Cenquest degree program — a boost for employee ROI?

Internet Strategies for Education Markets: The Heller Report, March, 2002

The days of fooseball tables and latte machines may be over at dotcoms, but that doesn't mean employers have totally given up on offering perqs to employees. It's just that these days, corporations want to see a visible return on investment, or ROI. Portland, Oregon-based Cenquest (www.cenquest.com) believes it's got the answer.

Cenquest Founder, president and ceo LaVonne Reimer thinks that if a corporation is going to cough up the money to finance an employee's graduate studies, it ought to get something concrete in return. Enter the company-specific graduate degree, a concept that's been around for a number of years, but is picking up steam in corporate America. Cenquest has just signed separate deals with IBM and Microsoft to develop and deliver company-specific degrees for their employees. IBM workers will now be able to earn a Master's Degree in technology commercialization from the University of Texas at Austin through its IC2 Institute. Microsoft will participate in accredited graduate technology management courses from Oregon Health and Science University's School of Engineering and Science.

The idea is pretty simple. Let's say you work at Intel, and you're interested in getting your master's degree in business. Since May of 2001, Intel employees have been able to enroll in a Cenquest-delivered MBA program from Babson College.

Intel picks up the tab for your degree, and in return, your coursework focuses on specific Intel corporate issues, goals and business development. Employees who graduate walk away with a Babson -- not an Intel -- MBA, and the company gets workers with a deeper knowledge of Intel. "We're delivering corporate payback that's really resonating in today's economy," Reimer explains.

Cenquest and the educational institution each take a cut of the tuition, with the percentage depending on the range of services provided. The fees are either per degree or per course, depending on the structure of the corporate deal.

Windows One for the Gipper?

But, is good for the goose good for the gander? Does an Intel, IBM or Microsoft-based degree mean as much once an employee is no longer working at a corporation? Reimer claims that it does. She says the focus has always been on quality education, and that Cenquest takes pains to honor curricular rules. "The core of these programs should not be messed with," she vows. Reimer notes that she's been on both sides of the issue, as a graduate school professor and as a consultant and lawyer working with higher education and corporate clients, and she understand that there has to be a long-term benefit for all participants for the concept to fly.

That does make her role a little tricky. It's her job to negotiate the aspects of the coursework that can be adapted to cover specific corporate goals. She says technology or service components of the company are a usual spot for this. Reimer also notes that things have changed since she started out. Three years ago, she saw a slew of interest in more 'faddish' degrees. "If it didn't have a sexy name, e-anything, people weren't interested. Now, there's more interest in core elements."

The Professor and the Professional

And, you won't be seeing any NCAA games between General Motors and General Electric students. Reimer believes that pure online delivery is the way to go, and she thinks there are many ways to "leverage online interaction." One of the things she's most excited about in her model is the opportunity for those who study, say, marketing, to talk with those who are marketing professionals. She says that's where really interesting learning and growth can occur for all involved.

Meanwhile, Reimer says she's in the tricky position of being in competition with the very folks who she needs as allies -- the colleges and universities who may themselves be offering distance learning courses. Still, with a growing number of top players in the corporate world signing on with Cenquest, she's not too concerned.

"Right now, our biggest challenge is taking advantage of all the opportunities dropping in our laps," she says happily.

Company Snapshot:

Company Name: Cenquest

Headquarters: Portland, Oregon

Employees: 40

CEO: LaVonne Reimer

Primary Business: e-learning company that partners, with universities to deliver company-customized graduate degrees.

Markets: Companies offering tuition-reimbursed higher education.

Financials: Third round of funding for $6 million dollars, 8/01.

Contact: LaVonne Reime, 888-899-4388 or 503-276-7900, pr@cenquest.com