Global Perspectives on Executive Development: Best Practices from China, India and the West

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1 Global Perspectives on Executive Development: Best Practices from China, India and the West Dr. Das Narayandas James J. Hill Professor of Business Administration Senior Associate Dean, Executive Education Senior Associate Dean for HBS Publishing Harvard Business School February 26, 2014 Singapore Copyright President & Fellows of Harvard College

2 Dramatic changes in the global marketplace necessitate dramatic changes in the global workplace 2 Source: IBM 2012 Global CEO Survey

3 Only 32% of global leaders are confident that their organization has the necessary leadership talent and skills to achieve their strategic goals 58% of global CEOs are concerned that the lack of key labor skills poses a threat to their companies growth prospects 3 Sources: HBP Survey of 800+ Global professionals, August 2013 PwC 16 th Annual Global CEO Survey (2013)

4 An outside perspective is welcome at the top How receptive are you to making changes based on outside feedback or coaching? CEOs 43% 57% Senior Executives 51% 40% Very receptive Receptive 4 Source: 2013 Executive Coaching Survey, Stanford/Rock Center/TMG

5 The good news is that large companies are using a range of initiatives to foster executive development Involving managers in strategic decisions 79% Active succession planning Dedicated executive development program Rotations to different functions Global mobility and international experience Programs to encourage diversity Shadowing senior executives 37% 71% 69% 62% 61% 58% Deemed Effective Total Using 5 Source: PwC 16 th Annual Global CEO Survey (2013)

6 North America Latin America Europe Middle East/Africa Asia The use of various approaches to executive development differs by region 72% 69% 66% 58% 55% 75% 40% 35% 35% 28% 63% 53% 55% 44% 25% 61% 60% 50% 48% 56% Instructor-led training in a classroom Virtual or online learning Being coached or mentored Stretch assignment/ project North America Latin America Europe Middle East/Africa Asia 6 Source: HBP Survey of 800+ Global professionals, August 2013

7 Developing talent in emerging markets Talent development is recognized as a key priority in developing markets The increasing focus on home-grown talent as opposed to large numbers of ex-pat executives is driving more attention on development needs Governments in certain markets are playing an active role State-owned enterprises Dictating spending on education and training by private companies Multinational companies leverage global development processes and programs, and are more apt to engage in formal executive education programs in which English proficiency is required Locally-owned companies are somewhat less likely to engage in formal executive development efforts although they may have the highest need Local college education may not fully prepare employees Lack of English fluency limits accessibility of formal development programs 7 Source: Talent and Innovation Workshops: Outcomes and Recommendations; World Economic Forum 2013

8 8 Given the range of options, how can companies determine what is the right executive development approach that meets the needs of the company and the executive?

9 Best Practice organizations develop their executive development plans along three dimensions: Scope of responsibility Development needs and approach vary by management scope Enterprise Group Business Function Managers Others Self Breadth of need within company Broad need Change management Globalization Changes in the industry impacting the organization Alignment and support of company strategy or initiatives Individual or group need Executives preparing to ascend to next level of responsibility High-potential managers Those who now have functional oversights they didn t before Specificity of the development need Comprehensive management or leadership Specific to one topic (such as financial acumen, marketing) 9

10 Tactical Training Executive Development Considerations for executive development Scope of responsibility The nature of education varies by level within the organization Individual contributors and more junior managers benefit from more tactical training efforts know how to do certain tasks Middle managers and senior executives, in contrast, have more strategic development needs Enterprise Group Business Function Managers Others Self Their responsibilities entail establishing increasingly broader aspects of corporate direction as they ascend in the corporation the what, why, who, when, how and where of company strategy Executive development efforts need to be aligned to this sliding scale of responsibilities 10

11 Considerations for executive development Breadth of need within company Company- Wide Cohorts/ Groups Individuals Certain development needs are universal across a company (at least for a selected management level) Examples include enabling globalization efforts, overall management/leadership capability enhancements, industry-specific knowledge development At times, only certain groups within a company share a development need Development needs for one division or functional group may differ from another Individuals may present their own, unique development needs Knowledge/skills gaps for executives targeted for promotion Managers who are responsible for functional areas they have no experience in 11

12 Considerations for executive development Specificity of the development need Comprehensive leadership needs Broad and deep development for senior executives and highpotential managers to accelerate their leadership and management expertise These development solutions tend to be longer in duration due to the depth & breadth of the need Often tailored for key transitional points in the career of executives to enable increasing levels of responsibility Focused or topic-specific needs More narrowly defined development needs specific to: Industries to keep up-to-date on the latest business developments and approaches related to one industry sector Business skills to deepen expertise in one aspect of management or leadership, such as strategy, marketing, financial analysis 12

13 Framework for Executive Development Senior Executives Open Enrollment Executive Education Middle Managers & High Potentials Frontline Managers Company- Wide Cohorts/ Groups Individuals 13

14 Executive Development Open Enrollment Programs Senior Executives Open Enrollment Executive Education Middle Managers & High Potentials Frontline Managers Company- Wide Cohorts/ Groups Individuals 14

15 Executive Development Open Enrollment Programs Definition: In-person, residential programs operated independently by schools Open to attendees from multiple companies (typically via an application process) Range in length Up to 8 weeks or multiple modules over years for comprehensive management programs 2-5 days for programs focused on specific topics or skills Optimal uses in executive development Senior executives as individuals or small groups May be used for larger sets of executives over multiple iterations Comprehensive programs for senior executives preparing for increased responsibilities Shorter focused programs to fill specific development/skill needs 15

