April 14, 2008

Open Source ERP Reaches 10% of College Campuses

eLearn Magazine writes that open source software seems to be gaining in popularity, with Alexa Web traffic data showing Moodle’s web traffic in second place among LMS providers, trailing Blackboard. Examples of other open source LMS options include Sakai, Tutor, Claroline, and OLAT.

The Campus Computing Project conducted by EDUCAUSE in 2007 interviewed CIOs and other senior campus officials from 555 institutions on the usage of open source software. The survey found that non backend open source software such as those that belong to the Enterprise Resource Planning (ERP) category had a less than 30 percent usage rate because. Nonetheless, the acceptance rates for Sakai and Moodle are growing according to the same report. Data from 2007 suggests that 10 percent of campuses have standardized on an open-source ERP application, with upwards of 20 percent in private four-year colleges, where Moodle is the favorite open source option. UCLA has previously announced that it planned to fully migrate to Moodle by fall 2008 and could serve as an example for other universities that wish to migrate.

In a study conducted last year by the Mellon Foundation, cost, performance, and control are the three major concerns users have about commercial software, while legal issues and liability are what worry users in terms of open source. While some believe that tight budgets on college campuses might drive the popularity of open source, Kenneth Green, director of Campus Computing Project, observes that open source is not free due to support costs. Shahron Williams von Rooij, an assistant professor at George Mason University, has not seen any hard data demonstrating cost-saving benefits to open source in the two surveys she has conducted, encompassing 772 chief information officers and chief academic officers.

Preliminary Ruling Rejects Blackboard's Patent

The Chronicle of Higher Education reports that in late March, the U.S. Patent and Trademark Office issued a preliminary decision that rejects all 44 claims Blackboard Inc. made regarding the controversial patent it was granted for an online-learning system. If upheld, the decision could have sweeping ramifications for Blackboard's competitors and universities that use course-management software. The "nonfinal" decision was made public on March 31, and both sides will have a chance to comment before a final order is issued. Blackboard can also appeal the final decision.

A federal jury in Lufkin, Texas, awarded Blackboard $3.1-million after rejecting Desire2Learn's position that the patent was invalid (The Chronicle, March 7, 2008), and the judge in that case later issued an order banning Desire2Learn from selling its course-management software in the United States, pending a 60-day stay (The Chronicle, March 12).

At that time, Desire2Learn appealed the jury's decision, and the company's president said he was optimistic that the verdict would be overturned. "Our hope is that at the end of the day, we don't have to pay Blackboard anything," John Baker, president and chief executive of Desire2Learn, said in an interview on Friday.

Desire2Learn, which is based in Kitchener, Ontario, posted a copy of the patent office's action on its blog. "We're thrilled that the patent office rejected all 44 claims of Blackboard's patent," Mr. Baker said. "It's great to finally be on the offensive instead of the defensive."

The Canadian company recently released an updated version of its education software that Mr. Baker said does not infringe the disputed patent. Meanwhile, Blackboard officials expressed confidence that the patent office's procedure would only serve to strengthen its patent claim.

For more, go to http://chronicle.com/free/2008/03/2306n.htm.

Online Providers Slapped with Patent Lawsuits

A company called Digital-Vending Services International (DVSI) filed suit in federal court (East District of Texas) against Capella Education Co., Apollo Group Inc., and Laureate Education Inc., alleging violation of a patent held by Washington-based Community Learning and Information Network Inc., which develops distance learning tools that, according to Bloomberg News, include work for the federal government. DVSI is charged with licensing the patents that, again according to Bloomberg, relate to the management of online coursework. DVSI is seeking a court order that would block use of its inventions, plus cash compensation.

Signal Hill analysts report in a recent issue of Education Signals that “the case is reminiscent of similar charges brought by Acacia Research Corp. (NASDAQ: ACTG; NR) in 2003 against both for-profit and not-for-profit colleges delivering streaming media content as part of their course offerings. In that situation, a still-private Capella, agreed to undisclosed licensing fees, while other schools banded together to contest the claim. Ultimately the issue seemed to die away.”

