Bersin & Associates Research Forecasts Convergence of Learning and Performance Management Technologies; New Software Category Brings Increased Focus on Talent Management.

OAKLAND, Calif. -- Bersin & Associates, the only research and advisory firm solely focused on enterprise learning, recently completed a nine-month study on the direction of learning and performance management which identifies a clear trend toward the increased demand for performance management systems, relatively new software applications designed to identify and develop employee skills and competencies. The research also indicates demand for the integration of performance management and learning management technologies. Such integration forms the basis of an overall talent management system.

The adoption and integration of these new applications will reduce the cost and time involved in completing and managing employee performance reviews, facilitate regulatory compliance, correlate training investments with top-priority skills and competencies, and give organizations the ability to assess available employee skills and cultivate new ones, according to Josh Bersin, president of Bersin & Associates.

"Our research is forecasting the adoption of integrated solutions which span corporate training and HR functions related to employee development. We believe that most organizations will use their learning management systems infrastructure as a foundation for these solutions," said Bersin.

"While organizations have long been interested in the theory of talent management, it's not been practical to implement. Today we see the confluence of several major market drivers, along with the availability of cost-efficient technology and integration capability, which makes now the right time for this new category."

An aging workforce population, highly decentralized organizations, business expansion, and a results-focused business climate are among the drivers cited by Bersin. "Whether you have to prepare for the replacement of an experienced plant maintenance manager or quickly assemble a team of employees to handle a corporate emergency -- such as the renovation of a facility destroyed by a hurricane, you need the ability to quickly assess available skills and identify those that are missing or underdeveloped. Without technology, this is virtually impossible for organizations with more than several hundred employees."

The report, Convergence of Learning and Performance Management: Has Talent Management Arrived?, is based on surveys of 553 organizations with an average employee population of 15,100. Data showed that the top four priorities for HR managers today are performance management, skills and competency management, succession planning, and learning management. At the same time, responses indicate that HR managers believe they have the least amount of expertise in these four functional areas.

Today only 35% of organizations have any type of automated performance management system and 58% rely on paper based processes. A significant majority -- 68% -- of respondents indicated that integration of learning and HR systems is critical or important to their organizations.

The study concludes that although many specialized HR solutions will continue to exist, learning management systems are likely to become the core platform for integrated performance and learning solutions. Vendors of these systems, such as CornerstoneOnDemand, Plateau, SAP, and Saba, have all developed add-on modules which automate the tasks associated with performance management and skills and competency management. Vendors focusing specifically on performance and talent management applications are generally small, have limited market share, and cannot as easily integrate their solutions with learning and development processes. The study predicts that market forces will drive consolidation among many of these smaller companies as demand for robust, integrated solutions grows.

"With increased pressures to perform and demonstrate tangible business results, the importance of the employee development process is more pronounced. We're all facing questions such as 'who has the capabilities to fill this critical job opening?' and 'what learning resources are available to address specific performance development needs?'" said Larry Israelite, director of strategic learning for Pitney Bowes, Inc. "In order to answer these kinds of questions, it's essential to have performance and learning systems that talk to each other. The goal is to have a continuous stream of activities and information from competency assessment to identification of development needs to specific training."

The Convergence of Learning and Performance Management is the first of several planned research reports on the topic of talent management, performance management, and best practices in the use of integrated technology to improve business operations through learning and development. The 50-page report, sponsored by Cornerstone OnDemand, is available to Bersin & Associates research members and can be downloaded for free at http://www.bersin.com/convergence.

About Bersin & Associates

Bersin & Associates is the only research and advisory firm solely focused on corporate-learning with a comprehensive research program targeted to the needs of learning and HR professionals and executives. In 2001, Bersin & Associates introduced the What Works(R) series, primary research that offers factual and practical insight that can improve program effectiveness and results, reduce costs, and avoid time-consuming and costly mistakes. The company develops industry-leading research studies, conducts intensive one-day topical workshops, and provides advisory services to corporations and technology vendors. For more information, go to www.bersin.com or call [phone].