Bersin by Deloitte 2017 Predictions Everything is Digital

Bersin by Deloitte 2017 Predictions Everything is Digital Josh Bersin Founder, Bersin by Deloitte Principal, Deloitte Consulting LLP January, 2017

Forces Disrupting Organizations Today Demographic and political upheaval: Digital technology infiltrates our lives: Need to increase speed and employee experience: Career and social contract with employees changed: Millennials make up more than half the workforce. Boomers working into their 70s and 80s, and a new wave of nationalism. Technology is disrupting business models and radically changing the workplace and how work is done. Engagement is flat, people are distracted, hierarchical structures are going away, yet speed is increasing. Employees now demand rapid career growth, compelling and flexible workplace, purpose, and increased earnings.e of purpose at work. MIT Deloitte Research, 6/2015 Aligning the Organization for its Digital Future Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 2

Digital Disruption A New Industrial Revolution 90% of organizations surveyed by MIT and Deloitte anticipate their industries will be totally disrupted by digital trends. As used in this document, Deloitte means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 3

The Future of Work Robotics, AI, Sensors are Here Siri Cortana Watson Alexa Viv Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 4

Robots Average cost below $25,000. China purchasing 150,000 in 2016 to deal with shrinking workforce In 1900 41% of US jobs were in agriculture. It s around 2% today. There is no fundamental economic law that guarantees every adult will be able to earn a living solely on the basis of sound mind and good character. - Daniel Akst, What we can learn from anxiety about automation Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 5

Impact of Robotics and AI on Work Jobs Shift to Skills Which Are Essentially Human Source: Talent for survival Essential skills for humans working in the machine age, Deloitte UK 2016 Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 6

The overwhelmed employee The average US worker now spends 25% of their day reading or answering emails The average mobile phone user checks their device 150 times a day. More than 80% of all companies rate their business highly complex or complex for employees. 40% of the US population believes it is impossible to succeed at work and have a balanced family life. Fewer than 16% of companies have a program to simplify work or help employees deal with stress. Sources: Deloitte Human Capital Trends 2014 and 2015 The average US worker works 47 hours and 49% work 50 hours or more per week, with 20% at 60+ hours per week Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 7

Productivity is suffering is technology helping? US productivity last ten years i-phone launched 100 million Twitter users 1 billion smartphones Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 8

We Are Working More Hours: The Vacation Crisis 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. 48% of Millennials want to be seen as a work martyr Millennials 50% more likely to forfeit vacation days Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 9

2. Culture and engagement remain top priorities Engagement Remains a Challenge Average 3.2 What are these companies doing? Summer, 2016 Glassdoor Bersin by Deloitte Research Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 10

Talent and HR Predictions for 2017 1. Organization design will be challenged everywhere 2. Culture and engagement remain top priorities 3. Real time feedback and analytics explode in maturity 4. New generation of performance management tools 5. Wellbeing and human performance emerges as critical 6. Employee experience becomes central focus for HR 7. Digital HR, learning, and recruiting displaces cloud 8. Leadership market reinvents itself again 9. Inclusion, unconscious bias, diversity goes mainstream 10.L&D will struggle to reinvent itself 11.Future of work will push HR into a strategic role Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 11

Percent rating trend important Importance of Human Capital trends to business % ve r y i m p o r t ant 2 0 16 % ve r y i m p o r t ant 2 0 15 Organizational design 92% 56% The gap between need and capability has increased 400% since 2014 Leadership Culture Engagement Learning 89% 86% 85% 84% 57% 54% 48% 44% 50% 50% 39% Design thinking 79% 39% Skills of HR organization 78% 36% 39% People analytics 77% 36% 29% Digital HR 74% 32% Workforce management 71% 28% Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 12

1. Organization design will be challenged everywhere A network of teams B A A Shared values and culture Transparent goals and projects B F C D Free flow of information and feedback C D E E G People rewarded for their skills and abilities, not position How things were How things are How things work Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 13

3. Real time feedback and analytics explode in maturity What We ve Learned about Feedback Lack of feedback creates anxiety, worry, and poor performance Source: http://www.ncbi.nlm.nih.gov/pubmed/19829208 Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 14

