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Is Exec Ed Facing Business schools often rely on executive education programs to drive them to profitability, but many corporations are now seeking alternative means to train their employees. If business schools cannot adapt to a changing corporate culture, executive education may be breathing its last. A dict their total extinction, some indicators point to trouble. True, the vagaries of the business cycle have tightened cor- re business school executive programs doomed to go the way of the dinosaurs? As I work with companies on leadership development and observe emerging trends, I frequently ask myself that question. While it may be too early to pre- by Michael Watkins illustration by Linda Helton porate training budgets; in addition, the events of September 11 have had a major impact on executive program enroll- ment. But these events have masked a more profound shift in the way leading companies have begun to develop their man- agement talent. These companies increasingly are turning to more inte- grated, in-house training, rather than to business schools' traditional, open enrollment programs, a sign that business school executive training programs are somehow missing their targets. If the status of executive education is diminished even slightly, business schools' financial outlook and position as premier education providers could be significantly affected. To reverse the current trend, business schools must clearly understand who their customers are and what type of educa- tional delivery those customers require. They must design training programs that suit corporate needs now, not 20 years ago. In short, it's time to raise the stakes in executive educa- tion programs. Only then can business schools keep their growth on an upward swing, rather than a downward spiral. Winning the War for Talent Assigning value to executive education is, of course, subjec- tive. Few would deny, however, that a quality executive edu- cation program has great value to the individual. Students in these programs can hone their skills and network with other business leaders. In some instances, the student's education 32 BizEd SEPTEMBER/OCTOBER 2002