www.AscendisLearning.com
©2010 Drake Resource Group, Inc. All rights reserved.
“During such times…it is the choice and depth of focus – and not the
          breadth and speed of expansion – that lead ...
What might this mean for core business objectives in
                                 today’s business climate change?

  ...
More than one-fifth
                          Do you have plans to look for                                               ...
Labor shortages mean that firms may need to compete for
                   skilled workers, and small businesses are somet...
Upcoming demographic trends will compound
                      the challenges in employee recruitment and retention.

   ...
The growing non-profit sector is also reeling
                                                 from economic changes.

   ...
In a recent corporate learning strategy survey,
                     40% of respondents reported that the economy
        ...
Major findings:
                                         52.8% restricted travel to a high or very high degree
           ...
“…Business leaders now understand that an ongoing financial and
                    operational commitment is required to ...
Despite the worst economic conditions in several decades,
                business leaders continue to allocate substantia...
Direct             Learning        Direct                 Direct            Direct              % of
                     ...
Areas of increased focus on training and
                                             development over the next 12 months
...
Learning executives (LXs) revealed outsourcing
                                            is anticipated to increase.

  ...
Evidence shows that workers have incorporated e-learning
                   for their own self-directed activities on a ma...
Intended use of Web 2.0 in next three years
                                                               1.7
           ...
Associations, non-profits and small businesses run
                                      on interpersonal relationships.

...
Drake believes Ascendis Learning Connection is a crucial tool for
                               today’s business environm...
www.AscendisLearning.com

               A Product of Drake Resource Group




                                           ...
Innovative Learning Strategies For Small And Midsized Organizations
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Innovative Learning Strategies For Small And Midsized Organizations

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March 2010 presentation to CEOs of small and mid-sized organizations regarding investment trends in professional development.

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Transcript of "Innovative Learning Strategies For Small And Midsized Organizations"

  1. 1. www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved.
  2. 2. “During such times…it is the choice and depth of focus – and not the breadth and speed of expansion – that lead to sustained, profitable growth. …The key to unlocking hidden sources of growth and profits is usually not to abandon the core business but to focus on it with renewed vigor and a new level of creativity.” Chris Zook , James Allen, Profit from the Core: A Return to Growth in Turbulent Times. Harvard Business Press; Feb 2010. 1 www.AscendisLearning.com Emphasis added. ©2010 Drake Resource Group, Inc. All rights reserved.
  3. 3. What might this mean for core business objectives in today’s business climate change? Focus on Strengths Retain Customers Eliminate / retool poor investments Capitalize on opportunities Retain / recruit / grow talent 2 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved.
  4. 4. More than one-fifth Do you have plans to look for (22%) of surveyed new employment? Generation X employees (ages 30-44) have been actively job 6% Seeking/plan to hunting over the past seek new employment year, citing “lack of career progress” as the Expect to stay leading reason (40%). 45% 49% with current employer Academic research indicates nearly 40% of employees are likely to Don't know act on their turnover intentions. Survey respondents include: salaried employees (40%), managers (28%), hourly employees (6%) and part-time employees (4%). Representative samples were surveyed across 4 generations present in today’s workforce. Source: Managing Talent in a Turbulent Economy: Keeping Your Team in Tact, 3 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. Deloitte; Sept 2009.
  5. 5. Labor shortages mean that firms may need to compete for skilled workers, and small businesses are sometimes at a competitive disadvantage in outbidding larger firms. When these positions go unfilled, small businesses are forced to seek other alternatives, such as having employees work more hours, leaving positions vacant, or turning down work. The Small Business Economy: A Report to the President 4 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. Small Business Administration; 2009.
  6. 6. Upcoming demographic trends will compound the challenges in employee recruitment and retention. The Baby Boom generation comprises 78.2 million Americans. The first wave of this group has already begun to retire, a process that will accelerate over the next decade. Firms will see a mass exodus of institutional knowledge that will be hard to replace. Many entice retirees to delay their departure in order to capture their knowledge and to train others to step into these roles. This shift could lead to labor shortages, particularly in technological and health occupations. The Small Business Economy: A Report to the President 5 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. Small Business Administration; 2009.
  7. 7. The growing non-profit sector is also reeling from economic changes. 60% reported cutting operating budgets for 2009; 80% are taking actions to control budgets 61% reduced travel budgets; 68% limited staff attendance at conferences (often a primary source for professional development) 45% of foundations eliminated salary increases 27% instituted hiring freezes 6% eliminated positions; 6% laid off staff Foundations Respond to the Needs of Families Even as Their Assets Have Declined 6 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. Council on Foundations; 2009.
  8. 8. In a recent corporate learning strategy survey, 40% of respondents reported that the economy had forced their organizations to reduce learning resources to a high or very high degree. 67.2% of those surveyed said they were looking for ways to be more efficient and effective with tightened budgets. 37.9% said their organizations were emphasizing learning to a greater extent during the recession. Source: Learning in Tough Economic Times, 7 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. ASTD/i4cp.; Aug 2009.
  9. 9. Major findings: 52.8% restricted travel to a high or very high degree 52.3% cut expenditure on conferences, seminars, and workshops to a high or very high degree Newer/cheaper methods of delivering learning, including e-learning and other online options, gaining popularity Best learning practices point to three emerging themes: Involve subject matter experts in the learning process Leverage technology better Raise awareness of cost issues Source: Learning in Tough Economic Times, 8 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. ASTD/i4cp.; Aug 2009.
  10. 10. “…Business leaders now understand that an ongoing financial and operational commitment is required to leverage human capital to the fullest, especially in difficult times. As economic uncertainty persists, there is an opportunity for the learning function to play an even more important role in preparing for the recovery. Contemporary professionals are demanding as much learning content as they can get, and there are a host of new technologies available to deliver it to them formally and informally.” Source: State of the Industry Report, 9 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. ASTD; Dec 2009.
  11. 11. Despite the worst economic conditions in several decades, business leaders continue to allocate substantial resources to learning functions. In 2008, U.S. organizations spent $134.07 billion on employee learning and development. This amount reflects direct learning expenditures such as the learning function’s staff salaries, administrative learning costs, and non-salary delivery costs. Nearly two-thirds of the U.S. total ($88.59 billion) was spent on the internal learning function, the rest ($45.48 billion) was used on external services. Many organizations were forced to cut expenses in all areas of the business, including training and development, but most maintained a strong financial commitment to employee learning. Source: State of the Industry Report, 10 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. ASTD; Dec 2009.
  12. 12. Direct Learning Direct Direct Direct % of Expenditure per Hours used Expenditure as Expenditure Expenditure Expenditure FTE per FTE % of Payroll as % of as % of Profit for External (Without Benefits and Revenue Services Taxes) Average Corporate Investments Trends 2008 $1,067.74 36.25 2.24% 0.59% 8.75% 21.99% 2007 $1,110.23 37.41 2.15% 0.56% 7.54% 25.18% 2006 $1,040.40 35.06 2.33% 0.52% 6.88% 28.07% 2004 $1.022.43 36.36 2.32% 0.63% 7.48% 28.87% 2003 $1,054.98 26.16 2.31% 1.01% 12.48% 23.23% 2002 $857.07 28.78 2.22% --- --- 22.63% 2001 $799.64 25.50 1.98% --- --- 22.56% 2008 Investment by Organization Size (# of employees) 1-499 $1,159.07 33.29 2.15% 0.69% 7.54% 21.16% 500-9,999 $1,013.02 31.90 2.37% 0.58% 12.39% 21.34% 10,000+ $1,073.29 40.35 2.19% 0.56% 7.35% 22.82% Source: State of the Industry Report, 11 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. ASTD; Dec 2009.
  13. 13. Areas of increased focus on training and development over the next 12 months High-potential employee development 47% Leadership/management development 43% Onboarding, orientation 30% Regulatory, security and risk taking 29% Job-specific - sales, customer service 28% Job-specific - IT, finance, HR 23% Job-specific - operations 23% Source: Managing Talent in a Turbulent Economy: Where Are You on the Recovery Curve?, 12 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. Deloitte; Jan 2010.
  14. 14. Learning executives (LXs) revealed outsourcing is anticipated to increase. 25.1% of LXs report that their utilization of external providers would increase, compared to 24.2% in Q3 and 17.0% in Q2 The effects of the economy continue to be evident among LXs, as a significant majority indicates the current economic conditions will impact the learning function. Only a small proportion (9.9%) of LXs indicates it will have no impact on the learning function in the next six months. Source: Learning Executives Confidence Index (LCXI) 4Q 2009, 13 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. ASTD; Dec 2009
  15. 15. Evidence shows that workers have incorporated e-learning for their own self-directed activities on a massive scale. Social networks, collaborating in online communities, and cloud computing are transforming the way people communicate. The immense potential of social media portals as learning and collaboration tools has not yet been realized, because many professionals are just becoming familiar with them. Learning experts understand the power of these new technologies and have predicted a much more prominent role for them in the near future, for both formal and informal learning. Source: State of the Industry Report, 14 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. ASTD; Dec 2009.
  16. 16. Intended use of Web 2.0 in next three years 1.7 Become more likely to use Web 2.0 in learning 11.8 function Use Web 2.0 in learning at about the same level as current use Become less likely to use Web 2.0 in learning than 86.5 current use Based on responses from 743 high-level business, WLP, and HR professionals. Source: State of the Industry Report, 15 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. ASTD; Dec 2009.
  17. 17. Associations, non-profits and small businesses run on interpersonal relationships. Small business leaders assigned high significance to their employees when defining their personal success as a leader (based on 6 point scale): “quality of my staff ” (5.2) “creating a positive working environment for all” (4.6) “helping others to have income and opportunities” (3.9) America’s small business owners are clearly more focused on people rather than process. Source: The Guardian Life Index: What Matters Most to America’s Small Business Owners, 16 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved. The Guardian Life Small Business Research Institute; Nov 2009.
  18. 18. Drake believes Ascendis Learning Connection is a crucial tool for today’s business environment, helping employees build skills and talents needed for small & mid-sized organizations to compete and grow in the new economy. We agree that small businesses are the key to restarting our nation’s economic engine. We know from experience that easy, anytime access to affordable, relevant learning experiences is vital for employees to remain successful in their jobs. We recognize that organizations need to be innovative and find solutions to enable business growth. For all of these reasons, the time for Ascendis Learning Connection is now. 17 www.AscendisLearning.com ©2010 Drake Resource Group, Inc. All rights reserved.
  19. 19. www.AscendisLearning.com A Product of Drake Resource Group 18 ©2010 Drake Resource Group, Inc. All rights reserved.

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