Learning in the Flow of Work

Josh Bersin Principal and Founder, Bersin™ Deloitte Consulting LLP Copyright © 2018 Deloitte Development LLC. All rights reserved. Learning In The Flow of Work A new world of learning is finally here.

The exponential importance of learning A business, economic, and social imperative “The learning curve is the earning curve.”

Copyright © 2017 Deloitte Development LLC. All rights reserved. 3 Robots and AI 77% of CEOs expect the role of AI, Robotics, and Automation to “increase significantly” over the next 2 years. Source: Robots: The new low-cost worker, Dhara Ranasinghe, CNBC, April 10, 2015. https://www.cnbc.com/2015/04/10/robots-the-new-low-cost-worker.html Source: China Can’t Buy Enough Industrial Robots, Jethro Mullen, CNNTech, June 23, 2016 http://money.cnn.com/2016/06/23/technology/china-industrial- robots/index.html

Copyright © 2017 Deloitte Development LLC. All rights reserved. 4 Source: U.S. Bureau of Labor Statistics and LinkedIn 2017 Jobs Report Shift to a service and IP-based economy Jobs Are Rapidly Shifting to Services not Labor US BLS estimates that 65% of children entering primary school today will hold jobs that do not yet exist.

Copyright © 2017 Deloitte Development LLC. All rights reserved. 5 1 billion smartphones iPhone ® launched 100 million Twitter users Since 2011 productivity gains have slowed to crawl US productivity last ten years Productivity is suffering—is technology helping?

Copyright © 2017 Deloitte Development LLC. All rights reserved. 6 Sources: Deloitte Human Capital Trends 2014 and 2015 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. Employees are overwhelmed

Copyright © 2017 Deloitte Development LLC. All rights reserved. 8 Source: Meet the Modern Learner: Engaging the Overwhelmed, Distracted, and Impatient Employee, Bersin by Deloitte, Deloitte Consulting LLP The Reality of Learning Today: 24 Minutes A Week 24 minutes a week

Copyright © 2017 Deloitte Development LLC. All rights reserved. 10 Hiring is as hard as it has been since 2001 and “time to hire” is even greater Unemployment Rate Nearing Record Lows End of Korean War Vietnam War https://www.thebalance.com/unemployment-rate-by-year-3305506 Black Monday Dot Com Dot Bomb Financial Crisis 1970- 1976 6.2% jumping to 12.3 % Inflation 2007 4.1% Inflation Mean “time to hire” for new hires is 31 days, higher than it was in 2001. http://dhihiringindicators.com/wp-content/uploads/2018/01/2018-01-DHI-Hiring-Indicators-Report-FINAL-2.pdf Expected to drop to 3.9%

Copyright © 2017 Deloitte Development LLC. All rights reserved. 11 How we used to create jobs: “job design” People Work Job Design Tasks Competencies Skills Experience Organization Design Span of Control Functional Specialization Process Design Delegation of Responsibility Job Description Title Level Responsibilities Credentials Job Requisition Education, Credentials, Experience, Skills, Salary history

Copyright © 2017 Deloitte Development LLC. All rights reserved. 12 How we create jobs now: “work and task design” Software, Machines, Tools People Work Services, Tasks, Projects, Activities Job Requisition Experiences, Knowledge, Culture, Connections Teams, Squads, Tribes, Team Leaders Role, Skills, Capabilities, Experiences Culture

Copyright © 2017 Deloitte Development LLC. All rights reserved. 13 A C D E B How things were How things “are” B A DCF G E Shared values and culture Transparent goals and projects Free flow of information and feedback People rewarded for their skills and abilities, not position How things work A network of teams And organizations must redesign themselves Source: Rewriting the rules for the digital age. 2017 Deloitte Global Human Capital Trends

Copyright © 2016 Deloitte Development LLC. All rights reserved. 14 Demanding new skills, and jobs that are more “Hybrid” than ever 2.8 2.9 3 3.1 3.4 3.6 4.4 4.5 5.5 5.5 5.6 5.7 6.5 9.8 0 1 2 3 4 5 6 7 8 9 10 Head of Customer Experience Reliability Engineer Marketing Content Manager Guest Experience Manager Licensed Realtor Head of Partnerships Peronsal Loan Consultant Brand Partner Big Data Developer Full Stack Engineer Customer Success Manager Sales Representative Data Scientist Machine Learning Engineer Most In-Demand Jobs 2018 Soft Skills Tech https://economicgraph.linkedin.com/research/LinkedIns-2017-US-Emerging-Jobs-Report Most In-Demand Skills Most In-Demand Capabilities

Copyright © 2016 Deloitte Development LLC. All rights reserved. 16 And… We are living longer.. stretching the talent cycle “Since 1840 there has been an increase in life expectancy of three months for every year.” Source: 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 Source: http://www.mortality.org/ Will Generational Bias Be the Hot Button of 2018?

Copyright © 2016 Deloitte Development LLC. All rights reserved. 18 Education Work Retirement Education Work Leisure From To “The Three Boxes of Life,” by Dick Bowles How life has changed Source: The Three Boxes of Life” by Dick Bowles, Ten Speed Press; 1st Paperback Edition (August 1, 1981)

Copyright © 2017 Deloitte Development LLC. All rights reserved. 19 Demanding a completely new career model in companies 58% of companies are redesigning or planning to redesign their career model Deloitte HC Trends 2017 83% of companies expect to have an “open” or “highly flexible” career model within the next 3-5 years Deloitte HC Trends 2017 While 33% of companies promote vertical career moves, 67% now promote horizontal or project based career progression Deloitte HC Trends 2017 31% of companies expect careers to be 3-5 years long 60% expect them to be 10 years or less Deloitte HC Trends 2017 Learning and career management software is the #1 fastest growing segment in HR technology (Sierra-Cedar 2016– 2017 Survey HR White Paper)

Copyright © 2017 Deloitte Development LLC. All rights reserved. 21 CEOs, CFOs, CHROs agree on #1 issue: risk of retaining and attracting top talent CEOs have awakened to the problem TCB-1652 Conference Board C-Suite Challenge 2018, n=570 Failure to Attract, Retain Talent Developing Next-Gen Leaders Healthcare for Employees Developing System for Performance Workforce Diversity

Copyright © 2017 Deloitte Development LLC. All rights reserved. 22 L&D Budgets Are Increasing The average large L&D organization has 22 different tools, technologies, and platforms to support corporate learning. Source: Toward Maturity 2017, Benchmark Report, n=700 41% 40% 20% 69% 28% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% Increased Stayed the same Decreased L&D Budget Percent Spent on Technology

Copyright © 2017 Deloitte Development LLC. All rights reserved. 23 L&D Teams growing in size Source: Sierra-Cedar HR Systems Study November 2017 Learning & Development Is The Fastest Growing Headcount Growth in HR Function Also: 68% of organizations are investing in “career management” tools, second only to analytics in priority

Copyright © 2017 Deloitte Development LLC. All rights reserved. 24 Yet until now, L&D has not been keeping up 75% of the workforce will be made up of Millennials by 2025, yet 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, Deloitte Human Capital Trends 2017, Deloitte Millennial Survey 2017, Bersin High-Impact Learning Organization 2017 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

Copyright © 2017 Deloitte Development LLC. All rights reserved. 25 We are here E-Learning & Blended 1998-2002 2005 20182010 Self-Study Online Learning Course Catalog Online University 2020 Learning In Flow of Work LearningInTheFlow ofWork 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 Source: Bersin by Deloitte, Deloitte Consulting LLP From e-learning to “learning in the flow of work” We are entering a whole new era of L&D technologies and architecture

26 What is Learning In the Flow of Work?

Copyright © 2017 Deloitte Development LLC. All rights reserved. 27 A simple model to consider 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

Copyright © 2017 Deloitte Development LLC. All rights reserved. 29 Where does macro and micro learning apply? Macro Macro Micro Micro Micro Micro Micro Credential Teach New on the Job Seasoned Expert PaceofLearning Normal Great Bad

Copyright © 2017 Deloitte Development LLC. All rights reserved. 30 At the employee level, this is a problem of creating “flow” Level of Challenge Level of Skill Onboarding New Assignment If you can do it, Learning in the flow of work drives productivity, energy, engagement, and retention New Hire Experience Plateau Promotion

Copyright © 2017 Deloitte Development LLC. All rights reserved. 31 New research by O’Reilly demonstrates this cycle Evaluation of more than 200,000 learning activities in the O’Reilly books and media network Novice Literate Capable Expert Structured Content (Macro Learning) (58%) Un-Structured Content (Micro Learning) (42%) O’Reilly study of over 200,000 learning interactions for engineering and software skills found that 58% are “structured” or linear, and 42% are “ad-hoc” or content focused. © O’Reilly Media, Inc.

Copyright © 2017 Deloitte Development LLC. All rights reserved. 32 New research by O’Reilly (one of the largest publishers of tech pubs) Novice Literate Capable Expert Structured Content (Macro Learning) (58%) Un-Structured Content (Micro Learning) (42%) O’Reilly study of over 200,000 learning interactions for engineering and software skills found that 58% are “structured” or linear, and 42% are “ad-hoc” or content focused. © O’Reilly Media, Inc. Seasoned, High Performers Use self-directed discovery for problem-solving, and nonlinear instruction to acquire new skills. Require high-quality, relevant content with depth and breadth. New to Topic, Role, Skill Learn basics through comprehensive, sequential (linear) instruction. Require structured, highly curated content

Copyright © 2017 Deloitte Development LLC. All rights reserved. 33 Does micro-learning work? Yes…. The Ebbinghaus forgetting curve Source: “Repeated retrieval during learning is the key to long-term retention” by Jeffrey D. Karpicke, Henry L. Roediger III, Journal of Memory and Language, August 2007. http://www.sciencedirect.com/science/article/pii/S0749596X06001367

Copyright © 2017 Deloitte Development LLC. All rights reserved. 34 Repetition, spacing, questioning Add Spaced Repetition - Learning Improves Further Source: Bersin by Deloitte, Deloitte Consulting LLP

Copyright © 2017 Deloitte Development LLC. All rights reserved. 35 How Does It Look? Micro Learning is Small Doses of Actionable Information Source “The art and science of learning that sticks,” Grovo, 2017

Copyright © 2017 Deloitte Development LLC. All rights reserved. 36 Add “Practice” or “Retrieval Practices,” and learning goes up even more! • “Not only does retrieval produce learning, a retrieval event may actually represent a more powerful learning activity than an encoding event.” • “Retrieval practice produces more learning than elaborative study, implying that the act of reconstructing knowledge itself is one of the most powerful learning activities we can produce.” 28% 46% 41% 69% Study Repeated Study Concept Mapping Practice and Retrieval Technical Material Percentage Retained Two Weeks Later Source: “Retrieval Practice Produces More Learning than Elaborative Studying with Concept Mapping, “ Karpicke and Blunt, Purdue, 1/21/2011

Copyright © 2017 Deloitte Development LLC. All rights reserved. 37 But it’s not quite enough. We see four broad modalities today Micro Learning Videos, blogs, articles, micro-learning programs, curated feeds, on-demand, in the flow of work Macro Learning MOOCs, courseware, courses, simulations, assessments and may include VR and AR “University” Learning Events, innovation sessions, leadership programs Experiential Learning Coaching, developmental assignments, mentorship, exposure Only 31% of companies offer continuous learning opportunities, only 14% feel effective in this area, yet 79% of L&D professionals investing in this model. 42% of companies believe they effectively help people perform in future role, 29% in future role, yet focus here is high and growing Only 38% of companies offer development activities outside of formal training, continuous focus needed 83% of companies have a corporate university and 32% say its usage is increasing Source: Bersin by Deloitte High-Impact Learning Organization 2017, n=1200 ATD “Microlearning: Delivering Bite-Sized Knowledge,” n=596

Copyright © 2017 Deloitte Development LLC. All rights reserved. 38 ExperientialLearningMethods Source: Bersin, Deloitte Consulting LLP 2017 4% 20% 22% 18% 21% 48% 56% 55% 43% 50% 7% 22% 35% 29% 32% 58% 64% 58% 61% 64% 10% 36% 53% 44% 57% 85% 84% 85% 85% 88% 12% 31% 57% 57% 65% 79% 85% 88% 91% 93% External job swaps Apprenticeships Job rotations Job shadowing After-action reviews Mentoring On-the-job assignments Conferences On the Job Assessments Development plans Level 1 Level 2 Level 3 Level 4 Our research shows: High-impact learning is very multi-faceted

Copyright © 2017 Deloitte Development LLC. All rights reserved. 39 2018 Bersin Learning Organization Maturity Model Source: 2017 Bersin by Deloitte High-Impact Learning Organization, n=1,200, >1,000 employees; Bersin by Deloitte, Deloitte Consulting LLP Episodic / Programmatic Level 1 Responsive / Contextualized Level 2 Continuous / Empowering Level 3 Anticipatory / Flow Level 4 6% 20% 39% 35%

Copyright © 2017 Deloitte Development LLC. All rights reserved. 41 77% 53% 32% 4% 6% 13% 10% 15% 26% 4% 14% 15% 5% 10% 13% 2009 2012 2016 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 The content shift has happened Source: Bersin Corporate Learning Factbook® 2015, Bersin by Deloitte, Deloitte Consulting LLP

Copyright © 2017 Deloitte Development LLC. All rights reserved. 42 Learning Technology Has Been Modernized (at last) CBT E-Learning Video Everything Copyright © 2017 Deloitte Development LLC. All rights reserved. 34

Copyright © 2017 Deloitte Development LLC. All rights reserved. 43 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. Source: Donald H. Taylor, Learning Sentiment Study 2017, 885 L&D respondents, 60 countries Artificial Intelligence All new “digital” technologies

Copyright © 2017 Deloitte Development LLC. All rights reserved. 44 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 L&D technical capabilities are changing

Copyright © 2017 Deloitte Development LLC. All rights reserved. 45 Biggest skills gaps in L&D Toward Maturity, 2017 and Learning Technology Survey, Don Taylor, 2017 Priority Skills for 2018 1. Performance Consulting 2. Information Architecture 3. Experience Design 4. Learning Technology & Infrastructure 5. Learning Analytics 6. Social, Collaborative Learning

Copyright © 2017 Deloitte Development LLC. All rights reserved. 47 The new learning architecture is multi-faceted, not LMS centric Learning Aggregation Platforms Prescriptive Learning Platforms Spaced and Micro Learning Platforms AI based analysis and learning tools Gamification environments Virtual reality systems and products Source: Bersin by Deloitte, Deloitte Consulting LLP, 2015.

Copyright © 2017 Deloitte Development LLC. All rights reserved. 48 Many learning tools are needed Source: Toward Maturity, 2017 and Learning Technology Survey, Don Taylor, 2017 Source: Sierra-Cedar HR Systems Study, 2017 Change Is Here: 38% of LMS users want to “improve the user experience” 28% of companies are buying a new core learning platform 14% are planning on replacing their LMS

Copyright © 2016 Deloitte Development LLC. All rights reserved. 49 New Learning Tech Segments Are Becoming Clear Learning Experience Platforms Degreed, EdCast, PathGather Jam, Fuse, Percipio, Cornerstone, Valamis, Tribridge, … Program Experience (Delivery) Platforms Intrepid (Vitalsource), NovoEd EdX, Everwise, OpenEdX, Blackboard, Instructure, ... Micro Learning Platforms Axonify, Grovo, Qstream, Practice, Rehearsal, Jubi, Wisetail, Mindtickle, etc. LMS and Content Platforms Traditional: Cornerstone, Saba, SuccessFactors, SumTotal Modernized: Workday, Oracle, SAP, Bridge, D2L, Litmos, Intellum, Docebo, others Assessment, VR, Development Tools Video Authoring, Intelligent assessment, spaced learning, gaming, virtual reality, collaboration, simulations, … Content Libraries Udacity, Coursera, EdX, Udemy, Pluralsight, SkillSoft, CrossKnowledge, hundreds of others Learning Record Store GrassBlade, Learning Locker, Saltbox, Yet, Watershed Source: Bersin by Deloitte, Deloitte Consulting LLP 1 2 3 4 5 6 7

Copyright © 2016 Deloitte Development LLC. All rights reserved. 53 believe their employees are fully aligned with the corporate purpose 23% believe internal processes for collaboration are working well 14% are excellent at building a differentiated employee experience 22% are using design thinking as part of crafting the employee experience 10% Say problem is urgent 38% Culture, engagement, and beyond Focus on the employee experience Source: Deloitte and Facebook, “Transitioning to the future of work and the workplace,” November 2016

Copyright © 2017 Deloitte Development LLC. All rights reserved. 54 Self Service Intelligent ServicesCase Mgt. AI/Voice App Interfaces Engagement Feedback Recognition Learning Career Coaching Performance Goals Succession HRMS Payroll/Time Communications Analytics/AI ONA Workforce Mgt Wellbeing Rewards Benefits Sourcing Recruitment Assessment White collar Hourly Senior leaders Line managers Candidates Contractors External network Alumni Senior Geographic Business Partners Talent Specialists (OD, sourcing, recruiting, learning, organized in networks of excellence) Wellbeing, safety, culture, engagement, recognition Analytics, Monitoring, Predictive, WF Planning HR Tech, App development Research, Market Best Practices, Comp, Ben, Rewards HR Prof DevelopmentHR Ops, AI and Bots, Intelligence Junior Geo Bus Partners Teams@Work (productivity, services, team management, wellness, feedback, recognition, learning) People@Work (productivity, services, team management, wellness, feedback, recognition, learning) Candidates@Life Candidates (products, jobs, projects, opportunities) Leaders@Work Alumni@life The HR Technology Architecture Of The Future

How Can You Get There? Realign your strategy, process, skills, and technologies.

Copyright © 2017 Deloitte Development LLC. All rights reserved. 56 You Must Invest: Level 4 Companies Outperform Their Peers Level 4 Companies 8X higher net- promoter score 107% higher average earnings per share 59% higher average three year share price Source: 2017 Bersin by Deloitte High-Impact Learning Organization, n=1,200, >1,000 employees; Bersin by Deloitte, Deloitte Consulting LLP

Copyright © 2017 Deloitte Development LLC. All rights reserved. 57 We must not forget the 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?

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