Technology and Talent Development -...

A Learning@Cisco Survey Report

> Executive Summary

> IT Manager Survey

> Staff/Skill Shortages

> Technology Initiatives

> Development Priorities

> Training Practices

> Value of Certifications

> Targets for Certification

Technology and Talent Development: The IT Manager View

Click the sections below to learn more.

August 2015 | © 2015 Cisco Systems, Inc. All rights reserved. 1

http://www.cisco.com



For a long time now, IT organizations have worked in a support role and, as a result, have emphasized cost savings and efficiency as primary indicators of success.In this age of digital business, IT is being asked to do so much more.

Executive Summary

IT Manager Survey

Staff/Skill Shortages

Technology Initiatives Development Priorities

Training Practices

Value of Certifications

Targets for Certification




EXECUTIVE SUMMARY

Going forward, IT is being asked to take a lead role in driving digital business success. Through close partnerships with lines of business, which control most technology spending these days, IT not only must provide the underlying systems and services supporting digital business initiatives, but must also drive such initiatives, as well as technology and process innovation, front-line project delivery, and regulatory compliance.

As IT’s role intensifies, so too is the role of the underlying IT staff. IT staffs can no longer be content with simply keeping the lights on or squeezing the cost out of every IT resource. Just as IT is advancing as a whole, individual staff members must move with it toward a more strategic, proactive role in the execution of the business.

Executive Summary >

IT Manager Survey



Training Practices






EXECUTIVE SUMMARY

The 2015 IT Manager Survey reflects the rising importance of the IT staff. The following key takeaways show IT management’s commitment to develop and hire an IT staff ready for the many challenges of the digital business age:

Emphasis on Service Quality With technology spending more and more under the control of lines of business, IT must assert itself as the technology leader within any organization within any industry. IT can do this by providing higher-quality services to its business partners—both inside and outside the organization. Higher-quality IT services are driven by higher-quality IT staff. Expansion into Digital Business As IT’s role shifts from a simpler and more tactical operations function to a more comprehensive and strategic business innovation function, IT staffing needs will extend well beyond traditional operational roles such as administrator and programmer. Instead, demand for new roles such as analyst, architect, designer, integrator, auditor, and project manager will rise rapidly.

Technology and Talent Moving in Lockstep All organizations want to take advantage of new technology. And in this age of the Internet of Everything, business and technology innovation go hand-in-hand. This is why every budget is an IT budget and why lines of business are accounting for more of technology spending. As technology

moves to the forefront of business, it is apparent that without the right IT talent in place to drive success—whether within a formal IT organization or within the technology arm of a line of business—digital business initiatives either won’t live up to their promise or, worst of all, will fail miserably.

Commitment to Staff DevelopmentNew IT roles and responsibilities require new IT staff skills—or new IT staff. Since new qualified people are hard to find and competition for the ones found is intense, we are seeing an increase in investment in existing staff. IT managers responding to this survey indicate not only strengthening financial support for training, but also a commitment to populate their IT team with fully certified workers. IT managers want validated talent in order to ensure quality service, but also to upgrade their own organization’s talent profile in the face of technology and digital business expertise building up outside the IT organization. Just as every budget is an IT budget, it would seem that in today’s world, every worker is an IT worker.

Driving Value Through Industry Certifications Every IT manager seems to be in search of certifications with value. The greater the value, the better the return for the organization—and the staff member. Here, the return for the organization is seen in such key areas as higher-quality services to partners, greater staff efficiency and effectiveness, and heightened system, application, and information impact and integrity. And for the staff member, improvements can be seen in satisfaction, engagement, and retention—three vital worker success factors.

Executive Summary >

IT Manager Survey



Training Practices






IT MANAGER SURVEY: A FOCUS ON STAFF DEVELOPMENT

In April 2015, 200 U.S.-based IT managers completed an online survey executed by global research firm Illuminas for Cisco.The survey was focused on exposing views into the following areas relating to IT:

• Staff and skill shortages

• Key technology initiatives

• Staff development priorities

• Staff training practices

• Value of IT industry certifications

Respondents represented midsize to large organizations across a wide array of industries. All respondents had direct involvement in their organization’s IT and digital business initiatives, and all were responsible for the development and hiring of IT and technology- related staff. (See Figure 1 for respondent profile.)

Executive Summary

IT Manager Survey >



Training Practices






IT MANAGER SURVEY: A FOCUS ON STAFF DEVELOPMENT

Figure 1. 2015 IT Manager Survey—Profile of Survey Respondents

Manufacturing Government Finance Insurance Education Healthcare Professional Services

Telecom Retail Software Development

12% 12% 10% 9% 9% 8% 7% 6% 5% 5%

TOP 10 INDUSTRIES

TOP TITLES

Manager/ Supervisor

Director/ Dept. Head

C-Level Vice President Engineer

50%

29%13%

8%1%

Average 10 years in position, average 21 years in profession

IT RESPONSIBILITY

Makes IT decisions; part of IT department

Makes IT decisions; not part of IT department

Involved in IT decisions; primary job elsewhere

91%

6%

3%

TECHNICAL CERTIFICATIONS INVOLVEMENT

98%

69%

54%

51%

Manages technically certified employees

Works with technically certified employees

Hires technically certified employees

Holds technical certification

COMPANY SIZE

500– 999

1,000-4,999

5,000–9,999

50,000 or more

25,000–49,999

10,000-24,999

20%

8%

12%

15%

28%

18%

Percentages in this graph and the one above it do not total 100 percent because of rounding.

Executive Summary

IT Manager Survey >



Training Practices






IT STAFF AND SKILL SHORTAGES: ARE THEY REAL? WHAT TO DO?

As global human resource analyst Josh Bersin of Bersin by Deloitte has stated, “In 2014, the problem we face is not a shortage of people—it is a shortage of key skills.”IT managers see this firsthand. They feel the pressure to innovate across both technology and business and, yet, without the right skills in place, innovation is stunted or halted altogether. Most IT managers see a shortage of needed skills not only in their own workforce, but also in the pool of candidates they evaluate for hire. (See Figure 2.)

And when the right candidate is found, competition for that person is intense. One respondent here captures the prevailing sentiments of survey participants:

“A professional with these key skills is highly sought after by many companies. It is difficult to find and retain these professionals at our pay scale.”

“ The pool of highly qualified candidates familiar with current and advanced technologies seems to be shrinking.”

— Statement by Executive-Level Survey Participant

THERE REALLY IS A STAFF AND SKILLS SHORTAGE

Figure 2.

Think it’s at least somewhat difficult to find or develop individuals with the skill sets they need

68%

Believe there is a shortage of critical IT skills in their area

60%

Executive Summary

IT Manager Survey

Staff/Skill Shortages >


Training Practices






IT STAFF AND SKILL SHORTAGES: ARE THEY REAL? WHAT TO DO?

With critical skill shortages in their existing workforce and fierce competition for available new hires with the right skills, the vast majority of IT managers are turning inward, preferring to develop their existing staff. (See Figure 3.) And this development does not seem to stop at providing basic skills training. Indications are that IT managers want to take their staff training all the way through to formal skill certification. Here, the skill is not only taught, but also validated.

This commitment would seem to have a number of benefits. For IT managers, certified staff serves as proof that their group is “all in” when it comes to delivering the highest-quality services. In organizations where everyone is a technology “expert,” certified staff members are able to rise above the crowd. For the IT staff, certification serves as proof that their employer is committed to their professional development. And worker studies all point to the positive impact that investment in development has on employee satisfaction, engagement, and retention. Furthermore, let’s not forget the multiplier effect seen when highly qualified staff work together, which is almost always the case within IT DevOps environments and cross-functional IT projects.

ORGANIZATIONAL APPROACH TO DEVELOP EXISTING VS. HIRE NEW

Develop existing employees

76%

Don’t know2%

Hire new employees

22%

ORGANIZATIONAL APPROACH TO FORMAL CERTIFICATION

Don’t know3%

Favor training employees; don’t favor employees gaining formal certification

21%

Favor training employees AND having employees gain formal certification

76%

Figure 3. IT Staff Development: Build or Buy, Train or Train/Certify

Executive Summary

IT Manager Survey

Staff/Skill Shortages >


Training Practices






KEY TECHNOLOGY INITIATIVES: A POINTER FOR STAFF DEVELOPMENT

One doesn’t need to look hard for career development guidance if you’re a staff member looking to develop the right skills and have a greater impact on your organization.Top technology initiatives—for your own organization, for competitors, for leading-edge organizations in your area or industry—provide a learning and development roadmap for IT staff. (See Figure 4.)

It is also good to remember to use a wide-angle view when examining top technology initiatives. Most large-scale technology efforts such as cloud, mobility, or security require a mix of staff with specific skills to succeed. The same can be said for onrushing initiatives such as digital business and the Internet of Things (IoT). No one person can know it all—not even the most expert guru. It should also be noted that, in today’s project-driven IT environment, IT staff members are expected to work on multiple projects simultaneously. For example, a staff member with advanced networking skills could be engaged for cloud or mobility or Internet of Things (IoT) projects. Similarly, a staff member with advanced security skills could be utilized not only for cybersecurity projects, but also for cloud, IoT, or mobility projects. The larger the project, the larger the team, and the larger the array of skills required.

PERCENT OF ORGANIZATIONS SELECTING TECHNOLOGY AS A TOP 3 INITIATIVE

Cybersecurity Virtualization Cloud Services

Mobility Data Center Operations

Collaboration Software-Defined Networking

Digital Business Systems Development

45% 45% 43%35%

27%

16% 15% 12%

IoT

12%

Figure 4. Top Technology Initiatives of Responding Organizations

Base size 200

For more information on how you can get started with Cisco Cloud certification, visit cisco.com/go/cloudcerts.

Executive Summary

IT Manager Survey


Technology Initiatives > Development Priorities

Training Practices




https://learningnetwork.cisco.com/community/certifications/ccna-cloud?utm_campaign=PROMO-Cloud-LG&utm_source=IT-Report&utm_medium=report-link



IT STAFF DEVELOPMENT PRIORITIES: WHERE ARE THE CRITICAL NEEDS?

In today’s digital business world, where every business initiative is also a technology initiative, IT staff are not only required to move forward in lockstep with technology advancements, but also business practice and process improvements.

Top technology initiatives bring needed skills into focus for both IT managers and IT staff. Security, cloud, big data, mobility, and IoT are strongly trending technology investment areas. Closely related to these areas are key skills such as application development, network design, systems/services integration, data center operations, and enterprise architecture. (See Figure 5.)

What is interesting is the wide spread of target areas. IT managers are not focused on just a few technology skills, but a broad spectrum. Here, the IT manager is likely recognizing the need for teams of diverse staff members to deliver key technology projects. All these target areas represent opportunity for the worker with the right skills.

And as with the technology initiatives highlighted above, skill targets are also moving targets. For example, while IoT initiatives and skills may be focused in select leading industries today (for example, manufacturing and utilities), broader adoption of increasingly complex IoT systems across even more industries (for example, healthcare, retail, and transportation) will heighten the need for skills relating to IoT, including wireless networking, data analytics, and cybersecurity, to name just a few.

Base size 200

TOP AREAS TARGETED FOR IT DEVELOPMENT AND HIRING

Project Management

Security

Cloud

Virtualization

Big Data and Analytics

Application Development

53%43%

50%48%

44%37%

39%42%

31%31%

28%34%

Enterprise Architecture

Data Center Operations

Core Networking

28%26%

26%27%

Network Design and Optimization

26%27%

Mobility23%34%

Collaboration

21%25%

16%17%

Internet of Things14%13%

Software-Defined Networking

11%13%

Digital Business Analysis

10%13%

Not targeting a specific area

6%6%

Existing Employees

New Hires

Figure 5.


Executive Summary

IT Manager Survey


Technology Initiatives Development Priorities >

Training Practices







IT STAFF DEVELOPMENT PRIORITIES: WHERE ARE THE CRITICAL NEEDS?

On the business side, skills required extend well beyond IT project management. Here, you see the coming together of business and technology as the IT staff is drawn into analyzing and directing business processes, risk, customer experiences, regulations, vendor agreements, and digital marketing efforts. (See Figure 6.)

The digital business environment is indeed a brave new world for the IT staff and IT management—with a lot to learn and do differently, and aggressively.

Project Management

Operations– Business Process Improvement

Risk Management

Customer Experience Management

Regulatory Compliance

IT Contract Negotiation & Administration

Digital Business Analysis & Transformation

Digital Marketing/ Social Media Management

52%

38% 34% 31% 28%23% 19%

14%

Financial Management

13%

Vertical Industry Specialization

Supply Chain Management

None

10% 9% 5%

TOP BUSINESS SKILLS TARGETS FOR IT STAFF DEVELOPMENT

Driven by Healthcare

(63%) Driven by Banking (58%)

Driven by Manufacturing

(25%)

Figure 6.

Base size 200

Executive Summary

IT Manager Survey


Technology Initiatives Development Priorities >

Training Practices






IT STAFF TRAINING PRACTICES: FINDING THE FUNDS, FINDING THE TIME

Faced with skill shortages and employee retention and hiring challenges, most organizations are providing financial support for staff wishing to take technical and business training and earn industry certifications. (See Figure 7.) This is increasingly seen as having a positive impact for both the individual and the organization. Staff see this as an investment in their development and, as a result, view present or potential employers positively. For the organization, funding training and certification drives not only better staff performance, but also improved staff engagement and retention. (See Figure 10 in “Value of Certifications.”)

Employer pays 100%

Employee pays 100%

Employer and employee share cost

72%

9%

18%

Other/Don’t know2%Base size 200

WHO PAYS FOR TECHNICAL CERTIFICATION

Employer pays 100%

Employee pays 100%

Employer and employee share cost

65%

13%

19%

Other/Don’t know4%

WHO PAYS FOR TECHNICAL TRAINING

Base size 200

Figure 7. Funding for Training and Certification Percentages in these graphs do not total 100 percent because of rounding.

Executive Summary

IT Manager Survey



Training Practices >






IT STAFF TRAINING PRACTICES: FINDING THE FUNDS, FINDING THE TIME

In addition to funding, many organizations also offer rewards and recognition for employees earning an industry certification. The following results stand out:

Of course, in spite of funding and rewards for training and certification, staff and their managers must make the time for employees to develop skills. Here, alternative methods for learning and development provide more opportunity for busy workers to train and prepare to certify. Self-paced online options have risen to be the top preference for IT managers wishing to have their staff take formal training. (See Figure 9.)

Staff development practices are indeed changing. Here, both business and IT management have recognized that technology fulfills its promise only when applied by expert talent. Investment in the right areas and types of training and validation via formal certifications serves to build out this much-needed technology talent.

47% 47% 40% 34% 9%

Offer social recognition

Offer salary increase

Offer employee rating increase

Offer one- time bonus

Offer increased benefits or perks

1 Self-paced online web-based interactions

2 Instructor-led in-person classroom

3 Instructor-led virtual classroom

4 Self-study using printed materials

5 Subscription just-in-time training

TRAINING PREFERENCES FOR IT STAFF

Figure 9.

Figure 8. Rewards Offered by Organizations for Certification

Executive Summary

IT Manager Survey



Training Practices >






VALUE OF CERTIFICATIONS: IMPACT AND IMPORTANCE

As Figures 3 and 7 suggest, most IT managers indicate that their organization is “all in” with respect to having their IT staff earn formal industry certifications. Why push “all in” on this front? After all, the argument could easily be made that training benefits the organization while certification benefits the employee, easing movement to another job with another organization.

