David Vance Executive Director Peggy Parskey Assistant Director Talent Development Reporting principles (TDRp): A Webinar for Senior Leaders January 20, 2015

Logistics for Today’s Webinar PowerPoint and recording will be available to you afterwards If at your computer and using a phone, select Telephone on the control panel To ask a question during the webinar, please raise your hand and we will unmute you. If calling from a phone, enter you PIN # if you want to be able to ask a question (necessary for us to unmute you) We will take questions at the end, too »Can also type Question in Question box Jan 21, 2015 Talent Development Reporting principles CTR 2

Our Sponsors We want to thank the following sponsors for their support of the Center for Talent Reporting. Talent Development Reporting principles Center for Talent Reporting 3 SILVER SPONSORS PLATINUM SPONSOR Cigna and Skillsoft are Founding Silver Sponsors

Our Sponsors We want to thank the following sponsors for their support of the Center for Talent Reporting. Talent Development Reporting principles Center for Talent Reporting 4 BRONZE SPONSORS ADP, Bellevue University Human Capital Lab, Development Dimensions International, McBassi & Company, ROI Institute, Skyline Group, and Tata Interactive Systems are Founding Bronze Sponsors

Purpose of Today’s Webinar Provide a high-level overview of TDRp »Business principles, framework, measures, reports Make the case for TDRp »Help you decide if it would be helpful in your department Introduce you to the Center for Talent Reporting Answer your questions Talent Development Reporting principles Center for Talent Reporting 5

Agenda The Need for TDRp What TDRp Offers TDRp Measures TDRp Reports Conclusion Talent Development Reporting principles Center for Talent Reporting 6

The Need for TDRp Talent Development Reporting principles Center for Talent Reporting 7

The Current State We don’t speak the language of business and we don’t act like strategic business partners We are not having the impact we should and we struggle to demonstrate our worth. We don’t use standard management principles to plan and run our functions And we aren’t using standards for »Measures »Reports A Lot of Opportunity! Talent Development Reporting principles Center for Talent Reporting 8

Benefits of Standards Saves time »No need for every practitioner or organization to start from scratch or spend time researching -Names and definitions of measures -Types of reports (what to include?) »No need for department head to train staff on how to manage HR -How to set plan -How to create and use reports »Eliminates (or reduces) time spent arguing over the above Most professions have standards »Language, analysis, reporting Talent Development Reporting principles Center for Talent Reporting 9

What TDRp Offers 10 Talent Development Reporting principles Center for Talent Reporting

Talent Development Reporting Principles (TDRp) Brings standards to HR for the management of human capital »Planning -Reaching agreement on measures of success »Measurement »Reporting »Execution Mission: Improve & standardize the measurement, reporting, and management of human capital to increase business value Talent Development Reporting principles Center for Talent Reporting 11

Talent Development Reporting Principles (TDRp) Engaged 30 industry thought leaders like Fitz-enz, Bassi, Phillips, Bersin, Brinkerhoff, and CLOs/ Senior Talent Leaders of major organizations to develop the standards in 2010 & 2011 TDRp for L&D completed in 2011 Extended to all HR processes in 2012 »Learning & Development »Talent Acquisition »Leadership Development »Performance Management »Capability Management »Total Rewards (C&B) Talent Development Reporting principles Center for Talent Reporting 12

1.Identify the business goals 2.Align L&D and HR initiatives to business goals and plan the initiatives carefully 3.Get upfront agreement with sponsor on expected impact 4.Execute and report with discipline 5.Measure and evaluate Talent Development Reporting principles Center for Talent Reporting TDRp Designed to Run HR with Business Discipline 13 These are all standard business practices!

What TDRp Offers Guidance for »Identifying organizational and department goals »Aligning your initiatives to them »Choosing the right measures »Reaching agreement on a plan for expected impact »Setting plans for effectiveness and efficiency measures »Creating and using reports to manage Classification of measures into three types Standard names and definitions for measures »Built on work of ATD, SHRM, Fitz-enz, Higgins, others Three customizable management reports Talent Development Reporting principles Center for Talent Reporting 14

Executive Reporting Process 15 Senior ExecutivesTalent Development Executives Executive Reports Note: Measures can be organized by processes and/or efficiency, effectiveness & outcomes Data Sources Executive Reporting Process Guiding Principles Financial Systems Evaluation, EOS Systems Non-Financial, non-TDR Systems Others: HRIS, LMS, CRM, ERP OutcomesEffectivenessEfficiency Talent Development Summary Report Quarterly Talent Development Program Report (s) Monthly Talent Development Operations Report (s) Monthly Talent Development Processes Talent Acquisition Leadership Development Learning & Development Capability Management Performance Management Total Rewards Extract, convert and calculate Standard Measures Measures Talent Development Reporting principles Center for Talent Reporting

The Measures Talent Development Reporting principles Center for Talent Reporting 16

