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What is effective management development? A school of management’s perspective

Author: Claire Parkin, Cranfield School of Management
First published: 2002

Management development can cover a wide disparity of disciplines. Cranfield School of Management suggest the factors that constitute a cohesive development course, showing how it can be applied beneficially.

One of the few unique advantages that companies can identify in trying to gain a competitive edge is their people. How can they best exploit existing knowledge and talent, and create worthy leaders? Organisations increasingly turn to business schools, consultancies and other similar institutions for answers.

Any significant development or education programme is a large investment, and one that needs careful consideration and justification. Organisations may be tempted to purchase programmes from providers who promise a quick fix. However, purchasing a programme or programmes that can be accessed by all to the same advantage, is unlikely to provide the unique developmental solution which is called for. Up-to-date knowledge about running the business, in the standard subject areas of finance, marketing and so on is essential. But such knowledge gained through education is only part of the story.

A well-designed development programme goes further by facilitating the translation of this knowledge into practice in the context of the organisation, its culture and its background. It results in individuals who are not only equipped with

• new ideas, frameworks and knowledge, but also with
• the ability to directly apply those concepts in their company context, and
• the capability to develop new insights and skills for the immediate and future benefit of the organisation.

It is this active process that distinguishes context-based management development from the one-way knowledge input that characterises much education. It describes a process whereby work with individuals is rooted in the context of the organisation, so that the organisation's issues and dilemmas are addressed through successful knowledge transfer via individual learning.

Experience suggests effective management development requires a thorough application of ten steps:

1. Discuss and clarify what needs to change, strategically and in the organisation
2. Recognise how management development will contribute to this
3. Select a partner; considering internal and external resources
4. Agree desired behaviours and objectives
5. Check how this compares with current culture, organisation and competence
6. Position programme and its objectives, agree top level involvement
7. Design appropriate learning, blending various approaches with relevant content
8. Implementation
9. Monitor, evaluate and reinforce new behaviours
10. Make changes and link back to step 1

Whilst these steps may seem uncontentious, even obvious, in practice the process often gets truncated as several steps are skipped. For example, in the desire to get a programme rapidly under way, insufficient research may be done to hone the language and incorporate examples relevant to the needs of the organisation. The business can change and the programme content loses touch and becomes outdated. Top managers lose interest, this isn't addressed and participants begin to drop out. Such factors can cause a development initiative to miss its mark. Disillusionment and scape-goating can start which may prejudice the success of current and future programmes.

An example of management development in action

A financial services company has long been, and continues to be, an established UK leader. However, aggressive new players marketing new customer offerings were eroding the company's market share at a disturbing pace.

In considering how to stop the attack and achieve competitive advantage, the company realised that, unlike the technology on which their superiority had been previously based, one area of the business that could not be emulated was the expertise and potential of its people.

The company sought an innovative development approach that would enable its managers to attain new heights of performance and lead it to a different kind of future success. This was a bold step for a company that had also to cut costs, and in which traditional practices had left the legacy of a restrictive internal structure and outdated practices. However, above all, it was a "people business" and the CEO understood that development of talent was critical to the company's future prospects.

We worked with the company's in-house team to identify the high-fliers who would be the next generation of directors. Close work at organisational level then went hand-in-hand with work with the selected managers. The key capability requirements were enhanced strength in handling change, leadership and project matrix management. All participants attended a strategic leadership module.

To fully achieve the aim of creating change-oriented, fresh and forward-thinking leaders, individual development work with the managers sought to take them to new levels of ability, confidence and resilience. This included work on their personal skills; emotional stability (such as stress management and empathetic leadership), analytic and thinking abilities, and self-awareness. They were encouraged to take control of their own development agenda, and the range of opportunities for this included personal mentoring, special projects, undertaking a part-time MBA and other personal impact programmes.

Feedback from the company indicates that the aim of creating a pool of talented, ambitious people is being achieved and is helping in the battle for market position. They are improving their already high standards. Many participants have moved quickly to more senior levels. Of course, good management development goes beyond individual progression; for example, if career and succession planning is incorporated in the strategy it provides a means of retaining the best people, and showing internal and external aspirants that it is rewarding to work for this company.

The company tested the marketplace thoroughly before they decided on a partner who would provide academic and specialist input focused on the industry and understanding of their company context. In the final analysis, flexibility, willingness to customise, and demonstrable ability to add value were important reasons for their choice. The company reports that expenditure on the programme has been repaid by the improved performance of key individuals at an important point in the life of the business. A critical factor has been the effective translation of knowledge into action.

Indicators of success

The example is indicative of some important success factors; typically management development initiatives which work have these features:

• A clear idea of what is required
  This goes beyond the rather generalised "We want well-rounded people", to specific knowledge and behavioural objectives. It enables success criteria to be firmly established against a clear idea of current realities

• Close partner relationships
  Expectations on both sides need to be clear and open. Responsibility for development is a joint process which needs regular communication to be successful, built up over time

• Willingness to listen, learn and improve on both sides
  Feedback and improvement need to be embedded into the organisation. This requires the programme to change over time and the provider to respond to emerging needs

Getting it right

Therefore, to achieve lasting change from a management development initiative we suggest you consider the following action points:

• Clarify your business aims
  Linking the programme to clear business aims is essential. Do not worry if initially you do not know, or are unable to articulate, exactly what development solution is best to respond to that need. Working this through with a knowledgeable provider is an essential part of the process. Their consultancy skills are crucial at the outset and as the programme develops. A good partner will demonstrate proven evaluation techniques to identify key measures of success and these should be built in so that the programme can be reviewed accordingly.

• Involve top management
  The process should undoubtedly involve working closely with the top management team, and preferably, the CEO. Top level "buy-in", in terms of understanding and commitment to the programme, is essential for achieving significant and sustainable change. However enthusiastic, solo support from HR champions is unlikely to lead to success.

• Integrate into long-term plans
  Understand that development is not a "quick-fix", but part of a long-term plan to take the organisation forward. Therefore it does not end in the classroom. You will need to work with the development partner to put in place career paths and other initiatives such as coaching and mentoring to ensure that you both recruit and retain the people that you have invested in, and make the best use of the development. In choosing development priorities you need to assess how much personal development and how much organisational development content there should be.

• Use a variety of learning approaches
  Development is often about using a variety of learning tools, only some of which are classroom based. So-called blended learning is increasingly popular, using open learning, development projects and coaching in combination with traditional methods. Open learning can be web-based or pc-based, making it easy for managers to learn at their desks. It can be useful for questionnaire completion, introduction to a topic or as a refresher, with the additional facility of on-line discussion groups or conferences. What a good quality partner business school will offer is access to its own established and far-reaching networks of business schools, consultancies and other institutions, who bring specific expertise, or a different location. The quality provider will manage partnerships for you, as best fits the integrated plan. For example, we are managing a partnership with a business school in Boston and one in Hong Kong to get the best development solution for a company's international managers.

• Choose for depth and flexibility
  In choosing a partner, depth and flexibility should be key requirements to respond to changing needs. As in most aspects of life and in the case of management development it is true that, more often than not, you get what you pay for. With good quality schools, this means you are paying for experienced, top-rate faculty; access to relevant and academically sound research (some development programmes will incorporate bespoke research, for the exclusive access of the client); a history of working with organisations for research and development which provides limitless benchmarking opportunities, and the reliability and kudos of an established and respected brand. Some development programmes use consortia, whereby non-competing companies join together to give their participating staff the opportunity to share best practice and meet the specific needs of partners. For example, we run a consortium of an international banking group, an insurance company, a regional police force, a motoring services group and an industrial conglomerate.

• Research before you choose a partner
  Because management development is a big investment, be sure which is the best provider for you drawing on your personal research. In aiming for a long-term partnership, question carefully the degree to which learning has been successfully applied. Do some analysis before making a decision, including looking at user surveys, asking for references and perhaps sitting in on classroom and other sessions. Representatives from a quality provider will spend time with you, both at board level and in day-to-day operations, to ensure that they fully understand your organisation and its issues. They will also have discussions with key personnel including the CEO. After this stage of the process, you will have a fair idea what you will be getting, and moreover, will have a feel as to whether the chemistry will work. You will know if the provider understands and listens, and is tuned in to your organisation.

Conclusion and Checklist

It requires knowledge and well-founded confidence to invest wisely in management development as a means of shaping the organisation. By working with a top quality management development provider who truly understands the challenges of the sector and those specific to your company, the pay-offs can be worthwhile in contributing to sustainable growth. Effective development of individuals will help create the managers who will lead your organisation to future success.

As a quick guide to the consideration of management development in your organisation, complete the following checklist and ask colleagues to do the same. Consider using the results of this to review strengths and any improvements required to make the most impact from a development initiative.