McLean & Company1 McLean & Company is a research and advisory firm that provides practical solutions to human resources challenges with executable research, tools, and advice that will have a clear and measurable impact on your business. © McLean & Company. McLean & Company is a division of Info-Tech Research Group Inc. Formalize a Learning & Development Strategy Ensure your Learning & Development activities are providing value by delivering on organizational goals. McLean & Company is a research and advisory firm providing practical solutions to human resources challenges via executable research, tools and advice that have a clear and measurable impact on your business. © McLean & Company. McLean & Company is a division of Info-Tech Research Group

McLean & Company22 This Research is Designed For:This Research Will Help You:This Research Is Designed For:This Research Will Help You: Many organizations do not use a strategic approach to Learning & Development (L&D) and fail to achieve desired results The Head of HR. The HR Director of Learning & Development. Understand the value of having an L&D strategy. Determine your future vision for the L&D function and ensure that it aligns with the organizational direction. Assess the current state of L&D and prioritize needs to be addressed. Develop L&D strategic priorities, initiatives, and timelines. Communicate and evaluate the L&D strategy. Executives with a vested interest in Learning & Development and strategy creation. Understand the value of Learning & Development. Gain guidance for strategy creation. This Research Will Assist:This Research Will Help You:This Research Will Also Assist:This Research Will Help Them:

McLean & Company33 Situation ! McLean & Co. Insight A well developed L&D strategy is crucial for effective L&D initiatives, and an engaged and productive workforce In both the 2014 and 2015 McLean & Company Trends Surveys, Learning & Development topped the list of projected spending. An effective L&D program can significantly impact the organization and its ability to deliver on business goals. When L&D is done well, overall engagement increases, which impacts employee performance positively. However, L&D programs often fail to deliver on their intended objectives. Even though L&D has been at the top of projected HR spending, according to the McLean & Company HR Trends and Priorities for 2015 Survey, only 30% of non-HR respondents and 36% of HR respondents thought that their Learning & Development function was effective.HR Trends and Priorities for 2015 Often, Learning & Development programs are piecemeal and aren’t created in alignment with the needs and strategy of the organization. In order to improve the effectiveness of L&D, all initiatives must be derived from a cohesive L&D strategy that is aligned with, and delivering on, the organizational objectives and strategic goals. Performing a future and current state assessment of the L&D function that involves reflecting on the organizational strategy is an important step. Using the outcome of these assessments to build the L&D strategy will ensure that your strategy is aligned and will deliver meaningful results. Involving key stakeholders in the strategy creation process, including executives and managers, will also ensure alignment with organizational needs as well as obtain buy-in and support for the program, thereby improving L&D’s perceived value. 1.L&D strategy is an organizational strategy articulating workforce capabilities, skills, and competencies required to ensure organizational effectiveness and differentiation. 2.When executed correctly, L&D programs are valuable for embedding and driving organizational culture and engagement levels. When the organizational culture is supported and engagement levels are high, employees are more likely to improve productivity and performance levels, and turnover decreases. Complication ? Resolution

McLean & Company44 Understand how L&D integrates with talent management and performance management Onboarding Manage Talent Workforce Planning Evaluate Talent Performance Appraisal 1 Employee Development Leadership Development Management Development Succession Planning Develop Talent 3 Competencies Internal Talent Assessment Review Talent 2 Calibration Meeting 4 Talent Management Activities = Performance Management Activities = Learning & Development Activities = Review Meeting Manage talent by continuously referring each step back to workforce planning to ensure alignment with meeting business objectives. 1 Evaluate the talent at your organization using talent, competency, and performance assessments. Review and calibrate talent to ensure appropriate placement of it. Develop talent Onboard talent to ensure they are set up for success. This deck focuses on: Learning & Development Activities

McLean & Company55 Best-Practice Toolkit 1.Make the case for building a Learning & Development strategy. 2.Develop a vision for Learning & Development. 3.Analyze critical issues impacting Learning & Development. 4.Establish Learning & Development strategic principles. 5.Apply the strategy across the Learning & Development function. Guided Implementations Establish your L&D vision statement. Perform a SWOT Analysis and Needs Assessment to understand the current state of L&D. Prioritize the issues impacting Learning & Development. Establish strategic principles and initiatives. Establish key roles and responsibilities, communicate the strategy, and evaluate for ongoing success. Onsite Workshop Module 1: Determine future and current state of Learning & Development. Module 2: Establish and apply L&D strategic principles. Phase 1 Outcome: Completed vision statement and understanding of future direction. Prioritized needs and issues to focus the strategy on for attainment of future state. Phase 2 Outcome: Strategic principles for Learning & Development established. Initiatives for each function of L&D that align with the strategic principles. A timeline for implementation of L&D initiatives. A plan for evaluating progress and communicating successes. 1. Determine future and current state of L&D 2. Establish and apply L&D strategic principles Formalize a Learning & Development Strategy: Project Overview

McLean & Company66 Establish and apply L&D strategic principles Phase 2: Determine current and future state of L&D Phase 1 Determine current and future state of Learning & Development Make the case Develop a vision for Learning & Development Analyze critical issues impacting Learning & Development Steps:

McLean & Company77 HR Function 2015 Spending Change from 2014 Learning & Development 1 st Talent Acquisition 2 nd 1 Total Compensation 3 rd 1 Employee Engagement 4 th 2 HR Operations & Infrastructure 5 th 1 Talent Management 6 th 1 Performance Management 7 th HR Strategy 8 th A substantial amount of time, money, and effort has been spent on L&D. For the past two years, L&D has topped the list of projected spending. In addition, the areas within the L&D function of Leadership Development, Management Development, and Employee Development have been identified as the top three highest priority areas for HR. L&D was rated as the top area of HR projected spending in McLean & Company’s HR Trends and Priorities for 2015 survey Priority area ranking (out of 31 HR areas) 1 st 2 nd 3 rd 5 th McLean & Company, N=408 Results are shown as the percentage of respondents who selected 5 or 6 on a 6-point scale.

McLean & Company8 Leadership Development Employee Development Onboarding Across all areas of L&D effectiveness scores are low. The low effectiveness rating indicates that Learning & Development programs are not tightly aligned to the business strategy. Non-HR respondents scored the degree of effectiveness of the L&D function lower than the HR participants. The difference in effectiveness ratings between business and HR respondents stems from a lack of communication between the two groups and poor buy-in from the business for L&D initiatives. Across all areas of L&D effectiveness scores are low. The low effectiveness rating indicates that Learning & Development programs are not tightly aligned to the business strategy. Non-HR respondents scored the degree of effectiveness of the L&D function lower than the HR participants. The difference in effectiveness ratings between business and HR respondents stems from a lack of communication between the two groups and poor buy-in from the business for L&D initiatives. Despite the top spend projection and high prioritization, L&D falls short of expectations for most organizations Only 30% of non-HR respondents and 36% of HR respondents thought that their Learning & Development function was effective. McLean & Company, N=408 Effectiveness score by L&D functional area Management Development

McLean & Company9 An L&D strategy makes each of the L&D areas more effective and better integrated The Learning & Development function consists of the following areas: Each of these programs sets the employee up for success and has a significant impact on the business: Strong onboarding allows the employee to ramp up quickly and have faster time to effectiveness. Employee development contributes to a more skilled workforce, which increases overall effectiveness and productivity, thereby increasing revenue. Management development is critical as the manager’s abilities affect the overall team performance. Leadership development results in quality leaders that contribute to the organization’s overall achievement of success and improves employee engagement and workforce retention levels. If all of the programs are well integrated, the following benefits are realized: Better use of resources/budgets. Training is not duplicated, resulting in time and cost savings. There are no gaps in training, which helps prevent errors and wasted time/resources. Easier management of the L&D function. Onboarding is the process of welcoming, inducting, orienting, and engaging a new employee to help him or her acclimate to the new environment and become a productive member of the team. Onboarding Employee development uses multi-dimensional learning, including on-the- job learning opportunities and manager support, to strengthen employee competencies. Employee Development Management development uses multi-dimensional learning to strengthen manager competencies, including the ability to deliver effective feedback and coaching. Management Development Leadership development uses multi-dimensional learning to strengthen competencies. Often, leadership development is more proactive, particularly when it’s a part of succession planning. Leadership Development

McLean & Company10 L&D programs are better integrated with business initiatives, which results in better delivery, support, and impact. Programs are created to complement each other with predetermined desired outcomes in mind, making resource planning and program design easier, and resulting in time and cost savings. All stakeholders know their roles and responsibilities, stakeholder management is facilitated, and follow through on tasks is ensured by all key players. Overall goal setting for the L&D function ensures the L&D function follows a set plan that spans three to five years and aligns with business goals. L&D opportunities are selected based on the overall impact and value to the organization. The alignment of the L&D strategy to the business goals, involvement of key stakeholders, and tracking of metrics to demonstrate value will improve buy-in for the function and result in increased budget and resource availability. An L&D strategy improves the effectiveness of the organization and addresses key obstacles impacting L&D Having an L&D strategy will help HR overcome common pain points often experienced when executing L&D initiatives. These include: …Solution derived from L&D strategy creationL&D issue… Inward focused L&D programs that fail to move in sync with organizational objectives. L&D initiatives don’t work well together, gaps exist, and programs are difficult to coordinate. Managers, executives, and L&D team members duplicate efforts or balk their L&D responsibilities. Piecemeal solutions result from a response to immediate need. L&D opportunities are available but fail to produce meaningful results. Resource and budget constraints exist for the L&D function, impacting its effectiveness.

McLean & Company11 An L&D strategy provides real benefits – it delivers on business goals and results in stakeholders seeing the value of HR (6 Proven Principles of Workplace Learning) Having the right people in the right place with the right skills at the right time is key to strategy execution. L&D is critical to achieving that formula. By having an effective L&D strategy on course, HR will be better equipped to support the execution of business strategies and achieve these kinds of results! Sales Operating Profit 40% 52% Impact of speed of organizational strategy execution % of Growth Companies that are slow executing on strategy Companies that are fast executing on strategy An L&D strategy allows you to get ahead of the game in terms of preparing employees with the knowledge and skills necessary to meet business goals. The success L&D has on the achievement of business goals also gives you the opportunity to prove your value to the organization, and work as a strategic partner. For more information and advice on transforming HR into a strategic partner for the business, see McLean & Company’s Research: Build Stakeholder Management Capabilities and Align the Role of HR with the Organization by Transitioning HR from Functional to StrategicAlign the Role of HR with the Organization by Transitioning HR from Functional to Strategic.

McLean & Company12 McLean & Company Helps HR Professionals To: hr.mcleanco.com Empower management to apply HR best practices Develop effective talent acquisition & retention strategies Build a high performance culture Maintain a progressive set of HR policies & procedures Demonstrate the business impact of HR Stay abreast of HR trends & technologies Sign up for free trial membership to get practical solutions for your HR challenges "McLean & Company provides practical research, tools and advice covering the entire spectrum of HR & Leadership issues to ensure you experience measurable, positive results." - Rob Garmaise, VP of Customer Experience Toll Free: