The Research Source for Enterprise Learning and Talent Management
November/December 2006

In This Issue


High-Impact Learning Measurement

Bersin & Associates’ newest study, High-Impact Learning Measurement, is a must- read for every training professional and executive.

This 191-page report details survey results of 136 training executives on all aspects of training metrics and includes case studies and best practices from companies such as Caterpillar, CNA Insurance, Randstad, NCR, and HP.

Additionally, the study introduces the Impact Measurement Framework(tm), designed to simplify the complex problem of training measurement, help training professionals ensure continual business alignment of learning programs, and provide practical and actionable measures which can be used to make decisions. (See our September newsletter for a discussion of this framework.)

According to President Josh Bersin, the Impact Measurement Framework extends and modernizes Kirkpatrick and other traditional measurement models. It also better reflects the current mission of training as a business-centric, service delivery organization which uses many different techniques for employee development – including e-learning, coaching, performance support, as well as traditional training.

Following are highlights from the study:

  • Only 5% of survey respondents routinely measure ROI, only 8% regularly measure actual business impact, and 14% measure job impact.
  • Course completions, enrollments, learner satisfaction, and student hours are still the most frequently measured elements.
  • Currently, organizations spend on average only 2.6% of total training budget on measurement. The research found that 82% of companies surveyed thought they should be spending more or much more on measurement.
  • The report includes many specific examples of best practices in measurement currently in use by well-known organizations. Examples include: CNA Insurance’s investment model; Caterpillar’s approach to aligning learning with business goals; HP’s end-of-course surveys; and project request forms and pre- and post-course assessments used by Randstad.

Bersin & Associates will discuss the study’s findings and the Impact Measurement Framework at an upcoming webinar, scheduled for December 14, 2006 at 2:00 p.m. (EST). This webinar is open to members and non-members. Click here to register.

Research Members: Visit the research center to download the study today.
Non-members: An executive summary is available to non-members. Register to download today.

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Training the Extended Enterprise: Enterprise Software Company Blends Customer Training Modalities

This case study details the customer training program of a large software company* with more than $1B in sales. The company views customer training as strategic, since efficient use of the company’s software increases revenue, customer satisfaction, and customer loyalty, while lowering support costs.

The company has had great success by developing a customer training program that includes a mix of free and for-pay offerings: free online webinars and recorded classes; fee-based virtual classrooms; and fee-based one-on-one and on-site instruction. This approach has helped the company actually increase its training revenue. Trends show that those customers who take advantage of the free learning resources are more likely to use fee-based offerings in the future.

By breaking down internal barriers and centralizing training responsibility, the company has also experienced greater efficiencies in delivering customer training. Today, two teams are responsible for training delivery: the on-site training team handles everything from one-on-one phone instruction to customized, on-site classes; and the distance learning team has responsibility for all webinars and free online resources (currently more than 800 recorded learning events). Both of these teams rely on a 20-person staff of instructional designers.

The company manages thousands of learning objects with an LCMS. An LMS automatically creates a customized learning curriculum for each student, based on his/her job role, experience, and licensed products.

Research Members: Visit the research center to download your copy today.
Non-members: This case study is available to non-members for a limited time. Register to download today.

*This company was recognized by Training magazine as a Top 100 learning organization and Best Practice winner in customer-facing distance learning by the U.S. Distance Learning Association.

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Notes from Learning 2006

“The training industry needs conferences like Learning 2006,” said Josh Bersin. “The show is highly collaborative, interactive, and fun. Overall, there’s much less selling and much more conversation.”

Bersin and Chris Howard both gave presentations at the event, held in Orlando earlier this month. Following are observations from their notebooks:

  • Howard’s presentation on the use of learning content management systems was packed with attendees. The extreme interest in the topic demonstrates without a doubt that e-learning is now mainstream. Companies are trying to determine how to create more e-learning content, how to reuse it more efficiently, and how to better manage it.
  • Training practitioners are scrambling to learn as much as they can about talent management. More than 250 people attended Bersin’s presentation on the topic. The question most frequently asked? How and where to get started, said Bersin. He said companies are looking for industry-specific examples of companies employing best-practice talent management processes, as well as roadmaps that can help them build a program.
  • Companies are clearly interested in outsourced learning services. In Bersin’s presentation, “The Business of Corporate Learning,” much discussion went to topics related to effective outsourcing: how to select a vendor partner, pricing, and the strengths of large outsourcers vs. niche service provider. Both vendors and buyers were interested in learning how to more effectively work in outsourcing partnerships.

Check out the Learning 2006 wiki for further comments on the conference.

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In the News

The Learning Impact Measurement Framework
[Chief Learning Officer]

Kirkpatrick’s four levels of measurement are practically an institution in learning and development industry metrics. Josh Bersin, president and founder of Bersin & Associates, has compiled several years’ worth of research into his Learning Impact Measurement Framework, which offers CLOs new ways to measure learning and evaluate ROI.

Bersin said most training executives look at measurement through the lens of Kirkpatrick’s four-level model, which looks at satisfaction, learning, job impact and business impact. Yet, Bersin also said this model is problematic — about 92 percent of the companies Bersin & Associates surveys say the No. 1 problem they face is measurement. Learn more; read the full article online.

Research Shows Growth Year for Corporate Training Budgets and Staffing
[Bersin & Associates]

Training Budgets Increase an Average 7% Among U.S. Organizations of All Sizes; Dramatic Growth of 20% in Health Care and Medical Organizations

“Over the past few years, the learning and development function in organizations of all sizes has grown in stature,” commented Josh Bersin, president and founder of Bersin & Associates. “Economic growth, new governmental regulations, and the challenges of an aging workforce have made learning and development a strategic business function. More organizations are viewing training as a key component to their long-term success, and are increasing budgets to invest in the future,” Bersin added. Read the full announcement.

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Events

WEBINARS

  • A New Approach to Training and Support for Enterprise Application & Process Deployments
    December 13, 2006, 3:00 p.m. ET
    Chris Howard, Principal Analyst
    Catherine Tarbox, HP Worldwide Training & Development

    Learn how HP employed a performance support strategy to improve adoption and productivity with its new Siebel implementation and related sales processes across 20,000 employees worldwide. Bersin & Associates will introduce the case study with research on performance support systems, best practices and industry trends. Register for this event.

  • Measuring the Impact and Alignment of Training:
    A New Approach

    December 14, 2006, 2:00 p.m. ET
    Josh Bersin, President

    This webinar will discuss Bersin & Associates latest research on best practices in training measurement and introduce a new, highly pragmatic, business-focused approach to training measurement. The presentation will cover the Impact Measurement Framework, which expands and modernizes the Kirkpatrick and other traditional measurement models. After attending this webinar, we’re confident you’ll have a fresh and much more practical outlook on training measurement! Register for this event.

  • The Corporate Learning Factbook:
    Benchmarks of the U.S. Corporate Learning & Development Market

    January 17, 2007, 2:00 p.m. ET
    Karen O'Leonard, Senior Analyst

    The Corporate Learning Factbook® is the U.S. training industry's most complete and comprehensive study of corporate learning and development. This presentation will summarize the highlights of recent research into the budgets, staffing, and practices of today’s learning organizations. It will provide detailed data and analysis on learning program priorities, budget allocations, learning delivery methods, use of key learning technologies, future directions, and more. Register for this event.

Missed it live? Research members can view all recorded webinars by clicking on the links below. Not a member? Sign up for a trial membership today.

WORKSHOPS

It's Not Too Late To Register....

Implementing Successful Performance and Talent Management Series, a one-day workshop focused on the issues, challenges, and best practices related to performance and talent management. Targeted to HR and learning executives and professionals, the agenda covers a wide range of topics, including the performance management maturity model, which can be used to help you match the processes and technology best suited to your current stage and future strategy; the seven fundamental elements critical to any performance management initiative; the organizational impact of performance and talent management; and the available technology options that can bring new efficiencies to business processes.

