Using Talent Development Reporting Principles (TDRp) to Run Learning Like a Business 2013 Skillsoft Perspectives Orland

1. Using Talent Development Reporting Principles (TDRp) to Run Learning Like a Business2013 Skillsoft Perspectives Orlando May 13, 2013 Dave Vance, Executive Director, CTR Dawn Campbell Borland, TD Bank

2. Workshop Objectives At the conclusion of the workshop, you will be able to: • Articulate the principles of TDR and its benefits to your organization • Identify the type of measures you should gather in your organization to populate the statements and reports • Explain the Talent Development statements and reports and why each is important • Understand how the statements and reports can help you rum learning like a business • Appreciate the change that will be required to implement TDRp and run learning like a business • Get started! Skillsoft Perspectives

3. Agenda & Guidance • Overview • TDRp background and context • Running Talent like a business • Executive reporting framework • Break • The Specifics • Recommended measures • TDRp Statements & Reports • Managing the Change • Learn More • Wrap Up • Our guidance to you • Maintain an aspirational view • Think about what you can do in 2013 to make progress The perfect is the enemy of the good. --- Voltaire Skillsoft Perspectives

4. Interactive Introductions • Organization size (<100K employees, >100K employees) • Sector (Private, public) • Organization (L&D, HR, Business) • Role (Individual contributor, manager/director, senior leader) • Experience with Executive Reporting (yes, no) • # of L&D Employees (<250, >=250) • Structure of L&D (centralized, decentralized, hybrid) • Common Evaluation Platform (Yes, No) Skillsoft Perspectives

5. TDRp Background & Context Skillsoft Perspectives

6. Why TDRp? • Need for commonly-agreed upon standards for measuring, reporting, and managing human capital • Need to run talent like a business: deliver planned, agreed-upon results that help achieve company goals • Need to clearly show alignment and value of human capital initiatives • TDRp is as much about management as it is about measurement • Measurement, analysis and reporting are all means to the end • The end is effective, efficient management to deliver important outcomes Skillsoft Perspectives

7. Talent Development Reporting Principles (TDRp) • Bring standardization and consistency to talent development for • Internal reporting • Demonstrating the value of human capital • Running talent like a business • Answer the common questions • What to collect • How to define it • How to report it • What to do with it • Leveraging work done by others Skillsoft Perspectives

8. A Brief History of the Movement • 2010 • 2011 • 2012 • 2013+ • Development of TDRp for L&D • First whitepaper approved by Council • Presentation at Learning Analytics Symposium • Launched in Oct by Kent Barnett, CEO of Knowledge Advisors and Tamar Elkeles, VP of Learning & Communication at Qualcomm • Industry thought leaders engaged • Leading industry practitioners form Executive Council • Knowledge Advisors provides initial funding • TDRp extended to all key talent processes • Presented to over 1500 people • ASTD ICE and Singapore • Creation of Center for Talent Reporting (October) • New website goes live • Membership • Credentialing, Accreditation available • Workshops • Webinars • User group conference • SHRM/ANSI standard Skillsoft Perspectives

9. The Center for Talent Reporting:The Home of TDRp • Established October 2012 • Not-for-profit, 501c(6) organization (used for trade associations) • Funded by sponsors and members • Governed by nine-member Board of Directors • Including a Standards Committee to provide continued guidance on standards and reporting and an Advisory Council • Mission • Develop and implement reporting standards for human capital • Business model: Others to provide consulting and products Skillsoft Perspectives

10. Plans for 2013 • Two-day workshops offered in 2013 • Feb 14-15 Denver • Mar 27-27 Irvine • Jun 6-7 Alexandria, VA • Oct 15-16 Atlanta • Webinars offered monthly • Intro to TDRp • Implementation CSFs • Implementation Guidance (members only) • First TDRp conference planned for October 17 • Certification • Individuals • Vendors providing software products employing TDRp • Accreditation • Organizations implementing TDRp • Consultancies providing services • SHRM will establish a taskforce in 2013 to consider recommending TDRp for L&D as a SHRM/ANSI standard Skillsoft Perspectives

11. Sponsors We want to thank the following sponsors for their support of the Center for Talent Reporting. FOUNDING ORGANIZATION SILVER SPONSORS BRONZE SPONSORS Center For Talent Reporting www.centerfortalentreporting.org