The Feedback System How Does Feedback Work Today? Employees Time Per Year Engagement Survey Performance Review Line Managers HR Filtering and Cleaning Senior Management Team Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 15

Feedback is the Killer App The World of Feedback Apps is Here` Traditional Engagement Surveys Pulse Surveys Quick Feedback Performance Management Social Recognition Culture Work Environments Team Management Apps Well Being Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 16

Feedback = Performance at Deloitte Questions that Predict High Performance at Deloitte 1 Pulse Survey items 1. I am really enthusiastic about the mission of the firm 8 4.4 4.2 4.0 2 2. At work, I clearly know what is expected of me 3.8 3. In my team, I am surrounded by people who share my values 4. At work, I have the chance to use my strengths every day 7 3.6 3.4 3.2 3 5. My teammates have my back 6. I know I will be recognized for excellent work 7. I have great confidence in the firm s future 8. In my work, I am always challenged to grow 6 4 Source: Deloitte pilots FYs14-15 Questions Marcus Buckingham Company. Bottom Quartile Middle Quartile Top Quartile 5 Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 17

The Listening Organization Enterprise Feedback Architecture Pulse Surveys Annual Survey Anonymous Feedback Tools Customer Satisfaction Integrated Reporting & Analytics Sentiment Analysis Network Analysis Social Media Monitoring Employment Brand Exit Interviews Performance Appraisals Performance Check-ins Job Boards & Ads Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 18

People Analytics: Taking Off Progress is Rapidly Accelerating 2015 2016 % Change Plan Performing multi-year workforce planning 38% 48% + 26% Correlate Correlating people data to business performance 24% 39% + 63% Correlating people data to business performance (% excellent) 5% 11% + 120% Predict Using people data to predict business performance 28% 36% + 29% Using people data to predict performance (% excellent) 4% 9% + 125% Deloitte Global Human Capital Trends, 2016 and 2015 Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 19

4. A New Generation of Performance Management Tools Reinvention of Performance Management Arrives Then: The Networked Hierarchy Now: The Digital Organization Cascade and align corporate goals Drive and measure top-down execution Evaluate high performers Force out low performers Allocate pay for performance Assess competency gaps Create development plans Identify HIPOs, leadership candidates Create real-time team-centric goals Drive front-line, iterative execution Help everyone perform at high level Develop and coach low performers Differentiate pay for performance Provide continuous learning Give positive developmental feedback Engage teams and assess next role Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 20

What s Really New? Almost Everything! Vendor A Check-ins Transparent Goals Integrated into Workflow Fundamental Changes Are Enormous Annual Process Continuous Peer Feedback Feedback to Manager Engagement Survey Vendor C Vendor B Individual Assessment The New World of Performance Management Vendor D Vendor F Vendor G Team Assessment Mobile App Regular Evaluation Continuous Micro- Learning Vendor E Manager-Centric Hierarchical Competitive Subjective Secret Single Rating Team-Centric Multi-Directional Developmental Data-Driven Transparent Richer Rating Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 21

And Yes, The New Models For PM Do Work 27 companies that redesigned their process, found overwhelmingly positive outcomes: 100% said conversation quality improved 83% said conversation frequency increased 90% said employee engagement increased 91% say data for evaluation is better 96% say tools are easier and simpler 77% expect continuous feedback 45% are using check-ins to assess managers 50% say training process is easier and shorter 67% doing feedback quarterly 80% expect employees to drive check-ins Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 22

Employee Vitality 5. Wellness matures and becomes central From Wellness to WellBeing to Performance Family Exercise Sleep Self Discovery Career Fitness Recognition Purpose Drive Skills and Training Wellbeing Mindfulness Work Environment Sustainable Performance Rewards Leadership Health Monitoring Stress Nutrition Abundance Mentality Positive Thinking Management Clear Goals Medical Benefits Employee Assistance Challenges Culture Fit Growth Opportunities Cost Reduction Labor Productivity Retention Productivity Collaboration Team Performance Business Performance Leadership Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 23

