2007 Predictions:

1. There will be a continued increase in training budgets. Training-related spending increased by 7% in 2006, the highest increase in five years. We expect spending in 2007 to match or even exceed this rate.
2. The structure and operation of corporate training will change. Learning organizations are increasing their spending on technology. In fact, in 2006, payrolls declined on average by 11%. New skills and management structures will be needed to meet training's new role as a shared services organization.
3. The use of outsourcing will become standard practice. Companies have discovered that outsourcing can help them implement an infrastructure that reaches more employees at far lower costs and allows staff to focus on company-specific needs and performance consulting. We believe every organization should have a defined outsourcing strategy in 2007.
4. Leadership development will take center stage. Research in 2006 showed leadership development and management training to be the highest areas of program spending. Spending will likely be higher in 2007 as companies scramble to fill the leadership pipeline.
5. Talent management will change the role of HR. HR's mission, supporting technology, staffing resources, and priorities will all continue to change, and likely at a rapid rate. Performance management, competency management, and talent-driven learning will be areas in which HR and learning are tightly aligned.
6. Elearning will continue to mature and evolve. Now that eLearning is mainstream, companies are moving to more sophisticated uses of eLearning content and technology - such as for performance support, collaborative learning, and simulations.
7. Content management will become an imperative. About forty percent of mature LMS users are now considering or actively searching for content management solutions. We believe any company at Stage 2 or 3 of our Elearning Maturity Model should have a defined content management strategy in 2007.
8. Elearning 3.0 will arrive. First, there were online self-study courses; then came virtual instructor-led training. The next stage is self-published training - resources such as blogs, wikis, and podcasts. Innovative training organizations are now working to harness these resources.
9. New approaches to eLearning will emerge. Among the 2006 Learning Leaders are organizations that have implemented "high-fidelity" online training programs. These instructionally rich courses, which include avatars and sophisticated simulations, were designed to develop and deepen mastery in areas such as customer service and sales.
10. The LMS market will continue to morph. Many companies are now looking to LMS solutions as the foundation for talent-management platforms, with modules for performance management and integration with other HR systems. The market will see more partnerships, mergers, and acquisitions to meet the new demands on HR and learning convergence.