October 2013
Mollie Lombardi, Zach Lahey
Executive Summary
Learning is critical to enabling business strategy, from onboarding new hires,
to developing future leaders, to educating channel partners and customers.
This study, based on responses collected from 185 organizations between
July and September 2013, looks at how organizations connect learning to
business priorities, create development programs that impact every stage of
the employee lifecycle, and utilize technology to support learning initiatives.
It also examines the business impact of building learning capability and
running effective learning programs.
Research Benchmark
Aberdeens Research
Benchmarks provide an
in-depth and comprehensive
look into process, procedure,
methodologies, and
technologies with best practice
identification and actionable
recommendations.
Best-in-Class Performance
Aberdeen used the following three key performance criteria to distinguish
Best-in-Class companies:
78% of key roles have one or more ready and willing successor
Required Actions
In addition to the specific recommendations in Chapter Three of this
report, to achieve Best-in-Class performance, companies must:
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Table of Contents
Executive Summary....................................................................................................... 2
Best-in-Class Performance ..................................................................................... 2
Competitive Maturity Assessment ....................................................................... 2
Required Actions...................................................................................................... 2
Chapter One: Benchmarking the Best-in-Class .................................................... 4
Business Context ..................................................................................................... 4
The Maturity Class Framework ............................................................................ 5
The Best-in-Class PACE Model ............................................................................ 6
Best-in-Class Strategies........................................................................................... 7
Chapter Two: Benchmarking Requirements for Success ................................. 12
Capabilities and Enablers ...................................................................................... 13
Chapter Three: Required Actions ......................................................................... 20
Laggard Steps to Success ...................................................................................... 20
Industry Average Steps to Success .................................................................... 20
Best-in-Class Steps to Success ............................................................................ 21
Appendix A: Research Methodology..................................................................... 22
Appendix B: Related Aberdeen Research ............................................................ 24
Figures
Figure 1: Pressures Driving Learning Activities...................................................... 4
Figure 2: Learning Strategies in Place ....................................................................... 8
Figure 3: The Impact of Best-in-Class Learning ..................................................... 9
Figure 4: Groups with Dedicated Learning Programs ........................................ 10
Figure 5: A Consistent Competency Model Pays Off......................................... 15
Figure 6: Recent College Graduates Need a Little TLC .................................... 17
Tables
Table 1: Top Performers Earn Best-in-Class Status.............................................. 6
Table 2: The Best-in-Class PACE Framework ....................................................... 6
Table 3: The Competitive Framework................................................................... 12
Table 4: Learning Methods and Effectiveness ....................................................... 19
Table 5: The PACE Framework Key ...................................................................... 23
Table 6: The Competitive Framework Key .......................................................... 23
Table 7: The Relationship Between PACE and the Competitive Framework
......................................................................................................................................... 23
Chapter One:
Benchmarking the Best-in-Class
Business Context
Learning is fundamental. This is true not only for children and education
systems, but for businesses as well. As organizations begin to emerge from
the murky global economic climate of the last decade, they realized that
being able to build and develop talent from within is a critical capability. In
fact, respondents to Aberdeens 2013 Human Capital Management Trends
study cited identifying, and ultimately closing, gaps between the skills and
capabilities their current workforce and the skills and capabilities required
by future business plans as their top strategic priority (cited by 47%). And
91% of respondents to this study indicate they plan to maintain or increase
their level of investment in learning within the coming year. While
organizations understand the importance of learning and development, their
resources are not unlimited, and they must prioritize their learning
investments on the individuals, technologies, and processes that will yield
the best results. Aberdeens 2013 look at the state of learning and
development has found that two critical groups have become top priorities
college hires and organizational leaders.
Fast Facts
40% of organizations say
their college hires will
require some additional
coaching and training to be
effective members of the
workforce
29% say they will have to
spend significant time training
and developing their college
hires
The need for more leadership talent is the number one pressure driving
learning activities within organizations today (Figure 1). Organizations
understand that leadership talent is not widely available in the open
marketplace, and they must learn how to develop talent from within in
order to remain competitive.
Figure 1: Pressures Driving Learning Activities
29% say they will have to spend significant time training and developing
their college hires
Only 10% indicate that their new college hires are ready to
contribute and get up to speed as quickly as any other new hire
Fast Facts
Only 36% of organizations
indicate they have dedicated
leadership programs for
emerging leaders, and just
19% have programs for new
college hires.
Despite these gaps, only 36% of organizations indicate they had dedicated
leadership programs for emerging leaders, and just 19% have programs for
new college hires though as we will see later in this report, topperforming organizations are much more likely to focus on these groups.
