Managing Change

WHEN FORMER COMPTROLLER AND auditor general (CAG) Vinod Rai pushed the CAG to change its auditing methodology from proprietary-based to performance-oriented, it called for a training of their executives. They did have a pool of auditors to train the executives, but they faced the challenge of having to conduct performance rather than proprietary audits in a new environment. They contacted leading business school IIM Ahmedabad (IIM-A) to customise a management development programme (MDP) to help them. "On the basis of their needs, we weaved in training as an integral part to help the organisation make the transition smoothly," says Prof. Sebastian Morris, Chairperson of the executive education programmes at IIM-A. The institute then prepared a customised two-week programme for the CAG.

Companies have understood the need for investing in people and the importance of formal training. They no longer see training as an expense but as an investment to keep people engaged and reduce attrition. Several studies worldwide prove that companies that don't invest in people don't do well in the long term. As M.G. Jomon, Associate Dean of Corporate Programmes at XLRI, Jamshedpur puts it, "Organisation is people, the rest can be bought and sold." He adds: "It is a fantastic idea to invest in internal workforce for a proper succession planning of the business than hiring from outside as it builds a performance-driven culture."

This becomes significant in today's fast-paced, dynamic business environment. Since management is more applied science than theory, what is relevant today might be outdated tomorrow, says Prof. Arun K. Rath, Dean of executive education at International Management Institute (IMI), Delhi. This reemphasises the need for companies to upskill and reskill employees to plan for the future. It is here that MDPs play a significant role as they are application-based and cater to the needs of businesses at that time.

MDPs are essentially certificate programmes for working executives that companies sponsor to bring in new skills, experience and global best practices quickly into the organisation. They usually range from two days to even six months or more. Mostly, institutes offer open MDPs that are pre-determined courses, and also customised ones that vary greatly according to the needs of an organisation. They can be right from entry level to Board level, and are often a combination of classroom teaching and online learning.

When a company invests in MDPs, it wants to see its impact in terms of business objectives. Siddharth Deshmukh, Associate Dean - Industry & Alumni Partnerships at Ahmedabad-based MICA, says some companies were not satisfied with open MDPs and felt short-changed. Instead, they wanted courses that would solve their specific problems. Each organisation, even from the same sector, has very unique needs. And so their training requirements would also differ. Due to this demand for specific learning outcomes, institutes upped their ante and started offering more of customised MDPs. At MICA, around 70 per cent of MDP courses today are customised, says Deshmukh.

SIMILARLY, IIM-A does over 150 customised MDPs, the most in the country, says Prof. Morris, adding that customised programmes call for a lot more engagement with the organisation. Often, faculty members visit companies' premises and spend a day or two there. Understanding the requirements properly is most important so that company executives get full value from the course, says Prof. Morris. It doesn't end there, either. For Deshmukh of MICA, even after the MDP is done, there has to be constant engagement with companies so that the results of the learnings can be evaluated or alternative solutions provided. Then, WeSchool provides impact assessments of MDPs. "We show the organisation what has been the cost saving, work hours saved and how it has improved productivity," says Kulkarni, adding that the institute started this practice four years ago, and it has led to repeat clients doubling. WeSchool does four-five open programmes a year; the rest are customised.

This sort of pre-engagement and post programme feedback and refreshers are new to the MDP game. Motilal Oswal Financial Services, for instance, works with faculty members to develop refresher courses for re-training executives. "Refresher courses are important, otherwise people forget what they have learnt," says Sudhir Dhar, Group Head HR. "After every MDP, we develop four to six interventions for the participants, which are spread over the next few months." On average, he says, 40-50 company executives attend MDPs each year.

MDPs are not only helpful for companies; B-schools are also excited about them. Such programmes increase the industry connect and network of the academic institutions, and also increase their visibility. It helps faculty get consulting assignments and students, internships and better placements, says Chatterjee of MDI.

However, Morris of IIM-A points out that the value of these programmes can be greatly enhanced if the companies also share their complete stories with B-schools. "Often, companies share the success story but hold back on the part that will not put them in great light. Companies have to move in the direction of not being cagey for real learning to happen and to get better future managers," he says.