Get the Facts. Learning and Development Budgets, Staffing, and Trends for 2009. Josh Bersin. May, 2009



Similar documents
Where to Focus your Talent Management Strategies: The Top 22 Processes Which Drive Business Impact

Talent Management: Benchmarks, Trends, & Best Practices

The Talent Management Framework

2009 Talent Management Factbook

Research Bulletin 2007

Owning the Talent Pipeline: How Unified Platforms are Helping Companies Acquire, Retain and Manage Talent

Frameworks and Maturity Models

The relatively recent combination of

ICE 2016 Tracks & Subcategories

BigData in HR. How to build a world-class Talent Analytics function. Josh Bersin Principal, Deloitte Consulting LLP May, 2013

Recruiting Recovery Finding Hidden Budget Dollars in Optimized Recruiting Practices

Current learning trends in Europe and the United States

People in the Cloud: Trends in Human Capital Management. May 8, 2013

LEARNING SOLUTION GAIN THE BUSINESS ADVANTAGE IMPROVE PEOPLE PERFORMANCE

Explore the Possibilities

Using Virtual Environments for Leadership Development and Training

Hitachi Consulting Growing to $1 Billion Organization Leveraging the Power of the Oracle Cloud. March 27, Better

Talent & Organization. Change Management. Driving successful change and creating a more agile organization

The Business Case for Performance Management Systems

MANAGING THE EMPLOYEE LIFECYCLE

A discussion of information integration solutions November Deploying a Center of Excellence for data integration.

Comparing Adoption of Rapid e-learning Development Tools by Key U.S. Industries

Department of Human Resources

Building Your Strategic Business Case for HR Technology. Speaker: Kristie Evans Managing Principal HR Project Manager PM Instructor

CERTIFICATIONS IN HUMAN RESOURCE MANAGEMENT PROFESSIONAL HRMP EXAM CONTENT OUTLINE

High-Impact Succession Management

UNC Leadership Survey 2014: How to Accelerate Leadership Development

PMO Starter Kit. White Paper

Today s webcast will begin shortly.

Solutions overview. Inspiring talent management. Solutions insight. Inspiring talent management

The Role of e-learning in e-government Implementation and Adoption

Training Analytics Market Analysis:

Supply Chain Talent: The Missing Link?

Research Bulletin 2008

The Business Benefits of e-learning in High-Growth Companies. Chris Howard

Develop the skills, competencies, knowledge, and job skills of your employees to improve revenue per employee, retention, & engagement.

Convergence of Age, Talent & Technology for Employers' Future Planning

Accenture Human Capital Management Solutions. Transforming people and process to achieve high performance

Manager Development Solutions

BUILDING A SUCCESSFUL BUSINESS CASE FOR TALENT MANAGEMENT TECHNOLOGY By Kelly McCombs and Tim Welsh, AON Hewitt

How Smaller Organizations Can Use Talent Management to Accelerate Organizational Growth and Productivity

Talent Management: Why It s Critical for Business Success

Enterprise Social Software

G&A Onboarding. G&A Partners Human Capital Solutions

Succession planning: What is the cost of doing it poorly or not at all?

The Value of Tuition Assistance

PeopleSoft Enterprise Learning Management

SkillSoft Services. Achieve Success with SkillSoft Services. Overview

HR Transformation Update. HR Community Town Hall June 18, 2013

Social Media Specialized Studies

Talent DNA that drives your business

The Convergence of Learning and Performance Management

Addressing HIT Worker Shortages Through Operational Excellence in Workforce Planning

HR NAV + Training & Development

Measuring your most important Asset: Human Capital

Career Management. Making It Work for Employees and Employers

Strategic Employee Onboarding: First Impressions Are Everything

A Field Guide to Learning Management Systems (LMS)

Whitepaper Enable Talent Management Through Fusion

HR Technology Strategies that Work in Healthcare. Background

Professional Services Organizations (PSO) Need Professional Services Automation (PSA)

Debunking 4 Myths in Talent Management

KQED Creating a Culture of Innovation through Operational Alignment

The Future of HCM Technology Wim Valstar, SAP SuccessFactors

Speaker. Joni Pulido-Ferrier Value Advisor Expert HR Line of Business Value Engineering Australia, Pacific Japan, SAP

HR Systems Survey

Why Using a Learning Management System Alone May Miss the Learning Curve. ProEd. Five Guidelines for Improving Your Corporate Learning Outcomes

WHITE PAPER. Is Your Learning Management System Leaving Your Users Dazed and Confused?

Talent Management Leadership in Professional Services Firms

10 Steps Process to your LMS

Course Author: Dr. Monica Belcourt, School of Human Resource Management, York University; Ron Alexandrowich and Mark Podolsky

Using Technologies to Onboard New Hires

Enabling HR service delivery

Building Blocks of an E-Learning Infrastructure

Building the Borderless and Agile Workplace

SAP Thought Leadership Paper Human Capital Management. Accelerate Performance in Human Resources Data-Driven Strategies for Measurable Improvement

White Paper. Executing Organizational. Strategy: Achieving. Success through Talent. Management

CERIDIAN TRAINING & EMPLOYEE DEVELOPMENT PROGRAMS

Change is happening: Is your workforce ready? Many power and utilities companies are not, according to a recent PwC survey

speexx empowering communication LT-Innovate Summit 2015 Buyers Challenge

Survey Results: Delivering Virtual Instructor-Led Training (VILT)

PI WorldWIde recruitment and retention trends survey Q2 2015

9Lenses: Human Resources Suite

Stop guessing and start making smarter decisions about your workforce INCREASE YOUR TALENT IQ CORNERSTONE INSIGHTS

Collaborative E-Learning Systems

CEDARCRESTONE HR SYSTEMS SURVEY HIGHLIGHTS FOCUSING ON BI/ANALYTICS

Department of Human Resources

Oracle Cloud: Oracle HCM Cloud Service Update. Chris Leone Senior Vice President HCM Cloud Product Development

Making HR Strategic: Integrated Human Capital Management Holds the Key

DigitalThink: The Corporate E-Learning Solution

Analysis of the Global Learning Management Systems Market Traditional Dichotomy Between Walled Garden and Open-source Products Gives Way to Middle

Ready, Set, Go! A Game Plan for Talent Management in the Midmarket

Does this sound familiar: I ve done my due diligence. Why is our LMS more pain than gain?

Oracle Taleo Enterprise Cloud Service. Talent Intelligence for Employee Insight

HR Professionals Building Human Capital

PeopleSoft and Oracle Cloud Practical Solutions. Marc Weintraub Senior Director PeopleSoft October 2014

Our approach for an organization s quick enablement towards Oracle s Talent Management strategy

H4 Tackling the Challenges of Implementing Emerging HR Technologies

Perfecting the Formula for an Exceptional Customer Experience. an MHI Global webinar with TrainingIndustry.com

uman Resources nd Training Program and Course Guide

Transcription:

Get the Facts Learning and Development Budgets, Staffing, and Trends for 2009 Josh Bersin May, 2009 Copyright 2009 Bersin & Associates. All rights reserved.

About Us Who We Are Industry s primary research firm focused on What Works in enterprise learning and talent management Research Areas Enterprise Learning Leadership Development Performance Management Career and Succession Management Workforce Planning Content Development Strategic HCM Applications Offerings In-Depth Studies and Reports Research Memberships Workshops Benchmarking Advisory Consulting Copyright 2009 Bersin & Associates. All rights reserved. Page 2

Research for this Presentation Annual study of L&D spending, activity, and trends Survey, phone calls, interviews, validated data 981 respondents, North America www.bersin.com/factbook Healthcare, Financial Services Learning Factbooks also available Copyright 2009 Bersin & Associates. All rights reserved. Page 3

Agenda Business and Talent Trends L&D Spending and Program Allocation E-Learning and Informal Learning Learning Technologies and Tools New Disciplines of the Modern Learning Organization Copyright 2009 Bersin & Associates. All rights reserved. Page 4

