chapter 1 · an introduction to talent development reporting principles (tdrp) atd/shrm nashville...

11/1/2016

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Running L&D and

HR Like a Business: An Introduction to

Talent Development

Reporting Principles

(TDRp)

ATD/SHRM Nashville

October 27, 2016

David VanceExecutive Director

Today’s Discussion 2

5-October-2016Center For Talent Reporting www.centerfortalentreporting.org

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?

• Planning carefully» Strategic alignment

» Specific, measurable goals

• Executing the plan with discipline» Regular monthly meetings

» Using standard reports


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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


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Talent Development Reporting

Principles (TDRp) Framework

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Principles (TDRp)

• 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

Center For Talent Reporting www.centerfortalentreporting.org

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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)


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TDRp Designed to Run L&D and HR

with Business-like Discipline

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


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What TDRp Offers

• 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


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The Target Audience for TDRp

• 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


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Closer Look at Alignment

and Goal Setting

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Strategic Alignment

• 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


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Example of Alignment to Business

Goals for L&D Initiatives


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Unit of 2016 2017

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%


Impact of L&D Initiatives: High Impact on goal % Medium High

Safety programs to address top five causes of injuries

Costs: Reduce Operating Expenses by 15%


Impact of L&D Initiatives: Medium Impact on goal H/M/L Low Medium

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


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Unit of 2016 2017

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

• 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


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TDRp Measures

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The Three Standard Measures 17

Data Sources and Systems

Systems and processes for

organizing data, calculating

measures

Specific methodology (e.g.

Phillips, Brinkerhoff)

Statements

Standard Measures

Data

Reports

System Wide

Analytics

Program/ Initiative

Analytics

Standard Measures:

• Efficiency measures: How much? How many? At what cost?

• Effectiveness measures: How well?

• Outcome measures: What is the impact on the business?


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.


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Effectiveness Measures

Process Effectiveness Measures

Learning &

Development

Satisfaction, amount learned, application, impact

Talent Acquisition Quality of hire, hiring process effectiveness

Leadership

Development

Bench strength, Succession planning success rate

Performance

Management

% of employees with improved ratings, % of employees

with rating turnaround

Capability

Management

% of employees with career discussion, % career

movement, % of positions with ready replacement

Total Rewards High performers salary differential, compa ratio


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5-October-2016

Efficiency Measures

Process Efficiency Measures

Learning &

Development

Number of participants, courses; utilization rate

Talent Acquisition Number of internal/external hires, acceptance rate, time to

start

Leadership

Development

Span of control, tenure, % of positions filled internally

Performance

Management

Number of performance discussions, % of employees with

goals, % of employees with performance reviews

Capability

Management

Number of promotions, number of transfers, average time in

position

Total Rewards Average benefit cost, variable compensation %


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Outcome Measures

• 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


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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

- 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

Center for Talent Reporting

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TDRp Reports

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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

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Reports Designed to be used in Monthly

Meetings to Manage/Share Results

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• 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

Executive Reporting Focus 26

Data Sources /Systems

Systems and

processes for

organizing

data,

calculating

measures

Specific

methodology

(e.g. Phillips,

Brinkerhoff)

Reports

System Wide

Analytics

Program/ Initiative

Analytics


Summary Conclusions, Actionable

Recommendations, Issues for Further Analysis

Scope of

TDRp

Measures

Executive Reporting Process 27Senior Executives Talent Development Executives

Executive

Reports

Note:

Measures can

be organized

by processes

and/or

efficiency,

effectiveness

& outcomes

Data

Sources

Measurement and Reporting Process

Gu

idin

g P

rinc

iple

s

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


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The Program Report 28


• Purpose: Manage key programs to

deliver planned results

• Audience: Program Managers and

Department Head

• 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.

Senior Talent Executives

Talent Development

Program Report

Monthly


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


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5-October-2016

Results through June

YTD Forecast

2016 2017 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 for 2017 % High High Below Plan Near Plan

YTD Forecast

2016 2017 YTD Compared Compared

Programs to Reduce Injuries Metric Actual Plan Results to Plan Forecast to Plan

Develop Two Courses

Efficiency measure: Complete by 1/31 Number NA 2 2 100% 2 100%

Deliver Two Courses

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%

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

• Audience: Department Heads

and managers

• Pulls key measures to be

managed from the Efficiency

and Effectiveness Lists

Effectiveness Efficiency

Operations

Report

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Sample Operations Report for Talent

Acquisition


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2016

Effectiveness Measures Actual Plan Jun YTD % Plan Forecast

Quality of Hire

Supervisor New Hire Satisfaction Rating % Top two boxes 68% 80% 78% 2% below 80%

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%

For 2017

Sample Operations Report (continued)


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2016

Actual Plan 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 $19.4 98% $19.3

Internal Cost per Hire Thousand $ $11.8 $6.0 $8.1 135% $5.0

External Cost per Hire Thousand $ $32.3 $21.9 $20.6 94% $21.8

Hiring Activity

Total Hires Number 195 370 313 85% 400

Internal Hires Number 34 50 32 64% 60

External Hires Number 161 320 281 88% 340

External Offer Acceptance Rate % 60% 70% 63% 90% 66%

Cycle Time

Time to Fill Days 93 80 85 107% 80

Internal Time to Fill Days 52 45 48 107% 46

External Time to Fill Days 102 85 89 105% 86

For 2017

Sample Operations Report for L&D


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Sample Operations Report for L&D Results through June

For 2016

2015 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

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Sample Operations Report for L&D (continued)


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For 2016

2015 Comparison Comparison

Efficiency Measures Unit of Measure Actual Plan Jun YTD to Plan Forecast to Plan

Total Participants Number 109,618 147,500 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 60 74 65 88% 70 95%

Taken by more than 20 Number 50 70 19 27% 55 79%

% taken by more than 20 % 83% 95% 29% 66% below 79% 16% below

Reach

% of employee reached by L&D % 85% 88% 72% 16% below 88% on plan

% of employees with development plans % % 82% 85% 84% 1% below 90% 5% above

Course Management

Total Developed Number 22 36 18 50% 36 100%

Number Meeting Deadline Number 16 33 12 36% 28 85%

% Meeting Deadline % 73% 92% 67% 25% below 78% 14% below

Total Delivered Number 143 178 99 56% 180 101%

Bringing it All Together: The

Summary Report

35


• Audience: Senior business and

HR executives, CLO

• Most significant 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


L&D Summary Report


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5-October-2016

For 2017

Unit of 2016 2017 Forecast as

Business Goals and Supporting L&D Programs Measure Actual Plan Jun YTD % of Plan Forecast % of Plan

Revenue: Increase Sales by 20%

Corporate Goal or Actual % 10% 20% 17% 3% below 20% on plan

Impact of L&D Initiatives: Medium Impact on goal % Low Medium 4% 1% below 5% on plan

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: High Impact on goal % Medium High 10% 4% below 14% on plan

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: Medium Impact on goal H/M/L Low Medium 3% 2% below 6% 1% above

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 % who applied them 84% 95% 80% 15% below 90% 5% below

Design skills for engineers to improve manufactuarability

Sourcing training for purchasing toreduce purchased defects

Cell leader training to ensure manufacturing to specifications

Results through June

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L&D Summary Report (continued)


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5-October-2016

For 2016

Unit of 2016 Forecast as

HR Goals and Supporting L&D Programs Measure Actual Plan Jun YTD % of Plan Forecast % of Plan

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% 5,000 100% % Courses Meeting Deadline for Development % 71% 100% 88% 12% below 88% 12% below

% Courses Meeting Deadline for Delivery % 65% 100% 85% 15% below 87% 13% below

Learning management system Complaints Number 214 107 45 42% 80 75%

Summary

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TDR Designed to Meet Your

Reporting and Management Needs

• 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


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TDRp Take Aways

• 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


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Learn More about TDRP

• Learn more and get implementation guidance at

www.CenterforTalentReporting.org

» 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:

[email protected]


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http://www.centerfortalentreporting.org/

mailto:[email protected]

chapter 1 · an introduction to talent development reporting principles (tdrp) atd/shrm nashville...

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