The University of Cape Town Graduate School of Business (UCT GSB) operates within a very competitive market for executive education.

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1 1. INTRODUCTION The University of Cape Town Graduate School of Business (UCT GSB) operates within a very competitive market for executive education. Information on the offerings of other providers in the executive education sector is in most cases non-existent or very unreliable. Because of the competitive nature of the executive education market, very little research has been done to better understand the factors that influence educational purchasers decisions. The challenge lies in how to achieve and maintain a competitive edge by focusing on more than just the pricing structure of short courses. The challenge is to take customer service from ordinary to extraordinary. 1.1 Aim of the Study The aim of this study is to inquire into new and innovative ways of taking ordinary customer service and action it into extraordinary customer service for the delegate on an Executive Education (Exec Ed) short course. The UCT GSB vision will be scrutinised to be able to identify the reasoning behind wanting to attain and maintain extraordinary customer service. Out of this research will flow a better understanding of what gives UCT GSB a competitive edge. This will enable them to strategically plan for future initiatives to build on their success of the past. The value of the research lies in the ability to identify areas of good performance that can still be improved. The outcome will be actionable plans to improve on these elements. 1.

2 1.2 The Problem Statement How should one go about identifying customer service areas that already function well and learn from them to move from ordinary to extraordinary customer service? This research question implies that the focus should not be on problem solving but rather to follow a positive approach to change and development. 1.3 Significance of the Study The significance of the study lies in the fact that it will afford the executive education staff the opportunity to focus on what works well within the department, and more specifically customer service, and to build on the successes of the past. It will provide an overview of the arena within which Exec Ed and its competitors operate and the challenges facing all providers of executive education. The importance of customer service within the domain of executive education will be highlighted. The execution of an appreciative inquiry will provide a learning experience for the team members of the Exec Ed unit on how to make extraordinary customer service actionable. 2.

3 2. EXECUTIVE EDUCATION 2.1 Development of Executive Education in South Africa Executive Education (Exec Ed) is not a new development within the product offerings of business schools both internationally, and in South Africa (SA). The UCT GSB started with their Programme for Management Development short course nearly 28 years ago. Exec Ed has traditionally been seen as the poor cousin of the Masters in Business Administration (MBA) degree. The last decade has seen a significant growth in the demand for shorter leading edge training courses for managers and executives. Bickerstaff, G (2004:53) argues that there is a good reason for this innovation. If a dog is for life and not just for Christmas, then an MBA is in some ways the reverse. The shelf-life of an MBA the time it takes for those cutting-edge ideas of your favourite professor to become outdated is comparatively short, just five years by most estimates. Of course, the basic elements remain valid and the habits of thinking inculcated by, say, the case method will always be useful. But for really new thinking you will probably have to go back to a business school and because you will probably not want to take another MBA, you will need executive education. Exec Ed fulfils two needs of organisations when it comes to the development and training of managers: To teach hard practical skills, such as marketing, finances, manufacturing and economics, combined with some soft skills. This especially applies to new entrants who need to be fast-tracked into management positions and don t always have the time to complete an 3.

4 MBA. This is a very useful tool for South African organisations that have to comply with transformation targets set by the employment equity needs of a changing business environment. To update and refresh traditional management and leadership thinking of existing managers who might have already completed an MBA. The competitive nature of the business environment demands leading edge management practices in order to be competitive both nationally and internationally. The opening of the South African markets with the last two decades have seen an influx of international competitors with management skills required from leading US and European business schools. Exec Ed has traditionally been limited to open programmes which offers an open enrolment opportunity for any managers from any company to register for a management development course. The benefit of this type of courses lies in the networking opportunity provided by sharing the course with a diverse group of senior managers from both competitors and suppliers. The opportunity to listen, learn and share in the vast pool of experience in the class room makes the financial investment worth while. Open programmes have traditionally been the cash cow for business school. A new trend has emerged of late where companies prefer customised programmes. Customised programmes provide the opportunity for a focused courses, were the organisation can have a say in the design and content of the course. It provides the opportunity for the company to educate individuals in the context of their organisation, concentrating on the details of its strategy and 4.

5 culture which sets them apart. Companies which operate in a very competitive market, where information sharing can be detrimental to the future of the company, prefer customised programmes. Table 2.1 Customised Programmes at Leading European Business Schools Business School Executive Education Revenue ( m)ª Customised Programmes (%) INSEAD IMD London IESE Cranfield Henley Ashridge Bocconi HEC, Paris ESADE IE Vlerick Leaven Gent Rotterdam (Erasmus) ESCP EAP Manchester E.M. Lyon Warwick a. Income from non-degree executive education (latest available data from business schools). Revenues converted at 2003 average rates. Source: Birckerstaffe, G. (2004). Making the right choice of executive education. Which MBA?, 16, 54. A recent study of leading European business schools by the Economist Intelligence Unit has shown that there is a significant growth in customised 5.