12. Running HR (Talent) Like a Business Skillsoft Perspectives

13. First: Agree on Our Role • Why does the talent function exist? • Why do organizations invest in: • Learning and Development • Leadership Development • Capability Management • Performance Management • Talent Acquisition • Total Rewards Skillsoft Perspectives

14. First: Agree on Our Role • Help our organizations achieve their goals • More quickly • At lower cost • More effectively • Best accomplished by running HR like a business focusing on: • Outcomes (Are we doing the right things?) • Effectiveness (How well?) • Efficiency (How much and at what cost?) Skillsoft Perspectives

15. Four Steps to Run HR Like a Business • Identify the business goals • Align HR initiatives to business goals and plan the initiatives carefully • Execute and report with discipline • Measure and evaluate Skillsoft Perspectives

16. Step 1: Identify Business Goals • Proactive, strategic exercise • Meet with CEO or business unit leader • Learn about next year’s goals and priorities • Learn who the sponsors are • Results from Step 1 • List of CEO-prioritized SMART goals and sponsors • We need specific, measurable goals expressed in terms of change from the previous year • Example • The goal is to increase sales from $50M to $55M • Goal: Increase sales by $5M or 10% • The goal is to increase the employee engagement score from 60 points to 63 points • Goal: Increase engagement by 3 points (don’t say by 5% since some may interpret that to be 5 percentage points) Skillsoft Perspectives

17. Step 2: Align HR Initiatives to Business Goals; Plan the Initiatives Carefully • Meet with sponsors to understand • Business need in greater depth, the challenge, past success & failure • HR’s role (if any) • If HR has a role, agree with sponsor on • Specific initiatives, programs, systems, or processes • Target audience, location, completion dates • Number of participants • Roles and responsibilities for sponsor and HR • Measures of success: Expected impact of initiative on business goal • Expected impact of HR on business goal • This is the contribution of just the talent initiative(s) on the business goal • In L&D terms, it is the expected isolated impact of learning. In other words, it is a forecast of the level 4 (impact) • Our aim: a reasonable, roughly right forecast that is mutually agreed upon between the sponsor and HR. It needs to be “close enough” to help us make the right decision about whether the initiative is worth pursuing • Both parties need to own it Skillsoft Perspectives

18. Step 2: Align HR Initiatives to Business Goals; Plan the Initiatives Carefully • The business goal: 10% increase in sales for next year • L&D and the sponsor agree training could help achieve the 10% increase • Specific programs, target audiences, completion dates are agreed • What portion of the 10% increase might reasonably come from this agreed-upon program? • Perhaps 20%. • Then the expected isolated impact of sales training on the goal is 20% x 10% = 2% increase in sales due to training Skillsoft Perspectives

19. Step 2: Align HR Initiatives to Business Goals and Plan the Initiatives Carefully • Reach agreement on the expected isolated impact • Ask sponsor to list all drivers of higher sales • Now ask sponsor to prioritize the drivers • Then ask sponsor to list the expected % contribution of each. Work the percentages until they add up to 100% • The percentage next to the sales training initiative is what we are looking for. This is the expected isolated impact of training on achieving the business goal. • Note that the expected impact came from the sponsor, not HR • If impractical or impossible to get a % contribution, assign a High, Medium, or Low impact based on where the sales training fell in the prioritized list. • Or agree on a proxy for impact and success Skillsoft Perspectives

20. Step 2: Example of Impact Determination with Sponsor • Start with a list of drivers • Potential drivers to increase sales by 10% • Hiring two new salespeople • Growth in economy • Opening new sales office • New salesperson incentive system • New advertising campaign • Growth in market share due to new products • Failing competitor • New sales tracking system • Consultative sales and product features training Skillsoft Perspectives

21. Step 2: Example of Impact Determination with SponsorPrioritize and assign contribution % Notice that HR initiatives in total are expected to contribute 45% or almost half to the goal of increasing sales by 10% Prioritized list of drivers with percentage contribution to increase sales by 10% (These add to 100%) Prioritized list of drivers to increase sales by 10% Skillsoft Perspectives

