EFMD Excellence in Practice 2013 by EFMD Global

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Volume 07 | Issue 03 | 2013 EFMD Global Focus: Volume 07 Issue 03 | 2013

The EFMD Business Magazine

A GLOBAL FOCUS SPECIAL SUPPLEMENT

Recognising outstanding Learning and Development partnerships

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

EFMD Excellence in Practice Awards Impactful Partnerships in Learning & Development

Contents 3 Danone Leading Edge Programme: A Leadership Odyssey

7 Developing Atos Future Leaders: GOLD, a tailor-made curriculum

11 Pathway to Premium: Creating Investment Advisors at Danske Bank

15 Corporate Turnaround: Focusing, Aligning and Building for Success

19 Management & Development of New Products Programme: Training for Change in the Automotive Sector

23 Excellence in Practice: Highly commended entries

or over five years now companies have been facing a difficult economic climate. It is an environment that increases the risk of focusing on reactive rather than proactive measures, thus limiting the options to rather drastic and short-term interventions. It also means the steady development of organisational capabilities and culture become a luxury in the minds of executive fire-fighters trying to save what is possible in what seems an irreversible decline.

In these critical circumstances support functions in general, and HR development more specifically, are frequently subject to scrutiny and efficiency targets. Their role in analysing and framing issues proactively becomes secondary to supporting existing services and processes with reduced resources. Intriguingly, all the cases – not just the winners – in the Excellence in Practice Awards competition are going against the tide and focusing on effectiveness and impact in their development projects. And all were successful in bringing an investment focus to learning and development. The cases also provide interesting reading with respect to the creativity and elasticity of the partners in coping with the pressures and challenges mentioned above. New formats of risk sharing, mutualising the commitment and inventive partnership constructions have been presented to the competition jury, which more than ever congratulates all contestants on their professionalism, persistence and ingenuity. As always, we hope the featured cases in this Global Focus supplement will inspire further debate and action. We will take them to this year’s Executive Development Conference in Stockholm and use them in our exploration of the evolving eco-system of learning and development. We hope to meet you there, or read your case in the 2014 competition. Enjoy the reading!

EFMD Global Focus: Volume 07 Issue 03 | 2013

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Intriguingly, all the cases – not just the winners – in the Excellence in Practice Awards competition are going against the tide and focusing on effectiveness and impact in their development projects

Groupe Danone & London Business School Danone Leading Edge Programme: A Leadership Odyssey Category: Talent Development

Atos & HEC Paris Developing Atos Future Leaders: GOLD, a Tailormade Curriculum Category: Professional Development

Danske Bank Sweden & Stockholm School of Economics IFL Executive Education Pathway to Premium: Creating Investment Advisors at Danske Bank Category: Organisational Development

EDF & Toulouse School of Economics Corporate Turnaround: Focusing, Aligning and Building for Success Category: Special – Network Partnership

Galician Automotive Cluster (CEAGA) & CEAGA’s Corporate University Management & Development of New Products Programme: Training for Change in the Automotive Sector

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Danone Leading Edge Programme: A Leadership Odyssey

ncertainty may have become a common aspect of business life, particularly in recent years, but can such disruption transform the modern corporate culture of targets, measures and key performance indicators (KPI)? Franck Riboud, CEO of Danone thinks that it can. He proposes that Danone can only compete with big name competitors such as Nestlé, Unilever and CocaCola by ‘thinking outside the box’, and thus leveraging the ‘benefit of doubt’.

Identifying the problem Ten years ago Danone’s executive board, Comex, identified a lack of personal development as a major problem among senior managers in the firm. To address this problem, Mr Riboud recognised the need for a radical leadership development programme which would shake executives’ core beliefs thereby facilitating the development of altered personal constructs and more authentic relationships with other team members. Sceptical that traditional management paradigms offer much value, Mr Riboud envisaged a development programme that would inspire bravery, experimentation and autonomy. In other words, Mr Riboud wanted nothing less than an altered consciousness experience for Danone managers. Selecting a business school partner Danone offered a competitive tender to six business schools identified as having the capacity and imagination to develop a programme that would encourage managers to become inventive rule-breakers with the ability to shed traditional management conventions. The winning bid was presented by London Business School (LBS) who offered the ‘edgy’ concept of discovery learning as both the philosophy and teaching and learning methodology for their proposed programme.

EFMD Global Focus: Volume 07 Issue 03 | 2013

Discovery learning and creative encounters Discovery learning, usually credited to 20th century educationalist Jerome Bruner, is a constructivist learning methodology which shares many of its principles with other student-centred learning systems such as problem based learning (PBL) and enquiry based learning (EBL). It is based on the premise that adults learn best what they discover for themselves. To facilitate this voyage of self discovery participants are exposed to experiences that are surprising or challenging and work together in groups to conduct experiments and share insights and reflections from the learning experiences. The element of surprise or confusion is very important as Mr Riboud recognised the necessity of creating a sense of disorientation as a catalyst to deep learning and altered consciousness.

174 To date, nine programmes have been delivered with 174 executives participating in the training...

100 ...over 100 creative encounters have occurred and more than 30 group experiments have been conducted...

PHOTO COURTESY: DANONE ©

...and 64 executives have been promoted following completion of the LE programme

The programme that LBS co-developed with Danone is called ‘Leading Edge’ or LE. This innovative course provides participants with opportunities for creative encounters designed to disrupt established ways of thinking. The ultimate goal is to provide new insights that can be translated into radical approaches to developing creative business solutions. These experiential learning opportunities will differ according to the geographical location of the students but have included working with a neonatal unit in South Africa improving the health of vulnerable infants through ‘Kangaroo care’ (where premature infants are nursed by maintaining constant skin to skin contact with their mothers rather than being placed in incubators), studying the ‘just-in-time’ supply and demand chain of Amsterdam’s cannabis coffee houses, working with prisoners at a high security prison in Boston, engaging with teachers and students at a school for autistic children in London, or exploring the way a traditional jeweler conducts trade in an Istanbul souk. Other methods of instruction include role-play, guided reflection and small group coaching.

To facilitate this voyage of self discovery participants are exposed to experiences that are surprising or challenging and work together in groups to conduct experiments and share insights and reflections from the learning experiences

LE Curriculum The Leading Edge curriculum starts with a precourse reading and preparation period followed by brief but intense learning and teaching modules of 4-5 days interspersed initially with a 4-6 month period of self-directed group experimentation and then a longer, 6-8 month application period when the second taught module has been completed. This latter block of time encompasses personal development reviews, group reflections and implementation of new ideas arising from the experimental activities carried out by the group during the previous inter-module period. To date, nine programmes have been delivered with 174 executives participating in the training. Over 100 creative encounters have occurred and more than 30 group experiments have been conducted. 64 executives have been promoted following completion of the LE programme, while Danone’s executive board, Comex, have been so impressed with the programme that they have contracted their own bespoke Leading Edge course.

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Danone Leading Edge Programme: A Leadership Odyssey

Prestigious recognition Recently Danone and LBS have received global recognition for the excellence of the LE programme, winning first place in the European Foundation for Management Development’s (EFMD) Excellence in Practice Award. This was awarded in recognition of the LE programme’s innovation and creativity in leadership development. The importance of culture Although Danone executives freely admit that the firm has become more innovative during the ten years that the LE programme has been running, the initial push for change had to resonate with Danone’s values. Without an existing culture prizing experimentation and a diversity of ideas, this initiative would never have been introduced or proved so sustainable. In fact this is why Mr Riboud wanted to move away from identifying rigid outcomes for the programme; instead he invested in the belief that if the conditions were right, positive outcomes would follow. These can be intellectual, emotional, psychological or relational. Similarly, there is an acknowledgement that not all participants will gain the same insights and skills as others on the programme. Instead, each individual develops personal goals, potentially emerging as a more effective and daring executive. Mr Riboud attributes his own LE participation as the inspiration for Danone’s ‘Dream Project’ that aims to provide access to healthy food for the greatest number of people possible.

Although Danone executives freely admit that the firm has become more innovative during the ten years that the LE programme has been running, the initial push for change had to resonate with Danone’s values To achieve a programme that was congruent with the Danone culture, it was imperative that the academics responsible for the LE curriculum shared in this free-thinking culture and creative philosophy. Jules Goddard, the academic director and Julie Brennan, the programme director are just such individuals able to translate a concept into a viable training course that provides participants with the ‘wow’ factor. In fact, together with the team that includes Thierry Bonetto, Danone’s Director of Learning and Development, Pascal Desbourdes, Vice President for Executive Development at Danone and Linda Irwin, Client Director at LBS, the administration and delivery of the programme has remained in the same capable hands throughout the ten years of the programme. Participant evaluations Graduates of the LE programme have had overwhelmingly positive things to say about it, with 93% agreeing that participation had caused significant self-reflection. 100% said they had made changes in leadership style as a direct result of the LE training. 100% of participants also noted that they increased their effectiveness at work following completion of the programme and 89% felt that it enhanced their career prospects.

EFMD Global Focus: Volume 07 Issue 03 | 2013

Qualitative feedback indicated increased bonding among participants, feelings of being inspired and energised, the identification of surprising role models and a sense that interprofessional collaboration was becoming more fully implemented in the interface between the different divisions at Danone. However, one participant did admit to the initial feeling of wondering ‘what the heck’ he and other participants were doing. In other words, he felt totally confused. Later, understanding developed and with it the admission of having had a ‘humbling’ experience causing profound changes to the way he thought and worked.

93% Graduates of the LE programme have had overwhelmingly positive things to say about it, with 93% agreeing that participation had caused significant self-reflection

89% Participants also noted that they increased their effectiveness at work following completion of the programme and 89% felt that it enhanced their career prospects

Conclusion Being dazed and confused, even if only temporarily is something to which the modern business executive rarely admits. However, Danone has discovered that pushing executives out of their familiar and too-comfortable ways of thinking can lead to confusion that is ultimately a catalyst for radical individual and corporate change. Being dazed and confused was a winner for Led Zeppelin over forty years ago. From a review of the collaborative Leading Edge programme developed by London Business School together with Danone, it seems safe to say that being dazed and confused is proving just as profitable for Danone and the company’s CEO, Franck Riboud. Comment: This article written under joint authorship of Danone and LBS executives provides, a detailed analysis of Danone’s ground breaking ‘Leading Edge’ programme. Danone CEO Franck Riboud states that this programme cannot be described as ‘training’ as it is not designed to teach people how to do something. Instead, its purpose, in congruence with Danone’s philosophy of encouraging autonomy and ‘out of the box’ thinking, is to expose executives to confusing or surprising experiential learning which will ask as a catalyst for bold new mind-sets and subsequent action.

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Developing Atos future leaders: GOLD, a tailor-made curriculum

he Gold Programme is an international talent development initiative blending innovative and action-based learning methods to enable Atos to develop its future executives. Atos SE is an international information technology services company headquartered in France with annual revenues in 2012 of € 8.8 billion and 76,400 employees in 47 countries. Serving a global client base, it delivers Hi-Tech Transactional Services, Consulting and Technology Services, Systems Integration and Managed Services. With its extensive technology expertise and industry knowledge, it works with clients across market sectors including manufacturing, retail and services; public sector, healthcare and transport; financial services; telecoms, media and technology; energy and utilities.

Talent development is of premium importance for Atos. We think every employee should be expected to develop and grow as much as they possibly can. That is the reason why we have put in place a series of programmes designed to help individuals reach their potential in each phase of their career Marc Meyer, EVP Talents and Communication 2011 Atos Annual Report

Atos is focused on business technology that drives progress and helps organisations create their “firm of the future”. It is the worldwide information technology partner for the Olympic and Paralympic Games. Atos sees itself as a people-oriented company. It focuses on talent management and nurtures high performers in various ways such as participating in global strategic initiatives, promoting career paths and offering development opportunities.

From a highly competitive IT service market to a successful business transformation strategy In the late 2000s, Atos faced a growing and highly competitive IT services market with multiple new entrants from fast-growing economies. Major IT trends (mobility and internet, social networks, cloud computing and big data) were shaping a second revolution in the business. In order to reinforce its position as leader in its chosen markets, Atos defined a new strategic vision and new objectives and engaged in a massive, fast-paced transformation. This made the company the most successful in the ICT (information and communications technology) industry in Europe within three years.

8.8 Atos SE had annual revenues in 2012 of € 8.8 billion...

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Developing Atos future leaders at the heart of the business strategy This dynamic external and internal business environment required a new type of professional, capable of moving from IT expert to business technologist.

PHOTO COURTESY: ATOS ©

When he joined Atos at the end of 2008 as CEO, Thierry Breton declared: “Our vision for the future is to accelerate progress by uniting people, business and technology”.

• upskill and enable them to lead the corporate transformation, • quickly build a community of “ambassadors”, • contribute to building and sharing common knowledge and a company culture to support its ambition and growth PHOTO COURTESY: ATOS ©

...and has 76,400 employees in 47 countries. Serving a global client base, it delivers Hi-Tech Transactional Services, Consulting and Technology Services, Systems Integration and Managed Services

This unique type of professional should reflect the company’s values: accountability, trust, operational competitiveness, service to clients, innovation, social well-being and excellence. In 2009, the Atos learning and development (L&D) team was asked by senior management to support this ambition through an L&D programme targeting the best managers and pursuing the following objectives:

Such a programme was meant to address the top 400 international profiles (also referred to as “Talents”) and be run by a world-renowned business school. It was soon to be known as the “Gold Programme”.

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Developing Atos future leaders: GOLD, a tailor-made curriculum

This Committee began with a needs analysis, specific to Atos’ target population and context and translated the stakes at hand into development and competency needs. The creation process was highly collaborative. The initiative was managed in accordance with HEC Paris Custom Programmes methodology. This included milestones, defined tasks, a detailed timeline and regular project advancement meetings. Atos and HEC Paris structured the Gold Programme around three five-day residential modules in France and India, supported by online knowledge exchange and extended by task force projects run by internationally dispersed teams between the modules. • Module 1: Leading in challenging times • Module 2: In the business cockpit • Module 3: Implementing business strategy The selection of programme locations supported Atos’ strategic positioning. Being a French company with brand-new global headquarters, called the “Atos campus”, it was key for the programme to take place in France. As the IT sector developed offshore activities in India, as was the case for Atos (more than 5,000 employees in 2010), this country (and especially Mumbai and Pune) was considered as another key location.

The programme is an efficient retention lever, allowing participants to improve their skills and career perspectives in a short period of time and gain access to executive positions An initiative with real business impact approved by all stakeholders The Gold Programme is a lever for management to understand their teams better and identify the best people, to convey and implement strategy leveraging of internal talents as transformation agents and to create business cases in order to innovate. For the L&D team, the Gold Programme has become a very visible and popular programme that demonstrates clearly to senior managers the importance of investing in people development. It is also a powerful way for the Talent Management team to identify and assess high potentials, retain highly qualified people, attract new talents and create a network of people who will help to convey Atos values and ambitions. Participant’s feedback confirms the programme gives them a better understanding of the company and its strategy. Furthermore, it is a powerful lever for self-discovery and development, as well as a valuable opportunity for them to build a sustainable network across functions and locations. It gives them more visibility within the company and, as a result, better career opportunities. The impact of the L&D initiative is measured by using the four levels of the Kirkpatrick model: reactions, knowledge, behaviour and results related to business impact. The Gold Programme has been proved to have a substantial impact on career progression with more than 50% of former participants being promoted to a higher senior-level position within one year.

PHOTO COURTESY: ATOS ©

Co-designing with HEC Paris a tailor-made curriculum to develop Atos future leaders From the outset, Atos and HEC Paris have worked together as a team for both the design and the implementation of the Gold Programme. They have set up a specific Steering Committee composed of Atos Head of Global Communication, Head of Training and Development, Global Talent Manager, HEC Paris Academic Project Manager, Academic Director and Head of Custom Executive Education.

EFMD Global Focus: Volume 07 Issue 03 | 2013

The programme is also an efficient retention lever, allowing participants to improve their skills and career perspectives in a short period of time as well as gaining access to executive positions. As a result, the attrition rate within the Gold community in 2012 is 45% less than overall attrition. This figure has a direct financial impact on Atos as it saves money in recruitment fees and retains key individuals as well as collective knowledge and capabilities within Atos.

40 Since 2010 40 Task Force business cases have been developed and presented to senior management and they have confirmed a positive impact on return on investment

Since 2010, 40 Task Force business cases have been developed and presented to senior management. While specific metrics cannot be shared in this report, Atos senior management has confirmed a positive impact on return on investment in terms of sources of revenue, development of new markets and more efficient collaboration across geographical boundaries. In May 2010, with the success of the programme fully validated, Atos asked HEC Paris to launch two more intakes of 40 Talents in 2011. As of April 2013, there have been five intakes to the Gold Programme, involving 200 Talents, with two new intakes currently being launched.

50% The Gold Programme has been proved to have a substantial impact on career progression with more than 50% of former participants being promoted to a higher senior-level position within one year

Over the last three years, enhancements to the programme have been made based on evaluation feedback and the integration of corporate transformations, such as the merger with Siemens IT Solutions and Services in July 2011, which doubled turnover and staff. Task force projects are receiving more attention from senior executives while participants continue to pursue new challenges in new roles.

FURTHER INFORMATION

This review is based on “Developing Atos future leaders – GOLD, a tailor-made curriculum by HEC Paris & Atos. Target candidates: Talents with a high potential for growth” by Christine Baldy Ngayo (HEC Paris), Valerie Caillaud (Atos) and their associated teams, Corey Phelps, Karine Le Joly, Ann Dushane (HEC Paris) and Marc Meyer, Robin Ajdari and Hervé Scemama (Atos).

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Pathway to Premium: Creating Investment Advisors at Danske Bank

anske Bank Group is the largest bank in Denmark and one of the leading financial enterprises in Northern Europe. It has more than five million retail customers and a significant share of corporate and institutional markets. The group offers a wide range of financial services in three business divisions – Personal Banking, Business Banking and Corporate & Institutions – which span the Group’s geographical markets. Danske Bank employs more than 20,000 employees in 15 markets, with 1,300 in Sweden. A strategic review at Danske Bank Sweden led to a decision to enhance its position as a premium bank by strengthening the advisory concept within Personal Banking. In response a working group proposed that a new group of investment advisors be created for individuals with up to €600,000 to invest. Staff to deliver a new service

Internal recruitment for the new team began. Applicants had to pass interviews with HR and branch managers, be approved by the Personal Banking managers and be assessed by the director of the Financial Training and Advisory Concept (FTAC). Only those who passed all assessments went forward for training. To be appointed they would then need to complete a training programme and a probationary period satisfactorily.

ALL PHOTOS COURTESY: Danske Bank Group ©

The target customer group had been served previously by personal advisors, so it made sense to develop some of these staff for the new team. The new investment advisors (IAs) would work individually with clients and their portfolios over the long-term and the challenge was to equip them for their new role.

EFMD Global Focus: Volume 07 Issue 03 | 2013

Desired business impact The aims for the new IAs were among other things to increase sales volumes while also improving advice and customer feed-back. In order to achieve these aims the IAs should be able to: •g ive clients high-quality advice on a portfolio level as well as on a product level, and •b uild effective relationships with clients on an individual rather than team basis. Danske Bank concluded that external trainers were required and selected IFL Executive Education at the Stockholm School of Economics (SSEIFL) for its in-depth knowledge of current research and academic-level teaching skills on both portfolio management and communication with clients.

Danske Bank concluded that external trainers were required and selected IFL Executive Education at the Stockholm School of Economics for its in-depth knowledge of current research and academic-level teaching skills The L&D initiative SSEIFL uses strong international research and a global partner network to serve customers worldwide. Beginning with clients’ practical challenges and dilemmas, the faculty uses research-based and experiential teaching methods to support participant learning. The programmes equip learners with the tools they will need to generate real impact, both in the short and long term. The Stockholm School of Economics was founded in 1909, and SSEIFL has been delivering financial advisor programmes at a high academic level since the 1990s.

20k Across its three business divisions – Personal Banking, Business Banking and Corporate & Institutions – the Group employs more than 20,000 employees in 15 markets, with 1,300 in Sweden

The SSEIFL director for financial programmes set up a series of meetings with Danske’s director of FTAC, and they developed an innovative two-part plan: SSEIFL would provide an academic-level educational programme and the bank would provide one-toone coaching from specialists. Different types of learning would thus be provided in the right proportions and the in-service coaching would ensure the bank derived the greatest possible value from the SSEIFL programme. Starting from a generic conception of financial advisor training, SSEIFL then customised its programme. The bank’s representative gave feedback on curricular documents and his engagement, in time and attention to detail, was reciprocated by SSEIFL faculty members. The customisation of the programme included incorporating the bank’s investment philosophy and portfolios into teaching material and adopting the personality-profiling model it used. These modifications contributed to greater learning transfer and a more cost-effective programme.

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Pathway to Premium: Creating Investment Advisors at Danske Bank

The first module covered the financial theory and consisted of teaching and exercises while the second module addressed communication with clients and included lectures, discussions and role plays. Theoretical presentations and a range of interactive learning methods were used throughout to ensure that participants addressed the course material several times and in different ways before using their new knowledge at work. Lastly, to help the IAs step fully into their new roles, they wrote individual action plans which were followed up at the bank through discussions with their managers. The participants began using their new knowledge at work right away during a probationary period while their learning and development continued in coaching sessions provided fortnightly by the bank’s investment specialists. These specialists read and evaluated each recommendation written by an IA for a client to check the advisor’s level of activity and to have fortnightly face-to-face meetings in which participants could reflect on their work with clients and receive instruction and feedback. To provide a framework for assessment, the bank’s working group had written detailed evaluation criteria.

PHOTO COURTESY: STOCKHOLM SCHOOL OF ECONOMICS-IFL ©

Environment and methods for SSEIFL programme The programme took place at a residential center to enable the participants to focus on the learning and to facilitate shared learning. The SSEIFL programme director and the bank’s director of FTAC were present throughout to oversee the learning process and ensure the desired outcomes were achieved.

Business impact Danske Bank had selected numerical indicators for measuring achievements against targets and had set up internal systems to monitor progress. The targets for each indicator were met, and for most results exceeded expectations. Since the bank’s specialists scrutinised every client recommendation during the coaching period, quality, in addition to quantity, was ensured at every stage. Furthermore improved customer feedback scores suggest that clients appreciated the changes. Three months after the learning and development (L&D) initiative a focus group evaluation was carried out jointly by SSEIFL and the bank. Participants reported many positive outcomes and said they had found the L&D initiative challenging but enjoyable. They were confident that they were providing significantly better service for the bank and that they would continue to meet targets. In addition they were regularly sharing knowledge and understanding from the L&D initiative with colleagues.

5 The Bank had selected five numerical indicators for measuring achievement against targets and had set up internal systems to monitor progress, the targets for each indicator were met, and for most results exceeded expectations

EFMD Global Focus: Volume 07 Issue 03 | 2013

To help the IAs step fully into their new roles, they wrote individual action plans which were followed up at the Bank through discussions with their managers

Reflections Some of the impact should be attributed to the organisational changes that took place alongside the L&D initiative. Since the IAs left behind some more routine work when they moved into their new roles, time was freed up for client meetings. And it is possible that some of the impact can be attributed to the Hawthorne effect, in which participants perform differently when observed. However all indications are that the targets will continue to be met in the months to come. Reflecting on the success of the initiative, the key players identified the factors they believed contributed: • t he use of Danske Bank’s own portfolios in the SSEIFL programme • t he extent of practical hands-on learning in the SSEIFL programme • the engagement of the Bank Advisory Concept director in the design of the programme • the high level of customisation of the programme • the in-service one-to-one coaching • the clear statement of desired business impact.

PHOTO COURTESY: STOCKHOLM SCHOOL OF ECONOMICS-IFL ©

Combining academic-level education with in-depth coaching was highly successful for the bank, and for SSEIFL it has been rewarding to see the significant business impact from this innovative initiative.

ABOUT THE AUTHORS

Liza Nyberg, Head of Personal Banking, Danske Bank Sweden Kristina Nilsson, Dr, Director Faculty & Product Development, Stockholm School of Economics IFL Executive Education

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Corporate turnaround: Focusing, aligning and building for success

DF Group, a France-based world leader in the energy industry, participates in all areas of the energy value chain. It has the largest electric power generation capacity and the largest client portfolio in Europe plus strong positions in the European gas supply chain. Since the early 1990s, the European energy industry has been progressively restructured: generation and retail have been deregulated while the transmission and distribution grids have remained regulated monopolies. ERDF was created as a separately regulated company in 2008 to operate the company’s French distribution networks. ERDF is fully owned by EDF, its parent company, and employs 36,000 workers, and operates 95% of French distribution networks on behalf of municipalities through almost 700 concession contracts. Figure 1: Boosting the link with local authorities: identifying the learning gaps ERDF

The local authorities

Consequences for ERDF Management: actions required

Awareness of the importance of the issue at…

Limited

Strong

Raise awareness through symbolic actions

Knowledge inside the Executive Team at…

Average

Limited

Engage senior management

Knowledge about the problem inside the larger organisation at…

Limited

Almost none

Develop individual and organisational capabilities

Threats to …

Strong

Moderate

Act quickly

Business consequences for…

Vital … €11 billion euro per year contracts

Varied, depending on the authority

Be operational!

36k ERDF was created as a separately regulated company in 2008 to operate the company’s French distribution networks, it is fully owned by EDF and employs 36,000 workers

Challenges on three fronts for ERDF ERDF’s early years were extremely challenging. With deregulation, the company lost much of its contact and access to end-customers, becoming an interface between electricity suppliers and customers and primarily concerned with technical operations. However, IT problems affected customer service, which led to a significant drop in customer satisfaction between 2007 and 2010. In addition, ERDF had difficulties meeting connection requirements from renewable power producers. This led to significant delays and to public outcry. Furthermore, municipalities and their representative bodies became increasingly dissatisfied with inconsistencies between the local concession contracts and the regulated tariff set by the national energy regulator. They mounted multiple challenges, in court and in parliament, even challenging ERDF’s (quasi-) monopoly over network operations. At the same time, ERDF was concerned that this inconsistency created uncertainty about its financial trajectory. Finally, and probably as a result of the above, internal engagement surveys showed decreasing commitment among ERDF staff.

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An ambitious corporate turnaround programme When she took over as ERDF’s CEO in March 2010, Michèle Bellon identified three priorities for the organisation: • Restore client focus

95% EDRF operates 95% of French distribution networks on behalf of municipalities through almost 700 concession contracts

• Restore operational excellence (in particular improve the speed of connection for renewables) • Align the entire organisation on a common understanding of the economics of the regulated tariff and concession contracts A common understanding was essential not only to negotiate more effectively with the regulator and municipalities but also to interact with all stakeholders, whether external or internal. There was no lack of expertise on the economic environment but it was difficult to master and not widely shared. ERDF needed to turn exclusive strategic insights into broad-based operational knowledge. To deliver on these priorities, in February 2011 the ERDF Executive Committee launched an ambitious organisation development initiative with two objectives: • Foster a customer service orientation among front-line managers • Increase individual and organisational capacities for negotiating local concession contracts (and regulated tariff)