6 programmes, in so far as it is overtaking open programmes as the primary financial source for executive education units. South African business schools are showing the same trend, but are falling behind in the progress made towards shifting towards a majority customised offerings. The UCT GSB has over the last two years grown its customised revenue as a percentage of total revenue for Exec Ed from 14.94% to 19.53%. SA business schools are however, not as willing as European and US business schools to share revenue statistics. The trend is however, confirmed by the increase in the number of tenders and quotations requested by large private and government institutions. The South African Exec Ed market has seen several significant changes within the last ten to fifteen years. In the Self Assessment Report of the UCT GSB for Equis Accreditation (2001:125) four emerging trends were identified that affected executive education: the introduction of the Skills Development Levy and the National Qualifications Framework (NQF) created pressure from employers for executive education that was accredited by NQF to allow for 50% of the levy to be reclaimed; at the top executive levels, South African schools competed with the leading international schools, which were seen by the large corporate sector as best equipped to provide a truly global perspective and the leading-edge learning needed; 6.

7 privatisation of executive education by business schools as a means of funding growth across the full spectrum of activities; the boundaries between business schools, corporations and consulting firms in the knowledge economy are blurring and executive education was at the forefront of this development. Recent developments within the legislation governing executive education by the South African Qualification Authority (SAQA) have once again shifted the proverbial goal posts. The possibility for companies to claim back their money from the Skills Development Fund for non-qualification based training, has come about through the acceptance of Continuous Professional Development (CPD) as a new category of education. Rumboll (2006) concluded that: Continuous Professional Development is a legitimate area of study for professionals and that open and customised courses for professionals can be classified under this category. This finding also helped us deal with the ethical dilemma of credits. Currently many delegates are promised credits for attending programmes. The underlying motivation for this is that those people who do not have a qualification have an opportunity to slowly build up credits and an eventual qualification. Unfortunately the reality in South Africa is less simple. There is no shared agreement on credits between South African universities. Hence, students are often left in an invidious situation where they have credits with no hope of ever achieving a qualification. This latest development has given SA business schools the opportunity to redesign their organisational structure, to align them with those of international business schools. The accepted norm is to separate qualification based short 7.

8 courses from non-qualification courses in an Executive Education department or unit. Exec Ed can concentrate purely on open and customised short courses that do not lead to a qualification. This allows for a greater level of flexibility and gives the unit the ability to adapt to market demand for new and innovative short courses. UCT GSB has dismantled its Executive and Management Education unit in 2004 and in its place; Exec Ed and Corporate Learning (CL) were established. The latter focusing on providing qualification based customised programmes. Exec Ed has seen a steady growth since 2003 both in the local and international arena. The huge down-turn before 2003 is widely blamed on the state of the international economy, the outbreak of Severe Acute Respiratory Syndrome (SARS) and the increase in international terrorism. Companies tend to spend heavily on executive education when the economy is doing well. According to the Minister of Finance, Trevor Manual, in his mini-budget debate in the SA Parliament in October 2006, the South African economy has seen its longest continual growth period over the last five years. This spending pattern also reflects in the steady growth of enrolments at the UCT GSB over the last nine years. Table 2.2 Comparative Open Programme Enrolments ( ) Source: Self Assessment Report for Equis Accreditation UCT GSB (2006) Unpublished Report It can be said that Exec Ed in the South African context is healthy and still growing, while showing all signs that it will follow the trends set by its 8.

9 international counterparts. The change in educational legislation has brought the playing field in line with the international market and provides for interesting development opportunities into the future. 2.2 The Competitive Nature of Executive Education The South African market for executive education has experienced rapid growth in supply and demand over the last few years. The sector is notoriously difficult to monitor as there are dozens of suppliers including business schools (both public and private), profit driven companies, consulting firms and all sorts of partnerships and joint ventures. There is no one reliable information source that monitor the number of players, what courses are being offered and how the various programmes compare with one another. Mahlubi, Subotzky, & Thaver (2000:2) are of the opinion that: A new highly variegated institutional landscape has emerged. This has been characterised by a large number and wide range of both local and transnational private providers and by a number of complex collaborative linkages between participating institutions, including some between public and private institutions. Growth has been spurred by a number of factors: many European and US institutions have expanded offshore, including to South Africa, to generate revenue political change and the accompanying need for South Africa to compete on a global level has attracted foreign business schools to the country 9.

10 there is a huge need for business education as South African companies grapple with the new economy, new competitors and new markets The Council for Higher Education (CHE) conducted a national re-assessment of all MBA programmes in This was in reaction to concerns raised about the quality, cost and relevance to the South African needs of MBA courses on offer. Thirty-seven MBA offerings across 27 public and private institutions went through a reaccreditation process. The main reason behind this reaccreditation was to restore credibility to the MBA qualification. Indirectly this process contributed towards a cleaning-up of the executive education market. Table 2.3 summarise the major business schools operating in the South African management education field. Although there are dozens of executive education providers based both inside and outside business schools, this study is limited to registered business schools with the Department of Education. Registration is based in terms of the Higher Education Act of 1997 as amended. 10.

11 Table 2.3 South African Business Schools Offerings 2006 Institution Public / MBA Exec Ed Open Private Offered Unit Courses Gordon Institute of Business Science (GIBS) Private Yes Yes 24 Graduate School of Business University of KwaZulu-Natal Public Yes No 0 Henley Management College (Incorporated in the UK) Private Yes No 0 Management College of Southern Africa Public Yes No 0 Milpark Business School Private Yes Yes 10 Nelson Mandela Metropolitan University Business School Public Yes Yes 29 University of Northwest - Business School Public Yes Yes 12 School of Management University of the Free State Public Yes No 2 Tswane University of Technology Public Yes No 0 University of Cape Town Graduate School of Business Public Yes Yes 30 University of Pretoria Graduate School of Management Public Yes Yes 11 University of South Africa Graduate School of Business Public Yes Yes 14 Leadership University of Stellenbosch Business School (USB-Ed) Public Yes Yes 28 University of the Witwatersrand Business School (WITS) Public Yes Yes 43 Source: MBA School Directory [Online]. Internet: 11.

12 For the purpose of this study the four top players in the executive education market will be analysed in more detail. The four players have been selected taking into account the following criteria: number of open enrolment short courses offered course prices charged for open enrolment short courses variety of open enrolment courses offered operate both regional and national only non-qualification based short courses less than 6 months in duration. offerings have to include the three basic management development courses on senior, middle and junior management level. The selected competitors are frequently amongst the last four short listed candidates when it comes to customised programme tenders and quotations. The four main competitors offer the same variety of courses that cover all the basic management disciplines: finance, marketing, leadership development, strategy, people management and manufacturing / operations. The two price leaders are WITS and GIBS with UCT GSB third and four USB-Ed with a significantly lower price structure. Two of the competitors are public and two private institutions. USB-Ed functions under the name of the University of Stellenbosch, but their executive education unit is registered as a private company. The University is the majority shareholder, with management and staff owning a minority share. A further 20% of the shares currently owned by the university have been earmarked for future black economic empowerment partners. GIBS is a fairly new competitor in the market and has been showing phenomenal growth since its establishment in the late 1990 s. GIBS is also a 12.

13 private profit driven company affiliated to the University of Pretoria for degree accreditation purposes. GIBS was established through a sizable donation from the Donald Gordon Foundation. Both WITS and UCT GSB operates within public higher education institutions. Table 2.4 Four Major Competitors in SA Executive Education Market Type of Offering GIBS USB-Ed UCT GSB WITS Executive Leadership Programme (* International 23 days 22 days 12 days 26 days R97000 * R36750 R55000 R98000 * module) R4217 / day R1670 / day R4583 / day R3769 / day Middle - Senior Management Development 12 days 22 days 16 days 23 days R36900 R26950 R40000 R28000 Programme R3075 / day R1225 / day R2500 / day R1217 / day New Managers Programme 14 days 11 days 11 days 20 R24900 R11650 R15500 R17600 R1779 / day R1059 / day R1409 / day R880 / day Finance for Non-Financial Managers 4 days 4 days 5 days 5 days R11900 R7250 R9950 R14300 R2975 R1813 / day R1990 / day R2860 / day Average Two Day Price R6500 R3750 R4950 R7120 Average Three Day Price R11900 R4950 R8500 R9320 Average Four Day Price Not offered R6300 R10790 R11000 Average Five Day Price Not offered R7590 R13750 R13280 Number of Open Enrolment Short Courses Number of Open Enrolment Short Course Repeats Source: Online Programme Brochures 13.

14 2.3 Attaining and Maintaining a Competitive Edge When comparing the figures from the four major competitors, the question arises as to what really influences the buyers purchase decisions when it comes to choosing an executive education supplier. This has been a question all competitors have been grappling with and all have different answers to the question. Some of the factors that potential clients would take into consideration includes: academic quality of the course, it being new and innovative in its design and keeping abreast of the latest developments within management thinking; price for the course taking into account the duration and any possible added cost like travel and accommodation; word of mouth information from colleagues and friends on previous experiences with the different providers; ratings received by the provider both nationally and internationally, e.g. Financial Times Rating of MBA and Executive Education offerings; return on investment for the company, time spent away from the office and the possible financial benefit from implementation of new ideas by delegates; and added benefits for the individual that is not of monetary nature e.g. location of the provider. In all of these factors, the providers seek to attain a competitive edge over their competitors. The more competitive edges that can be achieved would normally mean the lions share of the market. As previously mentioned, this is not 14.

