The Executive Education Market in GCC Countries · 2 The Executive Education Market in GCC ......

2011

The Executive Education Market in GCC Countries

Dubai International Academic City and Manchester Business School

2 The Executive Education Market in GCC Countries

Foreword

It has been a pleasure working jointly with our Academic Partner, Manchester Business School in a first of its kind research on executive education in the GCC region. The findings of the survey are significant to organizations offering and looking to offer executive education programmes in the region.

Executive education has always been leveraged to equip critical teams with enhanced strategic decision making capabilities, a focus shared by executive education providers in the market. However, a full-fledged evaluation to understand the needs of the market was a missing component, particularly with development budgets shrinking and organizations becoming more selective and conscious of returns on investment.

The Manchester Business School survey has bridged this gap by providing valuable data, which can potentially help service providers strategicallyposition offerings in line with the current and future trends in the wider market.

Pointing to positive prospects for the future, the survey results show an improvement in development budgets across the region over the next three years. The current provisions for executive education, according to the survey are satisfactory and in some cases good, but the fact that there is room for improvement, bodes well for the industry.

I also take this opportunity to commend Dr Lucy Daly, Research Business Manager at Manchester Business School for spearheading this study. Dr Daly and teams from both Manchester Business School and TECOM Investments Education Cluster rose to the challenge and surpassed expectations with their efforts, which will go a long way in bolstering the industry.

I also hope the skills gaps identified through the study bring about a relook into the organizational provision for executive development, particularly in view of the long-term implications for the business.

Dr. Ayoub KazimManaging Director TECOM Investments Education Cluster

The Executive Education Market in GCC Countries 3

املــقدمــة

لقد كان من دواعي �شروري العمل بالتعاون مع �شريكنا الأكادميي “كلية مان�ش�شرت للأعمال” وامل�شاركة باحلدث

الأول من نوعه يف دول جمل�س التعاون اخلليجي فيما يتعلق بالبحوث حول “التعليم التنفيذي”، اإذ اأظهرت

النتائج باحتمال وجود جمال وا�شع للتطور ملقدمي “التعليم التنفيذي” يف املنطقة.

يقوم مقدمو “التعليم التنفيذي” برتكيز م�شرتك على تعزيز القدرات ال�شرتتيجية لدى �شناع القرار دون فهم

وتقييم احتياجات ال�شوق، خا�شة مع تقل�س ميزانيات التنمية والتدريب حيث ا�شبحت ال�شركات اكرث انتقائية

ووعيا بعوائد ا�شتثماراتها.

عملت درا�شة “كلية مان�ش�شرت للأعمال” على �شد هذه الفجوات من خلل توفري بيانات قيمة ت�شاعد مقدمي

اخلدمات بتقدمي عرو�س ا�شرتاتيجية تتما�شى مع اجتاهات ال�شوق الوا�شعة احلالية وامل�شتقبلية.

بال�شارة اىل التوقعات امل�شتقبلية اليجابية، اأظهرت نتائج ال�شتطلع حت�شنا يف ميزانيات التنمية يف جميع

اأنحاء املنطقة خلل ال�شنوات الثلث املقبلة. تعترب نتائج التقييم مقبولة ويف بع�س الحيان جيدة، اإمنا

املوؤ�شرات تفيد اأن هناك فر�شا متوفرة للنمو يف هذا املجال.

كما اأغتنم هذه الفر�شة لأثني الدكتورة لو�شي دايل، مدير البحوث يف كلية مان�ش�شرت للأعمال لقيادة هذه الدرا�شة، كما اأ�شكر جهودها وجهود فريق عمل

كل من “كلية مان�ش�شرت للأعمال” وفريق عمل “تيكوم لل�شتثمارات- املجمع التعليمي” التي فاقت كل التحديات والتوقعات والتي �شوف تقطع �شوطا

طويل يف تعزيز وتطوير“التعليم التنفيذي”.

كما اآمل ان الفجوات التي ا�شارت اليها الدرا�شة ت�شاهم يف احداث اإعادة النظر يف الحكام التنظيمية من اجل التنمية التنفيذية، ل �شّيما يف �شوء الآثار

الطويلة الأجل للأعمال.

د.�أيوب كاظم

املدير العام

تيكوم لل�شتثمارات- املجمع التعليمي

The Executive Education Market in GCC Countries4

Dubai International Academic City Profile

Dubai International Academic City (DIAC) is the world’s only Free Zone dedicated to Higher Education. Established in 2007 as part of TECOM Investments, DIAC aims to develop the region’s talent pool and establish the UAE as a knowledge-based economy.

DIAC is the premier destination for Higher Education in the region, located on a fully-appointed 18 million sq ft. campus with state-of-the-art modern facilities. DIAC currently has 27 Academic institutions from 11 countries including world-renowned universities such as Michigan State University, University of Wollongong, Hult International Business School, Heriott Watt University, Murdoch University and the University of Bradford.

The DIAC campus is host to over 18,000 students from over 100 nationalities, showcasing the cosmopolitan and multicultural nature of the region. DIAC students have access to over 300 Higher Education programmes, including Undergraduate and Post Graduate programmes, from fields such as Engineering, IT, Media, Business, Fashion Design, Healthcare, Mass Communications, Media and many more.

