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Copyright © 2006 Bersin & Associates. All rights reserved.

Increasing the Strategic Value of the Learning Organization

September, 2006

Presented by: with:Josh Bersin Will Hipwell



The New Learning Organization• Business demands for change

Today’s Best-Practice Solutions:1. Creating an Integrated Planning Process2. Critical Role of the CLO3. Business Alignment through Performance Consulting4. Service Centric Operations and Measurement5. Integration with Talent Management


Research for this Presentation


Global Talent ShortageTop Jobs which are Difficult to Fill, Ranked in Order

Manpower Inc. 2006Talent Shortage Survey

33,000 employers

1004

53%

Administrative Assistants

Restaurants and Hotel Staff

Management / Executives

Engineers

Sales Representatives

Production Operators

Germany

892

58%

Accountants


IT Staff


Engineers


Japan

4382

13%

IT Managers / Project Mgrs

Engineers / Technical Mgrs.

Marketing and PR Executives

Accountants

IT Staff


India

2122

42%

Chefs/Cooks

Drivers

Engineers

Skilled Trades (fitter, plumber)



UK

2692127532,975 respondents

24%44%40% employers have difficulty

filling positions

MachinistsAdministrative Assistants

IT Staff

EngineersAccountantsSkilled Trades (carpenter/ weld)

Management / Executives

Technicians (production/opns)


Technicians (production/opns)

NursesTechnicians (production/opns)


EngineersEngineers




ChinaUSAWorld


Demographics Changes

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

20-24 25-34 35-44 45-54 55-64 65+

2004

2014

10%Decline

50%Growth

30%Decline

Employed Workforce Demographics (BLS data) © Bersin & Associates


New US Workforce Demographics

25-34 35-44 45-54 55-64 65+

RecruitingNew Hire Training

Onboarding

Succession PlanningIdentification

of Key LeadersManagement & Leadership

Training

Critical Talent ManagementCapturing and Sharing

KnowledgeMentoring

AtAt--Risk IndustriesRisk Industries

GovernmentGovernmentEnergyEnergy

Oil & GasOil & GasTelecommunicationsTelecommunications

ManufacturingManufacturing


Training Spending is Growing

About the Same38%

Growing44%

Decrease18%

2.7%Small-Medium

6.2%Large Organizations

2006 Budget Growth RatesIs your training budget growing,decreasing, or staying the same in 2006?

The Corporate Learning FactBookThe Corporate Learning FactBook®® ©© Bersin & Associates 2006Bersin & Associates 2006


Top Priorities Today: Learning48%

33%

24% 23% 21% 18%16%

Alignmentwith Business

Strategy

IncreasingEffectiveness

MeasuringImpact

Infrastructure- Technology

ReducingCosts

IncreasingUsage

FasterDeployment

What are the top prioritiesfor your learning organization?

Alignment


3.50% 3.40%

2.85%2.47%

2.05% 1.99% 2.10%

1999 2000 2001 2002 2003 2004 2005

What Percent of your Payroll is spenton Learning & Development?

Training as Percent of Payroll


Skills & Competency Mgt Succession

Planning Performance Management

Leadership Training

Learning Management

0%

10%

20%

30%

40%

50%

60%

What are the HR functional areas which you feel need most focus and improvement? (up to

two answers)

Talent ManagementPerformance Management

Talent ManagementTalent ManagementPerformance ManagementPerformance Management

Priorities for HR: Talent Management


Fundamental Economic Shift

Cost ofTraining

Function

Number of Learners Served

From variable cost to fixed plus variable costbusiness function.

Fixed Technology Investment

TraditionalTraining

“Old Corp U”

The NewOrganization

“LearningServices”


Traditional Corporate University

Many offerings to choose fromProgram-centricCentralized and staffed for peak demandEmployees “go” to the corporate university


New: Learning Services

Performance-OrientedProcess-centricMeasurableAccountable to the businessFocus on operational excellence, efficiency, and valueIntegrated with HR and ITLearning Services “comes to you”


Old CorporateUniversity

LearningServices

Courses in the catalog Courses and content are everywhere

You go to the University to be trained

Organization focus:Running the Courses

Learning services delivers offerings to you

Organization focus:Serving Users Needs

Defining Learning Services


Data Processing Department (DP)

InformationTechnology (IT)

Mainframe in the Basement

Computers on every desk (and lap)

You “bring” your data to the DP department

Organization focus:Running the Systems

IT brings “processing” to you: self-service systems

Organization focus:Serving Users Needs

Consider an Analogy: IT


Get MaterialsOnline

Expand, BlendRationalize

Integrate and Align

Re-Focus onTalent Issues

2000 2003 2009

HR

Bus

ines

s R

each

and

Impa

ctEvolution of Corporate Training

LearningServices

2006

Integrationwith Talent

Management

CorporateUniversity

E-Learning Performance ManagementCompetency ManagementGap AnalysisLeadership DevelopmentTalent-based Learning



The New Learning Organization• Business Demands for Change



Organizational Models

Centralized

Federated

Anarchy


Lack of Business Planning

Do you have a Written Business Plan for your Learning Organization

for Budgets, Volumes, and Program Deliverables?

No48%Yes

52%

Do you have a Written Business Plan for your Learning Organization

for Budgets, Volumes, and Program Deliverables?

No48%Yes

52%

n=166


Development AccessibilityLocalization Technology ReadinessDeployment FundingMeasurement

Learning Management SystemLearning Content Management SystemContent Development ToolsCollaboration ToolsHR System Integration

Business StrategyBusiness Strategy

Learning SystemsStrategy

Learning SystemsStrategy

Learning ArchitectureLearning Architecture

Talent StrategyTalent Strategy

Strategy Alignment Process

Strategic Learning Alignment Process®© Bersin & Associates

Mission & Vision Learning Approach/Modes Operational Strategy Learning Processes Governance Programs Staffing/Skills Measurement Approach Planning Process Learner Communities Funding Model Business Results Organizational Readiness Role in Talent Development

Learning StrategyLearning Strategy


Business Plan for Learning1. Strategy2. Budget3. Program Plan4. Organizational Model5. Alignment with Know Major

Business Initiatives6. Alignment with HR-Talent

Initiatives7. Operational Measures8. Governance process9. Year-to-Year comparison10. Major Capital Investments11. Major commitments by Quarter12. Signoff by all major business units

Acme Inc.2007

Enterprise LearningBusiness Plan

Acme Inc.2007

Enterprise LearningBusiness Plan


High Impact Governance Process

StrategicPlan

Operational Committees“how”

Learning Council“what”

ExecSteering

“Why”

Vision, MissionBudget/Headcount

Target DeliveryVolumesStrategicInitiatives

Vision, MissionBudget/Headcount

Target DeliveryVolumesStrategicInitiatives

OperationalPlan

Program BuildPlan

Scheduled EventsTechnology PlanStaffing ModelMeasurements

Program BuildPlan

Scheduled EventsTechnology PlanStaffing ModelMeasurements

LearningOperations

QuarterlyAnnual or Semi-Annually

Deliveryand Support

PerformanceConsulting

Measurementand Reporting

LearningShared Services


Learning Council“What”

Training Operations “How”

Exec. Steering “Why”

• Executive alignment• Funding approval• Progress reporting• Executive team

members

• Program prioritization (what and when) and allocation

• Operational and business impact measurement

• Standards development• Quality control • Identification and selection

of technologies and preferred vendors

These governance process must be driven by a business plan for learning.

Do you have one?

Best Practices in Governance


Evolution of Business Planningand Learning Governance

Enterprise LearningStrategy

Integrated Planning forBusiness Transformation

BuildingEfficiencies

• Establish a shared infrastructure• Establish communication• Eliminate/reduce redundancy• Consolidate vendor contracts

• Enterprise Learning Strategy supports Key Business Initiatives

• Establish business unit learning strategies • Publish enterprise learning plan

• CLO as an Executive Team Member• Learning included in business

transformation strategies• Integrate learning into plans for

talent management


Governance in a Federated Model: In Action

The Global Learning Community is a federated group made up of learning leaders representing each of the business units. Each business unit develops a learning plan, budget and manages the design and development of the programs required to ensure that the local and unit-specific business needs are being met. Bank-wide L&D programs are managed by the Global Learning Office.Bank-wide shared services are managed by the Global Learning Office.

Business Unit

BusinessUnit

Global Learning

Community

Global Learning

Office


The Role of the CLO

A High Impact CLO is a senior executive with enterprise-wide business executive with authority and accountability for training and training-related processes.

