Training Efficiency: Optimizing Learning Technology

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1 Ideas & Insights frm 2008 Training Efficiency Masters Series Survey Results Training Efficiency: Optimizing Learning Technlgy trainingefficiency.cm

2 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm TABLE OF CONTENTS SURVEY HIGHLIGHTS 3 SURVEY ANALYSIS: WHAT IMPACTS EFFICIENCY GAINS? 5 ABOUT THE SURVEY RESPONDENTS 11 EXPERTUS & TRAINING INDUSTRY, INC. 15 trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

3 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm SURVEY HIGHLIGHTS In May 2008, Training Industry, Inc. and Expertus partnered t cnduct the secnd f fur surveys in the Training Efficiency Masters Series. We asked crprate training prfessinals abut the efficiency gains they have realized frm their LMS and abut several ther factrs that we expected t have an impact n efficiency. Respndents als shared qualitative best practices and challenges in ptimizing LMS use. The results can be used by readers t identify areas f imprvement and achieve greater efficiency gains themselves. The survey was cmpleted by 53 training leaders whse rganizatins varied in the time since they implemented their LMS, their initial investments in their LMS, and the number f learners their LMS supprts. Mst respndents were managers r administratrs f an enterprise-wide LMS. KEY FINDINGS Finding #1: Cmpliance Readiness An LMS has the strngest impact n being cmpliance ready. Other majr LMS efficiency gains result frm learners finding and registering fr training mre easily and reducing administratin csts. An LMS has the weakest impact n emplyee prductivity, which is als the least well understd area f expected LMS impact. Finding #2: Cntent Management The LMS functinality which generates the strngest efficiency gain is cntent management, fllwed clsely by rster management and scheduling. When asked which ne area had trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

4 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm the biggest impact, cntent management was the verwhelming chice. Finding #3: Outsurced Administratin The lnger a cmpany has an LMS, the higher their efficiency gains are in nearly all areas. Cmpanies that utsurce administratin t an external partner and integrate their LMS with ther systems have strnger efficiency gains than thse wh d nt. Finding #4: Duratin f Implementatin The lnger a cmpany has an LMS, the higher their efficiency gains are in nearly all areas. After the third year f implementatin, cmpanies experience the mst cnsistent efficiency gains. Finding #5: Reprting Capabilities The biggest challenges in making the mst frm an LMS are inflexible reprting capabilities and a lack f integratin between the LMS and ther systems. trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

5 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm SURVEY ANALYSIS: WHAT IMPACTS EFFICIENCY GAINS A. Areas f Greatest Impact n Efficiency The primary purpse f this study is t understand the impact f LMS use n efficiency. As such, a great deal f fcus is centered n the answer t the fllwing questin: Hw much impact has yur LMS had in the fllwing areas? The strngest knwn LMS impact areas were being mre cmpliance ready and learners finding and registering fr training mre easily. Amng thse wh reprted a knwn LMS impact, the strngest impact areas were being mre cmpliance ready, learners finding and registering fr training mre easily and reduced administratin csts. Ease in Finding/Registering fr Training Greater Cmpliance Readiness Reduced Administratin Csts Imprved Operatinal Efficiency Mre Actinable Learning Metrics Reduced Time t Find Infrmatin Optimized the Training Catalg Increased Learning Effectiveness Increased Emplyee Prductivity Areas f LMS Efficiency Gains with Strngest Impact 13% 29% 35% 33% 33% 49% 46% 43% 41% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Respndent Number (N) = 38 [Nte: This excludes respndents wh implemented their LMS less than ne year ag.] Nte: All hrizntal bar charts in this reprt represent the percentage f respndents. Interestingly, the lw percentage f respndents wh rated increased emplyee prductivity as having a strng impact may have had t d with many peple simply nt knwing r being able t measure the impact n emplyee prductivity. In fact, the highest percentages f respndents rated this area as unknwn impact (25%). B. LMS Functinalities with the Strngest Impact and Hw t Optimize Them T find ut which part f the LMS had the greatest impact, we asked this questin: What impact have the fllwing LMS functinalities had n the efficiency f yur training rganizatin? trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

