David Vance Executive Director Peggy Parskey Assistant Director Talent Development Reporting...

• David Vance Executive Director• Peggy Parskey Assistant Director

Talent Development Reporting principles (TDRp):

A Webinar for Senior Leaders

January 20, 2015

2Logistics for Today’s Webinar

• PowerPoint and recording will be available to you afterwards

• If at your computer and using a phone, select Telephone on the control panel

• To ask a question during the webinar, please raise your hand and we will unmute you.

• If calling from a phone, enter you PIN # if you want to be able to ask a question (necessary for us to unmute you)

• We will take questions at the end, too» Can also type Question in Question box

Jan 21, 2015Talent Development Reporting principles • CTR

3Our Sponsors We want to thank the following sponsors for their support of the Center for Talent Reporting.

Talent Development Reporting principles • Center for Talent Reporting

SILVER SPONSORS

PLATINUM SPONSOR

Cigna and Skillsoft are Founding Silver Sponsors

4Our Sponsors We want to thank the following sponsors for their support of the Center for Talent Reporting.


BRONZE SPONSORS

ADP, Bellevue University Human Capital Lab, Development Dimensions International, McBassi & Company, ROI Institute, Skyline Group, and Tata Interactive Systems are Founding Bronze Sponsors

5Purpose of Today’s Webinar

• Provide a high-level overview of TDRp » Business principles, framework, measures, reports

• Make the case for TDRp» Help you decide if it would be helpful in your department

• Introduce you to the Center for Talent Reporting

• Answer your questions


6Agenda

• The Need for TDRp

• What TDRp Offers

• TDRp Measures

• TDRp Reports

• Conclusion


The Need for TDRp


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8The Current State

• We don’t speak the language of business and we don’t act like strategic business partners

• We are not having the impact we should and we struggle to demonstrate our worth.

• We don’t use standard management principles to plan and run our functions

• And we aren’t using standards for» Measures

» Reports

• A Lot of Opportunity!Talent Development Reporting principles • Center for Talent Reporting

Benefits of Standards

• Saves time» No need for every practitioner or organization to start from scratch

or spend time researching- Names and definitions of measures

- Types of reports (what to include?)

» No need for department head to train staff on how to manage HR- How to set plan

- How to create and use reports

» Eliminates (or reduces) time spent arguing over the above

• Most professions have standards» Language, analysis, reporting


9

What TDRp Offers

10


11Talent Development Reporting Principles (TDRp)

• Brings standards to HR for the management of human capital» Planning- Reaching agreement on measures of success

» Measurement

» Reporting

» Execution

• Mission: Improve & standardize the measurement, reporting, and management of human capital to increase business value


12Talent Development Reporting Principles (TDRp)

• 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)


1. Identify the business goals

2. Align L&D and HR initiatives to business goals and plan the initiatives carefully

3. Get upfront agreement with sponsor on expected impact

4. Execute and report with discipline

5. Measure and evaluate


TDRp Designed to Run HR with Business Discipline

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These are all standard business practices!

14What TDRp Offers

• Guidance for » Identifying organizational and department goals

» Aligning your initiatives to them

» Choosing the right measures

» Reaching agreement on a plan for expected impact

» Setting plans for effectiveness and efficiency measures

» Creating and using reports to manage

• Classification of measures into three types

• Standard names and definitions for measures» Built on work of ATD, SHRM, Fitz-enz, Higgins, others

• Three customizable management reportsTalent Development Reporting principles • Center for Talent Reporting

Executive Reporting Process 15Senior Executives Talent Development Executives

Executive Reports

Note: Measures can be organized by processes

and/or efficiency,

effectiveness & outcomes

Data Sources

Executive Reporting ProcessG

uid

ing

Prin

ciples

Financial Systems

Evaluation, EOS Systems

Non-Financial, non-TDR Systems

Others: HRIS, LMS, CRM, ERP

Outcomes Effectiveness Efficiency

Talent Development Summary Report

Quarterly

Talent Development Program Report (s)

Monthly

Talent Development Operations Report (s)

Monthly

Talent Development Processes

Talent Acquisition

Leadership Development

Learning & Development

Capability Management

Performance Management

Total Rewards

Extract, convert and calculate Standard Measures

Measures


The Measures


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17The Three Types of TDRp Measures

• 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 HR initiatives on organizational 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.


18Measures 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- 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

• Measures to monitor» Less important

» Typically involve more detail

» Reviewed as needed


Target the vital few

May have many

19Effectiveness Measures


Process Effectiveness Measures


Satisfaction, amount learned, application, impact

Talent Acquisition 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

Total Rewards High performers salary differential, compa ratio

20Efficiency Measures


Process Efficiency Measures


Number of participants, courses; utilization rate

Talent Acquisition 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 %

21Outcome Measures

• The impact of your initiatives on the organization’s goals» May be expressed quantitatively, qualitatively, or with a proxy

• Examples» Impact of HR on sales

» Impact of HR on employee engagement

» Application rate of training (as a proxy for impact of L&D)

• Bottom line, some measure of impact or success will be needed» All selected outcome measures will be managed

» Best practice: create a list with additional information


22Reaching Agreement on PlanA Key Focus of TDRp

• Any measure to be managed has to have a plan» This is the goal or target for the year

» This is what you an others will try to accomplish- You will have specific action items

- You will do your best in the face of uncertainties and unexpected events

» Your colleagues in other departments already do this

• Who sets the plan?» Enterprise-wide effectiveness and efficiency measures should be

set by the department head

» Plan for outcome and program-specific effectiveness and efficiency measures set by sponsor, program manager and department head


23Reaching Agreement on Plan for Outcome Measures

• Department head and program manager meet proactively with sponsor» Business discussion to understand goal, challenges

» Explore how HR can help

» If it can, then decide on- Specifics of initiative (what, where, when, how)

- Reasonable number to use as plan Both parties will own it

- Mutual roles and responsibilities to achieve plan

» Role of sponsor may vary, but is often larger than the sponsor thinks- Typically the case for L&D initiatives

- Hiring, new sales incentive plan, mentoring program for leaders


TDRp Reports


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25


The Reports

• Three levels of reports» Operations Report- For Department head

» Summary Report- For Department Head, SVPHR,

CEO, Governing Boards

» Program Report- For Program Manager,

Department Head, sometimes sponsor as well

• 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

26Reports 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 Reports, Operations Report, Program Reports

» Take management action as necessary to deliver plan

• Program Manager with team» Use Program Reports to manage program

» Prepare Program Report to be shared with Department Head

• Other meetings (Senior Leaders, Board of Governors, CEO)» Use Summary Report


27


The Operations Report

• Purpose: Manage Talent operations to deliver planned results for effectiveness and efficiency measures

• Audience: Department Head and direct reports

• Pulls all measures to be managed from the Efficiency and Effectiveness Lists

Effectiveness Efficiency

Operations Report

28Sample Operations Report for L&D


Home

2011 For 2012 Effectiveness Measures Actual Plan Jun YTD % Plan Forecast Level 1: Participant Feedback (All programs) % favorable 80% 85% 87% 102% 85% Level 1: Sponsor Feedback (Select programs) % favorable 75% 80% 77% 96% 78% Level 2: Learning (Select programs) Score 78% 85% 83% 98% 84% Level 3: Application rate (Select programs) % who applied it 61% 75% 78% 104% 79%

Level 4 (Select programs) % top two boxes 61.0% 75.0% 78.0% 104.0% 78% Level 5 (Select programs) Net benefits Thousands $ $546 $800 $345 43.1% $800 ROI % 29% 35% 32% 91.4% 33%

Efficiency Measures Course Management Total Developed Number 22 36 24 67% 35 Number Meeting Deadline Number 16 33 21 64% 33 % Meeting Deadline % 73% 92% 88% 95% 94% Total Delivered Number 143 178 167 94% 178 Number Meeting Deadline Number 89 160 139 87% 155 % Meeting Deadline % 62% 90% 83% 85% 87%

% of courses that are traditional classroom % 56% 43% 46% 107% 42% E-learning course utilization rate % taken by 20+ 83% 97% 91% 94% 97% % of employees reached by L&D % 85% 88% 72% 88%

L&D Expenditure Million $ $15.8 $20.2 $9.9 49% $20.2 Cost Reduction (internal to L&D) Thousand $ $63 $295 $168 57% $325

Sample Executive Operations ReportResults through June

Learning and Development

29The Summary Report


• Audience: Dept. Head, SVPHR, CEO, Governing Board

• Most significant managed measures from the effectiveness, efficiency and outcome lists aggregated at the highest level

