CORNERSTONE ONDEMAND Integrated Talent Management System Overview 1601 Cloverfield Boulevard, Sixth Floor, Santa Monica, CA 90404 Tel: 888-365-CSOD Tel: +1 310.752.0200 Fax: +1 310.752.0199 Web: www.cornerstoneondemand.com Table of Contents EXECUTIVE SUMMARY/ PRODUCT SUITE OVERVIEW ........................................................................................................... 2 THE CORNERSTONE APPROACH ....................................................................................................................................................... 3 FIVE PLATFORMS, ONE INTEGRATED SYSTEM ..................................................................................................................................... 4 THE POWER OF REAL MULTI-TENANT SOFTWARE-AS-A-SERVICE (SAAS) ................................................................................................. 5 CORNERSTONE LEARNING ................................................................................................................................................... 7 LEARNING MANAGEMENT SYSTEM ................................................................................................................................................... 7 CUSTOMIZED LEARNING PORTALS .................................................................................................................................................... 8 E-LEARNING .............................................................................................................................................................................. 11 INSTRUCTOR-LED TRAINING ADMINISTRATION.................................................................................................................................. 12 VIRTUAL CLASSROOMS................................................................................................................................................................. 16 LEARNING CONTENT MANAGEMENT (LCMS) .................................................................................................................................. 18 COMPLIANCE & CERTIFICATIONS .................................................................................................................................................... 20 CORNERSTONE CONNECT .................................................................................................................................................. 27 ENTERPRISE SOCIAL NETWORKING & WORKPLACE COMMUNITIES........................................................................................................ 27 YOUR EMPLOYEES | INTERNAL COMMUNITIES ............................................................................................................................... 30 YOUR CUSTOMERS & PARTNERS | EXTERNAL COMMUNITIES ........................................................................................................... 31 CORNERSTONE PERFORMANCE™ ...................................................................................................................................... 32 EMPLOYEE PERFORMANCE MANAGEMENT ...................................................................................................................................... 32 COMPETENCY ASSESSMENTS ......................................................................................................................................................... 32 DEVELOPMENT PLANS ................................................................................................................................................................. 33 GOAL SETTING ........................................................................................................................................................................... 34 PERFORMANCE REVIEWS .............................................................................................................................................................. 35 OBSERVATION CHECKLIST ............................................................................................................................................................. 36 COMPENSATION / PAY-FOR-PERFORMANCE..................................................................................................................................... 37 CORNERSTONE SUCCESSION & CAREER MANAGEMENT .................................................................................................... 40 CAREER AND SUCCESSION MANAGEMENT ....................................................................................................................................... 40 SUCCESSION PLANNING................................................................................................................................................................ 40 TALENT POOLS ........................................................................................................................................................................... 42 ORGANIZATIONAL CHARTING ........................................................................................................................................................ 43 INTERNAL RECRUITING ................................................................................................................................................................. 44 CAREER MANAGEMENT ............................................................................................................................................................... 45 CORNERSTONE EXTENDED ENTERPRISE ............................................................................................................................. 48 TWO SOLUTIONS ........................................................................................................................................................................ 49 THE EXTENDED ENTERPRISE PRODUCT ............................................................................................................................................ 49 CORNERSTONE ANALYTICS ................................................................................................................................................ 51 REPORTING, DATA MANAGEMENT, ANALYTICS, AND DASHBOARDS ...................................................................................................... 51 ANALYTICS................................................................................................................................................................................. 52 DASHBOARDS............................................................................................................................................................................. 53 SELECT CROSS-PLATFORM TOOLS ...................................................................................................................................... 54 MYTEAM FOR MANAGERS............................................................................................................................................................ 54 PEOPLE FINDER .......................................................................................................................................................................... 55 COMPANY QUALIFICATIONS .............................................................................................................................................. 57 TECHNICAL SPECIFICATIONS .............................................................................................................................................. 60 STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 1 Executive Summary/ Product Suite Overview HR and talent management practitioners are faced today with daunting challenges. Workforces are changing fast – hierarchies are flatter, career paths are no longer linear, workers are more geographically dispersed, and generational differences are as sharp as ever. Ensuring that you have the right people with the right skills in the right roles and at the right time has a serious impact on your organization’s ability to execute and grow. Leading organizations have shown that “Cornerstone appealed to us because of the comprehensive Cornerstone’s 100% Software-as-a-Service (SaaS) integrated approach to functionality and Software-as-alearning, performance and talent management make a difference that goes to Service delivery of its talent the bottom line. management suite. From a Designed by HR executives from the world's leading companies, the Cornerstone OnDemand talent management suite is a fully integrated, selfconfigurable talent management system that bridges the gap between employee development and performance to enable substantial improvement in organizational capability. Cornerstone is the only major talent management software suite to be built organically as a whole – one user interface, one support model, one data model, one system. STRICTLY CONFIDENTIAL business perspective, Cornerstone’s SaaS-based suite offers a low cost of ownership, and it doesn’t require additional hardware investments or IT support.” - Allison Kerska, Director of Global Learning for Kelly Services ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 2 The Cornerstone Approach Industry analyst Bersin & Associates finds that organizations that take an integrated approach to talent management (1) are more capable of retaining high performers, (2) realize higher revenue per employee and (3) are generally better at responding to economic change. Cornerstone OnDemand helps organizations of all sizes and in all industries to increase employee engagement, productivity, retention, and alignment with organizational goals. It’s that simple. The Cornerstone approach is based on three concepts: 1. Integrated approach to talent management drives better bottom-line results for your organization. This means having all the components of talent management under the same roof, presented in the same user interface, reportable from the same reporting tools, and administered in a highly flexible way. 2. Learning drives performance at every turn in Cornerstone because business alignment alone and performance appraisal in isolation is not good enough. Training and development make performance appraisal actionable, succession planning meaningful and career pathing functional. 3. Multi-tenant Software-as-a-Service (SaaS) is the best way to deliver value to your organization (and it’s the only way we do business). SaaS is fast, cost-effective, secure, and meets the needs of some of the world’s largest global enterprises. Don’t be fooled by hosted or hybrid approaches – there’s only one true multi-tenant SaaS model. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 3 Five Platforms, One Integrated System Cornerstone’s integrated talent management suite covers the employee lifecycle from onboarding through learning management and performance measurement to succession planning (and even outside to your customers and partners). Start with the full suite or use any of the five platforms separately. Choose a talent management system that is built organically by the same company and can grow with your needs. Learning Management System (LMS) & Compliance Management E-learning delivery ILT administration Virtual classrooms LCMS / content management Compliance and certifications Employee Collaboration, Social Learning and Communities Rich user profiles Community building Social learning tools Blogs, wikis, status updates Discussions, RSS feeds Succession Planning & Career Management Succession plans 9-box plans (or othermetric grids) Talent pools Career pathing Organization charts Internal recruiting Customer training portals Training-for-profit / e-commerce Partner enablement portals Training and certifications Self-registration tools STRICTLY CONFIDENTIAL Increase visibility into employee performance and productivity Make reviews more meaningful Grow a competency-driven culture Align day-to-day tasks with organizational objectives Link performance and pay Benefits to Your Business: Empowering the Extended Enterprise Employees work smarter and faster Enable connections between people Boost employee performance Better expertise location Drive innovation Benefits to Your Business: Performance reviews Goal management Compensation planning Competency assessments / 360s Observation checklist Development planning Increase productivity Fill skill gaps Link to performance appraisal Lower administration costs Reduce compliance risk Benefits to Your Business: Employee Performance and Compensation Management Benefits to Your Business: Identify/track high potential employees Improve employee retention Grow your bench strength Plan for long-term organizational health Chart organizational scenarios Benefits to Your Business Increase customer and partner product knowledge Cut customer care costs and drive loyalty Increase channel effectiveness Effectively certify reseller networks ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 4 The Power of Real Multi-Tenant Software-as-a-Service (SaaS) WHAT IS SOFTWARE-AS-A-SERVICE (SAAS)? On-demand software (most commonly called Software-as-a-Service or just SaaS) is a software delivery model in which applications are hosted and managed by a vendor and made available to customers over the Internet. Thanks to the rapid development of these Web-based services, savvy organizations are pushing aside traditional, cumbersome legacy applications in order to realize rapid, tangible business benefits. Software-as-a-Service has proven repeatedly to be a successful and lasting solution for organizations of all sizes and types – from the largest multinationals, to small businesses and non-profits. BUYER BEWARE: MULTI-TENANCY MATTERS True Software-as-a-Service is a complete business model - not just a delivery option or a checkbox on an RFP. Beware of vendors who offer to be the best of all worlds (installed, hosted and SaaS). In the true multi-tenant SaaS model, there is one version of a centrally hosted software service that is shared by all clients. Highly specific configurations are maintained by the vendor for each client, so that no two implementations of a SaaS product might look exactly alike, even though it’s all on the same system behind the scenes. But only one aspect of real SaaS is the technology. This inherently versionless nature of multi-tenant SaaS drives a completely different relationship between the software vendor and the client. True on-demand software changes, for the better, the way products are marketed, delivered and serviced across the board. Beware of the software vendor who tells you that you can have it both ways – installed and SaaS. This approach of servicing multiple delivery models misses the point of the real multi-tenant SaaS model and usually means that the vendor is supporting multiple versions and old product lines. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 5 THE BENEFITS OF REAL, MULTI-TENANT SAAS A PARTNERSHIP The SaaS subscription licensing model and versionless nature of the product ensure world-class customer care every day. In other words, SaaS vendors don’t sell you software and then disappear until upgrade time (or pass the costs of supporting multiple legacy products on to you). EASY CONFIGURATION Allows for configuration, not costly customization. Make sure you ask your vendor how changes are made in the system and how the system can be configured to match your workflows. MORE CONTROL IN YOUR HANDS SaaS puts more tools in the hands of the client. Don’t wait for the vendor to make changes or tweak important configurations. RAPID DEPLOYMENT Implementation timeframes measured in days and weeks – not months or years. LOW MAINTENANCE / LOW IT NEEDS Versionless software means you are always on the most current version with the latest innovations available to you. No messy upgrades, no abandoned product lines. LIMITLESS SCALABILITY Modern SaaS infrastructure scales rapidly with the vendor adding relatively inexpensive storage. Nothing for the client to buy or maintain in terms of networks or hardware. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 6 Cornerstone Learning Learning Management System Cornerstone OnDemand incorporates one of the most comprehensive and powerful learning management systems available today. Offered as separate e-learning, instructor-led training, learning content and compliance management modules or as a complete system, Cornerstone's learning management tools provide administration, reporting, and delivery functionality to meet the needs of even the most advanced enterprise. Cornerstone Learning: Features and Benefits On-Demand Low up-front cost; fast deployment; controlled roll-out 30,000 pre-integrated training courses Rapid migration to online learning, single-vendor management, volume pricing Subscription pricing Pay-as-you-go Simple, easy-to-use interface Faster roll-out; increased user acceptance Virtual classroom Reduced training costs ILT administration Fully blended training, lower cost LCMS Easy to use content authoring and publishing Compliance automation Increased compliance with training regulations, lower risk Cornerstone Learning integrates seamlessly with the other modules of the Cornerstone Integrated Talent Management suite – all developed in-house. Cornerstone supports a wide range of learning activities and provides real-time tracking through the user’s personalized learning transcript. Out-of-the-box training types include: E-learning classes Instructor-led training (ILT) sessions; Virtual classroom training; Posted documents, white papers, and online resources; Externally completed training; Custom tests and assessments; and Training curricula to support blended learning initiatives. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 7 Customized Learning Portals Once logged in, the user is presented with a personalized learning portal, which includes a customized transcript or learning history. The portal is personalized based on the user’s assigned division, position, and location and can be customized to include unique navigation, logos, colors, images and more. Cornerstone supports a very high degree of customization without any need for custom programming or special interfaces. The user’s view within Cornerstone can also be customized for different roles. System rights can be set so that a Sales Representative is presented with a different view and set of functional choices than a Finance Specialist. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 8 BROWSING AND SEARCHING FOR TRAINING Among other things, Cornerstone Learning allows the user to: Browse or search for appropriate training (any type of learning); Request approval to take training; Register for training; View assigned training and assessments from managers; and Track personal learning histories and the status of training requests. Employees only have access to training deemed appropriate by administrators and managers. All updates to content and events within the system are conveyed to the appropriate users in real-time. PERSONALIZED LEARNING TRANSCRIPT Cornerstone’s user transcript automatically updates training status based upon the action taken (i.e. user registers for training, enrolls in training, completes training). TRAINING EVALUATIONS Cornerstone supports the first three levels of the Kirkpatrick Evaluation Model. The evaluation tools include separate evaluations to measure the participant’s reaction, amount of knowledge gained, and on-the-job knowledge transfer. The second and third level evaluations are course-specific and have the option to be taken before the training is received in order to establish a basis for comparison. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 9 EVENTS CALENDAR Training schedules can be viewed graphically in the user’s individual Events Calendar. Events and sessions are listed here and are color coded based on the enrollment status and seat availability. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 10 E-Learning Cornerstone serves as an aggregator of e-learning content. Over the past decade, we have developed relationships with all of the top providers of e-learning content across all subject areas and skill levels. Over 30,000 online training titles are pre-integrated into Cornerstone and available to clients immediately. Through Cornerstone’s e-learning service, the client can realize cost savings and administrative benefits, through: A “one-stop shop” for thousands of best-in-class online courses; Pay-as-you-go access; and Centralized billing and vendor relations. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 11 E-LEARNING CATALOG The catalog contains all types of online learning, including 1-8 hour corporate training courses and 5-20 minute learning objects for extensive or just-in-time training. The client has the option to globally include or exclude any online content providers at the click of a button. Cornerstone provides employees with the ability to take a single course or a series of courses from a content provider without the necessity of purchasing entire content libraries. Finally, due to Cornerstone’s system architecture, the client can seamlessly integrate any existing proprietary training content. VENDOR MANAGEMENT Cornerstone also provides complete vendor management services with respect to e-learning partners. The company assists organizations in the selection and pricing of e-learning content. We are able to negotiate best-pricing from our content partners. Additionally, our subscription-based payment structure allows you the flexibility to pay-as-you-go or to order training in advance at volume-based discounted prices. All content is fully integrated on the system, allowing for seamless tracking and reporting across multiple providers. Instructor-Led Training Administration Cornerstone has created the most comprehensive session management and integrated facilities management system (with complete conflict detection capabilities) in the industry. As with all of the Cornerstone modules, the ILT Administration component can be activated by the client for any or all of its regions, divisions, or working groups. Cornerstone Instructor-Led Training enables administrators to schedule instructor-led training events, and sessions. Administrators can control the assignment and registration of training based on division, level, or other organizational unit. Users view only relevant events, and have the ability to print personalized monthly calendars. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 12 The system has the ability to handle any type of training event as well as non-training related sessions and company events. Among other features, Cornerstone Instructor-Led Training allows trainers and administrators to track and limit registration; track attendance; and send email notifications. Additional features include interest tracking, waitlist management, and complete facilities management. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 13 CANCELLATIONS AND WITHDRAWALS Cornerstone supports automated training cancellation and withdrawal. Each of these settings is configurable and allows administrators to set withdrawal and cancellation restrictions. Automatic email notifications can be sent when a course is cancelled, a session schedule has changed, or when an employee withdraws from a training course. Withdrawal limitations can also be set by the administrator or instructor to penalize students who withdraw after a certain date. FACILITIES AND RESOURCES MANAGEMENT Supplementing the ILT Administration module is an integrated facilities management system. Employees granted rights to post events have the ability to request facilities and associated equipment during the scheduling of a new event. An office manager for each location can be automatically notified, via email, of facility and equipment requests for their location. Cornerstone enables instructors and administrators to manage resources and equipment for geographic locations, buildings, and rooms. This feature tracks reusable and non-reusable resources such as computer assets, classroom and lab PC configurations and much more. Cornerstone’s automated conflict detection capabilities identify conflicts at the time of scheduling based on the location, event time and day, enabling instructors to immediately remedy scheduling issues. INSTRUCTOR AND VENDOR MANAGEMENT Cornerstone provides instructors with a class and roster management system that enables administrators and instructors to view instructor requests for various training sessions, manage training rosters, manage instructor and vendor profiles, and more. Every Instructor is provided with a personal training calendar with all training sessions listed. Training sessions are color coded to indicate Tentative, Confirmed and Completed sessions, allowing instructors an “at-a-glance” view of their session schedule. Provided in monthly, weekly and daily format, instructors can filter their session schedule easily by simply selecting a month and a year using drop-down menus. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 14 Further, Instructors can easily manage session rosters by individual, or for an entire session. Instructors can mark an entire session complete, including all session attendees in two clicks, which automatically updates the session status within each attendee’s personal learning transcript. By eliminating the administrative chore of managing individual attendees within a roster, instructors are free to focus on creating and delivering training content and training sessions. Instructors can access course rosters and generate printable rosters and sign-in sheets for each training course. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 15 Virtual Classrooms Realizing that hosted conferencing solutions and online communications provide all the benefits of interactive personalized training without the high cost of travel and associated expenses, Cornerstone has long supplemented its LMS with virtual classroom tools. Live e-Learning combines and maximizes the benefits of both instructor-led training and e-Learning. Host local, regional, or international seminars online to reach a broader audience, and reduce associated costs. Through Cornerstone's integration with best-of-breed virtual classroom applications, trainers can set up online events that can be made available to a specific group of users based on division, position, and/or location. This feature can be used to hold real-time training sessions or record training sessions and play them for your geographically dispersed workforce at a later date. Covering the spectrum of the industry standards, Cornerstone Learning provides seamless, turnkey integration with: These integrations are not superficial. Users can launch directly into a live virtual classroom session from the LMS. This can be from a transcript, a calendar view, an email generated by the LMS, from the customizable Welcome Page, or other locations. As with all components of the Cornerstone Learning platform, all virtual classroom sessions are tracked by the system for enterprise-wide reporting. As with all elements of Cornerstone’s Software-as-a-Service offering, virtual classroom sessions are accessed online, on-demand, and at anytime. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 16 TRAINING DEMAND FORECASTING Training Demand Forecasting allows managers and other users to submit forecast training needs and requests for learning content within the context of a plan template defined by administrators. Managers in the field can request specific training titles from your catalog, training around a certain subject matter, or even training from external vendors or other sources. Collecting this type of data from the business units and managers on the line allows HR administrators to better schedule training hours, subject matter focus, instructor time, and precious budget. Training plans from the field are consolidated automatically and can be reported on by estimated hours, number of employees, subject area, cost, and more. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 17 Learning Content Management (LCMS) Cornerstone offers a Learning Content Management System (LCMS) to author, publish, and deploy media-rich content. With pre-loaded templates and authoring, test, assessment, and collaboration tools, clients can design customized, SCORM compliant courses without prior programming knowledge. Cornerstone Learning’s Test Engine allows clients to create knowledge tests and incorporate them into the curriculum, or use them as pre- or post-training assessments. The system will automatically grade questions, making results instantly available for global and individual reporting. STRICTLY CONFIDENTIAL Cornerstone Suite Cornerstone Content is an optional component that will interest companies wishing to develop their own proprietary online training content, tests, surveys, and other materials. ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 18 TEST ENGINE Cornerstone’s testing engine provides administrators with the ability to develop, assign, and track rigorous and interactive tests and assessments in-house. Pre and post-course tests, prerequisite assessments and certification programs can be developed using the testing engine. As with all functionality within Cornerstone, test availability can be set based on individual user, position, division or other Organizational Unit type. Proctoring Options. The Cornerstone test engine allows administrators to set a number of automated proctoring criteria such as: Time limits; Passing scores; Attempts allowed; Record first passing score; Record highest score across multiple tries; Lockout period; Early exit allowed/prohibited; Random question selection; and Assessment description and instructions. Tests can be geared towards specific subjects and can be used for a variety of purposes. The system allows custom tests that can be created for a number of purposes including test out, product tests and for other proprietary assessment needs. Question Bank. The Question Bank can be used to create, store and repurpose custom test questions. The question bank is organized by category and provides administrators the ability to view the categories; view question item analysis; and filter questions by ID, Question, Question Type, Category, Active status, who question was Created By, and Added By. As a test proctoring option, questions can be randomized on a test, pulling a designated percentage of questions from any given category. Finally, question item analyses can be run on questions in the question bank repository. This report provides test administrators with an enhanced understanding of level of difficultly vs. poorly worded questions, as well as other helpful analysis based upon a question’s statistical criteria (i.e. correct, incorrect, number of respondents, etc). STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 19 Compliance & Certifications COMPLIANCE AND CERTIFICATION MANAGEMENT SYSTEM Today's corporate enterprise falls under increasingly strict licensing and certification requirements. Cornerstone Compliance provides on-demand compliance management tools to greatly reduce the administrative overhead associated with meeting these demands. Companies outlay extraordinary amounts of time and capital to conform to a range of regulatory requirements, including FDA, NASD, Sarbanes-Oxley (SOX), HIPAA, JCAHO, Basel II, and many others. Additional regulatory mandates can come from internal organizational mandates or regulated HR policies. Cornerstone Compliance automates the administration and management of these processes and provides clear, real-time visibility into compliance activities to allow progressive organizations to transform an administrative headache into a valuable area for cost savings and business improvement, while all the time minimizing risk. Specifically, the Cornerstone platform addresses the following compliance areas: One-Time Requirements External example: anti-money laundering Internal examples: HR policies or IT security training Ongoing, Multi-Year Requirements Any type of renewal based certification, license, permit, etc. – including CPA, CFP, CLE learning credits. Audits Automated survey tools for internal employee audits and direct, automated submission of forms to regulatory agencies like the NASD Enterprise Reporting Comprehensive branch, divisional, and organizational roll-up reporting for unparalleled visibility into compliance activities. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 20 The Cornerstone Compliance platform delivers immediate results to companies operating in regulated environments. The impact of deploying Cornerstone goes straight to the bottom line as the system: Reduces costs; and Increases compliance. Because the Cornerstone platform is delivered via the on-demand model, implementation of the system is straightforward, rapid, and cost-effective. Cornerstone Reduces Costs. By deploying Cornerstone companies can expect to see rapid return on investment through cost reductions across three primary areas: Lower cost of delivery by moving compliance training online, cutting costs associated with traditional training and compliance programs, like instructors, lodging, and travel. Lower opportunity costs through more efficient, more targeted, more effective training and reporting. Lower administrative costs by automating key (formerly time- and labor-intensive) processes and enabling reduction of personnel headcount (typically a population of 20,000 employees requires only a single full-time Cornerstone administrator). Cornerstone Increases Compliance. By deploying Cornerstone companies can increase compliance and minimize risk across all types of regulated and internal programs by increasing visibility at all levels of the organization: Employees have better visibility of their own compliance responsibilities through automated e-mail reminders and personalized online portals with real-time detailed training plans. Line managers have better visibility into compliance status of their subordinates through detailed reporting accessible anytime, automated e-mail reminders, and the ability to assign and track specific training. Business unit heads and in-country compliance staff have better visibility into compliance status for lines of business, divisions, or branches through comprehensive reports, dashboards, and the ability to run internal audits. Executives have increased visibility through centralized, roll-up reporting across large, decentralized organizations. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 21 COMPLIANCE WITH ONE-TIME REQUIREMENTS Cornerstone delivers tools to support compliance with one-time compliance requirements, whether driven by external regulation or internal mandates. INDUSTRY REGULATION The platform provides easy-to-use features for compliance with industry regulation. CORNERSTONE COMPLIANCE allows administrators to assign training (online, instructor-led, or otherwise) to any group of employees and provide real-time tracking of course completion status. The system supports proxy or batch enrollment by any organizational unit – division, business unit, physical location, job position, pay grade, etc. The platform comes pre-loaded with hundreds of best-of-breed e-learning titles from leading providers like WeComply, ELT, Zoologic, and FT Knowledge for general HR or industry-specific compliance training. E-learning classes are launched seamlessly from employees’ personalized portals and completion can be reported on across the entire organization or on a decentralized basis. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 22 INTERNAL OR NON-INDUSTRY COMPLIANCE The CORNERSTONE COMPLIANCE system can also track any type of non-industry specific compliance training, including the types of activities often mandated by internal company initiatives, including: Sarbanes-Oxley (SOX) defense; Human resources directives, including state-regulated workplace harassment training (e.g. California’s AB 1825); Human resources administration, including acknowledgements of employee handbooks and e-mail communications policies; and IT training compliance, including disaster recovery and security. Cornerstone delivers training or documents to specifically prescribed groups of employees and automatically tracks completion of training or receipt of materials. As with all aspects of the CORNERSTONE COMPLIANCE system, administrators and managers can run reports on completion rates, no-shows, and much more – all online, securely, and at any time. Cornerstone’s best-of-breed content library includes legally defensible workplace harassment and diversity training. The platform also includes the ability to dynamically generate acknowledgement forms at the completion of courseware, delivery of a company document, or other compliance training. Employees are required to acknowledge receipt or completion and the Cornerstone platform tracks the data for reporting purposes. COMPLIANCE WITH ONGOING, MULTI-YEAR REQUIREMENTS CORNERSTONE COMPLIANCE delivers powerful tools to track all types of recurring, renewal-based, multi-year designations. This includes setup and deployment of any type of designation; ongoing tracking of compliance status; and production of complete reports. The application supports all types of continuing education (CE) programs, acknowledging that CE credits can vary from state to state and from year to year – no one solution can fit all needs. Because of this, the CORNERSTONE COMPLIANCE system is not rigid software, but instead is a toolkit to allow different organizations operating in different regulatory environments to built highly customizable designations to track all types of certifications, licenses, accreditations, and permits. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 23 Direct applications include, but are not limited to the following environments: Securities Industry CE CLE CME CPA CFP Gramm-Leach Bliley Act (GLBA) HIPAA Sarbanes-Oxley (SOX) 21 CFR Part 11 CORNERSTONE COMPLIANCE allows clients to create compliance programs that match externally controlled requirements, such as CPA, CFP, CLE learning credits, with existing training content (whether classroom-based, e-learning, or otherwise). Importantly, the application can track “non-traditional” CE credits (attending meetings, videos, etc.) and can adapt to situations in which credit hours within a single training opportunity based on modality (taking the class versus teaching it, for example). Requirements can be structured to allow users to select elective training from predefined lists in different compliance areas. System flexibility frees employees to choose their compliance training based on accessibility and interest, increasing likelihood of timely training completion. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 24 IMPLEMENTING AND AUTOMATING COMPLIANCE TRAINING PLANS Cornerstone allows compliance administrators to perform the following critical duties: Broadcast an annual global compliance message to relevant employees; Develop and post a schedule of applicable compliance training (targeted at specific sub-groups or even individuals); Announce additional courses for specific business lines or job positions on an as-needed basis; Run compliance status reports ad hoc or on a scheduled basis; Set up status reports for direct and automatic delivery to business heads, designates, chief officers, branch offices, etc.; Produce quarterly reports or status e-mails. Additionally, the system allows managers and employees to interact with the application for best effect: Managers have the ability to directly assign compliance training that is appropriate for subordinates; Business units or branch offices can designate specific compliance contacts who are granted access to applicable features of the CORNERSTONE COMPLIANCE platform; and Line employees can check their CE status at anytime by logging into personalized portals. DELIVERING E-LEARNING CONTENT Supplementing the administrative and reporting capabilities of Cornerstone is the company’s broad library of third-party e-learning content. Over the past decade, Cornerstone has developed relationships with all of the top providers of e-learning content across all subject areas and skill levels. Over 10,000 online training titles are pre-integrated into CORNERSTONE COMPLIANCE and available to clients immediately. Cornerstone works with specific, market-tested vendors to provide online training content that is certified for regulated environments. Content partners include: STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 25 ENTERPRISE REPORTING Once compliance requirements are set, Cornerstone tracks status and progress against those requirements, both at the individual level and across the aggregated user population. The system also tracks completion and expiration of certifications, licenses, permits, accreditations, and more. Administrators can always see, at a glance, organizational compliance status (or by division, location, business unit, etc.) and where there may be risk. Automated, scheduled reminders can be sent to users and managers to inform them of open compliance requirements, increasing completion ratios for training while minimizing administrative pampering. E-mail reminders can be triggered for any highly specific reason. Authorized users can access a suite of compliance administration tools which include the ability to: View employee certification worksheets; Mark credits complete; and Grant extensions, as required. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 26 Cornerstone Connect Enterprise Social Networking & Workplace Communities Cornerstone Connect brings together the best of Enterprise 2.0 technologies with the latest in social networking to enable effective workplace collaboration, improve employee performance, and drive innovation from customer and partner communities. By encouraging collaboration and making it easy to join communities of practice, Cornerstone Connect fosters social (informal) learning, organizational memory, professional networking, and better communication across your employee base and the extended enterprise. Key Challenges facing Organizations Breaking down barriers that stifle collaboration and innovation Identifying and capitalizing on latent professional networks Locating company expertise Building a corporate memory Retaining Generation Y (Millenials) Engaging alumni and retirees Reducing customer support calls and partner training costs Capturing reliable feedback from your customers and partners In a modern workplace characterized by globalization, geographic dispersion of talent, and short information cycles, the importance of knowledge and information can not be overstated. High-performing employees develop effective professional networks and incorporate collaboration into daily routines. Social networking and workplace community technologies give organizations the tools to empower employees to extend their existing capabilities through information sharing, professional networking, informal learning, and ongoing collaboration. STRICTLY CONFIDENTIAL Key Market Drivers: Globalization / workforce dispersion Short information cycles Speed of the knowledge worker Mergers and acquisitions Generational impacts (Millenials) ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 27 COMPLETE ENTERPRISE SOCIAL NETWORKING PLATFORM Cornerstone delivers a complete social networking and workplace communities platform. This includes communities of practice, rich user profiles, expertise location, tag clouds, rating/sharing content, knowledge management, blogs, wikis, podcasts, RSS feeds, and much more. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 28 Organizations use Cornerstone Connect to reach both internal and external audiences. With Cornerstone you can improve employee performance, identify critical internal professional networks, and engage your customers and partners to drive innovation and lower support costs. Cornerstone Connect is part of the Cornerstone OnDemand Integrated Talent Management suite. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 29 Your Employees | Internal Communities Enterprise social networking must move past the buzzwords and the hype and into the realm of real use cases and demonstrable business impact. A collaborative workplace is one in which information flows freely, employees are appropriately networked within the organization, and people know where to turn for the right bit of expertise at the moment they need it. Business social networking tools are also a great way to connect the organization with your alumni network to ensure that valuable experience and information does not walk out the door. For HR organizations, talent management practitioners, marketers, and others concerned with impacting the workforce, Cornerstone Connect delivers real uses cases for internal audiences. SPECIFIC USE CASES Onboarding Connect new hires to the people they need to know to succeed and cut time-toproficiency. Employee performance support It’s not just what you know, but who you know. High-performing employees take it to the next level by developing professional networks that drive performance. Training / informal learning 80% of training dollars are spent on formal learning, but equally 80% of what people actually learn in a job is informal and collaborative. Evolve your LMS strategy to include collaborative learning. Workforce management Identify key nodes in your organization by analyzing your social networks. Better visibility into your informal networks enables bottom-up, socially-driven succession planning (more powerful than typical C-level). Internal recruiting Rich user profiles and active communities of practice make internal recruiting work. Cut back on costly external hiring practices and find new sources of talent at home. Alumni and retiree engagement networks For business development, maintaining a priceless “corporate memory,” and even for recruiting, building an organizational alumni community is a quick way to demonstrate the value of business social networking. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 30 Your Customers & Partners | External Communities Moving past the buzzwords and hype also includes applying enterprise social networking tools to the extended enterprise. Engaging your customers and partners for real business impact. Customer support, marketers, partner enablement, channel groups, and others with a vested in the success of the extended enterprise will benefit from Cornerstone Connect’s direct approach. Engaging in ongoing conversation with customers and partner about products, markets, and innovation is a surefire way to develop lasting relationships that pay dividends to both sides. Develop more effective advocates for your products and services and to increase the effectiveness of channels. SPECIFIC USE CASES Self-service customer support By giving your customers ready access to product and service information, support costs can be controlled. Customers learn from other customers in active communities. Customer engagement Engaged customers are loyal customers. By keeping customers talking about your organization and products in between purchases, you can boost loyalty, retention, and repeat business. Partner/channel training and support By providing ongoing access to the latest information on your products, services, and partner programs, you can maximize the value of partner relationships. Partners, especially those in resale channels, learn directly from your most successful resellers. Product launches / new markets Communities can be used by internal and external audiences to build awareness and product expertise in advance of a new product launch. This is especially vital for channel effectiveness. User innovation / idea harvesting When is comes to product innovation, engage your most vocal champions and most consistent users. Capture the best ideas directly from your customers, partners, and suppliers. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 31 Cornerstone Performance Employee Performance Management Cornerstone's employee performance management (EPM) system provides state-of-the-art tools to direct and measure performance at the individual, departmental and organizational level. Cornerstone Performance: Features and Benefits Cornerstone Suite As with all Cornerstone modules, the Performance tools work seamlessly with Cornerstone's Learning Management System to provide complete nextgeneration tools for employee and enterprise development. Cascading, SMART-based goals Measurable results, greater corporate alignment Development planning Cost effective, targeted employee development Competency management Better workforce development 360-degree, 180-degree, and self assessments More balanced view of competencies Performance reviews More comprehensive view of employee performance Observation Checklist Evaluate performance or skills in the field, on the job Appraisal management with email reminders Increased timeliness of completion Competency Assessments Cornerstone Performance allows clients to easily identify competency and skill gaps within your organization through 360°, 180°, self-assessments and custom-built competency models. The application allows for the creation and management of single- or multi-level competency models, based on any number of categorized items, behaviors, and associated developmental activities. Cornerstone has also integrated leading competency content libraries from Lominger for immediate, off-the-shelf access. Based on an employee’s competency assessment, Cornerstone can dynamically generate an individual development plan. Alternatively, based on assessment scores, the platform can dynamically recommend training experiences to close identified skill gaps or to bolster strengths. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 32 As with all elements of the Cornerstone system, the competency assessment tools are extremely configurable and flexible, allowing organizations to model their precise processes. Additional features include a configurable writing assistant and language filters. Development Plans A core feature of the Cornerstone Performance module is the development plan which allows managers to work with individual employees to develop personalized career development plans. Through this collaboration, employees structure development paths from all types of training available through Cornerstone. Final development plans are subject to managerial approval. Development plans can be directly tied to the competency assessment process, allowing managers to link corporate goals into personal learning plans. Free-form objectives and goals can also be entered and any type of training can be directly linked thereto. Target dates can be established and managerial comments can be attached to any learning plan. Administrators can create development plan templates for organizational units (such as business lines, job positions or locations) as well as individuals. These templates can be used to rapidly administer standard training plans which can then be individualized by managers and subordinates. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 33 Goal Setting Cornerstone’s organizational goal setting is a powerful tool for hierarchically ordering, tracking, and reporting on goals within business units or smaller groups. The goal setting feature allows for higher organizational goal visibility and greater success in meeting goals throughout various business groups. The integrated balanced scorecard methodology allows executives to view the organization's performance from multiple perspectives at the same time. This tool allows users to create cascading SMART goals that include multiple targets and initiatives. With visual overviews of goal progress and statuses, users can easily track their progress and identify areas where they are behind. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 34 Performance Reviews Cornerstone automates the annual and interim review process, integrating performance reviews with employee goals and competency assessment scores, as well as providing managers with the ability to enter in other criteria and comments. Managers can conduct annual, interim and off-cycle performance reviews of subordinates. Because the reviews are integrated with the other aspects of the performance management process, the user is evaluated more objectively and given clear and direct feedback based on specific achievements and performance. Organizations achieve better accountability, and managers minimize the amount of time required to create such an extensive review of an employee’s performance. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 35 Observation Checklist Observation Checklist is an innovative approach to evaluating performance in the field. Designed hand-in-hand with clients in industries like healthcare and manufacturing, Observation Checklist accounts for the fact that, for many companies, employee performance is best monitored on the job. In some situations or industries, however, fulfillment of required competencies cannot be measured on a typical rating scale or as part of an annual review. Use Cornerstone’s innovative Observation Checklist feature to systematically assess and monitor employee skills and performance in the field, while employees are doing their jobs. Cornerstone’s Observation Checklist lets you assign validators or verifiers to assess competence or successful completion of tasks as employees are at work in the field. For example, check off observed clinical skills as nurses are providing care. Or ensure compliance with critical safety procedures as your employees operate on the job in a manufacturing setting. The possibilities for observing employee competencies and skills in the field are not limited to any one type of job or industry. Use Observation Checklist for specific jobs, business units or even in your onboarding process – situations where it’s critical to record performance in the field, as it happens. Of course, for compliance purposes, Observation Checklist creates a durable record for reporting or audit purposes. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 36 Compensation / Pay-for-Performance ENABLING A TRUE PAY-FOR-PERFORMANCE ENVIRONMENT Cornerstone Compensation is one of the critical pieces of the full integrated talent management system. It ties together employee learning, performance, and goals to allow for the growth of a true pay-for-performance culture. With Cornerstone, organizations link these key elements to cultivate a dynamic total compensation management process that accounts for actual employee performance and contribution. Cornerstone Compensation: Features and Benefits Manage compensation and salary plans Build and administer short- and long-term incentive programs Suggest pay adjustments based on performance factors Calculate compensation-ratios Views into status of merit planning cycle Build specific approval workflows with automated notifications Flexible roll-ups for planned salary increases Generate reports and view executive dashboards STRATEGIC COMPENSATION MANAGEMENT Cornerstone Compensation provides the tools to allow organizations to reward the behaviors and outcomes they desire most. A pay-for-performance culture promotes ongoing goal achievement, competencies strategically mapped to roles, and high levels of retention. Linking compensation to performance and contribution is no longer only for quota-carrying sales staff and executive leadership. With Cornerstone Compensation, base salary and incentive rewards can be managed on the basis of actual performance for job roles across the board. Align Rewards Connect base, bonus, and equity to employee contribution and goals Link Directly to Performance Performance information at your fingertips for compensation decisions Simplify Pay Scale Changes Make straightforward adjustments, whether for lump sum or merit increases Report on Pay-forPerformance Determine the state of the pay-for-performance organization STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 37 Cornerstone Compensation is a comprehensive compensation management platform to streamline the process of administering highly tailored salary and incentive plans. Importantly, Cornerstone Compensation is a vital component of the larger Cornerstone OnDemand integrated talent management system. Because the data is tightly integrated, it is easy to foster a real pay-forperformance culture that rewards desired employee behavior and aligns employee performance with organizational goals. Clients use Cornerstone Compensation to realize benefits like these: Shorten compensation cycles; Simplify processes, reduce paperwork, and save time; Increase visibility into rewards and performance; Boost employee performance; Align employee contributions to larger goals; and Drive higher retention through meaningful rewards. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 38 COMPENSATION AND SALARY PLANNING Cornerstone Compensation manages all types of compensation programs including salary, merit increases, market adjustments, lump sum payments and other discretionary pay components. Secure, on-demand access for compensation planners and managers Highly flexible, role-based administration matches widely varied workflows Various budgets, salary bases, and adjustment guidelines by pay grade, job role, cost center, division, location, and more Apply merit increases, lump sum adjustments, market adjustment, COLA increases, and manage variable pay Salary data integrated for immediate and accurate valuation of specific job roles Easy-to-use, graphical interface for administrators, managers, and end users INCENTIVE MANAGEMENT Cornerstone Compensation simplifies processes around developing and administering meaningful incentive programs for the distribution of bonus and equity. Bonus management tools give managers appropriate organizational guidelines for awarding bonus pay Equity management tools support complex rules around eligibility, vesting, and grant size Supports all types of stock management planning for restricted stock awards (RSA), incentive stock options (ISO), and non-qualified stock options (NQO) Highly flexible bonus recommendations Easy-to-use, graphical interface for administrators, managers, and end users BUDGETING AND REPORTING Cornerstone Compensation also delivers a range of tools to increase transparency and visibility for administrators and managers. Approval workflows can be configured on-demand to meet even the most complex existing practices Budget summaries and analytics can be accessed simply from many steps of the administration and management processes Supports multiple budget scenarios including variable, fixed, and cascading budgets Standard reports are available to pull key data around adjustment guidelines, budget status, compensation task status, EEO reporting, and more Analytics tools allow for the creation of highly sophisticated custom reports -- on-the-fly and ondemand STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 39 Cornerstone Succession & Career Management Career and Succession Management Inside Cornerstone's Succession & Career Planning module, companies will find a wealth of tools to help identify and promote high-potential employees, allocate resources, find needed skills when needed, build highly efficient teams, and create enterprise-wide succession plans. Cornerstone Succession can even be used as an internal recruiting tool. Cornerstone recognizes that many organizations today want to use technology, where appropriate, to turn push into pull – that is, empowering employees to take an active role in their career development within the organization. Career planning is shown to boost employee engagement and retention, and helps your business to align employees with the best-fit roles. Cornerstone Suite Cornerstone Suite As with all Cornerstone modules, Succession As with allthe Cornerstone tools can be in modules, theused Succession isolation conjunction tools canor beinused in with otherorCornerstone isolation in conjunction modules. with other Cornerstone modules. Cornerstone Succession & Career Management: Features and Benefits Keep track of upwardly mobile employees Optimize performance across the board, not just at executive level Build effective & efficient teams in real-time Address team strengths and weaknesses Increase competitive advantage and plan for long-term organizational health Empower employees with career management tools Let employees express career preferences Succession Planning The Succession Management Planning (SMP) feature allows managers and employees to work in a structured manner to develop individual careers within (and with attention to) the larger organizational structure. With SMP, managers can record information about subordinates, including: Performance and potential ratings; Retention risk rating; and Possible future positions. This information is collected to paint an evolving picture of each employee at the individual level – and to feed into the broader needs of the company at the organizational level. Notably, SMP allows management to sketch the future organizational structure. Utilizing specific talent management reports, the client can identify not only future positions, but also employees to fill them. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 40 Cornerstone’s Succession Management Plans enable clients to identify and promote high-potential employees deep within the organization at any level. The current and future organizational design can include: Succession plans; High-potential employees; Retention risk; and External recruiting requirements based on identified succession gaps. The Succession Planner allows managers to dynamically generate lists of qualified potential successors for any employee. Managers can locate successors based on competency assessment scores, education levels, professional roles, skills, and job level. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 41 Talent Pools Talent pooling focuses succession planning on critical positions rather than management hierarchy. The organization identifies specific roles that are mission-critical to success and for which a prolonged vacancy could prove extremely detrimental. Then operational or HR managers identify employees who can fill those positions, resulting in a “pool” of talented resources which can be drawn upon, as needed. Similarly, talent pools can be created for certain attributes, most commonly for employees with high potential. By organizing these employees into a talent pool, management can more closely monitor their careers, track their leadership development, and keep an eye on their retention risk. Such a talent pool can then be a preferred candidate source for any open senior positions, as those employees become “ready to move” now. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 42 Organizational Charting Graphical organizational charting allows decision makers to view the organization (or specific subsets – divisions, business units, locations, branches, working groups) on the basis of organizational hierarchy. Performance, succession, readiness, and other talent management data can be used to generate different views into the health of the organization. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 43 Internal Recruiting These powerful tools enable an organization to conduct truly effective internal recruiting, enabling substantial savings in the form of eliminated recruiting, training, and opportunity costs. Cornerstone’s Candidate Search tool allows administrators and recruiters to search for internal candidates based on attributes such as their position, location, certifications, skills, experience, competencies, retention risk, and willingness to relocate. Reusable position profiles enable quick searching with automatic candidate ranking. Cornerstone’s Candidate Tracker tool then allows recruiting administrators to delegate recruiting responsibilities by creating candidate lists from their search results and submitting these lists for review to hiring managers. The Candidate Tracker automatically tracks how many positions a candidate is reviewed for and all decisions regarding each candidate. This feature enables administrators to identify overlooked employees and define developmental opportunities for these individuals. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 44 Career Management Career Center gives employees the tools necessary to take a more active role in their career planning and career development within the organization. The Career Center is the employee’s central location for managing career mobility and development within the organization, thus contributing to higher retention and engagement. Employees maintain internal Resumes; specify Career Preferences and career goals; determine and research career mobility through Career Paths; and conduct position searches to seek out new opportunities within the organization. Further, to improve readiness, employees can pursue internal development and training activities mapped to the competencies and skills required of specific positions. The Career Center is built around three core areas: Resume / Talent Profile Career Preferences Career Paths RESUME / TALENT PROFILE The quality of data needed for organizational planning, succession management, and broad talent management is not typically found in the data passed from a recruiting or applicant tracking system. Unifying the best data about your employees’ skills, competencies, education, experiences, preferences, certifications, licenses, etc. is critical. The Career Center Resume does just this, tracking all key talent attributes across the talent management platform. This profile information can then be used for myriad purposes including career planning, succession management, project team building, internal recruiting, and more. Resume fields are identifiable and configurable by the client. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 45 CAREER PREFERENCES To aid in capturing key data around career mobility, Cornerstone allows employees to express certain career preferences. Again, the client determines the specific information to be captured. For example, willingness to relocate, specific geographic preferences, and long-term career goals. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 46 CAREER PATHS Career Paths help organizations drive employee engagement and retention by developing their potential through access to career paths, open positions and learning experiences. Career Paths allow an employee to view potential paths for career development within the organization. As with everything in Cornerstone, rights and permissions ensure that administrator can configure the system to meet desired workflows and internal processes. With a potential position identified, the employee can view that specific set of skills and competencies required for success and compare her current competency profile with the required state. Gaps can be addressed proactively by training and development activities present in the catalog (or external training). Further, a specific Development Plan can be created with this career path in mind. Employees can work collaboratively with managers to develop a plan to meet career goals within the organization. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 47 Cornerstone Extended Enterprise Today, forward-thinking organizations are finding a fertile area for new growth in effectively reaching out to the extended enterprise of customers, partners and members to develop new profit centers, increase sales, cut support costs and boost channel productivity. In addition to traditional HR and learning circles, new users from sales, marketing, IT, customer service and other areas are now taking advantage of extended enterprise learning to engage, educate and certify customers and partners. For years, organizations have leveraged the power of learning technologies to increase knowledge and skills and to improve the performance of their internal workforce. Increasingly, similar tools are being turned to the outside and are finding new uses and new audiences. What is the Extended Enterprise? In today’s interconnected world, organizations are more likely to understand that they are not islands unto themselves. An entire extended enterprise of customers, business partners, members of associations, franchisees and vendors up and down the supply chain are dependent on one another and work together for mutual benefit. For organizations with an investment in e-learning and training capabilities such as a learning management system (LMS), it makes sense to leverage this existing technology infrastructure as an asset that can be shared with a broader audience. Driving value from your extended enterprise is about more than just delivering product training and information. It’s about enablement and breaking down old walls. Social collaboration technologies can facilitate connections with customers and channel partners in ways never before possible. Specifically, these new users are looking at two areas to drive revenue, productivity and loyalty: Customer training for profit: For both customers and channels, learning technology can generate revenue by delivering training content while simultaneously cutting support costs and reaping the benefits of customer and partner communities. Partner/Channel Enablement: Delivering product training and decreasing time-to-productivity can boost productivity from partner networks and channels. Partner communities allow for rapid exchange of information in markets where information is currency. Boost output from your channels by giving your partners the tools they need to compete effectively. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 48 Two Solutions TRAINING-FOR-PROFIT PARTNER ENABLEMENT Challenges Challenges Are the costs of customer support too high? Are the costs of partner support too high? Unknown? Is your company missing an opportunity to develop a revenue stream from customer training? Are revenues from channel operations maximized? Do your customers know how to best use your products? Is customer loyalty low? Do customers provide consistent feedback on your products? Are your resellers certified to sell and service your product? Are your partners capable of positioning your products with prospective customers when selling them? Are your partners consistent ambassadors of your brand? Benefits of Cornerstone’s Solution Benefits of Cornerstone’s Solution Increase revenues - higher product sales Increase revenues - higher product sales Increase revenues - better product utilization Increase revenues - partner training as a profit center Increase revenues - customer training as a profit center Reduce support costs (smarter partners, community support) Reduce support costs (smarter clients, community support) Reduce training costs (administration, informal learning, reduced time-to-productivity) Reduce training costs (administration, informal learning) Shorten partner time-to-productivity Boost the number of certified partners Build closer relationships with customers The Extended Enterprise Product Cornerstone Extended Enterprise is the most comprehensive solution for training, connecting, and enabling your organization’s extended network of customers, members, and partners. Whether you want to build out a new profit center from your existing customer training program or you want to drive partner effectiveness in selling your products, Cornerstone gives you complete control with the right technology, content, and supporting services. ACCESS Match your specific needs - fully decentralized administration with centralized control and reporting. Build highly configurable domains and portals for easy audience segmentation Allow guest and self-registration Require authentication or allow users to browse specific areas of the solution prior to signing in Process transactions with e-commerce tools TRAIN Complete administration of all types of training for your customers or partners. Allow users to search, browse, register for, and purchase training (and any type – online, classroombased, virtual, documents, etc.) Set up tiered training catalogs (free, fee-based, other) STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 49 CERTIFY Build and deploy certification programs to ensure that your partners have the right knowledge to succeed. Manage tiered (gold, silver, bronze, etc.) certification paths Deliver annual or interim assessments to maintain status CONNECT Social collaboration tools let you maximize touch points with your audiences. Enable continuous learning – not just event-based Drive customer engagement / customer self-service Drive partner/channel engagement / partner self-service Product innovation communities (ideas) REPORT Immediate, web-based access to meaningful and detailed data on all extended enterprise activity. Standard and custom reports Dashboard views for management Show training completions by customer type Show certification status by partner type STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 50 Cornerstone Analytics Reporting, Data Management, Analytics, and Dashboards Cornerstone utilizes a proprietary reporting engine that is included with the application. In addition to over 80 included “canned” reports, the platform also includes a custom reporting tool (Analytics) for the creation of a limitless number of highly specific reports. Lastly, the application includes powerful Dashboards technology to present immediate views into the most complex data. All reports (including the canned reports) have configurable data fields such as date range, user criteria, etc. Reports can be scheduled by administrators, meaning that reports can be set to automatically generate themselves on a regular basis. Reports can be generated and sorted by division, level, location, user, cost center or any combination thereof. All reporting is web-based with the option to prepare printable reports or export reports to various formats including Microsoft Excel. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 51 Analytics As noted above, Cornerstone also includes a custom report builder, allowing administrators to develop new reports from dozens of available data points and subsequently applying filters and conditions to present the precise view of the training data desired. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 52 Dashboards Authorized Cornerstone users can also access personalized dashboards for instantaneous access to any type of system-wide data, all in one place. Different classes of dashboards can be custom built, on the fly, with no programming knowledge. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 53 Select Cross-Platform Tools MyTeam for Managers MyTeam is designed to give managers greater visibility into their employees’ activities, across the board. One key feature is the ability to push out ad hoc daily activities to any direct report. Different than formalized SMART goals (which MyTeam also supports), daily activities engage employees in the key day-to-day tasks that drive every business. MyTeam pulls together all of the modules described above to deliver a single, unified view into all talent management processes. Clients can use MyTeam no matter which features of the broad Cornerstone OnDemand talent management suite they currently use. As noted, clients can take advantage of MyTeam no matter what modules of the Cornerstone OnDemand they put into use. Organizations that take an integrated approach to learning, performance, and talent management will realize the maximum benefit of tying together these important processes in a single, engaging screen. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 54 People Finder Today, information moves fast and changes daily. Being able to find people, expertise and experience on the fly is increasingly an important part of getting the job done in the modern workplace. Employees are also increasingly demanding new and more innovative ways to locate information and connect with colleagues. People Finder is a way to encourage adoption of the Cornerstone system on a daily basis and to give employees the tools they need to work smarter. People Finder allows users to search for other users within the system based on various user information fields, including division, location, skills, tagged interests, and more! While viewing the search results, employees can print or export the results to Excel for easy reference, email certain users, or make connections with those users. The People Finder allows for tags. Individual employees can personally tag (for their eyes only) other users in order to better organize the people and skills they call on in the service of working smarter. For example, you might tag a group of colleagues with a specific type of expertise or all colleagues in a specific location or on a specific working group. Tags are only seen by the tagging user and help in locating critical expertise at a moment’s notice. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 55 EMPLOYEE RECOGNITION (OPTIONAL PART OF PEOPLE FINDER) The ability to provide continuous feedback with employees does not have to stop with the formal performance appraisal process. Increasingly organizations are deploying less formal types of employee recognition that can be driven by HR or by employees themselves. One part of People Finder (and it’s entirely optional), is the new Employee Recognition tool. Your organization can establish its own specific types of recognition. Maybe you only want to award a badge for a corporate sanctioned “Employee of the Month” program. Or maybe you want to open a specific type of badge to all employees to give out to their co-workers - something as informal as a “Pat on the Back” for a recent working group experience. Employee Recognition badges are listed on the employee’s User Profile page, represented by icons that you choose for the individual “badges.” STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 56 Company Qualifications Cornerstone is publicly traded on NASDAQ under the ticker CSOD. CORNERSTONE BY THE NUMBERS Cornerstone OnDemand is the leading provider of on-demand enterprise software solutions for talent management. Some important figures illustrate the company’s current standing and ongoing success: 11 6 410 100% 6,000,000 1 95% 176/28 Over a decade in business Global offices with headquarters in Los Angeles Employees globally True multi-tenant Software-as-a-Service (SaaS) Subscribers across all product platforms Organically developed product: no acquisitions or old versions Client retention rate Deployed in 176 countries in 28 languages INTEGRATED TALENT MANAGEMENT FOR THE ENTERPRISE Cornerstone OnDemand helps organizations to empower their people and optimize workforce productivity with a comprehensive suite of integrated talent management solutions for learning, social networking, compliance, performance, compensation, and succession management, as well as robust reporting and analytics. Cornerstone also provides over 30,000 pre-integrated training titles. Cornerstone Global Services offers a wide range of value-added consulting services to support and enhance deployment of enterprise management systems. Our in-house experts, along with our global strategic partners, offer a wealth of experience in process consulting, e-learning and training initiatives, as well as world-class support for Cornerstone. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 57 VALIDATED BY INDUSTRY ANALYSTS Cornerstone’s approach to all facets of talent management technology has been validated through the research of leading industry analysts – for our products, our client success focus, and our durability over the long term. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 58 GLOBAL SUCCESS STORIES Cornerstone’s triple-digit growth has been supported by a market-leading customer retention rate. Marquee organizations like the ones below count on Cornerstone to help them achieve organizational excellence and competitive advantage. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 59 Technical Specifications Introduction Cornerstone is a Software-as-a-Service (SaaS) with an open, scalable architecture. This allows the system to be implemented globally with minimal involvement of a company's resources and enables immediate system upgrades. Because of the open design of the system, it is totally customizable to suit each company's unique needs, and unlike other learning management systems, Cornerstone is fully deployable across the entire enterprise within weeks. Cornerstone’s service is subscription-based, ensuring a constant commitment by our team to offer top courses by the best providers managed through an easy-to-use administration system. And the system’s open architecture means that Cornerstone will interface with other information systems in use. ON-DEMAND MODEL As a Software-as-a-Service, Cornerstone significantly reduces the IT time and cost typically associated with enterprise software. Everything is web-based, enabling rapid global deployment and 24x7 access. As a SaaS, Cornerstone offers: Rapid global deployment; Instantaneous upgrades worldwide; Network-wide attribution of system enhancements; Lower costs; Greater scalability; and No legacy costs. Overall System Architecture Cornerstone is a web-based, n-tier application built on Microsoft server technologies. With an emphasis on Microsoft.Net and object development methodologies, maintenance and expansion on features is performed on a rapid basis. The back-end business logic is built on an object oriented system, implementing a fully normalized relational DBMS design consisting of Transact-SQL stored procedures on Microsoft SQL Server 2008. The application is designed to scale horizontally. So, as additional server equipment is added, the application capacity scales to fill the available hardware. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 60 Integration and Data Services Cornerstone has amassed significant experience in integrating the application to client HRIS, ERP, and CRM systems for both ongoing user data and historical data loads. Nightly and real-time feeds are possible to ensure ongoing data integrity and operational support. SYSTEMS INTEGRATION. Cornerstone's open-system architecture allows easy integration with other databases. Our data integration consultants will assist your team in determining the best method of integration to meet your business objectives. Cornerstone's team has extensive experience utilizing web services to transmit data to and from multiple database environments. IMPORTING LEGACY DATA. Cornerstone utilizes a proven, repeatable process to migrate data from existing legacy systems and has experience converting data from all major competitors. Our process ensures ongoing data integrity and compatibility. Our technical consultants will determine the most effective method of historical data conversion from varied data sources into Cornerstone. Hosting Solution & Scalability To support its rapid growth, Cornerstone OnDemand has moved to two state-of-the-art data facilities utilizing entirely new equipment. Cornerstone is now operating the most sophisticated, redundant software-as-a-service data center operations in the industry. This not only supports future growth, but also ensures that current clients benefit from a cutting-edge SaaS environment – helping them get the most from their investment in Cornerstone. The new data center delivers industry leading stability, reliability, security, and general performance. Brand new equipment, network configurations and improved transparency across the system give Cornerstone more control than ever before. Located in Los Angeles and London, the facilities are being supported by our partner Equinix, a leading provider of global IT infrastructure services. Our supporting technology partners include Microsoft, IBM, Coradiant, Cisco, and EMC. Security Model Cornerstone runs behind a firewall that is isolated from the public Internet and from our corporate intranet; in addition, the presentation layer is also isolated from the data by a firewall. Network infrastructure security includes managed firewalls; port filtering and network address translation via load balancers. Client Access Every user requires a unique username and password to access the application. By default, client authentication is conducted through a local hashing algorithm and all passwords are stored in our database in an encrypted format to minimize security liability. Alternatively, clients can be authenticated using security tokens, utilizing a symmetric algorithm, passed by the client’s local authenticator for Single-Sign-On functionality. Client browser access to the web servers utilizes 128-bit SSL encryption to minimize network packet snooping vulnerability for any transmitted sensitive data. STRICTLY CONFIDENTIAL ©1999-2011 Cornerstone OnDemand, Inc. All Rights Reserved. 61