The Three Types of TDRp Measures Effectiveness: quality of program or initiative »For individual programs and for enterprise overall »Examples: Participant satisfaction with training, quality of hire, satisfaction with performance management or compensation, bench strength Efficiency: efficiency of program or initiative »For individual programs and for enterprise overall »Examples: Number of hires, number of participants, number of performance discussions, span of control Outcomes: impact of HR initiatives on organizational goals »Will be a different set for each organization because goals and initiatives are different. »Common outcome measures are impact on: sales, cost, quality, employee engagement, leadership score, diversity, etc. Talent Development Reporting principles Center for Talent Reporting 17

Measures can be used to Manage or Monitor Measures to manage »Most important »Typically directly aligned to your goals »Plan or target has been established »Forecast is made and updated »Reviewed at least monthly by senior leaders -If not on plan, or if forecast is to fall short of plan, senior leaders discuss and agree on action to take to achieve plan Measures to monitor »Less important »Typically involve more detail »Reviewed as needed Talent Development Reporting principles Center for Talent Reporting 18 Target the vital few May have many

Effectiveness Measures Talent Development Reporting principles Center for Talent Reporting 19 ProcessEffectiveness Measures Learning & Development Satisfaction, amount learned, application, impact Talent AcquisitionQuality of hire, hiring process effectiveness Leadership Development Bench strength, Succession planning success rate Performance Management % of employees with improved ratings, % of employees with rating turnaround Capability Management % of employees with career discussion, % career movement, % of positions with ready replacement Total RewardsHigh performers salary differential, compa ratio

Efficiency Measures Talent Development Reporting principles Center for Talent Reporting 20 ProcessEfficiency Measures Learning & Development Number of participants, courses; utilization rate Talent AcquisitionNumber of internal/external hires, acceptance rate, time to start Leadership Development Span of control, tenure, % of positions filled internally Performance Management Number of performance discussions, % of employees with goals, % of employees with performance reviews Capability Management Number of promotions, number of transfers, average time in position Total RewardsAverage benefit cost, variable compensation %

Outcome Measures The impact of your initiatives on the organization’s goals »May be expressed quantitatively, qualitatively, or with a proxy Examples »Impact of HR on sales »Impact of HR on employee engagement »Application rate of training (as a proxy for impact of L&D) Bottom line, some measure of impact or success will be needed »All selected outcome measures will be managed »Best practice: create a list with additional information Talent Development Reporting principles Center for Talent Reporting 21

Reaching Agreement on Plan A Key Focus of TDRp Any measure to be managed has to have a plan »This is the goal or target for the year »This is what you an others will try to accomplish -You will have specific action items -You will do your best in the face of uncertainties and unexpected events »Your colleagues in other departments already do this Who sets the plan? »Enterprise-wide effectiveness and efficiency measures should be set by the department head »Plan for outcome and program-specific effectiveness and efficiency measures set by sponsor, program manager and department head Talent Development Reporting principles Center for Talent Reporting 22

Reaching Agreement on Plan for Outcome Measures Department head and program manager meet proactively with sponsor »Business discussion to understand goal, challenges »Explore how HR can help »If it can, then decide on -Specifics of initiative (what, where, when, how) -Reasonable number to use as plan  Both parties will own it -Mutual roles and responsibilities to achieve plan »Role of sponsor may vary, but is often larger than the sponsor thinks -Typically the case for L&D initiatives -Hiring, new sales incentive plan, mentoring program for leaders Talent Development Reporting principles Center for Talent Reporting 23

TDRp Reports Talent Development Reporting principles Center for Talent Reporting 24

The Reports 25 Talent Development Reporting principles Center for Talent Reporting Three levels of reports »Operations Report -For Department head »Summary Report -For Department Head, SVPHR, CEO, Governing Boards »Program Report -For Program Manager, Department Head, sometimes sponsor as well Executive-level reports show »Last year’s actual »Plan (or goal) for this year »Year-to-date results »Forecast for this year Detailed reports for managers may show »Monthly, quarterly, trend data »Granularity »Without plan or forecast

Reports Designed to be used in Monthly Meetings to Manage/Share Results Department Head meeting with direct reports »Ideally in a 1-2 hour meeting dedicated to managing results »Cover Summary Reports, Operations Report, Program Reports »Take management action as necessary to deliver plan Program Manager with team »Use Program Reports to manage program »Prepare Program Report to be shared with Department Head Other meetings (Senior Leaders, Board of Governors, CEO) »Use Summary Report Talent Development Reporting principles Center for Talent Reporting 26

The Operations Report 27 Talent Development Reporting principles Center for Talent Reporting Purpose: Manage Talent operations to deliver planned results for effectiveness and efficiency measures Audience: Department Head and direct reports Pulls all measures to be managed from the Efficiency and Effectiveness Lists EffectivenessEfficiency Operations Report

Sample Operations Report for L&D Talent Development Reporting principles Center for Talent Reporting 28