• 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

Senior Business Executives

Talent Development Summary Report

Quarterly

Outcomes Effectiveness Efficiency


30L&D Summary Report Learning and Development

with Mixed Impacts

2011 For 2012 Impact of Learning and Development Initiatives Actual Plan Jun YTD % of Plan Forecast Revenue: Increase Sales by 20% Corporate Goal or Actual % 10% 20% 17% 85% 20% Impact of L&D Initiatives: 25% contribution to goal % 1% 5% 4% 80% 5%

Engagement: Increase Engagement Score by 3 Points to 69.4% (1) Corporate Goal or Actual Points 1 pt 3 pts 1.9 pts 63% 3 pts Impact of L&D Initiatives: Low Impact on goal H/M/L Low Low Low Low

Safety: Reduce Injuries by 20% Corporate Goal or Actual % 10% 20% 15% 75% 20% Impact of L&D Initiatives: 70% contribution to goal % 5% 14% 11% 75% 14%

Costs: Reduce Operating Expenses by 15% Corporate Goal or Actual % 5% 15% 10% 67% 18% Impact of L&D Initiatives: Medium Impact on goal H/M/L Low Medium Medium Medium

Retention: Improve Retention of Top Performers by 5 Points to 90% Corporate Goal or Actual Points -3 pts 5 pts 2 pts 67% 5 pts Impact of L&D Initiatives None planned

Call Center Satisfaction: Improve Satisfaction Score by 4 Points to 80% Corporate Goal or Actual Points 1.6 pts 4 pts 2.9 pts 73% 4 pts Application of Key Behaviors % 84% 95% 91% 96% 95% Number trained Number 40 40 24 60% 40

Sample Summary Report for the Private Sector

Results through June


31L&D Summary Report (continued)

2011 For 2012 Effectiveness Actual Plan Jun YTD % of Plan Forecast Participant Feedback % favorable 78% 84% 85% 101% 85% Sponsor Feedback % favorable 75% 80% 77% 96% 78% Learning Score 78% 85% 83% 98% 84% Application rate % who applied it 61% 75% 78% 104% 79%

Efficiency Percentage of employees reached by L&D % 85% 88% 72% 82% 88% Percentageof ee's with development plan % 82% 98% 95% 97% 96% Percentageof courses developed on time % 73% 92% 88% 95% 90% Percentage of courses delivered on time % 62% 90% 83% 85% 87%

L&D Investment L&D Expenditure Million $ $15.8 $20.2 $9.9 49% $20.2 Opportunity Cost Million $ $3.4 $2.9 $1.3 45% $2.9 Cost Reduction (internal to L&D) Thousand $ $63 $295 $168 57% $325

32


The Program Report

• Purpose: Manage key programs to deliver planned outcomes

• Audience: Program manager, Dept. Head, sometimes the sponsor as well

• Generated for each major Talent program» Includes measures necessary for

senior talent leaders and managers to manage program, initiative, or process results on a monthly basis.

» Typically includes outcome measures relevant to the program and the key effectiveness and efficiency measures.

Senior Talent Executives

Talent Development Program Report

Monthly

OutcomeStatement

EffectivenessStatement (s)

Outcomes EfficiencyEffectiveness

Sample Program Report for L&DPrograms in Support of the Goal to Reduce Injuries


33

Results through June

Sponsor: Swilthe, VP of Manufacturing

2011 2012 YTD as Forecast asMetric Actual Plan YTD % of Plan Forecast % of Plan

Enterprise Goal: Reduce Injuries % 12% 30% 20% 67% 30% 100%

Expected Impact of Learning: H/M/L Medium High High Below Plan High On Plan

2011 2012 YTD as Forecast asPrograms to Reduce Injuries Metric Actual Plan YTD % of Plan Forecast % of Plan

1 Deliver Phase 1 Courses for Factory A Effectiveness measures Level 1: Participants % 70% 80% 85% 106% 82% 103%

Sponsor % 75% 90% 88% 98% 88% 98%

Level 2: Test score % 86% 90% 95% 106% 92% 102%

Level 3: Application rate % 53% 65% 62% 95% 63% 97%

Efficiency measures Unique Participants Number 452 3,000 2,800 93% 3,200 107%

Total Participants Number 858 6,000 5,542 92% 6,300 105%

2 Develop Phase 2 Courses for Factory B Efficiency measure: Complete by 5/30 Number NA 3 3 100% 3 100%

Effectiveness measure: Sponsor Satisfaction % NA 90% 90% 100% 90% 100%

3 Deliver Phase 2 Courses for Factory A Effectiveness measures Level 1: Participants % NA 80% 80% 100% 82% 103%

Sponsor % NA 90% 90% 100% 88% 98%

Level 2: Test score % NA 90% 92% 102% 90% 100%

Level 3: Application rate % NA 70% 61% 87% 65% 93%

Efficiency measures Unique Participants Number NA 1,000 100 10% 1,100 110%

Total Participants Number NA 3,000 284 9% 3,200 107%

SummaryTotal Courses Developed Number 1 3 3 100% 3 100%

Unique Participants Number 452 4,000 2,900 73% 4,300 108%

Total Participants Number 858 9,000 5,826 65% 9,500 106%

Cost (not including opportunity cost) Thousand $ $37 $250 $178 71% $255 102%

Conclusion


34

35Key Take-Aways

• TDRp is not just about measures or a measurement strategy

• It is about changing the conversation and the role of L&D and HR» Proactive discussions with sponsors and senior leaders

» Upfront agreement with sponsor on expected impact

» Department Heads set a plan or goal for key measures

» Create a business plan for the department with specific, measurable goals

» Execute with discipline monthly. Be accountable

• It is about the process of managing the business.


36Adopting TDRp: Start From Where You Are


1. Use TDRp for its library of measures and definitions

7. Use the principles and reports of TDRp to run L&D and HR like a business

2. Adopt the framework of outcome, effectiveness, and efficiency measures

3. Create effectiveness and efficiency lists and decide which measures to manage versus monitor

4. Create the Operations Report by adding plan and forecast for effectiveness and efficiency measures

5. Create the outcome measures list with input from senior leaders

6. Create the Summary and Programs ReportsShows Alignment and Impact

1

5

4

3

2

7

6

37Is TDRp Right for You?

• Yes, if you believe» L&D and HR should be run with business-like discipline meaning- L&D and HR initiatives should be proactively aligned to your company’s

goals

- Plans are set with SMART goals for outcome, efficiency, and effectiveness measures

- Managers should be accountable for delivering planned results

» Standards would benefit the industry and make your job easier

» The TDR principles, framework, and measures make sense

• And if you are willing to dedicate your personal leadership to implementing TDRp» You are the critical success factor


38Your Role in Implementing TDRp

• Be the champion and project leader» Should be in your performance goals and those of your direct

reports (You cannot delegate leadership for this)

• Provide the necessary resources and guidance

• Set SMART goals for your department’s effectiveness and efficiency measures

• Meet with the CEO to learn next year’s goals and then with sponsors to reach agreement on plan for outcome measures

• Use the reports in dedicated monthly meetings to manage the function


39


The Center for Talent Reporting:The Home of TDRp

• Established October 2012» Not-for-profit, 501c(6)

organization (used for trade associations)

• Mission» Improve and standardize the

measurement, reporting, and management of human capital to deliver significant business value- Improve the business acumen

of L&D and HR professionals

• Governance» Nine-member Board of

Directors

» Standards Committee to provide continued guidance on standards and reporting

» Advisory Council

• Funding: Sponsors, members, revenue from workshops and coaching

Opportunities for Your Staff to Learn More

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• Public Webinars » Intro to TDRp (3/10)

» Senior Leaders (3/24) NEW

» Website Tour (3/26) NEW

• Members Only Webinars» Implementation CSFs (2/11) REVISED

» Implementation Guidance (2/18) REVISED

» What’s New in 2015 (1/27) NEW

» Accounting Basics (2/17) NEW

» Financial Acumen (3/23) NEW

» Planning, Estimating, and Forecasting (4/21) NEW

» Data Gathering Considerations (2/12) NEW

» The Six HR Processes (3/12) NEW

• TDRp Basics Workshops » April 8-9 Atlanta

» Virtual May 7- June 4 for those outside NA

• Custom workshops and coaching available» 1 or 2-day workshops on site NEW

• Certification» Individuals

» Vendors providing software products employing TDRp

• Business Acumen Resources

• Community of Practice for Members


41Learn More

• Visit www.CenterforTalentReporting.org for:» Introduction to TDRp whitepapers

» Library of 600 measures (70 for L&D)

» 70+ sample statements and reports

» Implementation guidance

» Explore benefits of membership

» Individual and organizational membership information

» Workshop, webinar and conference registration

• Contact Dave Vance for more information: [email protected]

http://www.centerfortalentreporting.org/

mailto:[email protected]

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David Vance Executive Director Peggy Parskey Assistant Director Talent Development Reporting...

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