11/1/2016. Today s Discussion. What Do We Mean by Running L&D and HR like a Business?

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1 Running L&D and HR Like a Business: An Introduction to Talent Development Reporting Principles (TDRp) ATD/SHRM Nashville October 27, 2016 David Vance Executive Director Today s Discussion 2 Introduction to TDRp Closer Look at Alignment TDRp Measures TDRp Reports Conclusion and Q&A What Do We Mean by Running L&D and HR like a Business? 3 Planning carefully» Strategic alignment» Specific, measurable goals Executing the plan with discipline» Regular monthly meetings» Using standard reports 1

2 We Could be Better Managing the Business of Learning and HR Two levels» Personally» Professionally (accounting analogy) Would allow us to» Deliver greater value at any level of resource» Be more successful What is needed?» Basic business skills for management» Confidence to apply them 4 5 Talent Development Reporting Principles (TDRp) Framework Talent Development Reporting Principles (TDRp) 6 Brings standards to L&D and HR for the management of human capital» Planning - Alignment - Reaching agreement on measures of success» Measurement» Reporting» Execution Center for Talent Reporting Mission: Improve & standardize the measurement, reporting, and management of human capital to increase business value 2

3 Talent Development Reporting Principles (TDRp) 7 Engaged 30 industry thought leaders like Fitz-enz, Bassi, Phillips, Bersin, Brinkerhoff, and CLOs/ Senior Talent Leaders of major organizations to develop the standards in 2010 & 2011 TDRp for L&D completed in 2011 Extended to all HR processes in 2012» Learning & Development» Talent Acquisition» Leadership Development» Performance Management» Capability Management» Total Rewards (C&B) TDRp Designed to Run L&D and HR with Business-like Discipline 8 In Support of Business Goals 1. Identify the business goals 2. Align L&D and HR initiatives to business goals 3. Get upfront agreement with goal owner on planned impact and other measures 4. Review progress against plan every month using reports which show year-to-date results and forecast 5. Take appropriate management actions to achieve plan In Support of L&D/HR Goals 1. Decide on key initiatives for the department 2. Select appropriate measures to manage key initiatives 3. Agree on a plan for each one 4. Review progress against plan every month using reports which show year-to-date results and forecast 5. Take appropriate management actions to achieve plan What TDRp Offers 9 Guidance for» Identifying organizational and department goals» Aligning your initiatives to them» Choosing the right measures» Reaching agreement on planned impact on organizational goals» Setting plans for effectiveness and efficiency measures at department level» Creating and using reports to manage Classification of measures into three types» From work of Trolley (1999) and Boudreau (2007) Standard names and definitions for measures» Built on work of ATD, Fitz-enz, Higgins, others Three customizable management reports 3

4 The Target Audience for TDRp 10 Talent leaders and managers» All those responsible for programs, people, and budgets Senior talent leaders» SVP of HR, CLO, Head of Talent Acquisition, heads of other talent processes (leadership development, capability management) Senior organizational leaders» CEO, CFO, EVPs, SVPs, governing boards L&D and HR employees Different reports required for different audiences 11 Closer Look at Alignment and Goal Setting Strategic Alignment 12 The proactive process of identifying business goals and aligning your initiatives to them Start by discussing with CEO before fiscal year begins» You want next year s goals in priority order and names of owners Talk with goal owners to determine if you have a role to play» If so, agree on initiative, planned impact, and what it will take to achieve it Output is summary of alignment and planned impact» Also action items and roles & responsibilities document 4