Signal Hill adds that all three companies mentioned in the DVSI suit utilize third-party tools to manage their content and their students online, with Capella using WebCT/Blackboard and Laureate/Walden using eCollege tools. None of the companies has responded formally, but we do not expect the claim, even in the unlikely event it results in a license payment, to end up being material to the companies’ financial performance.

i4cp Adds Masie and Marsh to Board of Directors

Chris Marsh, former chief executive of Unicru, a recruiting software company purchased last year by Kronos, and Elliott Masie, a researcher, futurist and thinker on learning and workplace productivity, have joined the board of directors of The Institute for Corporate Productivity (i4cp). Marsh and Masie will join existing board members Jeffrey Bussgang of IDG Ventures, Patricia Nakache of Trinity Ventures, and Kevin Oakes, founder and CEO of i4cp.

“Chris and Elliott are two of the leading thinkers and most accomplished business leaders in the field of human capital,” said Oakes. “Their experience lends perfectly to our focus of providing corporate executives with a safe and private peer community, anchored by decades’ worth of industry-leading research, on all issues related to workforce productivity. I’m looking forward to working with both Elliott and Chris as we become the de facto destination for corporations interested in improving the productivity of their workforces.”

As CEO of Unicru, Chris Marsh spearheaded the development of an industry leading talent management solution that led the company to be recognized three out of four years as one of the 500 fastest-growing and most successful companies in the United States, as ranked by Inc. magazine and Deloitte & Touche. “i4cp is unique among research organizations in the industry today,” said Marsh. “The Institute is marrying research, online communities, technologies and measurement tools in a way that lets top executives anticipate and capitalize on the trends that will shape tomorrow’s workforce.”

Elliott Masie is an internationally recognized futurist, author and researcher whose focus is the nexus of learning, technology and business. He leads the Learning Consortium, a coalition of more than 230 Fortune 500 companies, and the Masie Center, a Saratoga Springs, Ney York-based think tank. Masie’s learning-industry accolades include lifetime achievement awards from the American Society of Training and Development and U.S. Department of Defense. He has spent more than 25 years showing major corporations how to tap learning and collaborative technologies to spur profitability.

“I was impressed and intrigued by the opportunity that i4cp has created to build an array of communities of practice that are predicated on a range of research and best practices for business leaders,” said Masie. “I’m focused on how organizations can support learning and knowledge within the workforce. While I have historically not served on corporate boards, my long-standing relationship with Kevin Oakes made me feel this was an important venture. I’m excited to be asked to be part of the growth of i4cp.”

Hidden Dollars in IT Training 

The April issue of T+D magazine reports that the actual dollars spent for IT training are unknown, and decisions are not made in plain view. This might sound like the national intelligence budget, but such characteristics also describe IT training.

Rick Gregory, managing director of North Carolina-based IT Training Community, says 75 percent of decisions made regarding IT training are made by an IT manager and not a member of the training department. He attributes this in part to the knowledge gap between IT managers and training professionals. “Training departments have a hard time understanding what IT departments need,” he says. “To integrate more effectively, trainers need to develop more technical acumen.”

The IT sector spent an estimated $7.3 billion on training in 2007. The cost represents only a fraction of the overall IT training budget, which Gregory believes is largely unrecorded. He calls such accounts “unmanaged to spend,” meaning training dollars are often included in travel costs or additional technology purchases that are not recorded as training expenses. “It’s hard to pinpoint the [actual] IT training budget if you just look at the training function,” he says. The drawback to central decision making is that many IT managers do not have a training background and thus do not possess the experience to judge the effectiveness of a regimen, according to Gregory.

There are three tiers of providers in the IT training field. The giants are companies such as Global Knowledge and New Horizons. The second tier includes CED Solutions, Sunset Learning, and ProTech. Then there are the small organizations that bring in revenues between $200,000 and $5 million.

