54
Electronic copy available at: https://ssrn.com/abstract=3064353 1 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals in Latin America Author Details (please list these in the order they should appear in the published article) Author 1 Name: Dr. Camelia Ilie University/Institution: INCAE Business School Country: Costa Rica Author 2 Name: Dr. Guillermo Cardoza University/Institution: INCAE Business School Country: Costa Rica Author 3 Name: Dr. Schon Beechler University/Institution: INSEAD Country: France Author 4 Name: Dr. Jaume Hugas University/Institution: ESADE Business School Country: Spain Corresponding author: Dr. Camelia Ilie Corresponding Author’s Email: [email protected]

Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

  • Upload
    others

  • View
    2

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

Electronic copy available at: https://ssrn.com/abstract=3064353

1

Designing Leadership Development Programs for High Impact in Emerging Economies:

The case of Spanish Multinationals in Latin America

Author Details (please list these in the order they should appear in the published article)

Author 1 Name: Dr. Camelia Ilie

University/Institution: INCAE Business School

Country: Costa Rica

Author 2 Name: Dr. Guillermo Cardoza

University/Institution: INCAE Business School

Country: Costa Rica

Author 3 Name: Dr. Schon Beechler

University/Institution: INSEAD

Country: France

Author 4 Name: Dr. Jaume Hugas

University/Institution: ESADE Business School

Country: Spain

Corresponding author: Dr. Camelia Ilie

Corresponding Author’s Email: [email protected]

Page 2: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

Electronic copy available at: https://ssrn.com/abstract=3064353

2

Abstract

Traditional learning methods for executive education have been based primarily on lectures

and case studies. However, these can no longer provide the type of management development

training that companies need to compete effectively in volatile, uncertain and complex

business environments. Providers of Leadership Development Programs (LDPs) need to

ensure that both the knowledge transmitted and the competencies developed align with

organizations´ purpose, strategies, and cultures. This paper aims to link the key elements of

LDPs and their impact on the participants and their organizations, by identifying the relation

between the LDPs elements and key learning, behavior and performance indicators. Thus, we

propose a new conceptual model that links the program with its intrinsic impact (participants’

attitudes, behavior and knowledge) and its extrinsic impact (organizational indicators of

promotion, retention, and role changes following the program). In addition, we analyze the

model’s hypothesis by conducting quantitative research based on data collected from Spanish

multinational corporations with activities in Latin America.

The results of our research can contribute significant insights to LDP design, development

and evaluation that can provide tangible measures of their impact on organizational

indicators. These findings can be valuable as a measure of the strategic roles of all human

resources and talent development areas—especially in emerging economies, where

companies’ human resources and talent development departments are not yet viewed as

strategic partners for top executives.

Keywords: Leadership Development Programs; Talent Development; Executive

Education; Adult Learning; Emerging Economies; Impact of Training; Latin America

Page 3: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

3

Designing Leadership Development Programs for High Impact in Emerging Economies:

The case of Spanish Multinationals in Latin America

"It is in changing that things find purpose."

Heraclitus

INTRODUCTION

The shortage of management and technical staff with specialized skills poses significant

challenges to multinational corporations' (MNCs) ability to do business in complex, uncertain

and dynamic environments characterized by widespread globalization, emerging knowledge-

based industries, disruptive technological change and keen competition (Cardoza, 2001;

Dalakoura, 2010; Grossman, Salas, Pavlas & Rosen, 2013; Gurdjian, Halbeisen & Lane,

2014).

According to the Corporate Learning Factbook (2014), spending on corporate training grew

by more than $130 Billion worldwide. This report mentions that 60 percent of all companies

indicate that the leadership gap is their top business challenge, and, therefore, they invest

35% of their entire training budget (35 cents of every training dollar) on LDPs. Also, a recent

survey by Deloitte (2016) reports that 89 percent of executives rated organizational

leadership as an important priority, and more than half of the respondents mentioned that

their organizations are not ready to meet leadership needs.

Though these studies reveal that HR managers agree that executive training is vital to

developing leadership and increasing employee commitment and productivity, critics such as

Beer et al. (2016) argue that learning does not have the expected impact because participants

in executive programs return very quickly to older ways of working and making decisions. In

Page 4: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

4

their opinion, participants in LDPs, once they return to their jobs, very often cannot apply

new knowledge and tools because the culture and organizational systems remain the same.

Gurdjian et al. (2014) also observe that LDPs tend to fail in the first place because they

overlook the context, decouple reflection from real work, underestimate mindsets, and fail to

measure results. Also, budgetary restrictions frequently force firms to manage corporate

spending on leadership development more efficiently. Moreover, firms are asked to

demonstrate the added value and impact of investments in executive education on achieving

corporate objectives and goals (Dragoni, Tesluk, Russell & Oh, 2009; Eiter & Halperin,

2010; Gurdjian et al., 2014; Kirkpatrick & Kirkpatrick, 2009; Mattioli, 2009).

Furthermore, measuring the impact of LDPs in an organization is challenging because these

programs are intended to produce results in the long term and to prepare talent to assume

leadership responsibilities in the future (Perez, 2014). In fact, seeing the effect of LDPs on

job performance is improbable in the short term. On the other hand, it is hard to isolate the

effect of training on a leader’s development and unrealistic to expect that an executive would

become a great leader merely by attending LDPs (Day, 2014). Even though, as Charlton and

Osterweil (2005) argue, "measuring ROI is like seeking the Holy Grail," a reliable LDP

methodology is needed to ensure a better return from growing corporate investments in

executive training.

In response to these requests, during recent years, LDPs have shifted from a focus on

teaching best management practices to an emphasis on training managers to be leaders,

capable of successfully designing and implementing business strategies through unified

leadership styles and corporate cultures (Hugas, 2007; Ilie, 2009). To do so, LDPs are also

Page 5: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

5

gradually incorporating new active and experiential learning approaches, including team-

based computer simulations, corporate case studies, role-playing, 360-degree feedback,

executive coaching and mentoring, high-involvement experiences, action learning projects,

and demonstration-based learning. Similarly, LDPs’ curricula are increasingly covering

subjects associated closely with globalization, sustainable development, global trade, change

management, corporate social responsibility, ethical and responsible leadership, cross-cultural

management, and diversity management (Akins, 2013; Dalakoura, 2010; Day, 2000; De

Meyer, 2012; Grossman et al., 2013; Klimoski and Amos, 2012; Magni et al., 2013; Quigley,

2013; Schneider et al., 2010; Smith, 2013; Strebel and Keyes, 2005; Thomas, 2013). To

incorporate the necessary complexity to make program design effective, LDPs are also

expected to correctly align development plans and career paths with corporate strategic

interests (Chen, Chang & Yeh, 2004; Cranfield-ESADE Report, 2008). They are also

expected to be linked to the identification of high-potential employees (Corporate University

Xchange, 2007) and the design of corporate succession plans (Cohn, Khurana & Reeves,

2007). Additionally, to enhance the transfer of learning and its impact, the LDPs should

create the appropriate organizational climate and manage the learning process for successful

organizational change (Yorks, Beechler & Ciporen, 2007).

Prior research on leadership development focuses mainly on developing comprehensive

frameworks that include factors such as mindsets, attributes, personal growth, leadership

roles, team skills, and best practices to train leaders (Cacioppe, 1998; Conger & Benjamin,

1999). The literature also identifies the sequence of processes of instructional systems

development (ISD) in a training method (Molenda, 2003). More recently, leadership

education studies have begun to focus on the factors and the context that determine

leadership development (Dalakoura, 2010); the development of multilevel evaluation

Page 6: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

6

frameworks (Clarke, 2012); the use of different pedagogical approaches, categories and

instructional features to improve leadership training and ensure the transfer of learning

(Conger, 2013; Grossman et al., 2013; Klimoski & Amos, 2012; Jenkins, 2013; Scott &

Webber, 2008); and leader competencies and their impact on business performance (Tompson

& Tompson, 2013).

Although the studies on leadership development have contributed to the better understanding

of multiple factors that affect the development of leaders, as well as to the identification of

the best pedagogical approaches, to achieve an even greater impact, LDP design should take

more into account the business context and the barriers to organizational change. Moreover,

in addition to ignoring, to some degree, the challenges facing organizations and their

industries, leadership programs fail to maximize their impact because they lack a link

between program methodologies and their impact on organizational indicators. The present

study moves in this direction by proposing a comprehensive and dynamic model for

developing efficient methods for the LDPs. This model offers educators and practitioners a

practical tool for linking program design and methodologies with organizational indicators.

Another important factor is that the majority of research on leadership and LDPs has been

conducted for organizations in developed countries, and, therefore, the adoption of these

methodologies in emerging economies faces limitations due to differences in economic,

cultural, leadership and management capabilities. With the aim of helping to fill these gaps

in the literature, the present study uses data collected from a focus group and quantitative

research with Spanish MNC executives responsible for leadership development in their Latin

American operations. The purpose of this article is to review the contributions in the field of

LDPs, to identify key elements and to propose a process-based model to increase the impact

Page 7: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

7

of LPDs on business results, and to suggest potential future research. Building on previous

research on LDPs, this study implements an analysis of managers' perceptions of LDPs’

impact on corporate performance. It also introduces the concept of the Virtuous Circle of

LDPs as an integrative platform to identify and manage the critical factors in designing and

delivering these kinds of programs.

