What does the C-Suite really want from HR and L&D?
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1 What does the C-Suite really want from HR and L&D? Presented by: Joe LiVigni MSTD Director Training & Development Capsim Management Simulations
2 It s All About the People Garry Ridge President & CEO of WD-40 Company Engagement = Productivity = Business Results 5 year stock results attributed to living the values and culture 2
3 WHO IS CAPSIM? Since 1985 Leader in Business Simulations & Business Training Academic Market Used by over 100,000 students last year Used in over 900 Universities Corporate Training Fortune 100 s to small companies Leadership programs focused on business impacts, leadership, strategy, and finance We talk with C-Suite leaders and learn how they need HR and L&D drive business impacts We deliver business acumen programs for HR and L&D professionals We believe in experiential learning
4 Capsim Corporate Clients
5 Today We Will Cover: Review recent thought leaders opinions on HR & L&D s impact on the business Explain how to create a competitive advantage through HR and L&D Examine linking HR metrics to impacting business results Propose ideas for measuring return on softer skills training like leadership development
6 Continuous Learning enables competitive advantage Claus Hovelt, Director of Corporate Learning, SimCorp 6
7 Complete overview of skills/knowledge for each job role linked to the strategy Overall Strategy Departments Strategy & KPIs Behaviors Skills & Knowledge Development Plan Through Living (70%) Through Leading (20%) Through Learning (10%) Developmental talks Supporting IT System for Training Look Familiar to anyone Kirkpatrick's Model Model Continuous Learning enables competitive advantage Claus Hovelt, Director of Corporate Learning, SimCorp 7
8 Fearless HR - Driving Business Results David Forman Chief Learning Officer Emeritus, Human Capital Institute (HCI) and author of "Fearless HR" Evolution of HR Polite--Police--Partner--Player levels of engagement operating income by 19% levels of engagement operating income of 33%. 20% of a business s success attributed to effective HR professionals. People costs often comprise more than 50% of all the costs in the organization. 8
9 Evolution of HR Fearless HR - Driving Business Results David Forman Chief Learning Officer Emeritus, Human Capital Institute (HCI) and author of "Fearless HR" 9
10 Business Acumen Q s Is L & D s agenda the business s agenda? What are revenue & cost trends over the past 3 to 5 years? What % of market value is comprised of intangibles? What is revenue per employee and how does this compare with three top competitors? What is your New Product Vitality Index (percent of revenue from products brought to market in the last 3 years)? Do you have a financial buddy? Fearless HR - Driving Business Results David Forman Chief Learning Officer Emeritus, Human Capital Institute (HCI) and author of "Fearless HR" 11
11 The Steps to Take: Break down capabilities & competencies into KPI s Develop an assessment instrument & gather diverse data on your own strengths and weaknesses. Pick 2-3 areas to work on. Develop & commit to a 6-8 month development plan. Assess actual progress Fearless HR - Driving Business Results David Forman Chief Learning Officer Emeritus, Human Capital Institute (HCI) and author of "Fearless HR" 12
12 Meaningful Outcome Measure Fearless HR - Driving Business Results David Forman Chief Learning Officer Emeritus, Human Capital Institute (HCI) and author 13 of "Fearless HR"
13 14
14 SWT Analysis Guide 15
15 Here s What HR Must Do to Have the Business Impact CEOs Want By Dr John Sullivan - September 22, 2016 TLNT 1. Accept accountability for improving people-management results 2. Demand a shift to data-based decision-making 3. Measure and increase workforce productivity 4. Make managers accountable for great people management 5. Build a competitive advantage 6. Expect reporting on continuous improvement 7. Measure quality and error rates in people management programs 8. Calculate your ROI 16
16 3. Measure and increase workforce productivity Workforce Productivity- the average revenue per employee. Revenue / # of employees Another more powerful but harder to calculate indication of workforce productivity is revenue per labor dollar spent. Revenue / total labor costs Here s What HR Must Do to Have the Business Impact CEOs Want By Dr John Sullivan - September 22, 2016 TLNT 17
17 5. Build a competitive advantage Monitor the talent results and the approaches of major talent competitor Ensure that what we do in talent is better in every important area than what they do. Here s What HR Must Do to Have the Business Impact CEOs Want By Dr John Sullivan - September 22, 2016 TLNT 18
18 6. Reporting on continuous improvement Talent leaders should expect continuous improvement in: quality of hires workforce productivity turnover rate of top performers rate of innovation learning and operational speed of the organization. Here s What HR Must Do to Have the Business Impact CEOs Want By Dr John Sullivan - September 22, 2016 TLNT 19
19 8. Calculate your ROI Almost every department & program is expected to produce a positive ROI. Typically, when talent leaders attempt to calculate ROI- they only focus on the cost side, completely ignoring the other side of the equation that covers the business impacts of your investment in talent. When operated correctly, HR should have a higher ROI than: Finance Operations and even production. Here s What HR Must Do to Have the Business Impact CEOs Want By Dr John Sullivan - September 22, 2016 TLNT 20
20 Measuring ROI in Leadership Development Number of potentials in program who were promoted Promotions over time periods Amount of money invested in development compared to time to promotion 21
21 Measuring ROI in Leadership Development Time to fill vacancies in leadership roles 22
22 Measuring ROI in Leadership Development Tenure at company Compare those through program vs those not in program 23
23 Measuring ROI in Leadership Development Number of employees promoted under new leaders Take into account are there opportunities Strong leaders foster growth on their teams 24
24 25
25 You are all cordially invited: Webinar How Do You Link HR Metrics to Business Strategy and Outcomes? Wed, April 26, PM CDT 1 HRCI Re-Certification Credit BUSINESS ACUMEN WORKSHOP A 2-day workshop - transforms HR Pro s into business leaders/players June 7-8 Chicago, IL 15 HRCI Re-Certification Credits 26
26 Questions?
27 Want to hear more? Visit our table or: Contact Kiersten DeBrower
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