The Summary Report 29 Talent Development Reporting principles Center for Talent Reporting Audience: Dept. Head, SVPHR, CEO, Governing Board Most significant managed measures from the effectiveness, efficiency and outcome lists aggregated at the highest level Measures will vary by organization and year to year based on organizational priorities Generated at least quarterly Must be read holistically to obtain an accurate picture of progress against goals Senior Business Executives Talent Development Summary Report Quarterly Outcomes Effectiveness Efficiency

L&D Summary Report Talent Development Reporting principles Center for Talent Reporting 30

L&D Summary Report (continued) Talent Development Reporting principles Center for Talent Reporting 31

The Program Report 32 Talent Development Reporting principles Center for Talent Reporting Purpose: Manage key programs to deliver planned outcomes Audience: Program manager, Dept. Head, sometimes the sponsor as well Generated for each major Talent program »Includes measures necessary for senior talent leaders and managers to manage program, initiative, or process results on a monthly basis. »Typically includes outcome measures relevant to the program and the key effectiveness and efficiency measures. Senior Talent Executives Talent Development Program Report Monthly Outcome Statement Effectiveness Statement (s) Outcomes Efficiency Effectiveness

Sample Program Report for L&D Programs in Support of the Goal to Reduce Injuries Talent Development Reporting principles Center for Talent Reporting 33

Conclusion Talent Development Reporting principles Center for Talent Reporting 34

Key Take-Aways TDRp is not just about measures or a measurement strategy It is about changing the conversation and the role of L&D and HR »Proactive discussions with sponsors and senior leaders »Upfront agreement with sponsor on expected impact »Department Heads set a plan or goal for key measures »Create a business plan for the department with specific, measurable goals »Execute with discipline monthly. Be accountable It is about the process of managing the business. Talent Development Reporting principles Center for Talent Reporting 35

Adopting TDRp: Start From Where You Are 36 Talent Development Reporting principles Center for Talent Reporting 1.Use TDRp for its library of measures and definitions 7.Use the principles and reports of TDRp to run L&D and HR like a business 2.Adopt the framework of outcome, effectiveness, and efficiency measures 3.Create effectiveness and efficiency lists and decide which measures to manage versus monitor 4.Create the Operations Report by adding plan and forecast for effectiveness and efficiency measures 5.Create the outcome measures list with input from senior leaders 6.Create the Summary and Programs Reports Shows Alignment and Impact

Is TDRp Right for You? Yes, if you believe »L&D and HR should be run with business-like discipline meaning -L&D and HR initiatives should be proactively aligned to your company’s goals -Plans are set with SMART goals for outcome, efficiency, and effectiveness measures -Managers should be accountable for delivering planned results »Standards would benefit the industry and make your job easier »The TDR principles, framework, and measures make sense And if you are willing to dedicate your personal leadership to implementing TDRp »You are the critical success factor Talent Development Reporting principles Center for Talent Reporting 37

Your Role in Implementing TDRp Be the champion and project leader »Should be in your performance goals and those of your direct reports (You cannot delegate leadership for this) Provide the necessary resources and guidance Set SMART goals for your department’s effectiveness and efficiency measures Meet with the CEO to learn next year’s goals and then with sponsors to reach agreement on plan for outcome measures Use the reports in dedicated monthly meetings to manage the function Talent Development Reporting principles Center for Talent Reporting 38

The Center for Talent Reporting: The Home of TDRp 39 Talent Development Reporting principles Center for Talent Reporting Established October 2012 »Not-for-profit, 501c(6) organization (used for trade associations) Mission »Improve and standardize the measurement, reporting, and management of human capital to deliver significant business value -Improve the business acumen of L&D and HR professionals Governance »Nine-member Board of Directors »Standards Committee to provide continued guidance on standards and reporting »Advisory Council Funding: S ponsors, members, revenue from workshops and coaching

Opportunities for Your Staff to Learn More 40 Talent Development Reporting principles Center for Talent Reporting Public Webinars »Intro to TDRp (3/10) »Senior Leaders (3/24) NEW »Website Tour (3/26) NEW Members Only Webinars »Implementation CSFs (2/11) REVISED »Implementation Guidance (2/18) REVISED »What’s New in 2015 (1/27) NEW »Accounting Basics (2/17) NEW »Financial Acumen (3/23) NEW »Planning, Estimating, and Forecasting (4/21) NEW »Data Gathering Considerations (2/12) NEW »The Six HR Processes (3/12) NEW TDRp Basics Workshops »April 8-9 Atlanta »Virtual May 7- June 4 for those outside NA Custom workshops and coaching available »1 or 2-day workshops on site NEW Certification »Individuals »Vendors providing software products employing TDRp Business Acumen Resources Community of Practice for Members

Learn More Visit for: »Introduction to TDRp whitepapers »Library of 600 measures (70 for L&D) »70+ sample statements and reports »Implementation guidance »Explore benefits of membership »Individual and organizational membership information »Workshop, webinar and conference registration Contact Dave Vance for more information: Talent Development Reporting principles Center for Talent Reporting 41

Open Q&A 42 Talent Development Reporting principles Center for Talent Reporting