75% of the workforce will The Disruptive Nature of Digital Learning: Ten Things We've Learned

Digital Learning Where Are We? Josh Bersin Founder, Bersin by Deloitte Principal, Deloitte Consulting LLP March, 2017

Corporate Learning in 2017 Has Digital Learning Arrived? 1. Exponential importance of learning 2. How organizations have changed 3. L&D’s biggest challenge in a decade 4. The changed world of work

Exponential Importance of Learning The business, economic, and competitive imperative

90% of organizations surveyed by MIT and Deloitte anticipate their industries will be totally disrupted by digital trends. Digital Disruption

Why skills matter so much Shift to a service and IP-based economy Source: U.S. Bureau of Labor Statistics

The Future of Work is The Augmented Worker

Continuous Reskilling Defines Our Economy 70% of the technical skills jobs require today become obsolete with 5 years. - LinkedIn Lynda.com Research

Productivity is suffering—is technology helping? US productivity last ten years 1 billion smartphones i-Phone launched 100 million Twitter users

Shared values and culture Transparent goals and projects Free flow of information and feedback People rewarded for their skills and abilities, not position Organizations Have Changed B A DCF A C D E B G How things were How things “are” How things work E

Teams Have Changed 80-90% Full Time Employees 1960s-1980s Job training Traditional careers Professional development 50-70% Full Time Contingent 1990s-2000s Onboarding Employee-driven learning New career models <50% Full Time Contingent Machines Future Continuous training Micro and Macro learning Open career management 38% of companies expect to be “fully automated” with robotics and AI within 3-5 years

Companies That Learn Outperform Those That Don’t 11

2% 17% 33% 34% 14% 2% 0% 3% 56% 39% We are reactive / tactical / Our purpose is to simply fulfill. 2 3 4 We are proactive / strategic / Our purpose is to act as business partner. Overall % HILO % Proof: Bersin High-Impact Learning Organization Research How do you think your leadership perceives your learning organization? In our 2008 and 2011 High-Impact Learning Organization Research “HILOs” profits grew 3X faster than the rest of the orgs studied. How Well is L&D Aligned With Business? Bersin by Deloitte High-Impact Learning Organization Study, 2014

Training is key to Millennial engagement Millennials rate development the #1 job benefit 6% 6% 8% 14% 19% 22% 0% 5% 10% 15% 20% 25% Greater vacation allowance Retirement funding Free private healthcare Cash bonuses Flexible working hours Training and development Millennials in the workforce For Millennials, “Training and development” is the most coveted job benefit Source: KPCB Percent indicating job benefit in first place

L&D’s Biggest Challenge in a Decade Can we reinvent the corporate learning infrastructure to deal with “digital business?”

75% of the workforce will be made up of Millennials by 2025, and 45% tell us they get no leadership development at all. 45% of North American survey respondents think their current skills will be inadequate in three years SOURCE: A New Model for Corporate Learning, by Karie Willyerd, Alwin Grünwald, Kerry Brown, Bernd Welz, and Polly Traylor of global survey respondents think their companies are not giving them opportunities to develop 59% The Net-Promoter Score of L&D rated by non HR professionals is -8! - Bersin HILO 2017 L&D Is Demand Increasing

8% Only 8% of L&D Organizations are excellent at video and advanced media, 50% drop from 2016 24% Only 24% are excellent at apprenticeship and on-job-training, no change from 2016 Deloitte Human Capital Trends 2017 Only 17% of companies understand the skills and readiness of their employees well 59% Careers and Learning is now the #2 rated Human Capital Trend around the world, with 45% of companies rating the problem “urgent.” Capability to deliver needed learning solutions dropped by 11% in 2017 from 2016. L&D’s Capabilities Are Flat to Declining

We are here E-Learning & Blended Evolution of L&D Has Been Blindingly Fast From E-Learning to Digital Learning In One Generation 1998-2002 2005 20172010 Self-Study Online Learning Course Catalog Online University 2020 Intelligent Learning Intelligent,Personalized, MachineDriven Instructional Design Kirkpatrick LMS as E-Learning Platform Talent Management Career Focused Lots of Topics Learning Path Career Track Blended Learning Social Learning LMS as Talent Platform Digital Learning Everyone, All the Time, Everywhere Micro-Learning Real-time Video Courses Everywhere Design Thinking Learning Experience LMS invisible Data Driven, Mobile Continuous Learning Learning On Demand Embedded Learning Video, Self-Authored Mobile, YouTube 70-20-10 Taxonomies LMS as Experience Platform Formats Philosophy Users Systems © Bersin by Deloitte

