TDRp: Implementation Critical Success Factors

1. TDRp: Implementation Critical Success Factors David Vance, Executive Director Peggy Parskey, Assistant Director Center for Talent Reporting June 18, 2014

2. Logistics for Today’s Webinar • PowerPoint and Recording will be available to you afterwards • If calling from a phone, enter you PIN # if you want to be able to ask a question (necessary for us to unmute you) • Also, if at your computer and using a phone, select Telephone on the control panel • May also type a question in • We will take questions at the end Talent Development Reporting principles • CTR

3. Our Sponsors We want to thank the following sponsors for their support of the Center for Talent Reporting. FOUNDING ORGANIZATION FOUNDING GOLD SPONSOR FOUNDING SILVERSPONSORS Talent Development Reporting principles • CTR

4. Our Sponsors We want to thank the following sponsors for their support of the Center for Talent Reporting. FOUNDING BRONZESPONSORS Talent Development Reporting principles • CTR

5. Today’s Discussion • Three critical success factors • Engaged sponsors and stakeholders • Forecasting the expected impact on organizational goals • Communicating results throughout the year • Q&A Talent Development Reporting principles • CTR

6. Sponsor and Stakeholder Engagement Talent Development Reporting principles • CTR

7. Definitions: Sponsors and Stakeholders • Sponsors: officers directly accountable for achieving the business goal • Usually direct reports to the CEO at most one level further down • Examples: SVP of Sales, President of Manufacturing • Stakeholders: those with a direct interest in the outcome • Head of the HR function (e.g. the CLO) • Managers/staff in the HR function responsible for the initiative • Managers/staff in the client function (like Sales) responsible for the initiative • May include the SVP of HR Talent Development Reporting principles • CTR

8. Engage Sponsors and Stakeholders Early and Often • Sponsor • Up front to agree on role of HR initiative • If role exists, then agree on broad outline (scope), cost and impact • Identify stakeholders in sponsor organization • Agree on roles and responsibilities • Plan to update regularly • Client Stakeholder • Up front to discuss role of HR initiative • If role exists, then discuss broad outlines (scope), cost and impact • Plan to work closely with stakeholder managers and staff • Agree on deadlines • A good practice: document these agreements and share Talent Development Reporting principles • CTR

9. Forecasting (Planning) the Impact on Organization Goals Talent Development Reporting principles • CTR

10. Impact on Organization Goals • One of the most difficult aspects of TDRp • One of the most important if HR is to be a true business partner delivering bottom line value to the organization • Without it, how does anyone know… • If the initiative is worth doing? • What the target or plan should be for the initiative? • If the initiative was or was not successful? • Ideally, the impact will be the forecasted (or expected) isolated impact of the HR initiative on the company goal • May be quantitative or qualitative • Sometimes is a proxy or other measure of success Talent Development Reporting principles • CTR

11. Simple Outcome Statement for L&D 2014 2013 Talent Development Reporting principles • CTR

12. Plan the Meeting • Needs to be with the sponsor • Only the sponsor has the authority to make the forecast • May start with client stakeholder, but needs to be approved by sponsor • Start with “Friendlies” who are supportive and who are likely to get it • Set up appointment with sponsor to discuss expected results from HR initiative • 30-60 minutes • Staff may be present • Do not let sponsor delegate the meeting to manager Talent Development Reporting principles • CTR

13. How to Open the Discussion: Possible Opening “Thank you for your time today. We wanted to take a few minutes to discuss this important initiative we are planning to help you achieve your goal of 10% higher sales. We want to ensure we meet your expectations. We also want to ensure we make the best possible use of company resources. Let’s talk about the impact we can reasonably expect from this initiative and see if we can agree on some measures of success that we can hold ourselves accountable to. The plan is to provide training to …… to be completed by ….with the expectation that after the training your people will be able to…….. Now, let’s discuss the impact this training may have on the goal to increase sales by 10%? Talent Development Reporting principles • CTR

14. Methods to Assign Impact • Isolated Impact • Quantitative • What: Numerical impact of HR programs on the business goal • Why: Sets measureable expectation of HR’s contribution to the business • Qualitative • What: Non-numeric (e.g. High, Medium, Low) assessment of the impact of HR programs on a business goal • Why: Used when a numerical goal cannot be identified • Proxy measures • What: A substitute measure for impact that is considered a leading indicator or at least is highly correlated to the impact • Why: Used when a direct impact cannot be agreed upon. Talent Development Reporting principles • CTR

15. Note on Stating the Goal:Must be in Terms of the Delta • Delta as a % • Say the sales goal is to increase sales from $50M to $55M • Delta is $5M or 10% • State the goal as 10% increase in sales • Not as achieving sales of $55M • Delta as change in points • Say the goal is to improve employee engagement score from 71 to 75 • Delta is 4 points (4/71 =5.6%) • State the goal as a 4 point increase in engagement • Not as a 4% increase in engagement Talent Development Reporting principles • CTR

16. Agreeing on Quantitative Impact • Direct method • Reach agreement on the impact of the HR initiative without regard to the goal (good when goal is not explicitly stated) • For example, a 2% increase in sales due to training would be reasonable given the size of the target audience, time of completion, learning objectives, expected application rate, and nature of needs analysis • Percentage contribution method • Reach agreement on the percentage contribution of the HR initiative to the goal (delta). Then multiply the goal by the percentage contribution to get the agreed-upon isolated impact • For example, say the agreed-upon percentage contribution of training is 20% and the goal is a 10% increase in sales, then the isolated impact of training is 20% x 10% = 2% increase in sales due to training Talent Development Reporting principles • CTR

17. Example of the Percentage Contribution Method • The business goal is a 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 • This is a quantitative estimate of isolated impact Talent Development Reporting principles • CTR

18. Process to Help Sponsor Determine Percentage Contribution • Ask sponsor to list all factors contributing to achieving the goal • Now ask sponsor to prioritize the factors • Then ask sponsor to list the expected % contribution of each. Work the percentages until they add up to 100% • The percentage next to the HR initiative in question is what we are looking for. This is the expected isolated impact of the initiative on achieving the business goal. • Note that the expected impact came from the sponsor, not HR Talent Development Reporting principles • CTR

19. Reaching Agreement: An ExampleStart with list of drivers • Potential drivers to increase sales by 10% • Hiring five 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 Talent Development Reporting principles • CTR

20. Reaching Agreement: An ExamplePrioritize 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% Talent Development Reporting principles • CTR

21. Agreeing on Qualitative Impact • If impractical or impossible to get agreement on a quantitative impact measure, try for agreement on a qualitative impact like High, Medium, Low or Essential • “Essential” should be used sparingly. • Only where the mission could not be accomplished without the HR initiative • If the mission could be accomplished without the initiative, even though it may take longer and/or be more expensive, the initiative is not “Essential” • High • Medium • Low • Essential Talent Development Reporting principles • CTR

22. Process to Help Sponsor Determine Qualitative Impact • Begin with prioritized list of factors • Discuss the relative importance of each • Remember, the goal is to be roughly right • If there is one factor that is dominant (like a 50% or higher contribution), then label it “High Impact” • If the second factor is very important (like 30%-40% contribution), and considerably more important than the others, label it “Medium Impact” • If the second and third factors are very important, and about equal, then label them “Medium Impact” Talent Development Reporting principles • CTR

23. Process to Help Sponsor Determine Qualitative Impact (continued) • If no factor is dominant • If one factor is very important and considerably more important than the others, label it “Medium Impact” • If the first two or three factors are very important and about equal, label them “Medium Impact” • Label all the other factors “Low Impact” • Typically, you might have these combinations • H, M, L,L,L • H, M,M, L,L • M,M, L,L,L • L,L,L,L,L • Should not have more than one High and two Mediums Talent Development Reporting principles • CTR

24. Proxy Measures • Definition: An alternative choice of measure, used when a better measure is not available • How we use proxies every day • Example: Years of education • Cost-effective measure of competence. • Compared to other measures • Relatively easy to measure and verify • A decent proxy measure for a potentially wide range of basic competencies important at work • L&D Example: • Desired measure: Demonstrated application of training on the job • Proxy measure: Self report of % of training applied on the job • When should we use a proxy? • How do we determine the right proxy measure? • Proxy: related to the Latin word procuratia or procuratio, meaning substitute agent or authorized stand in. • A neighbor to the Latin word approximatus meaning, to draw near to or to be close to. Talent Development Reporting principles • CTR

25. Use of Proxies and Multiple Measures of Impact • Use a proxy when agreement cannot be reached on an isolated expected impact • Should be correlated with impact and ideally a leading indicator • Examples: • Application rate for an L&D or Leadership Development initiative • Number of performance coaching sessions for a performance management initiative • Start with higher level proxies • For L&D, choose L3 before choosing L2 • Include multiple measures when using proxies • Like Application rate plus Number of Participants • Or H/M/L plus Number of Participants Talent Development Reporting principles • CTR

26. Pros and Cons of Each Method to Assign Impact Talent Development Reporting principles • CTR

27. If Sponsor Will Not Help Forecast Impact • Then do it yourself • Follow same steps • Assign percentages • Or make a direct forecast of initiative’s impact • Share with Sponsor for feedback • His or her opportunity to disagree and correct the forecast • If sponsor will not provide feedback, then share your forecasted impact and assumptions with governing board, CEO and ask for their feedback. Talent Development Reporting principles • CTR

28. Communicating Results Through the Year Talent Development Reporting principles • CTR

29. Use Summary and Program Reports to Share YTD Results and Forecast • Check in regularly with sponsor and stakeholders • Ask: are they comfortable with planned forecast of impact? • If yes, continue to use planned % contribution to calculate YTD results • Example: Training will contribute 20% towards achieving goal of increasing sales 10% • For June YTD results, if sales are up 4%, then training’s contribution is 20% x 4% = .8% higher sales due to training • Show planned impact as forecast (2% higher sales due to training) • If no, then adjust up or down. • Example: Sponsor believes training is now likely to have smaller impact than planned. Say only 10% contribution instead of 20% • So, for June YTD results, if sales are up 4%, then training would be responsible for 10% x 4% = .4% higher sales due to training • And lower forecast accordingly to 1% • Use actual results if available (like an ROI study on the pilot) Talent Development Reporting principles • CTR

30. L&D Summary ReportQuantitative Version Talent Development Reporting principles • CTR

31. L&D Summary ReportQualitative Report 2014 2013 Talent Development Reporting principles • CTR

32. Program Report for L&D (Page 1) 2014 This section of the Program Report depicts the program goals agreed to with the sponsor Talent Development Reporting principles • CTR

33. Program Report for L&D (Page 2) Talent Development Reporting principles • CTR

34. Learn More Talent Development Reporting principles • CTR

35. Become a Member of theCenter for Talent Reporting • Benefits • Access to Enhanced Content on the website • Formulas and references for measures • Excel versions of sample statements and reports • Detailed implementation guidance • Members only page • Business acumen resources • $300 discount on workshops and conference • Priority for TDRp certification • Investment: Only $299 Talent Development Reporting principles • CTR

36. Accelerate Your Mastery • 2 ½ day workshops offered • Oct 20-22 Chicago • Public Webinars • Intro to TDRp (7/10,9/9,11/12) • Implementation CSFs (8/13,10/15) • Implementation Guidance (members only) (7/17, 8/14,9/24,10/16,11/20) • 2nd Annual TDRp conference planned for October 22-24 • Members Only Page • Certification • Individuals • Vendors providing software products employing TDRp • Accreditation • Organizations implementing TDRp • Consultancies providing services • Business Acumen Resources • Community of Practice for Members: to be implemented in July Talent Development Reporting principles • CTR

37. 2014 Conference • The premier event to extend your TDRp knowledge and network. • This year’s event: more speakers, sessions and networking opportunities. • We will highlight four case studies and include separate tracks for experienced TDRp-ers and newbies • Build your knowledge and capability by attending sessions on: • What CEOs want • Business acumen • Change management • Big data October 22 to 24, Chicago, Illinois Rosemont Hotel, Doubletree Visit our TDRp Conference microsite: ctrconference2014.com Talent Development Reporting principles • CTR

38. Visit us at: CenterforTalentReporting.org • White papers • Introduction to TDRp for L&D: Executive Brief (six pages) • Introduction to TDRp for L&D: Overview (20 pages) • Full White Paper (for L&D) (55 pages) • Introduction to TDRp (all processes) (20 pages) • Over 600 measures in total with definitions • Definitions of Terms and Measures for L&D (37 pages-members only) • Definitions, formulas, and references for members • Over 66 sample statements and reports (In excel for members) • Detailed written guidance • Sign up for email Talent Development Reporting principles • CTR

39. Contact Information • Dave Vance: Executive Director • Email: DVance@CenterForTalentReporting.org • Phone: 970.460.0837 • Peggy Parskey: Assistant Director • Email: PParskey@CenterForTalentReporting.org • Phone: 323.931.6589 • Andy Vance: Operations Director • Email: Avance@CenterforTalentReporting.org • Phone: 970.646.1843 @Center4TR Center for Talent Reporting or TDRp Talent Development Reporting principles • CTR