Abu Dhabi ICEM 2009 Mondragon Education & Entrepreneurial Teams

Dr. JM Luzarraga - Mondragon University – Abu Dhabi - October 2009

ICEM 2009 international conference – Abu Dabhi – October 7th 2009

Dr. JM Luzarraga Mondragon University

[email protected]

MONDRAGON EDUCATION IN A KNOWLEDGE INTENSIVE GLOBAL ECONOMYA Corporate experience based on

“Entrepreneurial Cooperative Teams”


How do we create more knowledge?

Are we ready for “optimal disconfort” co-creation?


CHECK IN:Who am I?What are my passions?

What is my life dream?


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”


1. Mondragon Cooperative Corporation(1956-2006)


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!!!


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


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


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


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


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


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)


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


Mondragon Factories abroad


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)


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)


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


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


What are the main challenges of our “Knowledge intensive global economy”?


3. Mondragon faces “Knowledge Intensive Global economy” current challenges


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”!!!


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.


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


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



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



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


Threat for Local communities: massive urbanization, internal migration & radical social differences among countries



Global & interconected economy



Global economic recession & “short-term” “speculative”, “wasteful consumer” & “neo-liberal” economic society model in crises: unemployment global threat



Global economic recession & “short-term” “speculative”, “wasteful consumer” & “neo-liberal” economic society model in crises: emerging countries opportunities



Sustainability threat due to a fossil energetic model & a wastefull consumer society: green energy & production opportunity



Reaching “bonsai” consumers: Social entrepreneurs & Bottom of the Pyramid strategies



Knowledge competitiveness: change management, learning communities, experience economy



Knowledge competitiveness: social networks, open innovation



Knowledge competitiveness: social networks, open innovation



Knowledge competitiveness: learning organizations

SELF-REALIZATION

LEARNING SELF-MANGED TEAMS

SHARED VALUES

MENTAL MODELS

SYSTEM THINKING

FIFTH DISCIPLINE – Peter Senge (MIT)



Knowledge competitiveness: learning schools



Knowledge competitiveness: not inidviduals or groups but TEAM PLAYERS, Not makers but CREATORS



Digital working, learning & living collaborative environments: sinergies among paper-paperless office, user driven experience,…



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



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”!!!


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 …)


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


How can we create/trained

the next leaders for our Knowledge Intensive Global

economy??


4. Mondragon University European Degree on Entrepreneurial Leadership & Inovation

LEINN



Why LEINN has been created?


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


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


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).


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


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


Método finlandés: Team Academy

Nuestra forma de aprender

- Diálogo

- Libros de lectura

- Acción: Proyectos con empresas

Not students… but “Team Entrepreneurs”


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


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


Learning JourneysMONDRAGON companiesTeam Academy Network

International experience & networking


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


CHECK OUT:

LEINN is the First European degree on Entrepreneurship & innvation

How can you help & cocreate with us?


شكراEskerrik askoMuchas graciasThank you谢谢你

“Our strength does not lead to struggle but co-operation”

P. JM Arizmendiarrieta - 1956