The paper is structured as follows. The first section provides a general overview of the main

scholarly contributions to the theory of LDPs. To simplify and organize the analysis, we

structure this section around the different value chain stages of the programs: diagnostic &

design; methods & delivery; and follow-up & evaluation. The second section proposes an

integrated model that links different aspects of LDPs with organizational impacts. The third

section presents the research hypothesis related to different stages and components of the

LDPs and the key factors that potentially increase their impact and discusses the research

results. The final section presents the conclusions of the study, the main findings and

recommendations.

LITERATURE REVIEW

A comprehensive review reveals that the literature questions the role of business schools in

training leaders and managers (Crossan et al., 2013). The literature also indicates an ongoing

debate among academics around the effectiveness of executive education programs in

developing leadership and teaching sound management practices. For instance, Pfeffer and

Fong (2002: 80) contend that there is no evidence that the training offered in business schools

improves students’ careers and that the research conducted by academicians lacks relevance

and, therefore, has little impact on organizations. Other authors also criticize the effectiveness

Page 8: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

8

of the context of classroom-based management education (Allio, 2005; Doh, 2003; Pettigrew

et. al, 2016; Raelin, 1993). Allio (2005) argues that traditional leadership programs promote

leadership literacy but not leadership competency. Some authors go even further, claiming

that business schools are becoming more and more irrelevant since they are teaching the

wrong content with the wrong methods to the wrong students (Bennis & O´Toole, 2005;

Mintzberg, 2005).

Researchers also claim the existence of a disconnection between theory and practice, or

between research and practice, in business schools (Pfeffer and Fong, 2002; Raelin, 2007).

This concern about the missing linkages between theory and practice is not new, and critics

continue to ask for both rigor and relevance. For instance, observing this problem, Raelin

(2007) advocates developing a theory of practice using both theory—to challenge

management assumptions—and experience—by using real problems that participants

encounter in their jobs. In his words, “We need to move beyond the acquisition of formal

logic to reasoning and sense making that is concurrent with ongoing practice” Raelin (2007:

513). All of these critics emphasize the need to provide context-relevant learning experiences

linked to day-to-day organizational challenges to ensure relevant and impactful results.

Another interesting discussion going on in business schools relates to leadership training.

One of the main points of these discussions relates to what methods would be most

appropriate and efficient in teaching leadership (Booth, 2010; Doh, 2003; Snook, Nohria &

Khurana, 2013). This discussion is not new; for instance, Nevins and Stumpf (1999) claim

that traditional teaching and learning approaches in management education fail to link

knowledge, skills, and concepts to leadership practice within organizations. In particular, they

believe that these methods fail to provide lifelike situations and practice opportunities for

Page 9: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

9

skill development, and they suggest developing contexts favoring active and experiential

learning styles.

To address the shortcomings of current executive education methods—in particular, the

problems of relevance and effectiveness; the need to link training to real learner's roles and

performance; and company challenges—a more integrative approach to executive education

may be helpful. This study proposes the use of an LDP's Virtuous Circle, a process-based

model that links the main steps in developing leadership and teaching sound management

practice with real organizational challenges and opportunities. Deconstructing the executive

education process into its primary value chain phases may have two important benefits: it

may help to integrate and manage the pre-program, program, and post-program LDPs'

activities; and it may introduce and evaluate experiential learning approaches that ensure the

efficient transfer of knowledge and skills that benefit the organization's goals.

A VIRTUOUS CIRCLE OF LEADERSHIP DEVELOPMENT: AN INTEGRATED,

SYSTEMIC AND DYNAMIC APPROACH

Considering that leadership development is a dynamic and longitudinal process and that

LDPs must fulfill certain needs and expectations to maximize their impact, leadership

development should be integrated and managed as a Virtuous Circle combining three

interrelated and consecutive stages.

Stage 1 is the pre-program: training needs assessment, program co-design, and preparation of

participants and organizations for learning and change. Stage 2 is the program: program

delivery and learning methodologies. Stage 3 is the post-program: follow-up and evaluation.

The Virtuous Circle of LDPs (Figure 1) should be built on a learning platform that integrates

all the steps and activities involved in the value-added chain of leadership development. As

Page 10: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

10

presented in Figure 1, this approach facilitates the management of the whole process, from

training needs identification through the transfer of knowledge and applications, including

the expected impact. The following section uses this model to build research arguments and

to formulate the hypotheses.

Figure 1. Virtuous Circle of Leadership Development

Phase 1. Pre-Program: Diagnostic & Design

During the first phase of the LDP value chain, program developers must perform a training

needs assessment to create an inventory of the organization's existing knowledge and skills.

They must also gather relevant data for identifying the necessary training requirements to

develop the talent base that the organization needs to meet its goals. As Kirkpatrick and

Kirkpatrick (2009) state, LDPs are designed to meet organizational objectives and goals;

Page 11: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

11

therefore, executive education providers should clearly define the knowledge and behaviors

(skills and attitudes) necessary to achieve the desired results.

As McClelland (1993) explains, the diagnostic phase is critical in allocating financial

resources for training and leadership development so that organizations can clearly define

“where they will have the greatest impact[,] thereby providing a positive return on the firm's

investment." To this end, McClelland (1993) presents a systematic and applications-oriented

process to determining and analyzing training needs and proposes four types of training needs

assessment (TNA) and data-gathering methods: survey questionnaires, individual interviews,

focus groups, and on-site observations. To better identify and address organizational training

needs, McClelland (1993) recommends using a combination of these types of data-gathering

and analysis methods.

Learning theory (Kolb, 1984; Kolb & Kolb, 2005) is another approach that provides a highly

effective diagnostic tool for identifying managers' development needs and the most

appropriate content and methodologies for a given group of participants. According to this

theory, executive education providers should take into account the four-stage learning

cycle—experiencing, reflecting, thinking and acting (Kolb, 1984)—and the different learning

and leadership styles (Kolb, 1984; De Vries & Korotov, 2007). At the same time, executive

programs should offer opportunities to question priorities and beliefs and to experiment with

different learning and leadership styles (De Vries & Korotov, 2007).

In addition, learning methods should be fairly broad and diverse so that the participants can

develop themselves intellectually, emotionally and practically, and, thus, the LDPs can

increase their impact on corporate challenges (Adler, Hooijberg, Kemanian, Keys, Lane &

Page 12: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

12

Strebel, 2005; Eiter & Halperin, 2010; Ilie, 2009; Jenkins, 2013; Strebel & Keyes, 2005;

Yorks et al., 2007). For instance, to ensure the transfer of learning, Conger (2013) proposes

that LDPs include learning experiences that use different pedagogical approaches, such as

conceptual frameworks, skill-building experiences, feedback, and reflection on personal

growth, including participants’ emotions and values.

In fact, to add to the complexity of effective executive training design, developers also need

to focus on emotional processes to ensure that they positively impact personal, organizational

and social change. Other researchers also argue that emotional intelligence can help to

enhance team performance and positively impact financial performance (Goleman, Boyatzis

& McKee, 2001; Goleman, Boyatzis & McKee, 2002; McEnrue, Groves & Shen, 2007;

Mirvis, 2008; Siegling, Nielsen & Petrides, 2014). They mention that high levels of

emotional intelligence “create climates in which information sharing, trust, healthy risk-

taking, and learning flourish” and advise that LDPs start with self-knowledge tools and then

move on to the knowledge and understanding of others. In a similar vein, to develop socially

responsible behavior in leaders, addressing personal traits and values is necessary to build

social awareness and social consciousness (Schneider et al., 2010; Smith, 2013).

Phase 2. Program: Learning Methods & Delivery

Recent studies on executive education trends reveal a growing demand for more-customized

programs based on specific knowledge of the participants’ own organizations. Involving

managers, faculty, and facilitators during the pre-program activities permits them to better

appreciate organizational dynamics, to understand strategic challenges, and to participate

Page 13: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

13

actively in the design and delivery process (Boiney & Mallinger, 2002; Lloyd & Newkirk,

2011; Strebel & Keys, 2005; Weldon E., 2012).

The use of real case studies based on company data and questionnaires related to business

priorities are highly recommended for developing high-impact LDPs. To ensure

transferability and use of knowledge and learning, Dover, Perkins and Wylie (2009)

recommend using customized cases since they offer a framework in which to articulate the

different education program modules, provide a historical perspective, and offer shared

knowledge for the discussions.

To ensure that action-learning-based LDPs align with corporate needs, program developers

should involve companies' senior leaders when designing the programs since they can

provide a broad outline of a company's strategy and the precise nature of the problems and

challenges their businesses are facing. Involving top managers in the early stages of diagnosis

and design facilitates the understanding of what is applicable and relevant to the company. It

also enables a better selection of participants and better team composition; assignment of

companies' internal sponsors and mentors; identification of strategic challenges; and, most

importantly, preparation of the conditions for the transfer of knowledge and verification of its

application (Tushman, O’Reilly, Fenollosa, Kleinbaum & McGrath, 2007).

However, considering that case studies only partially meet participants’ needs, LDPs should

also incorporate experience-learning methods to increase participants’ understanding and

management of personal and organizational change. As Lombardo and Eichinger (2001)

explain, the learning rule of thumb for managers is 70-20-10: managers usually acquire 70%

Page 14: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

14

of their new knowledge and practices from experiential (on-the-job) learning, 20% from

coaching and mentoring activities, and 10% from formal education programs.