A High Impact CLO is accountable to the line operations, not to HR

A High Impact CLO is not a “VP of Training,” “Dean of a Corporate University,” or “Knowledge Officer” but a business manager

High Impact CLOs often come from other business functions, not training per se.

High Impact CLOs are operational, service-oriented, business focused, aligned, and connected and they must drive the development of an integrated business plan.


Impact of CLO

• Leadership matters: Highly effective CLOs drive significant improvements in efficiency and effectiveness.

+ 10% HigherDeveloping High Job Satisfaction

+ 12% HigherMaking the most of Resources

+ 15% HigherSharing Best Practices

+ 14% HigherDeveloping Innovative E-Learning

+ 20% HigherMeasuring Impact of Learning

+ 12% HigherPartnering with Lines of Business

How CLO MattersArea of Operational Excellence

Data obtained from The High Impact Learning Organization® Research, available at www.bersin.com/highimpact


Performance Consulting Role

Do you have a Performance Consulting role?

No, we do not have a performance

consulting role.45%

Average 2.4%on Measurement

10% below average

Yes, We have a performance

consulting role.55%


10% above average

Do you have a Performance Consulting role?

No, we do not have a performance

consulting role.45%


10% below average

Yes, We have a performance

consulting role.55%


10% above average


Performance Consulting ProcessStrategic Problem Identification:

What is wrong? Who believes this is a problem? What is the strategic plan for this workgroup?

Problem Measurement:What is the business goal? How far off are we?

What are our standards?

Problem Definition:Management? Organization? Skills? Processes?

Information? People?

Development and Deployment of Solution:Training? Coaching? Performance Management?

Documentation? Discipline? Process Change?

Measurement and Feedback:Did they take it? Did they learn? Did it make an impact?

How can we improve?

PerformanceConsultingFunction

TrainingDevelopment

andDeliveryFunction


Impact of Performance Consulting

11%

8%

5%

13%

7%

3%

13%

6%

6%

6%

3%

7%

6%

-30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30%

11. Developing high job satisfaction in the training department

10. Ability to share learning best practices across the enterprise (Efficiency)

9. Measuring training & providing reports/analysis (Efficiency)

8. Making the most of our resources (Efficiency)

7. Providing cost-effective training (Efficiency)

6. Meeting regulatory compliance (Effectiveness)

5. Partnering with lines of business (Effectiveness)

4. Delivering innovative e-learning programs (Effectiveness)

3. Meeting urgent, time-critical business needs (Effectiveness)

2. Allocating budgets to programs with greatest business impact (Effectiveness)

1. Providing training that impacts the business (Effectiveness)

Average of all EFFICIENCY Measures

Average of all EFFECTIVENESS Measures

Performance Consulting is #1 Driver of High PerformanceM

easu

re

% Higher Result

Data obtained from The High Impact Learning Organization® Research, available at www.bersin.com/highimpact


Why Performance Consulting Matters

1. Brings your learning managers much closer to true business challenges

2. Forces you to ruthlessly prioritize your investments to align with business needs

3. Gives you the ability to “push back” on vocal business managers demanding support

4. Drives the implementation of a result and alignment-driven measurement program

5. Gives your staff career growth and increased job satisfaction



The New Learning Organization• Critical role of the CLO



How the learning develops bench strength and competencies needed for the future?

How the learning function is operationally efficient and improving its efficiency over time?

How the learning function directly enables strategic initiativesand its relative importance to these initiatives?

How high cost / high priority learning programs drive job and business impact?

Does Your Organization Know…


Probably not…

More than 90% of our research members state that:

“measurement processes are not providing the actionable data we need.”

Are you spending enough on Training Measurement?

We should spend MUCH

MORE on measurement

31%

We should spend LESS on measurement

2%

We are spending the RIGHT

AMOUNT now16%

We should spend MORE on

measurement51%

Are you spending enough on Training Measurement?

We should spend MUCH

MORE on measurement

31%

We should spend LESS on measurement

2%

We are spending the RIGHT

AMOUNT now16%

We should spend MORE on

measurement51%


Desired Measures

n=166

What are most Valuable Measures?(% of Organizations who Rated this measure Extremely Valuable)

26%

31%

33%

35%

36%

39%

41%

43%

43%

44%

44%

47%

65%

72%

76%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Hours Delivered

Enrollments

Completions

Cost per Hr

Cost to Develop

Cost to Deliver

Compliance

ROI

Satisfaction Level 1

Learning Level 2

Mgr Satisfaction

Total Cost

Bus Metrics

Bus Impact Level 4

Job Impact Level 3

What are most Valuable Measures?(% of Organizations who Rated this measure Extremely Valuable)

26%

31%

33%

35%

36%

39%

41%

43%

43%

44%

44%

47%

65%

72%

76%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Hours Delivered

Enrollments

Completions

Cost per Hr

Cost to Develop

Cost to Deliver

Compliance

ROI

Satisfaction Level 1

Learning Level 2

Mgr Satisfaction

Total Cost

Bus Metrics

Bus Impact Level 4

Job Impact Level 3


Actual MeasuresWhat is Frequently Measured?

(% of Organizations who Routinely Measure these Areas)

5%

8%

10%

14%

19%

31%

31%

35%

35%

37%

46%

63%

81%

86%

88%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ROI

Actual Bus. Impact

Bus Impact (Level 4)

Job Impact (Level 3)

Mgr Satisfaction

Cost per Student

Cost to Develop

Cost to Deliver

Scores (Level 2)

Total Cost

Compliance

Student Hrs

Satisfaction (Level 1)

Enrollments

Completions

What is Frequently Measured?(% of Organizations who Routinely Measure these Areas)

5%

8%

10%

14%

19%

31%

31%

35%

35%

37%

46%

63%

81%

86%

88%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ROI

Actual Bus. Impact



Mgr Satisfaction

Cost per Student

Cost to Develop

Cost to Deliver

Scores (Level 2)

Total Cost

Compliance

Student Hrs


Enrollments

Completions

n=166


Not much ProgressWhat is Frequently Measured? 2006 vs. 2004 Comparison

(% of Organizations who Routinely Measure these Areas)

4%

6%

11%

14%

15%

39%

28%

57%

50%

57%

52%

74%

76%

82%

85%

5%

8%

10%

14%

19%

31%

31%

35%

35%

37%

46%

63%

81%

86%

88%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ROI

Actual Bus. Impact



Mgr Satisfaction

Cost per Student

Cost to Develop

Cost to Deliver

Scores (Level 2)

Total Cost

Compliance

Student Hrs


Enrollments

Completions

2004 Data 2006 Data

What is Frequently Measured? 2006 vs. 2004 Comparison(% of Organizations who Routinely Measure these Areas)

4%

6%

11%

14%

15%

39%

28%

57%

50%

57%

52%

74%

76%

82%

85%

5%

8%

10%

14%

19%

31%

31%

35%

35%

37%

46%

63%

81%

86%

88%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ROI

Actual Bus. Impact



Mgr Satisfaction

Cost per Student

Cost to Develop

Cost to Deliver

Scores (Level 2)

Total Cost

Compliance

Student Hrs


Enrollments

Completions

2004 Data 2006 Datan=166


Poor Measurement Processes

n=166

What do you use to routinely measure to determine Business Alignment?

79%

69%

61%

52%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Meeting Overall Budget

Delivering programs ontime

Meeting satisfactiontargets

Job satisfaction intraining organization

What do you use to routinely measure to determine Business Alignment?

79%

69%

61%

52%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Meeting Overall Budget

Delivering programs ontime

Meeting satisfactiontargets

Job satisfaction intraining organization


Learning Impact Measurement Framework®© Bersin & Associates

Adoption Utility AlignmentEfficiency Attainment

Did you reach thedesired audience?

Did they complete orcomply as desired?Who did not comply

and why?

How well do programs solve the workforce’s particular problems?How well did it align

to the specific job-relatedproblems and issues?

Would learners recommendthis program to their peers?

How efficient andcost-effective

How did it compareto other similar programsor competitive programs?

How well did it uselearner’s time?

How well wereprogram business priorities defined?

How well did businessunits buy off on the

value of this programrelative to

other investments?

How well did youmeet specifically

defined client (business user

or customer) objectives?These may be

revenue, time tomarket, compliance,time to complete, etc.