Why? The Way We Work Has Changed Learning today is very different from only a few years ago

Sources: Deloitte Human Capital Trends 2014 and 2015 Employees are Overwhelmed The “average” US worker now spends 25% of their day reading or answering emails Fewer than 16% of companies have a program to “simplify work” or help employees deal with stress. More than 80% of all companies rate their business “highly complex” or “complex” for employees. The average mobile phone user checks their device 150 times a day. The “average” US worker works 47 hours and 49% work 50 hours or more per week, with 20% at 60+ hours per week 40% of the US population believes it is impossible to succeed at work and have a balanced family life.

• Since 2000, American workers have lost an entire week of vacation, dropping average vacation days from 20.3 to 16.2 • Americans left 658 million unused vacation days and lost 220 million of them in 2015 • 39% of Americans “want to be seen as a work martyr” yet 86% say it’s bad for their family life. We Are Working More Hours: The Vacation Crisis 48% of Millennials want to be seen as a “work martyr” Millennials 50% more likely to forfeit vacation days

McKinsey Global Institute / International Data Corporation, The Social Economy, 7/2012 Knowledge workers spend less than 40% of the average workweek on tasks specific to their jobs Reading and answering e- mail Searching and gathering information Communicating and collaborating internally 28% 19% 14% 39% And We Spend Too Much Time Searching

Source: Meet the Modern Learner: Engaging the Overwhelmed, Distracted, and Impatient Employee, Bersin by Deloitte, Deloitte Consulting LLP So the Reality of Learning Today: 24 Minutes A Week 24 minutes a week

New Work Environments Arriving Now

Opening The Door to Explosive Growth In MicroLearning Micro-Learning Macro-Learning I need help now. I want to learn something new. • 2 minutes or less • Topic or problem based • Search by asking a question • Video or text • Indexed and searchable • Content rated for quality and utility • Several hours or days • Definitions, concepts, principles, and practice • Exercises graded by others • People to talk with, learn from • Coaching and support needed Is the content useful and accurate? Is the author authoritative and educational? Videos, articles, code samples, tools Courses, classes, MOOCs, programs

Lifecycle of Learning for Work New on the Job Seasoned Expert PaceofLearning Normal Great Bad How Do We Keep Learning Alive, Relevant, and Vital?

Where Does Macro and Micro Learning Apply? New on the Job Seasoned Expert PaceofLearning Normal Great Bad Macro Macro Micro Micro Micro Micro Micro Credential Teach © Bersin by Deloitte

MOOCs: The Novelty Has Worn Off Shift from Learning to “Nanodegrees,” “Micro-Masters,” and “Program Certificates” Focus now is on credential.

Does Micro Work? The Ebbinghaus Forgetting Curve

Solution is 3 Simple Things: Repetition, Spacing, Questioning Adaptive Learning Platforms Bersin by Deloitte

But Wait. There’s more. Changed Nature of Jobs and Careers

How We Used To Create Jobs People Work Job Design Organization Design Job Description Job Requisition Education, Credentials, Experience,Skills

How We Will Create Jobs People Work Teams, Squads, Tribes Tasks, Projects, Activities Role, Skills, Capabilities, Experiences Job Requisition Experiences, Knowledge, Culture, Connections Machines & Tools

New, Hybrid Jobs: Growth In The “Creative Class” http://martinprosperity.org/media/Global-Creativity-Index-2015.pdf Technology, Talent, Tolerance

Career Models Are In Disruption 58% of companies are redesigning or planning to redesign their career model 83% of companies expect to have an “open” or “highly flexible” career model within the next 3-5 years While 33% of companies promote vertical career moves, 67% now promote horizontal or project based career progression 31% of companies expect careers to be 3-5 years long 60% expect them to be 10 years or less Learning and career management software is the #1 fastest growing segment in HR technology (CedarCrestone 2017)

Employees Know They Must Continuously Develop But Are Not Sure How Employees Demand Development • 71% of employees say their job demands that they “continuously learn new skills.” • Only 48% believe their current skills will let them grow in their career • Of all skills in demand, project management (86%) is the most cited skill needed for success Employees Expect to Change Careers • 37% of employees believe they will change careers in the next five years. • Among those who want to change careers, the #1 challenge is financial implications (55%) and #2 is that they don’t know what next career to take (34%) 2,057 adults October of 2016, 40% managers

