staples measuring the value of learning. more pressure to demonstrate value

Staples

Measuring the Value of Learning

More Pressure to Demonstrate Value

Adding New Measurement Capabilities

Learning Diagnostics

SKPI Name

Acronym

Unit of Measure Algorithm / Measurement Method

Source Data

Learning Market Share

LMSh Percentage of organization’s total L&D market

Percentage of L&D budget managed or influenced by L&D/Total L&D budget

Enterprise and BU Operating Budgets

Partner Management Efficiency

PME Percentage reflecting partner usage and degree of redundancy across partner programs

Total number of --

Total number of / Total number of duplicate ---

LMS data and purchasing contracts

Purchasing contracts and learning program details

Back Office Efficiency

BOE Transaction costs Total cost for --- / Total number of --- a given time period

Training costs associated with back office operations and LMS data

Learning Alignment Index

LAI Number of programs Number of programs required by --s / number of programs targeted to strategic initiatives

Portfolio management process

Solution Design Effectiveness

SDE Variable number Satisfaction score plus learning -- BU sponsor satisfaction surveyLevel 3 assessmentsPortfolio return rate

Enterprise Technology Effectiveness

ETE Percentage of technology usage

Factor representing optimal use of -- / Actual use--

Use of technology in blended learning

New Class of Learning Metrics

CONFIDENTIAL – FOR USE AT CU WEEK ONLY

Measuring the Value of Learning

Kelly ArchyNancy PerssonRay Stevens

Corporate University Xchange: Best Practice Presentation

7CONFIDENTIAL – FOR USE AT TRAINING 2008 ONLYMeasuring the Value of Learning

Plan for the hour

What are your measurement challenges?

Measurement at Staples

3 Examples:

• US Retail

• North American Delivery

• Corporate

Your take-aways or best practices

Q & A


Poll: What is your primary Measurement Challenge?

• Isolating training as a factor

• Calculating ROI in hard savings/contribution

• Time/resources to evaluate

• Accurately capturing all training costs

• Business moves/changes so quickly


Who are we? Staples

• Brand Promise: We make buying office products easy

• International operations in 23 countries: • (US, Canada, UK, Germany, Netherlands, Portugal, France, Italy,

Belgium, Spain, Sweden, Austria, Denmark, Switzerland, Poland, Hungary, Czech Republic, Luxembourg, China, Argentina, Brazil, India, Taiwan)

• Annual sales: $19+ billion

• Shopping channels:

• Associates: 76,000 worldwide• Stores, distribution and fulfillment centers, call centers,

regional sales offices, home office


Who are we? Staples University

• Learning brand and structure serving associates in US Stores, North American Delivery, and Corporate functions

• SU Mission: Learn, Innovate, Succeed, Repeat

• Leadership curriculum serves leaders enterprise-wide

• Total Staples U curriculum comprises more than 250 programs providing job skills, management development, service and selling skills, technical training, and leadership development

• In 2008, Staples U celebrates our 10th anniversary!

Corporate Team:

•Leadership & Org Development

•Staples U Corporate

•Design and delivery accountability

17 total associates,Including mgt.

US Retail Team:

•Program Design•Delivery

accountability9 total associates,

Including mgt.

NAD Team:•Delivery of sales

& corporate curriculum

•Customer Service•Logistics•Telesales47 total associates,

Including mgt.

Staples U Structure


Measuring Learning at Staples

We measure when it’s aligned with a business goal, and will make a difference in driving performance.

Measurements tie directly to company objectives and help us drive and shape our learning and development initiatives.

Performance improvement efforts focus on critical business priorities:• Drive profitable growth

• Deliver industry leading service

• Differentiate our brand

• Demonstrate market leadership

• Demonstrate our strong corporate values

As a result, our measurement focuses heavily on:• Impacting sales and/or expenses

• Impacting the customer’s experience

• Impacting associate development and retention


Retail: US Stores Training Curriculum

• On-boarding

• Sales & Service Training

• Product Knowledge Training

• Machines, Systems and Technical Training

• Management Development


Retail Example: Product Knowledge

Product &

ServicesTraining

Completion

KnowledgeableAssociates

(CSAT)

Overall Customer

Satisfaction

Operating Profit

Top Line Sales

☼☼ Change of Focus from Transactional Change of Focus from Transactional toto Transformational Transformational ☼☼


Product & Services Training Completion

Product & Services Knowledge – Training Completion

• Visibility to stores with current completions

• Visibility to overall training metrics on a balanced scorecard

Associate comfort level – E-learning product knowledge Survey

• 97% agreed that the training helps them do their jobs better

• 96% agreed that they are more likely to sell or recommend the products featured in the training

• 96% believe that the training has increased their sales performance


Poll: Customer Satisfaction: What is the top attribute our customers are looking for?

• Competitive prices

• Courteous and respectful associates

• Quality of office supplies

• Hassle-free returns

• Knowledgeable associates


Customer Satisfaction – Courteous & Respectful and Knowledgeable Associates

80%

81%

82%

83%

84%

84%

84%

85%

90%

92%Courteous and respectful associates

Knowledgeable associates

Easy to use website

Hassle-free returns

Products out on display

In stock toner or printer cartridges

Wide assortment of office supplies

Quality of office supplies

In stock advertised items

Associates know where products are

Top Attribute RankingsAll

Providers

Total Performance

Gap

62% (30%)

51% (39%)

46% (39%)

60% (24%)

N/A ---

57% (27%)

72% (11%)

68% (14%)

66% (15%)

53% (27%)


Product Knowledge – Top Line Sales & Operating Profit

Top Line Sales• ROI Study

• 30% increase in sales for a featured product over a 5 week period.