Individual Performance Organizational Performance

Satisfaction Learning

Training Measurement: WhatWorks®Research Available in October, 2006


Job RolesJob Descriptions

Competency ModelsWorkforceplanning

Recruiting OnBoarding

1

2

3

Workforce Talent Management Process© Bersin & Associates

Performancemanagement

Training & performance

support

4

5

Critical skillsgap analysis

8

Succession planning

6

Compensationand benefits

7

Learning Content

Talent Management: A Process

1188

HRMHRMBusiness

Plan

1188

HRMHRM


Workforce Talent Management Process© Bersin & Associates

Evolution of the HR Function

Strategic HR

TalentManagement

PayrollBenefits

Business Function

RecruitingL&DOrg DesignTotal CompensationCommunications

Business Partner

Competency ManagementPerformance ManagementSuccession Planning

Business Integration

PersonnelDepartment

Payroll Systems

Recruiting, ApplicantTracking

HR PortalsCompensation Mgt.

Learning Management

Performance ManagementSuccession Planning

Competency ManagementIntegrated Talent Management


Integration with Performance Mgt.Drivers for Integration

Link performance, development, and

learning, 63%

Compliance, 4%

Reduce Labor Costs, 16%

Identify and Reward Top Performers, 24%

Give Executives Visiblity to Manage

Talent, 31%

Improve Communication of

Corporate Goals, 34%

Process ImprovementsEfficiencies, 65%

n=125

Why did you choose to automate your performance

managementsolution?

© Bersin & Associates: Performance Management 2006: Market Analysis, Trends, Best Practicesand Case studies, available at www.bersin.com/perfmgt


LeadershipManagement

ProgramManagement

TechnicalSkills

ProfessionalSkills

FunctionalSkills

Individual Contributor

First line Manager

Project Manager

Technical Specialist

Administrative

Functional Manager

Executive

Talent-Driven Learning Program Areas

Roles

The Expanded Role of LearningIntegrated with Talent Management

Competency-based LearningRole-based Learning PathsFunctional Learning Paths

Individual Learning OfferingsPerformance Support

Linkage to Performance Management

Talent-Driven Learning

Exe

cutiv

e / M

gt T

rain

ing

Cer

tific

atio

n, C

ompl

ianc

e

Onb

oard

ing

New

Man

ager

Talent-Driven Programs


Individual Learning Offerings

Training Department

Catalog of Courses

E-Learning Library

Line of business programs

Performance Consulting


LeadershipManagement

ProgramManagement

TechnicalSkills

ProfessionalSkills

FunctionalSkills

Individual Contributor

First line Manager

Project Manager

Technical Specialist

Administrative

Functional Manager

Executive

Talent-Driven Learning Program Areas

Roles

The Expanded Role of LearningIntegrated with Talent Management

Competency-based LearningRole-based Learning PathsFunctional Learning Paths

Individual Learning OfferingsPerformance Support

Linkage to Performance Management

Talent-Driven Learning

Exe

cutiv

e / M

gt T

rain

ing

Cer

tific

atio

n, C

ompl

ianc

e

Onb

oard

ing

New

Man

ager




Maturityof Integrated Learning

and Performance Management

Performance Focused

Performance Focused

IntegratedIntegrated

ManagedManaged

Ad HocAd Hoc

IntegratedIntegrated

Assigned or targetedlearning experiences

Learning Plans integratedwith roles and hiring

Goals and Development PlansIntegrated and Visible to L&D

Integrated Development andMeasurement of Learning to meet

Performance Demands

Available catalogs and course offerings

The Journey



The New Learning Organization• Critical role of the CLO



Research to Help You

www.bersin.com/highimpact www.bersin.com/convergence www.bersin.com/perfmgt


Learning More www.bersin.com/workshops

Building the High-ImpactLearning Organization

Implementing SuccessfulPerformance and TalentManagement Strategies

November 14-15, San FranciscoNovember 29-30, New York CIty

November 14-15, San FranciscoNovember 29-30, New York CIty

October 1, ChicagoNovember 16, San FranciscoDecember 1, New York CIty

October 1, ChicagoNovember 16, San FranciscoDecember 1, New York CIty


Free Resources from GeoLearning

Learning Analytics Requirements Checklistwww.geolearning.com/analyticschecklist

Learning Analytics Best Practices research paperwww.geolearning.com/research

Training Analytics & Human Capital ROI white paperwww.geolearning.com/analytics

E-Learning Strategy Blueprintwww.geolearning.com/bp

Today’s PowerPoint Slides in PDF formatwww.geolearning.com/sept6

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