Changing Employee Habits Personal plan Culture of fitness Challenges, Leaderboard Apps, Wearables Groups Rewards Storytelling Management support Slack time Facilities Leadership Photo: https://squashskills.com/blog/-/does-jogging-have-any-benefits-for-squash-players-159/ Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 24

6. Focus on the Employee Experience Careers have changed and so have people Our candidates today are not looking for a career They re looking for an Experience. Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 25

Culture, value, leadership, and career (The Big Four) What matters to employees Culture and leadership are 3X more important than salary in your employment brand. Career development and learning are almost 2X more important than comp, benefits, and work environment. Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 26

9/1/2008 11/1/2008 1/1/2009 3/1/2009 5/1/2009 7/1/2009 9/1/2009 11/1/2009 1/1/2010 3/1/2010 5/1/2010 7/1/2010 9/1/2010 11/1/2010 1/1/2011 3/1/2011 5/1/2011 7/1/2011 9/1/2011 11/1/2011 1/1/2012 3/1/2012 5/1/2012 7/1/2012 9/1/2012 11/1/2012 1/1/2013 3/1/2013 5/1/2013 7/1/2013 9/1/2013 11/1/2013 1/1/2014 3/1/2014 5/1/2014 7/1/2014 9/1/2014 11/1/2014 1/1/2015 3/1/2015 5/1/2015 7/1/2015 9/1/2015 11/1/2015 1/1/2016 Workplace Culture Keeps Getting Hotter! 3.5 US Workplace Culture Growth in Google Trends, since 2008 Recession 3 2.5 2 1.5 1 0.5 0-0.5-1 -1.5 Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 27

Millennials Skills are Not Being Utilized And They Will Leave to Find The Growth Opportunities They Want Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 28

Culture and engagement are related, but different CULTURE The way things work around here Series of behaviors that is closely aligned with strategy Includes values, beliefs, behaviors, artifacts, and reward systems that influence people s behavior Driven by top leadership and is deeply embedded through processes, reward systems, and behaviors ENGAGEMENT The way people feel about the way things work around here Way of describing employees level of commitment to the company and their work When engagement is poor, employees feel uneasy or uncommitted Declines in engagement lead to declines in overall productivity Culture predicts Company performance. Engagement predicts Individual performance. LEADERSHIP AND MANAGEMENT The driving force behind setting and maintaining Culture and Engagement via modeling behaviors and expectations for the workforce Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 29

Bersin by Deloitte Engagement Model The Simply Irresistible Organization Meaningful Work Hands-On Management Positive Work Environment Growth Opportunity Trust in Leadership Autonomy Clear transparent goals Flexible, humane work environment Facilitated talent mobility Mission and purpose Selection to Fit Coaching & feedback Recognition rich culture Career growth in many paths Small Teams Leadership Development Open flexible workspace Self and formal development Investment in people, trust Transparency and communication Time for Slack Modern Performance Management Inclusive, diverse culture High impact learning culture Inspiration Collaboration and Connection Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 31

7. Emergence of Digital HR, Learning, Recruiting HR Technology Now A Hot Marketplace Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 33

Risk Moving beyond the cloud Rip and Replace Pace is Slowing Core HR Technology spending is slowing (41% say it s flat) How Will You Upgrade Your HR Technology? Clients not fully satisfied: only 21% of customers say talent systems always meet their needs. Two biggest growth areas are Learning and Analytics (37% yty) Career, succession, onboarding, analytics hottest functional needs User satisfaction is 2/3 lower than vendor satisfaction 2015 Cedar Crestone survey and 2015 Bersin by Deloitte HR Systems Research Speed Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 34

M A R K E T G R O W T H A D O P T I O N 2017: A New Set of Disruptive Applications Feedback and Engagement Reinventing Performance Video Based Learning & Career Team Management Well-Being Work Team Management Pulse Survey Text Analytics Checkins with Feedback Agile, open goal management Culture Assessment Video Learning Intelligent Learning Content Curation Gamification Accreditation Team Assessment Tools Social Recognition Integrated Smart Tools For Leader Coaching Engagement tools directed to leaders Well Being Fitness Tracking Competitions Social Sharing Points Gamification Fitness Merges w/engagement Virtual Work Management Communications Messaging Document Management Goal Sharing Goal Tracking Mobile Feedback Coaching Tools Career Planning Org Network Analysis Curated Micro-Learning 2016 P R O G R E S S I O N O V E R T I M E 2020 Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 35

