Global Marketing StrategyFebruary 2011

Trends for 201111

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a forecast for the training market

global marketing strategy team

Agenda

• Economic Update – Mike

• HR & Talent Management Trends – Becky

• Leadership Development Trends – Paula

• Formal Learning Trends- Sean

• Informal Learning & Mobile Trends – Alex

• Wrap Up & Questions

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The New Global Economy

• Low economic growth in U.S. and Europe

• Strong growth in India and China

• Shift in power to emergent economies

• Globalization of HR and learning and development

Source: Bersin & Associates, Enterprise Learning and Talent Management, 2011

Training budgets saw a slight increase in 2010

2008 2009 2010

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

-11% -11%

2%

Change in U.S. Training Budgets, 2009 - 2010

After double-digit budgetcuts in 2008 and 2009,training spending rose2% on average, in 2010.

2008 2009

Source: Bersin & Associates, Corporate Learning Factbook, 2011

Training budgets have rebounded more quickly in small companies

U.S. Total Small Mid-Size Large

-2%

0%

2%

4%

2%

3%

1%

-1%

Change in U.S. Training Budgets by size of organization

Source: Bersin & Associates, Corporate Learning Factbook, 2011

Some industries fared better than others for training budgets

TechnologyHealthcareRetailManufacturing

BankingFinancial ServicesGovernment

Net increases of 4% or more

Net decreases of 4% - 7%

Source: Bersin & Associates, Corporate Learning Factbook, 2011

Leadership development is the biggest expenditure in training budget

In 2010, leadership development accounted for 22% of the organization’s total training budget. 2006 2007 2008 2009 2010

0

5

10

15

20

25

30

35 33%

21%17%

24% 22%

% of Budget for Leadership De-velopment

9Source: Bersin & Associates, Corporate Learning Factbook, 2011

The confidence and outlook of learning executives is improving - signifying

increased funding for workplace learning expenditures

Learning Executives Confidence Index (LXCI)

European Foundation for Management DevelopmentDeans and Directors General Survey

June 2010

• Executive education results were mixed in 2010• 41% reported an increase in open programs, while 20%

remained steady• Custom programs saw one-third increase, while one-

third remained steady

• Expectations for 2011 are very positive• 66% of respondents expect an increase for open

programs• 65% expect an increase for custom programs

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a forecast for the training market

Business-Driven HR is necessary1

Personnel Department

Strategic HR

Integrated Talent

Management

Business-Driven HR

• Differentiate & Segment Talent• Plan for the Future• Globalize the Workforce & HR• Integrate with the Business

Source: Bersin & Associates – Enterprise Learning and Talent Management 2011

42% of my colleagues rated me just “fair” or “poor” on basic business acumen.

60% of my colleagues believe HR is an administrative department, not a

strategic partner.

58% of my colleagues believes HR lacks the capabilities to develop talent

strategies.

HR 2011

Sources: Bersin & Associates – Enterprise Learning and Talent Management 2011; Talent Management Factbook 2010; Deloitte: Talent Edge 2020; Korn/Ferry Institute: Business Today Demands a Comprehensive Talent Strategy

Good talent is hard to find…and retain. 2

Today’s workforce has

“fewer technical and

professional skills than in

previous decades”

Source: Bersin & Associates – Enterprise Learning and Talent Management 2011

• 1 in 3 high-potential employees admits to not putting all his effort into his job

• 1 in 4 believes he will be working for another employer in a year

• 1 in 5 believes her personal aspirations are quite different from what the organization has planned for her

Source: Harvard Business Review – How to Keep Your Top Talent

Companies with strategic business driven talent management:• 50% less turnover among high performers • 29% higher on employee engagement• 36% higher on leadership development• 41% higher on creating a pipeline of ready successors.

Source: Bersin & Associates – Enterprise Learning and Talent Management 2011

Diversity is redefined.3

Diversity is about age, culture, personality,

skills, training, educational background and life

experiences.……………………

Diversity among viewpoints leads to innovative thinking.

Top Priority:

Leadership Developmen

t

22% of training

budget

“Leadership development—is vital to succession planning.”

Develop

Hi-Pos Leadership at all

Levels

4Leadership development is still a top priority.

NEED: Leadership at all levels

FOCUS: Creating the next generation of

leaders

Innovation & Creativity are critical leadership qualities 5

6

Face-to-face training reigns.

58% of training is face-to-face.

E-learning EXPLODES 7

E-learning will see the strongest growth

(15%)especially for lower leader levels in the organization.Source: Bersin & Assoc – Corporate Learning Factbook January 2010

90% of surveyed

organizations said that they are using online

learning programs or plan to in the next 12

months

Coaching market is growing. 8

Informal learning becomes mainstream.9

Source: Bersin & Associates, 2009

On Demand• E-Learning, Search, Books, Articles, Videos, Podcasts.

Social• Wikis, Blogs, Forums, Social Networks, Communities

of Practice.

Embedded• Feedback, After Action Reviews, Development

Planning, Quality Circles.

Three categories of informal learning

Clients and Competitors Leverage Social Networking

In addition to the popular social networking sites such as Facebook and LinkedIn, organizations are beginning to implement

enterprise social networks

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11 Mobile Learning is on the Move

Mobility is Everywhere

In summary1. Business-Driven HR is necessary.2. Good talent is hard to find…and retain.3. Diversity is redefined.4. Leadership Development is still a top priority.5. Innovation & Creativity are critical leadership

qualities.6. Face-to-face training reigns. 7. E-learning explodes.8. Coaching market is growing.9. Informal learning becomes mainstream.10.Clients and competitors leverage social networking.11.Mobile learning is on the move.

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questions? 11

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