As IT departments are now considered strategic decision makers, many IT managers are completing training in business analysis to prepare them for boardroom participation. Another ongoing trend is project management training. There are four sectors of IT where separate skill sets exist: infrastructure network, developer-programmer, desktop user, and software applications.

Given the wide range of training needs, Gregory maintains a web portal that allows IT professionals to navigate the terrain. The site (www.trainingindustry.com/ it/) allows users to search for a training professional or company and permits providers to present their qualifications to prospective customers in an environment free from sales pressure. Providers and customers can search the site for free.

Gregory is preparing a report that will list the best IT training companies. The report is expected to be completed this spring. He says he developed the portal as a way for consumers to make informed decisions, citing a “low barrier for entry into training.”

--Michael Laff

March 10, 2008

Right to Privacy Spurs Training

A spike in demand for training on privacy protection is appearing in organizations thanks to increased government mandates and liability concerns inside companies, according to training experts. Privacy-related regulations including data protection have already been adopted within the federal government and private industry, but they’re expected to assume even greater importance soon within the private sector. The initiatives are fueled by fears of identity theft and unauthorized or accidental release of personal records.

The demand for increased privacy protection has already begun. Examples include the Health Insurance Portability and Accountability Act (HIPAA), enacted in 1996 to establish national standards to protect the privacy of recipients of healthcare services and coverage. Other privacy-related laws include the Gramm-Leach-Bliley Act of 1999 related to finance, and the Fair Credit Reporting Act, which was amended in 2003.

Mandatory training requirements outlined in such laws prompted a dramatic upturn in requests for training on privacy issues, according to Norman Ford, director of compliance solutions at content provider SkillSoft. “There is lot of confusion about personal information that organizations need to protect, and how they need to protect it,” Ford says. “Something as innocuous as asking for a telephone number can expose a company to liability.”

Those concerns will increase further when Congress revises privacy provisions in the Patriot Act and the Foreign Intelligence Surveillance Act, Ford predicts. Meanwhile, laws and compliance training mandates written specifically for the federal government are expected to migrate into the private sector eventually. One possible candidate is the Federal Information Security Management Act, a new law that requires every federal agency to provide information security for their information-technology (IT) systems.

The U.S. Department of Defense issued a new regulation that dictates specific levels of certification and training for individuals throughout the military and its suppliers throughout the world. Known as Directive 8570.1, it’s the subject of intense training by IT training providers such as Global Knowledge. The directive is a likely prototype for security training throughout the government, says Global Knowledge executive Kevin Rogers.

While high-profile laws such as Sarbanes-Oxley garner media attention, employers are facing an unprecedented level of required training in all sorts of areas. There is the panoply of laws affecting environment, safety, and health, and HR compliance regarding Equal Employment Opportunity, just for starters. Even where employers aren’t being ordered to train, they often do so to avoid liability. For example, training providers report increased demands for training on ergonomics issues despite the lack of any official driver.

Another emerging trend in compliance training is greater use of e-learning as a delivery tool. SkillSoft and other e-learning providers again predict double digit growth in 2008 for compliance products, continuing the pattern of recent years. Even so, “the compliance training market in e-learning is still in its infancy,” Ford says.

One reason why is the principal point of contact at many companies— the risk manager. That individual is by definition risk-averse and typically not an early adopter of new technologies, says Ford.

E-learning’s expanding role in the delivery of compliance-related training has also received a powerful endorsement from the California state government. At issue is the state’s three-year- old sexual harassment training law, which requires most employers to provide their California-based supervisors with sexual harassment training. Final regulations issued last August explicitly approve e-learning and webinars as methods of achieving compliance with the law. They also detail the type of web-based learning programs that satisfy its mandate.

The rules stipulate that e-learning must be sufficiently interactive so that employees can ask questions of a qualified trainer and have them answered within two days. They do not permit content that consists of a one-way “information dump” or excessive amounts of passive reading. Also included are guidelines for development of in-house sexual harassment training programs and selection of content from external training vendors. The California law may be a nuisance to some employers, but it’s being hailed by e-learning content providers as an important precedent for future government mandates of compliance training.

By Paul Harris, T+D magazine

Training Ranks #21 on Jobfox’s Top 25 Most Wanted U.S. Professions

Despite warnings of a slower-growing economy, a number of highly skilled professionals—software developers, nurses, sales representatives, and trainers, for example—remain in high demand to fill critical roles for U.S. companies, according to new Jobfox Top 25 Most Wanted U.S. Professions rankings released today.

"These are professions that are thriving and will continue to be in demand for the foreseeable future," says Rob McGovern, the CEO of Jobfox (www.jobfox.com), a website that intelligently matches, alerts, and connects personally branded candidates with employers. "While hiring activity is reportedly slow in some industry sectors—construction and manufacturing, for example—companies continue to go after a host of high-impact professions requiring degrees or specialized skills."

Software Design/Development, Nursing, Accounting/Finance Executive, Sales/Business Development Representative and Administrative Assistant are the top five most active professions in the March 2008 rankings. The report reflects the professions most often targeted by employers and recruiters using Jobfox to search for and find new or replacement workers during a 120-day period.

Training hits the list at number 21, with an average salary of $55K-$65K. JobFox defines training as “creating or delivering corporate or professional training programs via traditional educational environments, as well as online or by video conferencing.”

The March 2008 Jobfox Top 25 Most Wanted U.S. Professions rankings were derived from a stratified random sample of more than 4,000 U.S. job openings from the Jobfox database during a 120-day period ending February 21, 2008. In total, Jobfox identified more than 150 distinct professions for which employers were seeking candidates during the period. Also captured in the rankings are the median salary ranges desired by candidates for top-ranked professions. A stratified random sample of more than 100,000 Jobfox candidate profiles, matched to specific professions, was used to determine median salaries for each profession.

The complete list of rankings is available at www.jobfox.com/Site/PressRoom.aspx. Along with the rankings of the top professions, the report includes the median salary ranges sought by Jobfox candidates with matching profession profiles.

The Kenexa Research Institute Finds That Talent Management Makes A Difference

For many years, academics and practitioners have recognized the influence of talent management (e.g., career path programs, goal development and monitoring, regular feedback sessions with managers, tracking progress) on employee execution and motivation to complete a task. What might have been overlooked is the positive effect that an organization’s talent management practices have on how an employee feels about the capabilities of their manager, their job satisfaction and their intent to stay with the organization.

Research conducted by the Kenexa Research Institute (KRI), a division of talent acquisition and retention solutions provider Kenexa, evaluated workers’ views of their organization’s dedication to talent management and its effect on employee engagement. The results from the latest cross-culture study indicate that among the six countries surveyed, only 25 percent of workers believe their organizations provide strong guidance in terms of goal setting, managerial feedback and career development. Workers in the United States are more likely (53 percent) to indicate their organizations invest in and regularly practice talent management, compared to approximately 10 percent of surveyed workers in Germany and China.

Across all six countries, organizations with a focus on talent management have employees who are more engaged, and who are more satisfied with their job and the company overall. Having a strong talent management culture also favorably impacts how workers rate their pride in their organization and willingness to recommend it as a place to work. Additionally, if employees have favorable views of the organization’s talent management practices, they are more likely to have confidence in the future of the organization.

Employees who believe in their company’s talent management efforts also have more favorable opinions of their management. These employees believe their manager effectively manages the workload and that senior management demonstrates employees are important to the success of the company. They are also more likely to feel a sense of job security, be satisfied with on-the-job training, feel that performance is evaluated fairly and experience greater feelings of personal accomplishment.

“People have a fundamental need to know how they are doing and what the future holds for them. It’s simply part of who we are. Organizations that understand this and have the process in place to make it happen have an advantage over their competitors. Not only are they going to outperform their competitors, but they are building a more engaged and committed workforce. Those who don’t get it are the ones constantly scrambling for talent and spending a lot more on recruitment and training. Their customers also know this and are less loyal, as a result,” says Jack Wiley, executive direction, Kenexa Research Institute

The report is based on the analysis of data drawn from a representative sample of workers surveyed in 2007 through WorkTrends^™, KRI’s annual survey of worker opinions. The survey included workers from Brazil, China, Germany, India, the United Kingdom, and the United States.

SkillSoft Survey Shows Companies Should Do More On-The-Job Training

SkillSoft, a provider of on-demand e-learning and performance support solutions for global enterprises, government, education, and small- to medium-sized businesses, recently announced a study that indicates that eight out of 10 employees would have higher job satisfaction levels if they received more on-the-job training. But, a SkillSoft survey also found, nearly three of those same 10 workers don’t have this opportunity because they don’t have access to any ongoing training in their workplace.

The surprising information came to light as part of a comprehensive survey commissioned by SkillSoft in which more than 200 employees working in entry-level to executive positions in IT, sales and marketing, customer service, finance, human resources, and administration were interviewed. Roughly 80 percent of workers said they would be more satisfied if they were given additional training. Nearly 28 percent of respondents said they work in companies where there is no ongoing training to help them further develop their skills.

“We at SkillSoft believe in helping organizations reach their corporate objectives, and a large part of that is achieved by their employees developing the right mix of skills to continually achieve this success,” says John Ambrose, senior vice president of strategy, corporate development, and emerging business for SkillSoft. “Enabling workers to be exposed to best practices and significant amounts of formal and informal learning assets pave the way for better business performance.”

The SkillSoft-sponsored survey was conducted by Infosurv, a full service market research company. Invosurv’s online sampling partner for this survey was Greenfield Online, who developed the first online respondent panel in 1994. More than 40 percent have been in their field for over 10 years and almost half were from the field of information technology. The study included participants from all areas of the United States and more than 60 percent have been with their employer for more than three years.

Code of Ethics Required for Federal Contractors

Seeking to ensure more ethical behavior from federal contractors, the U.S. government issued new rules that will require large contractors to offer formal ethics and compliance training programs to their employees and to adopt written codes of ethics.

The new guidelines establish a policy that all federal government contractors should have a written code of business ethics and conduct. Contractors should also establish an internal control system that facilitates discovery of improper activity in connection with federal contracts and ensures corrective measures are instituted promptly.

In some cases compliance with the policy is voluntary, but for large contracts the requirements are mandatory. Contractors submitting bids for contracts of $5 million or more where performance of the contract is expected to exceed 120 days must adopt their written code of ethics within 30 days and implement the training and internal control system components within 90 days of the contract award.

A copy of the code of ethics must be provided to each employee working on the contract. Agency contracting officers can extend the implementation period at the request of the contractor. The rules do not specify the required elements for the training program, giving flexibility in design and implementation to organizations.

The internal control system should include periodic reviews of the organization’s business practices and policies for compliance with government contracting requirements, an internal reporting mechanism to encourage employees to report suspected incidents of misconduct, internal or external audits, and disciplinary action for improper activities.

Carl E. Anderson, an attorney with Barley Snyder in York, Pennsylvania, believes the new regulations will have a meaningful impact on federal contractors. “These regulations impose, in the context of many small privately owned government contractors, the same ethical considerations and standards applicable to large public companies under Sarbanes-Oxley,” he says.

To view the final rule, visit www.regulations.gov and search “FAR Case 2006-007.”

--Kermit Kaleba is senior policy specialist for ASTD; kkaleba@astd.org.