6 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm Amng thse wh used the LMS functinalities, the functinality with the strngest impact n verall efficiency gains was cntent management, fllwed clsely by rster management and scheduling. LMS Functinalities with Strngest Impact n Efficiency Gains Cntent Management Rster Management Scheduling Registratin Reprting Assessments Catalg Management Resurce Management Accunting Curse Material Fulfillment Vendr Management 3% 10% 10% 15% 22% 29% 35% 35% 45% 45% 51% 0% 10% 20% 30% 40% 50% 60% 33% f the respndents indicate that cntent management has the #1 impact n LMS efficiency gains. This is twice that f any ther functinality. N = 40 [Nte: This excludes respndents wh implemented their LMS less than ne year ag.] T find ut the strngest LMS functinalities in a different way, we asked respndents this fllw-up questin: Which f the abve functinalities has had the biggest impact n efficiency gains in yur training rganizatin? Fr the mst part, the same functinalities appear, in rughly the same rder, as having the greatest impact n efficiency gains. LMS Functinalities with the # 1 Impact n Efficiency Gains Cntent Management 33% Rster Management 17% Registratin 17% Scheduling 14% Assessments 11% Catalg Management 6% Reprting 3% 0% 5% 10% 15% 20% 25% 30% 35% Hwever, there are a few ntewrthy differences. In the chart abve, ntice that cntent management was chsen by twice as many respndents as any ther functinality. Als ntice that nly 3% f the respndents selected reprting as the functinality that generated the biggest (r #1) impact n efficiency gains, even thugh 35% rated it as having a strng impact. This may be due t widespread frustratin with the trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

7 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm flexibility f LMS reprting capabilities, which is listed as a tp challenges under sectin F (Challenges) f this reprt. Belw are the key themes frm respndent answers t this questin: Fr the ne LMS functinality that yu chse in the questin abve that had the biggest impact n efficiency gains, please describe what specific prcesses r practices yu used t ptimize this functinality. Cntent Management: Use web technlgy t expand distributin f all elearning curses. Create cntent with departments fr specific emplyee grups and/r specific learning bjectives. Outsurce cntent management t a third party with hsting capability. Registratin: Streamline registratin by clearly cmmunicating what training is mandatry, pre-apprved, and budgeted, and when learners need t take it. Allw students t self-enrll; this frees up cnsiderable administrative time. Scheduling: Custmize the LMS rm-bking feature, min/max attendees, etc. t meet administrative and student needs. Cntract with an external partner fr administrative functins. Catalg Management: Uplad catalgs f external vendrs, infrmatin n curses and price lists. Use the catalg as list and access pint fr all custmer training resurces - live & recrded. trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

8 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm C) General Practices t Optimize LMS Use: Expertus identified eleven general LMS best practices that we asked respndents t select frm: Which f the fllwing practices has yur rganizatin used t ptimize the use f yur LMS? Study results shw that cmpanies wh integrated their LMS with ther systems and leveraged external partners fr administratin had much higher efficiency gains than thse wh did nt. The tp three mst frequently used practices are: centralize administratin, mdify prcesses t wrk with the LMS, and define reprts and metrics. Mst Frequently Used Practices t Optimize LMS Use Planning the Implementatin: Centralize administratin Planning the Implementatin: Mdify prcesses t wrk with the LMS Planning the Implementatin: Define reprts & metrics Planning the Implementatin: Get executive buy-in fr enfrcement Planning the Implementatin: Custmize fr usability Leveraging External Partners/Vendrs: Outsurce technlgy supprt Using Tls & Integratin: Use LCMS t huse/distribute cntent Using Tls & Integratin: Tntegrate systems (e.g., LCMS, HR systems) Planning the Implementatin: Invest in architecture blueprint Leveraging External Partners/Vendrs: Outsurce administratin Using Tls & Integratin: Cnslidating LMS' 10% 14% 22% 20% 31% 35% 45% 49% 59% 59% 57% 0% 10% 20% 30% 40% 50% 60% 70% N = 51 Study results shw that cmpanies which integrated their LMS with ther systems and leveraged external partners fr administratin had much higher efficiency gains than thse wh did nt. A related survey finding shwed that cmpanies with any level f integratin with ther learning r HR systems (frm real-time t less ften than weekly frequencies) had greater verall efficiency gains than cmpanies which had n integratin at all. As expected, the impact area mst affected by whether r nt a cmpany integrates its LMS with ther systems is mre actinable learning metrics. This makes sense, cnsidering that metrics related t learning utcmes are ften dependent upn access t ther HR and perfrmance data cmbined with LMS data. Access t multiple data surces helps training leaders make better decisins abut which training curses are making a difference. trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