22. Step 3: Execute and Report with Discipline • Manage your execution to deliver planned outcomes, effectiveness, and efficiency • Review progress monthly within HR • Year-to-date results versus plan • Will you make plan? • If not, what is the forecast? • What action should you take? • Review progress at least quarterly with CEO, senior leaders, sponsors • Focusing on most important business goals, key measures Skillsoft Perspectives

23. Step 4: Measure and Evaluate • Execute your measurement and evaluation strategy. • Did you achieve your goals? • If not, what can you learn? What can you improve? • If you exceeded goals, what can you learn? Skillsoft Perspectives

24. Review: Four Steps to Run HR Like a Business • Identify Business Goals • Align HR initiatives to business goals and plan it carefully • Execute and report with discipline • Measure and evaluate Skillsoft Perspectives

25. Our Experience in Running HR Like a Business • Conceptually not difficult • Challenging in practice • Requires new skills for some, confidence to apply them for others • Some common objections • No standards in place to provide guidance • No internal processes to support it • Not comfortable with business-like approach • TDRp can help Skillsoft Perspectives

26. Exercise • Turn to your neighbor • Identify 3 ways that you are running L&D like a business • Identify 3 areas where you need to improve your processes to more effectively run L&D like a business • Be prepared to share one idea with the group Skillsoft Perspectives

27. Executive Reporting Framework Skillsoft Perspectives

28. TDRp: Designed to Facilitate the Management of Human Capital • Alignment of human capital initiatives to organization goals • Upfront agreement on the expected impact and other measures of success • Monthly reports for management of initiatives and operations • Quarterly reports for the Department Heads (like the CLO), SVPHR, CEO to assess progress and manage to planned results • Focus on three types of measures: Outcomes, Effectiveness, Efficiency Skillsoft Perspectives

29. The Target Audience for TDRp Talent leaders and managers Those responsible for programs, people, and budgets SVP of HR, CLO, Head of Talent Acquisition, Heads of other talent processes (e.g leadership development, total rewards, capability management) Senior talent leaders Senior organizational leaders CEO, CFO, EVPs, SVPs, governing boards Different reports are required for different audiences Skillsoft Perspectives

30. Operational vs Executive Reporting Skillsoft Perspectives

31. Reports Are Designed to Answer: • What is the goal or plan? • Organization goal (e.g., 10% increase in sales) • Impact of initiative on it (e.g., 20% contribution or 2% increase in sales) • What key programs are planned to achieve it? • How are we doing? (Year-to-date results versus plan) • Are we going to make plan?(What is the forecast?) • Focus: Managing the function versus merely Presenting results Skillsoft Perspectives

32. The Four Assumptions • Primary purpose of human capital initiatives and processes: build organizational capability that enables the organization to achieve its goals or achieve its goals more quickly or at lower cost. • Human capital initiatives and processes should be aligned strategically to the goals of the organization • Business environment characterized by significant uncertainty; plans are made with the best information available. Waiting for absolute certainty and perfection is not an option. • Recommended reports and the underlying data will be used appropriately by competent, experienced leaders to manage the function to meet agreed-upon goals and to continuously improve. Skillsoft Perspectives

33. The Eight Principles • Employ concise and balanced measures reported in a consistent and clearly defined format • Produce and communicate Executive Reporting with a frequency and thoroughness to enable appropriate management of the function • Include actionable recommendations in all Executive Reporting • Maintain data integrity and completeness • Employ appropriate analytical methods • Provide the impact and value or benefit of programs and initiatives whenever appropriate • Capture and report the full costs of Talent • Support continuous improvement of executive reporting and the underlying data bases Skillsoft Perspectives

34. The TDRp Process • Use standard definitions to extract and convert data into three types of measures • Outcome • Effectiveness • Efficiency • Create three standard statements with these measures • Outcome • Effectiveness • Efficiency • Create three types of customized reports from these statements • Summary • Program (Initiative) • Operations Skillsoft Perspectives

35. Executive Reporting Focus: Standard Measures • Standard Measures: • Efficiency measures: How much? How many? At what cost? • Effectiveness measures: How well? • Outcome measures: What is the impact on the business? Reports Statements Program/ Initiative Analytics System Wide Analytics Standard Measures Specific methodology Systems and processes for organizing data, calculating measures Data Data Sources and Systems Skillsoft Perspectives