Authors and practitioners recommend organizational practices and learning tools such as

simulations, narrations, reflexive diagnostics, experience sharing, debates in small groups,

peer or group coaching, outdoor “ropes-type” activities, 360-degree feedback, job

assignments, executive coaching and mentoring, among others (Doh & Stumpf, 2007;

Tushman et al., 2007; Buchel & Antunes, 2007; Day et al., 2014). In particular, several

authors highlight the importance of action-learning projects to enhance participants’ learning

and ensure knowledge and skills transfer to the work place (Buchel & Antunes, 2007; De Déa

Roglio & Light, 2009; Raelin, 2007; Thorsell et al., 2012; Tushman et al., 2007).

Since the knowledge acquired in classrooms is disconnected from the workplace, several

authors find experiential learning based on real-time work problems a powerful approach to

leadership development programs (Buchel & Antunes, 2007; Conger, 2013; De Déa Roglio &

Light, 2009; Fulford, 2013; Phoocharoon, 2013; Raelin, 2007; Thorsell et al., 2012; Tushman

et al., 2007; Yulmartin & Riyanto, 2013). Raelin (2007: 513), in particular, calls for an

“epistemology that transforms learning from the acquisition of the objective rules of wisdom

to one that appreciates the wisdom of learning in the midst of action itself.” He argues that

action learning is a pedagogical approach that “seeks to generate learning from human

interaction arising from engagement in the solution of real-world work problems” Raelin

(2007: 511).

Similarly, building on Schön´s (1983) concept of the “reflective practitioner,” De Déa Roglio

and Light (2009: 169) propose that executive training programs should integrate experiential

Page 15: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

15

learning that allows participants to transform their capabilities in real time. Along the same

line of reasoning, Yulmartin and Riyanto (2013: 499) argue that action learning facilitates

development at three levels—personal, teams and organization—and, thus, can become a

valuable tool for organizational learning strategy.

In fact, considering that learning designs based on current situations have enormous appeal

and utility in solving real problems and producing change, research and pedagogy should be

driven by action-learning projects related to the crucial issues and challenges of participants'

organizations (Boiney & Mallinger, 2002; Buchel & Antunes, 2007; Garratt, 2012; Tushman

et al., 2007; Yulmartin & Riyanto, 2013).

In conclusion, the above-cited investigations suggest the importance of considering three key

aspects—intellectual, emotional and experiential—in order to offer a transformational LDP

(DiStefano et al., 2005; De Vries & Korotov, 2007). Incorporating these three aspects into an

LDP will lead to the development of participating executives by impacting several intrinsic

capacities: their knowledge, attitudes and behavior.

In turn, the development of new knowledge, as well as a change in attitude and behavior,

should lead to better performance in the organization and to an impact on extrinsic aspects,

such as better retention, promotions, or changes in roles requiring different responsibilities.

Phase 3. Post-Program: Follow-up & Evaluation

Follow-up and Evaluation, the third part of the LDP's Virtuous Circle is a critical stage in the

training process, particularly since the recent financial crisis is forcing companies to manage

corporate spending on executive training more efficiently and to demonstrate how executive

Page 16: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

16

education is contributing to the organization’s objectives and goals (Dragoni et al., 2009;

Eiter & Halperin, 2010; Kirkpatrick & Kirkpatrick, 2009; Mattioli, 2009; Hannum & Craig,

2010). Avolio et al. (2010) recommend that organizations manage investments in leadership

training as they would any other investment that they make in anticipation of a future benefit.

Models for evaluating programs have been designed from various perspectives. Assessment

models include participant satisfaction with the program, the transfer of learning to the

workplace, and training payback (Kirkpatrick, 1979; Kirkpatrick and Kirkpatrick, 2009;

McClelland, 1993). Indeed, the evaluation of training programs is the subject of many

studies, with both researchers and managers often using the multilevel model as their

benchmark (Kirkpatrick, 1979). This model is structured in four successive levels: (1)

satisfaction of trainees; (2) knowledge acquired; (3) behavioral change; and (4) impact on

organizational performance.

According to Dolliver (1994), the evaluation process should be split into three stages. The

first involves the use of "happy sheets" immediately after each session to measure

participants’ reaction to the program (Kirkpatrick's first level). The second stage is applied six

months after the training to measure the application of skills and knowledge acquired during

training (Kirkpatrick’s second and third levels). The third stage is the long-term evaluation,

measuring sustained changes in both group and individual results (level four in Kirkpatrick's

model).

Tejada and Ferrández (2007) argue that impact evaluation should be carried out at two levels:

1) individual, which measures learning and knowledge and skill transfer to the job position;

and 2) organizational, which measures the impact on the company’s results. Although the

Page 17: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

17

final objective for any organization investing in training is to improve its managers'

performance, a direct relationship between results and the training program is hard to

determine. The effects of training on managers' performance are difficult to isolate because

jobs possess many intangible aspects. It is also important to highlight that Kirkpatrick-based

evaluation models usually involve increased cost and complexity and require more time and

greater analytical rigor as they progress through the successive levels (Winfrey, 1999). For

this reason, companies make little use of impact measurement of training programs on

organizational performance.

Defining evaluation objectives at the program-design stage (during the initial phase of

training needs assessment) is recommended to obtain good program assessments and to

achieve better results (Dolliver, 1994; Kirkpatrick & Kirkpatrick, 2009; Yorks et al., 2007).

This approach provides a practical tool for measuring both the knowledge acquired and the

behavioral changes (levels 3 and 4 in Kirkpatrick's model) and, therefore, also gives human

resources and learning and development managers the information they need to design

subsequent training programs for the same groups of participants. In this way, a more

integrated process (pre-program/program/post-program) can be adopted, leading to the

Virtuous Circle of LDPs.

The post-program follow-up to measure LDP’s success at the participant and the

organizational levels is an important part of the evaluation process. Buchel and Antunes

(2007: 410) suggest that executive education providers become much more involved in the

post-program stage by applying measures of the program’s outcomes in terms of behavioral

and cognitive transformations. Also, follow-up actions are keys to check whether the

decisions made during the program were efficiently implemented (Tushman et al., 2007).

Page 18: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

18

In summary, treating evaluation as a process throughout all the value chain stages (diagnosis,

design, development, and final assessment) helps maximize the LDP’s impact by ensuring

that the program stays aligned with its objectives. Yorks, Beechler, and Ciporen (2007: 318)

argue that the incorporation of the program assessment as an integral part of the program

design is proof that the learning is the central focus and that that the program assessment

works as the link among the program design, delivery, and outcomes.

Figure 2 presents a model with various impact levels that depicts the different stages of LDPs

and their potential impact on the participants.

Figure 2. Relation between LDPs and Program Impact. Source Authors.

Two definitions of impact are also proposed as follows:

• Extrinsic impact: related to organizational aspects, as retention, promotion, changes in roles,

increased productivity or other better results.

Emotional training

Attitude

Retention

Intellectual training

Knowledge

Results

Experiential learning

Behaviour

Promotion

+

+

+

+

+

+

+

Page 19: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

19

• Intrinsic impact: related to the personal development of participants in terms of knowledge,

attitude and behavior learning.

The following six research hypotheses are based on the arguments presented in this section:

HYPOTHESES RELATED TO THE EXTRINSIC IMPACT – RETENTION, PROMOTION,

PRODUCTIVITY (RESULTS)

H1. The impact of LDPs on the organization is directly correlated with the direct involvement

of top management in all stages of LDPs: diagnostic and design, implementation and

evaluation.

H2. The impact of LDPs on the organization is directly correlated with the inclusion of

strategic information in the program design.

H3. The impact of LDPs on the organization is directly correlated with needs assessment

surveys among potential participants during the diagnostic stage.

HYPOTHESES RELATED TO THE INTRINSIC IMPACT – CHANGE IN KNOWLEDGE,

ATTITUDE AND BEHAVIOR

H4. The impact of LDPs on the knowledge, attitudes and behaviors of the participants is

directly correlated with the use of intellectual, emotional and experiential methodologies

during the program.

H5. The impact of LDPs on the participants is directly correlated with the link between the

training program and their career development plans (promotion, retention or change of

roles).

H6. The changes in attitude and behavior are directly correlated with the involvement of top

management in the program and the use of personalized methodologies focused on individual

development, such as coaching or mentoring.

Page 20: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

20

RESEARCH METHOD

We first wanted to confirm that the research question—what are the key elements of LDPs

that can enhance their impact on participants and organizational key performance

indicators—and the hypotheses are relevant, clear and well-formulated. To accomplish this,

we organized a focus group with experts.

Focus Group

The focus group relied on the participation of a mixed group of executive education clients of

a business school: Chief Learning Officers (CLOs), Human Resources Managers, and

Business Unit Managers from Spanish multinational corporations responsible for business

expansion in Latin America. The focus group was designed to identify the key factors that

maximize the impact of LDPs; to understand managers' concerns about the variables

analyzed; and to explore the impact of these programs on participants’ corporations. The

focus group was composed of ten directors from Spanish multinationals with activities in

Latin America, including Telefonica, Gas Natural, Union Fenosa, Grupo Santander, BBVA,

and Indra. Six of the directors were human resources and development experts; two were

from functional areas with executive development responsibilities; and two were this paper’s

authors, from the executive education sector, who also moderated the group.

As an information-gathering tool, the focus group is currently the most commonly used

instrument, especially when conducting "applied" research in the fields of marketing or

market studies, when analyzing the impact of mass media communications, and when

discussing relevant issues affecting specific human groups (Sandoval, 1996).

