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The Challenge
Founded in 1998, VMware is a leading provider of multi-cloud services offering network virtualization software and solutions ranging from application modernization to hybrid and virtual cloud networks. The $13.4B business is transitioning from a perpetual license model to a software as a service (SaaS) model. This shift continues to drive digital transformation across all major organizational functions—product, go-to-market, and operations.
The transition to SaaS is an enormous undertaking, and the L&D team knew they would need to broaden the skills of and invest in their leaders to reach the company’s ambitious business goals. VMware partnered with Abilitie to develop their senior-level leaders and redefine what it means to be a leader in their industry.
The Approach
VMware’s Learning and Development team launched the Leadership Skills Development Initiative (LSDI) in May of 2022 to help meet their overall business goal—becoming a trailblazer in the SaaS market—through leadership skills advancement.
“Implementing our learning strategy began with active listening,” said Benicia Stein, Global Leader, Enterprise Leadership Development for VMware. “Before designing the LSDI, we hosted multiple listening sessions with different functions — Senior VPs pulled leaders together to discuss and highlight each population’s needs. We also did a deep dive into employee engagement surveys and consumption data as well as a needs analysis across HR and Talent Acquisition.”
Abilitie worked closely with VMware to create an experience that would allow VMware’s senior leaders to practice enterprise-level strategy, an integral skill for the company’s continued transformation. Abilite’s Executive Challenge simulation emerged as the best hands-on practice tool to achieve this goal.
In the Executive Challenge simulation, VMware senior leaders (Senior Directors and VPs) become members of a C-Suite team and compete to build the most profitable and sustainable company in realistic gameplay. Over six rounds of play, teams are challenged to make decisions with imperfect information that models real-life challenges. Collaboration and communication are essential if the teams’ businesses are to survive. Each team then has the opportunity to pitch their company to a Board of Directors composed of VMware senior executives.
Abilitie’s Executive Challenge also addressed three core development opportunities:
- Skill-building: The true-to-life scenarios that participants face within the simulation range from effectively improving the design of their organization to safe risk-taking and customer empathy skills.
- Connection: Executive Challenge provided senior leaders with opportunities to build their internal networks and give them access to VMware executives for learning and collaboration in new and meaningful ways.
- Professional growth: The LDSI also includes 1:1 coaching and feedback from VMware team members, peers, and partners. This assists employees in identifying their leadership strengths, weaknesses, areas of opportunities, and hidden talents, going beyond the classroom by creating a long-term action plan to improve leadership behaviors.
The Outcome
The Leadership Skills Development Initiative has had a resounding effect on VMware and its transition to a SaaS organization. VMware has witnessed significantly improved Senior Director engagement levels. The impact can be seen through other results such as:
- In Q4 2023, VMware’s subscription and SaaS revenue (a key metric of their transition to a SaaS business model) was $1.18 billion—a 36% increase year-over-year
- There has been an estimated $115M in avoided costs by retaining senior leaders
- 74% of survey respondents reported improved business decision-making skills
- From June 2022 to April 2023, VMware achieved a 97% retention of the Senior Director population that participated in the program
The impact of the LSDI has been remarkable,” said Stein. “We have witnessed a significant improvement in Senior Director participation and engagement levels, which has had a cascading effect throughout our entire company. The positive influence generated by their active involvement has permeated our organization, fueling a culture of learning that thrives at every level.”