Organizations seem to understand the problem they face, but still lack the
strategies and processes to solve them.
The following sections of this report will look at how organizations that
achieve higher levels of organizational performance differentiate their
approach to learning and development overall, and particularly for these
critical employee groups.
Fast Facts
Best-in-Class:
Top 20%
of aggregate
performance scorers
Industry Average:
Middle 50%
of aggregate
performance scorers
Laggard:
Bottom 30%
of aggregate
performance scorers
Actions
Provide more
consistent
development
experience at all
Capabilities
Performance goals are
agreed to by managers
and employees
Visible senior leadership
Enablers
Pre-hire assessments (Best-in-Class
adoption)
Employee self-service portal for access to
learning
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Pressures
Actions
in the marketplace
career stages
requires
More closely link
development from
learning programs
within
to business goals
Changes to
Define and build a
product, process,
consistent set of
or strategy
competencies to
requiring reguide development
education and
activities
realignment
Capabilities
Enablers
Best-in-Class Strategies
Overwhelmingly, the most common strategy cited by Best-in-Class
organizations is to provide a more consistent development experience at all
career stages (Figure 2). Best-in-Class organizations are 78% more likely
than Laggard organizations to cite this as a top strategy. These topperforming organizations understand that learning is not a one-time
experience, but an ongoing process that must be facilitated throughout an
individuals career. A strategic focus on career-long learning is important
given the gaps that all organizations see among early career professionals,
and among the leadership ranks.
Chapter Two:
Benchmarking Requirements for Success
The right mix of learning strategies, practices, and technologies enables
organizations to achieve business results.
Competitive Assessment
Aberdeen Group analyzed the aggregated metrics of surveyed companies to
determine whether their performance ranked as Best-in-Class, Industry
Average, or Laggard. In addition to having common performance levels, each
class also shared characteristics in five key categories: (1) process (the
approaches they take to execute daily operations); (2) organization
(corporate focus and collaboration among stakeholders); (3) knowledge
management (contextualizing data and exposing it to key stakeholders);
(4) technology (the selection of the appropriate tools and the effective
deployment of those tools); and (5) performance management (the
ability of the organization to measure its results to improve its business).
These characteristics (identified in Table 3) serve as a guideline for best
practices, and correlate directly with Best-in-Class performance across the
key metrics.
Fast Facts
Best-in-Class organizations are:
76% more likely to utilize
user-generated video
content
74% more likely to use twoway video collaboration
tools
54% more likely to use
mobile learning; and
51% more likely to use
social learning tools
in support of their learning
strategies.
Average
Laggards
Process
86%
69%
Organization
78%
70%
62%
65%
46%
Knowledge
78%
43%
Technology
48%
39%
39%
Performance
Best-in-Class
Average
Laggards
76% Pre-hire
assessments
69% Employee
self-service
portal for
access to
learning
65% LMS
64% Employee
performance
management
system
60% Post-hire
assessments
49% Pre-hire
assessments
56% Employee
self-service
portal for
access to
learning
47% LMS
61% Employee
performance
management
system
40% Post-hire
assessments
50% Pre-hire
assessments
37% Employee
self-service
portal for
access to
learning
28% LMS
56% Employee
performance
management
system
48% Post-hire
assessments
50%
50%
Process
Companies understand that while HCM and learning technology leads to a
more productive workforce, the active dialogue between employees and
their managers is what truly separates Best-in-Class companies from the
rest of the pack. When a manager can clearly communicate the needs of the
organization and how an employees individual actions relate to the progress
and growth of the company, there is a greater chance of success.
It comes as no surprise that Best-in-Class companies are 15% more likely
(86% vs. 75%) to have managers and employees agree to performance goals,
as well as 15% more likely (78% vs. 68%) to have managers and employees
agree to development plans than All Others. There is a greater chance
employees will be able to execute on their performance goals when they
also understand the development support they will have to reach those
goals. It is also much easier to hold employees and managers accountable
for performance and development progress when they are on the same
page. Similarly, there is a higher likelihood that managers will stay on top of
communication about internal growth when they are held accountable by
senior leadership to track, report, and share employee performance and
development with them and above.
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Organization
In order to maintain effective learning programs, companies dont just need
buy-in from the employees; they also need full support from senior
leadership. Best-in-Class companies are 34% more likely (79% vs. 59%) to
have visible senior leadership support for learning and development efforts
than All Others. This support is important in multiple ways. First of all,
leaders must model the importance of learning through participation in
learning programs themselves and encouraging their direct reports to do
the same. Senior leaders must also work with learning leaders to ensure
that learning programs and content are closely aligned to business priorities.