Convergence of HR Systems Ahead Mobile Feedback Pulse Survey Surveys Engagement Tools Customer Feedback Engagement Analytics Fitness Monitoring Diet Wellness Travel Time Management Fitness Challenges Health Behavior Change Engagement Feedback Well Being & Work Management Goal Management Feedback Personality Assessment Check Ins Performance Performance Review Video Learning Video Sharing Training and Certification Learning Gamified Onboarding Career Planning Social Recognition Customer based Recognition Anniversaries Work Events Community Circles Affinity Groups Recognition Rewards Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 37

From Application Tracking to Recruitment Success Reinvention of the Talent Acquisition Market Onboarding Manager Tools? Next Gen Talent Acquisition Candidate Marketing Sourcing Video Interview Analytics Applicant Tracking Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 38

AI Applied to Recruitment and Selection Video Analytics Becomes Real Video interviewing now nearly mainstream, as many as 40% of interviews are done digitally AI software (HireVue) can now detect race, emotion, gender, and tendency to exaggerate or lie through video While use of this data is not legally defensible yet, companies are actively using this data to select candidates https://www.fastcompany.com/3064863/election-2016/watch-thisai-platform-assess-trumps-and-clintons-emotional-intelligence Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 39

AI, natural language, chat integration, and experience platforms And There s More to Come Workflow Content Videos Podcasts Interaction Bots Notifications Campaigns Case Management Real-Time Analytics Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 41

Bersin by Deloitte 8. Leadership market reinvents itself Leadership development is a broken market Level 4 Systemic Leadership Culture, structure, exposure, risk-taking, HR-business integration 7% Level 3 Scalable Leadership Capability models, culture, executive commitment, rewards 18% Level 2 Integrated Leadership Competencies, programs, audience-specific, talent management 58% Level 1 Foundational Leadership Content and Curricula, Programs by Levels, Offerings as Benefits 17% Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 42

Focus areas Weakest area seems to be Millennial programs Maturity growth in global and experiential programs, but not enough focus on Millennials (% companies who are excellent at these areas) 70% of Millennials tell us they are receiving no leadership development at all. Deloitte Global Human Capital Trends 2016, n=7,000 Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 43

Too Many Good Ideas Out There to Pick From Unfortunately, while much ink has been spilled on the topic of individual leadership, very little of it can be scientifically supported. In an influential book published in 1991, the University of San Diego s Joseph Rost pointed out that writers had defined leadership in more than 200 ways since 1900, often with nothing but conjecture or personal experience to back up their claims. https://hbr.org/2016/12/succession-planning-what-the-research-says Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 44

The Digital Organization Digital DNA Like human DNA, Digital DNA carries the 23 underlying instructions, development, functioning, and replication for being digital. These are expressed as digital traits and characteristics. They are present in all areas of the organization: business models, operating models, customer interaction, organization structure, talent, technology, cyber-security, culture, etc. There are four levels of Digital Maturity: Exploring, Doing, Becoming, and Being. Deloitte Consulting LLP Continuously Innovating Real Time & On-Demand Ongoing Shifts in Decision Rights and Power Modulating Risk & Security Boundaries Fluidity Geography Agnostic Morphing Team Structures Intentionally Collaborative Dynamic Skill Requirements Changing Nature and Typology of Work Constant Disruption Increased Customer Involvement Democratizing Information Multi-Modal Operations Uneven Velocity between Digital & Legacy Productive Mobility (non-traditional workspace options) Changing Mix of Traditional & Non-traditional Stakeholders Flattening and Changing Hierarchy Agility Continuous Ecosystem Disruption Constantly Changing Decision Criteria Fail Early, Fail Fast, Learn Faster Iterative Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 45

CEO s Do Not Understand The Issue Yet 67% of CEOs responding to a recent Korn Ferry study believe that technology will create more value than human capital. 44% of leaders in large global businesses believe that the prevalence of robotics, automation, and ATI will make people largely irrelevant in the future of work. And, to make it worse, 46% say they do not know how to measure workforce performance. Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 46

Bersin by Deloitte 9. Inclusion, bias, diversity go mainstream Inclusive Talent Practices Drive Financial Results The New Bersin by Deloitte Talent Management Maturity Model Level 4 Level 3 Level 2 Inclusive Talent System Talent strategies integrated with inclusion, diversity, and culture Managed Talent Relationships Workforce planning, development planning, leadership development integrated into talent strategy Critical Talent Growth Critical talent segments, focus on hiring, training, performance 10% 19% 59% Level 1 Essential Talent Activities Standalone disconnected staffing, training, and performance practices 12% Source: Bersin by Deloitte, Deloitte Consulting LLP, 2015. Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 47

Polling question Where would you place your organization on the Inclusion Maturity Model? Level 1 Standalone disconnected staffing, training, and performance practices Level 2 Critical talent segments, focus on hiring, training, performance Level 3 Workforce planning, development planning, leadership development integrated into talent strategy Level 4 Talent strategies integrated with inclusion, diversity, and culture Not sure / NA Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 48

Effective Inclusion Is A Leadership Issue Six Signature Traits of Inclusive Leadership https://dupress.deloitte.com/dup-usen/topics/talent/six-signature-traits-ofinclusive-leadership.html Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 49

Unconscious Bias Takes Center Stage People are inherently biased Age, gender, experience, proximity, race Training and workshops are the new rage Training is good but not enough Bias can be removed from processes not people Recruitment and selection Promotion and leadership Compensation and rewards Leaders held accountable New data driven solutions drive out bias fastest We have proof that diverse teams perform better, are more innovative, and more engaged https://hbr.org/2016/11/why-diverse-teams-are-smarter https://hbr.org/2016/09/diverse-teams-feel-less-comfortable-and-thats-why-they-perform-better Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 50

Our Data Proves Value of Inclusive Talent Practices As compared with organizations of similar size and less mature talent management practices, mature large organizations had 2.3 times higher cashflow per employee over a three-year period. When contrasted against less mature small organizations, mature small organizations had 13 times higher mean cashflow from operations, five times higher mean cashflow as a percentage of revenue, and five times higher mean annual change in share price (all based on a three-year average). Source: 2015 High-Impact Talent Management, Bersin by Deloitte, Deloitte Consulting LLP Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 51

10. L&D will struggle to reinvent itself The learning curve is the earning curve Over 300 years of economic history, the principal and most enduring mechanism for distribution of wealth and reduction in inequality is the diffusion of skills and knowledge. Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 52

Consumerization of education has arrived MOOCs Forever Changed Education 400+ universities. 2,400+ courses. 35+ million students. Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 53

The training industry tries to respond L&D is Not Keeping Up Average employee spends 6.5 hours a week learning or trying to learn 2/3 of L&D leaders believe learners should use learning every week or more. CLOs say L&D is wildly out of sync with how people learn. Employees rate L&D -31% net promoter score (49% would not recommend and only 18% would recommend their training dept.) Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 54

Shifting resources away from ILT, toward online and on the job Huge shift in content strategy 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 Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 55

End of the Learning Management System? A New Market Emerges: Learning Experience Platform The Learning System Mobile Pathways Courses Videos People Articles Channels Search Curation Recommendations Machine Learning The Learning Management System (LMS) Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 56

The Future of Work is Here, And It s Our Job To Deal With It One Final Point: Jobs are not going away Empathy, creativity, and human skills are more important than ever But we must design our organizations and jobs to empower people and the customer experience. Source: http://www.forbes.com/sites/joshbersin/2016/09/21/the-future-ofwork-its-already-here-and-not-as-scary-as-you-think/#7b44ff1c5506 57 Copyright 2016 Deloitte Development LLC. All rights reserved. HR 2017 Bersin by Deloitte predictions for the year ahead 57