extended enterprise learning - cornerstone€¦ · hcm analyst at brandon hall group. his...

June 2017

RESEARCH SPOTLIGHT

EXTENDED ENTERPRISE LEARNING

A Profit Driver for Leading Organizations

© 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 2

Table of CONTENTS

About the Study 3Extended Learning is “In” 4Benefits of Extended Enterprise Learning 5Frequency and Investment 6Extended Learning Effectiveness 7Effectiveness is Tied to Outcomes 8Delivering Extended Learning 9The Impact of Technology 10Delivery of Extended Enterprise Learning 11Key Takeaways 12Research Methodology 13About Cornerstone OnDemand 14About Brandon Hall Group 15


About the STUDY

71%

23%

6%

US/Canada

EMEA

APAC

26 Industries

23 Countries

206 SMB, Enterprise, and Large Enterprise

31% 21% 48%below 500employees

500 - 5,000employees

5,000+employees

23%

15%

12%

Executives and other senior business leaders

HR and talent leaders

Individual contributors

Global Responses

50% Learning Leaders


Extended Learning is “IN”

In a business world that’s increasingly social, mobile, and collaborative, corporate learning is changing in many ways. A growing trend in recent studies is extended enterprise learning, which is a program or initiative to educate audiences outside of the headquarters or specific locations of your organization. Extended learning can include remote or distributed employees as well as non-employees, such as customers, channel partners, distributors, value-add resellers, manufacturers, or franchisees.

Organizations are increasingly extending their learning:• More than half (54%) of learning delivered by organizations goes to

non-employees and remote and distributed employees.

The increase in extended learning is paying dividends in many ways:• 40% of organizations are generating revenue through extended learning –

an 18% increase from 2 years ago.• Almost one-third of organizations are recouping more than half of their

Learning Management System costs.

Learning Audiences


BENEFITS of Extended Enterprise Learning

Extended enterprise learning often involves direct outreach to customers, which can have a huge impact on customer retention and positive net promoter scores, and is also linked to sales outcomes.

Reported Business Benefits of Extended Enterprise Learning(Percentage of respondents realizing benefits)

69% Increases awareness of products/services

67%Reduces training

costs

65%Improves customer

relations

65%Maximizes client

retention

61%Increases sales

59%Reduces training

travel time

55%Meets compliance

requirements

53%Helps meet/exceed

corporate objectives

51%Increases employee

engagement

35%Reduces client

support interactions

29%Reduces employee

turnover


FREQUENCY and INVESTMENT

Stakeholders are leveraging valuable extended enterprise training quite frequently. At least one-quarter of customers, sales teams, and field support teams access learning daily or weekly. At least 48% of those groups access learning at least monthly.

Frequency of Extended Learning Usage by Audience Type (Learning accessed at least monthly)

The investment level is strong, too. More than half of organizations (55%) in our research said they spend more than 10% of their L&D budget on extended learning, and 22% of respondents said they spend more than half of their learning budget on extended learning.

Learning Budget Spent on Extended Enterprise

(% of budget)

(% o

f res

pond

ents

)


Brandon Hall Group research shows that organizations believe extended enterprise learning is is effective at

meeting business objectives.

Extended Learning EFFECTIVENESS

43%says traditional learning is effective/very effective

56%says extended

learning is effective/very effective

2017 Brandon Hall Group Extended Learning Study and 2016-17 Training Benchmarking Study (n=311)


Effectiveness is Tiedto OUTCOMES

Percentage of Annual LMS Costs Covered via Extended Learning Revenues

48%

16%

22%

14%

Sell by the course or content piece

Sell by course/content bundles

Included in price of other products delivered

Subscription model

When organizations couple the ROI from meeting business objectives with the ability to recoup LMS costs by charging for content, extended enterprise learning can be a highly profitable initiative.

Methods of Selling Learning

So why do organizations consider extended learning more effective than other types of learning?


DELIVERING Extended Learning

Despite the fact that we are talking about delivering learning to people outside the “four walls” of the organization, most extended learning still occurs in person. 80% of companies are pulling people from outside the organization into classrooms for training. Since several Brandon Hall Group research studies show that more informal types of learning are just – or more – effective as classroom training, companies have an opportunity to expand their extended enterprise learning by exploring more digital methods, such as simulations, videos and mobile.

