A Look Ahead at Learning in 2012

As IDC reported in September, firm spending on learning and development has been volatile since 2008, declining and recovering in reaction to the global financial crisis and its abatement. Recently, increased economic uncertainty has again caused learning and development budgets to come under pressure.
Every other month, IDC surveys Chief Learning Officer magazine’s Business Intelligence Board (BIB) on a variety of topics to gauge the issues, opportunities and attitudes important to senior learning executives. For the last several years, members of the BIB have been asked to share their outlook for the year ahead. This month the survey focus is on discovering how CLOs feel about 2012 and contrasting that to how CLOs have felt in recent years.

A Mixed Bag for 2012
A growing number (17 percent) of learning and development executives are less optimistic about the outlook for employee development. For the first time, less than 50 percent of CLOs are more optimistic. CLOs have passed through a difficult period, but a large number expect learning and development “will continue to evolve into a stronger entity recognized as contributing to delivery of business strategies and objectives.” Some see different writing on the wall and think CLOs “will be under severe cost-cutting pressure unless [they] can defend the strategic and financial impact.”

For those who are optimistic, the reasons are not surprising: economic recovery — “gradual recovery, but better than 2011” — and “many skills shortages” combined with “increased awareness of the critical part training plays in success of organizations.” Learning organizations and the wider enterprise realize that in the current economic situation, having highly effective people makes the difference as long as learning leaders align what they are doing to the business goals.

The economic conditions haven’t returned to pre-crisis levels and will continue to impact training budgets. To some, signs of economic recovery are unclear: “The economy has impacted our training organization … It’s not a time to grow or expand,” one survey respondent said.
Nevertheless, companies are expecting increased positive developments in the role the training function plays. Compared to last year: