Talent Development Reporting Principles (TDRp): Your Guide to Measurement and Reporting David Vance May 20, 2013 M216

Today’s Discussion 2 20-May-13 Center For Talent Reporting Common Practitioner Questions Running L&D like a Business Talent Development Reporting principles (TDRp) »What is it? »How can it help? Q&A

Common Practitioner Questions 20-May-13 Center For Talent Reporting 3

Common Practitioner Questions About measurement »What should I measure? »Which measures should I use? »How are these measures defined? About reporting »How do I report these measures? »What do senior leaders (CLO, SVPHR, CEO) want to see and in what format? »What do we do with these reports once we have them? About demonstrating value »How do I show alignment to important company goals? »How do I show the value or impact of our HR initiatives? 20-May-13 Center For Talent Reporting 4

Running L&D (Talent) Like a Business 5 20-May-13 Center For Talent Reporting

First: Agree on Our Role Help our organizations achieve their goals »More quickly »At lower cost »More effectively Best accomplished by running L&D like a business focusing on: »Outcomes (Are we doing the right things?) »Effectiveness (How well?) »Efficiency (How much and at what cost?) 20-May-13 Center For Talent Reporting 6

1.Identify the business goals 2.Align L&D initiatives to business goals and plan the initiatives carefully 3.Execute and report with discipline 4.Measure and evaluate 20-May-13 Center For Talent Reporting Four Steps to Run HR Like a Business 7

TDRp: How It Answers the Questions and Supports Running L&D Like a Business 20-May-13 Center For Talent Reporting 8

Talent Development Reporting Principles (TDRp Brings principles, standards, definitions and recommended statements and reports to talent development Addresses all the questions on earlier slide Began in fall 2010 by Kent Barnett (CEO, Knowledge Advisors) and Tamar Elkeles (VP of Learning and Organization Development, Qualcomm) Engaged industry thought leaders like Fitz-enz, Bassi, Phillips, Brinkerhoff, Bersin and CLOs/ Senior Talent Leaders of major organizations 20-May-13 Center For Talent Reporting 9

Talent Development Reporting Principles (TDRp 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) 20-May-13 Center For Talent Reporting 10

A Brief History of the Movement May-13 Center For Talent Reporting 11 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 Development of TDRp for L&D First whitepaper approved by Council Presentation at Learning Analytics Symposium 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

The TDRp Process ( And Answers to the Questions on Earlier Slide) Report three types of measures -Outcome, effectiveness, and efficiency Create three standard statements with these measures -Outcome, Effectiveness, and Efficiency Create three types of customized reports from these statements -Summary, Program (Initiative), and Operations 20-May-13 Center For Talent Reporting 12

The TDRp Reports Designed to Answer Leader’s Questions May-13 Center For Talent Reporting Are the L&D initiatives aligned to our key goals? 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 are the key programs planned to achieve it? How are we doing? »Year-to-date results versus plan Are we going to make plan? What is the forecast?

TDRp Designed to Facilitate the Management of Human Capital May-13 Center For Talent Reporting 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

The Target Audience for TDRp Talent leaders and managers »All those responsible for programs, people, and budgets Senior talent leaders »SVP of HR, CLO, Head of Talent Acquisition, heads of other talent processes (leadership development, capability management) Senior organizational leaders »CEO, CFO, EVPs, SVPs, governing boards Different reports required for different audiences 20-May-13 Center For Talent Reporting 15

TDRp Framework 20-May-13 Center For Talent Reporting 16

Executive Reporting Focus: Standard Measures 17 Data Sources and Systems Systems and processes for organizing data, calculating measures Specific methodology (e.g. Phillips, Brinkerhoff) Statements Standard Measures Data Reports System Wide Analytics Program/ Initiative Analytics Standard Measures: Efficiency measures: How much? How many? At what cost? Effectiveness measures: How well? Outcome measures: What is the impact on the business? 20-May-13 Center For Talent Reporting

Executive Reporting Focus: Three Statements 18 Data Sources and Systems Systems and processes for organizing data, calculating measures Specific methodology (e.g. Phillips, Brinkerhoff) Statements Standard Measures Data Reports System Wide Analytics Program/ Initiative Analytics Three Statements: Outcome Statement Effectiveness Statement Efficiency Statement 20-May-13 Center For Talent Reporting

