Take an Educated Approach to Developing an LMS Strategy Build an LMS strategy based on corporate objectives and L&D goals by considering the four pillars: content, people, process, and technology. Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with Info-Tech's products and services combine actionable insight with ready-to-use tools ready-to-use tools and templates that cover theand full relevant spectrumadvice of IT concerns. and templates that cover the full spectrum©of IT concerns.© 1997Research - 2016 Info-Tech Research Group 1997-2016 Info-Tech Group Inc. Info-Tech Research Group 1 ANALYST PERSPECTIVE Not sure where to start? Take a multidisciplinary approach to LMS. We are seeing a fundamental shift in learning and development. Organizations are recognizing the value of L&D, and now more than ever are focusing on employee learning and engagement. This is transforming learning from a ‘niceto-have’ to a ‘must-have.’ As a result, organizations are embracing technology as a way to achieve corporate and L&D objectives. The use cases for LMS are evolving. No longer is LMS just a replacement for manual training tracking, but it is a key element of engaging employees in learning. Organizations that are seeing success with LMS are embracing a more unified approach to learn as an organization as well as individually. Integrate LMS with other technology to drive valuable insights and get ahead of the talent war. A multidisciplinary approach is the answer. Jumpstart your LMS project now by creating a sound strategy infused with best practices. Jenna Schroeder, Research Manager, Enterprise Applications Info-Tech Research Group Info-Tech Research Group 2 Framing the project This Research is Is Designed For: This Research Will Help You: IT and application managers that are tasked Make the business case for assessing the with supporting the business through the creation of an LMS strategy. Human resources professionals, training and development specialists, and organizational development specialists responsible for learning mechanism design and delivery. appropriateness of an LMS solution. Audit the inventory of learning and estimate the current learning costs. Create a business model to identify project barriers and enablers, as well as HR and IT objectives. Evaluate solution alternatives in regards to people, process, technology, and content. This Research Will Also Assist: Assist: This Research Will Help You: Them: Organizations looking to develop an LMS Create a common LMS understanding strategy to achieve organizational goals associated with learning and development. between IT, HR, and business stakeholders. Offer guidance on how to translate learning and development needs into LMS technology requirements. Info-Tech Research Group 3 Executive Summary Situation Info-Tech Insight • Application managers and HR professionals are tasked with leveraging a 1. Right-size your LMS solution. Avoid underinvesting or overbuying from the start. LMSs come in all shapes and sizes: don’t buy functions you don’t need. learning management solution to foster a learning culture at their organization. In today’s rapidly changing business environment, the need for more effective and flexible learning and development has become more significant. In the 2015 Mclean & Company Trends Survey, organizations ranked learning and development their number one priority. Complication • Organizations often have difficulty with increasing internal course participation, measuring training effectiveness, and increasing training accessibility. Processes are often manual, resulting in wasted time, resources, and a lack of traceability and visibility between departments. 2. Identify your LMS use case from the start to focus your strategy and filter your needs. 3. A disjointed and departmentalized approach to learning will inevitably fail. Ensure you have a holistic LMS strategy through the necessary convergence of people, process, technology, and content. Resolution • A strong learning and development strategy that leverages a learning management solution will increase L&D efficiencies, • • • • develop in-house talent, thus providing a competitive advantage to organizations in today’s talent war. Take a step back and create a business model that considers the learning needs of HR, IT, and the business. Strive for a holistic strategy and avoid compartmentalized efforts. Understand your use case. Identify your organization’s goals and L&D objectives to choose the LMS use case that is most aligned with your learning needs. Identify your solution alternatives across people, processes, technology, and content. Create a comprehensive roadmap, prioritizing initiatives and identifying dependencies. Devise a plan for implementation. Effectively communicate changes to and put mechanisms in place to ensure effective LMS governance. Info-Tech Research Group 4 Reference our frequently used acronyms LMS Learning Management System Learning & Content LCMS Management System LRS Learning Record Store L&D Learning and Development RFP Request for Proposal SaaS Software as a Service HRIS Human Resource Information System Info-Tech Research Group 5 Businesses must equip themselves with the tools necessary to build their human capital potential 4 million baby boomers are leaving the workforce each year. Source: U.S Federal Government Less than half of HR leaders are confident in finding new talent to fill positions at their companies. Source: Financial Post Organizations need new strategies and better ways to