February 4, 2008

Virtual Worlds Coming to Your Business, Forrester Predicts

In five years, enterprise versions of online virtual worlds like Second Life will be just as important to business as the web is today, predicts Forrester Research in its new report, "Getting Work Done in Virtual Worlds."  The report concludes that executives should begin investigating and experimenting with virtual worlds soon because of their promise for remote collaboration, training, and the ability to build and share 3D models.

The report said that today's collaboration tools offer far more limited benefits to companies. For example, the inability to see the gestures of fellow meeting goers causes problems for attendees in different offices, the report noted. In a virtual world, people can have their name, job title and business unit associated with an avatar that can attend meetings and have access to virtual buildings, rooms, equipment and people, Forrester said.

According to the report, "You can easily direct your avatar to express gestures and emotions ... plus you can leave behind real-world unpleasantness such as the poor heat in your cubicle while your next door neighbor is burning or the loud guy talking the phone next to you." The report adds, "[In meetings] you always know who is talking and who's anxious to jump into conversation because they are waving their hand or jumping up and down in the corner of the room.

The virtual model is especially important for professionals like surgeons, architects, engineers and product designers, who use CAD models or visualization systems to explore or create projects, Forrester said. In virtual meetings, these professionals can import models for discussion and modification.

Virtual worlds can also eliminate the expense of remote training and provide a better experience by simulating on the job experiences as well as recording the training so that multiple sessions can be run across time zones and different job descriptions, according to Forrester.

The report noted that the University of Maryland worked with the I-95 Corridor Coalition to build a virtual world simulation of highway emergencies using the OLIVE Platform from Forterra Systems Inc., which allows participants to assume a role like a firefighter or police officer and interact with others in a simulated emergency.

In addition, it said that Duke University and Virtual Heroes Inc. are collaborating to create a high-fidelity 3D virtual environment for health care. That effort, funded by the US Army, combines gaming concepts with health care coordination to help train health care professionals in team work and communication skills.

The research effort did find that many businesses are holding back from virtual efforts due to the notion of some people that virtual worlds are frivolous places "where deviant personalities can exhibit their alter egos" and by the advanced skills -- similar to those used by sophisticated gamers -- required to operate one, it said. In addition, typical materials associated with meetings like word processing documents and spreadsheets are likely to be missing from a virtual world. Finally, virtual worlds are usually bandwidth hogs that are likely to hang or require multiple reboots, Forrester added.

Erica Driver, the Forrester analyst who authored the report, says it might take businesses a little while to ready themselves for a foray into virtual worlds. It is very large organizations that the report cites as leading adopters; projects at places like IBM, BP, Intel, and the U.S. Army are going ahead. For many others, it will take not only resources, but much training for users to make virtual worlds productive.

To offset such challenges, Forrester recommends that companies first experiment with a virtual world, where set up costs can be as low as $60 per user per month. At the same time, companies should set up policies defining the acceptable use of virtual world and "keep a laser-like focus on the desired outcome" like making remote workers feel more like a part of the company or reducing manufacturing costs, the report noted.

Unlike social networking sites like Facebook, blogging software and other online applications, participating in a virtual world takes both know-how and practice (think of learning how to create an avatar, manipulating it in the virtual world and more). It’s no wonder that virtual worlds haven’t been quite as widely embraced. A Comscore report in May 2007 said that the most popular virtual world for consumers, Second Life, counted about 1.3 million active users.

While Driver says it’s not too difficult to navigate virtual worlds with some practice, it still takes time and needs to be easier to use. But as developers make these online applications easier to use, Driver says virtual worlds will become attractive for organizations that have distributed staffs and many remote workers.

Changes to Apprenticeship Program Could Be Forthcoming

Apprenticeship has been an effective model of on-the-job training for centuries. The U.S. Department of Labor is seeking to update it for the 21^st century.