Page 21: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

21

The focus group is the most recommended tool to conduct an exchange of experiences among

a group of people. The purpose is to foster discussion around a common topic, which leads to

the development of new ideas that would otherwise be very hard to develop (Hartman, 2004;

based on Morgan, 1988).

The recommendation for this interview technique, which can take between one and two

hours, is to form groups of six to ten people. Participants must be a homogeneous group of

people, with common occupations or interests, who will be interviewed by panel moderators.

Participants listen to everyone else's responses and may add comments to their answers. The

group does not need to achieve consensus.

The goal is to gather high-quality information in a setting in which people can consider their

points of view and compare or reconsider them, based on other people's perspectives (Quinn

Patton, 1987; Krueger, 1994). Topics to be discussed must be limited (focus), and the group

dynamics must encourage an almost ‘disorderly’ exchange of ideas, to generate new

dimensions for analysis (Hartman, 2004; based on Herndon, 2001).

To achieve the recommended dynamics in a focus group, researchers must rely on some tools

for gathering information in an organized way so that it can be used to analyze results. We

used two tools to develop the current focus group: the affinity diagram and the relationship

diagram.

During the first stage of the discussion group, when the exchange of ideas was going to be

more disorderly, the affinity diagram proved to be a useful tool to identify and structure an

issue when the situation was indeterminate. The affinity diagram involves collecting several

Page 22: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

22

verbally-stated facts, opinions, or ideas and to synthesize them in a simple diagram, grouping

them by natural affinity. The procedure for the affinity diagram is as follows:

• Each opinion is written on a single card.

• Cards with similar opinions are grouped.

• A synthesis of cards expressing similar views on the same issue is written on a

separate card.

• Another summary is made of the second-tier cards into a single card. This single card

will hold the general idea of the shared views.

In the second stage of the focus group, once ideas were grouped using the affinity diagram,

we used the relationship diagram to help clarify causal relationships in the identified

problems. The relationship diagram, used in the second stage of the focus group, is useful for

systematizing work or ideas, and it provides an efficient pathway to choose the most

important factors from a broad mass. The procedure to elaborate a relationship diagram is as

follows:

• The issue is stated in writing.

• A list of probable causes of the problem is made.

• Next, group members identify an effect corresponding to each cause, which is written

down and circled.

• Causes are related to effects using arrows.

• When an effect is the reason for another effect, an arrow is drawn from the initial

effect-cause to the next corresponding effect.

Finally, the relationship diagram was used in the second stage of the focus group because, in

addition to organizing initially collected ideas, it is recommended for deeper understanding of

Page 23: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

23

the issue and to formulate assumptions that will be verified later with a quantitative study

(Calduch, 1994). In the case of the present research, ideas collected during the focus group

(See Annex and Table 1 for a detailed explanation of the focus group organization and

findings) were used to improve questions in the quantitative questionnaire. Below is an

explanation of the design of the quantitative instrument and of the data-gathering process.

The remaining part of this paper presents an analysis of the quantitative study results, the

conclusions and future lines of investigation.

Quantitative research

The quantitative questionnaire was used to measure the main research question—that is, to

identify the key elements that increase LDPs’ impact on corporate strategies. The

questionnaires were formatted using Ashridge’s (International University Consortium for

Executive Education, UNICON, 2005) study as a model. A five-point Likert-type scale was

used, and managers who had taken part in the focus group validated the questionnaires for

content, clarity, thematic order, number of questions, and completion time. The survey of

human resources managers included 113 items, of which 56 were five-point Likert questions,

with response categories varying from “strongly disagree” to “strongly agree,” and 57 were

Yes/No questions. A shorter version of the questionnaire—sent to business unit managers—

consisted of 79 questions, 50 of which were five-point Likert scale questions, while 29 were

of the Yes/No type. The long and short versions of the questionnaire had 76 questions in

common.

The questionnaire was divided into five sections: 1) strategic aspects; 2) diagnostic and

design aspects; 3) content aspects; 4) evaluation aspects; and 5) questions covering the

respondent's profile. After the questionnaires were constructed, a website specializing in

Page 24: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

24

online surveys hosted the two documents. A link to the site was sent by e-mail to a database

of contacts, and responses were also gathered online. It is important to mention that given the

lack of information on the training sector (economic data, market segmentation, training

proposals to companies and other strategic, confidential data), the empirical study was based

on business managers’ and human resource managers’ perceptions of training impact.

Sample definition

We were granted access to the corporate database of our business school for the quantitative

study. The database was segmented using the following key words: human resources

managers; training managers; leadership development managers; business area and business

unit managers; and Spanish multinationals in Latin America. The result was a database of

1,071 individuals who were asked to take part in the research. Of these, 107 responded: 61

human resources managers and 46 business unit managers. Eighty-six percent of participants

were from private companies. Although the response rate was only 10%, the respondents

were experts, and the aim of the study was to obtain the maximum number of answers to

meet the various criteria for sample size, which indicated a minimum sample size of 100

(Kline, 1994).

Regarding company size, 33.7% of participants came from companies with fewer than 500

workers; 30.8% were from companies with between 501 and 5,000 workers; and 32.7% were

from corporations with over 5,000 employees. The rest of participants did not indicate the

number of staff. A factor in the subsequent analysis was that the three groups were similar in

size in terms of the number of participants.

FINDINGS, CONCLUSIONS AND FUTURE RESEARCH

Page 25: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

25

The objective of the analysis of the results was to identify the relationship among pre-

program assessments, senior executives' participation in the various LDP stages, and the

LDP's impact at the organizational level. For this purpose, we first analyzed the data by

applying t-tests, Pearson correlation coefficient tests, and standard deviation measures to

estimate the statistical significance of these relationships. Following this first analysis, we

applied regression models and present the analysis results in this section.

First, we found some empirical evidence supporting the first hypothesis, which proposed that

direct involvement of executives in different stages of the LDP is positively related to the

LDPs’ later impact on the company.

Concretely, involvement of top management in the selection of LDP participants showed to

be moderately and significantly correlated, both to the total impact of LDPs (r=0.381,

p<0.001) and to their intrinsic (r=0.299, p=0.002) and extrinsic impact (r=0.295, p=0.002).

Furthermore, committee participation in content also showed positive correlation with

extrinsic impact (r=0.213, p=0.033).

However, this empirical evidence is not as conclusive as one might have expected. For

instance, the expected significant association between the impact of LDPs and top

management involvement in diagnostics and design was not found; nor did we find a

significant association between impact and executives’ involvement in the program

evaluation, for that matter.

Page 26: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

26

We found support for Hypothesis 2. Statistically significant differences in the mean values

were found when applying the t-test to estimate whether or not the use of information on

business strategy in the pre-program increased LDPs’ organizational impact (t(100)=2.34,

p=0.022). A significant correlation was also found between the strategic content of the

program (alignment of the content with the business strategy) and the program’s impact.

In terms of the Hypothesis 2, we found evidence showing that LDP effectiveness is related to

the inclusion of strategic data in the program design. In fact, inclusion of such strategic data

showed a low, but significant correlation with the extrinsic impact of the programs (r=0.198,

p<0.05).

Hypothesis 3 was also supported. A statistically significant correlation was found between the

use of information obtained from training needs assessments during the pre-program and the

LDP's impact on the organization (r=0.213, p=0.033). A variable that is also particularly

relevant to LDP development and success is linking information on business strategy to the

LDP design during the pre-program (the alignment of the program with the business

strategy).

As shown in Table 2, Hypothesis 4 was partially confirmed, as experiential learning methods

(action learning, case studies, workshops, mentoring and development of competencies) were

the most valued methodologies and proved to be statistically significant in predicting LDPs'

impact on the organization.

Contrary to our expectations, narrations—a subtler experiential method—was not rated as

highly as better-known experiential learning methods. Perhaps the novelty of this approach in

Page 27: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

27

the field of LDPs could be the reason for the lower score, although additional data collection

is required to confirm this conjecture.

Table 2

Learning Methodologies. Source: Authors

Valid

answers

Minimum Maximum Average

Standard

deviation

Theory 103 2 5 3.67 .759

Simulators 102 1 5 4.20 .745

Roles 103 2 5 4.19 .768

Self-evaluation 101 1 5 4.20 .762

Case studies 103 2 5 4.38 .628

Development of

competencies

103 2 5 4.25 .637

Action learning 101 3 5 4.57 .517

Mentoring 102 2 5 4.27 .733

Workshops 102 3 5 4.33 .586

Related projects 102 2 5 4.21 .665

Graphics 102 1 5 3.53 .829

Outdoor training 102 1 5 3.58 .814

Managers 102 2 5 4.12 .775

Narrations 102 1 5 3.11 .757

Psychological tests 101 1 5 3.40 .928

Other managers 103 1 5 3.77 1.031

Page 28: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

28

A positive correlation was also found between the impact of the LDPs and the degree to

which multiple aspects were evaluated throughout the LDPs’ value chain (r=0.322, p=0.012).

We found a greater impact when using the competencies evaluation to assess the results of

the program (t(58)=2.02, p=0.047) and when a questionnaire of organizational climate was

used before and after the program (t(58)=2.08, p=.042). Additional information related to the

impact of different kinds of evaluation done throughout the program appears in Table 3.

Table 3

Correlations between different types of evaluations and the impact

generated by the LDPs. Source: Authors.

Impact

Individual sessions Pearson Correlation ,304(*)

Sig. (two-tailed ) ,002

N 102

Self-evaluation Pearson Correlation ,023

Sig. (two-tailed) ,819

N 102

Self follow-up Pearson Correlation ,132

Sig. (two-tailed) ,185

N 102

Directive committee Pearson Correlation ,016

Sig. (two-tailed) ,872

N 100

*Correlation is significant at the 0,01 level (2-tailed)

Concerning Hypothesis 5, there was significant empirical evidence, although of low

magnitude, in favor of a correlation between the intrinsic dimension of LDPs and top

management’s influence on career plans (r=0.227). Moreover, extrinsic and intrinsic

dimensions of LDPs’ impact were significantly correlated with each other (r=0.210),

reinforcing the previous analysis in the theoretical model (See diagram 36, pg. 148).

Page 29: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

29

With regard to Hypothesis 6, we observed evidence of a correlation between personalized

follow-up methodologies and intrinsic impact of LDPs. The correlation between the use of

mentoring and intrinsic impact was shown to be moderate and significant (r=0.291).

In order to further analyze the specific elements that affect the impact of the LDPs, we

applied a general regression model that proved to be significant (F(7,58)=5.25, p<.001). The

program impact was defined as a dependent variable and seven LDP descriptors (design, level

of selecting directors, content richness, methodological diversity, strategic character of the

program, level of evaluation, and program audit) as predictors.

Predictors account for 33.9% of variability. Table 4 presents significance values associated

with each variable, showing that level of selecting directors, content, strategic character of

the program, and level of evaluation are significant predictors of program impact.

Table 4

Value of LDPS descriptors as predictors of program impact. Source: Authors

Model

Non-standardized

coefficients

Standardized

coefficients t Sig.

B

Typical

error Beta B

Typical

error

1 (Constant) .965 .704 1.370 .177

Design -.120 .221 -.076 -.543 .590

Level of selecting

directors .715 .353 .252 2.025 .048

Content richness .313 .128 .315 2.446 .018

Methodological

diversity .086 .182 .062 .472 .639

Strategic character

of the program .261 .111 .353 2.340 .023

Level of

evaluation .487 .213 .278 2.286 .026

Program audit -.388 .311 -.176 -1.248 .218

Page 30: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

30

Figure 3 shows the general prediction model schematically, as follows.

Figure 3. Prediction model for LDP descriptors and program impact

Source: Authors.

In order to ascertain whether core LDP features predict their general impact, we conducted a

multiple regression analysis using the Introducing method, with the seven LDP descriptive

variables as predictors and program impact of LDPs as the criterion. The model proved

significant (F(7,98)=5.4, p<0.001), accounting for 23.9% of the variability of program impact

(corrected R2=0.239).

Table 5 marks predictors that proved significant in boldface. Level of evaluation and the

number of directors involved in the selection were shown to be significant predictors of

program impact, while other variables did not reach significance.

PROGRAM IMPACT

Design Level of selecting directors Content richness Methodological diversity Strategic character of the program Level of evaluation Program audit

0.34

Page 31: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

31

Table 5.

Multiple regression model Source: Authors.

Model

Non-standardized

coefficients

Standardize

d

coefficients

t Sig. B

Typical

error Beta

1 (Constant) -.059 .192 -.306 .760

Diagnostic and

design .007 .066 .011 .103 .918

Content .020 .047 .051 .416 .678

Method .064 .055 .130 1.176 .243

Strategic

character of the

program

-.003 .033 -.009 -.078 .938

Selectors .313 .101 .298 3.089 .003

Action Learning

Projects .001 .039 .003 .034 .973

Level of

evaluation .296 .086 .339 3.464 .001

Note. Dependent variable: program impact

On the other hand, a successive regression model, considering first the intrinsic impact and

then the extrinsic one, was applied to analyze whether the intrinsic impact was a mediator

between the LDP and the extrinsic impact. Once the effect of the intrinsic impact was

discounted, several LDP factors were still significantly related to the extrinsic impact

(F(7,50)=4.15, Change in R2=0.26).

Figure 4 shows a summary of the regression analysis, for both the intrinsic and extrinsic

impact.

Figure 4. Synthesis of the regression analysis. Source: Authors.

INTRINSIC IMPACT

Design Level of Selecting Directors Content Methodology Strategic Plan Evaluation level Auditing

0.21

EXTRINSIC IMPACT

0.35 (0.24)

0.28

Page 32: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

32

From a general perspective, as predicted, many of the factors that make up the LDP system

have shown a link to program impact. In particular, two factors—the number of directors

involved in participant selection and the degree to which different aspects of the program are

evaluated—have shown significant and relevant correlations with impact of the programs,

both intrinsic and extrinsic.

Other factors have shown significant correlation with only a concrete type of impact. For

instance, rich content and diversity of the methodology used in LDPs have shown significant

correlation only with intrinsic impact. Once again, this finding strengthens the assumption of

the theoretical model (Figure 3), in which training has a direct impact on intrinsic variables.

Furthermore, an alignment is observed within the company between intrinsic (knowledge,

attitudes, and behavior) and extrinsic (results, promotion, and retention) variables. If

companies were to use stronger connecting mechanisms between these two types of

variables, the expectation is that impact would be higher.

The factor referred to as “the degree of evaluation of different aspects of LDPs” warrants

special comment because the number of intrinsic aspects evaluated correlates moderately to

highly with the intrinsic impact of the programs, while the number of extrinsic elements

assessed correlates, to the same magnitude, with extrinsic impact.

Empirically, this outcome seems to support the maxim that evaluation is needed for

improvement, so that the aspect evaluated is improved. Moreover, it has been shown that

Page 33: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

33

intrinsic aspects tend to be evaluated more than extrinsic ones, which is consistent with

intrinsic impact being higher than the extrinsic impact generated.

On the other hand, some factors showed significant correlation only with extrinsic impact.

This was the case with the presence of a business plan and of the strategic character of LDPs,

which showed a correlation only with extrinsic impact. Finally, factors having to do with the

diagnosis and design, as well as the importance given to evaluation, have not shown any

significant correlation with impact.

Thus, these results suggest that intrinsic impact and extrinsic impact are related, although

they constitute partially independent LDP success factors. Their correlation has been low to

moderate (r=0.210), with both variables sharing 4.4% variance. Therefore, the theoretical

structure predicting a relation between the two types of impact, shown in Figure 3, is only

partially support.

Intrinsic impact significantly exceeds indicators of extrinsic impact, with the former being a

significant predictor of the latter. However, the intrinsic impact generated can account for

only a small part of the extrinsic impact, underlining other factors that influence only

extrinsic impact. Therefore, these results suggest that, to a considerable extent, both impacts

are independent.

Another fundamental outcome of the present investigation involves the empirical evidence in

support of the ability of different systemic factors studied to predict program impact. The

regression models that we used suggest that 23.4% of impact variance is explained by the

program’s design and diagnostic, development, evaluation, auditing, and strategic character

Page 34: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

34

factors. Significant predictors, regardless of their impact, were found to be the number of

aspects evaluated and the number of top managers selecting participants.

This result supports the concept of the Virtuous Cycle of LDPs, which proposes that the

training program must be based on a systemic approach, with the variables diagnosis, design,

deployment, evaluation, auditing, and strategic character all correlated with one another.

Other results deserve particular mention. First, our data were on the most commonly used

procedures (content, methodology, program format, evaluation method), and second,

correlations were calculated between these procedures and the impact generated by the

programs.

The present study confirms that more-integrative approaches to leadership development

training need to be adopted to address the shortcomings of current executive education

methodologies—in particular, the problems of their relevance and their impact on business

strategies. We propose the concept of LDP's Virtuous Circle to integrate the main steps in

developing leadership and teaching management programs that have impact.

Breaking down the executive education process into its primary value chain phases will help

with the integration and management of the entire LDP—from training needs identification to

program design and evaluation—for the benefit of an organization's goals. As argued here,

the Virtuous Circle model offers an integrative and dynamic process to effectively identify

and manage the critical factors in designing and delivering successful LDPs.

Page 35: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

35

The results of the focus group discussion also support the opinions of theoreticians on the

importance of aligning LDPs with the business. At the same time, they cast light on the poor

existing relationship between companies’ top management and leadership development

policies. Variables with minimal difference between desirability and practicality are

commonly used factors in designing programs: identifying the executive profile, measuring

the programs, and improving internal communication.

Although the members of the focus group stated that they would like to get more information

about business objectives, in the end, they concluded that they were forced to find different

ways to get this information. On the other hand, although they considered the identification

of improvement areas only a minor determinant of program impact, they rated this variable as

easy to achieve and, therefore, ended up using it as one of the program assessment needs

variables.

Finally, the focus group rated commitment of top management as the most desirable

variable—but also the hardest to get—to maximize the impact of LDPs on the company

strategy.

The first part of our research leads to some concerning conclusions, as it shows clearly that

the inputs used to design the LDPs are not the most impactful, but the easiest to find. The

lack of personal involvement of top management, beyond the approval of a budget for LDPs,

affects the programs’ impact significantly. Therefore, the training budget is spent, but with no

clear results and with diminished impact.

Page 36: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

36

The literature indicates that, to ensure that LDPs are aligned with corporate needs, program

designers should involve the companies' senior leaders to get a broad outline of the

companies' strategies and to clarify the nature of the problems and challenges their businesses

are facing. However, the results of our investigation show that HR and program designers do

not have easy access to top management and the necessary strategic information, so they

cannot count on this critical input.