develop their existing employees. The number of organizations that see corporate training as highly important is rapidly increasing. However… The number of organizations that are ready to address this pertinent problem are decreasing. Source: Deloitte Human Capital Report, 2015 Info-Tech Research Group 6 Increase the effectiveness of learning and development functions by investing in HR operations and infrastructure Most Effective Functions in Driving Overall HR Effectiveness Top HR Priorities by Area Learning and development functions, leadership, management, and employee development, and onboarding, comprise the top three HR priorities by area. HR operations and infrastructure rank the most effective function in contributing to overall HR effectiveness. Organizations can increase learning and development effectiveness and respond to HR priorities by implementing supporting HR systems and processes. 1 Leadership/Management Development 1 HR Operations & Infrastructure 2 Employee Development 2 Total Compensation 3 Onboarding 3 Employee Engagement 4 Coaching 4 Talent Acquisition 5 Goal Setting 5 HR Strategy 6 Performance Appraisals 6 Learning & Development 7 Performance Management 8 Talent Management 7 8 Engagement Strategy & Assessments Engagement Action Plans Source: Understand Top HR Trends and Priorities for 2016 Info-Tech Research Group 7 Respond to trends in learning and development to keep at pace with your competition Organizations are recognizing the need to engage their talent and develop their next generation of leaders. Don’t fall behind. Leverage LMS to optimize your performance support and competency development functions. #1 emerging HR trend for 2014 and 2015 was reported to be developing the next generation of leaders. On the list of most frequently implemented HR trends of 2014 and 2015, the incorporation of e-learning into organizational learning and development ranked #1 Management often hesitates to invest in learning because they’re worried that after employees are trained, they’ll leave. But what they don’t think of is, even worse, what if they don’t, and they stay? Today’s best CEOs are saying, ‘I’m afraid of losing talent, so I’m going to invest in them.’ – John Roberts, Learning & Development Architect, Info-Tech Research Group Info-Tech Research Group 8 Leverage L&D as a strategic HR function to deliver on organizational priorities Even though L&D has been at the top of projected HR priorities and spending, according to McLean & Company’s HR Trends and Priorities for 2016 survey, L&D programs often fail to deliver on their intended objectives. 28% 32% of non-HR respondents thought that their Learning & Development function was effective. of HR respondents thought that their Learning & Development function was effective. 97% of organizations reported the increased efficiency of training content and increased employee performance due to LMS. Learning & Development programs are often piecemeal and are not created in alignment with the needs of the organization. Leverage LMS to simplify workflows, increase learning accessibility, and contribute to L&D becoming a strategic function of HR. Info-Tech Research Group 9 The LMS technology market is growing as organizations, big and small, see the urgent need to streamline employee development 4 Billion Dollar Market The Learning & Development Market From 2014 to 2015 the learning and development market has grown by 14%. 14% 2010 2015 Learning Technology Market LMS Isn’t Just for Large Organizations From 2014 to 2015 the learning technology market grew by 27%. 80% of large organizations and 30.8% of small organizations use LMS. 27% Source: Deloitte Human Capital Report, 2015 80.0% 49.1% Large 30.8% Mid Small Source: BizLibrary Info-Tech Research Group 10 Don’t make the common mistake of procuring an LMS before creating a strategy When embarking on an LMS project, use Info-Tech’s approach to creating an LMS strategy to address the five critical success factors below. Gain management buy-in to secure funding, define your requirements to right-size the solution, and implement control mechanisms and a governance plan. KEY SUCCESS FACTORS 1 Secure Executive Sponsorship 2 Define Clear Requirements 3 Secure a Sufficient Budget 4 Create a Communication Plan 5 Implement Governance Plan A lot of organizations get an LMS and think a strategy will emerge from the tool. When they do this, the LMS strategy is delinked from the broader organization’s strategy. Organizations who are using LMS really well ask, ‘how do I link the LMS strategy to the broader objectives of the organization?’ Think about your people. Think about the learning value of the content. Think about your analytics strategy. – John Roberts, Learning & Development Architect, Info-Tech Research Group Source: Capabiliti Info-Tech Research Group 11 Info-Tech Research Group Helps IT Professionals To: Quickly get up to speed with new technologies Manage business expectations Justify IT spending and prove the value of IT Train IT staff and effectively manage an IT department Make the right technology purchasing decisions – fast Deliver critical IT projects, on time and within budget Sign up for free trial membership to get practical solutions for your IT challenges “Info-Tech helps me to be proactive instead of reactive – a cardinal rule in a stable and leading edge IT environment. • - ARCS Commercial Mortgage Co., LP Toll Free: 1-888-670-8889 www.infotech.com Info-Tech Research Group 12
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