The Research Source for Enterprise Learning
April 2007

In This Issue


Just-Released LMS Customer Satisfaction Study
Details Customers’ Experience
Customer Satisfaction Pie Chart

Is your experience with your LMS consistent with that of other users? Are you focusing on the factors most relevant to satisfaction and success in your RFP? How does your current LMS provider compare against others when it comes to customer loyalty?

You can find the answers to these and equally important questions in the recently published study, 2007 LMS Customer Satisfaction: An Industry Analysis of the Customer Experience with Learning Management Systems. This independently funded, 100-plus page study analyzes input from 516 system administrators, training managers, and executives on 20 satisfaction criteria. Thirteen LMS vendors agreed to participate in the study.

The study evaluates satisfaction in 20 different categories – including product functions, technical support, customer service, business partnership, and implementation – all from the customers’ perspective.

The first part of the study analyzes overall customer satisfaction in each of the 20 categories. This information helps LMS buyers and current customers understand the factors which lead to successful and unsuccessful LMS solutions and identifies the areas of greatest risk.

The second part compares customer satisfaction among 13 top LMS vendors, grouped in three different ways: by size and complexity of implementation, by hosted vs. installed systems, and by average annual operating cost. These groupings ensure equitable comparisons and help purchasers focus on the categories that best meet their overall organizational objectives. For each of the three groupings, the study recognizes those vendors which are category leaders (those which achieved the highest ratings) and category outperformers (those which exceeded the category average).

The report also highlights the three vendors with top ratings in customer loyalty. Participating vendors included: Cornerstone OnDemand, GeoLearning, GeoMetrix, KnowledgePlanet, MeridianKSI, RISC, Oracle/PeopleSoft, Outstart, Plateau, Softscape, SumTotal, Technomedia, and VuePoint.

Examples of key research findings include:

  • 24% of respondents said they were “extremely likely” or “somewhat likely” to switch LMS vendors.
  • Almost one out of five companies plan on spending more than $400K on LMS operations and maintenance this year. 25% plan on spending between $100K and $399K; 39% plan on spending less than $100K.
  • Unlike the 2005 study, this year’s results showed that externally hosted LMSs did not necessarily yield higher satisfaction ratings.
  • Areas with the lowest satisfaction ratings include reporting, ease of customization, rapid return on investment, and out-of-the-box functionality.

Members: Download this study today.
Non-Members: This study can be purchased for $1,495. For more details, including a table of contents, click here.

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Innovative Coaching Model Drives Leadership Development at Informatica
InformaticaLogo

Recent research into leadership development shows an extremely high correlation between business impact and the use of leadership coaching as part of a talent development strategy.

The case study Coaching as a Valuable Means of Developing Leaders: Driving Performance at Informatica discusses how Informatica, a provider of enterprise data integration software, has replaced classroom instruction for all levels of management with one-on-one coaching.

The case study details the Pfeifer Model, developed by Linda Pfeifer, who now is global director of HR learning and performance at Informatica. The model is used to deliver courses designed to develop six core management competencies: developing and coaching direct reports, building effective teams, hiring and staffing, managing for results, and motivating others.

Coaching sessions are conducted over the phone over a period of several weeks. Each course within the program is based on one of the six core competencies. Courses begin with an assessment session, followed by three to five coaching sessions. Based on information gathered during the assessment, coaches customize course content to the individual’s background and development needs. Each of the one-hour sessions focuses on a specific best practice. Informatica requires completion of the program for promotion to senior management positions.

The case study discusses all aspects of the model, including the characteristics of a best-practice coaching session, learner assessment, measurements (similar to those used in the Kirkpatrick Model), and the effectiveness of tele-coaching. You’ll also learn the specific ways in which this model differs from other coaching models.

In addition to realizing significant cost savings, Informatica cites other major benefits of the coaching approach, including increased consistency and timeliness of training and greater learner engagement. Managers also prefer the coaching-based training to traditional classroom-delivered instruction.

If you’re interested in adding or expanding the use of coaching in your own organization, be sure to read this case study.

Members: Download this case study.
Non-members: This case study is available to you for a limited time. Register to download.

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In the News
Elearning


Elearning!
April, 2007

MetLife Leapfrogs Learning
By Linda Galloway

MetLife, selected as a 2006 Learning Leader, is profiled in this article. You’ll learn how MetLife’s learning and development organization reinvented itself in less than two years. The article discusses the company’s best practices in change management, organizational structures, shared services, and enterprise-wide learning initiatives. MetLife’s learning infrastructure, MetLife Performance-Learning, was recognized by Bersin & Associates in January 2007 for initiative excellence. Click here to read the article.


Elearning!
April 2007

Are you Herding Cats? Look to your Leadership Development Program.
By Kim Lamoureux

This article discusses the importance of targeting multiple levels of management in leadership development programs. The article also discusses the different competencies associated with each management level and provides a curriculum model that can be applied when developing program content. Click here to read the article.


CLO
April 2007

The Stampede to Talent Management
By Josh Bersin

Today’s LMS vendors can’t move fast enough into talent management. This column discusses the implications for vendors and technology buyers of this rush into a largely undeveloped market. Read how the new emphasis on talent management can make LMS-purchasing decisions even more arduous and the implementations more complex. Click here to read the article.

