RESEARCH SPOTLIGHT EXTENDED ENTERPRISE LEARNING

Transcription

1 RESEARCH SPOTLIGHT EXTENDED ENTERPRISE LEARNING A Profit Driver for Leading Organizations June 2017

2 Table of CONTENTS About the Study 3 Extended Learning is In 4 Benefits of Extended Enterprise Learning 5 Frequency and Investment 6 Extended Learning Effectiveness 7 Effectiveness is Tied to Outcomes 8 Delivering Extended Learning 9 The Impact of Technology 10 Delivery of Extended Enterprise Learning 11 Key Takeaways 12 Research Methodology 13 About Cornerstone OnDemand 14 About Brandon Hall Group Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 2

3 About the STUDY 206 Global Responses SMB, Enterprise, and Large Enterprise 23 Countries 71% US/Canada 23% EMEA 6% APAC 26 Industries 31% 21% 48% below 500 employees 23% 15% 12% 500-5,000 employees 50% Learning Leaders Executives and other senior business leaders HR and talent leaders Individual contributors 5,000+ employees 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 3

4 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. Learning Audiences 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 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 4

5 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 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 5

6 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 respondents) (% of budget) 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 6

7 Extended Learning EFFECTIVENESS Brandon Hall Group research shows that organizations believe extended enterprise learning is is effective at meeting business objectives. 56% says extended learning is effective /very effective 43% says traditional learning is effective /very effective 2017 Brandon Hall Group Extended Learning Study and Training Benchmarking Study (n=311) 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 7

8 Effectiveness is Tied to OUTCOMES So why do organizations consider extended learning more effective than other types of learning? 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. Percentage of Annual LMS Costs Covered via Extended Learning Revenues Methods of Selling Learning 48% Sell by the course or content piece 22% Sell by course/ content bundles 16% Included in price of other products delivered 14% Subscription model 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 8

9 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 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 9

10 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 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 10

11 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 76% Learning Management System 43% Website 34% Social/collaboration platform 29% SharePoint / content management system 27% In-house learning system 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 11

12 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 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 12

13 Research Methodology 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 13

14 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 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 14

15 About Brandon Hall Group About Brandon Hall Group Brandon 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 performance in emerging and large organizations, and provides strategic insights for executives and practitioners responsible for growth and business results. Authors and Contributors David Wentworth (david.wentworth@brandonhall.com) 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 Claude Werder (claude.werder@brandonhall.com) edited this report. 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 research priorities, content quality assurance, and producing the annual HCM Excellence Conference. Nissa Benjamin (nissa.benjamin@brandonhall.com) is the Marketing Coordinator at Brandon Hall Group and created the graphics and layout for this report Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 15

16 About Brandon Hall Group Subscribe To Our Interactive Data-Benchmarking Tool: DataNow All the data from our studies is available by subscription to DataNow. DataNow is Brandon Hall Group s interactive data-benchmarking tool. Organizations use it to make data-based decisions, find leading practices, benchmark, and more. You can also filter the data by company size, revenues, and industry segments to give you a fully customized view. Learn more about DataNow. Our Services GET HELP TO DRIVE RESULTS FOR YOUR TALENT In today s volatile and global business climate, managing talent for high-performance plays an increasingly crucial role in an organization s growth and future success. Effective talent management is a top priority in organizations everywhere because, while organizations recognize the need to obtain and retain people with the very best skills, they continue to struggle to implement effective strategies to do so. HR and Learning professionals need to be able to successfully define organizational talents needs and skills, identify talent strengths and career goals, and align organizational needs to individual needs. Rethink your strategy, validate your assumptions, transform your business, and optimize your time with the use of reliable data, tools, and guidance. PLAN ATTRACT DEVELOP PERFORM RETAIN OPTIMIZE GET HELP WITH YOUR HR SERVICES MANAGEMENT & DELIVERY As described in the employee lifecycle, processes are linked to employee transactional processes (e.g., compensation, benefits, compliance, contingent workforce management, etc.) via workforce planning and analytics. Policies/Process/Procedure Payroll Expense Management Benefits & Compensation Contingent Workforce Management Compliance Time & Labor Management 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 16

17 About Brandon Hall Group Our Services (Continued) GET CONSULTING HELP WITH... Strategy and Planning Governance & Business Alignment Executive Management Team Development Measurement & Analytics Program Design & Deployment Technology Selection, Management & Integration Organizational Structure Measurement & Analytics Change Management Budgeting & Forecasting Membership Offers Tailored Support At the core of our offerings is a Membership Program that combines research, benchmarking and unlimited access to data and analysts. The Membership Program offers insights and best practices to enable executives and practitioners to make the right decisions about people, processes, and systems, coalesced with analyst advisory services which aim to put the research into action in a way that is practical and efficient. Membership also provides you direct access to our seasoned team of thought leaders dedicated to your success, backed by a rich member community, and proactive support from our client services team. RESEARCH ACCESS & EVENTS Reports Case Studies, Frameworks & Tools DataNow & TotalTech Webinars and Research Spotlights Annual HCM Conference ADVISORY SUPPORT Ask the Expert 1 on 1 Consultations Research Briefings Benchmarking CLIENT SUCCESS PLAN Your Priorities Executive Sponsor Client Associate Monthly Meetings CLICK HERE TO LEARN MORE 2017 Brandon Hall Group. Licensed for Distribution by Cornerstone OnDemand. 17