa no cubre
(+1500 Km)
Posible ubicación de un hipotético competidor en la zona del Este
AUTOMOTIVE SECTOR PRODUCTION SUPPORTEUSKADI vs. EASTERN EUROPE LOCATION
Source: Roland Berger
PRODUCTION 2008 (Million Units)
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Presence in Emerging countries: the power of BRIC countries
Source: UN Development Report 2006
World population by country %
CHINA
INDIA
RUSSIA
MEXICO
POLAND
BRAZIL
CZ REP.
COLOMBIA
JAPAN
USA
0%
5%
10%
15%
20%
25%
1975 2003 2015
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Presence in Emerging countries: the power of BRIC countries
Source: Goldman Sachs BRICS Europe & Asia - May 2007
BRIC countries contribution to World GDP growth
BRICs
China
India
Russia
Brazil
0%
10%
20%
30%
40%
50%
2005 2015 2025 2000 05 10 15 20 25 30 35 40
USAJapanGermanyUK
G8
Italy JapanGermanyFrance
Italy GermanyFrance
Italy GermanyFrance
The BRIC’s race to exceed G6 growth
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Source: Human Development Report - UN 2005
Population with less than 1$ income a day by region
1981
1987
1993
1999
20010%
10%
20%
30%
40%
50%
60%
WORLD Europe andCentral Asia
LatinaAmerican &
theCaribbean
Middle East& northAfrica
South Asia Sub-SaharanAfrica
Challenges of our global knowledge society Threat for Local communities: massive urbanization, internal
migration & radical social differences among countries
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Threat for Local communities: massive urbanization, internal migration & radical social differences among countries
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Global & interconected economy
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Global economic recession & “short-term” “speculative”, “wasteful consumer” & “neo-liberal” economic society model in crises: unemployment global threat
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Global economic recession & “short-term” “speculative”, “wasteful consumer” & “neo-liberal” economic society model in crises: emerging countries opportunities
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Sustainability threat due to a fossil energetic model & a wastefull consumer society: green energy & production opportunity
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Reaching “bonsai” consumers: Social entrepreneurs & Bottom of the Pyramid strategies
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Knowledge competitiveness: change management, learning communities, experience economy
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Knowledge competitiveness: social networks, open innovation
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Knowledge competitiveness: social networks, open innovation
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Knowledge competitiveness: learning organizations
SELF-REALIZATION
LEARNING SELF-MANGED TEAMS
SHARED VALUES
MENTAL MODELS
SYSTEM THINKING
FIFTH DISCIPLINE – Peter Senge (MIT)
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Knowledge competitiveness: learning schools
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Knowledge competitiveness: not inidviduals or groups but TEAM PLAYERS, Not makers but CREATORS
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Digital working, learning & living collaborative environments: sinergies among paper-paperless office, user driven experience,…
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Time management & atention economy: Everyone become Leaders & Caordic organizations
– 50% to lead yourself– 20% to lead your colleagues– 20% to lead your superiors– 10% to lead yourself
Challenges of our global knowledge society
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Starting point (Mondragon 2007) Solid group expanded internationally Successful structures in the past European production industrial crises: employment threat Global & interconnected economy Local communities on threat: urban massification, internal migration &
radical social differences among & within countries Lack and difficulties to create new business Need of a change/evolution of our competetitive model:
– FROM production/manufacturing TO Knowledge-Research-Innovation– FROM local TO Glocal
Current challenge…
INNOVATION & MULTI-LOCALIZATION TO DEFEND LOCAL COMMUNITY STABILITY & ENABLE SOCIAL
TRANSFORMATION “GLOCALLY”!!!
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Many inititaives in place… Self Managed teams: New MONDRAGON corporative Management Model New business promotion strategy: Corporative promotion centre Corporate funding for internationalitation, innovation & new business
creation Intra-entrepreneurship: create from inside strengthes “re-invent” Education on entrepreneurship & innovation: Mondragon University
European degree & Master Business incubation: local &global business, international networks
(Saiolan) Mondragon International clusters: China, India, Polonia,.. Business inteligence Open Innovation: OBEA research center Customer devotion: mass customization & co-creation Experience economy: industrial services & experiences International Multilocation (sales, production, research, education &
entrepreneurship) & Multicultural management Digital tools: web 2.0 (blog, wiki, social networks …)
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Align by a new Mondragon Corporative management model: “self managed teams” 1996 – First Corporative
Management model based on “Total Quality” model (EFQM).
