• Drive: what motivated people in the 19th and 20th Century will not work in the 21st Century - intrinsic motivation (why work) balanced with extrinsic motivation (money)
• Emerging Workforce: Six generations in work at once with rising ethnicity and significant feminisation of the workforce
• Generation Y (and Z and ZZ): what do they want? New ways of working and learning; a purpose-led organisation and social responsibility
• Employer Brand Loyalty: the “war for talent” is not what we think it is: a scarcity of the right skills and an abundance of different types of expertise and life experience
• Machines take over: more intelligent software and computing will allow people to focus on more “value add” activities; machines cannot do (human) customer service!
• Social: networking and collaboration: …. How to JAM
• “Social employment”: governments incent/force private companies to hire young people and older people; relieve youth unemployment and the emerging pensions crises.
• People insights: are as important as customer/marketing or financial information
Change is in the air for HR
Social Learningcreating a new workforce dynamic
Simplify & Standardize to increase HR flexibility and proactivity
Just-in-Time Workforcepools of talent with >33% contingents
“Persuasive” Analyticscan you influence key decisions to create value?
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Today’s workforce is more diverse than ever — For the first time in history you have five different generations of workers engaging and collaborating together to help your business execute its strategy. This workforce is also more diverse by gender and ethnicity, providing a new dynamic of culture, language, and views that must also be harnessed. The 21st-century workforce is not only global, but highly connected, technology-savvy, and demanding. Its employees are youthful, ambitious, and filled with passion and purpose. Millenials are a major force and will represent 75% of the workforce in 2025 and transform customer demands and the workplace. Today’s workers work different — Today’s workforce is more social and mobile. They no longer believe in the hierarchical command-and-control structures of the past where information is isolated in the hands of an elite few. They want greater transparency. They are more inclined to collaborate and share information with co-workers, peers, and partners in an effort to execute and evolve your company’s business strategy. The fundamental structure of the workforce is changing — The increased use of contingent labor is bringing great flexibility to enterprises. Contingent labor represents more than 1/3 of the total workforce at a typical company today (+40% over last 5 yrs) and is growing faster than permanent hires. With the capabilities of Fieldglass, SAP’s recent acquistion, customers can holistically manage their in-house and external, contracted employees. None of our competitors address the contingent workforce from a core HR perspective. As companies increasingly move to more variable operating models, they are embracing new methods of work — outsourcing, crowdsourcing, micro tasking — that are fundamentally changing the definition of what constitutes a workforce. Leaders will begin to view the workforce as pools of talent so they can rapidly assemble the right expertise and skills to execute their business strategy — regardless of whether that talent is an FTE or a contractor. Simplification and standardization - Business processes need to be slimmed down and sometimes eliminated altogether — “melted” — by taking advantage of process automation and standardization on best practices. HR processes tend to be disparate and non-standardized. Organizations are saying, we can’t afford this any more …One of the big promises we see cloud computing delivering on is standardization. If you can standardize, automate and socially enable your processes, your manual processes just melt away and you can focus on the problems and less on the administrative process issues. With SAP-SuccessFactors, you have the maximum flexibility to create your unique differentiating processes on top of those standardized best practices. Talent management remains a top priority for executive leaders: CEOs are still saying talent management is not solved. Critical new skills are scarce—and their uneven distribution around the world is forcing companies to develop innovative new ways to find people, develop capabilities, and share expertise. They know that the key to success is a talented, engaged and properly motivated workforce. How do I engage my workforce? I know that engaged employees are more….productive, profitable, customer-focused, likely to stay and worth more but studies show that 66% of today’s global workforce is not highly engaged!