Executive Reporting Focus 19 Data Sources and Systems Systems and processes for organizing data, calculating measures Specific methodology (e.g. Phillips, Brinkerhoff) Statements Standard Measures Data Reports System Wide Analytics Program/ Initiative Analytics Three Reports: Summary Report Program Report Operations Report 20-May-13 Center For Talent Reporting

Executive Reporting Focus 20 Summary Conclusions, Actionable Recommendations, Issues for Further Analysis Data Sources and Systems Systems and processes for organizing data, calculating measures Specific methodology (e.g. Phillips, Brinkerhoff) Scope of TDRp Statements Standard Measures Data Reports System Wide Analytics Program/ Initiative Analytics 20-May-13 Center For Talent Reporting

Executive Reporting Process 21 Senior ExecutivesLearning Executives Executive Reports Statements Data Sets Extract, convert and calculate Standard Measures Data Sources Executive Reporting Process Guiding Principles Financial Data Evaluation System Learning Management System Other Sources: HRIS, CRM, ERP Outcome Statement Learning Effectiveness Statement Learning Efficiency Statement OutcomesEffectivenessEfficiency L&D Summary Report Quarterly L&D Program Report Monthly L&D Operational Report Monthly 20-May-13 Center For Talent Reporting

Executive Reporting Process Senior ExecutivesTalent Development Executives Executive Reports Statements Note: Data sets can be organized by processes and/or efficiency, effectiveness & outcomes Data Sources TDRp Framework 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 Effectiveness Statement (s) Outcome Statement Efficiency Statement (s) Talent Development Processes Talent Acquisition Leadership Development Learning & Development Capability Management Performance Management Total Rewards Extract, convert and calculate Standard Measures Data Sets May-13

TDRp Statements Focus just on L&D 20-May-13 Center For Talent Reporting 23

The Statements Three standard statements »Outcome »Effectiveness »Efficiency Standard measures are used but choice of measures depends on organization Summary statements show »Last year’s actual »Plan (or goal) for this year »Year-to-date results Detail statements show »Monthly, quarterly, trend data »Granularity »Without plan 20-May-13 Center For Talent Reporting 24

Outcome Statement Alignment and Impact Shows alignment of L&D initiative to goals Expected impact on those goals Isolated impact is the ideal »Sponsor’s estimate (Quantitative or qualitative) »L&D’s estimate reviewed and approved by senior leadership May use proxies for impact Key is some agreed-upon measure of success 20-May-13 Center For Talent Reporting 25

Considerations in Creating the Outcome Statement May-13 Center For Talent Reporting Requirements »Summary statement »Lists organization’s top goals in priority order »Identifies impact of talent initiative on goal »Four columns -Last year’s actual (LYA) -Current-Year Plan -YTD Actual -YTD Actual as % of Plan Options »Quantitative versus qualitative »Isolated impact versus proxy »Detailed statements Statements

Outcome Statement for L&D Quantitative & Qualitative with Proxies 20-May-13 Center For Talent Reporting 27

Considerations in Creating the Effectiveness Statement May-13 Center For Talent Reporting Start with effectiveness measures directly related to the initiatives in support of organization goals Add effectiveness measures which relate to other organizational and department goals (if any) Requirements »Must be some effectiveness measures »Columns: LYA, Plan, YTD, YTD as % of Plan Options »Selected measures »Grouping and labeling

L&D Effectiveness Statement Effectiveness Measures Kirkpatrick/Phillips five levels »Level 1: Satisfaction, Forecasts of levels 3-5 -Participant -Sponsor »Level 2: Amount learned »Level 3: Application rate »Level 4: Impact »Level 5: Value (net benefit or ROI ) Some will have only L1, L2 20-May-13 Center For Talent Reporting 29

Effectiveness Statement for L&D 20-May-13 Center For Talent Reporting 30

Considerations in Creating the Efficiency Statement May-13 Center For Talent Reporting Start with efficiency measures directly related to the initiatives in support of organization goals »Number of participants, »Number of employees Add efficiency measures which relate to other organizational and department goals Requirements »Must be some efficiency measures »Columns: LYA, Plan, YTD, YTD as % of Plan Options »Selected measures »Their grouping and labeling

