OUTSOURCING AN EFFECTIVE LEARNING & DEVELOPMENT STRATEGY ISPI 2012 TORONTO, CANADA Sample PHASE 4: Future L&D System Architecture 1 ©2012 RAY SVENSON CONSULTING, INC. RAY SVENSON CONSULTING, INC. 112 Two Mile Bridge Road Roberts MT Office phone: Mobile phone: APRIL 18-23, 2012

©2012 RAY SVENSON CONSULTING, INC. 2 OUTSOURCING EFFECTIVENESS A December, 2003 report of the Corporate Leadership Council provides the following findings about the effectiveness of outsourcing: Outsourcing is very effective overall Outsourcing provides access to new skills and expertise Outsourcing may require significant upfront investment Outsourcing saves between 1 and 10% of HR’s budget in absolute terms Outsourcing is less expensive than performing activities in-house Outsourcing raises the quality bar Outsourcing improves timeliness of service There is a high level of satisfaction with HR outsourcing PHASE 4: Future L&D System Architecture

©2012 RAY SVENSON CONSULTING, INC. 3 OUTSOURCING OPTIONS Following are some of the L&D activities that can be effectively outsourced: Planning and Analysis  Strategic Planning for Learning and Development  Curriculum Architecture Design  Needs Analysis  Project Planning and Management Courseware  Course Design  Course Development  Course Delivery  Materials Design and Production  Results Measurement L&D Support Systems  Administrative Systems/LMS (Registration, Scheduling, Results Tracking, etc.)  Knowledge Management Systems  Workplace Learning Systems PHASE 4: Future L&D System Architecture

©2012 RAY SVENSON CONSULTING, INC. 4 TYPES OF OUTSOURCING VENDORS TO CONSIDER Individual freelancers L&D “gurus” Boutique L&D specialist companies Course development “factories” Course delivery “factories” Small consulting firms Mega consulting firms PHASE 4: Future L&D System Architecture

©2012 RAY SVENSON CONSULTING, INC. 5 THINGS TO CONSIDER FOR MAKING THE OUTSOURCING DECISION Available in-house expertise  Skills and abilities  Knowledge and experience  Technology  Project planning and management Available in-house person hours for required time-frame Budget $ Internal policies and standards regarding outsourcing Need for outside “credibility” for high-profile projects Desire to make outsourcing an opportunity for learning how to do it in- house Effective outsourcing requires an in-house manager to manage the project internally and work closely with the outsourcing vendor(s)