1 June 2016. Many large companies have claimed that people are their greatest asset. A new study by the University of St.Gallen (HSG) shows that while senior managers rank executive Learning & Development (L&D) among the most critical success factors for long-term success, the vast majority of them consider executive L&D to be ineffective in their own firms. The most important reason is that the very top of organisations is insufficiently committed to driving executive Learning & Development.

The second edition of the St.Gallen Executive Education Report (SEER) examines how firms may simultaneously develop firm-wide strategic thinking, organisational capabilities, and individual top managers. Based on a survey among 350 executives and managers from 13 countries the study draws the following five conclusions:

1. Executive L&D is important yet ineffective at most firms: Companies rank executive L&D among the most critical success factors for long-term success. The majority seek to increase their operating efficiency and innovative capacity but are held back by resource constraints and a myopic focus on short-term business goals. Overall, respondents are dissatisfied and consider executive L&D to be ineffective in their firms.


2. C-level commitment is the most important driver for executive L&D effectiveness: C-level commitment refers to the extent to which executive L&D is understood and appreciated as a strategic management challenge. This factor is the most important predictor for executive L&D effectiveness. Without C-level commitment the chances of becoming an executive L&D champion are slim. Firms that aspire to excel in executive L&D should involve their top management team and empower a dedicated learning steward (e.g. Chief Learning Officer) among their ranks.


3. C-level commitment trumps new technology-based learning formats: Once firms have achieved high C-level commitment and formulated their executive L&D strategy, they benefit most from initially developing more traditional, face-to-face learning formats. Technology-based learning formats only become effective after companies have secured top-level strategic ownership and implemented traditional learning formats.


4. Return on executive L&D cannot be measured financially: Firms are unable to quantify financially the return on executive L&D. It is not possible to predict the detailed effects of learning. Executives and board members should not insist on financial metrics but instead seek to be directly involved in shaping and supporting executive L&D programmes.


5. Executive L&D will become even more strategic and expectations will expand further: By 2019, firms expect to pursue a greater scope of executive L&D activities, including new formats and instruments. At the same time, individual L&D activities will have to generate a higher marginal impact by strengthening the link between the overall strategy and the executive L&D strategy.