When it comes to training, CEOs — whether they are the head of an SME or employees of independent structures — tend to opt for programs offered outside their company.

Indeed, for many, it can be difficult to find themselves in a position of learner in front of their teams.

On the other hand, within more structured groups, the question of the choice between internal training (intra-company) or open to the outside (inter-company) deserves strategic consideration.

Two main directions are then available to HRDs and training managers:

do they want to take advantage of training to strengthen cohesion between the group's senior CEOs, enable them to better know the various entities and to promote a transversal vision of activities?

Or do they prefer to encourage openness to other professional environments, so that their leaders can draw inspiration from a variety of practices and provide the organization with new perspectives?

Here is our insight to help you choose between these two options.

Definition and differences between internal and external training

Training employees regularly is essential to maintain their level of skills and to enable the company to progress as a whole.

To do this, two solutions are available to the company's training manager and its CEOs: internal training and external training.

Internal training takes place within the company itself. It is designed and often run by the employees themselves, whether managers, HR managers or business experts.

It aims to strengthen know-how directly linked to the tools, procedures and culture of the company. Result: the learning is immediately applicable and adapted to the reality on the ground.

On the other hand, external training involves specialists from outside or dedicated organizations.

It generally takes place outside the company's premises.

This type of training allows you to explore new approaches, to acquire specific skills or to benefit from a different point of view.

It often encourages openness to other practices and encourages innovation.

In any case, whether internal or external, Management training is a must.

Regular training is a necessity to effectively manage an organization and ensure its long-term performance.

Actors involved in training, internally and externally

As part of the skills development plan, internal training is based on well-structured collaboration between several key players.

• First of all, it is the HR department, and especially the human resources manager, which defines priorities and mobilizes the resources needed to implement actions.
• The training manager then takes over by coordinating the various actions, establishing the schedule and evaluating the progress of the participants. It can also intervene on the content according to the needs identified.
• Les managers also play a fundamental role. Thanks to their proximity to the teams and their knowledge of the field, they quickly detect skills needs while supporting their employees on a daily basis and sometimes providing training sessions themselves.
• In addition, internal expertise is put to use with technical professionals of the company who share their know-how on specific themes. Finally, at the heart of the system, the employees who actively participate in these training courses.

As far as external training is concerned, the approach is just as structured.

Through varied pedagogical approaches, independent trainers or trainers from specialized organizations share their knowledge.

Depending on the needs expressed, organizations develop standard or tailor-made training programs.

We often find the intervention of an educational designer prior to this offer.

Advantages and disadvantages of each type of executive training

Faced with a professional world that is constantly changing, Training is essential for CEOs, and this throughout their careers.

This helps them refine their decisions, better manage their teams and stay up to date with new challenges.

They have two main options: training courses conducted internally, within the company itself, or those provided by external service providers.

Each has its own strengths and limitations, which deserve to be studied according to the needs of the organization.

This overview suggests comparing these two options. We will start with internal training, which is often better anchored in the daily reality of the company and favorable to team cohesion.

Then we will see what external training can offer, especially in terms of openness, new ideas and enriching meetings with other professionals.

Internal executive training: pros and cons

Organizing training courses within your company can be an interesting option to explore for various reasons.

In particular, it is an opportunity to respond to specific challenges with tailor-made sessions while strengthening corporate culture.

However, this solution is not without time and resource requirements.

She may also lack perspective if she stays too focused on internal habits.

The benefits of training courses organized internally

1. Strengthen cohesion between employees
   Training courses organized directly in the company are an excellent opportunity to bring teams together. In this way, employees from the various departments have the opportunity to meet, exchange and get to know each other. Connections are forged, cooperation is developed and team spirit is strengthened during these shared times. All in an environment where knowledge is disseminated more easily.
2. Meet the concrete needs of the company
   Internal training also has the advantage of meeting the specific needs of the company. Field constraints and expected goals are taken into consideration in their design. This makes it a relevant tool to support business transformations.
3. Encourage collaboration between departments
   In many structures, services work in parallel, without always intersecting. Joint training is a good opportunity to break these silos by promoting interactions. Everyone can then learn to know the challenges of others, share their ideas, and enrich their way of doing things. These exchanges often lead to new ideas and improvements that everyone can benefit from.

The potential disadvantages of in-house executive training

Despite their numerous benefits, internal training courses are not exempt from certain constraints.

Indeed, by bringing together only employees from the same professional environment, exchanges can quickly be limited.

In addition, the logistical organization of these training courses can be a challenge, especially if the company does not have the infrastructure or equipment necessary to host these sessions in good conditions.

And then there is the human aspect.

Some CEOs, especially in small structures or family businesses, do not always feel comfortable taking training under the supervision of their own teams.

This change in role can create discomfort, and push them to prefer a more neutral external environment.

Finally, because they are personalized, these courses can be expensive, especially if they require precise adjustments to meet the specific needs of the business.

On the other hand, more standard programs offered outside are sometimes more affordable.

External training for CEOs: advantages and disadvantages

As part of the management of authorizations and the development of skills, it may be relevant for a CEO to follow training outside his company.

Here is what these external training courses can bring, but also the limitations to consider before starting.

What external training can do for CEOs

By participating in non-corporate training, CEOs open themselves up to new professional worlds.

It is an opportunity for them to meet experts from all walks of life and to discuss various management issues, while developing their network.

In addition, the perspective of external stakeholders, which is both objective and new, makes it possible to identify market trends more clearly and to anticipate developments.

Finally, with practical workshops or interactive virtual classes, these more dynamic courses reinforce the involvement of participants.

This approach promotes better assimilation of content and realistic application of courses.

Specializing in the initial training of CEOs, as well as in their continuing education, the VISCONTI coaching center actively contributes to the training plan for CEOs.

We are constantly recruiting new partners, CEOs who want to share their skills and know-how with other entrepreneurs to enable them to find the keys to develop the value of their business.

Limits to take into account

However, taking outside training represents a significant cost.

Indeed, travel and accommodation expenses are often added to the registration fees, not to mention the loss of earnings related to the time of absence.

Another important point: some courses, which are too general, may not correspond precisely to the needs of the company's sector of activity or to its specific challenges.

It is therefore essential to choose the right external training program so that it is truly adapted to the organization's goals.

These are all elements that should not be overlooked by the training manager when selecting external training.

Criteria for choosing between internal and external training according to the context of the company

To make the best choice between internal training and external training provider, it is important to determine the specific needs of the company.

If the skills to be acquired are very technical or must meet specific standards, especially international ones, it is often preferable to use a specialized training organization.

These external stakeholders provide essential expertise to meet regulatory requirements.

On the other hand, when the training focuses on company-specific procedures or on skills retraining that are already well integrated by the majority of employees, internal training is often more appropriate.

It makes it possible to adapt training content as closely as possible to the needs of field teams, with concrete examples drawn from daily life.

So, before deciding between internal and external training, it is useful to take stock of several elements:

• the skills available internally
• The objectives of the training
• and of course, the budget.

A relevant choice will not only optimize the time and costs dedicated to training, but also to ensure its effectiveness.

What priority skills should CEOs target?

However, before even considering the modalities, it is important to choose the most appropriate training content to offer CEOs the best conditions for success in their leadership roles.

However, while having a solid technical background is often what makes it possible to reach a management position, once at the top of the ladder, it is no longer this knowledge that makes the difference.

Today, it is mainly human qualities — the famous “soft skills” — that allow leaders to maximize their potential.

Surveys on the subject are unanimous, from Harvard Business School to consulting firms specializing in leadership: the six most important assets for a leader are all about soft skills.