Well, it would seem that IT managers believe the positive impact of a certified workforce outweighs the risk of having certified staff leave the organization. Here, our survey respondents are siding with U.S. industrialist Henry Ford when he stated, “The only thing worse than training your employees and having them leave is not training them and having them stay.”

Executive Summary

IT Manager Survey



Training Practices

Value of Certifications >





VALUE OF CERTIFICATIONS: IMPACT AND IMPORTANCE

IT is fighting to prove itself worthy of taking the lead in digital business initiatives. Lines of business are already exceeding IT organizations in technology spending. If IT is to assert itself as the technology leader within companies, service quality, cost efficiency, and timely and accurate project delivery must be top priorities. IT managers seem to indicate that certified staff is a prime determinant of success across these critical IT fronts. In essence, high-quality staff drives high-quality services. (See Figure 10.)

And to reiterate a previous point, full commitment to staff development—as evidenced by staff certification—reflects positively on any organization, leading to higher engagement and retention rates on the part of employees. And studies have shown higher employee engagement and retention rates drive improved business outcomes across many fronts, including growth, profitability, and quality.

THE POSITIVE IMPACT OF INDUSTRY CERTIFICATION

Improve IT service quality

72%63%

Improve operational efficiency

48%41%

Asked for Existing Employees Only

Boost employee engagement and retention

46%N/A

Assure timely, successful IT project completion

43%35%

Increase staff flexibility in multiple areas

43%43%

Strengthen information and infrastructure security

42%33%

Accelerate use and return on new technology

36%37%

Use for screening when hiring

N/A40%

Asked for New Hires Only

Avoid problems and solve them faster

33%29%

Increase client satisfaction

28%25%

Meet regulations for certified employees

26%26%

I don’t perceive any benefits

2%3%

Existing Employees

New Hires

Figure 10.

Base size 200

Executive Summary

IT Manager Survey



Training Practices

Value of Certifications >




16

TOP TARGETS FOR STAFF CERTIFICATION: A FOCUS ON CISCO

While this survey was focused on exposing views into all IT industry training and certification programs, respondents were asked to indicate their needs relating to staff and skills associated with Cisco certifications. The results show that IT manager interest in Cisco certified skills runs deeply into the network and broadly across the IT infrastructure. (See Figure 11.)

As these survey results have suggested, skill needs across IT organizations are diverse. Certainly, networking and related staff skills are front and center in this connected world. As a result, Cisco networking certifications show strong demand from survey respondents.

But learning and development do not stop there for Cisco customers and their managers. The world is moving fast, and IT staffs need to stay ahead on so many fronts. Look at all the top technology initiatives outlined in Figure 4. While such key thrusts as cybersecurity, cloud, and mobility all leverage networking technology—and networking experts—for success, there is great opportunity for IT staff matching their own skills to these top technology initiatives.

This is exactly why Cisco expanded beyond network career certifications years ago. Cisco’s Security certification was developed first. Cisco’s Data Center, Network Programmability, Business Transformation, and IoT Specialist certifications followed. And in May 2015, Cisco’s Cloud certification portfolio was announced. As the industry moves, so too must Cisco training and certification programs. And so, too, must the learner.

Security

Network Programmability

Data Center

Operating System Software

53%32%

30%

29%IoT20%

CCENT17%

CCNA49%

CCNP52%

CCIE28%

CCAr13%

CAREER CERTIFICATION

SPECIALIST CERTIFICATION

Figure 11. Top Targets for Organizations Focused on Cisco Certifications

Base size 142


August 2015 | © 2015 Cisco Systems, Inc. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to this URL: www.cisco.com/go/trademarks. Third party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (1110R) DEC15CS4835

Executive Summary

IT Manager Survey



Training Practices


Targets for Certification >



Technology and Talent Development -...

Documents

Transcript of Technology and Talent Development -...