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Events
Power Briefs_Article 5


ANALYST BRIEFINGS

Sign Up Today for a Briefing Near You




Don’t miss out on these one-day briefings. You’ll get the latest research on key issues, discuss findings with other professionals, and hear best practices and success stories from learning leaders.

And, because we recognize your time is tight, each Power Briefing is scheduled from 10 a.m. to 3 p.m. We guarantee you’ll leave with more information, more insight, and more ideas than you’d typically get from much longer events.

Bersin & Associates members can attend the Power Briefings at no cost; email Diane Anselm to sign up. Non-members can attend for $199. Register now!

Performance and Talent Management Strategies
Tuesday, April 17, 2007
Leighanne Levensaler
Baltimore Marriott Waterfront

High-Impact Leadership Development
Wednesday, April 25, 2007
Kim Lamoureux
Fairmont San Francisco

Developing Your Enterprise LMS/LCMS Strategy
Tuesday, May 1, 2007
Chris Howard
Fairmont Copley Plaza Boston

Introducing High-Impact Talent Management Research
Wednesday, May 16, 2007
Josh Bersin
The Yale Club NYC

Special Opportunity for Members: If you’d like to set up a complimentary meeting with a Bersin & Associates analyst before or after a Power Briefing, please call 561 455 0622 or email Mike Cooke. This is a great opportunity to discuss in depth issues specific to your organization.

WEBINARS

LMS Customer Satisfaction 2007: A Report Card on LMS Vendors and Solutions
April 13, 2007, 2:00 p.m. ET
April 27, 2007, 2:00 p.m. ET
Josh Bersin, President
Karen O’Leonard, Principal Analyst and Study Lead

This webinar will highlight the soon-to-be released major research study on customer experiences with learning management systems. The presentation will discuss the key challenges organizations face, how different vendors address these challenges, and how vendors compare in delivering total customer satisfaction. Research is based on detailed survey results from 516 system administrators, training managers, and executives. The study evaluates a wide range of categories - product performance, customer service, technical support, and additional tools and capabilities - all from the customer’s perspective. If you’re considering an LMS purchase, planning a consolidation initiative, or involved in an implementation project, this is a must-attend session!
Click here to register for April 13.
Click here to register for April 27.



Research Launch: Introducing High-Impact Talent Management
May 23, 2007, 2:00 p.m. ET
Josh Bersin, President

This special briefing will introduce Bersin & Associates' in-depth and ground-breaking research into corporate talent management. Designed for corporate HR and training managers and executives, the one-hour webinar session will highlight the results of more than 18 months of research and provide new insights, best practices, and benchmarks you can use to refine your own talent management strategy. Register for this event.


Missed it live? Research members can view all recorded webinars by visiting the research center event archives. Not a member? Sign up for a trial membership today.

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New Research for Members

LMS Customer Satisfaction 2007:
Industry Analysis of the Customer Experience with LMS Systems

This industry study benchmarks the customer satisfaction for LMS offerings and includes detailed ratings for 13 LMS vendors. Download now.

Quality of Hire: A Talent Management "Suite" Spot for Authoria 2007
Leighanne Levensaler discusses the field of integrated talent management suites and provides an overview of the newly released Authoria 2007. Download now.

Coaching as a Valuable Means of Developing Leaders:
Driving Performance at Informatica

This case study discusses how Informatica, a provider of enterprise data integration software, has replaced classroom instruction for all levels of management with one-on-one coaching. Download now.

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New Talent Management Newsletter
Talent Management News

Bersin & Associates' new Talent Management newsletter highlights research on: leadership development, performance management, competency management, recruiting, succession planning and the evolution of integrated talent management systems. In each newsletter you will find actionable research you can immediately apply. Subscribe today!

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Analyst Corner
KarenOLeonard

LMS Customer Satisfaction Trends Over the Last Two Years

Karen O’Leonard
Senior Analyst

Our second study on LMS customer satisfaction provides unique insight into what is and isn’t working with today’s LMSs. One disturbing fact pulled from the research is that fully one-quarter of customers say they are likely to switch vendors. This number is higher than it was in 2005 and verifies that the LMS market is still churning.

Customer loyalty varies dramatically. One vendor had no customers expressing a likelihood to switch; other vendors had more than one-third. The underlying factors are varied, but let’s look at two areas in which satisfaction has dropped over the past two years.

System reporting capabilities received the lowest satisfaction scores of any category. With the increased emphasis on enterprise-wide reporting and demonstrating business results, customers are becoming more demanding of their systems’ reporting and analytical capabilities, and they are not satisfied with what their systems currently offer.

The second area is integration with e-learning content. Despite the existence of e-learning standards, these are not consistently implemented by vendors, resulting in errors in launching and tracking courses and assessments.

Other factors influencing customer satisfaction and loyalty are customer service and support, the system’s ease of customization, and the completeness of the vendor’s out-of-box solution.

We thank all customers who participated in this study. We believe this research is very important, since it offers corporate users an objective perspective of the factors that most significantly impact customer satisfaction.
Download the report to see detailed ratings.
We’d be interested to hear how you use the research.

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