The literature review also highlighted the importance of connecting experience-based

learning methods with the organization's real problems in order to help participants

understand and manage personal and organizational change and to ensure that knowledge and

skills transfer to the workplace. Nevertheless, the result of our investigation indicates that the

LDPs may have direct impact on the promotion, the changing roles or the retention of

participants, without the appropriate measurement of changes in knowledge, behavior and

attitudes. The successive regression model shows that only by attending LDPs can the

participants be included in the pipeline of leadership, whether or not they’ve learned or

changed. This finding raises concerns and is a caution to companies that invest millions of

dollars in LDPs.

Another important outcome of the present research involves the empirical evidence implying

that the different systemic factors considered can predict the impact of the programs—an

aspect that has typically been missing from the research and studies on LDPs due to the

difficulty in isolating the effect of training in organizations. The regression models employed

suggest that 23.4% of LDPs’ impact variability is explained by the following program

factors: diagnostic and design, implementation, evaluation, program audit, and strategic

Page 37: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

37

character of the program. Significant predictors were shown to be the number of aspects

evaluated and the number of directors selecting participants.

Finally, the research results suggest that conducting an auditing process during the different

stages of the programs, instead of doing only the post-program assessment, increases the

programs’ impact on the organization. In summary, treating the evaluation of LDPs as an

ongoing process during all stages of the value chain (diagnosis, design, development, and

implementation) helps maximize the organizational impact by ensuring that the program

stays aligned with the orgnaization’s objectives throughout. While this process is costlier and

requires the assignment of additional resources (people, time, technology), the impact of the

program will increase, and, consequently, the return on investment will presumably be higher.

While the present research yields useful and practical insights and findings, the study is still

exploratory since the problem of impact assessment of executive education programs has not

been clearly defined at the present stage in either the literature or in practice. The present

study explores different relationships already discussed in the literature, but in a new

conceptual framework, and its primary goal is to link the LDPs’ key factors with their

intrinsic impact on participants their and extrinsic impact on organizational indicators.

Therefore, the study design is not without flaws. One of its main limitations is that we

measure managers’ perceptions rather than objective measures.

As we mentioned at the beginning of the paper, one of the main limitations of executive

education training is that it is complicated to isolate its impact from that of other

organizational measures that can affect outcomes. Therefore, future research should consider

the longitudinal nature of leadership development (Day, 2011) and try to further establish the

Page 38: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

38

linkages between LDPs’ factors and their impact on medium- and long-term business results.

Nevertheless, the results of our research can provide significant insight into LDP design,

development and evaluation that can increase their impact, especially in Latin America,

where the human resources and talent development areas are not yet viewed as strategic

partners for companies’ top executives.

Finally, based on the research conducted in this paper, we highlight three main

recommendations for leadership training providers in order to increase the impact of the

programs on organizations: 1) adopt a more integrative, systemic and dynamic model such as

the Virtuous Circle LDPs; 2) define the intrinsic and extrinsic impact indicators during the

design stage; and 3) monitor the process and measure the outcomes, from design to delivery

to evaluation, by auditing the LDPs during each stage. By doing so, both the intrinsic and

extrinsic impacts of LDPs likely will be higher, and participants will be able to contribute in a

more significant way to their jobs and their organizations' results.

Page 39: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

39

REFERENCES

Adler, G., Hooijberg, R., Kemanian, V., Keys, T., Lane, N., & Strebel, P. 2005. 3-

dimensional learning. Mastering Executive Education: How to combine content with

context and emotion – the IMD Guide: 68-83. Pearson Education Limited, Harlow: FT

Press.

Akins, R., Bright B., Brunson T. & Worthamet, W. 2013. Effective Leadership for Sustainable

Development. Journal of Organizational Learning and Leadership, 11(1): 29.

Allio, R. J. 2005. Leadership development: teaching versus learning. Management Decision,

43(7/8): 1071-1077.

Avolio, B. J., Avey, J. B., & Quisenberry, D. (2010). Estimating return on leadership

development investment. The Leadership Quarterly, 21(4), 633–644.

Beechler, S. 2009. Executive Education Trends and Adult Learning Practices. Consulting

report. ESADE Business School.

Bennis, W., G., & O' Toole J. 2005. How business schools lost their way. Harvard Business

Review, 83(5): 96-104, 154.

Blackler, F., & Kennedy, A. 2004. The design and evaluation of a leadership program for

experienced chief executives from the public sector. Management Learning, 35(2): 181-

203.

Boiney, L., & Mallinger, M. 2002. Integrating the Curriculum: Executive Education in the

21st Century. International Business & Economics Research Journal 1(2): 93-99.

Booth, C. 2010. Leadership and management education: An analysis of the executive

education experiences of an Australian group of managers, International Review of

Business Research Papers, 6(6): 36-47.

Page 40: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

40

Brown, G., Ichijo, K., Lehtivaara, P., Kemanian, V., Keys, T., Maznevski, M., Strebel, P.,

Tobias, A., & Walsh, J. 2005. Real World Context. Mastering executive education: How

to combine content with context and emotion: the IMD Guide: 57-67. Pearson

Education Limited, Harlow: FT Press.

Buchel, B., & Antunes, D. 2007. Reflections on Executive Education: The User and

Provider’s Perspectives. Academy of Management Learning & Education, 6(3): 401-

411.

Cacioppe, R. 1998. An integrated model and approach for the design of effective leadership

development programs. Leadership & Organization Development Journal, 19(1): 44-53

Cardoza, G. 2001. Higher Education and Research and Development (R&D) in East Asia and

Latin America: Different Perspectives? Journal of Institutional Research, 10(2).

Charlton K and C Osterweil. 2005. Measuring Return on Investment in executive education:

a quest to meet client needs or pursuit of the Holy Grail? 360o The Ashridge Journal,

Autumn 2005, Ashridge Business School UK.

Chen, T., Chang, P., & Yeh, C. 2004. Research note: A study of career needs, career

development programs, job satisfaction and the turnover intentions of R&D personnel.

Career Development International, 9(4/5): 424-37.

Clarke, N. 2012. Evaluating Leadership Training and Development: A Levels-of-Analysis

Perspective. Human Resource Development Quarterly, 23(4): 441-460.

Cohn, J., Khurana R., & Reeves, L. 2007. El desarrollo del talento en la cultura de la

empresa. Harvard Deutsche Business Review, 140: 6-17.

Conger, J. 2013, Mind the gaps: what limits the impact of leadership education. Journal of

Leadership Studies, 6(4): 77-83.

Conger, J., & Xin, K. 2000. Executive education in the 21st century. Journal of Management

Education, 24: 73-101.

Page 41: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

41

Cordero, C., Haour, G., Kahwayjy, J.L., Kemanian, V., Keys, T., Meehan, S., Robertson, D.,

Sjöblom, L., Strebel, & P., Vollmann, Th. 2005. Program Scripting. Mastering Executive

Education: How to combine content with context and emotion – the IMD Guide: 85-

102. Pearson Education Limited, Harlow: FT Press.

Corporate Learning Factbook. 2014. The Corporate Learning Factbook 2014: Benchmarks,

Trends, and Analysis of the U.S. Training Market. Available at

http://marketing.bersin.com/corporate-learning-factbook-2014.html

Corporate University Xchange. 2007. Leadership 2012: Research Report.

http://www.corpu.com/leadership/leadership2012/

Crossan, M., Mazutis, D., Seijts, G., & Gandz, J. 2013. Developing leadership character in

business programs. Academy of Management Learning & Education, 12: 285–305.

Cranfield ESADE Report. 2008. Gestión Estratégica de Recursos Humanos. Working paper.

Barcelona: Instituto de Estudios Laborales de ESADE.

Culbertson, S., & Owen, K. 2012. Demonstrating the Value of Executive Education. People

& Strategy, 35(3): 44-51.

Cullen, J., & Turnbull, S. 2005. A meta-review of the management development

literature. Human Resource Development Review, 4(3): 335-355.

Dawes, J. 2008. Do data characteristics change according to the number of scale points used?

International Journal of Market Research, 50(1): 2-10.

Day, D. V. 2000. Leadership development: A review in context. The Leadership Quarterly,

11(4): 581-613.

Day, D. 2011. Integrative perspectives on longitudinal investigations of leader development:

From childhood through adulthood. The Leadership Quarterly, 22(3), 561–571.

Day, D. et al. 2014. Advances in leader and leadership development: A review of 25 years of

research and theory, The Leadership Quarterly 25 (2014) 63–82.

Page 42: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

42

Deloitte. 2016. Global HumanCapital Trends report. 2016. The new organization: Different

by design, Deloitte University Press. Available at:

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCapital/gx-

dup-global-human-capital-trends-2016.pdf

De Déa Roglio, K. & Light, G. 2009. Executive MBA programs: The development of the

reflective executive. Academy of Management Learning & Education, 8(2): 156-173.

De Meyer, A. 2012. Environmental influences. Reflections on the globalization of

management education. Journal of Management Development, 31(4): 336-345.

De Vries, K. M. & Korotov, K. 2007. Creating transformational Executive Education

programs. Academy of Management Learning & Education, 6(3): 375-387.

Dalakoura, A. 2010. Differentiating leader and leadership development. A collective

framework for leadership development. Journal of Management Development, 29(5):

432-441.

DiStefano, J., Kemanian, V., Keys, T., & Strebel, P. 2005. Mastering Executive Education:

How to combine content with context and emotion – the IMD Guide: 42-54. Session

scripting. Pearson Education Limited, Harlow: FT Press.

Doh, J.P. 2003. ¿Can leadership be taught? Perspectives from management educators.

Academy of Management Learning and Education, 2(1): 54-67.

Doh, J.P., & Stumpf, S.A. 2007. Executive Education: A View from the Top. Academy of

Management Learning & Education, 6(3): 388-400.

Dolliver, S. 1994. The missing link: Evaluating training programs. Supervision, 55:11.

Dover, P., Perkins, S., & Wylie, D. 2009. The role of custom case materials in action-based

executive education programs. Journal of Management Development, 28(4): 285-300.

Dragoni, L., Tesluk, P. E., Russell J. E. A., & Oh, I. S. 2009. Understanding managerial

development: Integrating developmental assignments, learning orientation, and access to

Page 43: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

43

developmental opportunities in predicting managerial competencies. Academy of

Management Journal, 52(4): 731-743.

Duke CE´s Client Study. 2009. Learning and Development in 2011: A Focus on the future.

Duke Corporate Education. http://www.dukece.com/papers-

reports/documents/FocusFuture.pdf

Eguiguren, M. 2000. Aspectos económicos de la formación en la empresa: una metodología

para el control de gestión de la función de formación en la empresa en Cataluña.

Doctoral thesis. Departamento de Organización de Empresas. Universitat Politècnica de

Catalunya. http://www.tesisenred.net/TDX-1010101-082513

Eiter, M. 2009. Investigating Our Custom Clients’ Evolving Needs. A UNICON Research

Study. www.uniconexed.org

Eiter, M., & Halperin, R. 2010. Investigating Emerging Practices in Executive Program

Evaluation. A UNICON Research Study. September. www.uniconexed.org

ESADE. 2008, 2009, 2010. Corporate University Forum conclusions. Working document.

ESADE Business School.

ESADE. 2010. Custom Programs data base. Working document. ESADE Business School.

Madrid: Executive Education.

Fulford, MD. 2013. Practice What You Preach: Using an Experiential Learning Approach to

Teach Leadership. Journal of Leadership, Accountability and Ethics, 10(2): 81-86.

Garratt, B. & Pedler, M. (Ed.). 2012. The Power of Action Learning in Action Learning in

Practice. Henley Business School, UK.

Goleman, D., Boyatzis, R., & McKee, A. 2001. Primal leadership: the hidden driver of great

performance. Harvard Business Review: 43-51.

Goleman, D., Boyatzis, R., & Mckee, A. 2002. Primal Leadership. Boston: Harvard

Business School Publishing.

Page 44: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

44

Greenwood, D., & Levin, M. 2001. Pragmatic action research and the struggle to transform

universities into learning communities, in Reason, P. Bradbury, H. (Eds.), Handbook of

Action Research: 103-113. London. Sage Publications.

Grossman R., Salas, E., Pavlas, D., & Rosen, M.A. 2013. Using Instructional Features to

Enhance Demonstration-Based Training in Management Education. Academy of

Management Learning & Education, 12(2): 219-243.

Gurdjian, P., Halbeisen, T., & Lane, K. 2014. Why leadership-development programs fail.

McKinsey Quarterly, 1: 121-126.

Hannum, K. M., & Craig, S. B. (2010). Introduction to special issue on leadership

development evaluation. The Leadership Quarterly, 21(4), 581–582.

Hartman, J. 2004. Using focus groups to conduct business communication research. Journal

of Business Communication, 41(4): 402-410.

Heifetz, R. 1994. Leadership without easy answers. Cambridge, MA: Harvard University

Press.

Herndon, S. L. 2001. Using focus group interviews for preliminary investigation.

Qualitative research: Applications in organizational life. Cresskill, NJ: Hampton Press.

Holton III, E. F. 1996. The flawed 4-level evaluation model. Human Resource Development

Quarterly, 7: 5-21.

Hugas, J. 2007. Executive Education: LDP leadership development program. Diploma de

Estudios Avanzados. Programa de Doctorado en Innovation Management, R&D and

Technology Evaluation. Departamento de Organización, Gestión Empresarial y Diseño de

Productos. Universidad de Girona.

Hugas, J. 2007. Liderazgo: “del arte a la ciencia”, Diploma de Estudios Avanzados.

Programa de Doctorado en Innovation Management, R&D and Technology Evaluation.

Page 45: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

45

Departamento de Organización, Gestión Empresarial y Diseño de Productos. Universidad

de Girona.

Hughes, G. D. 2006. How business education must change. MIT Sloan Management

Review, 47(3): 88.

Ilie, C. 2009. El impacto de los programas de desarrollo directivo en la estrategia

empresarial. Doctoral thesis. Universidad Comillas—ICADE. Madrid.

https://www.educacion.es/teseo/mostrarSeleccion.do

International University Consortium for Executive Education, UNICON. 2005. Executive

Education: Evaluating the return on investment. Bringing the client voice into the debate.

Study by Ashridge for Unicon. www.uniconexed.org

Jenkins, DM. 2013. Exploring instructional strategies in student leadership development

programming. Journal of Leadership Studies, 6(4): 48-62.

Kahwajy, J., Kemanian, V., Keys, & T., Strebel, P. 2005. Emotional Highs. Mastering

Executive Education: How to combine content with context and emotion – the IMD

Guide: 13-20. Pearson Education Limited, Harlow: FT Press.

Kirkpatrick, D. L. 1979. Techniques for evaluating training programs. Training and

Development Journal, 33(6): 78-92.

Kirkpatrick, D. 1994. Evaluating training programs. San Francisco, CA: Berrett-Koehler

Publishers.

Kirkpatrick, D. 2006. Training and performance appraisal - are they related? T+D: 44-45.

Kirkpatrick, D. L., & Kirkpatrick J. D. 2009. Evaluating Training Programs. Berrett-

Koehler Publishers.

Kirkpatrick, S. & Locke, E. A. 1991. Leadership, do traits matter? Academy of Managerial

Executive, 5(2): 48-60.

Kline, P. 1994. An easy guide to factor analysis. Newbury Park: Sage.

Page 46: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

46

Knowles, M. 1978. The Adult Learner: A neglected species. Houston: Golf Publishing.

Knowles, M., & Malcom, S. 1989. Learning to be authentic. Training & Development

Journal, 43(10): 42.

Kolb, D. A. 1984. Experiential learning: Experience as a source of learning and

development. Englewood Cliffs NJ: Prentice-Hall Inc.

Kolb, A. & Kolb, D. A. 2005. The Kolb Learning Style Inventory —Version 3.1 2005

Technical Specifications. HayGroup Experience Based Learning Systems, Inc.

Kraiger, K., McLinden, D., & Casper, W. 2004. Collaborative planning for training impact.

Human Resource Management, 43(4): 337-351.

Krueger, R. 1994. Focus groups: A practical guide for applied research. Second Edition.

Newbury Park, CA: Sage.

Linder, J., & Smith, H. 1992. The complex case of management education. Harvard

Business Review, 70(5): 16-17.

Lloyd, F. & Newkirk, D. 2011. University-based executive education markets and trends.

Research paper. http://uniconexed.org/2011/research/UNICON-whitepaper-markets-

trends-Lloyd-Newkirk-08-2011.pdf

Lombardo, M., & Eichinger, R. 2010. Eighty-Eight Assignments for Development in Place

(French Canadian). CCL Press.

Magni, M. et al. 2013. Diving Too Deep: How Cognitive Absorption and Group Learning

Behavior Affect Individual Learning Academy of Management Learning & Education,

12(1): 51-69.

Mazza, C. 2004. Rethinking management education for the 21st century. Management

Learning, 35(3): 349-352.

Mattioli, D. 2009. Despite Cutbacks, Firms Invest in Developing Leaders, The Wall Street

Journal. http://online.wsj.com/news/articles/SB123395874246058397

Page 47: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

47

McClelland, S. B. 1993. Training Needs Assessment: An Open-systems Application. Journal

of European Industrial Training, 17(1): 1993.

McClelland, S. 1994. A model for designing objective-oriented training evaluations.

Industrial and Commercial Training, 26(1): 3-9.

McEnrue, M.P., Groves, K. S., & Shen, W. 2007. Emotional intelligence development:

Leveraging individual characteristics. Journal of Management Development, 28(2): 150-

174.

Miller, D., & Desmarais, S. 2007. Developing your talent to the next level: Five best

practices for leadership development. Organization Development Journal, 25(3): 37-43.

Mintzberg, H. 2005. Managers Not MBAs: A Hard Look at the Soft Practice of Managing

and Management Development. Berrett-Koehler Publishers.

Mirvis, P. 2008. Executive Development through Consciousness-Raising Experiences.

Academy of Management Learning & Education, 7(2):173-188.

Molenda, M. 2003. In Search of the Elusive ADDIE Model. Performance Improvement,

42(5).

Morgan, D. L. 1988. Focus groups as qualitative research. Qualitative Research Methods

Series: 16. Newbury Park: Sage.

Mumford, A. 1995. Effective Learning. Institute of Personnel and Development. London:

CIPD Publishing.

Nevins, M. D., & Stumpf, S. A. 1999. 21st-Century Leadership: Redefining Management

Education. Strategy+Business (3rd Quarter): 1-11.

Patton, M. Q. 1987. How to Use Qualitative Methods in Evaluation. Newbury Park: Sage.

