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ScalingScaling ResultsResults throughthrough LearningLearning atat MicrosoftMicrosoft

MaartenMaarten WeisbeekWeisbeek Customer Satisfaction and Market Research Evangelist Learning

SanjaySanjay AdvaniAdvani Senior Director - Business and Product Strategy Microsoft Learning MeetMeet MSFTMSFT

Founded 1975 Mission: ‘Help and businesses throughout the world realize their full potential’ 2005 2004

Net revenue $39.7B $36.8B

Net income $12.3B $8.2B

Employees 61,000 Worldwide 57,000 Worldwide 39,000 USA 37,000 USA

Average age of employees 36 years Offices in 119 countries 33 NewNew BusinessBusiness DivisionsDivisions

Microsoft Great Plains Software Microsoft Navision Windows Embedded Device O/S Microsoft CRM

Xbox PC and Online games SharePoint Portal TV Platform Microsoft LiveMeeting

Windows Server SQL Server SQL Server MSN Search Exchange Server Exchange Server MSN Internet Access Developer Tools Developer Tools MSN Messenger MS Learning MS Learning MSN Spaces Customer Support Services Customer Support Services Hotmail Microsoft Consulting Windows XP Services Center Tablet PC TheThe NewNew WorldWorld ofof WorkWork IntegratedIntegrated InnovationInnovation DriveDrive CustomerCustomer andand PartnerPartner ReadinessReadiness

“Customers“ShortagesAs important rankof as skilled skillthis accesslevellabor second are to among key factorsdelayingtechnology… that [IT] influence purchasing it is also deployment vital plans to providenot success.” only in developing economies, but in people with the educationForrester, and 2005 training in advancedhow to use countries,computers as and well.” the Internet.

IDC,Pamela 2005 Passman Microsoft Vice President Global Corporate Affairs TheThe MSMS LearningLearning LandscapeLandscape

Business Groups Tech/Research Sales Corporate

PlatformPlatform EntertainmentEntertainment && BusinessBusiness ProductsProducts && EEGEEG MSRMSR SalesSales HRHR MktgMktg DevicesDevices ServicesServices

PartnerPartner MSMS EngineeringEngineering SMSG People & Org TrainingTraining && SMSG People & Org LearningLearning ExcellenceExcellence Readiness Capability ReadinessReadiness Readiness Capability

MBSMBS MarketingMarketing Tier 1 Orgs Tier 1 Orgs EdEd SvcsSvcs TrainingTraining

RegionalRegional EnterpriseEnterprise MSN Ops GTSCGTSC IndustryIndustry SMSPSMSP TrainTrain MSMS MSN Ops ReadinessReadiness BMOsBMOs SalesSales ReadinessReadiness TrainingTraining && ReadinessReadiness ResearchResearch TrainingTraining Roles ReadinessReadiness Roles

OEMOEM ConsumerConsumer TrainingTraining OpsOps PMPM LrngLrng OfficeOffice PGPG

USUS PartnerPartner EdSGEdSG Tier 2 Orgs Tier 2 Orgs Products Annual Reach Exams (MCP + MOS) > 1 Million Help Microsoft Individual Assessments > ½ Million customers and E-Learning > ½ Million partners realize their Courseware > 1 Million full potential by Books > 3 Million providing them with the necessary knowledge and skills Content available in over 45 languages to optimize the and 71 countries adoption and use of Microsoft Information Workers, IT Professionals, solutions. Developers and End-users Key markets: US, UK, Germany and Japan Key channels: Certified Learning Solutions Partners (CPLS), Exam Delivery Partners, Retailers, Academic LifelongLifelong LearningLearning forfor LifelongLifelong EmployabilityEmployability

Assess. Learn. Apply. ScalingScaling ResultsResults ThroughThrough LearningLearning

DriveDrive customercustomer returnreturn onon softwaresoftware investmentinvestment BusinessBusiness valuevalue ITIT costscosts andand operationaloperational efficiencyefficiency FullyFully leverageleverage softwaresoftware assetsassets UpgradeUpgrade cyclescycles

GrowGrow loyaltyloyalty toto MicrosoftMicrosoft PlatformPlatform SkillsSkills InvestmentsInvestments DriveDrive SoftwareSoftware ROI…ROI…

An analysis of the total economic impact of training on Windows Server 2003 deployments finds a risk-adjusted ROI of 60% and a payback of within 12 months (Forrester Research 2005*) Ref. Project Cash Flow Calculation Value Costs Costs R1 Total costs ($16,700) Cost of training R2 Total benefits $26,688 Cost of lost productive time R3 Total $9,988 Benefits R4 ROI (R2-R1)/R1 60% 15% reduction in time to deploy (faster time R5 Payback period Within 12 to realize the benefits of Windows Server months 2003) Lower cost of system support Flexibility 10% reduction in cost of system The ability to do future related deployments support cheaper and faster because of training as a Improved system availability flexibility option Improvement from 99.8% system Risk availability to 99.9% system The risk that staff is not around to solve availability problems if and when they occur 20% improvement in deployment project The risk that training is not valuable because it success rate doesn’t cover the scenarios that systems administrators encounter in the real world

