Does your organization have an executive
development program? If not, they are representative of the 34%
of organizations recently sampled in the Executive
Development: Strategic and Tactical Approaches report that
have no active executive development program. Only 38% of
participating companies have an active executive development
program, while 23% have a program that is activated as
The executive development "playground" is dominated by "the big
kids" - large organizations with substantial revenues. As annual
revenue increases, so does the likelihood of having an executive
development program. Executive development is a costly investment,
with the average amount spent on each employee participating in a
program reaching $12,370. [more]This average amount is 1,021%
higher than the overall average learning expenditure reported in
the 2008 ASTD State of the Industry Report. This finding
is not surprising given the intensive demands of cultivating new
executives and high-level personnel required for the efforts. It
highlights that organizations with an active approach to executive
development tend to have large workforces and hefty annual incomes.
They have sufficient funds allocated to executive learning and
development, which provides employees with the learning
opportunities necessary to cultivate skills for running a
successful organization. Nearly half the companies that reported
having an active executive development program had annual revenues
of $3 billion or more.
Two approaches to active executive development programs have also
been identified: "heavy" and "light". Organizations with "heavy"
programs tend to operate at a global or multinational level, have
large revenues, and report better-than-average organizational
performance. They have a tendency to spend more on each participant
in learning, have a higher percentage of the workforce in executive
development and rely more on outsourcing for executive development.
Conversely, organizations with "light" executive development
programs tend to have national operations, generate less revenue,
and report poorer organizational performance; these organizations
subsequently spend less, have a lower percentage of employees in
executive development, and rely more on internal resources for
their executive development initiatives than on external resources.
Source: Executive Development: Strategic and Tactical
Approaches (ASTD/Booz Allen Hamilton)
Click here to learn more about ASTD Research.