In December, the department issued a Notice of Proposed Rulemaking (NPRM) to update the rules for the National Apprenticeship System. The voluntary, industry-driven training program was created in the 1930s to promote the establishment of registered apprenticeship programs and provide training and welfare standards for apprentices. More than 460,000 apprentices participate in 28,000 programs nationally. Registered programs are eligible for federal and state contracts, grants, and other assistance.

One proposed change would expand the number of pathways to apprenticeship completion and certification. Under the current model, apprentices must complete a specific number of on-the-job and technical instruction hours. Under the proposed rule change, instruction hours would be supplemented by a competency-based approach, in which candidates would be required to demonstrate competency in defined subject areas without specific time requirements; and a hybrid model combining the time and competency-based approaches.

The rule change is welcomed by Stephen Mandes, executive director of the National Institute for Metalworking Skills in Fairfax, Virginia, which has developed a competency-based model in response to the needs of the precision manufacturing industry. Mandes notes that many of his member organizations had begun to move away from apprenticeship programs earlier this decade because the time-based approach was not producing results.

“The competency-based approach provides greater certainty to employers and employees alike that employees possess the skills they need,” says Mandes, who adds the changes reflect the changing needs of the economy.

Other proposed changes include:

• permitting the use of  technology-based and distance learning in technical instruction
• adding new requirements for apprenticeship instructors that include a requirement that instructors be familiar with training techniques and adult learning styles
• improving linkages of state apprenticeship agencies with the public workforce investment system under the Workforce Investment Act.

Workplace learning and performance professionals working with registered apprenticeship programs can submit comments. The NPRM will remain open for public comment through February 11, 2008, after which the Department of Labor will issue its final regulations.

To view the Notice of Proposed Rulemaking, visit http://www.dol.gov/eta/regs/fedreg/proposed/2007024178.pdf.

--Kermit Kaleba

2008 Corporate Learning Factbook Values U.S. Training Market at $58.5B

Although management represents a small percentage of the corporate workforce, it gets the lion’s share of the corporate training budget, according to Bersin & Associates’s  recently published 2008 Corporate Learning Factbook. Approximately 21 percent of training program dollars is spent on leadership development and management/supervisory training. 

“Corporations are investing heavily in current and up-and-coming leaders,” said Josh Bersin, president of Bersin & Associates, the only research and advisory firm solely focused on enterprise learning and talent management.  “We see an emphasis in this area across all sectors.  Looming retirements, gaps in management talent, and economic pressures are causing companies to funnel dollars into their leadership pipelines.”  

One of the company’s most popular studies, the 77-page 2008 Corporate Learning Factbook analyzes a wide range of metrics, including 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, and outsourcing spending.

Among its findings:  

• The corporate learning market grew slightly from 2006 to 2007, increasing from $55.8B to $58.5.  Spending on products and services grew from $15.8B in 2006 to $16.38B in 2007.
• The average spending per learner is $1,202, a figure that is roughly equivalent to last year.  The highest spending sector is finance and insurance ($1,061 per learner) and the lowest is retail ($594 per learner).
• While management/supervisory training and leadership development is a top priority overall, specific industries invest heavily in other employee audiences as well.  For instance, in telecommunications, 23 percent of training program dollars is spent on customer service training; technology companies invest 29 percent of training dollars on sales training; and pharmaceuticals spend 25 percent on compliance and other mandatory training. 
• E-learning has grown dramatically.  The use of self-study e-learning now accounts for 20 percent of student hours, up from last year’s figure of 15 percent. This growth is driven largely by an increase in online training among small organizations (100-999 employees), which are acquiring the skills and technology to make online training a reality.
• The younger generation of learners is driving changes in learning strategies. This year’s study shows a sharp increase in new web-based and collaborative learning resources, such as podcasts, communities of practice, blogs, and wikis. 
• Reliance on outsourcing continues to increase in two categories:  the use of outside instructors and custom content development.  Outsourcing of LMS administration showed a decline in 2007, as did use of offshore content developers.
• Today 38 percent of organizations are using a learning management system (LMS), with the highest growth in usage among mid-market buyers. Over half of all companies are using a virtual classroom tool, and between 20 to 30 percent are using application simulation and rapid e-learning tools.

For more information, including a table of contents, go to www.bersin.com/factbook.

Supervisory, Leadership, and Diversity Training to Rise in 2008

Both spending and staff time will be boosted in 2008 for supervisory, leadership, and diversity training, according to an annual survey of more than 2,500 senior HR executives by Novations Group, a global consulting organization based in Boston.

Supervisory/management skills and leadership/executive development headed the list of 15 kinds of content, followed by diversity/inclusion training. Supervisory and leadership content both topped the list a year ago as well, but this year diversity/inclusion jumped seven points, the largest increase anticipated in the survey.

"Training and development budgets shouldn’t and don’t change dramatically from year to year," said Novations CEO and president Mike Hyter. "To the degree that training is regarded by senior management as a fundamental strategic tool and the planning is based on business objectives, priorities may shift modestly but are generally consistent over time. Nevertheless, we see greater emphasis on building management bench strength as baby boomers begin to retire."

The anticipated hike in diversity and inclusion budgets comes as no surprise to Hyter. "Diversity content today has less to do with addressing past grievances than with giving middle-level people greater opportunities for growth. In effect, diversity and inclusion [training] is increasingly an extension of mainstream supervisory and executive development programs."

Hyter expects more employers to build alliances with training organizations in order to leverage resources more effectively. "Outside trainers will be asked to develop specific competencies, while basic needs will be met by in-house staff."

Generational issues will also draw greater attention as employers address the gap between baby boomers and their replacements, said Hyter. "Succession planning will rise to the top of the training and development agenda. And organizations will expand talent management efforts that look at an employee’s entire life cycle in an integrated way."

Equation Research conducted the Internet survey of 2,556 senior HR and workplace learning executives in December 2007.

Short-Sighted Changes Prevent HR from Becoming True Asset

The February issue of T+D reports that more than 84 percent of 150 global companies surveyed in a new study say they are revamping their HR functions, but many are missing an opportunity to build value and make the department an integral part of the company’s business strategy.

The survey conducted by Deloitte Consulting indicated that revamping HR is still mostly about savings, systems, and processes, despite rising demands for HR function to meet the challenges of an increasingly competitive business environment.

One strategy that companies are still using to improve their HR functions is outsourcing administrative activities while retaining HR’s strategic capabilities in-house. Approximately 40 percent of surveyed companies that are transforming HR have outsourced some routine activities such as compensation and benefits (94 percent), HR administration inquiry (94 percent), shared service center operations (88 percent), HR information system (88 percent), and payroll (85 percent).

Other companies are now looking to outsource more strategic HR activities, such as training and development (42 percent), recruiting and staffing (36 percent), compliance (36 percent), talent management (27 percent) and global mobility (21 percent).

“HR needs to focus more on supporting business objectives—revenue growth and talent,” said Robin Lissak, Deloitte Consulting principal and director of the survey. “For instance, new market entry is an important growth strategy for many companies and is often a risky proposition because talent can’t be sourced, retained or trained in the company’s culture. It is clear to us that a long-term focus can have a bigger positive impact on corporate results.”

The primary motivations behind HR improvements continue to be cost savings or efficiency (85 percent) and effectiveness of service (75 percent). Only one-third of respondents cite building HR capability as a driver for the overhaul and even fewer (30 percent) responded that they were making improvements to free HR to undertake a more strategic role.

Some organizations are moving toward business-HR alignment and are identifying key business issues that are driving future HR improvements—training the next generation of leaders (40 percent); building and managing a global workforce (33 percent); mergers and acquisitions (31 percent); and an aging workforce (27 percent). However, only 40 percent of respondents have structured processes for future HR planning. This is clearly an area that needs improvement as HR will likely find it difficult to support business strategy without a formal mechanism to solidify this alignment.

January 22, 2008