As with all Bersin & Associates workshops, attendees interact directly with analysts and peers throughout the workshop, leave with detailed action plans, and can obtain ongoing advice and guidance. Attendees receive a complimentary copy of Performance Management 2006: Market Analysis, Trends, Best Practices, and Vendor Profiles.

  • December 1, 2006, New York City, The Yale Club

Visit our website for a detailed agenda, registration information, and member discounts.

Building a High-Impact Learning Organization. This workshop received rave reviews last season for the insights and actions required to maximize the efficiency and effectiveness of corporate training.

In response to attendee feedback, the workshop has been extended to a one-and-a-half-day format to provide more time for discussion and workgroup activities and to incorporate the analysis of three detailed case studies on effectiveness measurements, phased LMS implementation, and learning governance models.

  • November 29-30, 2006, New York City, The Yale Club

Visit our website for a detailed agenda, registration information, and member discounts.

CONFERENCES

ASTD TechKnowledge 2007
January 31, 2006 - February 2, 2007, Las Vegas

On February 1 at 4:30 p.m., Chris Howard will host a panel discussion, “Guidelines for Success with an LCMS.” Panelists are Rick Rapideau, Leader of Enterprise Learning Solutions, MetLife; and Paul Landers, Training Programs Product Manager, Ericsson.

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New Research for Members

High-Impact Learning Measurement: Best Practices, Models, and Business-Driven Solutions for the Measurement and Evaluation of Corporate Training
This report explains the specific best practices for the measurement and evaluation of corporate training. It identifies the pragmatic, actionable, specific best practices, processes and methodologies that organizations can use in the measurement and evaluation of corporate training, and explains the need for and development of a new model and framework.Download today.

High-Impact Learning Measurement: State of the Market and Executive Summary
This 28-page executive summary discusses the state of training measurement today and highlights the summary findings of our comprehensive industry report, High-Impact Learning Measurement. Download today.

SkillSoft Acquires NETg from Thomson Corporation [10/30/2006]
Josh Bersin analyzes SkillSoft’s acquisition of NETg - and the impact this will have on customers, partners and competitors. Download this research bulletin today.

SumTotal Acquires MindSolve [11/14/2006]
This research bulletin discusses the impact of today’s announcement of SumTotal’s acquisition of MindSolve, and analyzes the impact on the marketplace as SumTotal positions itself as a provider of integrated performance and talent management solutions. Download this research bulletin today.

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Analyst Corner
Josh Bersin

Reflections on SkillSoft’s Acquisition of NETg

Josh Bersin
President and Founder

On October 26, SkillSoft announced the acquisition of rival NETg, creating a single company with dominant market share in online IT and soft skills training, online references, and a variety of other professional training resources and supporting technologies.

This isn’t the first time SkillSoft has swallowed a giant. In 2002, the company merged with SmartForce, a much larger competitor. Once the transaction was final, SkillSoft quickly quickly eliminated redundant offerings, closed unnecessary facilities, and consolidated staffs. It accomplished major technology conversions within publicized deadlines, with relatively few problems. We expect a similar level of focus and discipline with this acquisition – and the result will likely be much higher profitability.

Customers will see mostly positives from this acquisition. NETg customers will likely see biggest and most immediate benefits with more content, technology, and resources available. SkillSoft customers will benefit from the availability of the LearnFlow LCMS and complementary content titles. Prices may go up – but as they do, other vendors will enter the market.

The acquisition will also help solve another market problem: the challenge for LMS vendors and buyers to integrate many forms of e-learning content into their systems. SkillSoft will now have enough market clout to create a de facto standard (based on its OLSA platform) which all vendors and buyers will adopt.

This acquisition will ultimately impact every buyer and supplier in the corporate learning market.

For more analysis, register to receive our research bulletin, “SkillSoft Acquires NETg from Thomson Corporation.”

Members, click here to download this from the research center.

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