Teaching Top Dogs New Tricks

With Schulich School of Business’ Alan Middleton, Queen’s School of Business’ Thomas Anger, Instituto de Empresa’s Joaquín Uríbarri, HEC Paris’ Bertrand Moingeon and David Butcher of Cranfield School of Management.

Alan Middleton’s perspective and knowledge are informed by 23 years of experience on the front lines of marketing in the UK, US, Norway, Japan, China and Canada. He is Assistant Professor of Marketing at York University’s Schulich School of Business and Executive Director of the Schulich Executive Education Centre, one of Canada’s largest management education organizations offering open and custom non-degree programs to over 15,000 executives a year.

Thomas Anger is an Associate Dean at Queen’s School of Business and Executive Director of Queen’s Executive Development Centre. He has a wealth of senior administrative experience in non-degree executive development and both full-time and executive MBAs. In addition to his administrative role, he also teaches Financial Management.

Joaquín Uríbarri is the Director of Marketing and Innovation in the area of Executive Education at Instituto de Empresa (IE), and has acted as a catalyst for senior management programs and the internationalization of in-company and open programs. He is also an expert in the area of e-learning, having launched IE Learning Net, the e-learning spin-off launched by IE in the year 2000. He was previously responsible for the MBA and IMBA programs, to which he gave greater international outreach.

Bertrand Moingeon is Professor of Strategic Management and Associate Dean for Executive Education at HEC Paris. He holds a postgraduate diploma in Strategy and Management (HEC Doctoral Program), a PhD in Sociology and a postdoctoral diploma in Management. He was a visiting professor (Visiting Research Scholar) at Harvard Business School in 1994.

David Butcher is Director of Open Programmes at Cranfield School of Management and has been in management education for 20 years, having held positions in several major business schools. He works extensively with top management on an international basis, and is known for the clarity of his vision and his ability to challenge and inspire.

BMUS. From one-off seminars and workshops to longer programs such as MBAs, there are many different types of executive education. What criteria should companies and their executives use to identify the right course to fit their needs?
AM. Companies and executives will use different criteria to select executive education courses. Companies will use MBAs, eMBAs and specialized management training programs to either address individual weaknesses or develop better general management skills (especially if that individual has progressed through just one functional area). This training will then provide the benefit of improvement in appropriate knowledge and skills, and an employee retention reward (especially the eMBAs). Increasingly this practice is tied to management development and succession planning.

Individuals will use the programs to add or enhance their skill base but, increasingly, it is seen as a needed feature on the resume to demonstrate that the individual’s skills have been kept up to date and/or expanded.

The choice of degree versus non-degree depends on money and time. The degree route is preferred by individuals (providing they have the time to do it) as it gives them added credibility in the job market. While companies will often encourage this (usually by paying a proportion of the fees), they often prefer non-degree programs – especially ones custom-designed for the company. In this way, training that coincides with management and career development plans can be utilized.

DB. For open executive programs the key criterion is the suitability of the individual, since these programs are designed to advance the capability of attendees in their current roles or roles they may take in the near future. With customised executive programs, the key criterion is the population of executives for which the program is designed; given such programs have specific organizational development objectives.

TA. Today, many companies are developing core competencies and competency maps for their senior people. By measuring current leadership and the organization’s next generation of leaders against a set of core competencies, they can determine where the gaps and training needs lie. Companies can then align individuals with the right programs – either through open enrollment or custom programs that we develop to best fit the organization’s needs.

JU. Several important factors that should be taken into consideration when determining which type of executive education is appropriate for a particular company are the current situation of the company, the types of projects in which the company is involved, and the company’s general approach to management education. If the main priority is to further the development of high potential individuals, a company may opt for a longer, more extensive program. On the other hand, if a company is just dealing with one specific pressing issue, a focused program of one or two days may be sufficient to meet their needs. Other determining factors include the profile of the executives who will participate in the program and the amount of time and resources the company is willing to spend.

BM. A short course makes sense for addressing a specific need, such as the acquisition of certain skills, implementation of particular practices, or development around a narrowly defined theme. A longer program is an education vehicle that is suited to broader development. It allows participants to develop their skills and confidence as they prepare for more senior management roles, and it broadens their perspective through close examination of best practices across industries and regions. There is also an enriching networking opportunity through interaction, whether with colleagues from the same company or with peers from other companies and even other sectors.

In deciding which kind of institution to work with, a company should bear in mind the opportunities that are available with a business school such as HEC: the possibility of degree programs (which may have strong appeal for individual participants and can be a key-employee retention method if the company sponsors the degree), and the chance to draw upon a broad faculty of permanent and visiting professors. The industry criteria for selecting a business school include the certification by international accreditation organizations and the placement of the school in annual rankings lists, which provide overall ratings and also discuss specific criteria such as relevance of new skills learned and likelihood of existing clients to use the school again.

BMUS. How can companies measure the ROI on executive education courses? And why is it important that the learning process is adequately managed and that progress can be tracked?
TA. Putting a financial value on employee competency is difficult, which is why training and development budgets are so vulnerable in tough economic times. Effective measurement is critical to showing the value of a company’s investment in executive education.

At Queen’s School of Business, we ask all of our clients to provide measurable objectives at the outset of our programs. We then check back with them during and after the program to ensure their objectives are being met. Ultimately, the best mark of success is employee performance, which can be measured in terms of both effectiveness and efficiency. Organizations also need to consider that by investing in employees and keeping them challenged, employee retention will increase, and the costs of hiring and training will decrease.

BM. The question of how best to measure the impact of executive education is one that we all turn around, on the business school side and also on the client side. Of course we are all committed to management development activities that are value-adding. The question of how to measure this value is tricky, and surveys repeatedly show that only about 10% of companies seek to find a financial measure. I think the reason for this is primarily that we are talking about people development, which is a qualitative more than a quantitative evolution.

Having said that, if we believe that our activities have an impact – and we do – then there should be a way to observe that impact. Corporate learning executives and HR managers are under pressure to justify training expenses, and we want to help them document the benefit that we are convinced we are bringing to their companies. The terms of this may be different depending on the program: if there is work on a strategic project to be implemented in the company, then the results of that implementation will be relevant; if the focus is on individual development of management competences and leadership skills, then analytical tools such as 360 reviews will be insightful.

This second example brings up the question of how to track individual progress as well. While we build on an academic foundation, we are always focused on the practical applicability of the content of our programs. It is vital to us that participants have takeaways that they are able to apply to their daily working lives. In the case of extended, multi-module programs, each of which builds on that which has come before, we can monitor whether participants are digesting the concepts and ideas by their progress in each subsequent module.

JU. In order to evaluate the effectiveness of executive education programs, companies should focus on tracking the impact of programs. While impact may be broadly interpreted, companies can narrow in on examining specific changes that take place as a result of executive education programs. Have certain behaviours or processes changed as a result of the newly acquired knowledge? Have executives followed through on the implementation of new ideas? While it sometimes may be difficult to measure the exact effect in numerical terms, focusing on the impact of programs allows companies to determine if they are achieving the desired improvements. Tracking the progress of executive education programs is essential in order to justify investment in such programs and demonstrate that when implemented properly, they can contribute in a positive way to a company’s performance. At Instituto de Empresa Business School, we work together with companies from the initial stages of program design to incorporate means of following the progress and evaluating the impact of our programs.

DB. There are two key ways in which ROI can be measured. Firstly, do attendees fulfil the actions and objectives they take from a program within a specified time frame? Secondly, do those objectives lead to improvement in KPIs such as customer retention/satisfaction, employee satisfaction, quality measures, lead times, etc? Clearly there needs to be a direct linkage between objectives formed through attending programs and the KPIs used in an attendee’s business.

AM. Senior managements need to see that the training used actually improves the quality of its management. Ideally, we should be able to track the effectiveness of management decision-making before and after training programs, but this is not achievable. So what can we do? Assessments by superiors, peers and subordinates both pre and post-training are a good idea, as are self-assessments both before and after. Progress along a management succession plan can help measure ROI, and projects accomplished as part of the training process (action learning projects, for example) also provide a useful benchmark.

BMUS. Business management ideas, regulations and technologies are constantly changing. How can executive education courses enable the modern businessperson to manage and adapt to change effectively?
DB. Firstly, by providing solutions that are not accessible within an attendees’ business. Secondly, by challenging the attitudes of attendees towards change, and consequently enabling them to take a more enquiring and robust stance towards change.

BM. Executive education has a role to play, of course, in training managers in new processes and regulations, such as international accounting standards and European employment laws, depending on a participant’s specific function. Such courses arm new managers with the skills required for their professional advancement, and also provide an important opportunity for skills refreshment and updating for experienced managers and executives.

The more significant role we can play is in engaging executives in ongoing development as both implementers and advocates of change. The challenge for a businessperson is to remain receptive to new ways of thinking and open to a constant evolution in process practices. Beyond this, the manager must find the means to convey this to his/her team, keep them motivated and make them agents of change in their turn. Development programs provide a forum for reflection and exchange on best practices, thus allowing participants to remain engaged in developments across their companies and in the business context at large. Action learning projects help participants to embrace and lead change, through the development and implementation of real-world strategic change projects.