Learning cannot be siloed, but in order to break down these barriers senior
leaders must ensure that organizational strategy and priorities are clearly
communicated, so they can serve as the core of all learning initiatives.
As noted in Figure 2, many organizations, particularly Laggards, struggle to
link learning to business priorities. Executive leadership support is critical to
overcoming this barrier. One of the reasons top-performing organizations
may find attaining this level of executive support easier is the fact that, as
mentioned earlier, 63% of Best-in-Class organizations indicated they
possessed the ability to link changes in their profitability to their learning
initiatives. Whats more, 23% of Best-in-Class companies noted the link
could be validated through data. This is an important lesson for
organizations struggling to get leadership buy-in. The more learning can be
tied to metrics that are important to the business, such as profitability, the
more likely they will receive leadership attention. And the more closely
linked learning programs are with business priorities, the easier it will be to
measure this impact.
Knowledge Management
As discussed in Chapter 1, Best-in-Class organizations offer more consistent
learning programs throughout the employee lifecycle, because these
companies have determined that learning is vital to their success and engage
individuals and present learning from their first day on the job all the way
through to leadership development. Best-in-Class companies employ two
key differentiators a consistent competency model used for hiring,
development, and performance management and the ability to map learning
programs directly to employee development plans which allows for the
most effective growth of all levels of employees. Having a consistent
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Technology
Organizations use a wide variety of technologies to support their learning
efforts, but some of the most valuable are focused on understanding the
gaps between individuals capabilities and what is required by the business. In
particular, organizations use pre-hire assessments, notably for college hires,
and post-hire assessments, particularly for senior leadership. Pre-hire
assessments, used by more than three-quarters (76%) of Best-in-Class
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companies, can provide employers with a great deal of insight into the
personal skills, general knowledge, and business acumen of prospective
employees. And of course, having a consistent competency model in place
to guide development gives organizations a basis from which to assess. This
information gives employers a distinct understanding for how much time,
energy, and resources it could take for them to get a candidate up to speed
and ready to contribute. And given the gaps noted previously in college
hires, understanding this investment is critical. Organizations need to
understand which skills and characteristics they will be able to train for, and
which ones they must select for, to ensure that they have candidates who
will be productive quickly. Its also incredibly important to use pre-hire
assessment output to guide learning during the onboarding phase and tailor
this process to focus on what each employee needs to get up to speed.
Fast Facts
51% of current learning
content is estimated to be
unstructured defined as
content learners can access at
will outside of prescribed
learning courses, including
video, chat with subject matter
experts, social learning, etc.
Performance Management
Measuring learning has been an age-old challenge. As every part of the
organization today is under increased scrutiny when it comes to spending,
learning programs and learning organizations must ensure that they are
closely linking their processes and tools to business priorities. Its incredibly
important to have business buy-in when defining the metrics by which
learning programs will be measured. Learning leaders know that
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Fast Facts
Best-in-Class organizations are
63% more likely than All Other
organizations to have an LMS in
place to track and administer
learning (classroom, eLearning,
and/or virtual) programs, as
well as planning and tracking
learner progress or activities.
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Best-inClass
Using
All
Others
Using
4.4
99%
91%
4.14
100%
94%
3.92
100%
97%
3.57
90%
96%
Blended-learning approach
(combining instructor-led
and eLearning)
3.4
89%
76%
Asynchronous, self-paced
eLearning (e.g., on-demand
online content portal)
3.28
93%
79%
Chapter Three:
Required Actions
Whether a company is trying to move its performance in learning from
Laggard to Industry Average, or Industry Average to Best-in-Class, the
following actions will help spur the necessary performance improvements:
Fast Facts
78% of Best-in-Class
organizations have a defined
competency model in place
to guide development
activities.
80% of Best-in-Class
organizations take a blended
learning approach.
Appendix A:
Research Methodology
Between July and September 2013, Aberdeen examined the use, the
experiences, and the intentions of more than 180 enterprises learning to
enhance business performance.
Aberdeen supplemented this online survey effort with telephone interviews
with select survey respondents, gathering additional information on learning
strategies, experiences, and results.
Responding enterprises included the following:
Study Focus
Responding executives
completed an online survey
that included questions
designed to determine the
following:
The degree to which
learning programs were in
place throughout the
organization
The structure and
effectiveness of existing
learning programs
Current and planned use of
technology to support
learning initiatives and
business performance
The benefits, if any, that have
been derived from learning
initiatives
The study aimed to identify
emerging best practices for
learning and learning
technology, and to provide a
framework by which readers
could assess their own
management capabilities.
Appendix B:
Related Aberdeen Research
Related Aberdeen research that forms a companion or reference to this
report includes: