Corporate World Goes Back To School, Too

By Patrick Cataldo, Associate Dean for Executive Education

While children of all ages prepare to head back to the nation's classrooms, this is the perfect time for business leaders to consider the value of lifelong learning. Certainly, we all understand the need for a strong basic education for young people. However, the importance of adults "going back to school" to keep up with the latest developments in business knowledge and perspectives should not be dismissed.

The fact is, to stay competitive in the face of stiff global competition, organizations must provide their most important assets—their people—with the key skills to transform organizations, to assume leadership roles. Companies understand that senior-level leadership and management competencies can be learned, refined, and enhanced.

The investment in people is as critical to business success as any other investment made by a company or organization. Every day, corporate America is seeing the big picture more clearly: Talent development is the best way to stay ahead in the marketplace while improving retention rates. In the 21st century, it takes more than compensation to keep employees motivated. It requires providing opportunities to grow and develop in their careers. High-potential leaders crave these opportunities and appreciate it when they are offered.

The needs of a business dictate the investment required. Often, that means sending people to external programs. Ed Betof, vice president of talent and chief learning officer for Becton Dickinson, is right on the money when he says, "We have to have the right talent in place to compete, to foster innovation and to continue to grow. This is critical as more Baby Boomers retire."

Senior vice president of human resources for DuPont, Jim Borel, agrees.

"We don't have the luxury to operate only at the strategic level today," he says. "The speed of decisions and the ability to execute are a key focus for us along with managing overall employee accountability."

A survey of business leaders from well-known companies such as FedEx, U.S. Steel, Rite Aid, Trump Hotels, Lehman Brothers, PPG, Liz Claiborne, and others, revealed that the most pressing issues facing their organizations include driving innovation, developing global perspectives, challenging leaders to deal with uncertainty, and continuing sustainable growth. In addition, the survey found that companies are looking to create a more diverse pipeline of management candidates.

Many businesses are encouraging their people to sharpen their functional expertise in supply chain, finance, and marketing along with their leadership skills. According to Dr. Ralph Oliva, publisher of the Trends Study of marketing experts conducted by the Institute for the Study of Business Markets at Penn State, "Improving their knowledge of customer needs, market segments, and the drivers of customer value" head the list of company priorities for 2007.

Ian Rowden, executive vice president and chief marketing officer of Wendy's International, says, "Our challenge is preparing people to deal with the changing customer environment, competition, and the effects these have on the economic model for the business."

Keeping executives on top of their games is a major concern for all businesses. The question is, how is it best done? There is an incredible palette of development opportunities from which to choose, such as readings or Web-based instruction. Companies provide internal offerings or send people to external programs or do both.

Research conducted by UNICON, the international consortium for university executive education, determined the key attributes when selecting an executive education provider. The study identified eight decision criteria: school reputation, program content, faculty expertise, facilities, peer involvement, location, price, and positive past experience. The findings showed most important considerations were content, reputation, and faculty.

Obviously, the bottom line counts, and when there is an investment, there must be a return. Bassi Investments, a money management firm with a unique and powerful focus, thinks there is. In fact, Bassi tracks and invests in a portfolio of companies that invest in their people with names such as Cisco, IBM, Kimberly-Clark, and Microsoft.

This article originally appeared in the Centre Daily Times.