36. Executive Reporting Focus: Three Statements • Three Statements: • Outcome Statement • Effectiveness Statement • Efficiency Statement Reports Program/ Initiative Analytics System Wide Analytics Statements Standard Measures Specific methodology Systems and processes for organizing data, calculating measures Data Data Sources and Systems Skillsoft Perspectives

37. Executive Reporting Focus • Three Reports: • Summary Report • Program Report • Operations Report Reports Statements Program/ Initiative Analytics System Wide Analytics Standard Measures Specific methodology Systems and processes for organizing data, calculating measures Data Data Sources and Systems Skillsoft Perspectives

38. Executive Reporting Focus Summary Conclusions, Actionable Recommendations, Issues for Further Analysis Scope of TDRp Reports System Wide Analytics Statements Program/ Initiative Analytics Standard Measures Specific methodology (e.g. Phillips, Brinkerhoff) Systems and processes for organizing data, calculating measures Data Data Sources and Systems Skillsoft Perspectives

39. Executive Reporting Process Executive Reporting Process Senior Executives Talent Development Executives Executive Reports Talent Development Summary Report Quarterly Talent Development Program Report (s) Monthly Talent Development Operations Report (s) Monthly Outcome Statement Effectiveness Statement (s) Efficiency Statement (s) Statements Data Sets Guiding Principles Note: Data sets can be organized by processes and/or efficiency, effectiveness & outcomes Outcomes Effectiveness Efficiency Talent Development Processes Talent Acquisition Leadership Development Learning & Development Capability Management Performance Management Total Rewards Extract, convert and calculate Standard Measures Data Sources Financial Systems Non-Financial, non-TDR Systems Evaluation, EOS Systems Others: HRIS, LMS, CRM, ERP Skillsoft Perspectives

40. Recommended Measures Skillsoft Perspectives

41. Optimizing Outcomes MONITOR & REPORT SET LEARNING GOALS Talent Process Effectiveness Optimized Outcomes Efficiency Optimize Talent Processes IMPROVE ANALYZE

42. Categories of Success Measures • Effectiveness measures: Measures how well a task/process/function is performed • Efficiency measures: Measures the extent to which time or effort is well used for the intended task or purpose (e.g. output relative to the input) • Outcome measures: Measures the relationship and/or value of a program or activity to strategic business goals Skillsoft Perspectives

43. L&D Efficiency Measures These measures answer the questions: how much, when, how long? Skillsoft Perspectives

44. What Other Efficiency Measures Do You Use? Skillsoft Perspectives

45. L&D Effectiveness Measures These measures answer the questions: how well? Skillsoft Perspectives

46. What Other Effectiveness Measures Do You Use? Skillsoft Perspectives

47. Outcome Measures These measures answer the questions: what difference are we making? Skillsoft Perspectives

48. What Outcomes Do Your Programs Support? • Sales? • Productivity or cost reduction? • Quality or safety? • Compliance? • Engagement? Retention? Attraction? • Others? Skillsoft Perspectives

49. How Do You Determine What to Measure? • L&D outcome measures • Reflected in the top strategic goals of the company • Reflected in important operational goals supported by L&D • Are measured and reported by the business • Efficiency and effectiveness measures • Reflect the needs of L&D executives to manage the function efficiently and effectively in pursuit of • Company goals • Department goals • Are actionable • Provide insights Be open to new measures. Just because you haven’t measured something before doesn’t mean it’s not worth measuring Skillsoft Perspectives

50. Build a Measures Library • What is it? The single source of truth of your measures • Based on TDRp measures library and consistent with standard industry definitions • Can contain other measures relevant to your industry or company (particularly with respect to outcome measures) • Why is it important? • Ensures a common language • Creates accountability • Builds maturity • What’s in it? • The measure, type and definition • Criticality of the measure • Frequency of data collection/availability (e.g. monthly, quarterly, annually) • Source of data (system captured, manual) and data owner (organization or individual) • Ease of accessing the data (availability, security) • Quality of the data • Who owns it? • A standards body that maintains, updates and publishes the library Skillsoft Perspectives