In November 2024, INSEAD and Bertelsmann’s learning initiative won the Oragnisational Change award at the MERIT Summit & Awards in Dubai.

How did the initial collaboration between INSEAD and Bertelsmann emerge, and what specific challenges in organisational development prompted Bertelsmann to seek expertise in creating the PFO programme?

The collaboration between INSEAD and Bertelsmann began at a critical juncture for Bertelsmann. At the dawn of the Internet revolution, the media landscape was shifting dramatically due to the rapid pace of digitalisation. Bertelsmann, which had long been a dominant player in traditional media sectors like music, publishing, and television, recognised that survival – and success – depended on its ability to adapt.

Faced with this challenge, Bertelsmann’s leadership looked back on the company’s history and identified two constants that had driven its reinvention time and time again: creativity and entrepreneurship.

However, these values needed to be institutionalised and embedded into leadership at every level to ensure the company could prepare for future opportunities. That’s where INSEAD came in. Bertelsmann University, under the leadership of its founding team, partnered with INSEAD to develop a bespoke programme that combined entrepreneurial thinking with sound business execution. This collaboration gave birth to the Preparing for Opportunities (PFO) programme, designed to develop entrepreneurial leaders who could steer the company through transformative change.

Over the 25-year journey of the PFO programme, can you describe the most significant adaptations that ensured its continued relevance in response to changing technological and business demands?

The longevity and success of the PFO programme lie in its ability to evolve while staying true to its core purpose. Over the years, the programme has adapted to reflect changing business landscapes and emerging trends.

One major shift was in its audience. Initially, PFO was designed for senior managers, but as the need arose to develop the next generation of leaders, the focus shifted to high-potential individuals. This change enabled Bertelsmann to cultivate a pipeline of entrepreneurial leaders capable of driving the company forward.

The programme’s content has also evolved. For instance, after the 2008 financial crisis, financial rigour became a greater priority, and pre-programme finance modules were introduced. Today, topics such as digital transformation and the “New Rules of the Game in a Digital World” provided content for participants to reflect on the realities of a rapidly changing business world.

At the same time, the learning experience itself has become more dynamic. Technology has played a significant role, from the introduction of computer-based simulations in the early 2000s to today’s VR-enhanced case studies, like the “Mission to Mars.”

A case-study co-developed by the PFO Programme Director, Professor Charles Galunic. Perhaps one of the most unique additions has been the outdoor leadership activities, where participants are pushed out of their comfort zones to build resilience and teamwork skills. These experiences have become legendary within Bertelsmann and add an unforgettable, transformative element to the programme.

This ongoing ability to innovate – while staying grounded in the principles of strategy, leadership, and value creation – has kept PFO relevant and impactful for over two decades.

The case study mentions three central pillars: strategic innovation, leading change, and measuring implementation value. Could you elaborate on how these pillars have been practically operationalised in the programme?

The three pillars – strategic innovation, leading change, and measuring implementation value – are the foundation of the PFO programme and guide its structure and objectives.

Strategic innovation focuses on helping participants identify new opportunities and develop innovative business models. Tools like Blue Ocean Strategy, pioneered by INSEAD faculty, have been instrumental in teaching participants how to identify new markets and create unique value propositions. This pillar encourages creative, entrepreneurial thinking that challenges the status quo.

The second pillar, leading change, equips participants with the leadership skills necessary to turn innovative ideas into reality. The programme blends classroom sessions with experiential learning to foster practical leadership capabilities. For example, the outdoor activities in the south of France are specifically designed to build teamwork, resilience, and self-awareness – skills that are critical for managing change effectively.

The third pillar, measuring implementation value, ensures that participants understand how to connect strategy to measurable outcomes.

By teaching concepts like value creation, financial analysis, and performance measurement, PFO gives leaders the tools to assess the impact of their initiatives and make decisions based on data and results.

Together, these pillars provide participants with a holistic understanding of how to innovate, lead change, and deliver results – ensuring they return to Bertelsmann and their associated companies ready to drive meaningful transformation.

With nearly 1,500 participants having gone through the programme across 49 deliveries, what key metrics can you share that demonstrate the programme’s impact on developing entrepreneurial leadership within Bertelsmann?

While formal tracking of participants’ career trajectories is limited due to data protection rules, the impact of the PFO programme is evident in many ways. For one, it remains the most highly rated and sought-after programme at Bertelsmann University, with outstanding Net Promoter Scores year after year. Its enduring popularity speaks to the value participants derive from the experience.

On a broader level, the programme has been instrumental in developing Bertelsmann’s leadership pipeline.

Today, almost every top executive at Bertelsmann is a PFO alumnus. While PFO participation isn’t an explicit requirement for promotion, it’s clear that the skills and insights gained through the programme have prepared leaders to take on greater responsibilities and drive the company’s success.

Perhaps the most compelling evidence lies in the stories of individual participants. Over the years, PFO alumni have transformed declining businesses, launched entirely new divisions, and pioneered innovative strategies. These success stories – ranging from turning around logistics operations to creating “Blue Oceans” in markets like online education – showcase how PFO instils the entrepreneurial mindset and leadership skills needed to thrive in a fast-changing environment.

The cultural impact of the programme is equally significant. Alumni return with renewed self-confidence, a broader strategic perspective, and a collaborative approach to leadership. They inspire their teams to embrace change and innovation, creating a ripple effect that benefits the entire organisation.

Reflecting on the programme’s longevity and success, what critical insights have you gained about corporate learning, leadership development, and the intersection of academic research with corporate strategy that might be valuable for other organisations?

Reflecting on the success of the PFO programme, one key insight is the power of long-term partnerships between academia and industry. The collaboration between INSEAD and Bertelsmann demonstrates how academic research, when applied in a practical and customised manner, can drive real change in organisations. By staying close to Bertelsmann’s evolving needs, INSEAD has ensured that the programme remains both relevant and impactful.

Another important lesson is the value of experiential learning. Leadership development is about more than concepts and theories; it’s about fostering self-awareness, resilience, and a willingness to take risks. The outdoor leadership activities, for example, provide participants with transformative experiences that challenge them physically and emotionally – preparing them to face challenges with confidence.

The programme also highlights the importance of continuously adapting to change. The PFO curriculum has evolved over the years to incorporate emerging trends like digital transformation and virtual learning, ensuring that participants are equipped to tackle current and future challenges.

Finally, the PFO experience demonstrates that leadership is fundamentally about people. Developing entrepreneurial leaders requires a focus on building collaborative, resilient teams and empowering individuals to drive change. By combining strategic innovation with a human-centric approach to leadership, organisations can foster a culture of creativity, entrepreneurship, and continuous transformation.

These insights are invaluable for any organisation seeking to develop its leadership talent and build a culture that embraces change and innovation.

Do you have an initiative in organisational, leadership, and people development worth sharing? The next edition of the MERIT Summit & Awards is coming up soon on 5-6 June 2025 in Lyon. Submit your application until 7 March – shortlisted initiatives will be invited to present at the upcoming summit in Lyon.