Top Business Challenges Tremendous cost-cutting and reduction in growth targets What Are Your Organization s Top Business Challenges for 2009? Financial pressure to cut costs 36% 61% +2x Severe business downturn 11% 37% +3x Competitive threats 24% 24% Declining margins 8% 20% +2.5x Diminished access to capital 9% 13% New top management team 12% 15% Launching new products and services 12% 15% Global expansion 11% 11% Acquisition or mergers Rapid business growth 7.00% 10% 6% 16% -2.5x January 2009 November 2008 Bersin & Associates, Corporate TalentWatch Research, Senior HR and Business Executives, 2/09 Copyright 2009 Bersin & Associates. All rights reserved. Page 5

Key Organizational Initiatives Increased restructuring, changes in strategy, decline in demand, forcing change What Are Your Organization s Major Organizational Changes? (Jan 2009) Development and launch of new products and services 33% 38% Major restructuring 26% 30% +15% Major change in business strategy 23% 26% +10% Rapid decline in demand 13% 25% 2X New top management team or CEO 20% 30% Merger or acquisition 13% 19% Rapid growth in revenue or demand Major regulatory change 6% 13% 12% 12% January 2009 Data October 2008 Bersin & Associates, Corporate TalentWatch Research, Senior HR and Business Executives, 2/09 Copyright 2009 Bersin & Associates. All rights reserved. Page 6

Top Talent Challenges Leadership, Focus on performance, Filling Critical Skills Gaps What Are Your Organization s Top Talent Challenges for 2009? Creating a Performance-Driven Culture 58% 71% +20% Gaps in the Leadership Pipeline 64% 74% New Skills for Product and Business Changes 50% 59% Skills Gap in Critical Positions 42% 58% Difficulty Filling Key Positions 38% 74% Retirement of Key Workers 25% 35% Retention in Key Positions 21% 49% Rapid Hiring Due to Growth 6% 23% Managing layoffs and downsizing Low engagement or employee dissatisfaction 17% 37% 32% 32% +2.3x High January 2009 Data October 2008 Bersin & Associates, Corporate TalentWatch Research, Senior HR and Business Executives, 2/09 Copyright 2009 Bersin & Associates. All rights reserved. Page 7

Weakest Weak Mid-Level Leadership Weak skills in line management, young workers, and sales roles Readiness to Execute: Skills Levels by Role (February 2009) Line Managers 2% 31% % World Class % Excellent Entry-Level Sales representatives 2% 5% 38% 42% Organizations feel Line managers have Lower readiness and Skills than entry-level employees! Customer Service 6% 46% Director-Level 4% 55% Engineering-Professional 9% 57% Top Executives 18% 59% Bersin & Associates, Corporate TalentWatch Research, Senior HR and Business Executives, 2/09 Copyright 2009 Bersin & Associates. All rights reserved. Page 8

What s on the mind of L&D Top Research Priorities: 170 Bersin & Associates Research Members, January 2009 How do I improve our learning culture? 31% How do we implement learning "on-demand?" 27% How do I reorganize L&D for efficiency and effectiveness? How do I implement Collaborative Learning programs? How do I build expertise in the "new disciplines" of L&D? How do I improve learning measurement and evaluation? How can I benchmark my L&D organization to improve? 22% 21% 21% 18% 17% 0% 5% 10% 15% 20% 25% 30% 35% Copyright 2009 Bersin & Associates. All rights reserved. Page 9

Agenda Business and Talent Trends L&D Spending and Program Allocation E-Learning and Informal Learning Learning Technologies and Tools New Disciplines of the Modern Learning Organization Copyright 2009 Bersin & Associates. All rights reserved. Page 10

Total Industry Spending Declines Cuts in training budgets and payroll drive down total spending Total training industry spending dropped to $56.2 billion in 2008. Copyright 2009 Bersin & Associates. All rights reserved. Page 11

Cuts in Training Budgets Economy takes its toll on L&D organizations In 2008, training groups spent $1,075 per learner, an 11% decline over 2007. Copyright 2009 Bersin & Associates. All rights reserved. Page 12

Industry Variations in Reduction All industries dropped, hardest hit are retail and manufacturing Copyright 2009 Bersin & Associates. All rights reserved. Page 13

Cuts in L&D Staffing per Employee Large and Mid-Sized Firms Cut Staff Staffs dropped to 4.9 per 1,000 learners in midsize co s & to 3.4 in large co s. Copyright 2009 Bersin & Associates. All rights reserved. Page 14