* Research Study commissioned by Microsoft Learning, full case study results available from [email protected] …… andand LoyaltyLoyalty toto MicrosoftMicrosoft

FY05 US IT Pro y% Certifications Product Registration PSS Calls Events At Least 1 MSDN Newsletters Engagement Type Webcasts On-Line Wizards TechNet

Average VSAT%

No Engagement Satisfaction withSatisfaction Microsoft x% 0% 70% % Individuals Participating in Engagement Type MetricsMetrics thatthat MatterMatter objectivesobjectives

Drive Customer Build Trust Establish Satisfaction Loyalty

Driven by quality of a Driven by consistency of Driven by value product or service product/service quality created for customers

Measure and Improve Benchmark and Measure, improve and Satisfaction with: improve quality across demonstrate value providers, trainers, delivered to customer courses and form Learning Provider Multiple loyalty factors dimensions: Trainer ROI tools to drive Learning Provider Content consultative sales approach and deeper Microsoft Learning customer engagement Microsoft Platform

¾ Key metric: % of respondents Satisfied / ¾ Key metrics: ¾ Key metrics: Dissatisfied Dissatisfied ƒ Satisfaction index Business results / ¾ Consistent MSL survey training impact instruments across different Likelihood to products/form factors recommend/repurchase ¾ Continuous data collection ¾ Customer lifecycle (post- and evaluation event and follow-up survey) Customer satisfaction

Q2Q2 FY06FY06 CPECPE updateupdate CPE

Product Partner satisfaction satisfaction CSAT index

H1 FY06 Variance Variance NSAT FY05 vs. budget FY06 Goal Y/Y Product satisfaction Customer satisfaction (MCP) Partner satisfaction (MCT + CPLS)

Individual metrics FY05 H1 FY06 Variance Variance NSAT FY06 Goal Y/Y vs. budget

Assessments Exams E-Learning ILT/Courseware Books

MCT Microsoft Certified Professional Exams

1 Key trends 2 Title ranking • Q2 FY06 NSAT inline with budget and FY05 total FY06 Top 3 Titles by NSAT (n>25) – Q1 Q2FY0 H1 Chang • Q2 NSAT increased by 4 points versus Q1 FY06 FY05 Pass FY06 6 FY06 e Y/Y • NSAT for Pass/Fail as subgroups increased slightly in FY06 versus FY05 70-306: Developing and Implementing MSFT Win-based Apps FY05 Q1 - Q2 – H1 Goal Variance Variance 70-305: Developing and Implementing Web FY06 FY06 FY06 Y/Y budget Apps NSAT 70-210: Installing, Configuring, and Administering 2000 Exams FY06 Bottom 3 Titles by NSAT (n>25) – Q1 Q2FY0 H1 Chang FY05 Pass FY06 6 FY06 e Y/Y Fiscal year Pass/ Fail NSAT Evaluation % of total count count 70-296: Planning, Implementing, FY05 Fail Maintaining a WS03 Environment Pass 70-297: Designing a WS03 and Network Infrastructure FY06 Fail Pass 70-292: Managing and Maintaining a WS03 Environment

3 Attribute ratings 4 Satisfaction drivers (Pass)

Net Attribute Score High Importance/ High Importance/High FY05 H1FY06 Change Y/Y Low Satisfaction Satisfaction (top 2 box – bottom 4 box) + 100

Exam registration process Ability of exam to test real-life problems Degree to which question format is Test center quality appropriate for skills tested Rigor of content Clarity of exam questions Degree to which exam Language quality content ensures Impact of passing exam: career potential ongoing quality of MCPs Ease of finding training resources Weight Relevancy of skills tested to Appropriateness of question format type of job performed Impact of passing the exam on career potential Usefulness of score report Derived Importance Importance Derived Effectiveness of the Impact of exam prep: job effectiveness Exam Prep Guide to prepare for this Relevancy of skills to job exam Usefulness of Alignment of Microsoft training score report Ability of exam to test real-life problems resources with this exam Quality of training resources Clarity of questions % ‘Extraordinary/Outstanding’ Rating Alignment training resources to exam Lower Importance/ Effectiveness of prep guide Low Satisfaction Lower Importance/High Satisfaction LearningLearning analyticsanalytics –– nextnext stepssteps

Drive deeper usage of data with internal MSFT stakeholders Improve survey tools (e.g. follow-up survey) More detailed understanding of learning impact on customer behavior with MSFT software Link training results to more specific learning objectives Link training results to specific customer groups (IT Pros vs. Developers, Decision-maker vs. Implementer) Drive usage of ROI tools with training channel Better understand perceived difficulty of Microsoft products or feature sets and customer skills levels © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.