The 100 Year Life (And 70 Year Career) “Since 1840 there has been an increase in life expectancy of three months for every year.” Gratton, Lynda; Scott, Andrew. The 100-Year Life Today’s Millennials have a 50% chance of living to 100+ Increase in Life Expectancy Over Time http://www.mortality.org/

How Life Has Changed The Three Boxes of Life,” By Dick Bowles Education Work Retirement Education Work Leisure From To

Career development means upward progression Career development means new experiences New positions are offered to me I seek out and find new opportunities My manager decides when I am ready for a new position I decide when I’m ready to change roles My manager helps me plan my career My mentors and others help me find job opportunities Taking a new assignment can be risky Moving to a new position is and key to growth How Career Rules Have Changed The Old Rules The New Rules It takes decades to become a senior leader Leadership is offered all the time

Four Primary Approaches To Career Management Structured Flexible Open Transitory Focused on preparing & moving workers through well-defined career paths designed to follow the organizational structure. Focused on moving workers through well- defined levels of an organization, with flexibility in career paths and jobs to accommodate development & organizational needs Focused on facilitating the work by assembling the most appropriate talent. Movement based on worker interest and organization need. Often used in team environments. Focused on facilitating the work by finding and utilizing the best talent sources – either external or internal 19% 32% 33% 16%

Are We Ready For The “Open Career?” It’s here. 43% of companies tell us that careers in their companies are now 5 years or less 69% of companies are actively restructuring or recently changed their career models

Open job descriptions, levels, and job demands Job assessments online for self-assessment and development Career explorer tools available for all employees All external positions are posted internally Internal candidates given fair or preference to external All jobs defined around similar competency model Enable Job Seeking Professional career counselors in HR Career Resource Center available “Career Advisor” or “sponsor” separate from manager Active mentoring program with internal and external mentors Provide Career Advice Clear and agile goal setting Managers rewarded for “talent production” not only “talent consumption” Managers measured by engagement and progression of team Managers rewarded for coaching and development Change Management Culture Wide variety of online learning for technical, professional, and managerial growth Apprenticeship model adopted internally Development includes industry, company, and functional training “HIPO” programs are not sacrosanct as the only way to get ahead Learning funded and valued by top management Professional Ladder separate from Management Ladder Mentoring is valued, institutionalized, rewarded, and mentor development programs exist Social and video sharing tools are used for learning Deliver L&D Support Design thinking about lifecycle of employee in a role for first 2 years Onboarding and performance support valued part of manager and L&D role PM process focuses on development and coaching Multi-year management or career development programs exist and are honored Support Job Transition Cross functional projects are valued as development Line / Staff / Line / Staff transitions are valued and managed carefully “Job rotation” programs into and out of functions are valued Specialist roles are valued, rewarded, celebrated Storytelling celebrating career paths of varied types Tolerance of failure without blaming the people Return guaranteed for risky assignments Network building rewarded for progression and leadership Rewards for New Assignments and stretch assignments Inclusive culture enables anyone to take any job Making mistakes is valued as learning and discussed openly Tolerance of staff who are “incompetent” and new at job Promotions and Salary Increases for Non- Management Jobs Meritocracy as culture of reward and growth Re-engineer Culture and Rewards Open Career Management Demands An Enterprise Wide Focus Six Keys to Open Career Success Today

Innovative approach to development New expectations for employees 11 The New York Times, Feb. 13, 2016

So… What Exactly Is Digital Learning? “Learning that meets you where you are…”

The Digital World of Learning Was Is Formal Informal Highly Curated Machine Personalized Individual Team Based Taught Coached Produced Co-Created Proctored Peer Reviewed Moment in Time Continuous Centralized Distributed Pushed Pulled Away from Work In the Flow of Work Globally Consistent Locally Relevant The list goes on and on…..

The dynamics of learning “the old way” LEARNING ORGANIZATION-LED EMPLOYEE- LED You “Go Someplace” to learn Organization focuses on teaching or education Courses are delivered as discrete, formal learning events Trainers have access to the most information Technology used for content creation and distribution The traditional learning organization holds a monopoly on professional learning and leverages technology for the purpose of delivery.

The dynamics of Digital Learning When the learning organization adopts digital learning, L&D professionals focus on tools and structures to create a “learning experience” You Learn when and where you want Organization focuses on experiences and design Courses are “micro” and “macro” Everyone is incented to teach, coach, and share Technology creates a personalized, customized experience LEARNING ORGANIZATION-LED EMPLOYEE- LED

77% 53% 32% 4% 6% 13% 10% 15% 26% 4% 14% 15% 5% 10% 13% 2009 2012 2015 ILT Virtual ILT Online self-study On the Job Collaboration ILT shrinking in volume, growing in importance Online and collaborative learning Is finally working OTJ and apprenticeship is growing rapidly Today only 16% of L&D spending is allocated to instructor delivery, vs. 21% in 2011 and 33% in 2006 Source: Bersin Corporate Learning Factbook® 2015 Content Shift Has Already Happened

And Learning Preferences Have Changed Top Priorities in 2017 Personalization/ Adaptive Delivery Collaborative/ Social Learning Micro-learning Virtual, augmented reality Mobile delivery Jumped up From #2 last year Jumped up From #5 last year What did NOT make the top five areas of focus this year? • Curation • Gamification • Video • MOOCs • Developing L&D function These areas are becoming “mainstream” or commodity-like features of learning. Donald H. Taylor, Learning Sentiment Study 2017, 885 L&D respondents, 60 countries Artificial Intelligence All new “digital” technologies

How Do We Get There From Here? L&D starts to build digital capabilities to support agile development and implements a digital learning experience platform L&D expands beyond digital content to the entire digital experience, including coaching, practice, spaced learning, curation, and personalization L&D embraces digital thinking and includes business leaders as digital contributors in an enterprise- wide digital learning experience (Very few companies) L&D explores video, apps, and tools to enable digital learning experiences, often outsourcing content development Becoming Digital Exploring Digital Being Digital Doing Digital

Four Principal Changes to The Organization Digital Learning is not technology or “digital content” It is L&D learning to “Be Digital” Not just “Act Digital” Design Thinking Agile Management New TechnologyCulture Bringing the learner experience front and center, focusing on Experience, not program Creating an environment conducive to continuous learning Facilitating teams, coaching, management support, learning valued Implementing social, mobile, analytics, and cloud solutions

Traditional Learning Organization Capabilities Content Development Learning Evaluation Instructional Design L&D Performance Consulting Learning Delivery Division / Country Leadership LMS Administration New / Enhanced Learning Organization Capabilities Strategic Enablers Content Curation Experience Design Data Analysis Branding & Communication Experience Management/ Architecture Tech Tools & Leadership Experience Leadership Multimedia Development App Development User Experience / Interface Design Core Some New Technical Capabilities Needed

Critical Role of Culture Great Corporate University Strong CLO Excellent L&D Skills Strong Talent Process Excellent Training Technology Great L&D Measures & Effectiveness Have we created an organization which truly has a culture to learn? Does Leadership reinforce the need to Learn? Can we get time from experts and leaders? Do people share information openly? Do people feel empowered to point out errors? Do we listen to customers openly? Do we take the time to reflect? Do people move around and take risks? Are experts rewarded and valued?

Business Outcomes Learning Agility Innovation Employee Productivity Customer Satisfaction Customer Responsiveness Customer Input Cost Structure Time to Market Market Share Workforce Expertise High-Impact Learning Culture® Model 6 Keys to an Enduring Learning Culture 40 Practices of a High-Impact Learning Culture® Enabling Knowledge Sharing Empowering Employees Building Trust Encouraging Reflection Demonstrate Learning’s Value Formalizing Learning As Process Leadership Management Ability to Learn Motivation to Learn Acquisition + Application of Knowledge and Skills

HILO 2017: What Really Matters: Culture, Career, Coaching Bersin 2017 High-Impact Learning Organization 1. Organization focuses on long term career success of its workers 2. Organization focuses on enabling workers to perform well in current role 3. Organization employs design thinking in development opportunities 4. Organization offers high-value learning and development experiences 5. Organization rewards employees for development 6. Organization gives stretch assignments as a part of worker development 7. Employees are able to influence which tasks are assigned to them 8. Organization is clear on decision-making processes / ability 9. Risk-taking is rewarded in the organization 10. Mistakes are valued as learning opportunities 11. Organization utilizes experiences for development 12. Organization gathers data on worker performance in several ways • Careers • On the job • Experiential • Reward systems • Empowerment • Learn from mistakes • Performance data • Culture of learning What Really Matters Analysis of more than 100 different learning strategies, technologies, and investments, correlated against business, innovation, and efficiency outcomes, Bersin by Deloitte High-Impact Learning Organization 2017

Digital Learning Architecture What happens to the LMS?

What The Technology Architecture Looks Like Learning Aggregation Platforms Prescriptive Learning Platforms Spaced and Micro Learning Platforms AI based analysis and learning tools Gamification environments Virtual reality systems and products

The Learning Tech Market Is Starting to Shake Out Learning Experience Platforms Degreed, EdCast, PathGather SAP Jam, Fuse, … Program Experience (Delivery) Platforms Intrepid, NovoEd EdX, Everwise, OpenEdX… Micro Learning Platforms Axonify, Grovo, Qstream, Practice, Rehearsal, Others… LMS Platforms Traditional: Cornerstone, Saba, SuccessFactors, SumTotal Modernized: Workday, Oracle Cloud Learning, Litmos, Docebo, others Assessment, Development, Delivery Tools Video Authoring, Intelligent assessment, spaced learning, gaming, virtual reality, collaboration, simulations, … Content Libraries Lynda, Udacity, Coursera, EdX, Udemy, Pluralsight, SkillSoft, CrossKnowledge, hundreds of others Learning Record Store GrassBlade, Learning Locker, Saltbox, Watershed © Bersin by Deloitte

LEARNER or TEAM • Employee Generated • Validated • Experiences Bits • Books • Videos • Podcasts • Articles Credentials • Partner MOOCs • MOOCs • Classrooms Moments • Collections with exercises, activities, points for reflection • Simulations Collections Integration & Practices • Mentors • Reverse-Mentors • Coaches • Faculty • Experts • Critical Topics • Critical Paths • Academies and Colleges • Campus Experiences User Generated Places People • Roles • Competencies • Evolving skills One Company’s Distributed Learning Platform

What Digital Learning May Look Like AI image recognition and virtual reality utilized to create classroom “environments” Learner experience personalized via crowdsourcing, emotional sensing, and peer-to-peer technology Gamified learning development experiences and file sharing tools available on demand to support work Activity streams, wikis, and telepresence enable real-time, zero-latency conversations between learners and experts

Who is using Digital to impact the learning experience? BrilliantYOU Engaging, personal, socially connected learning ecosystem  Building a learning platform, powered by EdCast, focused on building a customer-centric community anchored in learner interests and needs  Developing a vision for a subscription marketplace anchored in an evolving revenue sharing model with partners and vendors  Using data and machine learning to derive insights for continual evolution Workforce 2020 A culture of continual reinvention where employees can thrive  Identifying skills needed to meet new technical demands of the business and documenting existing gaps  Launching a self-service platform to provide tools and processes for performance management, career development, and talent planning  Offering individualized courses and curated “nanodegrees” to deliver training and certification in high- demand technical specialties Visa University Digital university enabling employee-driven career growth  Digital campus designed to bring all learning resources from inside and outside of Visa together in one place  Function-specific colleges, expert- designed paths, and personalized recommendations to point learners in the right direction  Data-driven dashboard showing what, how much, and how often employees access learning

Who is on the journey to Digital? User Generated Content Putting the learner first, Qualcomm uses Pathgather to encourage the sharing of knowledge and materials among employees Nano Learning BP revamped its onboarding program, shifting from traditional eLearning to short, engaging, mobile-based training “bites” – an approach that proved so popular that the entire company adopted this strategy Self-Directed Focusing on enabling the learner, MasterCard uses Degreed and Fuel 50 to connect learning with career opportunities and provide a platform for employees to drive their own learning Digital Integration Integrating the Learning Management System, Social Learning platforms, LCMS, and classroom has led to a best- in-class learning strategy, incorporating digital and traditional methods

What Should You Do? Rethink your strategy, process, skills, and technologies. This is your opportunity.

We Are All Still Learning: Let’s Learn Together 2017 Bersin by Deloitte High-Impact Learning Organization, n=1,200, >1,000 employees Only 12% of companies rate themselves strong at Digital Learning today, and only 7% have a Digital Learning Strategy.