THE BUSINESS IMPACT CORPORATE OF EXECUTIVE DEVELOPMENT By: James F. Bolt, Chairman Kevin J. Sears, Research Consultant and Executive Development Associates corporate executive development are included in this Significant progress is being made in the study: measurement and evaluation of training. For Ameritech example, a recent study by the American Society for Training and Development (ASTD) provided hard BellSouth evidence that investments in workplace learning CalPERS (California Public Employees improve a company’s financial performance. The Retirement System) data came from a study that compared 540 General Motors. companies’ expenditures on workplace learning with IBM their performance. Those companies that spent more on workplace learning had: Kodak 57% higher net per employee Siemens Nixdorf InformationsSysteme AG 37% higher growth profits per employee Weyerhaeuser 20% higher ratio in market to book values. The Conclusion? The report stated that “companies that invest more heavily on workplace learning are AMERITECH’S NETWORK more successful, more profitable and more highly LEADERSHIP DEVELOPMENT valued on Wall Street.” PROGRAM (NLDP) Much less progress has been made in measuring the impact of executive development. The purpose of this Over 1,400 Ameritech managers completed the one- study conducted by Executive Development week long Network Leadership Development Associates (EDA) was to find and present evidence The goals of included: Program. NLDP of the impact of corporate executive education and Improving leadership skills. leadership development programs. Our experience Improving ability to manage in a changing and in working with CEOs in major corporations around competitive environment. the world is that they care much less about Improving productivity and quality. sophisticated measurements than they do anecdotal evidence. They know by what they see, hear and feel The program administrators felt it necessary to whether their executive development efforts are evaluate NLDP with hard data even though the making a difference. Nevertheless, this report covers concept of leadership is often considered ambiguous. both measured impact, e.g., 16-1 ROI and anecdotal The newly developed evaluation strategy was made evidence. Strategic Change: Tools and Techniques”. “Leading Eight examples of the business impact of Article from: Human Resource Planning; Tempe; 1998; Dina M. Pasalis
THE BUSINESS IMPACT OF CORPORATE EXECUTIVE DEVELOPMENT By: James F. Bolt, Chairman and Kevin J. Sears, Research Consultant Executive Development Associates Significant progress is being made in the measurement and evaluation of training. For example, a recent study by the American Society for Training and Development (ASTD) provided hard evidence that investments in workplace learning improve a company’s financial performance. The data came from a study that compared 540 companies’ expenditures on workplace learning with their performance. Those companies that spent more on workplace learning had: 57% higher net per employee 37% higher growth profits per employee 20% higher ratio in market to book values. The Conclusion? The report stated that “companies that invest more heavily on workplace learning are more successful, more profitable and more highly valued on Wall Street.” Much less progress has been made in measuring the impact of executive development. The purpose of this study conducted by Executive Development Associates (EDA) was to find and present evidence of the impact of corporate executive education and leadership development programs. Our experience in working with CEOs in major corporations around the world is that they care much less about sophisticated measurements than they do anecdotal evidence. They know by what they see, hear and feel whether their executive development efforts are making a difference. Nevertheless, this report covers both measured impact, e.g., 16-1 ROI and anecdotal evidence. Eight examples of the business impact of corporate executive development are included in this study: Ameritech BellSouth CalPERS (California Public Employees Retirement System) General Motors. IBM Kodak Siemens Nixdorf InformationsSysteme AG Weyerhaeuser AMERITECH’S NETWORK LEADERSHIP DEVELOPMENT PROGRAM (NLDP) Over 1,400 Ameritech managers completed the one- week long Network Leadership Development Program. The goals of NLDP included: Improving leadership skills. Improving ability to manage in a changing and competitive environment. Improving productivity and quality. The program administrators felt it necessary to evaluate NLDP with hard data even though the concept of leadership is often considered ambiguous. The newly developed evaluation strategy was made “Leading Strategic Change: Tools and Techniques”. Article from: Human Resource Planning; Tempe; 1998; Dina M. Pasalis
Business_Impact_of_Corporate_Exec_Dev.docx