The Research Source for Enterprise Learning
February 2007

In This Issue


Don’t Guess, Get the Facts!
Corporate Learning Factbook 2007 Is Here
Spending By Industry

The Corporate Learning Factbook, published annually, is one of our most widely read and quoted research reports. Many learning executives view it as the ultimate reference – the source they can rely on for statistical data and analysis about every aspect of corporate learning.

The Factbook covers training budgets, expenditures per learner, cost per student hour, program priorities, budget allocations, staffing sizes, staff to learner ratios, staff to total spending, technology usage and budgets, outsourcing spending, and much, much more. Its appendices include 130 data points broken down by company size and industry sector, so you can compare your own metrics with those from comparable organizations.

Here’s a preview of what you’ll find in this year’s report:

  • The corporate learning market continues to grow, with budget increases averaging 7%. Total training spending grew from $51.1B in 2005 to $55.8B in 2006; spending on products and services grew from $13.5B in 2005 to $15.8B in 2006.
  • While budgets have increased, salary spending over the last four years has remained relatively flat. In 2003, 73 cents of every training dollar went to payroll expenses; in 2006, payroll expenses were 65 cents of every dollar.
  • Learning technologies are widely used by companies of all sizes. Almost 60% of respondents use virtual classroom technologies, 40% have learning management systems, 25 to 30% use application simulation and rapid e-learning tools, and 14% use learning content management systems.
  • The average spending per learner is $1,273. The highest spending sector is technology ($2,763) and the lowest is retail ($519).

Research Members: Visit the research center to download this valuable report today.
Non-members: This report is available for $595. A table of contents is available to non- members; click to download.

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Kia’s Business-Driven Dealer Training

Automotive manufacturer Kia has 630 retail dealers and 14,000 dealership employees in the United States. Kia University is charged with meeting the training needs of the dealer network.

The University’s staff of 25 full-time employees provide a wide range of training – from warranty service to vehicle diagnostics to sales – all of which has direct impact on customer satisfaction.

This recently published case study focuses on how Kia University bases its direction and measures results on the business and the company’s goals, one of which is to become one of the five best-selling automakers in the world. Staff members do track typical learning metrics, such as number of hours per learner and course completions. However, the most heavily weighted metrics are those directly tied to the business and, most importantly, customer satisfaction.

The university closely monitors satisfaction and quality metrics used in internal and external surveys (including J.D. Power and Associates’ annual auto survey), along with internal systems and reports.

This case study provides valuable insight into how a company effectively trains a geographically distributed learner audience and uses learning to help attain strategic business objectives. Additional sections include discussions on the processes used to obtain continual stakeholder input, the university’s blended curriculum strategy, the use of SumTotal’s LMS for managing learning activities, and content development.

Kia is rapidly garnering market share in the United States. Read this case study to see how a sophisticated dealer training initiative is contributing to the company’s success.

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.

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In the News
Corporate Learning Factbook

Budget and Staffing Trends:
What They Mean to You for 2007
[Chief Learning Officer]

Sometimes, taking a look back can be a productive step when planning for the future. Analyzing documented corporate learning trends, for example, helps you determine if your budget is in line with market averages, evaluate planned deployment of staff and payroll expenses, and benchmark key characteristics of your training programs. Although no two organizations are exactly alike — and certainly no training organization is “average” — using data to assess and evaluate your organization’s progress and plans is an important process.

Find out what trends have emerged and what the top training priorities are for 2007; read the full article.

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Events

WEBINARS

High-Impact Leadership Development
February 15, 2007, 1:00 p.m. ET
Josh Bersin, President
Kim Lamoureux, Senior Analyst

Leadership development is the foundation for management training, succession planning, executive education, and talent management. This webinar will cover key findings from Bersin & Associates’ ongoing research, including different maturity levels for leadership development; specific strategies and tactics to move leadership programs up the maturity model; and six best practices of highly effective leadership development programs. Register for this event.

Leadership Development Ain’t What it Used to Be!
February 22, 2007, 1:30 p.m. ET
Kim Lamoureux, Senior Analyst

Find out specific tactics and strategies you can employ to make leadership development more effective for your organization. As much as 30% of training budgets are spent on leadership development. Are you getting the best value for your investment? This webcast will cover highlights from recent research on leadership development, six best practices for increasing the effectiveness of leadership programs, and case studies from organizations that achieved significant business results through the implementation of strategically aligned leadership programs. Register for this event.

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

February 27, 2007, 1:00 p.m. ET
Karen O'Leonard, Senior Analyst
Josh Bersin, President

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.

Building and Managing Learning Content:
What’s Right for Your Organization?

March 20, 2007, 2:00 p.m. ET
Chris Howard, Principal Analyst

Effectively building and managing content is at the heart of any successful learning initiative. The learning content maturity model describes five levels for building and delivering learning content and other types of knowledge assets. The model establishes a framework for assessing an organization’s capacity and for determining if, when, and how you should your organization to a higher maturity level to meet even more complex information management demands. This webinar will help you to understand the different maturity levels for building and managing content; common challenges and strategies at each level; and how to assess the maturity level that’s right for your organization. Register for this event.

Learn from Leaders in Customer Service and Sales Training
March 26, 2007, 1:00 p.m. ET
Josh Bersin, President

Join Josh Bersin and a panel of senior learning executives for a discussion about best practices for highly effective customer service, sales and soft skills training. Panelists represent organizations named by Bersin & Associates as 2006 Learning Leaders for training programs with outstanding business results. Winning programs to be discussed include an online brokerage firm’s customer service and sales skills training for branch associates, a specialty retailer’s training for store employees on how to effectively promote the store’s credit card to shoppers, and a software firm’s technical support training for employees and external partners. 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.

CONFERENCES

Training 2007 Conference & Expo
February 26 - 28, 2007
Disney's Coronado Springs Resort in Orlando, Florida

Chris Howard is a featured speaker at Training 2007 with the following sessions on Tuesday, February 27, 2007:

  • The State of the Training Industry, 11:45 a.m. -12:30 p.m.
  • The Content Integration Challenge, 9:15 - 10:15 a.m.
  • Selecting an LMS 2007: New Research, Insight and Advice, 2:45 – 3:45 p.m.

Visit the conference website for more details.

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New Research for Members

The Corporate Learning Factbook® 2007:
Statistics, Benchmarks and Analysis of the U.S. Corporate Training Market

This industry report provides detailed benchmarking data on training budgets, headcount, programs, delivery methods, technology usage and outsourcing activities for the U.S. corporate training marketplace. Download now.

Business-Driven Dealer Training:
Kia University Delivers on Customer Satisfaction

This case study illustrates how an automotive manufacturer successfully developed learning programs for its dealership network to drive customer satisfaction. Download now.

The Learning Content Maturity Model:
Developing a Framework

The Bersin & Associates Learning Content Maturity Model® provides a framework for training professionals to assess their organizations’ capabilities to develop and manage learning content by detailing each of the five levels of this maturity model. Download now.

The Rapidly Changing LMS Landscape: Learn.com and LearnCenter X
In this bulletin, Josh Bersin discusses the rapid growth of Learn.com as a company, the recent release of LearnCenter X and the changing nature of the LMS market. Download now.

Leadership Development and Talent Management:
Are They the Same?

In this research bulletin, Kim Lamoureux addresses the different aspects of talent management and why they must be an essential part of a company’s overall leadership development strategy. Download now.

Leadership Development Program Models: One Size Does Not Fit All
In this research bulletin, Kim Lamoureux discusses the design approaches for two common types of leadership development program models, as well as examples of each from best-practice organizations. 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

LCMS Adoption on the Rise

Chris Howard
Principal Analyst

I want to again thank Rick Rabideau of MetLife and Phil Landers of Ericsson for participating with me in the presentation on LCMSs at the recent TechKnowledge event.

The interest in LCMSs is very high. Companies big and small see the implementation of LCMSs as the next natural step to expand, control, and standardize learning content across the enterprise. Our research shows that 42% of organizations with LMSs are planning to acquire some type of LCMS.

With LCMS adoption comes a host of new challenges. These are not plug-and-play applications and require significant planning and change management. In fact, we advise companies that 25% to 33% of resources used for an LCMS implementation should be focused on change management. We also encourage companies to bring in outside experts with in-depth experience in content management to assist in setting up a knowledge architecture, adapting development processes, and refining standards.

As Phil and Rick can testify, the benefits of content management are significant. Faster content development processes. Efficient tracking of resources. Version control.

But the bigger value of LCMSs reaches beyond the opportunity to better develop learning content. Advanced organizations, including MetLife and Ericsson, are starting to use LCMSs as knowledge repositories to access and manage valuable information assets of all types.

Members will find valuable information in our research library on LCMSs – from selecting solutions to case studies and best practices to a model for evolving your organization’s learning content resources.

Be sure to check out these resources as you tackle content management challenges.

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