JU. Executive education courses provide businesspeople with access to the most up-to-date knowledge regarding the latest trends in the business world, as well as valuable insight on future trends and issues that will likely emerge and take on new significance. In addition, these courses present an ideal opportunity for networking in which executives can learn from each other and share ideas about issues and problems they have dealt with in the past or are currently facing. One aspect often overlooked is that executive education programs offer professionals the chance to stop and reflect. It can be difficult at times to see beyond one’s daily tasks and projects, and these programs encourage executives to take on a broader perspective and examine issues in a way that may not have occurred to them before.

AM. Such courses enable better change management in a number of ways: by providing courses that keep managers up to date with the latest thinking and ideas; by supplying cases and empirical support for certain management models; by exposing management participants to managements from other departments, companies and/or industries; by simulations and projects that require flexibility and creativity in decision-making; by getting managers to reflect on their own management style strengths and weaknesses; and by creating a corporate culture of continuous learning and debate.

TA. We ensure that our program participants are exposed to leading edge management concepts and tools. We show them how to stay current, where to look for trends and information, and how to adapt their leadership style to become leaders of change not, chasers of change. I like to think that by attending a Queen’s program, you are whetting your appetite for life-long learning.

BMUS. Distance learning continues to pick up advocates, particularly amongst time-poor corporate executives. What advantages does distance learning offer? Is it as effective as traditional methods?
TA. We believe that any learning process is aided immensely by the presence of a peer group with whom participants can discuss and exchange ideas. Unfortunately, a lot of distance learning technologies don’t allow for this vital group exchange – thereby missing a key element of the learning process. This is particularly true when teaching more abstract business concepts. Going forward, we see a great future for distance learning as the technology adapts to allow for a better group exchange.

BM. Your question points to the most obvious advantage of distance learning, which is that it provides a way for managers with very limited time resources to remain engaged in professional development. We continue to innovate with formats of non-residential learning – extranet sites with reading materials and online tests, cyber-chats with professors and other experts, downloadable audio files of lectures. All these methods allow participants to follow a course in their own time.

On the other hand, I would hesitate to see a program that consisted entirely of distance learning. There is an experience of human interaction that participants would miss out on, both in terms of the kind of brainstorming discussion that can happen in a meeting room, and in terms of the opportunity to develop personal relationships with other participants. Many of our custom programs gather managers from different offices and regions of the same company, and the network that they can build during a few days in the same place brings a lasting benefit to them as individuals returning to their functions and to the company overall in terms of building and strengthening a company culture.

AM. Distance learning has three values. First, it allows executives from different locations to share learning space and exchange knowledge and ideas. Second, an ability to achieve knowledge in a self-paced manner is important for highly motivated learners or learners striving to achieve a qualification. Its third value is as very basic technical or functional training.

As management is not just about knowledge but also judgment, blended environments work best: meeting in a classroom to get to know each other and then distance. In this way, knowledge and thought achieved through discussion, debate and interaction is gained that cannot be replicated by distance learning alone.

DB. There are no time-poor executives, only executives who have still to learn how to prioritize effectively. Obviously distance holds the advantage of consuming less time, but no matter how inventive the associated technologies, they never replicate the rich leaning processes inherent within the social dynamic of traditional methods.

JU. With the ever-increasing demand on executives’ time and travel schedules, it can be nearly impossible for some individuals to attend extensive on-site executive education programs. Consequently, e-learning has emerged as an attractive alternative – with varying opinions as to the effectiveness of such programs. E-learning programs can achieve positive results when carried out in a highly coordinated manner with the support of experienced professors. These programs are most effective as part of blended programs that include a combination of on-site sessions with an online component. For these programs, it is important to ensure the collaboration of qualified faculty members, maintain small groups generally limited to a maximum of 25 participants, and provide a well-designed, interactive program. For the online component, it is important to incorporate top quality, relevant content and ensure a balanced workload that takes into consideration the busy agendas of executives.

BMUS. What role do you think more informal executive ‘coaching’ and/or mentoring can play in providing an ongoing source of support and advice for today’s executives?
AM. It’s increasingly important. It is not just coaching and mentoring at senior levels that is needed, but at middle and junior managements too. This is a return to a kind of apprenticeship, which has always proved most effective. A combination of ideas and theory in formal training, together with coaching and mentoring when real business decisions are required, is the ideal combination.

JU. Informal coaching/mentoring can be very useful to provide executives with support and advice in order to help them deal with the challenges they are currently facing. Also, discussing ideas with a coach or mentor who is from outside the company may help executives to see situations from a different perspective and gain new insight as to how to address certain issues. Coaching/mentoring sessions do not, however, provide a complete education and are most effective when considered as a means of support. Executive education programs, on the other hand, cover a wider variety of contents and examine issues on a much broader level than just one specific company at a particular moment in time.

DB. Many practices are to be found under the umbrella terms ‘executive coaching/mentoring’, and it is less than clear how much of this activity is useful. Well designed coaching and carefully conceived mentoring is a valuable ongoing source of support for executives who need it – not all do all of the time.

TA. Executive coaching and mentoring play a very important role in business today. One of the key benefits of our programs is the informal networking and peer mentoring opportunities that are created both during and after the program. We’ve also developed Queen’s By Your Side (QBYS.ca), a new website featuring updates, new materials and tools for participants to stay connected. Through the web and our on-site consultants-in-residence, we can continue to offer coaching long after the program has been completed.
However, we also offer formal executive coaching, which can be enormously beneficial. An executive coach is able to see issues that are not apparent to the individual. By developing a continuous relationship, they not only coach you on interpersonal issues, they can provide a broader perspective on your approaches to business issues and opportunities.

BM. All executive education is personal growth as well as professional development, and I applaud coaching as a means of nurturing and guiding this growth. Management development must have an individual component, because programs expose the participant to many externals (best practices, multicultural perspectives, classic and innovative business theories, etc.), and the participant at some point needs to digest all of these. Private coaching or mentoring can help an executive work through obstacles in this development process.

We often embed a coaching component into our custom programs – for instance, dividing a group of participants into subgroups of four, who do not work directly together, and who share current work problems, proposing their own solutions and soliciting the opinions of the rest of the group, all under the moderation of a facilitator. This gives participants more personalized attention, and also encourages them to develop give-and-take mentoring behaviors.

BMUS. Studies have shown that training budgets are the first to be eliminated from corporate spending. Why is this detrimental to a company’s long-term health?
JU. Cutting budgets for training/executive development can have an extremely detrimental effect on the mid to long-term strategy of a company. In a business world that is changing faster than ever, it is crucial to have well-prepared, motivated executives to take on future challenges. Executive education programs provide executives not only with technical knowledge and hard skills to ensure that companies are run properly, but also provide them with skills to lead effectively in changing and uncertain circumstances.

TA. Many organizations fail to recognize the high costs of hiring and training new people. And when they cut training and development budgets, they are effectively mortgaging their future. Investing in employees helps keep them challenged and increases retention rates.

BM. I think the practice of cutting training budgets during difficult times is less widespread than it once was, because companies realize the importance of assuring and strengthening their human capital particularly during difficult times. The effects of this decision are felt even in the short term, in terms of motivating and retaining employees. A company that is perceived as reducing its investment in its employees risks being perceived as a less appealing place to work.

Of course, training is also crucial in the broad context of the lifecycle of a company. Development programs are a means of re-energizing strategic thinking within a company. They help senior managers stay in touch with best practices not just within their industry but across the world of business. While we expect executives to be individually aware of the business environment around them, a training program systematizes this openness and receptivity to ideas, and ensures that the benefits are reaped for the entire company and not just the individual. Importantly, it also helps prepare managers for their next level of responsibility. Thus the company can always be preparing the next generation of managers, ensuring more stable management for itself and promising a reasonable expectation of internal growth for its employees. These are advantages that a company cannot afford to ignore at any time, and particularly not when it is facing business challenges.

AM. I view training in two ways. First, it is an essential ingredient in a learning organization. Without it the organization becomes outdated or sterile. If the marketplace a company competes in requires constant change or improvement, then it needs this learning culture. Without training that culture cannot be sustained and the company will lose position. Second, even in organizations where the intellectual capital is less important, I regard training as the human equivalent of technical R&D. You can cut it and it may not hurt in the short term, but in the medium term it mortgages the future.

In addition, training remains an incentive to attract better people to the organization. If it is constantly cut, then the organization becomes less attractive to the very type of manager most want to hire. However, this is why the ROI question needs to be addressed. Only in this way can the tendency to cut needed training be avoided.

DB. Cutting training budgets is detrimental to a company’s long-term health for the simple reason that in the long term, ignorance is more costly than training.

Choosing a course
The kinds of criteria that will be utilized are:

• Course topic: does it fit the need? Does it conform to either self-perceived improvement needs and/or career development plans?
• Course length: does it meet the need of speed required to develop the skill and acceptable time away from the job?
• Course quality: what is known about the quality of the program?
• Instructor/training organization credibility and brand: are they sufficient to give credibility to the individual taking the program or the company offering it?
• Location and timing convenience: is the course being offered at a date and place convenient for the individual/company?