Drop in Training Delivered Worst of all, formal training delivery dropped by almost 30% Copyright 2009 Bersin & Associates. All rights reserved. Page 15

Payroll Allocation Declines Driven by online learning, changing composition of L&D, & staffing cuts In 2008, 60% of L&D dollars went to staff payroll, down from 74% in 2004. Copyright 2009 Bersin & Associates. All rights reserved. Page 16

Reallocation of Training Budgets More spending on job-specific training, less on leadership training In 2008, 17% of L&D dollars went to leadership dev, down from 21% in 2007. Copyright 2009 Bersin & Associates. All rights reserved. Page 17

Cost Reduction Strategies 1. Consolidate L&D organization (federated model) 2. Consolidate vendor contracts 3. Implement pragmatic measurement program 4. Improve delivery efficiency and class utilization 5. Postpone LMS upgrade, implement SaaS solution 6. Shift to online delivery (virtual classroom) 7. Eliminate low priority programs 8. Implement social learning solution and develop informal learning strategy Copyright 2009 Bersin & Associates. All rights reserved. Page 18

Learning Council Federated Organizational Model Steering Committee Senior Leadership/CLO Centralized Programs Management & Leadership Programs New Employee Training Certain Compliance Programs Executive Education Programs Continuing Education Programs Project Management Training Learning Services LMS Support Measurement Content Development Content Integration Skills & Competency Mgt. Vendor Management Enterprise Technology Platforms LMS LCMS Virtual Classroom Assessment Tools Authoring Tools Simulation Tools Performance Consulting Learning Plans Learning Budgets Business Units/Geographies Performance Consulting Learning Plans Learning Budgets Performance Consulting Learning Plans Learning Budgets Learning Program Delivery & Mgt Learning Program Delivery & Mgt Learning Program Delivery & Mgt Copyright 2009 Bersin & Associates. All rights reserved. Page 19

Manage the Learning Portfolio: The Training Investment Model Operational Run the Business Strategic WIN in the Market Custom Programs ERP Rollout Call Center Application Training Product Introduction 30% 40% High Impact Programs Business Critical Skills, Competencies, and processes for your organization Highest ROI Project s Off-the Shelf Based Programs IT Training Desktop Skills General Management Project Management 10% 20% Sales Techniques Customer Service Techniques Banking Regulations Training Investment Model: Bersin & Associates Copyright 2009 Bersin & Associates. All rights reserved. Page 20

Agenda Business and Talent Trends L&D Spending and Program Allocation E-Learning and Informal Learning Learning Technologies and Tools New Disciplines of the Modern Learning Organization Copyright 2009 Bersin & Associates. All rights reserved. Page 21

Evolution of Enterprise Learning Changes in Our Fundamental Understanding of its Role & Purpose We are Here Get Materials Online Expand, Blend Improve E-Learning Solve Talent Problems Social Networking Informal Learning Rich Catalog University Learning Paths Role-Based Competency-Based Learning Career Development Leadership Development Instructional Design Kirkpatrick Rapid E-Learning Information vs. Instruction Search, Information Architecture E-Learning Get Materials Online Interactivity Simulation Blended Learning Collaborative / Social Learning LMS E-Learning Platform LMS Enterprise Learning Platform Learning Portal Learning 2.0 2001 2004 2007 2010 Copyright 2009 Bersin & Associates. All rights reserved. Page 22

Today s Networked Organization Internal networks and social learning are natural. Peer Manager Peer Mentor Employee Expert HR L&D Informal learning and collaboration now take place naturally, changing the role of the formal training leader. Copyright 2009 Bersin & Associates. All rights reserved. Page 23

Decline in Formal Training.Fewer formal training hours taken by learners in SMB markets. Learners averaged 17.2 hours in 2008, down from 2006 and 2007. Key Trends: E-learning usage has leveled off, indicating saturation Formal learning decreasing rapidly due to economy and new media Mobile and social learning growing rapidly, but very new Tremendous interest in informal learning strategies as new model Only 9% of L&D spending is allocated to new approaches Copyright 2009 Bersin & Associates. All rights reserved. Page 24

First-Ever Drop in Online Delivery Shift toward less costly, informal methods Use of online methods dropped from 30% in 2007 to 24% in 2008. Copyright 2009 Bersin & Associates. All rights reserved. Page 25

E-Learning Remains Challenging Less than 1 in 5 organizations feel expert at e-learning and collaboration Rating of Effectiveness: World-Class or Excellent Poor or Non- Existent Blend e-learning and ILT effectively 22% 52% Build High-Impact Courseware 17% 58% Build e-learning rapidly 19% 58% Implement collaborative approaches to e-learning 14% 59% Implement Learning On-Demand 7% 76% Simulation-based Training 13% 67% Career Development Programs 15% 63% Coaching Programs 12% 61% Share and Reuse Content 17% 56% Leverage Enterprise Standards in Content Devt. 20% 56% High Impact Learning Organization 2008 n=780, January 2008, www.bersin.com/hilo Copyright 2009 Bersin & Associates. All rights reserved. Page 26

Today s Worker Challenges Finding the right information at the right time and in the best format Toughest challenges for knowledge workers as consumers of information? The problem is context not content Overwhelming volume of information makes it difficult to notice and keep track of useful info. Lack of effective tools (such as Search) makes it difficult to find the most useful info. 34% 68% Reuse and standards badly needed Frequent change of information makes it difficult to find the most current info. Inconsistency of information formats or sources makes it difficult to use and comprehend new info 23% 32% Dynamic nature of job roles make it difficult to find sufficiently targeted or relevant info. 16% Job roles or conditions make it difficult to access sources of info. 12% Learning On-Demand Research Bersin, 2008, 1000+ respondents www.bersin.com 0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % Copyright 2009 Bersin & Associates. All rights reserved. Page 27

The Learning On-Demand Model Supports today s Multi-Generational Workforce Master Expert Independent Proficient Novice Traditional Training Time Copyright 2009 Bersin & Associates. All rights reserved. Page 28

The Learning On-Demand Model Supports today s Multi-Generational Workforce Expert Self Assessment Learning on Demand Coaching Programs Communities of Practice Career Curriculum EPSS Tools Job Aids Training Event Novice Traditional Training Time Copyright 2009 Bersin & Associates. All rights reserved. Page 29

Formalize Informal Learning We need to optimize this Coaching On the Job, 70% Information in Support of Work, 20% Formal Training, 10% Not just this AND KNOW THIS? Bersin & Associates Research High Impact Learning Organization 2008 Copyright 2009 Bersin & Associates. All rights reserved. Page 30

Rise in Informal Approaches Businesses turn to coaching, collaboration, and O-T-J training 30% of learning programs incorporate structured coaching. And 27% incorporate structured collaboration. Copyright 2009 Bersin & Associates. All rights reserved. Page 31

Value of Informal Learning Which learning approaches drive the greatest business value in your organization? On the job experience 60% On the job mentoring, projects, rotation Coaching by supervisor Formal training - company provided 28% 36% 33% Peers, friends, personal networks Formal training - outside provider User generated materials Corporate documentation 4% 3% 8% 14% 72% of companies believe their most valuable learning approaches are informal, yet only 30% of resources are focused here 0% 10% 20% 30% 40% 50% 60% 70% Copyright 2009 Bersin & Associates. All rights reserved. Page 32

Organization, Governance, and Management Approaches The OLD Way Learning Programs Formal Disciplines Learning Architecture Tools and Technology Copyright 2009 Bersin & Associates. All rights reserved. Page 33

Bersin & Associates Enterprise Learning Framework Organization, Governance, and Management Approaches 1 Learning Programs Audiences and Problems 2 Informal 3 Formal On-Demand Social 20% 80% Disciplines Embedded Learning Architecture 4 Tools and Technology 5 Culture Copyright 2009 Bersin & Associates. All rights reserved. Page 34

Bersin & Associates Enterprise Learning Framework Organization, Governance, and Management Approaches Learning Programs Audiences & Problems Jobs Leadership Development Management Roles Career Development Technical Professional Competencies Proficiencies Onboarding Compliance Preferences Customer Service Sales Demographics Project and Process Product Knowledge Geographies Customer Education Channel Training Systems IT Skills Business Problems Informal Formal Instructor Led Training Virtual Classroom Games Simulations Testing & Evaluation E-Learning Disciplines Performance Consulting Instructional Designs On-Demand E-Learning Search Books, Articles Videos Podcasts Learning/Knowledge Portals Information Architecture Knowledge Management Social Wikis, Blogs, Forums Expert Directories Social Networks Communities of Practice Conferences &Colloquium Coaching & Mentoring Content Development Program Management Change Management Community Management Embedded Performance Support Feedback Rotational Assignments After Action Reviews Quality Circles Development Planning Measurement & Evaluation Business Intelligence Learning Architecture Tools & Technology LMS, LCMS Learning Portals Talent Mgt. Systems Content Development Content Management Collaboration Social Networking Rich Media Mobile Assessment Search, Tagging Performance Support Virtual Classroom Reporting and Analytics Measurement Sustems Culture Executive Support Learning integrated With Business Planning Development Planning Knowledge Sharing Performance and Talent Management Customer Listening Innovation Programs Mentoring and Knowledge Sharing Employee Feedback Learning from Mistakes Copyright 2009 Bersin & Associates. All rights reserved. Page 35

Deep Specialization Today's organizations are narrower at the top. Traditional leadership development model not working: must find ways to develop, promote, and honor the specialist leaders. Enduring organizations," endure because they are very focused on their core competencies: they are the "best in the world" at one or two things. Building Competitive Advantage Copyright 2009 Bersin & Associates. All rights reserved. Page 36

Agenda Business and Talent Trends L&D Spending and Program Allocation E-Learning and Informal Learning Learning Technologies and Tools New Disciplines of the Modern Learning Organization Copyright 2009 Bersin & Associates. All rights reserved. Page 37

Technology Spending in L&D Companies cut their technology spending from 11% of training dollars in 2007 to 6% in 2008 Both small and large companies saw sharp cuts in tech spending Online use within these segments has declined Tech Spending 6% Other 94% Copyright 2009 Bersin & Associates. All rights reserved. Page 38

Adoption of Learning Technology 39% overall in 2008 But over 80% for orgs >10K employees Bersin & Associates 2009 Corporate Learning Factbook www.bersin.com/factbook Copyright 2009 Bersin & Associates. All rights reserved. Page 39

Growth in Social Networking Tools Collaboration is a low-cost, yet effective, learning method Use of Communities of Practice has doubled in the last year now at 22%. Copyright 2009 Bersin & Associates. All rights reserved. Page 40

LMS Consolidation Large businesses are consolidating their disparate systems 82% of large companies are now using a single, company-wide LMS Copyright 2009 Bersin & Associates. All rights reserved. Page 41

Top Challenges with Current LMS Reporting Customizations Usability Integrations Adoption & Usage Provider Service System Admin Content Integration Stability & Performance IT & Security 11% 31% 27% 25% 23% 20% 18% 17% 38% 45% 0% 10% 20% 30% 40% 50% Source: Bersin & Associates 2009 Copyright 2009 Bersin & Associates. All rights reserved. Page 42

LMS Customer Satisfaction LMS Customer Satisfaction: Moderate to Low 38% 13% 49% Very Satisfied Somewhat Satisfied Not Satisfied Bersin & Associates, 2009. Copyright 2009 Bersin & Associates. All rights reserved. Page 43

Shopping for a Switch Extremely likely, plan in place. Somewhat likely, considering. Unlikely, need to switch but no plan/budget. Unlikely, no need. Not sure. 8% 14% 18% 9% 40% Would Switch Given Plan/Budget! 50% 0% 20% 40% 60% Source: Bersin & Associates 2009 Copyright 2009 Bersin & Associates. All rights reserved. Page 44

How LMS Systems have Evolved Talent Management Performance Management Competency Mgt, Succession Social Learning Communities of Practice Content, Knowledge Sharing Corporate Learning Application Integrated with Other Learning Components ERP, HR, and application integration E-Learning Platform Make E-Learning Possible Make E-Learning Easy Training Management System Automate the Process of Instructor-Led Training Copyright 2009 Bersin & Associates. All rights reserved. Page 45