16 Executive Development Open Enrollment Programs The HBS Difference: Participant-centered learning model Case study method Living groups Participant diversity and seniority All programs led by HBS senior faculty More than 80 programs Comprehensive programs for C-level executives through high-potentials Focused programs covering wide range of business subjects and industries Global programs in China, India, Europe 6,730 executives 4,313 companies 130 countries 16 Source: HBS Executive Education Open Enrollment participants FY13

17 Executive Development Open Enrollment Programs Best Practices: Consistent criteria for who attends and why Create network of attendees within the company to encourage networking and implementation of learning Multiple participants over time creates critical mass for greater impact within the company Utilize multiple types of executive education to better meet the specific needs of the company and the executives Team and task forces sent to specific focused programs to accelerate group efforts Use of HBS Executive Education Program Types Top Clients FY11-13 Comprehensive 0 clients use only CLP C&G 1 client C&F 48 clients All 3 Types 94 clients F&G 25 clients Global (China/India/Europe) 7 clients use only Global Focused 43 clients use only Focused 17

18 HBS Executive Education by program type is consistent across regions except for Asia/Pacific North America 14% 83% 3% Latin America 16% 77% 8% Europe 15% 73% 12% Middle East/Africa 18% 72% 10% Asia/Pacific (total) 16% 39% 44% China 6% 20% 74% India 13% 23% 65% Japan 57% 33% 10% Comprehensive Focused Global Markets 18 China and India executives participate in HBS executive education programs conducted in those markets (Shanghai and Mumbai), whereas participation in Japan is very strong for comprehensive leadership programs Source: HBS Executive Education Open Enrollment participants FY11-13

19 Executive Development Custom Programs Senior Executives Custom Executive Education Open Enrollment Executive Education Middle Managers & High Potentials Frontline Managers Company- Wide Cohorts/ Groups Individuals 19

20 Executive Development Custom Programs Definition: 20 In-person programs conducted at school, company or other location Developed and taught by business school faculty (through the school s executive education function), privately by business school or other faculty, or by an independent consultants or non-faculty instructors Commissioned and attended by one company Conducted at school, company or other location Range in length but typically 1-2 weeks May have modules that occur multiple times for one cohort Some have multiple iterations for different groups within company Optimal uses in executive development Senior-to-middle executives as groups or cohorts Content customized to meet needs of company Often for change management or strategic consensus-building

21 Executive Development Custom Programs The HBS Difference: Participant-centered learning model All programs led by HBS senior faculty More than 40 client programs designed to meet the specific needs of those companies Best Practices: Full commitment and involvement from the most senior executive On-going engagement and reinforcement of the program elements within company 3,526 executives 41 companies HBS Custom Clients Overall executive education approach designed with both Custom and Open-Enrollment elements to complement each other and provide a broader set of solutions Open & Custom 88% Custom only 12% 21 Source: HBS Executive Education Custom participants FY13

22 Online Corporate Learning Senior Executives Custom Executive Education Open Enrollment Executive Education Middle Managers & High Potentials Online Corporate Learning Frontline Managers Company- Wide Cohorts/ Groups Individuals 22

23 Executive Development Online Corporate Learning Definition: Technology enabled Self-paced Typically made available to defined groups within a company Content usually covers broad business management topics, and is arranged into modules, chapters or lessons Optimal uses in executive development Middle and frontline managers across a company or division Particularly useful when consistency in the business approach is desired but for which in-person discussions or exercises are not required Also key for companies with multiple locations and when work-based practice is essential to the ongoing learning process. 23

24 Executive Development Online Corporate Learning The HBS Difference: Leverage the business insight and thought leadership of HBS faculty, Harvard Business Review authors and other management experts Latest technology and learning practices for anytime, anywhere access Blend of live/real-time learning via online lectures, case studies and group discussions and self-paced online resources Best Practices: Customized to meet strategic needs of the company Integrated with Custom or Open Executive Education programs Blended Model Cascaded Model Extended Virtual Custom/Open Executive Education Extended Virtual Custom/Open Executive Education Virtual 24

25 Coaching Senior Executives Custom Executive Education Open Enrollment Executive Education Middle Managers & High Potentials Online Corporate Learning Coaching Frontline Managers Company- Wide Cohorts/ Groups Individuals 25

26 Executive Development Coaching Definition: Individualized guidance or mentoring Customized to unique needs of the executive May be an outside professional coach, or an internal executive (typically more senior than the executive being coached) Optimal uses in executive development Useful in fine-tuning or modifying specific aspects of behavior or approach Not necessarily the best for filling business knowledge gaps 26

27 Executive Development Coaching The HBS Difference: Coaching is integral to select Executive Education programs, especially our comprehensive leadership programs and certain shorter leadership programs Coaches with deep business expertise are used to link the individual needs of the executive to the development subject areas of the program Best Practices: Define clear objectives for the coaching Provide confidentiality in the coaching relationship Integrate coaching into the overall development plan for the executive 27

28 In summary, best practice executive development around the world is based on Carefully analyzing the need along the three dimensions Matching the development approach to the need Integrating the efforts to deepen the impact for the company Open Executive Education Custom Executive Education Online Corporate Learning Coaching 28

29 29

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