15 necessarily always the case. The executive education market is fickle as the client is easily seduced by hype, status, ratings or current fads. Four key components contribute towards achieving a competitive edge at the UCT Graduate School of Business: New and innovative courses based on the Systal methodology. The Systal methodology was developed within the Executive MBA programme and focuses on systems thinking and action learning. This has been successfully incorporated into the design of the short courses. The emphasis is on developing the individual to function better within the ever changing business environment. The courses all have an action learning component where the delegate implements his or her learning s from the course into the workplace through company-based projects. The result is a more direct impact back into the company with possible financial benefits and the individual can immediately implement the knowledge received on the short course A forty two year reputation reinforced by both local and international ratings. The business school forms part of the oldest university in South Africa, which celebrated its 175 th anniversaries in The UCT GSB alumni association is over members strong and offers an excellent marketing base. These members have over the years grown into some of the most influential decision makers in the corporate world. The reputation is further reinforced by both national and international ratings of the MBA offerings and the executive education offerings. Two examples are the Financial Times MBA rating in 2006 that rated UCT GSB as number 68 in the world for business 15.

16 schools offering an MBA. The Economist (2005) also rated UCT GSB within the top ten in the world for executive education providers The Breakwater Campus situated in the heart of Cape Town s most popular tourist attraction, the Victoria and Alfred Waterfront. The added benefit this offers to the delegate is not of monetary nature, but rather, the opportunity to experience the V&A Waterfront and Cape Town in the evenings and weekends while attending their short course during the day. Many a delegate extends their stay in Cape Town for an extra weekend after their five day course High calibre customer service which reinforce the excellent academic experience of the delegate. This would include an extraordinary experience before, during and after the programme. The focus is on making the interaction of delegate with the UCT GSB and its service providers as pleasant as possible. This especially will have the greatest impact on the potential for positive word of mouth feedback of past delegates to potential new delegates. In identifying this fourth component, the UCT GSB came to the realisation that the potential exists for improvements in this field. Thus forming the basis and driving force behind this study. Chapter 4 focuses in depth on the improvement of customer service in the before, during and after stages of its offerings and how this can contribute towards achieving a greater competitive edge. The desired outcome would therefore be to take ordinary customer service to a level of extraordinary customer service. 16.

17 2.4 Customer Service It is important to understand the concept of customer service and what defines ordinary and extraordinary customer service. The quality of service in the service sector is a subjective measure where quality is an objective measurement in manufacturing. Human interaction in service encounters is a critical factor in service quality and competitive success, and is clearly dependent on the capabilities of the person delivering the service (Czepiel et al., 1985). Service quality and customer satisfaction have traditionally been conceptualised and measured as a cognitive disconfirmation of a comparative standard or expectation gap (Grönroos, 1984; Parasuraman et al., 1985; 1988). Four concepts of service quality have been defined by Parasuraman et al. (1988:14) Perceived quality versus objective quality. Customers have a perception of quality that is different from that of marketers. Customers are more subjective than marketers. Marketers view service quality more conceptually than customers and customers are more likely to vary in their perception of quality than marketers Perceiving quality as an attitude, an overall evaluation of a product or service. Customers think in terms of the characteristics of the service and its provider, and use criteria to evaluate quality. Attitude is perceived as an overall judgement relating to the goodness of the service. 17.

18 2.4.3 Perceived satisfaction usually relates to each specific service provided. Continued favourable incidents of satisfaction lead to customers developing a perception of high service quality Expectations compared to perceptions. Customers perceive service quality by comparing their expectations with their perceptions of performance. Expectations are perceived as wants or desires by customers and lead to what services they think should be provided. It is therefore important for the UCT GSB Exec Ed unit to close the gap between customer s expectations and the reality of their experience. Ordinary customer service lies within the domain of meeting the expectations of the customer. Extraordinary customer service can therefore only be attained if the expectations of the customer are exceeded. 18.

19 2.5 A Strategic Vision for UCT GSB Executive Education The UCT GSB set themselves a goal to become the first choice of potential executive education clients. This was done in response to the ever changing executive education environment and the need to attain and maintain a competitive advantage. The UCT GSB formulated a strategic vision as part of the Equis Self Assessment Report in 2006 to bring them closer to realising this goal. The four major elements of the strategic vision are discussed in the rest of this chapter with special emphasis on the practical steps taken by the UCT GSB Exec Ed unit to fulfil its vision Structural Changes to Adapt to the Changing Environment The UCT GSB decided to dismantle its Executive and Management Education (EME) unit in 2004 in answer to the widespread belief that customised, credit bearing, qualification-based programmes would be where the market growth for the school lay. Two separately functioning educational units were established, namely Corporate Learning (CL) and Executive Education (Exec Ed). Corporate Learning would concentrate on the delivery of customised, credit bearing, qualification-based programmes. The initial idea was for Executive Education to concentrate on the delivery of short courses that would not lead to a qualification and would bear no credits. The offerings would mainly be focused on open enrolment programmes and limited customised programmes. As previously discussed in Chapter 2.1, the education and training legislation governing executive education was changed by the South African Qualification 19.

20 Authority (SAQA) in The possibility for companies to claim back their money from the Skills Development Fund for non-qualification based training, came about through the acceptance of Continuous Professional Development (CPD) as a new category of education. (CPD) is a legitimate area of study for professionals and executive education courses for professionals could be classified under this category. Continuous Professional Development (CPD) breathed new life into the non-qualification based open and customised programme offered by Exec Ed. The value of Exec Ed lay in the ability to run tailor-made solutions for organisations as well as truly made to order programmes which further the continuous professional development of employees and address organisational changes and requirements Aligning Exec Ed with the Mission and Vision of the UCT GSB The UCT GSB corporate mission and vision are spelled out in its marketing strap-line and by-line The International Business School in Africa and Growing Leaders in Emergent Markets. It was important for UCT GSB to align Exec Ed to the mission and vision of the school and the following two actions were taken: Internationalisation of Exec Ed Exec Ed entered The Economist Intelligence Unit 2005 Survey on Executive Education for Open Enrolment Programmes. UCT GSB received a favourable review with a rating of 3.9 (good) and special mention was made of the range of 20.

21 programme offerings, repeat business on programmes, the content of the programmes, with the highest rating being for faculty quality. Table 2.5. Breakdown of UCT GSB Exec Ed Individual Ratings Open Enrolment for 2005 Rating Criteria Rating Content of the programme 4.0** 4.0** Internationalism of the programme Faculty quality 4.2** 4.2** Amenities Quality of participants Post-course support Ability to demonstrate impact Value for money Number of courses offered 27** 27** Level of repeat business (%) 85** 85% ** = Excellent Source: The Economist Intelligence Unit 2005 Survey on Executive Education Open Enrolments 21.

22 Table 2.6. Business Schools rated as "good" by The Economist Intelligence Unit for 2005 Business School Country Rating (out of 5) Northwestern University - Kellogg School of Management US 4.0 Thunderbird - Garvin School of International Management US 4.0 University of Cape Town - Graduate School of Business South Africa 3.9 University of Michigan - Stephen M. Ross School of Business US 3.9 Ohio State University - Fisher College of Business US 3.9 Pennsylvania State University - Smeal College of Business US 3.9 Stanford Graduate School of Business US 3.9 Source: The Economist Intelligence Unit 2005 Survey on Executive Education Open Enrolments The Exec Ed unit has managed to successfully fulfil the requirements needed for non-qualification based customised programmes to be rated in 2006, together with the open enrolment programmes. The ranking gave credibility to the Exec Ed unit and aligned it with the mission of the UCT GSB. The international profile and presence of Exec Ed have further been cemented by partnering with the University of Namibia to deliver leadership development programmes. This joint venture forms part of the ongoing commitment to the SADEC region to increase the ability of less developed countries to build the skills base of their workforce. A joint venture has also been established with the 22.

23 Kenyan School of Professional Studies for the delivery of open programmes in Nairobi Growing the Leadership Backbone It was important to align the Exec Ed offerings with that of the vision of the UCT GSB. A decision was taken to create a by-line for Exec Ed: Growing the Leadership Backbone. Exec Ed set out to align all offerings according to three levels of leadership development: from junior to middle management, middle to senior management and from senior management to executives. The three levels of the leadership backbone were clearly articulated in the New Managers Programme, the Programme for Management Development and the Executive Leadership Programme. Table 2.7. Levels of Leadership Levels of Candidates Leadership Strategy HR Coaching Marketing Finance Operations LEVEL 1 Senior Management to Executive Executive Leadership Programme X X X X X X X Strategic Leadership Coaching X X X Mentor: The Art of Conversation X X X Strategic Human Resource Management X X X Negotiating for Long-term Results X X Creategy X X X Global Trends X X X X X Strategic Marketing X X 23.

24 Advanced Project Management X X X X X Thinking with Your Gut X X Creative Tools for Optimising Team Performance X X X BEE X X X X X LEVEL 2 Middle to Senior Management Programme for Management Development X X X X X X Negotiating for Long-term Results X X X Mentor: The Art of Conversation X X X Project Management X Thinking with Your Gut X X Strategic Marketing X X Creative Tools for Optimising Team Performance X X X Embracing Complexity and Diversity X X X Coaching to Excellence X X Associate Coaching Course X X Professional Coaching Course X X BEE X X X X X LEVEL 3 Junior to Middle Management New Managers Programme X X X X X X Project Management X X HR Practitioners Programme X Finance for Non-Financial Managers X Smart Strategy X X A-Z of Strategic Brand Management X Embracing Complexity and Diversity X X X Coaching to Excellence X X Source: Executive Education [Online]. Internet: Table 2.7 provides delegates a breakdown of the 2007 offerings according to the three levels of management development. It helps potential delegates to make sense of where the gaps in their professional development are and gives companies guidance with succession planning. The aligning of offerings based on the leadership backbone has proved successful with a significant 46% increase on open enrolments for leadership programmes from 2004 to

25 Table 2.8. Numbers on Leadership Backbone Open Programme Enrolments Leadership Backbone Open Programmes Executive Leadership Programme Programme for Management Development % Change Since % % New Managers Programme % Overall Increase in Numbers Since % Source: Self Assessment Report for Equis Accreditation UCT GSB (2006) Unpublished Report Overhauling the Open Programmes Offerings The need was identified for open programme to be overhauled in order to remain innovative and up to date. Rumboll (2006) concluded that as a result of the overhaul, an initiative was taken to brand the unit first, internally, as the lab for the school. Here the vision has been that Exec Ed is the place where experimentation can happen and new ideas and models can be tested. This has resulted in nine new and innovative product offerings for 2005 and twelve in A resulting increase in delegate numbers has also been experience as can be seen in Table

26 Table 2.9 Open Programme Offerings: Public Programmes Number of delegates New Programme A - Z of Strategic Brand Management Advanced Capital Budgeting 11 New Advise-based Financial Planning 48 New Black Economic Empowerment 10 Business Acumen for Anaesthesiologists 25 New ChinaWise 25 New Conflict Resolution 9 New Creategy (Strategy, Creativity & Innovation) 17 New Embracing Complexity and Diversity 7 New Executive Leadership Programme 27 New Executive Management Programme 24 Finance for Non-Financial Managers Frontiers in Managing Reform & Regulation in the Electricity Sector 40 Frontiers in Managing Reform & Regulations in the Infrastructure Industries 40 Independent Power Producers & Power Purchase Agreements International Marketing Strategy 12 New Introduction to Capital Budgeting 11 New Lean Institute Africa New Mentoring: The Art of Conversation 11 New MRT Best Practices Workshop Negotiating for Long Term Results 30 New New Managers Programme New Millennium Management 18 New Programme for Management Development Project Management Project Management - Advanced 22 New Property Development Programme Relationship Marketing New Re-writing the Marketing Plan 24 New Second Change Maths Smart Strategy 15 New Strategic Human Resource Management Strategic Leadership Coaching 26 New Strategic Marketing New Strategy Master Academy 13 Wine Marketing - Advanced 11 New Wine Marketing Programme 61 5 Source: Total number of delegates Executive Education [Online]. Internet: The number of delegates from SADC (Southern African Development Community) and COMESA (Common Market of Eastern and Southern Africa) countries has also shown a significant increase. According to Rumboll (2006) 26.

27 up to 40% of delegates come from primarily African countries for leadership development at the executive education unit. Repeat business from organisations sending delegates on the leadership backbone of open programmes are at a current rate of 85% Ability to deliver tailored programmes The re-structuring of the Executive and Management Education (EME) department in 2004 and the changes in legislation pertaining to executive education opened the market for Exec Ed to grow its customised offerings. The biggest growth has been in 2006 as illustrated in Table Table 2.10 Customised Offerings: Customised Programmes Number of delegates New Programme Acorn Internship Programme 14 New Anglo Platinum - Senior Leadership Programme 29 New J & J Finance and Project Management Programme 30 New Johnson & Johnson - Hospital Leadership Programme Metropolitan - Project Management 13 New Metropolitan - Senior Leadership Programme 23 New Pam Golding Properties - Management Programme 25 New Protea - Executive Leadership Programme 120 New SAB Millers - Leadership Development Programme New Scaw Metals - Lean Institute Africa 20 New Second Change Maths - W-Cape Education Dept. 24 New Second Change Maths - W-Cape Education Dept. 30 New Strategy - Western Cape Education Department 15 New Strategy - Western Cape Education Department 15 New Sun International - Business Leadership Programme 24 Sun International - Strategic Leadership Programme 18 New Toyota - Strategic Leadership Coaching 13 New Western Cape Health Department - Hospital Leadership Programme New Source: Total number of delegates Executive Education [Online]. Internet: 27.

28 Fourteen new clients were contracted in 2006 for customised programmes, with an additional two clients returning from The revenue for customised programmes represents 33% of the total revenue for Exec Ed. This increase in customised programme illustrates the point made in Chapter 2.1 that the international trend is toward more customised programmes. The new customised programmes in 2006 were a combination of open programmes customised for clients and fully new designed customised offerings based on the Systal methodology. Exec Ed also noted four additional elements of the strategic vision, apart from the four already discussed above. Marketing: The budget for marketing has been fixed at a minimum of 10% of the Exec Ed annual revenue. The main focus of the marketing campaign has been to promote the idea of Growing the Leadership Backbone in the print media and has proven extremely effective in branding the offerings of the Executive Education Unit both at an open and a customised level. Educating the market on the offerings of Exec Ed and the changes in legislation has been part of the campaign. Management of the customer base and Quality of the client relationship: UCT GSB appointed a corporate relationship manager position to address the management of the customer base and to continuously improve the experience of clients particularly when it comes to customised programmes. Understanding of the adult learning process: According to Rumboll (2006) UCT GSB does not believe in transmission-based education. 28.

29 Instead we create contexts within which people can learn. We recognize that learning is a social activity and that people learn best when they are holistically engaged in experiences that have meaning for them. On our residential leadership programmes, participants are introduced to theoretical and practical tools which give them access to a different learning and leadership paradigm. Topics include listening skills, noticing and awareness, life stories, reflective practice, understanding racism and sexism. These sessions are highly interactive and experiential. Methods include group work, case studies, role play, audio-visual material, facilitator-led discussions, presentations from professionals, and live organisational studies. Measurement of the impact of learning: UCT GSB makes use of four primary mechanisms to measure the impact of learning: - The level of repeat business; - The use of reflections based document, e.g. critical logs; - The impact of action learning projects in the organisations; and - The promotion of delegates who ve attended Exec Ed courses All these actions have been taken in the light of the growing need to become more competitive by developing an offering that in its nature is a competitive edge for the business school. An appreciative inquiry was found to be the best vehicle to provide a learning experience for the team members of the Exec Ed unit on how to make extraordinary customer service actionable. Chapter 3 gives a better understanding of the use of an Appreciative Inquiry to focus on the development of new methods to improve customer service by 29.

30 building on the positive experiences of the past. This study explored new methods of taking ordinary customer service to a level of extraordinary customer service. In achieving extraordinary service the UCT Graduate School of Business will contribute towards the achievement of a competitive edge in the competitive market of executive education. 30.

31 3. RESEARCH DESIGN 3.1 Research Strategy and Methodology The research strategy deemed appropriate for this study is action research. Action research is a participatory democratic process concerned with developing practical knowing in the pursuit of worthwhile human purposes, grounded in a participatory world view. Reason & Bradbury, (2001:1) The specific methodology applied was an Appreciative Inquiry (AI). This innovative new approach is appropriate to bring about both small and large-scale systems changes. It can be used to facilitate positive change in human systems, which include organisations, departments, groups, relationships, and in the classroom. According to Whitney & Trosten-Bloom, (2003:7) An Appreciative Inquiry is the study and exploration of what gives life to human systems when they function at their best. This approach to personal change and organizational change is based on the assumption that questions and dialogue about strengths, successes, values, hopes, and dreams are themselves transformational. In short, Appreciative Inquiry suggests that human organizing and change, at its best, is a relationship process of inquiry, grounded in affirmation and appreciation. Organisations use AI in a wide range of applications from strategic planning, human resource practices, team building, diversity and transformation initiatives, which is especially applicable to the South African organisation. AI is a relatively new approach to organisational change and is slowly gaining 31.

32 visibility and viability as a non-traditional organisation change intervention. Internationally it is being used in corporations, in non-profit, governmental and religious organisations and for community development on both large and small-scale change interventions. The applications for AI continue to increase as practitioners explore AI approaches in a wide variety of human system change interventions. Traditional problem-solving approaches work very well as a way of troubleshooting in linear or cause-and-effect systems. However they are less effective as a way of bringing about positive change in a human system. They focus on identifying and solving organisational problems or deficits. In contrast, AI rather focuses and builds on what s working when the organisation is at its best. The affirmative focus distinguishes AI from other change strategies and processes. It shapes their change efforts based on what they do well and on what they aspire to create more of in the future. AI may therefore be described as an organizational transformation tool that focuses on learning from success. Instead of focusing on deficits and problems, the Appreciative Inquiry focuses on discovering what works well, why it works well, and how success can be extended throughout the organization. It is both the vision, and the process for developing this vision, that create the energy to drive change throughout the organization. Johnson & Leavitt (2001:129) 32.

33 3.2 Theoretical Foundations of Appreciative Inquiry Crous (2006:9) summarised the ten principles on which Appreciative Inquiry is based in Table 3.1 by combining the work by Whitney and Trosten-Bloom (2003:54) that derived the first five principles from Cooperrider s doctoral dissertation, and incorporated three of their own. Two more principles suggested by Barrett and Fry (2005:49), and Stavros and Torres (2005:78) were added. Table 3.1: Summary of the 10 Principles of Appreciative Inquiry 1. The constructionist principle Words create worlds Reality, as we know it, is a subjective vs. objective state It is socially created, through language and conversations 2. The simultaneity principle Inquiry creates change Inquiry is intervention The moment we ask a question, we begin to create a change 3. The poetic principle We can choose what we study Organisations, like open books, are endless sources of study and learning What we choose to study makes a difference. It describes - even creates the world as we know it 33.