9 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm D) Time t Impact D rganizatins have mre efficiency gains with their LMS ver time? Generally, yes. The data shws that the mre time since the full implementatin, the strnger the impact n efficiency gains. Hwever, in the first few years (less than three years) efficiency gains are nt as cnsistently psitive as they are after three years. It seems that there is a learning curve r time perid in which emplyees learn hw t best use the LMS befre their full impact n efficiency is realized. Of all areas f impact, the area which shws the greatest imprvement ver time is cmpliance readiness. Peple wh are nt seeing an early impact in this area shuld take heart; imprvement shuld cme ver time. B. Output and Vlume Metrics E) Initial LMS Investment Levels There is little t n relatinship between the amunt invested per learner and verall efficiency gains. One cannt expect mre efficiency gains based n a higher-priced LMS; the cmbined factrs f time and bth general and functinality-specific practices may have greater influence ver the kinds f results yu can expect. T see hw much respndents are spending n their LMS fr hw many learners, see Abut the Survey Respndents. F) Challenges T understand why sme respndents were able t get mre efficiency gains than thers, we asked this questin: Please describe the biggest challenges r bstacles yur training rganizatin faces in using LMS functinalities t increase efficiency. The mst frequent challenges are lack f integratin and inflexible reprting capabilities. Interestingly, these tw challenges were als reprted amng the biggest prblems in learning measurement in an April 2007 Expertus and Training Industry, Inc study. Withut effective reprting and system integratin, it is difficult t prvide internal stakehlders with meaningful metrics abut the impact f training n the business. Instead, training departments must rely n vlume and activity-based metrics (e.g., curses, trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

10 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm hurs, registratins r test scres). The April 2007 study als fund that mre survey respndents relied n internallydevelped sftware r manually cmpiled reprts fr learning metrics than LMS-generated reprts. This is a further indicatin that the reprting functinality was inadequate. Belw are key challenge areas that respndents had in getting the mst frm their LMS: Lack f Integratin With HR and accunting systems Lack f standards frm system t system Inflexible Reprting Functinality: Inability t create reprt templates that allw cllectin f learning metrics t benchmark with ASTD Limited, clunky, and inflexible reprting Lack f User Acceptance & Respnsibility: Sme want the training grup t d all the wrk rather than accepting respnsibility fr their learning Need t create and use learning plans Slw, Old-Schl Technlgy: LMS technlgy can be described as the big, lumbering dinsaur in the middle f a wrld mre suited t small, nimble animals. As such, Generatin Y r millenials are nt jazzed by it. LMS is nt suitable fr blended learning r ther innvative learning slutins Need t dig t get t things Lack f Resurces: Insufficient develpment resurces fr creating cntent r managing cntent Organizatin lacks emphasis n cntinuus learning, resulting in inadequate staff t d mre with the LMS Adapting Prcesses t LMS: Difficult t adapt current prcesses t the LMS features and functinality Lack f Cnslidatin with Other LMS' trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

11 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm Having multiple LMS makes sme prcesses like scheduling very cmplicated The prcess f cnslidating t ne LMS requires a lt f time, effrt, and supprt G) Other Learning Technlgies T understand the relative impact f different learning technlgies, we asked respndents this questin: Fr each learning technlgy which yur training rganizatin has used fr at least a year, please indicate the impact each has had n efficiency gains. The tp three learning technlgies with the strngest impact n efficiency are delivery tls, LMS, and cntent develpment/authring tls. Learning Technlgies with the Strngest Impact n Efficiency Gains Delivery Tls 47% LMS Cntent Develpment/Authring Tls 46% 46% LCMS fr Delivering Cntent Separate frm LMS Assessment & Survey Tls 35% 34% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% ABOUT THE SURVEY RESPONDENTS N = 39 The fllwing charts describe several characteristics f the survey respndents. A) LMS Rle and Infrastructure The vast majrity f respndents were managers r administratrs f a single enterprise-wide LMS. trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

12 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm Respndents' LMS Rles Manager f Enterprise-wide LMS Administratr f Enterprise-wide LMS User f Enterprise-wide LMS Administratr f Departmental LMS Manager f Departmental LMS User f Departmental LMS 12% 8% 6% 4% 25% 46% 0% 10% 20% 30% 40% 50% N = 53 Respndents' LMS Infrastructure On average, respndents reprted an initial investment f $31 per learner fr their LMS. Only One Enterprise-Wide LMS 73% Multiple Departmental LMS' 12% One Enterprise-Wide LMS Plus Dept. LMS' 10% One Departmental LMS 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% N = 53 B) Initial LMS Investments and Learners Supprted LMS respndents reprted an average initial investment f abut $867,000. The average number f learners supprted is apprximately 28,000 with an average investment f abut $31/learner. Distributin f Initial LMS Investment vs. Learners Supprted $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0-10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 N = 30 trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