L&D Efficiency Statement Efficiency Measures* 32 Volume »Participants »Courses, classes, hours -Offered, taken »By ILT, vILT, WBT, etc. Costs »Development, delivery, management »Tuition »Opportunity Utilization »Courses, classes, instructors »By ILT, vILT Effort to develop and maintain Reach Cycle times »Performance consulting, development, delivery *See a complete list in the Definition of Terms and Measurements document 20-May-13 Center For Talent Reporting

Efficiency Statement for L&D 20-May-13 Center For Talent Reporting 33

TDR Reports Focus just on L&D 20-May-13 Center For Talent Reporting 34

The Reports May-13 Center For Talent Reporting Three levels of reports »Summary Report (for CEO) »Program Report (for CLO) »Operations Report (for CLO) Highly customized, pulling the most important measures from the statements 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

Bringing it All Together: The Summary Report May-13 Center For Talent Reporting Audience: senior business and HR executives Most significant measures from the effectiveness, efficiency and outcome statements 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 Outcome Statement Learning Effectiveness Statement Talent Development Summary Report Quarterly Effectiveness Statement (s) Outcome Statement Efficiency Statement (s)

Considerations in Creating the Summary Report May-13 Center For Talent Reporting Requirements »Summary report »Top goals for organization impact by talent initiatives »Most important effectiveness and efficiency measures »Columns: -LYA -Plan -YTD -YTD as % of Plan -Forecast Options »Quantitative versus qualitative »Isolated impact versus proxy »Detailed report »Names of measures, how they are grouped, group names New!

L&D Summary Report 20-May-13 Center For Talent Reporting 38

The Program Report May-13 Center For Talent Reporting Purpose: Manage key programs to deliver planned results Audience: Senior Talent Executives 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 Outcome Statement Learning Effectiveness Statement Talent Development Program Report Monthly Effectiveness Statement (s) Outcome Statement Efficiency Statement (s)

Considerations in Creating the Program Report May-13 Center For Talent Reporting Requirements »Organizational goal the initiative supports »Impact of initiative on goal »Sponsor’s name »Key effectiveness measures »Key efficiency measures »In either rows or columns -Plan, YTD actual, YTD as % of Plan, Forecast -For all listed outcome, effectiveness, and efficiency measures Options »Level of detail (simple, medium, complex or multi year)

Simple Program Report for L&D (page 1) 20-May-13 Center For Talent Reporting 41

Simple Program Report for L&D (page 2) 20-May-13 Center For Talent Reporting 42

The Operations Report May-13 Center For Talent Reporting Purpose: Manage Talent operations to deliver planned results Audience: Talent Executives and managers Pulls key measures from the Efficiency Statement Adds a column for forecast Senior Talent Executives Outcome Statement Talent Development Operations Report (s) Monthly Efficiency Statement (s)

Considerations when Creating the Operations Report May-13 Center For Talent Reporting Select the most important efficiency measures from the efficiency statement Requirements »Key efficiency measures that will be actively managed on a monthly basis »Columns for LYA, Plan, YTD, YTD as % of Plan, Forecast Options »Names of the measures »How the measures are grouped »Names of the groups

Operations Report for L&D 20-May-13 Center For Talent Reporting 45

Conclusion 20-May-13 Center For Talent Reporting 46

TDR Designed to Meet The Reporting Need for Human Capital Simple, consistent approach Use standard definitions to extract and convert data into three types of measures -Outcome, effectiveness, and efficiency -Over 500 measures in the online library Create three standard statements with these measures -Outcome, Effectiveness, and Efficiency Create three types of customized reports from these statements -Summary, Program (Initiative), and Operations 20-May-13 Center For Talent Reporting 47

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, members, revenue from workshops 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 software 20-May-13 Center For Talent Reporting 48

Plans for May-13 Center For Talent Reporting Two-day workshops in 2013 »Mar Irvine »Jun 6-7 Alexandria, VA »Oct 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

Learn More about TDRP Learn more and get implementation guidance at »Introduction to TDRp whitepaper »Over 500 measures »More than 60 sample statements and reports »Guidance on implementation »Workshop and webinar registration Contact Dave Vance for more information: 20-May-13 Center For Talent Reporting 50

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