• 20% maintained lift over 9 weeks.

Control Group Test• Isolated the test to show only the product knowledge training impact

• Results showed an 8.4% per store, per week increase in sales with product knowledge training

Operating Profit – Associate Satisfaction improves turnover

• Highly Satisfied Associates have lower levels of turnover which improves service delivery to Customers.

• Increases Employee skill levels (i.e., “Learning by Doing” effect)

• Highly Satisfied Associates are more motivated to provide excellent service


Training Measurement

Product Knowledge

Customer Satisfaction

Increased Sales & Profits

+

=


North American Delivery

SNA:Fortune 500

SBA:20 employees

or more

10 - 100 employees

Medical practitioners

1- 19 employees and home office

Contract & Contract & StaplesLink.comStaplesLink.com

Staples Business DeliveryStaples Business Delivery(Catalog & Staples.com)(Catalog & Staples.com)

Quill, Quill.com & Quill, Quill.com & Medical Arts PressMedical Arts Press


SBA Training

• New Hire Orientation

• “Staples Way” Selling Skills

• Management Training (for high-potentials)

• District Sales Manager Training (Phases I & II)

• Leadership Challenge

• Training conducted by Management Trainers and Regional Coaches


Staples Way

• Prospecting and creating a “pipeline”

• Approaching customers

• Mailers

• Calls

• At the customer meeting:

• Setting expectations

• Determining customer needs

• Closing & support



• Leadership intuitively supports training efforts

• Annual Sales Meetings

• Regional Meetings

• Leadership Meetings

• Integrated training part of all new launches

• Software

• Technology, Furniture, Copy/Print Selling



Differentiated Selling Model

Perfect Order Execution

Strong Acquisition & Retention

+

=



$0

$1

$2

$3

$4

$5

$6

$7

NAD AnnualSales (B)


Staples Business DeliveryTelesales

$58

$60

$62

$64

$66

$68

$70

$72

$74

FY '05 FY '06 FY '07

Cost Per Associate (Thousands)

0

2

4

6

8

10

12

FY '05 FY '06 FY '07

Training & Coaching Staff


North American Delivery Industry Position

0%

2%

4%

6%

8%

10%

12%

14%

-5% 0% 5% 10% 15%2007 Sales Growth

2007 O

pera

ting M

arg

in

Staples

A

$6.6B$6.6B

$4.8B$4.8B

C

$4.1$4.1BB$4.5$4.5

BB

B


Corporate Training Curriculum

• Management Development

• Leadership Development

• Professional Development

• Functional/Technical skills

• Process Excellence program support

• Customized design and delivery


Corporate Example: Process Excellence

• Staples’ Lean/Six Sigma initiative; goal is to develop and deploy a large rotating pool of Black Belts.

• Aligns with corporate goals of best execution and increasing effectiveness/reducing costs

• Training includes Black Belts, Green Belts and Red Belts: the Staples Brand of the junior level of practitioner.

• All Belts are trained in value-based processes.

IdentifyBusiness

Unit Objectives

IdentifyProject

Opportunities

ScreenInitial List

OfOpportunities

Scope andDefine

Projects

PrioritizeList of

DefinedProjects

130 + Projects!Savings exceeding $42,000,000



Best Practices

Consistent Execution

Bottom Line Savings

+

=


Our Favorite Metric

Dear Staples,

I write to offer my “Thanks” to you and your employee, Erin Day, for the extraordinary effort

you both made to help me in a time of very real frustration. In early October I purchased an HP Office

Jet 6310 All-in-One device in your store and it “crashed” after only four weeks’ use. To HP’s credit, they

immediately offered to replace the machine free of charge, but couldn’t guarantee delivery any faster

than 10 days, which would leave me without a printer, copier, fax, or scanning capability for an

unacceptable period of time. I found myself tempted to buy another machine, then hope I could

somehow sell it or the replacement, but realized that might have less-then-desirable implications for

warranties, etc.

Finding myself in Kokomo, I stopped in your store to inquire about Staples perhaps being

able to influence HP to “hurry up” its processes and ship sooner. I was standing next to the display

model 6310 when Erin Day met me, listened to my problem, asked me to wait for a moment while she

talked to her manager, then returned and told me I should take the display model, with the promise

that I would return it when my replacement from HP arrived. I was almost speechless. It was so easy.

She took my name and telephone number, wrote a note for the file, unplugged the machine, put it in

my arms, and wished me a nice day. And when I returned your machine a couple days ago, she

recognized me, took the machine off my hands and, again, wished me a nice day.

In today’s mass merchandising environment where practically everything is a throw-away

and local store employees are often powerless, we simply do not experience that kind of service-

oriented customer satisfaction effort-ever. Please know that I truly do appreciate Erin’s effort and your

confidence in your customer.

Very truly yours…..

David L. Voris,

DLVoris Executive Services


Questions?

staples measuring the value of learning. more pressure to demonstrate value

Documents

value of learning slide

value slide

learning diagnostics

value of learning poll

value of learning plan

use of technology

learning program details

home office slide