A common understanding was essential not only to negotiate more effectively with the regulator and municipalities but also to interact with all stakeholders, whether external or internal

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Corporate turnaround: Focusing, aligning and building for success

Learning and development: making a business impact To deliver this management agenda, ERDF called on EDF Corporate University. As EDF had progressively become an international company operating on open and deregulated markets, the Corporate University for Management (CUfM) had been created to achieve two objectives: foster business acumen, performance and leadership among executives and managers across the group; and respond to specific individual and organisational needs in the new business environment. Leveraging our resources, CUfM helped ERDF deliver on its agenda: • design the organisation development programme with the CEO and her immediate team by clarifying the initial demand • foster a common understanding of the issues among the various internal stakeholders • given the complexity of the problem, develop a clear and impactful pedagogical approach We embarked on a major three-year learning and development (L&D) initiative structured in two waves: first, the top 240 executives; and then all 2,100 line managers. The specific learning objectives were: •u nderstand the economics underlying local contracts between ERDF and the local authorities plus the regulatory contract between ERDF and the French Energy Regulation Commission • assess the value of the current system for local authorities and ERDF • prepare ERDF line managers to open dialogue and negotiate with local authorities Designing the programme required two qualities: long-term commitment and genuine expertise in the field. Professor Léautier from the Toulouse School of Economics and Damien Heddebaut from Lumeo Conseil joined CUfM’s own internal experts in design and delivery of the full intervention.

TWO PERSPECTIVES

Day 1: Present status of power distribution industry in Europe and France Position performance, strategy and challenges

Day 2: Drill down on regulatory economics Develop the French fries methodology Understand municipalities’ perspectives

TWO DAY Programme

External, academic voice to point out uncomfortable truths and bring distance Internal, excom voice: own previous mistakes, show path forward and explain the new strategy

INTERACTIVE CASES

Figure 2: L&D format for the first wave

Taking the broader view Instead of discussing the detail of electricity concession contracts, the programme used an analogy to hone in on the real issues, developing a scenario in which a city was looking to structure a contract for entrepreneurs to sell French fries along a beach. This analogy was a playful way of enabling executives to gain some distance, better understand local authority perspectives and focus on the key business concepts. For the second wave of 2,100 line managers CUfM partnered with Julhiet Consulting to develop a one-day training module delivered by ERDF senior management to the entire management line. This module used an interactive poster (called a “business mat”) developed by Eric Parendel, a Julhiet consultant on which participants, working in groups of four, could carry out exercises and answer questions and quizzes. The business mat is a structured platform that stimulates discussion and teamwork and encourages participants to see new ways of converting expertise into concrete action. We complemented the module with a short e-learning exercise on finance and accounting.

21k For the second wave of 2,100 line managers CUfM partnered with Julhiet Consulting to develop a one-day training module delivered by ERDF senior management to the entire management line

EFMD Global Focus: Volume 07 Issue 03 | 2013

Impact: enhanced business performance The programme was rolled out from July 2011 to the end of 2012 and has been tremendously successful, reaching levels one and two of the Kirkpatrick model with record highs. There is evidence that level four (business impact) has been attained, with over ten contracts renegotiated with better conditions for ERDF. In parallel, ERDF has negotiated a new regulated tariff that incorporates key economic aspects of the concession contracts thus providing financial clarity and stability to ERDF and its parent and alleviating tensions with municipalities. Senior executives have clearly stated that the programme has helped them achieve these business objectives. It has also been a powerful vehicle to allow ERDF to raise strategic issues that would be difficult to address through other means. CUfM also developed a programme to improve front-line managers’ customer focus (see Box 1). As it became clear that the programme was a major contributor to managing change, the decision was taken to: • Make the programme mandatory for all newly appointed senior executives • Develop a complementary module for all senior executives on how to negotiate with local authorities, emphasising the practical relevance of the knowledge gained

Box 1: Customer focus for 3,400 managers Using the same business mat pedagogical approach, CUfM developed a major L&D initiative for 3,400 front line managers on customer focus u It has

also massively increased the engagement survey of front-line managers and contributed to the improvement of customer satisfaction

u ERDF

management has learned how to transfer knowledge through this methodology

3.4k Using the same business mat pedagogical approach, CUfM developed a major L&D initiative for 3,400 front line managers on customer focus

Senior executives have clearly stated that the programme has helped them achieve these business objectives, and to raise strategic issues that would be difficult to address through other means

Conclusion: knowledge a vector for success This unique set of programmes simplifies complex issues previously owned by a handful of people, creating a wide-reaching learning experience that drove individual professional development and deepened organisational capacities. Moreover, the change is now deeply rooted in ERDF. By boosting the company’s organisational capability it has created the foundation for a true “learning organisation” more open to new insights, more agile and better able to adapt. The key success factors were: • Strong demand from the organisation: all participants were eager to attend and to sharpen their understanding of these critical issues • Fact-based approach: all discussions relied on facts and economic principles not on opinions or perspectives • Innovative methodology combining multiple dimensions and actors /players. This required extensive preparation but was essential to achieving impact

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Management & Development of New Products Programme: Training for Change in the Automotive Sector

007 was a significant year in Galicia’s automotive industry. The boom before the bust might have been a way to interpret the sector’s economic success that year as a record-breaking 547,000 cars were produced by Vigo’s Peugeot-Citröen factory.

In 2008 automobile sales declined sharply and the industry has experienced decreasing demand for new cars during the past five years. This reflects the global economic slump but brings its own particular problems to this autonomous region whose manufacturing base is largely comprised of the ship-building and automotive industries. Of these, the automotive industry continues to be the more significant, accounting for 23% of wall exports from the region. Another marker for the year 2007 was the adoption of Lean manufacturing philosophy and practices. Lean manufacturing is a concept originating in Japanese industry, most notably in Toyota’s manufacturing processes. Its premise is that efficiency can be increased and waste reduced by focusing on what brings value to the end-user or customer. One of the components of Lean manufacturing is the introduction of ‘just-in-time’ (JIT) systems. This concept aims to reduce waste by only manufacturing, purchasing or shipping components as they are needed. By the time that the trend of diminishing sales was well-established, automotive firms were already considering ways of increasing efficiency and reducing waste.

23% The automotive industry continues to be significant accounting for 23% of all exports from the region

EFMD Global Focus: Volume 07 Issue 03 | 2013

Lean manufacturing is a concept originating in Japanese industry, most notably in Toyota’s manufacturing processes – its premise is that efficiency can be increased and waste reduced by focusing on what brings value to the end-user or customer

The role of the CEAGA In order to bring both collaboration and a competitive edge back to the automotive industry, the Galician automotive cluster (CEAGA), an organization founded in 1997 that is comprised of all 91 firms in the autonomous region, established the CEAGA corporate university (UCC). The function of this institution is to improve both the business model, and the expertise of the industry through the provision of action learning programmess and other joint development initiatives.

36 A questionnaire was distributed by UCC to all 36 firms followed by a workshop attended by managers and HR directors

Optimism and realism with the implementation of the GDNP The first programme established by UCC was the Management and Development of New Products (GDNP), a training programme designed to help sector professionals develop the creative vision and the skills required for innovation and new product development. The programme provided both a reflection of and a catalyst for a more optimistic outlook for Galicia’s automotive industry. Optimism represents the knowledge that change can be positive as well as negative and that skills of highly qualified automotive workers can be utilised in the development of new products and processes. At the same time a realistic perspective indicated the necessity of strengthening and developing internal expertise in order to realise timely returns on any new investments.

Challenges The new training programme started life with several specific challenges. First, resistance to change was a significant consideration. Some companies were satisfied with existing training models– those focused on purely technical and short term needs - and did not recognise the need for change. This is a problem often faced by innovators who need to find ways to infect others with their enthusiasm for transformative change. The second problem was the fact that companies did not have the infrastructure or the knowledge to afford innovation equal weighting with manufacturing. What some companies struggled to grasp is that without innovation, manufacturing will not remain a strong factor in the region’s economy. To address these challenges the UCC recognised the need to make all the participating firms feel a part of the changes rather than just observers. To this end a questionnaire was distributed to all participating firms followed by a workshop attended by managers and HR directors from 36 companies. Workshop activities included a SWOT (strengths, weaknesses, opportunities, threats) analysis of the UCC ‘s potential impact on the automotive sector. Participants also engaged in facilitated discussions about various issues associated with the structure, content and implementation of UCC training programmes. The resulting ideas shaped the founding principles of the GDNP programme. These were to act as a ‘motor for change’ promoting innovation, to adapt the curriculum to the needs of the automotive sector, and to develop course content with a practical focus. These reflect the ultimate aim of the GDNP, that of promoting product innovation to strengthen and future-proof the manufacturing sector. This is congruent with the sector’s established strategic planning.

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Management & Development of New Products Programme: Training for Change in the Automotive Sector

Part of the development of any new programme is its evaluation. Using the initial programme as a pilot enables alterations and improvements to be woven into the next and subsequent iterations of the course. The changes made following the first delivery of the GDNP included integration of training itineraries into a single pathway, reducing face-to-face teaching hours while stepping-up the action learning components, and making identified alterations to the content in order to improve and strengthen the programme. Following the third iteration of the programme, internal staff had become confident enough to take over the course management and make any necessary adjustments to the content or delivery without the assistance of outside consultants.

Faculty members are mainly experienced automotive professionals who bring their knowledge of the industry to help create significant realworld learning experiences for their students

The current programme The GDNP has evolved over the first few years of its establishment as a practical, interactive and highly relevant programme. The format consists of a combination of didactic teaching, teambuilding activities, tutorial support, industrial visits and, last but not least, project work in teams composed of students from different companies. Faculty members are mainly experienced automotive professionals who bring their knowledge of the industry to help create significant real-world learning experiences for their students. While outside consultants are still brought in to provide classes on cross curricular topics, the use of industry professionals to provide the bulk of the teaching and tutoring has enabled the UCC to position the GDNP as a development programme that is both current and close to the business, simultaneously keeping costs down. Following a period of didactic instruction and other activities, students commence work on group projects under the supervision of a multi-disciplinary team of experts. These projects pose real development challenges, presented to the programme by CEAGAâ&#x20AC;&#x2122;s companies. Throughout the programme, both didactic element and the action learningâ&#x20AC;&#x2122; phase, two key areas are developed: personal competencies (teamwork, negotiation skills, etc.); and all the technical functions related to product development (project, product and process management, logistics, quality, finance, sales and purchasing).

ALL PHOTOS COURTESY: CEAGA ÂŠ

Developing the GDNP Educational and training expertise had to be imported to assist in the development of the GDNP. Three consulting firms were selected for this process. JG Project and INOVA, used their extensive knowledge of the automotive industry to design the programme, provide technical content and support the teaching team, while Indra developed the soft skills content and teaching and learning methods.

