EFFICIENCY MEASUREMENT OF LIFELONG LEARNING

1. EMOLL EFFICIENCY MEASUREMENT OF LIFELONG LEARNING Rossitsa Milyankova With the support of the Life Long Learning Programme of the European Union

2. T R A I N I N G We plan and design this… New skills Results Development New skills T R A I N I N G T R A I N I N G New skills Results Results Development Time Time Learning organization and self-training Why Life-Long learning is significant for the organization? But we realize this…

3. Training Cycle (theory) Needs Analysis Understanding organizational context, objectives, trainees’ background Evaluation / Follow up Evaluating the performance and the follow up, preparing the next step Program customization Deciding trainer, content, modules, exercises, case studies, creating training tools, handouts Training Cycle efficiency measurement Training delivery Delivering the program with high Impact, being very responsive to the conditions in the group

4. Identify the mission and the strategy of the company Identify business objectives, considering the strategy and business plan Evaluate effectiveness and efficiency of training results Training Cycle in a company (reality) Assess roles and training needs of em- ployees to achieve identified objectives Measure results of training against business goals and objectives Create company’s and individuals’ learning plans Identify and deliver appropriate training

5. Kirkpatrik / Philips Model Kirkpatrik Philips Reaction to learning Learning, perception, contents Change in behaviour Business results Productivity increased Productivity before and after training Influence of productivity on profit Difference between profit and investments in training ROI Reaction to learning Satisfaction Knowledge received Skills developed Attitudes changed Change in work behaviour CRM Attitudes Results from work Change in results Organizational culture Organizational behaviour

6. TRAINING EVALUATION Philips Kirkpatrik efficiency Return on investments Change in production results Change in work process Effectiveness in learning effectiveness Satisfaction from learning Financial analysts Risk evaluation Manager Trainee

7. If I was a CEO I would like to know.. Investments in people development Measurements of efficiency and effectiveness of what HR does Major project/initiative tracking data Contributions to intangible growth Ability to recruit and retain talent Indicators of employee engagement

8. Developing a People Scorecard The scorecard is one way to bring together measurement of Business, People and HR measures in the same place and to create a variety of measures leading to informed managerial judgement

9. And People Scorecard will…. Drive behaviour Provide early indications of the performance of the business / project, not just those that will be reflected in the budget Create alignment towards business goals across the whole organisation Provide management with feedback/predictors on business performance Create a linkage between, organisation, team and individual performance

10. New approaches to measuring HR efficiencyBSC in a company – Focus and Change What is the direction What are the plans to attain the objectives Mission What are the factors for success Strategy How to measure organi-zational development Key Performance indicators Finance Customers Processes Learning & growth

11. BSC process – 7 steps Strategy, vision and mission Goals and objectives Market trends Change analysis Guiding principles Initiatives Scorecards and schedule Steps 1 to 5 – analytical and static Steps 6 and 7 – dynamic - action-result

12. Balanced Scorecards – translating strategy to operational terms Company’s strategy Financial prospective - if we succeed how we will look to our shareholders Customer prospective - to achieve the vision how we must look to our customers Internal prospective – at what processes must we excel to satisfy the customers Organizational learning – to achieve the vision how must the organization earn and improve

13. BSC as cascade targets and measures for effective performance management Vision and strategy Business goals Cascading to Business results Influencing Finance Department objectives Customers Individual objectives Continuous improvement Processes Training plans Organizational culture Learning and innovations Evaluation of performance

14. BSC – Cause and Effect Relationship-Strategy map Financial prospective Profit Productivity Income growth Clients prospective Product characteristics CRM Image Price/Quality/Time/Functionality Partnership Brand InternalProcesses Prospective Operations management CRM Innovations management Organizational culture management Learning and development prospective Organizational capital Human capital Information capital

15. Basic rules in BSC application We measure only things which can be described We evaluate only things which can be measured We manage only things which can be evaluated

16. Financial prospective • Measures how well the business function is meeting its financial objectives • Gives the final definition for success - the strategic objective of the company is creating financial value for the shareholders • Financial KPI’s are delayed in time – you see the financial problems long after they arise • The objective of the BSC system is to provide this not to happen

17. Financial KPI’s Objective: COST AGAINST BUDGET: • Actual departmental cost against budget (%) • Create … % surplus in production for the year Objective: SERVICE COSTS: • people cost out of total organizational cost (%) • average cost of training per employee (BGN) • absence cost per employee (BGN) • average recruitment cost: graduate/ experienced hire (BGN) • reduce purchasing cost with … % • create profit (%) which to invest in staff bonus system • Objective: EXTERNAL SUPPLIER: • External / internal HR / training spend ratio %

18. Customer prospective • Measures whether the business/ function is adding and creating value for the business and its customers • This prospective concerns customer satisfaction, and the growth and quality of the customer basis • This objective is a precondition for financial efficiency, because it is connected with the business • KPI’s are also delayed in time

19. Customer KPI’s Objective: EMPLOYEE RESPONSIVENESS: • % of employees that left the organization Objective: ORGANISATIONAL STRATEGY ALIGNMENT: • % of managers with customer focused smart objectives Objective: CUSTOMER CARE: • Increased market share to ….% of the total market • Increased customer satisfaction up to 95 % in 12 months time • Increased number of new customers to 100 per month by year end • Increase repeating customers to 50 per month by year end • % of received enquires resolved by employees /HR department • Number of compliants concerning HR department

20. Processes prospective Measures how well the business/function is managing risk and protecting its assets and measures the efficiency and effectiveness of the services provided by the function • Deals with the processes to create and present value proposition to customers • KPI’s differ very much between organizations depending of the specifics of its production • Objectives: production of new products, proper planning of all activities, well-timed delivery of raw materials and ready products, etc. • KPI’s for this prospective are leading for the company because they can easily find the problems and their objectives improve the parameters in the financial and customer’s prospective

21. Processes KPI’s Objective: TRAINING DELIVERY • Average number of training days per employee • Average number of developmental training days per employee • Average score on post-training feedback form Objective: PERFORMANCE MANAGEMENT: • Reduce time for attending internal and external customers with 3 hours per month • Reduce rework with 2 hours per month • Reduce sickness and absence rates by 10 % per week by year end Objective: REWARD MECHANISM: • % of bonus decisions agreed at first attempt Objective: EFFECTIVE MIS: • % information requests met by current MIS system Objective: RECRUITMENT: • Number of applications processed (Nr) • Average time to accept applications (min)

22. Learning and innovation prospective Measures whether the business/ function has in place the staff capability to support the needs of the business • KPI’s for this prospective are leading for the company because they can easily find and eliminate the problems and their objectives improve the parameters in the other three prospective

23. Learning and innovation KPI’s Objective: STAFF TURNOVER: • Diminish the voluntary termination rate (%) Objective: STAFF ABSENCE: • Diminish the total absence rate (%) Objective: STAFF MIX: • % or temporary workers / contractors to total staff Objective: STAFF COMPETENCE: • % staff with completed competence assessment • Design and implement 3 training activities to create …..leva income Objective: STAFF ROLES • % with brought up-to-date job descriptions • Roll out Customer Service training to all front line staff (target 95 % customer satisfaction) • Develop 4 new managers this year to run their own profit centers • Organize training to create 2 new profitable products by the end of the year Objective: STAFF OBJECTIVES: • % with clearly defined smart objectives • Objective: STAFF RECRUITMENT: • 96 % or all applicants accepting job after offer

24. ….and finally Measurement is not an end in itself, it is rather a means to inform and test strategy, to evaluate costs, to assess the impact of different actions