34 4. The anticipatory principle Image inspires action Human systems move in the direction of their images of the future The more positive and hopeful the image of the future, the more positive the present-day action. 5. The positive principle Positive questions lead to positive change Momentum for large-scale change requires large amounts of positive affect and social bonding. This momentum is best generated through positive questions that amplify the positive core. 6. The wholeness principle Wholeness brings out the best Wholeness brings out the best in people and organisations Bringing all stakeholders together in large group forums stimulates creativity and builds collective capacity. 7. The enactment principle Acting As if is self-fulfilling To really make a change, we must be the change we want to see. Positive change occurs when the process used to create the change is a living model of the ideal future 8. The free choice Free choice liberates power 34.

35 principle People perform better and are more committed when they have freedom to choose how and what they contribute Free choice stimulates organisational excellence and positive change 9. The narrative principle As we weave stories, so we create lasting bonds The act of sharing stories about the best of the past sets in motion powerful interaction and relationships from which cooperation and desire to change result Stories provide coherence and by entering into stories people connect with one another and they learn. 10. The awareness principle Awareness supports the application of the other Principles; It unifies and amplifies them, and magnifies the effects of appreciative inquiry Awareness invites us to be self-reflective and actively engaged in our relationships By practicing awareness, the other principles of appreciative inquiry come alive in our daily lives AI s appreciative, affirmative emphasis distinguishes it from other forms of action research. AI facilitates the development of a deep, collaborative appreciation of what is well and good in organisations and social systems. 35.

36 3.3 The Appreciative Inquiry Process The underlying principles as discussed in Table 3.1 above come to life through the design of the basic AI process. These can be described in the following phases of action: Defining the focus of the inquiry. Collaboratively defining the topic(s) for an appreciative inquiry is perhaps the most critical phase of the process. It is ideal for a team of people representing the different section of the organisation to compile and define the focus topics. This will ensure broader support and impact. Questions that are supporting the appreciative nature of the inquiry are developed during this phase. Discovering people s experiences of their group, organisation or community at its most vital and alive and clarifying what made those experiences possible. By paired interviews the positive questions are discussed and the best stories or quotes are reported back to the bigger group. The group summarise the quotes and stories and through discussion identifies a positive thread that runs through all the stories. Dreaming together to envision a future in which those exceptional experiences form the basis for organising in the future. By making use of the stories from the Discovering phase participants are invited to imagine the ideal system in the future. The group share these dreams by making use of similes or by using art, clay, song, poetry or skits to express their dreams. 36.

37 Designing appreciative systems and structures to support the manifestation of the co-created dreams. Participants design an ideal system or structure to best facilitate the realisation of their shared dreams. Destiny is the implementation of those systems and structures by organisation members in an ever-expanding positive-feedback loop of appreciative learning. Participants are given the opportunity to recognise and celebrate the new insights gained from the previous phase. Action steps are identified and responsible groups are tasked with the realisation of the dream organisation system. Figure 3.1: Appreciative Inquiry 4-D Cycle DISCOVERY What gives life? (the best of what is) Appreciating DESTINY What will be (how to empower, learn and adjust/improvise) Sustaining Affirmative Topic Choice (Define) DREAM what might be (imagine what the world is calling for) Envisioning DESIGN How it can be (determining the ideal) Co-constructing Source: Cooperrider, Whitney & Stavros, 2003:30 37.

38 Bloom, J.L. and Martin, N.A. (2001) concluded that there is a temptation to refer to AI as a process or a method but it is much more than a step-by-step activity. Rather, it represents a state of being that helps organisations and communities co-create desired futures based on their peak experiences of the past and what made those experiences possible. Characteristics of AI that make it attractive to normally hypercritical organisations include: Focusing the organisation or group on what is working, identifying the root causes of success and creating more of those conditions. Assuming that organisations are like organisms, living, breathing entities that stay healthiest when they are focused on their positive life-giving characteristics, rather than their problematic aspects. Searching for the positive elements already existing in a given situation, and building on them, the cooperative search for the best in people, their organisations, and the world around them. Systematically discovering what gives a system life when it is most effective and capable. Positing that resistance to change occurs because of how change is implemented, not because of the particular change itself. The life-giving forces of an organisation s existence that an appreciative inquiry selectively seeks to locate and highlight may be referred to as its positive core. These positive core strengths are woven throughout the phases of the 4-D cycle (Cooperrider et al., 2003). 38.