1997 – 2000 in practice developing new management tools.
2002 Best Corporative Practices
2006 new management model based on “self Management teams” with “Basic Cooperative Pinciples” at the heart
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
How can we create/trained
the next leaders for our Knowledge Intensive Global
economy??
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
4. Mondragon University European Degree on Entrepreneurial Leadership & Inovation
LEINN
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Why LEINN has been created?
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Because European companies need young professionals capable to:• Work in entrepreneurial self-managed teams• With global mindset & international experience• Able to lead the organizational change• To lead the innovation process• To develop new business and innovative products
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
LEINN key elements
1) Team Learning 2) Finish education(Team Academy)
4) Internacional Experience (Finland, USA, China, India,…)
3) Real Team companies
5) PASSION & ENTHUSIASM
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Partner of Team Academy Network
Entrepreneurial unit created in 1993, award as Excelence higher education unit in 2000 by Finish Education Ministry
• Educational model based on Teamwork, real companies creation,
customer relations, reading books & team self management.
• Students sale an average of 10.000 euros before graduating
inidvidually
• 30% of graduate students become entrepreneurs (4% average in
Finland, 0.5% in Spain).
• 60 graduates annualy, more than 40 companies created since
1993.
• Learning methods applied in 17 universities
• An International network with more than 1500 peole (SOL network).
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
TA FINLAND
Mondragon TEAM ACADEMY
Languages: english, chinesse, basque & spanish
Paperless Office: Tablet PC + digital
environment
International learning journeys: Finland, BRICM & California
Real Team Learning
Cooperatives
Customers + Investors relationship
R
CC
T
LLearning contract
Dialogue Sessions
CustomersTeamCoaches
RocketModel
Basic learning tools
Books
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
NOT Teachers… but TEAM COACHES ROLE OF TEAM COACHES
1. Ask questions 6. Transmit enthusiasm2. Create space for dialogue 7. Lead by example3. Suggest books 8. Commit mistakes4. Share inspiring stories 9. Feel ridiculous (Socrates)5. Connect companies network 10. Mentoring
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Método finlandés: Team Academy
Nuestra forma de aprender
- Diálogo
- Libros de lectura
- Acción: Proyectos con empresas
Not students… but “Team Entrepreneurs”
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Weekly activity: example
8-12: Training Session
MondayTuesdayWenesdayThursdayFriday
14-15: Customer Visit
15-17: Work on Projects
8-10: Team leadership meeting
10-12: Project meeting
12-14: Reading books
8-12:
14-18: Work on projects
10-12: Customer Visit
14-18: Write and Essay of last book read
8-12: Work on projects
14-16: Work on shared tasks
16-18: 15-17: Work on Projects
Training Session
Project meeting
8-10: Financial leadersmeeting
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Not Teachers… but “Team Coaches”
ROLE OF TEAM COACHES 1. Ask questions 7. Transmit enthusiasm 2. Create space for dialogue 8. Lead by example 3. Suggest books 9. Commit mistakes 4. Share inspiring stories 10. Feel ridiculous
(Socrates) 5. Connect companies network … 6. Mentoring
Our MU Team Coach have:– Acreditation as TA team-entrepreneurs coach “Teammastery
program”– International experience– Research expertise (PhD)– Teacher experience– Entrepreneurial experience
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Learning JourneysMONDRAGON companiesTeam Academy Network
International experience & networking
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
Academic sructure
Estancia Finlandia 5
ECTSComún 55 ECTS 1er
Curso
Estancia EEUU 5
ECTSComún 47 ECTS Optativas
8 ECTS2º
Curso
Estancia BRICM 6
ECTS
Común 40 ECTS
Optativas 4 ECTS
3er Curso
Especialización10 ECTS
Prácticas especializadas 30 ECTS
Optativas 4 ECTS
4ºCurso
Proyecto/ Trabajo final 26 ECTS
Especializaciones: (1) Biociencias, (2) Empresas Digitales, (3) Empresa Social, (4) Economía de la Experiencia
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
CHECK OUT:
LEINN is the First European degree on Entrepreneurship & innvation
How can you help & cocreate with us?
Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009
شكراEskerrik askoMuchas graciasThank you谢谢你
“Our strength does not lead to struggle but co-operation”
P. JM Arizmendiarrieta - 1956