Approaches: Learning Portals Enterprise Social Software HR Employee The Learning Portal Manager Tech Support SME Knowledge Database Peer LMS Wiki What I need to know right now. What skills and competencies I need. Who I can ask for help. It s all about me. My job. My role. My assignment. Copyright 2009 Bersin & Associates. All rights reserved. Page 46

Agenda Business and Talent Trends L&D Spending and Program Allocation E-Learning and Informal Learning Learning Technologies and Tools New Disciplines of the Modern Learning Organization Copyright 2009 Bersin & Associates. All rights reserved. Page 47

% Improvement in business impact Need for Career Development Centralized Approach to Development Drives Far Greater Value 25% 20% Average Business Impact (12 measures) Engagement and retention 15% 10% 5% 0% -5% Individually Manager Level Business Unit Level Enterprise Level -10% -15% -20% Copyright 2009 Bersin & Associates. All rights reserved. Page 48

A New Role for Learning Drivers: Goal: Examples: Organization: Timeline Complexity Integrated with: Challenges: How to measure success Performance-Driven Learning Business performance issues in operational units and functions Develop individual capabilities and fill performance gaps Sales Training, Customer Service Training, Field service certification Aligned by job within function Months or even shorter Functional Product launches, new service offerings, geographic expansion Performance consulting, program design, manager engagement Solving business problems: sales, service, quality, turnaround Talent-Driven Learning Talent and leadership gaps, critical skills shortages, engagement and culture Develop organizational capabilities driven by competencies, not performance Multi-tier leadership development New-hire onboarding programs Aligned to all job roles in a job function Multiple quarters to years Enterprise or Divisional-wide Performance management, recruiting, succession planning Resource allocation, program design, job alignment, manager adoption Filling and solving talent gaps (ie. shortages, recruiting goals) Copyright 2009 Bersin & Associates. All rights reserved. Page 49

Coaching and Mentoring Cisco Sales Career Development Corporate Leadership Development Program Designation or Certification Senior Peer Review Board Web 2.0 Collaboration On-Demand Video Communities of Practice Real-world and peer review Job Performance Sales outcomes representative Skills and Knowledge outcomes Expert Mastery (real-world simulations, advanced topics) Peer-based Gated Assessment Business Outcome Challenge #1 Account Manager Sales Leader Advanced (requirements, simulations, assignments, resources) Peer-based Gated Assessment Business Outcome Challenge #1 Foundational Program (requirements, electives, resources) Technical Specialist Technical Leader Pre-Assessment Place Individual on the Roadmap Role-Specific Competency Models Cisco Learning Platform: Develop, Manage, Administer, Measure Talent Management Integration Copyright 2009 Bersin & Associates. All rights reserved. Page 50

Coaching as Formal Program Structured coaching programs for management, leadership, sales, customer service Competency-based Delivered at all levels in the organization Very effective and easy to measure Copyright 2009 Bersin & Associates. All rights reserved. Page 51

Approaches Social Learning Environments Copyright 2009 Bersin & Associates. All rights reserved. Page 52

Copyright 2009 Bersin & Associates. All rights reserved. Page 53

Approaches Communities of Practice Copyright 2009 Bersin & Associates. All rights reserved. Page 54

Program Portal(s) Blog Articles Regular Emails Copyright 2009 Bersin & Associates. All rights reserved. Page 55

Content Development and Performance Consulting Working closely with subject-matter-experts is a critical best practice A performance consulting model is the proven approach, not free SME-enabled training BEST PRACTICE: L&D Becomes Center of Excellence for Content Guiding the Dev & Lifecycle of Content Throughout the Organization 2.5 2 1.5 1 0.5 0-0.5-1 -1.5 1.40 Developers with specialized skills 2.18 SMEs supervised -0.05 SMEs without supervision 0.81 Workers create content -0.86 Content is sourced externally Modern L&D Research Bersin, 2009, 1000+ respondents www.bersin.com Copyright 2009 Bersin & Associates. All rights reserved. Page 56