The public have an insatiable curiosity to know everything, except what is worth knowing.- Oscar Wilde
Curiosity is a ‘passion for learning’.- Cicero
Insatiable curiosity
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We are born with an insatiable curiosity. As children, we are constantly learning – whether it’s how to reach our toes or how to stand up or what happens when we put a finger in a light socket…you get the gist This also came up in the Newsweek story “The Creativity Crisis” (no longer linkable, alas) about signs of declining creativity among our school children. Interesting fact cited in the article: Preschool kids ask their parents an average of 100 questions a day. Quora is a question-and-answer website where questions are created, answered, edited and organized by its community of users. They had 24.7 million visitors in July 2014. In one month. http://www.similarweb.com/website/quora.com Have you heard of duolingo? This is the iPhone app of the year of 2013. It’s a free language-learning and crowdsourced text translation platform. The service is designed so that, as users progress through the lessons, they learn a new language. Duolingo started its private beta in late 2011 and accumulated a waiting list of more than 300,000 users. Duolingo launched for the general public in June of 2012 and as of January 2014 has 25 million users, out of which about 12.5 million are active. There is a thirst for knowledge that goes beyond school.
“Every enterprise is a learning and teaching institution. Training and development must be built into it on all levels—training and development that never stop.” - Peter Drucker
46%more likely to be first to market
37%greater employee productivity
34%better response to customer needs
26%greater ability to deliver “quality products”
17%more likely to be market share leaders
58%more prepared to meet future demand
Bersin & Associates, 2012
Organizations who embrace learning outperform their competition
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Because here’s the thing. Our research shows that companies who embrace learning as a culture significantly outperform their competition. According to Bersin by Deloitte, organizations with a strong learning culture are 46% more likely to be first to market, enjoy 37% greater employee productivity, and are 58% more prepared to meet future demand. Most importantly, they’re 17% more likely to be the market share leader. Learning is essential to any organization’s success because it improves business results, boosts productivity, and increases organizational competitiveness. Learning helps produce positive business outcomes in critical areas and at key moments in an organization’s development, such as mergers and acquisitions, restructurings, and product launches.
For employees, obsolescence is a bigger concern than layoffs
18%
19%
19%
27%
31%
35%
40%Position changing or becoming obsolete
Not enough advancement opportunities
Inadequate staffing
Wage stagnation
Technology changes
Economic uncertainty
Layoffs
SuccessFactors An SAP Company
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You may know about a study we did in partnership with Oxford Economics in Q3 2014. We polled 2700 executives and 2700 employees in twin surveys with 100 of each from 27 countries. To understand the future of work, we used forward-looking questions, and since Millennials will make up at least half of the 2020 workplace, we ensured that half of the employee respondents were Millennials. We also conducted live interviews with executives in each of the countries surveyed. We have a lot of findings from this study, but let’s talk about the ones that pertain to Learning… The numbers are stark. Over half the executives we surveyed say problems with talent and key skills are affecting business performance. Meanwhile, employees say their greatest concern is their position becoming obsolete, with only 50% expecting the skills they have now to be adequate in three years. But fewer than half of respondents in either group say their company has a culture of continuous learning. Nearly half of executives say that challenges in recruiting employees with base-level skills are having an impact on their workforce strategies. Yet just 50% say their organizations have well-defined processes and tools for developing talent, and only 42% say they have the budget and resources they need to support those processes and tools. Similarly, nearly half of employees say their employers have outlined well-defined processes to help them grow and improve their job performance, but barely one-third say their company is actually able to give them the training they need.
Need to overhaul the economics of learning
$1,772
$46b
$1,195
Learning spend on external training expenses
Average cost per learning hour created
Direct expenditure per employee
Source: ASTD, 2011 Study
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In its 2013 State of the Industry report, the Association for Talent Development (ATD), formerly ASTD, revealed the following: $46 billion spent on external training expenses; $1,772 to create one hour of content, up from $1,471 in 2011; and Direct expenditure of $1,195 per employee — $13 higher than the 2011 average.
EVOLVING: not talking about elearning….surprising how many don’t use it all!�- apprenticeships Learning from devices on the job, real time; YouTube – Guitar lessons;…..Guitar Tabs akfsdj
90%The problem is not only a “lack of skills” in organizations it’s a historic problem of lack of investment, poor data quality and an underfunded HR analytics team
– Bersin*
Learning Management is not alone
WORKFORCE BUDGETS,FINANCIAL RESULTS &EXPENSES
*High-impact Talent Analytics: Building a World-class HR Measurement and Analytics Function. Bersin by Deloitte. 2013
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Only 4% of large organizations have any ability to “predict” or “model” their future workforce – but more than 90% can model and predict future budgets, financial results and expenses.
Operating IncomeMinus:Interest, Extraordinary Items and Taxes (EBIT)
Net ProfitSG&A
R & D
What business wants to know isHow learning management affects all element of their income statement
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Better Targeting of Training Implementing a Learning Management System and integrating your training and performance cycles allow for more targeted and efficient training. Our customers typically save between 10 - 20% of annual training spend due to better targeting of training. More Efficient Learning Mix Implementing a Learning Management System and integrating your training with multiple level of available platforms allows for more efficient training. Our customers typically save between 15 - 25% of annual training spend due to more efficient learning mix. Depending on where training is performed, this reducts COGS (& Gross Profit) or Operating Expenses.
Only five percent of L&D organizations we surveyed excel at using data to:
5% • Align with the business • Efficiently run the L&D function• Increase the effectiveness of
learning methods
Source: State of Learning Measurement, Bersin by Deloitte, 2015
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When done well, learning measurement can help L&D function better – by becoming more efficient with operations and processes, more effective with quality and relevant content of learning methods, and ensuring more alignment to the business However, when we surveyed over 670 organizations, only 5% said that they exceled at using learning data to become more aligned, efficient, and effective
Data Analysis has already proven:In new sales personnel training course assessments
• No correlation between course assessment scores and post training sales performance
Revenue the samewhether course was rated excellent or poor
Ramp Time identicalwhether course was rated excellent or poor
% improvement equalover personnel who did not attended the coursewhether they rated the course excellent or poor• But Positive correlation with Catering Cost and Venue Temperature
• Do our workers have the right certifications to do their job?
• Are they up to date with your industry and company compliance standards?
• Are we facing fines or work down-time for non-compliance
>1,000 Regulatory Changesper annum since 2011
Not counting Industry regulations Updates
Source: SAP Localization
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Regulatory risk: Changes included a new donations tax in South Africa, additional statutory paternity pay in the U.K., and new forms of pension funds in Russia. (Source: SAP) Business risk: It’s difficult to get even the total number of employees at a company, much less manage a global workforce, keep accurate records, mitigate succession risks, or prevent unwanted turnover of high potentials and top performers.
Once we have insight – prediction and persuasion becomes possible Key areas where predictive/persuasive analytics impact Learning
• Learner Knowledge, Behaviour, Experience & Profile modelling• How different assessment methods affect learning e.g. peer assessment• Early Warning signs providing remedial action for students not performing well
Combined with other data:• Sales Performance• Goals and Development• Customer Advocacy• Future performance against other criteria
e.g. Wastage reduction, Injury
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Turnover modelling: Predict future turnover in your business in specific functions, business units, geographies and countries by looking at factors such as commute time, time since last role change, and performance over time. You can scale your hiring efforts accordingly, reducing empty desk time and panic hiring, leading to lower cost & higher quality hiring Recruitment marketing modelling: Response modelling for marketing channels. Use experience from previous campaigns to avoid using channels that don’t yield results and focus on those channels that work best. Targeted retention: Find out which employees or groups of employees are at high risk of churn and focus retention activities on those groups with the highest need Risk Management: develop a profile of candidates with a higher risk of leaving prematurely or performing below standard. Talent Forecasting: Being able to predict which new hires, based on their profile, are likely to be high fliers and then moving them in to your high potential programs But it can also predict dependent variables: Sales Performance: Predict Sales revenue and consequently all income statement elements Customer Advocacy (via Net Promoter Score) changes as a result of predicted staffing changes Performance against Appraisal framework or tenure before a candidate has been hired and resources deployed to establish that individual in your organisation
Headlines - Simplifies ComplexityPersonal, business focused executive communication
Combining natural language with analytics and metrics for improved decision making, action and business impact – both broad and deep
“The holy grail of analytics is to put analytics and metrics in the hands of business users”Holger Mueller, Constellation Research Group
Learning in the Context of Effective Systems
Any Learning Mode (Formal, Informal Self-Directed, Social) with Any Content
HRIS
Collaboration/Jam Learning Management System (LMS) Content
Classroom and Virtual ILT
eLearning Assessments / Exams Task Based OJT
Certifications
SMEExperiential OJT
Knowledge ObjectsMentoring Collaboration
SME Networking
Beautiful, Engaging Learning Experience For Any Audience
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So what is the SuccessFactors Learning solution? First, we have the product aspects of our Learning solution. We power all modes of learning through our Learning Management System. In addition, we support collaboration and communities of practices through SAP’s enterprise collaboration software, SAP Jam. And we provide a comprehensive content strategy for a customer’s custom-built content as well as their off-the-shelf 3rd party content, both of which can be managed with our Content-as-a-Service solution. We also have recently announced our Open Content Network, where we are partnering with MOOC providers so your employees can easily access meaningful content. We have partnerships with lynda.com, Udacity, Coursera and OpenHPI. Your employees may already be taking these courses on their own, but now this will be formalized into the LMS and made available in catalogs, as part of Programs or Curricula, as well as directly assigned to your employees by admins or supervisors. This powerful combination means that we support any modality and methodology of training. We allow for you, within your company, to deploy the right kind of training to the right audience at the right time. One of the most important aspects of our solution is that it’s beautiful and engaging. Not just for employees but also for administrators. Because if it isn’t easy and intuitive, you won’t get adoption. And finally, our Learning solution is unified with the SuccessFactors HCM suite and also integrated with the SAP ERP HCM. ******************************************* We are doing things no one else is doing. We are making significant investments in not only expanding capabilities to support how training orgs do business today, but also developing new ways to identify, source, deploy and maintain training. We support how you want to do your business. There are so many options in the marketplace to provide high quality content, as compared to just five years ago. We are going to go through a bunch of functionality in our session today. Everyone makes such a big deal about social being the next thing, or eLearning being the next thing. What we do know is that the world of instructional design and training has not changed in hundreds of years. People have been showing and teaching other people how to do things for hundreds of years. Social learning which is learning from people around you is what you do all day long. You start this as an infant. Our technology solutions support putting these into an enterprise. It’s more about how people learn than WHAT we sell. So rest assured that we have an LMS, we have Analytics, we have Mobile…and anyone you are considering will have those features. But let’s focus on how we can enable you in your training and development and how we can do it with our learning solution ************************* [some more proof points] SuccessFactors Learning is: Adaptable Supports Continuous learning models Supports anytime/anywhere mobile access to training Is not just for compliance Is content agnostic Satisfies both “push” and “pull” Offers rich analytics Is more engaging and easy to use Will help you transition from event based to continuous learning Enables your employees to easily share ideas quickly You can close skill gaps and develop leaders But it’s not just the functions and features of SuccessFactors Learning that should give you confidence. Education is in our DNA. The founders of SAP have personally funded education initiatives such as the Hasso-Plattner Institute and Academy Cube. SAP Education Services is the largest training center in the world. No one else has the partners, ecosystem, or cash let alone the executive sponsorship that we have. Why am I the partner you want to do business with? This is why. We are going through this journey and we are putting a lot of money behind it. Over the past two decades, millions of employees, organizational leaders and training professionals around the world have discovered SAP – SuccessFactors Learning. We will continue to lead, while innovating and inventing.
Only five percent of L&D organizations we surveyed excel at using data to:5% • Align with the business, • Efficiently run the L&D function• Increase the effectiveness of
learning methods
Source: State of Learning Measurement, Bersin by Deloitte, 2015
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When done well, learning measurement can help L&D function better – by becoming more efficient with operations and processes, more effective with quality and relevant content of learning methods, and ensuring more alignment to the business [switch that to align to slide] However, when we surveyed over 670 organizations, only 5% said that they could excel at using learning data to become more aligned, efficient, and effective
The biggest capability challenge to solid learning measurement is analytical skills
69%Percent of respondents
who said they lacked analytical capabilities to ask the right questions and make connections
with business results
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This gap in effectiveness is not surprising when we looked at L&D’s key capabilities gap. 69% of respondents said that they lacked the necessary analytical skills to ask the right questions (of stakeholders) and make the connections with business results
60%Source: State of Learning Measurement, Bersin by Deloitte, 2015
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Lots of companies focus on ROI; in fact, 60% of the companies we surveyed consider it as one of the most valuable measures of learning’s business impact ROI in and of itself is not bad. And it’s one of those metrics that focuses outside of L&D, which is good But we often see ROI used to justify the existence of a learning program; or sometimes of an L&D department. And this may be a little bit controversial, but because Josh Bersin said it first, I feel better about saying it, But we may want to reconsider putting too much stock into an ROI number for a couple of reasons. First, numbers can lie. Often, changes in the organization have way too many other variables to attribute all of the change to learning programs Secondly, even if you can calculate a solid ROI, what do you do with it? It’s not an actionable metric. You can’t make decisions based on an ROI – you can only show how a particular initiative performed. � In fact, I was at dinner last night with a learning & development professional who had completed this great curriculum and wanted to prove it to her management. She calculated an ROI and it turned out that because of her training, the company could save 48% on insurance costs. That’s huge. But when she took it to her management, they didn’t care. It was in the past. They weren’t able to make any decisions based on the ROI number, and they wanted to know what she was going to do next.
• Better adaptation to the unique needs of diverse audiences
• Enhance learner satisfaction
• Improve ability of employees to meet business objectives
• Satisfy CEO and CFO demands for accountability
Research indicates that better measurement ties to better performance
Alignment Efficiency Effectiveness
Source: State of Learning Measurement, Bersin by Deloitte, 2015
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If we can figure out measurement, we can achieve better alignment, more efficiency, and more effectiveness What gets measured gets improved. Our HILO research has shown that alignment with the business, efficiency of the L&D function, and effectiveness of learning methods are the pillars of a mature learning organization. Learning measurement that is tied to these three pillars will drive better results for both the L&D team and the company. For example, measurement that shows how learning initiatives improve business performance often generates support from managers for continued investment, as well as helps the L&D group build better relationships with business leaders. [pass to Dani]
Presenting data in a visual and digestible form can help ensure that data is clearly communicated
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Three ideas. Communication, data visualization, and plugging into the org. First, communication. You have probably noticed that this is a theme running through this presentation. It’s crucial to have strong working relationships with other functional leaders. Not only that, what you communicate is important. When you’re presenting measurement results, think about how the data helps them make business decisions. Also think about whether or not the data you’re sharing is useful to them. Second, data visualization. In our world with super short attention spans, this is becoming more and more important. Actionable data is data that people can easily understand and apply. Report data that is simple, visual, digestible, and speaks to business results. Think about what technology (e.g., dashboards, visualization tools) would be the most useful and valuable to communicating your results. Also think about leveraging some of your soft skills – story telling, persuasion, ability to motivate – to present data and help leaders make decisions based on that data. Using vitamix as an example again, they mention that they are able to create pretty compelling stories using simple tools – as simple as Excel. By clearly outlining a scenario and clearly articulating what can be done with the data at hand, they’ve been able to develop credibility and move the needle on business results. And then finally, plug into the rest of the organization. More and more organizations are looking for a big picture view of what’s going on, and a lot of times that requires learning data to be used by other systems aside from the LMS and whatever dashboards you’re looking at. Make sure that the data you’re providing is in the right format, and is the right data, to meet the needs of the systems that are going to use it. Additionally, get familiar with other data as well. Not all metrics that are useful to L&D are found in L&D or in the LMS Talked to a company yesterday that did a deep dive of talent management data to set their priorities for the next two years. They have embraced data for story telling. When we focus on providing actionable data, we’re automatically focusing outside of L&D. And when we focus on making it as easy to use and understand as possible by the rest of the organization, we’re on our way to having a real impact on business results. So that wraps up the deep dive into each of these myths. I’m going to toss it back to Wendy to sum everything up for us, and then we’ll open it up to questions.