Perez, S. 2014. The ROI of Talent Development. UNC Kenan-Flagler Business School, UNC

Executive Development 2014. Available at: http://www.kenan-

Page 48: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

48

flagler.unc.edu/~/media/Files/documents/executive-development/unc-white-paper-the-

ROI-of-talent-development.pdf

Pettigrew, Andrew, and Ken Starkey. "From the Guest Editors: The Legitimacy and Impact of

Business Schools—Key Issues and a Research Agenda." Academy of Management

Learning & Education 15.4 (2016): 649-664.

Pfeffer J. & Fong C. 2002. The End of Business Schools? Less success than meets the eye.

Academy of Management Learning and Education. 1(1): 78-95.

Pfeffer, J. 2009. Leadership development in business schools: An agenda for change.

Research Paper No. 2016. Graduate School of Business, Stanford University.

Phillips, J. 1996. ROI: The search for best practices. Training & Development, 50(2): 42.

Pledger, C. 2007. Building manager effectiveness by combining leadership training and

organization development. Organization Development Journal, 25(2): 71-76.

Quigley, N. 2013. A Longitudinal, Multilevel Study of Leadership Efficacy Development in

MBA Teams Villanova University. Academy of Management Learning & Education,

12(4): 579-602.

1. Quinn Patton, M. (1987). How to use qualitative methods in evaluation. Newbury Park:

Sage.

Raelin, J. A. 2007. Toward an Epistemology of Practice. Academy of Management Learning

& Education, 6(4): 495-519.

Rowden, W. R. 2005. Exploring methods to evaluate the return-on-investment from training.

Business Forum, 27(1): 31-36.

Sandoval, C. 1996. Métodos de investigación cualitativa. Bogotá: ICFES.

Page 49: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

49

Sauquet, A., & Bonet, E. 2003. Implications of national cultural impacts for conflict

resolution and team learning in Spain: Observations from a comparative case study.

Advances in Developing Human Resources, 5(1): 41-63.

Schneider, S. C., Zollo, M., & Manocha, R. 2010. Developing Socially Responsible

Behaviour in Managers: Experimental evidence of the effectiveness of different

approaches to management education. Journal of Corporate Citizenship, 39: 21-40.

Schön, D. A. 1983. The reflective practitioner. How professionals think in action. Basic

Books.

Scott, S. & Webber, C. F. 2008. Evidence-based leadership development: the 4L framework.

Journal of Educational Administration, 46(6): 762-776.

Siegling, A. B., Nielsen, C., & Petrides, K. V. (2014). Trait emotional intelligence and

leadership in a European multinational company. Personality and Individual

Differences, 65, 65-68.

Smith A. 2013. Responsible leadership development through management education: A

business ethics perspective. Afr J Bus Ethics, 7: 3-9.

Snook, S., Nohria, N., & Khurana, R. N. (Eds.). 2013. The handbook of teaching leadership:

Knowing, doing and being. Thousand Oaks, CA: Sage.

Solé Parrellada, F., Eguiguren, M., Llínás, X., & Pons, O. 2006. Los aspectos económicos—

organizativos de la formación: una aproximación al caso de Cataluña. Universia Business

Review-Actualidad económica, 9: 28-41.

Strebel, P. & Keys, T. 2005. High-impact learning. Mastering Executive Education: How to

combine content with context and emotion – the IMD Guide: 1-8. Pearson Education

Limited, Harlow: FT Press.

Page 50: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

50

Tejada Ferández, J., & Ferrández Lafuente, E. 2007. La evaluación del impacto de la

formación como estrategia de mejora de las organizaciones. Revista Electrónica de

Investigación Educativa, 9(2). http://redie.uabc.mx/vol9no2/contenido-tejada2.pdf

Thomas J.R. 2013. Developing Tomorrow’s Global Leaders. MIT Sloan Management

Review, 55(1): 12-13.

Thomas, H., & Wilson, A. 2009. An analysis of the environment and competitive dynamics of

management research. Journal of Management Development, 28(8): 668-684.

Thorsell, J., Bridge, J., & Gardner, F. 2012. Executive development: Evolutionary revolution.

Global Focus: The EFMD Business Magazine, 6(3): 34.

Tompson, H.B. & Tompson, G. 2013.The Focus of Leadership Development in MNCs.

International Journal of Leadership Studies, 8(1): 67-75.

Tushman, M. I., O'Reilly, C. A., Fenollosa, A., Kleinbaum, A. M., & McGrath, D. 2007.

Relevance and Rigor: Executive Education as a Lever in Shaping Practice and Research.

Academy of Management Learning & Education, 6(3): 345-362.

Weldon, E. 2012. Developing successful executive education faculty: a review of the

literature from 2001-2011. A UNICON Research Report.

Werner, J. M., O Leary-Kelly, A. M., Baldwin, T.T., & Wexley, K. N. 1994. Augmenting

behaviour-modelling training: Testing the effects of pre- and post-training

interventions. Human Resource Development Quarterly, 5(2): 169.

Winfrey, E.C. 1999. Kirkpatrick's Four Levels of Evaluation. In B. Hoffman (Ed.),

Encyclopedia of Educational Technology. www.coe.sdsu.edu/EET.

Yorks, L, Beechler, S. and Ciporen, R. 2007. Enhancing the Impact of an Open Enrollment

Executive Program Through Assessment. Academy of Management Learning &

Education, 6(3): 310-320.

Page 51: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

51

Yulmartin, E. B. H. & Riyanto A. 2013. Improving Leadership Training Effectiveness

through Action Learning Program. Proceedings of the European Conference on

Management, Leadership & Governance: 498.

FIGURE LEGENDS

Figure 1. Virtuous Circle of LDPs. Source: Authors.

Figure 2. Relation between LDPs and Program Impact. Source: Authors.

Figure 3. Prediction model for LDP descriptors and program impact. Source: Authors.

Figure 4. Synthesis of the regression analysis. Source: Authors.

TABLE LEGENDS

Table 1. Critical variables for impact of LDPs on company strategy. Source: Authors

Table 2. Learning Methodologies. Source: Authors

Table 3. Correlations between different types of evaluations and the impact generated

by the LDPs. Source: Authors

Table 4. Value of LDPS descriptors as predictors of program impact. Source: Authors

Table 5. Multiple regression model. Source: Authors

Page 52: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

52

APPENDIX 1

Focus group definition and organization

After group member introductions, the purpose of the meeting was explained, and the debate

was opened, engaging them in conversation about the following issues:

- How their training plans and LDPs are designed.

- Which executive level is involved in the design of the LDPs.

- How LDPs are evaluated and their impact on the company.

- Whether there is any relation among professional career development, succession

plans, and LDPs.

- How the potential leaders are identified.

During this first stage, some common aspects were observed during the discussion:

- Most participants believed that top executives did not clearly share the company

strategy with them, and, thus, they felt weak when designing leadership development

policies for senior managers.

- Another issue highlighted by the group was the uncertainty about their environment

due to a wave of mergers and acquisitions that created constant changes in leadership

development priorities within the company.

- However, in the Human Resources department, most of the participants believed that

processes to identify the leadership pipeline, the competency models, and leadership

development needs were well defined and had been implemented correctly.

After the first stage of general reflection, the two moderators introduced the topic, explaining

the goals of the research and stating concrete objectives. Then, they asked the research

question: “What aspects can increase the impact of LDPs on the participants and the

organization?”

Next, each group member was asked to choose three variables that could increase or weaken

the impact and to write them on a piece of paper. Then, the two moderators selected similar

variables, by choosing papers with similar concepts, and created a reduced number of groups

with the same issues, which they placed in the same area of the work panel.

Once the variables were grouped, each participant voted on them again, rating them from 1

(least important) to 3 (most important). The selected variables that can increase or weaken the

impact, in order of importance, were:

- Link between the program and the business strategy (15)

- Commitment from top management (9)

- Customization of the program (6)

- Participant selection (5)

- Link between the program and human resources policies (4)

- Commitment of top management with the programs (4) [How is this different from

“Commitment from top management”?]

- Impact evaluation (3)

- Alignment and planning of the programs with the executives’ and top management’s

Page 53: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

53

agenda (2)

Thus, during the first stage of the focus group, the two variables with the most votes (which

were also highlighted by the theoretical review) were: alignment of LDPs with the company

strategy and commitment of top management.

In the second stage of the focus group, the top-voted variable was selected. The moderators

asked the group to discuss the following question: "How should the LDPs be linked to the

company business strategy?”

As in the first stage, each participant chose three variables that they considered critical to

connecting LDPs with the business strategy.

Afterwards, variables were grouped again, and participants voted on those that, from an ideal

(desirable) viewpoint, were most important to achieve a link between the program and the

business strategy. One point was given to the least significant variable and three points to the

most important.

Finally, another voting round was conducted, this time from a pragmatic viewpoint (easiest to

achieve). As in the first stage, each participant picked the three most important variables to

link programs and business strategy. Variables and scores are shown in Table 1.

Page 54: Designing Leadership Development Programs for High Impact ......3 Designing Leadership Development Programs for High Impact in Emerging Economies: The case of Spanish Multinationals

54

Table 1

Critical variables for impact of LDPs on company strategy

Source: Authors

Variables Total Desirable Real

(Practical)

Difference

Having a clear executive profile 29 15 14 -1

Training measurement 3 2 1 -1

Having information on business

objectives

23 13 10 -3

Getting commitment from top

management

19 16 3 -13

Identifying improvement areas 10 0 10 +10

Proposing integrated leadership

development actions

9 2 7 +5

Improving communication 3 0 3 +3