Learning Business Operations High Impact Learning Organizations (HILOs) run corporate learning like a business What percentage of organizations are good or excellent? Planning our Learning Activites Aligning learning programs with strategic business goals Efficiently using our resources and funding Delivering training the clearly impacts the business Meeting time-critical, urgent business needs Partnering with lines of business 34% 35% 37% 36% 33% 41% 96% 94% 94% 91% 83% 92% Meeting critical talent gaps in the organization 11% 60% Developing high job satisfaction in the training organization 29% 77% Bersin & Associates, High Impact Learning Organization research conducted 1/2008, n=786, L&D Leaders (www.bersin.com/hilo) 0% 20% 40% 60% 80% 100% 120% HILO Respondents All Respondents Copyright 2009 Bersin & Associates. All rights reserved. Page 57

Need for Learning Architecture Copyright 2009 Bersin & Associates. All rights reserved. Page 58

Performance Learning Model Resident Certification Training Skills Development Classroom Onsite Web-based Learning Management System Group Job Performance Support Performance Support Action Learning Fee for Service Targeted Training Learning Organization Knowledge Sharing System (Communities of Practice) Online Guidebook Yellow Pages Knowledge Distribution Distributed Learning Single dimension learning paradigm (old) Individual Knowledge Sharing Copyright 2009 Bersin & Associates. All rights reserved. Page 59 Multi-dimensional learning paradigm (new)

What is a Learning Culture? A learning culture is an organization-wide belief that the organization s strategy, mission and operations can continuously be improved through an ongoing process of individual and organizational learning. It includes a set of investments, programs and processes to study areas of weakness, explore causes and exploit opportunities to improve and learn at all times and at all levels. Bersin & Associates Copyright 2009 Bersin & Associates. All rights reserved. Page 60

Impact of Learning Culture How would you rate your organization s learning culture? 52% High Performing Organizations are 3X more likely to have a strong learning culture 18% All Organizations 24% 3% 3% 45% 34% 17% 24% 24% High-Impact Organizations Poor We do not value learning Fair A few locations value learning Good Learning valued in some locations Excellent Learning is highly valued World Class Valued at all levels Copyright 2009 Bersin & Associates. All rights reserved. Page 61

18 High Impact Learning Dimensions Relative Impact Area Correlation to Impact 1 Organization s Learning Culture 30% Culture Very High 2 Learning Integrated with Performance Management 30% Talent Management Very High 4 Strong centralized L&D organization 9% Org & Governance Very High 3 Expertise in Career Development Programs 29% Talent Management Very High 5 Ability to share and reuse content 29% Content Development High 6 Ability to blend e-learning with other forms of training 29% Content Development High 7 Expertise in collaborative learning strategies and programs 28% Content Development High 8 Expertise in performance consulting 28% Content Development High 9 Expertise in coaching 27% Talent Management High 10 Creating and enforcing content development standards 26% Content Development High 11 Ability to build high-impact e-learning and learning On-Demand 25% Content Development High 12 Ability to globalize learning programs and operations 24% Org & Governance Medium 13 Building a business plan for learning 19% Org & Governance Medium 14 Strong business-driven steering committee and governance 17% Org & Governance Medium 15 Adoption of performance and development management 12% Talent Management Medium 16 Business-driven Chief Learning Officer 13% Org & Governance Medium 17 Have a well-functioning LMS 15% Technology Low 18 More than 80% of the organization uses the LMS 18% Technology Low Copyright 2009 Bersin & Associates. All rights reserved. Page 62

Bottom Line for L&D Tightened budgets and change in learning environment creates opportunity to revitalize corporate training Consider centralization of organization to create alignment and focus on critical programs and career management Accelerate adoption of communities of practice and social networking to create internal learning at low cost Postpone or cut external providers who are not supporting strategic workforce programs Realign your focus on the new disciplines and tools for informal learning and learning culture Run training like a business operation Get focused behind a few key programs to create alignment, excitement, and energy around business restructuring or turnaround Copyright 2009 Bersin & Associates. All rights reserved. Page 63

How to Learn More The Corporate Learning Factbook (www.bersin.com/factbook) LMS and Learning Platforms 2009 (www.bersin.com/lms) Ten Ways to Reduce Costs in L&D (www.bersin.com) The High Impact Learning Organization (www.bersin.com/hilo ) Need more info? Contact us at info@bersin.com Copyright 2009 Bersin & Associates. All rights reserved. Page 64