Extended Learning Delivery Methods


The IMPACT of Technology

Regardless of how training is delivered, the importance of technology cannot be overstated. It is critical for companies to measure the outcomes of learning outside of the organization, especially since it may be more difficult to track than internal training. So, not surprisingly, reporting and analytics is considered – by far – the most important technology component related to extended learning. The second most important feature of extended enterprise technology is mobile capabilities because the very nature of extended learning requires that it be available on-the-go.

Most Important Characteristics of Extended Enterprise Technology


DELIVERY of Extended Enterprise Learning

Even though in-person training is common, an LMS can be used to manage the curriculum, instructors, learners, and scheduling. Three-quarters of companies delivering extended enterprise learning use an LMS, and 43% use the corporate website. Ecommerce functionality can be important to those using an LMS or company website and looking to recoup their investment.

Systems Used to Deliver Extended Enterprise Learning

34%Social/collaboration

platform

76%Learning Management

System

43%Website

29%SharePoint / content management system

27%In-house learning system


KEY Takeaways

Not all organizations will find themselves with a need to deliver learning to external audiences, but the number of companies that do is consistently growing. The learning ecosystem is far larger than most companies realize, transcending employees to include resellers, manufacturers, franchisees, customers, and even the public at large. Some keys to success include:

• Build the Business Case. Do you have a customer pool that accesses the help desk too often? Would your supply chain run smoother if your manufacturers and/or distributors knew more about your products? Extending learning can help. Where possible, scope out the impact of a more educated ecosystem on customer support costs, increased sales, market awareness, and customer or partner satisfaction.

• Select the Right Technology. Not every LMS is built to handle this type of learning. Look for platforms with robust reporting, mobile capabilities, eCommerce, and assessment tools.

• Be Strategic with Revenue Goals. Companies need to determine whether they are going to charge for the learning they deliver and, if so, how they will do it.

• Track and Measure. Once we begin talking about dispersed, disparate learning audiences, tracking becomes even more critical. Have a process and a set of KPIs before rolling out extended enterprise learning.


Research Methodology


About Cornerstone OnDemand

Cornerstone OnDemand (NASDAQ: CSOD) is pioneering solutions to help organizations realize the potential of the

modern workforce. As a global leader in cloud-based learning and human capital management software, Cornerstone is

designed to enable a lifetime of learning and development that is fundamental to the growth of employees and organizations. From recruitment, onboarding, training and collaboration, to

performance management, compensation, succession planning, people administration and analytics, Cornerstone is there at every phase of the employee lifecycle. The company’s solutions are used by nearly 3,000 clients worldwide, spanning more than 31 million

users across 191 countries and 43 languages.

Learn more at www.csod.com/extended-enterprise

http://www.csod.com/extended-enterprise


About Brandon Hall Group

About Brandon Hall GroupBrandon Hall Group is a HCM research and advisory services firm that provides insights around key performance areas, including Learning and Development, Talent Management, Leadership Development, Talent Acquisition, and HR/Workforce Management.

With more than 10,000 clients globally and 20 years of delivering world-class research and advisory services, Brandon Hall Group is focused on developing research that drives perfor-mance in emerging and large organizations, and provides strategic insights for executives and practitioners responsible for growth and business results.

Authors and ContributorsDavid Wentworth ([email protected]) wrote this report. He is Principal Learning Analyst at Brandon Hall Group, focusing on all aspects of learning and the technology that supports it. David has been in the human capital field since 2005 and joined Brandon Hall Group as senior learning analyst in early 2012.

Claude Werder ([email protected]) edited this re-port. He is the Vice President of Research Operations and Principal HCM Analyst at Brandon Hall Group. His responsibilities include overseeing Brandon Hall Group’s team of analysts, directing re-search priorities, content quality assurance, and producing the an-nual HCM Excellence Conference.

Nissa Benjamin ([email protected]) is the Marketing Coordinator at Brandon Hall Group and created the graphics and layout for this report.



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extended enterprise learning - cornerstone€¦ · hcm analyst at brandon hall group. his...

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