Yale Case. By: Kalil Diaz / A. J. Wasserstein
This Yale case examines why and how CEOs of EtA companies should design and implement Training and Development (T&D) programs as a key lever for growth, professionalization, and long-term value creation.
1/ Why T&D Matters:
While T&D may not seem urgent during the early stages of post-acquisition management (when CEOs are focused on operations, customers, and capital), its long-term impact is crucial. T&D is part of the infrastructure that allows small, often chaotic businesses to scale, professionalize, and institutionalize.
T&D helps improve operational execution, customer service, financial performance, and internal culture. It signals to employees that the company values their growth and invests in their development, improving engagement, productivity, and retention.
Externally, T&D programs help position the company positively in the eyes of investors, lenders, customers, and even acquisition targets. They can also help mitigate legal risks (e.g., OSHA, workplace behavior lawsuits) and enhance the company’s reputation in the industry.
2/ The 4 core types of T&D:
- Compliance training: Covers legally required topics such as workplace safety, harassment prevention, and ethical conduct. Typically generic and often outsourced.
- Technical training: Focuses on the specific operational processes of the company (e.g., ERP systems, onboarding processes, sales methods). Often blends internal expertise with some external resources.
- Developmental training: Aims to build leadership, management, and personal development skills. Topics include how to be a first-time manager, time management, and financial literacy. This can include 1:1 executive coaching for high-potential employees.
- Company-centric training: The most strategic and unique layer. Includes company values, history, financial performance, customer service philosophy, and culture. Must be developed and delivered internally by leadership. It shapes the company’s identity and helps create alignment.
3/ Implementation framework: The 5 Ws of T&D
The case recommends using a “Who, What, When, Where, and Why” framework when building a T&D program:
- Who: Define both the target audience (which employee groups) and the trainers (internal leaders or external providers).
- What: Outline the specific training modules, drawing from the four T&D pillars.
- When: Establish a regular cadence throughout the year to avoid “lumpy” training that gets crammed into a single quarter.
- Where: Choose the appropriate delivery method for each module: live in-person, live online, asynchronous, or blended.
- Why: Articulate clear objectives and outcomes for each training segment. Tie the content to business goals, skill gaps, and cultural values.
4/ Practical tips for CEOs:
- Start small and iterate. Trying to roll out a full-scale program at once is risky.
- Set measurable goals, such as target training hours per employee per year.
- Use simple tools (like Excel) for tracking, or adopt a T&D management system as the program scales.
- Collect feedback from both participants and instructors after each session.
- Decide early which content to develop internally (company-specific topics) and what to outsource (compliance and generic modules).
- Make training fun and celebratory when possible. Mock graduations or team book clubs can boost engagement.
- Consider executive education for senior leaders as a high-impact investment.
T&D should be seen as a strategic investment that strengthens the company’s people, culture, and infrastructure over time. It plays an important role in creating a scalable, professionalized organization. Though the payback may not be immediate or easily quantifiable, it builds a foundation for future growth, employee satisfaction, customer retention, and investor confidence.
The authors encourage ETA CEOs to embrace T&D as part of their leadership responsibility, not as an afterthought or HR task. It’s an essential lever for shaping company performance and long-term value.
Read the full case in: https://som.yale.edu/sites/default/files/2025-06/Exploring%20How%20to%20Build%20a%20Training%20and%20Development%20Program%20in%20a%20Search%20Fund-acquired%20Business.pdf