DIAC is able to license such segments as Higher Education Providers (Universities, Branch Universities and Junior Colleges), Online Universities, Management Development Centres, Education Service Providers (Academic Support and Student Support Services), Non-Academic Services Providers (Sports Facilities, Libraries, Accommodation) and Free-lancers.

DIAC partners enjoy special privileges such as 100% foreign ownership, 100% tax-free operations, 100% repatriation of profits and effortless visa and licensing issuance procedures for students, faculty and staff. DIAC business partners also benefit from partnerships with Government and regulatory authorities, as well as the DIAC educational infrastructure, developed to help grow your business.

DIAC provides flexible solutions for its business partners with support from its loyal customer service team. DIAC has a dedicated Partner Development Team that provides a platform, which supports the exposure, visibility and growth of existing partners within DIAC, by developing initiatives for student recruitment, research and development and organising ongoing education events.

DIAC students are supported by the Student Hub Team. The team organises events for students including sporting, social and cultural events, while also organising all student visa requirements and general activities aimed at enriching student development.

DIAC is also committed to developing a sustainable, environmentally responsible campus. Recently DIAC Phase III achieved a “Green” status and was awarded Silver LEED certification. DIAC provides an established educational environment for your academic institution, catering to students from all around the world.

DIAC also is ranked top 10 in the Middle East under ‘Best Transportation’ category and top 25 in the Middle East under ‘Best Overall’ category according to 2010 Financial Times Ranking.

DIAC is looking to expand its operations by bringing in Academic institutions and Universities that fit the region’s workforce demand. With years of experience and a strong commitment to developing the UAE’s Education system, DIAC can be seen as your trusted partner in bringing in the very best in International Education.


Manchester Business School

Manchester Business School (MBS) is the UK’s largest campus-based business and management school, consistently highly ranked by the Financial Times. MBS is where high achievers advance their careers through executive programmes, earning an MBS, MBA or DBA without putting their careers on hold.

MBS Middle East CentreOne of six international executive centres worldwide, the MBS Middle East Centre at Dubai Knowledge Village, UAE, opened in 2006 and today provides support for almost 1,000 students in the region, and is now the largest and fastest growing in the school’s international network. The MBA students are all experienced working professionals, many employed in senior positions by some of the world’s leading multinational companies.

Building management skills in the Middle East Professionals can choose between four part time executive MBA learning pathways – Manchester Global MBA, Finance, Engineering Business, and Construction. All the programmes include 250 hours of face to face workshops with Manchester faculty, conveniently hosted in Dubai.

Leading Executive Education In 2011, MBS will launch a new portfolio of executive education programmes for c-level executives, starting in the Middle East where the school has undertaken a survey of the regional market in collaboration with Dubai International Academic City.

Supporting innovationThe Manchester Innovation Award for Emiratis is an initiative of MBS, designed to stimulate entrepreneurship and business innovation among UAE nationals, and provide practical, academic and financial support to develop into successful businesses the best ideas submitted by Emirati entrepreneurs. The 2010 award was held under the Patronage of His Excellency Sheikh Nahayan Mabarak Al Nahayan, UAE Minister of Higher Education & Scientific Research.

www.mbs.ac.uk/dubai


!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

4./)#/)5$!

>?! CD*/#)&E*!8#11%+3 ?????????????????????????????????????????????????????????????????????????????????????????????? :!

>?>?! 7%/FB+,#(0??????????????????????????????????????????????????????????????????????????????????????????????????? :!

>?9?! A*6#-)6 ?????????????????????????????????????????????????????????????????????????????????????????????????????????? :!

9?! 7%/FB+,#(0!),!)5*!6)#03 ???????????????????????????????????????????????????????????????????????????????????? >=!

9?>?! 2,()*D) ??????????????????????????????????????????????????????????????????????????????????????????????????????? >=!

9?9?! A*6*%+/5!,$G*/)&E*6 ???????????????????????????????????????????????????????????????????????????????????? >=!

H?! 4*)5,0,-,B3 ?????????????????????????????????????????????????????????????????????????????????????????????????????? >>!

H?>?! I#*6)&,((%&+* ????????????????????????????????????????????????????????????????????????????????????????????? >>!

H?9?! ;%/*J),JK%/*!&()*+E&*L6 ?????????????????????????????????????????????????????????????????????????????? >>!

M?! A*6#-)6 ???????????????????????????????????????????????????????????????????????????????????????????????????????????????? >9!

M?>?! A*6N,(0*()6 ??????????????????????????????????????????????????????????????????????????????????????????????? >9!

M?9?! 7+%(0!%L%+*(*66!%(0!N*+/*N)&,(6 ????????????????????????????????????????????????????????????? >H!

M?H?! O*+/*N)&,(6!,K!*D*/#)&E*!*0#/%)&,(!&(!)5*!+*B&,( ?????????????????????????????????????? >P!

M?M?! Q+B%(&6%)&,(!%NN+,%/5*6!),!*D*/#)&E*!*0#/%)&,( ?????????????????????????????????????? 99!

M?R?! Q+B%(&6%)&,(%-!N+*K*+*(/*6!K,+!*D*/#)&E*!*0#/%)&,( ????????????????????????????????? 9P!

R?! S*3!K&(0&(B6!K+,1!6)#03 ?????????????????????????????????????????????????????????????????????????????????????? HH!

R?>?! CD*/#)&E*!*0#/%)&,(!&(!)5*!+*B&,( ?????????????????????????????????????????????????????????????? HH!

R?9?! O*+/*&E*0!6F&--!B%N6!%1,(B!L,+F!K,+/*!&(!)5*!+*B&,( ????????????????????????????????? HH!

R?H?! T(0*+6)%(0!)5*!N+*E%-*()!/,+N,+%)*!)+%&(&(B!N+,/*66!%(0!N+%/)&/*6????????? HH!

R?M?! 7+%(0!6)%)#6!,K!4%(/5*6)*+!7#6&(*66!8/5,,-<!"#$%&!'()*+(%)&,(%-!./%0*1&/!

2&)3!%(0!"#$%&!S(,L-*0B*!U&--%B* ?????????????????????????????????????????????????????????????? HM!

R?R?! V5*!*KK*/)!,K!W-,$%-!C/,(,1&/!/+&6*6!,(!)+%&(&(B!&(!)5*!+*B&,( ?????????????????? HM!

R?P?! 4*%6#+*6!,K!AQ'!X+*)#+(!,(!&(E*6)1*()Y!%(0!,+B%(&6%)&,(%-!*DN*/)%)&,(6!,K!

*D*/#)&E*!*0#/%)&,( ??????????????????????????????????????????????????????????????????????????????????? HM!

R?Z?! .))+&$#)*6!,K!*D*/#)&E*!*0#/%)&,(!N+,E&0*+???????????????????????????????????????????????? HR!


1

1. Executive Summary

1.1. Background In partnership, Manchester Business School, Dubai Knowledge Village and Dubai International Academic City conducted a study to evaluate current perceptions of, and attitudes to, executive education in the region. A quantitative online survey was conducted with companies in a range of sectors across the 6 GCC countries. This was distributed to a target of 26,000 Training Managers, Human Resource Managers, Senior executive managers, Line managers and Department heads. A small number of short telephone interviews were also conducted with key organisations.

1.2. Results Many organisations in the region engage in executive education. However, a significant proportion does not, which represents a potential growth opportunity for providers. Overall current provision is perceived to be ‘satisfactory’ indicating that there are opportunities for improvement and growth. However, many organisations find provision to be ‘good’. Companies primarily pitch executive education at senior and middle management, although there is a significant market at board level and junior management. Perceived skills gaps in the region are wide ranging. Executive education priorities for the next 12 months were somewhat more defined, with leadership, business planning and strategy each highlighted. Areas of low priority were international business and negotiation, finance and supply chain management. There is a preference that executive education providers are located in the same country as client organisations, with executive education programmes to be held locally, but off-site. Customised programmes are of more importance than open programmes. Accredited programmes are also important to many. With regards to delivery format, there was little difference in preference for intensive programmes against a programme of short sessions over an extended time period. There is a strong belief that the global economic downturn has had a negative impact on learning and development spending within the region, and executive education budgets have been cut over the last three years as a result. However, the future looks somewhat more positive, with a significant proportion of respondents expecting to see a moderate increase in spending over the next three years, and a small group expecting to experience a significant increase.

2

With regards to the most important attributes when selecting an executive education provider, reputation, understanding of business needs, quality of teaching and tailoring of content were the most important to organisations. However, there is also strong price sensitivity.


1.امللخ�ص التنفيذي

1،1 اخللفية

اأجرت كلية مان�ش�شرت للأعمال بالتعاون مع قرية دبي للمعرفة ومدينة دبي الأكادميية العاملية بتقييم ودرا�شة الت�شورات احلالية حول “التعليم التنفيذي”

يف املنطقة.

اأجريت م�شوحات عرب الإنرتنت مع عدد من ال�شركات العاملية يف دول جمل�س التعاون اخلليجي. اإ�شتهدف هذا التقييم حوايل �شتة وع�شرون األف من

مدراء التدريب واملوارد الب�شرية وكبار امل�شوؤولني التنفيذين وروؤ�شاء الدوائر. كما مت اإجراء بع�س املكاملات الهاتفية مع املنظمات الرئي�شية مبا�شرة.

1،2 النتائج

عدد قليل من املوؤ�ش�شات التي �شملها التقييم تنخرط يف التعليم التنفيذي. مما يف�شراأن هناك جمال وا�شع للتطور املحتمل ملقدمي “التعليم التنفيذي”

يف املنطقة.

يعترب الو�شع حاليا “مقبول” لكن املوؤ�شرات تفيد اأن هناك فر�شا متوفرة للنمو يف هذا املجال. كما تبني من هذه الدرا�شة اأن معظم مقدمي التعليم

التنفيذي يركزون على الإدارة العليا و املتو�شطة على الرغم من وجود �شوقا كبرية على م�شتوى جمل�س الإدارة والإداريون اجلدد.

كما ك�شفت الدرا�شة اأن هناك فجوة بني الطلب و العر�س يف التعليم التنفيذي. تعد القيادة، الإ�شرتاتيجية وتخطيط الأعمال هي اأهم اأولويات التعليم

التنفيذي يف ال12 �شهر املقبلة. اأما املجالت ذات الأولوية املنخف�شة التي اأظهرتها الدرا�شة كانت التجارة الدولية، املالية، التفاو�س، التمويل والتوريد.

كما اأظهرت الدرا�شة اأن معظم ال�شركات تف�شل تواجد مقدمي التعليم التنفيذي يف نف�س البلد ولكن خارج موقع العمل.

تويل العديد من ال�شركات اأهمية للربامج والدورات املعتمدة دوليا والربامج املعدة خ�شي�شا لهدف اأو مو�شوع معني اأكرث من الربامج العامة. اأما بالن�شبة

لأ�شاليب تقدمي هذه الربامج، فتف�شل ال�شركات الربامج املكثفة اأكرث من تلك الق�شرية التي متتد لفرتة زمنية ممتدة.

كما ا�شارت الدرا�شة على اأن الأزمة املالية العاملية اأثرت �شلبا يف قيمة الإنفاق على جمايل التنمية و التدريب املهني. مما اأدى اإىل اإ�شتقطاع ميزانية

التعليم التنفيذي يف معظم ال�شركات. اأو�شح البع�س اأن امل�شتقبل يبدو اأكرث اإيجابية واأن تكون هناك زيادة معتدلة يف قيمة الإنفاق على التعليم التنفيذي،

حني يرى البع�س الآخر اأن تكون هناك زيادة كبرية ووا�شحة يف الإقبال و الإنفاق على التعليم التنفيذي يف املنطقة.


3

2. Background to the study

2.1. Context

TECOM Investments is a subsidiary of Dubai Holding and a diversified conglomerate. TECOM’s core business interest is in industry cluster development. The organisation has various operations including Dubai Internet City, Dubai Media City, Dubai Knowledge Village, Dubai International Academic City. Dubai Knowledge Village and Dubai International Academic City would like to develop an understanding of the demand for Executive Education and University programmes in the region, to enable the prioritisation of communication activities and the development of an action plan for addressing market needs. In partnership, Manchester Business School Middle East International Executive Centre, at Dubai Knowledge Village, and Dubai International Academic City conducted a study to evaluate current perceptions of, and attitudes to, executive education in the region.

2.2. Research objectives The objectives of the research were to:

Understand the perceived skill gaps amongst the workforce in the region across different levels (from entry level to top management).

Understand recruitment practices across identified industries. Understand the prevalent corporate training processes and practices. Understand the brand status of DIAC DKV and MBS. Understand the impact of the global economic crisis on training budgets. Understand the expected ROI (return on investment) pertaining to executive

training. Understand the organisations’ expectations of executive education providers.


4

3. Methodology

3.1. Questionnaire A quantitative online survey was conducted. This was distributed to a target of 26,000 Training Managers, Human Resource Managers, Senior executive managers, Line managers and Department heads across all 6 GCC countries, and from the following sectors and industries: Sectors Industries Financial services Banks, Insurance, Investments, Advisory services Communication Telecommunications; Media/Broadcasters, internet service

providers Transportation Airline, land and logistics Trade Trading houses

Construction Property development/Builders Real estate Agents Tourism Travel and ticketing agencies, and hotels Professional services Management Consultants, Attorney/ Law firms,

Environment firms, Architect firms, Chartered Accountants Medical Hospital, Hospital equipment manufacturers,

Pharmaceutical companies Education providers Technical/Engineering universities; management colleges,

Medical Colleges./ universities Government & ministries

Education, Energy, Transport, Interior, Planning

Semi government & NGO

Financial, Master Real Estate Developers, Oil and Gas

Manufacturing industry

Construction Material, Furniture, Clothing, Electric Appliances, Electronics

Oil & Gas sector Off Shore, On Shore, Drilling, Excavation

Retail FMCG, Health Care, Furniture, Electronics

Heavy industries Aluminium Smelter, Steel, Ship Building, dredging

3.2. Face-to-face interviews Nine telephone interviews were conducted with selected organisations. These serve to add context and depth to the qualitative data collected.


5

4. Results

4.1. Respondents The survey was sent to 26,000 organisations across a large number of sectors in GCC countries. A total of 537 responses were received, from a range of sectors (Figure 1). Figure 1: Sector

Sector of respondents

020

406080

100

120140

Accountin

g/Audit

ing

Arts/En

tertainmen

t/and M

edia

Automotiv

e

Caterin

g/Food Se

rvice

s/Rest

aurants

Computer/Hardware/So

ftware

Consultin

g Serv

ices

Educa

tion, T

raining,

and Lib

rary

Fash

ion Design

Finan

cial S

ervice

s

Healthca

re, Prac

titione

r and

Tec..

.

Human Reso

urces

Informati

on Tech

nology

Insuran

ce

Internet/E-co

mmerce

Lega

l

Manufac

turing a

nd Producti

on

Marketi

ng

Oil/Petro

leum

Publish

ing

Retail/W

holesal

eSa

les

Secu

rity

Sports

and Recr

eatio

n

Telec

ommunicatio

ns

Texti

les

Transp

ortatio

n

Vehicle In

specti

onOther

Sector

Num

ber o

f res

pond

ents

The survey was sent to respondents with some responsibility for training and development within their organisation. This included:

Training Managers, Human Resource Managers, Senior executive managers, Line managers and Department heads

The majority of respondents were at a senior executive position in their organisation, with 29.8% Senior Executive Manager and 27% Director (Figure 2).


6

Figure 2: Role of respondents

Job role of respondents

020406080

100120140160180

Senior e

xecu

tive m

anager

Directo

r

Training M

anag

er

Human Reso

urce M

anag

er

Line m

anag

ers

Departm

ent h

ead

Role

Num

ber o

f res

pond

ents

4.2. Brand awareness and perceptions Respondents were questioned about their brand awareness and perceptions of Manchester Business School, Dubai International Academic City and Dubai Knowledge Village. There is good awareness of the three brands, extremely good awareness of Dubai International Academic City, with 84.9% of respondents aware of the brand (Figure 3), and Dubai Knowledge Village, of which 94.9% of respondents were aware (Figure 4), and good awareness of the Manchester Business School brand 63.5% of respondents aware (Figure 5). Figure 3: Awareness of Dubai International Academic City

Are respondents aware of Dubai International Academic City (DIAC)

416

74

Yes

No


7

Figure 4: Awareness of Dubai Knowledge Village

Are respondents aware of Dubai Knowledge Village (DKV)

464

25

Yes

No

Figure 5: Awareness of Manchester Business School

Are respondents aware of Manchester Business School

311

179

Yes

No

Overall brand perceptions were positive across all three brands, although the degree of positivity increased in line with brand awareness. 11.7% of respondents indicated that their perception of Manchester Business School was ‘very positive’ and a further 37.4% noted that they had a ‘positive’ perception of the Manchester Business School brand. The majority of the remaining respondents (49.1%) had a ‘neutral’ perception (Figure 6).


8

In the case of Dubai International Academic City, 12.5% indicated that their perception of the brand was ‘very positive’ a further 41.5% suggested a ‘positive’ brand perception and 42.7% of respondents noted that their perception was ‘neutral’ (Figure 7). Dubai Knowledge Village, as well as having the greatest brand awareness of the three brands, had the greatest percentage of respondents indicating ‘very positive’ (22.3%) and ‘positive’ (51.1%) perceptions of the brand. A further 23.5% had a neutral perception of the brand (Figure 8). Figure 6: Perceptions of the Manchester Business School brand

Respondents perceptions of the MBS brand

0

50

100

150

200

250

300

Very posit

ive

Positive

Neutral

Negativ

e

Very neg

ative

Response

Num

ber o

f res

pond

ents

Figure 7: Perceptions of the Dubai International Academic City brand

Respondents perceptions of DIAC

0

50

100

150

200

250

300

Very posit

ive

Positive

Neutral

Negativ

e

Very neg

ative

Response

Num

ber o

f res

pond

ents


9

Figure 8: Perceptions of the Dubai Knowledge Village brand

Respondents perceptions of DKV

0

50

100

150

200

250

300

Very posit

ive

Positive

Neutral

Negativ

e

Very Neg

ative

Response

Num

ber o

f res

pond

ents

This represents opportunities for further brand building, particularly for the Manchester Business School brand, particularly in converting those with a neutral perception.

4.3. Perceptions of executive education in the region Respondents were questioned on their perceptions of executive education in the region, including the quality, breadth (range, format and price options) and frequency of programmes offered. Executive education is an important function for many organisations. Telephone interviews confirmed this.

“People are the most imprtant element, Investing in them is the right thing to do”

Consultancy organisation

Executive Education programmes are currently undertaken in the organisations of 42% of respondents (Figure 9).


10

Figure 9: Prevalence of Executive Education

Do organisations currently undertake executive education programmes

190

262

Yes

No

Overall the perception of the quality of executive education in the region is that it is satisfactory to good, with 44.3% of respondents indicating that they found it ‘satisfactory’, 26.6% finding it ‘good’ and 7.3% finding it very good (Figure 10). However, 19.7% of respondents noted that they consider the quality of executive education in the region to be ‘poor’. Figure 10: Perceptions of the quality of executive education

Respondents perception of the quality of executive education offered in the region

33

120

200

89

9

Very good

Good

Satisfactory

Poor

Very poor

Telephone interviews indicated that where current executive education provision fails to meet requirements is in understanding the requirements of organisations and tailoring programmes towards organisational needs. Some comments from the interviews include:


11

“Inexperienced instructors” Telecommunications organisation

“Understanding the needs of high development of coaching skills.” Oil sector organisation “They don’t understand the competence levels of the participants. Pre assessments should be done i.e. Managed Learning or Consultancy Lead trainings” Telecommunications organisation “The Material sometimes is too simple & shallow” Consultancy organisation

Over one quarter of respondents felt that the breadth of executive education in the region was good (24%) or very good (9%). However, a significant proportion felt that breadth was satisfactory (41.3%) a further 27.8% considered the breadth of provision offered in the region to be poor, and 1.8% stated that it was very poor (Figure 11). Figure 11: Perceptions of the breadth of executive education

Respondents perception of the breadth of the executive education coverage in the region

23

108

186

125

8

Very good

Good

Satisfactory

Poor

Very poor

As with quality and breadth, a significant proportion of respondents felt that the frequency of executive education programmes in the region were good (25.6% of respondents) or very good (5.1%). However, 42.7% of respondents indicated that they found the frequency only satisfactory, and 24.4% of respondents indicated that they felt the frequency of executive education in the region to be poor (Figure 11).


12

Figure 11: Perceptions of the frequency of executive education

Respondents perception of the frequency of executive education courses in the region

23

115

192

110

10

Very good

Good

Satisfactory

Poor

Very poor

There was a strong belief that the global economic downturn has affected organisational development budgets in the region. 51% of respondents indicated that they felt development budgets have been very much affected and a further 44% felt that budgets had been somewhat affected. Only 5% of respondents indicated that in their opinion budgets had not been affected (Figure 12). Figure 12: Impact of the global economic downturn on development budgets

Extent to which respondents consider development budgets been affected by the global economic downturn

19

184214

Not at all affected

Somewhat affected

Very much affected

The research indicated that the economic downturn has largely had a detrimental effect on learning and development spending in the region, with 50% indicating that they felt


13

the impact to be negative and a further 14.4% indicating that they felt it to be very negative. Only 3.8% felt it had had a very positive effect, 17.5% a somewhat positive effect, whilst 9.8% felt that it had had no impact (Figure 13). Figure 13: Impact of the global economic downturn on learning and development spending in the region

Respondents perception of the impact of the economic downturn on learning and development spending in the

region16

73

41

200

60

27

Very positive

Somewhat positive

No impact

Negative

Very negative

I do not know

The perceptions of the impact of the economic downturn on learning and development spending in the region are backed by changes to executive education budgets over the last three years. Overall these have been reduced, with 26% indicating that they have reduced significantly and 41.8% indicating that they have been somewhat reduced. A further 12.7% indicated that their budgets had remained static over the period. Only 15.4% indicated that budgets had increased somewhat, whilst a further 4.1% noted that budgets had increased significantly (Figure 14).


14

Figure 14: Changes in executive education budgets over the last 3 years

Respondents perception of the year on year change on executive education budgets over the last 3 years in their

organisation17

64

53

174

108

Budgets have increasedsignificantly

Budgets have increasedsomewhat

Budgets have remained thesame

Budgets have been reducedsomewhat

Budgets have been reducedsignificantly

There is some degree of positivity for executive education spending in the near future with 40.9% of respondents indicating that they expect a moderate increase in spending, and a further 6% expecting a significant increase. However, 35.1% expect spending to remain the same, 10.3% expect a moderate reduction and 7.7% expect there still to be a significant reduction over the next three years (Figure 15). Figure 15: Expected change to executive education spending in the coming 3 years

Respondents opinion on the likely change to executive education spending in their organisation over the next

three years25

170

146

43

32

A significant increase

A moderate increase

No change

A moderate reduction

A significant reduction


15

4.4. Organisation approaches to executive education Executive education is pitched primarily at senior (64.4% of respondents) and middle (52.6% of respondents) management levels. 25.9% of organisations pitch executive education at junior management, whilst 22.9% pitch at board level (Figure 16). Figure 16: Level at which executive education is pitched

Level that organisations pitch executive education

0

50

100

150

200

250

300

Board

Senior m

anag

ement

Middle man

agem

ent

Junior man

agem

ent

Response

Num

ber o

f res

pond

ents

Organisations involved in the study recruit at a high level of educational attainment. Of the companies involved in the study, 72.5% recruited employees with a postgraduate degree, and 64.7% recruited those with an undergraduate degree. Organisations recruiting with a vocational qualification were significantly lower at 34.5%, and those recruiting with a high-school qualification lower still at 30.7% (Figure 17).


16

Figure 17: Level at which organisations recruit

Level(s) at which organisations recruit

0

50

100

150

200

250

300

350

High sc

hool g

raduate

Vocatio

nal quali

ficati

on

Undergrad

uate de

gree

Postgrad

uate de

gree

Response

Num

ber o

f res

pond

ents

The survey highlighted a broad range of skills gaps across organisations, with no specific area being significantly more of an issue than others. Some areas were, however, less commonly cited and these included finance, supply chain management and international business and negotiation. The full breakdown is shown in Figure 18 and table 1. Figure 18: Skills gaps in organisations

Skills gaps in organisations

157

95

171

136

173165

77

106

160

157Project management

Finance

Strategy

Marketing

Leadership

Organisational development

Supply chain management

International business andnegotiation

Business planning

Innovation and creativity


17

Table 1: Skills gaps in organisations Response Ratio

Leadership 43.7% Strategy 43.2% Organisational development 41.7% Business planning 40.5% Project management 39.7% Innovation and creativity 39.7% Marketing 34.4% International business and negotiation 26.8% Finance 24.0% Supply chain management 19.4% Other 9.1% With regards to executive education priorities over the next 12 months, the areas that are less of a priority are in line with recognised skills gaps, so, supply chain management, international business and negotiation and finance. All other areas were cited as a priority by approximately one quarter to one third of respondents, and again follow a pattern similar to that of the noted skills gaps (Figure 19 and Table 2). Figure 19: Short-term executive education priorities

Executive education priorities over the next 12 months

98

63

115

101

130

97

36

72

116

94

Project management

Finance

Strategy

Marketing

Leadership




Business planning



18

Table 2: Short-term executive education priorities Response Ratio

Leadership 39.5% Business planning 35.2% Strategy 34.9% Marketing 30.6% Project management 29.7% Organisational development 29.4% Innovation and creativity 28.5% International business and negotiation 21.8% Finance 19.1% Supply chain management 10.9% Other 10.0% Over the longer term, executive education priorities follow a pattern similar to that of short-term priorities, but with a notable increase in focus on organisational development, leadership and strategy (figure 20 and table 3). Figure 20: Longer-term executive education priorities

Executive education priorities over the next 3 years

96

73

150

104

162136

33

95

128

116

Project management

Finance

Strategy

Marketing

Leadership




Business planning



19

Table 3: Longer-term executive education priorities Response Ratio

Leadership 49.3% Strategy 45.7% Organisational development 41.4% Business planning 39.0% Innovation and creativity 35.3% Marketing 31.7% Project management 29.2% International business and negotiation 28.9% Finance 22.2% Supply chain management 10.0% Other 7.6% With regards to evaluating the return on investment of executive education, achievement of strategic goals (58.7% of respondents), increase in productivity (55.9% of respondents), and increase in effectiveness (55% of respondents) were notably of greater importance than reduction in costs (37.6% of respondents) and increase in innovation (32.7% of respondents) (figure 21). Figure 21: Evaluating the return on investment of executive education

Measures used by organisations to evaluate the value/return on investment of executive education

192

180

183

123

107

Achievement of strategicgoals

Increase in effectiveness

Increase in productivity

Reduction in costs

Increase in innovation(products and processes)

4.5. Organisational preferences for executive education With regards to location of executive education provider, responses were split between a preference for the provider to be located in the same country as the business (41.7% of respondents) and not having any preference (37.5% of respondents). Only 11.3% of respondents had a preference for the provider to be from a GCC country, and 9.5% for a provider to be from the Middle East (Figure 22).


20

Figure 22: Preferred location of executive education provider

Preferred geographical location for executive education provider

137

3731

123

I prefer executive educationproviders to be from thecountry where my businessis based

I prefer executive educationproviders to be from a GCCcountry

I prefer executive educationproviders to be from theMiddle East region

I do not have a preferenceregarding the location ofmy executive educationprovider

However, respondents noted a strong preference for delivery of executive education programmes to be located off-site but locally to the organisation, with 49.5% of respondents indicating this was a preference (figure 23). Local may vary from country to country, and respondent to respondent, and so this is likely to need pursuing in greater depth in discussion with individual organisations. Figure 23: Preferred location of executive education programme

Preference with regards to location of executive education programmes

67

162

34

64I prefer programmes to beon-site

I prefer programmes to beoff-site but local

I prefer programmes to beoff site, but in the region

I do not have anypreferences regardinglocation

The survey indicated a preference for customised over open programmes with 51.6% of respondents noting that they would wish to see an executive education provider


21

offering customised programmes, and 28.4% of respondents looking for open programmes. Interviews confirmed this perspective:

“More customised training, rather than ready from the shelf products, more of consultancy & customization according to the market segment”

Consultancy organisation Accredited programmes are of interest, with 49.8% of respondents looking for these. With regards to delivery type, intensive programmes (33.3% of respondents) and a programme of short sessions over a prolonged period of time (33.9% of respondents) were of similar importance (figure 23). Figure 23: Preferred format of executive education programmes

Programme formats that organisations wish to see from an executive education provider

93

169

163

109

111 Open programmes

Customised programmes

Accredited programmes

Intensive programmes

Programme of shortsessions over an extendedperiod

Achievement of strategic goals (66.5% of respondents) increases in effectiveness (64.1% of respondents) and increase in productivity (56.4% of respondents) were all important to over half of respondents (figure 24). This is very much in line with the measures used to evaluate the return on investment in executive education shown in figure 21.


22

Figure 24: Improvements sought from executive education programmes

Key improvement(s) that organisations wish to see from executive education providers

217

209

184

142

135

Achievement of strategicgoals

Increase in effectiveness

Increase in productivity

Reduction in costs

Increase in innovation(products and processes)

When considering the most important attribute of an executive education provider, a number of key attributes stood out. These included reputation (18% of respondents), quality of teaching (17.8% of respondents), understanding of business needs (16.6% of respondents) and tailoring of content to meet the needs of the organisation (15.3% of respondents). Attributes such as delivery location (1.2% of respondents), provider brand (1.5% of respondents), academic research of provider (1.8% of respondents) and relationship (2.8% of respondents) were unimportant (figure 25).


23

Figure 25: Attributes influencing choice of executive education provider

The most important attribute influencing choice of executive education provider

41

61

9

5458

33

6

50

4 5Price

Reputation

Relationship

Understanding of businessneeds

Quality of teaching

Real world experience ofteachers

Academic research ofteacher/provider

Tailoring of content to meetorganisation needs

Location of delivery

Brand of provider

These attributes were also reflected when considering overall attributes that are important for providers. However, price was a much greater consideration in this case, noted by 55.2% of respondents (only 12.6% of respondents indicated that price was the most important attribute), followed by reputation (54.2% of respondents), quality of teaching (53.6% of respondents) and understanding of business needs (48.1%). Less important attributes remained the same (figure 26 and table 4).


24

Figure 26: Attributes influencing choice of provider

Attributes influencing choice of executive education provider

180

177

44

157175

143

49

116

8456 Price

Reputation

Relationship

Understanding of businessneeds

Quality of teaching

Real world experience ofteachers

Academic research ofteacher/provider

Tailoring of content to meetorganisation needs

Location of delivery

Brand of provider

Table 4: Attributes influencing choice of provider Response Ratio Price 55.2% Reputation 54.2% Quality of teaching 53.6% Understanding of business needs 48.1% Real world experience of teachers 43.8% Tailoring of content to meet organisation needs 35.5% Location of delivery 25.7% Brand of provider 17.1% Academic research of teacher/provider 15.0% Relationship 13.4% It is worth noting that ‘relationship’ did not stand out in the survey as an important attribute when selecting a supplier. However, interviews with a small number of selected organisations highlighted that the relationship between executive education provider and client should be a partnership, rather than an arms-length supplier-customer relationship

“We believe in, and are committed to, learning and development, hence Executive Education providers are strategic partners.” Pharmaceuticals organisation


25

This indicates that, when organisations are selecting a supplier, reputational aspects such as organisational competence and ability to deliver are key and companies are prepared to switch supplier, but that once a supplier is selected, the ability to work together in partnership is essential.


26

5. Key findings from study

5.1. Executive education in the region Many organisations in the region currently engage in executive education. However, a significant proportion still does not, which represents a potential growth opportunity. A significant proportion of organisations consider executive education in the region to be good in terms of quality, breadth and frequency. However, overall current provision is perceived to be satisfactory indicating that there are opportunities for improvement and growth.

5.2. Perceived skill gaps among work force in the region Companies are recruiting skilled employees into the workforce, often with graduate and postgraduate degrees. However, perceived skills gaps in the region are wide ranging. Only finance and supply chain management were recognised as a gap by less than one quarter of respondents. However, executive education priorities for the next 12 months were somewhat more defined, with leadership, business planning and strategy each highlighted as a priority by more than one third of respondents. Areas of low priority, each highlighted by less than one quarter of respondents were international business and negotiation, finance and supply chain management. Priorities for the coming three years were very much in line with those for the 12-month period, with the addition of organisational development and innovation and creativity. Again, supply chain management and finance were not considered to be priority areas.

5.3. Understand the prevalent corporate training process and practices. Companies primarily pitch executive education at senior and middle management, although there is a significant market at board level and junior management. Although a significant proportion of organisations prefer that executive education providers are located in the same country as client organisations, a similar number indicate that location of provider is not a concern. Only a small proportion of organisations indicated that they would prefer a supplier to come from a GCC or Middle East country. This suggests that there are opportunities for external suppliers entering the market. However, with regards to delivery location, a majority of organisations noted that they would want executive education programmes to be held locally, but off-site, suggesting that, although suppliers do not necessarily need to be based in the region, they do need to have a satellite location and be able to deliver in the country where clients are based.


27

Over half of companies indicated that they would wish to see an executive education provider offering customised programmes, with only just over one quarter wishing to see open programmes. Accredited programmes are also important to many. With regards to delivery format, there was little difference in preference for intensive programmes against a programme of short sessions over an extended time period.

5.4. Brand status of Manchester Business School, Dubai International Academic City and Dubai Knowledge Village

Brand awareness of all three brands is good, but particularly Dubai International Academic City and Dubai Knowledge Village. Perception of the three brands is also good, but again, particularly Dubai International Academic City and Dubai Knowledge Village. As reputation is a key selection criterion for organisations, this indicates potential opportunity for growth. However, in all cases, there were a notable proportion of neutral responses. This represents an opportunity for further growth and brand building.

5.5. The effect of Global Economic crises on training in the region There is a strong belief that the global economic downturn has had a negative impact on learning and development spending within the region. Over half of respondents noted that spending had been significantly affected, whilst a further significant proportion of organisations noted that spending had been somewhat affected. Executive education budgets have been cut over the last three years a result of the economic downturn. A quarter of companies indicated that these had been cut significantly whilst almost half suggested that these had been somewhat reduced. However, the future looks somewhat more positive, with a significant proportion of respondents expecting to see a moderate increase in spending over the next three years, and small group expecting to experience a significant increase. Many organisations, however, expect executive education spending to remain unchanged for the next three years.

5.6. Measures of ROI (return on investment) and organisational expectations of executive education

Achievement of strategic goals, increase in productivity and increase in effectiveness were the most important factors when considering the return on investment of executive education programmes. Increases in innovation (products and processes) and reduction in costs, whilst still of some importance, were less important.


28

5.7. Attributes of executive education provider With regards to the most important attribute when selecting an executive education provider, reputation, understanding of business needs, quality of teaching and tailoring of content were the most important to organisations. However, when considering overall attributes that were important in selection, price became of paramount importance, being cited by over half of companies. This suggests that, although price is not the most important attribute, there is strong price sensitivity amongst organisations.


Dubai International Academic City P.O.Box 345045 Dubai, United Arab Emirates Ph: +971 4 360 2060 Fax: +971 4 360 4886 E-Mail: [email protected] Business E-mail: [email protected] Web: www.diacedu.ae

Manchester Business School P.O.Box 502907 Dubai Knowledge Village Block 2B, Office F16 Dubai, United Arab Emirates Ph: +971 4 4468664 Fax: +971 4 4468665 Email: [email protected] Web: www.mbs.ac.uk/dubai

The Executive Education Market in GCC Countries · 2 The Executive Education Market in GCC ......

Documents

Transcript of The Executive Education Market in GCC Countries · 2 The Executive Education Market in GCC ......