5 Example of Alignment to Business Goals for L&D Initiatives 13 Unit of Business Goals and Supporting L&D Programs Measure Actual Plan Revenue: Increase Sales by 20% Corporate Goal or Actual % 10% 20% Impact of L&D Initiatives: Medium Impact on goal % Low Medium New product features training, Consultative selling skills Safety: Reduce Injuries by 25% Corporate Goal or Actual % 10% 25% Impact of L&D Initiatives: High % Medium High Impact on goal Safety programs to address top five causes of injuries Costs: Reduce Operating Expenses by 15% Corporate Goal or Actual % 5% 15% Impact of L&D Initiatives: Medium Impact H/M/L Low Medium on goal Training for purchasing agents Training for all employees on reducing costs Training for department heads to meet 15% goal Quality: Improve Quality Score by 4 Points to 80% Corporate Goal or Actual Points 1.6 pts 4 pts Proxy for impact: Application of Key Behaviors % who applied them 84% 95% Design skills for engineers to improve manufactuarability Sourcing training for purchasing toreduce purchased defects Cell leader training to ensure manufacturing to specifications Next, Align Programs to HR Goals 14 Unit of HR Goals and Supporting L&D Programs Measure Actual Plan Engagement: Increase Engagement Score by 3 Points to 69.4% Corporate Goal or Actual Points 1 pt 3 pts Impact of L&D Initiatives: Low Impact on goal H/M/L Low Low IDP for each employee to include some training Increase use of online learning for general development Leadership: Improve Score by 4 Points to 75% Corporate Goal or Actual Points 1 pt 4 pts Impact of L&D Initiatives: High Impact on goal H/M/L Med High Intro to Supervision Leadership for managers Advanced leadership for department heads Last, Identify Other Goals and Set Plans 15 HR and L&D leaders will also have other goals like» Implement a new system HRIS system by July 15» Reducing time to fill positions by 30 days» Reaching all employees with learning» Ensuring all employees have goals and a development plan» Increase online and blended learning by 30% SMART goals needed for each measure Plan to accomplish them» Action items, roles & responsibilities Focus on the vital few 5

6 16 TDRp Measures The Three Standard Measures 17 Standard Measures: Efficiency measures: How much? Reports How many? At what cost? Effectiveness measures: How well? Outcome measures: What is the impact on the business? Statements Program/ Initiative Analytics System Wide Analytics Specific methodology (e.g. Phillips, Brinkerhoff) Standard Measures Systems and processes for organizing data, calculating measures Data Data Sources and Systems The Three Types of TDRp Measures (You need to measure all three!) Effectiveness: quality of program or initiative» For individual programs and for enterprise overall» Examples: Participant satisfaction with training, quality of hire, satisfaction with performance management or compensation, bench strength Efficiency: efficiency of program or initiative» For individual programs and for enterprise overall» Examples: Number of hires, number of participants, number of performance discussions, span of control Outcomes: impact of L&D and HR initiatives on org. goals» Will be a different set for each organization because goals and initiatives are different.» Common outcome measures are impact on: sales, cost, quality, employee engagement, leadership score, diversity, etc. 18 6

7 Effectiveness Measures 19 Process Learning & Development Talent Acquisition Leadership Development Performance Management Capability Management Total Rewards Effectiveness Measures Satisfaction, amount learned, application, impact Quality of hire, hiring process effectiveness Bench strength, Succession planning success rate % of employees with improved ratings, % of employees with rating turnaround % of employees with career discussion, % career movement, % of positions with ready replacement High performers salary differential, compa ratio Efficiency Measures 20 Process Learning & Development Talent Acquisition Leadership Development Performance Management Capability Management Efficiency Measures Number of participants, courses; utilization rate Number of internal/external hires, acceptance rate, time to start Span of control, tenure, % of positions filled internally Number of performance discussions, % of employees with goals, % of employees with performance reviews Number of promotions, number of transfers, average time in position Total Rewards Average benefit cost, variable compensation % Outcome Measures 21 The impact of your initiatives on the organization s goals» May be expressed quantitatively, qualitatively, or with a proxy Examples» Impact of L&D on sales» Impact of HR on employee engagement» Application rate of training (as a proxy for impact) Bottom line, some measure of impact or success will be needed» All selected outcome measures will be managed 7

8 Measures can be used to Manage or Monitor Measures to manage» Most important» Typically directly aligned to your goals» Plan or target has been established» Forecast is made and updated» Reviewed at least monthly by senior leaders Target the vital few - If not on plan, or if forecast is to fall short of plan, senior leaders discuss and agree on action to take to achieve plan 22 Measures to monitor» Less important» Typically involve more detail» Reviewed as needed May have many Center for Talent Reporting 23 TDRp Reports The Reports 24 Three levels of reports» Summary Report (for CLO and CEO)» Operations Report (for CLO)» Program Report (for Program Managers and CLO) Standard formats, pulling the most important measures from the lists Executive-level reports show» Last year s actual» Plan (or goal) for this year» Year-to-date results» Forecast for this year Detailed reports for managers may show» Monthly, quarterly, trend data» Granularity» Without plan or forecast 8

9 Reports Designed to be used in Monthly Meetings to Manage/Share Results Department Head meeting with direct reports» Ideally in a 1-2 hour meeting dedicated to managing results» Cover Summary Report, Operations Report, Program Reports» Take management action as necessary to deliver plan Program Manager with team» Use Program Report to manage program» Prepare Program Report to be shared with Department Head Other meetings (Senior Leaders, Board of Governors, CEO)» Use Summary Report 25 Executive Reporting Focus 26 Scope of TDRp Summary Conclusions, Actionable Recommendations, Issues for Further Analysis Reports Program/ Initiative Analytics System Wide Analytics Specific methodology (e.g. Phillips, Brinkerhoff) Measures Systems and processes for organizing data, calculating measures Data Sources /Systems Executive Reports Measurement and Reporting Process Executive Senior Executives 27 Reporting Process Talent Development Executives Talent Development Summary Report Quarterly Talent Development Program Report (s) Monthly Talent Development Operations Report (s) Monthly Measures Note: Measures can be organized by processes and/or efficiency, effectiveness & outcomes Outcomes Effectiveness Efficiency Talent Development Processes Talent Leadership Learning & Capability Performance Total Acquisition Development Development Management Management Rewards Guiding Principles Extract, convert and calculate Standard Measures Data Sources Financial Systems Non-Financial, non-tdr Systems Evaluation, EOS Systems Others: HRIS, LMS, CRM, ERP 9

10 The Program Report 28 Purpose: Manage key programs to deliver planned results Audience: Program Managers and Department Head Senior Talent Executives Talent Development Program Report Monthly Generated for each goal supported by a major L&D or HR program» Includes measures necessary for senior talent leaders and managers to manage program, initiative, or process results on a monthly basis.» Includes outcome measures relevant to the program and the key effectiveness and efficiency measures. Outcomes Effectiveness Efficiency Sample Program Report for L&D Programs in Support of the Goal to Reduce Injuries 29 Results through June YTD Forecast YTD Compared Compared Goal Owner: Swilthe, VP of manufacturing Metric Actual Plan Results to Plan Forecast to Plan Enterprise Goal: Reduce Injuries % 8% 25% 10% Below Plan 22% 88% Impact of Learning: High contribution % High High Below Plan Plan for 2017 Near YTD Forecast YTD Compared Compared Programs to Reduce Injuries Metric Actual Plan Results to Plan Forecast to Plan Develop Two Courses Efficiency measure: Complete Number NA % 2 100% by 1/31 Deliver Two Courses Efficiency measures Unique Participants Number 452 3,000 2,800 93% 3, % Total Participants Number 858 6,000 5,542 92% 6, % Percentage complete by 3/31 % NA 95% 92% 3% below 92% 3% below Effectiveness measures Level 1: Participants % 70% 80% 85% 5% above 82% 2% above Level 2: Test score % 86% 90% 95% 5% above 92% 2% above Level 3: Application rate % 53% 95% 75% 20% below 90% 5% below The Operations Report 30 Purpose: Manage Talent operations to deliver improvements in effectiveness and efficiency Pulls key measures to be managed from the Efficiency and Effectiveness Lists Audience: Department Heads and managers Operations Report Effectiveness Efficiency 10

11 Sample Operations Report for Talent Acquisition For 2017 Effectiveness Measures Actual Plan Jun YTD % Plan Forecast Quality of Hire Supervisor New Hire Satisfaction 68% 80% 78% 2% below 80% Rating % Top two boxes Average Performance Ratings of New Hires % Top two boxes 51% 70% 72% 2% above 75% New Hire Employee Engagement % Top two boxes 68% 80% 74% 6% below 78% Hiring Process Effectiveness New Hire Recruiting Satisfaction Rating % Top two boxes 77% 85% 81% 4% below 83% Hiring Manager Hiring Process Satisfaction % Top two boxes 71% 80% 73% 7% below 76% Applicant Percent of Job Requirements Met % Top two boxes 81% 90% 88% 2% below 88% Hires Percent of Job Requirements Met % Top two boxes 85% 95% 90% 5% below 92% Percentage of Planned Positions Filled % Top two boxes 91% 100% 94% 6% below 100% Sample Operations Report (continued) Actual Plan For 2017 Jun YTD % Plan Forecast Efficiency Measures Cost Measures Total Hiring Cost Million $ $5.6 $7.3 $6.1 83% $7.7 Internal Hiring Cost Million $ $0.4 $0.3 $0.3 87% $0.3 External Hiring Cost Million $ $5.2 $7.0 $5.8 83% $7.4 Cost per Hire Thousand $ $28.7 $19.7 $ % $19.3 Internal Cost per Hire Thousand $ $11.8 $6.0 $ % $5.0 External Cost per Hire Thousand $ $32.3 $21.9 $ % $21.8 Hiring Activity Total Hires Number % 400 Internal Hires Number % 60 External Hires Number % 340 External Offer Acceptance Rate % 60% 70% 63% 90% 66% Cycle Time Time to Fill Days % 80 Internal Time to Fill Days % 46 External Time to Fill Days % 86 Sample Operations Report for L&D 33 Sample Operations Report for L&D Results through June For Comparison Comparison Effectiveness Measures Unit of Measure Actual Plan Jun YTD to Plan Forecast to Plan Level 1: Participant Feedback (All programs) Quality of content % favorable 76% 80% 79% 1% below 79% 1% below Quality of instructor % favorable 80% 85% 86% 1% above 85% on plan Relevance % favorable 72% 78% 73% 5% below 75% 3% below Alignment to goals % favorable 68% 75% 69% 6% below 71% 4% below Total for Level 1 Average of measures 74% 80% 77% 3% below 78% 2% below Level 1: Sponsor Feedback (Select programs) % favorable 66% 80% 68% 12% below 75% 5% below Level 2: Learning (Select programs) Score 78% 85% 83% 2% below 85% on plan Level 3: Application rate (Select programs) Intent to apply (from survey at end of course) % top two boxes 70% 75% 70% 5% below 72% 3% below Actual application (after three months) % who applied it 51% 65% 55% 10% below 63% 2% below Center for Talent Reporting 11

12 Sample Operations Report for L&D (continued) 34 For Comparison Comparison Efficiency Measures Unit of Measure Actual Plan Jun YTD to Plan Forecast to Plan Total Participants Number 109, ,500 67,357 46% 145,000 98% Total Unique Participants Number 40,729 45,313 36,998 82% 44,000 97% Courses Taken by Type of Learning ILT only % of total 56% 25% 40% 15% below 33% 8% below vilt only % of total 3% 12% 9% 3% below 10% 2% below E-learning only % of total 35% 48% 39% 9% below 42% 6% below Blended only % of total 6% 15% 12% 3% below 15% on plan Total courses % of total 100% 100% 100% 100% Utilization of E-learning Courses Available Number % 70 95% Taken by more than 20 Number % 55 79% % taken by more than 20 % 83% 95% 29% below 79% below 66% 16% Reach % of employee reached by L&D % 85% 88% 72% 16% below 88% on plan % of employees with development % 82% 85% 84% 1% below 90% 5% above plans Course Management Total Developed Number % % Number Meeting Deadline Number % 28 85% % Meeting Deadline % 73% 92% 67% below 78% below 25% 14% Total Delivered Number % % Center for Talent Reporting Bringing it All Together: The Summary Report Audience: Senior business and HR executives, CLO Most significant measures from the effectiveness, efficiency and outcome lists aggregated at the highest level Senior Business Executives Talent Development Summary Report Quarterly Measures will vary by organization and year to year based on organizational priorities Generated at least quarterly Must be read holistically to obtain an accurate picture of progress against goals 35 Outcomes Effectiveness Efficiency L&D Summary Report 36 Results through June For 2017 Unit of Forecast as Measure Actual Plan % of Plan Business Goals and Supporting L&D Programs Jun YTD % of Plan Forecast Revenue: Increase Sales by 20% Corporate Goal or Actual % 10% 20% 17% 3% below 20% on plan Impact of L&D Initiatives: % Low Medium 4% 1% below 5% on plan Medium Impact on goal New product features training, Consultative selling skills Safety: Reduce Injuries by 25% Corporate Goal or Actual % 10% 25% 15% 5% below 20% on plan Impact of L&D Initiatives: % Medium High 10% 4% below 14% on plan High Impact on goal Safety programs to address top five causes of injuries Costs: Reduce Operating Expenses by 15% Corporate Goal or Actual % 5% 15% 10% 5% below 18% 3% above Impact of L&D Initiatives: H/M/L Low Medium 3% 2% below 6% 1% above Medium Impact on goal Training for purchasing agents Training for all employees on reducing costs Training for department heads to meet 15% goal Quality: Improve Quality Score by 4 Points to 80% Corporate Goal or Actual Points 1.6 pts 4 pts 2.9 pts1.1 pts below 3.5 pts.5 pts below Proxy for impact: Application of Key Behaviors applied them 84% 95% 80% 15% below 90% 5% below % who Design skills for engineers to improve manufactuarability Sourcing training for purchasing toreduce purchased defects Cell Center leader For training Talent to Reporting ensure manufacturing to specifications 12

13 L&D Summary Report (continued) 37 For 2016 Unit of 2016 Forecast as Measure Actual % of Plan HR Goals and Supporting L&D Programs Plan Jun YTD % of Plan Forecast Engagement: Increase Engagement Score by 3 Points to 69.4% Corporate Goal or Actual Points 1 pt 3 pts 1.9 pts1.1 pts below 3 pts on plan Impact of L&D Initiatives: Low Impact on goal H/M/L Low Low on plan Low on plan IDP for each employee to include some training Increase use of online learning for general development Leadership: Improve Score by 4 Points to 75% Corporate Goal or Actual Points 1 pt 4 pts 2.2 pts1.8 pts below 4 pts 100% Impact of L&D Initiatives: High Impact on goal H/M/L Med High on plan High on plan Intro to Supervision Leadership for managers Advanced leadership for department heads Effectiveness Measures Participant Reaction % favorable 74% 80% 77% 3% below 78% 2% below Sponsor Feedback % favorable 76% 90% 81% 9% below 85% 5% below Learning Score 82% 90% 85% 5% below 88% 2% below Application rate % who applied it 51% 70% 61% 9% below 67% 3% below Efficiency Measures Total Participants Number 19,369 31,905 14,589 46% 31,000 97% Unique Participants Number 4,552 5,000 3,426 69% 5, % % Courses Meeting % 71% 100% 88% below 88% below Deadline for Development 12% 12% % Courses Meeting Deadline for Delivery % 65% 100% 85% 15% below 87% 13% below Learning Center management For Talent system Reporting Complaints Number % 80 75% 38 Summary TDR Designed to Meet Your Reporting and Management Needs 39 Start with business and HR goals» Align your initiatives» Plan carefully» Add other, lower level goals and plans Use standard definitions to extract and convert data into three types of measures - Outcome, effectiveness, and efficiency Create three types of standard reports from these lists - Program, Operations, and Summary - Use on a monthly basis to deliver better results 13

14 TDRp Take Aways 40 Adopt a business-like approach Adopt the TDRp framework and language Use all three types of measures Create three types of reports Use the reports to run HR and L&D like a business Learn More about TDRP 41 Learn more and get implementation guidance at Introduction to TDRp whitepapers» Over 700 measures (70 for L&D)» More than 66 sample statements and reports» Guidance on implementation» Workshop, webinar and conference registration Contact Dave Vance for more information: DVance@CenterforTalentReporting.org 14

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