Here are the skills to be developed as a priority, whether as part of an internal training course or an external program:

• Emotional intelligence : it is THE key skill, because a good leader must know how to recognize his emotions, but also understand those of others. This ability promotes a healthy work environment, encourages team motivation, and helps to stay on track during difficult times.
• The ability to adapt : the world is changing rapidly, and so are businesses. An effective leader is someone who knows how to react without losing his bearings. Being agile means knowing how to adjust the way you deal with the unexpected, without being overwhelmed.
• Communication : knowing how to express yourself well, but also to listen well. A good manager knows how to transmit clear messages, show empathy, adapt his speech according to the interlocutor, and use reassuring non-verbal language. This is what makes the teams want to follow him.
• Inclusive leadership : promoting diversity and creating an environment in which everyone feels listened to and respected are essential nowadays. This is what fuels innovation and the wealth of ideas.
• Personal organization : knowing how to manage your time, priorities and daily tasks is essential. Without this, the risk of exhaustion — and of training the teams with you — is real. A well-organized leader is more serene and more effective.
• Resilience : difficulties are part of the job. What matters is the ability to bounce back, to remain lucid under pressure, to learn from failure and to keep moving forward. Cultivating this inner strength often involves working on yourself, an openness to learning and a desire to progress.

Effect on the return on investment of both approaches

Training your teams, whether internally or by calling on external stakeholders, is certainly a cost, but it is also a strategic choice that can have a direct impact on the performance and profitability of the company.

Here's what you need to know to measure the benefits of each type of training.

What is the ROI for the training of internal management teams?

Training your teams internally is not only about transmitting skills: it is a real growth opportunity for the company.

Indeed, according to a LinkedIn study, a very large majority of employees (more than 90%) feel more motivated to stay in a company that invests in their professional development.

And this commitment is bearing fruit, because in 2022, companies that focused on internal training saw their productivity increase by 20%.

This at the same time allows the companies concerned to gain in competitiveness.

Relying on the talents already present in the structure to train their colleagues and increase their skills also means saving money.

By making this choice, businesses can reduce their expenses by up to 30% by avoiding some costs associated with external recruitment.

In addition, by training their employees (including their CEOs) internally, organizations ensure that the knowledge transmitted is directly related to their real needs.

This promotes better ownership, while strengthening team loyalty.

In addition, when training builds on existing resources, it is often cheaper.

Finally, it is an effective way to develop skills without disrupting the organization too much.

External training for employees: what is the profitability?

When certain specific skills are lacking internally, calling on an external organization can be profitable.

It is a way to open the company to new practices, to be inspired by innovative methods, and to take a step back from your own habits.

According to an analysis published by the Harvard Business Review, devoting only 1% of its turnover to external training could generate up to 10% in additional profits.

This is due to a gain in motivation and a rapid increase in skills, whether for CEOs or other staff members.

Examples of situations where one type of training is preferred over the other

In which case should one approach or the other be preferred? It depends on several factors: your goals, the resources available, and above all, who the training is aimed at. Here are some concrete cases to help you make the right choice.

When should internal training be preferred

Internal training is often the best option when it comes to transmitting methods specific to the company: how homemade tools work, internal processes, or even integrating newcomers or changing jobs.

It is also very suitable for regular training, such as technical updates.

This type of training has a big advantage: the trainers come from within the company. They know perfectly the daily life of the teams, the concrete expectations of the field, and share the same corporate culture.

Result: it is often more efficient, more flexible to organize, and it costs less.

In the event of change or evolution, the training can be easily adapted and repeated if necessary.

Another strong point: learning between colleagues in a familiar environment often reinforces the commitment and cohesion of the group.

When to prefer external training

On the other hand, calling on an external organization or trainer makes perfect sense when you want to acquire skills that no one has yet mastered internally.

This is particularly useful in specialized, highly technical fields or areas linked to recent innovations.

An external speaker also brings a fresh perspective, varied methods, and expertise that can make a difference.

It is an ideal solution when training must involve several departments, because it guarantees a clear and consistent message for everyone, or when it concerns the development of executive skills, whether for the discovery of new technologies or new management practices.

Finally, if the training must be implemented quickly, or if it meets a specific and specific need, finding an available external expert often saves time.

Looking for a training organization specialized in supporting CEOs and managers, who can provide these professionals with a perspective that is both new and experienced?

Contact Visconti Partners and find out how our coaches can help them meet their leadership challenges and transform their governance.