13 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm C) Mst Frequently Used LMS Functinalities The tp five mst frequently used LMS functinalities are als the tp five functinalities with the strngest impact n efficiency. ` Mst Frequently Used LMS Functinalities Scheduling Rster Management Registratin Cntent Management Reprting Catalg Management Resurce Management Assessments Vendr Management Accunting Curse Material Fulfillment 100% 98% 98% 90% 90% 88% 85% 85% 78% 76% 76% 0% 20% 40% 60% 80% 100% N = 53 D) Level f Integratin with Other Systems The mst cmmn state f integratin with ther systems is n integratin at all. Hwever, when there was integratin, it was mst ften dne n a daily basis. Frequency f Data Integratin Updates N Integratin 40% Daily 23% Between Daily and Weekly Real-time Integratin Weekly r Less 13% 13% 11% 0% 10% 20% 30% 40% 50% N = 53 E) Time since Full LMS Implementatin Respndents were evenly distributed acrss the time spectrum since implementatin, which the survey defined as fr bth the internal training department and learner use. In many f the impact-related questins in the prir sectin, Survey Analysis: trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

14 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm What Impacts Efficiency Gains? the grup f respndents wh were within their first year f LMS implementatin was excluded. Time since Respndents' Full LMS Implementatins 25% 20% 15% 23% 15% 23% 17% 19% 10% 5% 4% 0% < 1 Year 1 < X < 2 Years 2 < X < 3 Years 3 < X < 4 Years 4 < X < 5 Years 5 + Years N = 53 F) Use f Other Learning Technlgies Besides the respndents wh use LMS, they typically used three ther learning technlgies: cntent develpment/authring tls, assessment and survey tls, and delivery tls. LCMS that delivered cntent separately frm the LMS were used by abut half f the respndents, which may be due t the use f the cntent management functinality within the LMS by 90% f all respndents. Respndents' Use f Other Technlgies Cntent Develpment & Authring Tls 88% Assessment and Survey Tls 84% Delivery Tls 83% LCMS (Delivers Cntent Separately frm LMS) 53% 0% 20% 40% 60% 80% 100% N = 51 trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

15 Survey Results: Training Efficiency: Optimizing Learning Technlgy Ideas & Insights frm ABOUT EXPERTUS INC. ABOUT TRAINING INDUSTRY, INC. Expertus prvides a variety f training utsurcing services fr technlgy, administratin, prgram management, and strategic initiatives. Frm implementing and managing LMS and learningrelated technlgies, t supprting majr custmer training initiatives, t seamlessly handling all aspects f training administratin, Expertus has helped majr cmpanies such as NetApp, Cisc, ADP, EMC, Schlumberger, and Hyperin achieve efficiencies in crprate learning and develpment. Expertus is headquartered in the Silicn Valley and has ffices in Lndn, New Yrk, and Chennai, India. Its staff f highly trained business and technical cnsultants, cntent develpers, and prcess specialists deliver t clients the experience, skills, and knwledge that have an immediate impact n learning initiatives. Fr mre infrmatin, g t r cntact Mike Murrell at r Training Industry, Inc. is an bjective and trusted expert n the marketplace fr learning. Its missin is t make the marketplace mre efficient thrugh the wrld s largest nline cmmunity f training cmmunities and thrugh services such as Training Industry Cnferences, Training Industry Quarterly Ezine, Training Industry Webinars and Training Industry Research. Thrugh these channels, Training Industry, Inc. prvides news, articles, strategies, practices, and prcesses. Training Industry, Inc. is headquartered in Cary, Nrth Carlina and serves spnsrs and clients thrughut the wrld. Fr mre infrmatin abut these services r t inquire abut this research r cnducting yur wn research, g t r cntact Tracy Hllister at r ABOUT THIS RESEARCH Cpyright 2008 Expertus Inc and Training Industry, Inc. All rights reserved. N materials frm this study can be duplicated, cpied, re-published, r re-used withut written permissin frm Expertus r Training Industry, Inc. The infrmatin and frecasts cntained in this reprt reflect the research and studied pinins f Expertus and Training Industry analysts. trainingefficiency.cm Expertus Inc. & Training Industry, Inc. Nt fr distributin withut exclusive permissin

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