EFMD Global Focus: Volume 07 Issue 03 | 2013

Monitoring student progress helps to keep employers informed about issues such as attendance and group dynamics. At the end of the course each group presents its project to an evaluation committee and a favourable evaluation enables an accredited diploma to be conferred on successful candidates. Additionally those students who best represented the UCC values – team spirit, technical competence and commitment – receive an award. Student and company feedback Student feedback indicates that students ‘get’ the global vision and the importance of innovation by completing this programme. They appreciate the opportunity to develop multi-disciplinary and cross-company interactions and feel that their interpersonal skills and attitudes improve as a result of participating in the programme. One student described what she has learned as “innovate, innovate, innovate”. Companies value the interprofessional links that are established through the programme, while the students’ project work contributes to solutions for real time problems or challenges. An example of student project work that made a major contribution to the industry was in designing components of Citröen’s new C4 Picasso and Berlingo models. While the students of the GDNP programme seem motivated and energised by their participation and their sponsoring companies feel that they are gaining value for money, the ultimate winner may be the entire automotive sector, which is now enjoying the buzz that comes from optimism, innovation and a vision for the future. This success is reflected in the EFMD Excellence in Practice Award, given to CEAGA for the appreciation of their vision of innovation through the establishment of the UCC and its flagship GDNP programme.

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Excellence in Practice: Highly commended entries

Category:

Executive Development Airbus Military & IESE Business School: Empowering Internal Talent to Innovate

Vivero is a comprehensive corporate development programme co-developed by Airbus Military and IESE Business School. The programme was originally envisioned by the CEO of Airbus Military to identify and empower the firm’s top talent and lead strategic business growth from within. Vivero aims to provide these employees with the required business expertise and internal awareness to become “intrapreneurs” in alignment with the global strategy of the company. Vivero’s outcomes have topped expectations and the programme has since become a major pillar for the organisation’s internal development strategy.

EFMD Global Focus: Volume 07 Issue 03 | 2013

Category:

Executive Development

Talent Development

DB Schenker Logistics & Ashridge Business School: Transforming Individual Lives and Organisational Culture for a Sustainable Future

Lancaster University Management School & Greater Manchester Chamber of Commerce: Lancaster Lead: transforming leadership and management in UK SMEs

An independent evaluation reported that ILP delivered “an impressive level of impact”, achieving 100% of its learning objectives

2.2k

Survey data indicates that the programme has contributed to the employment of up to 2,200 people annually across participating SMEs

The Lancaster LEAD programme (LEAD) is a ten-month leadership development initiative for owner-managers of small and mediumsized enterprises (SMEs). The programme recruits highly-motivated participants onto a transformational process that leads to direct strategic, management and employment benefits for their businesses. LEAD contributes to the unleashing of latent growth potential in a vital part of the UK economy, namely SMEs. There are already over 1,600 alumni who have improved their confidence in their role as leaders, developed a more strategic approach to their businesses, and improved their people management skills. Survey data indicates that the programme has contributed to the employment of up to 2,200 people annually across participating SMEs.

100

DB Schenker Logistics’ partnership with Ashridge began in 1999 with the development of the International Leadership Programme (ILP). The programme was designed to nurture senior leaders with the ability to inspire and motivate people across a complex global network. An independent evaluation conducted in 2012 reported that ILP delivered “an impressive and unusual level of impact”, achieving 100% of its learning objectives. Its success has kept it central to the organisation’s business strategy and the programme continues today.

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Special supplement | EFMD Global Focus: Volume 07 Issue 03 | 2013

Excellence in Practice: Highly commended entries

Category:

Professional Development

Category:

Organisational Development

18%

Following implementation of the programme, FR fell by 18%

Repsol and BTS: Health, Safety and Environment Leadership In 2010, Repsol acknowledged that some work was necessary to bring its health, safety and environmental protection (HSE) ratings in line with industry standards. Despite improvements in technology and management systems, the Accident Frequency Rate (FR) remained above the industry average, and was at odds with the company’s strategic HSE goals. In partnership with cultural change consultants, BTS, Repsol introduced PRISMA—a learning programme intended to embed a corporate HSE vision across the organisation. Following implementation of the programme, FR fell by 18%, and the company is on course to achieve its aim of being situated in the lower industry quartile in terms of accident frequency.

Since 2006, IBM and Northeastern have collaborated on the design and implementation of an innovative, integrated learning programme for IBM’s client-facing professionals worldwide. The programme, known as X-SELLerate, is designed to enable IBM professionals to respond to shifts in IT decision-making and the changing needs of their clients. It is based on the premise that significant new business opportunities exist for IBM employees who understand how to think strategically about enterprise growth on behalf of their clients. The programme is continuously updated and refined to enhance participant learning and organisational impact.

IBM & Northeastern University: X-SELLerate, A Professional Development Programme for IBM Client-facing Professionals

EFMD Global Focus: Volume 07 Issue 03 | 2013

Category:

Special

The winning case studies and the highly commended executive summaries are available to read on the EFMD website. You can also find details on how to enter the 2014 Excellence in Practice Awards. VISIT:

www.efmd.org/eip

Since 2008, Royal DSM and Wharton have collaborated on the design and implementation of Executive Leadership Programme 3 (ELP3), an innovative, multi-modular development initiative for DSM’s top executives. ELP3 was created in order to advance DSM’s business goals and to address the dramatic cultural shift needed to support the company’s transformation from a Dutch-centric chemical firm to a global life sciences and materials sciences company. The ELP3 programme has achieved substantial success. All the programme goals are being met and continue to be achieved. In assessing the programme’s impact, DSM noted that the development initiative has helped to advance over 50% of ELP3 incumbent leaders into new executive positions.