1. TDRp Implementation Webinar CTR Members Only David Vance, Executive Director Peggy Parskey, Assistant Director November 20, 2014

2. 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) May also type a question in We will take questions at the end, too 20-Nov-14 Talent Development Reporting principles CTR 2

3. Our Sponsors We want to thank the following sponsors for their support of the Center for Talent Reporting. Talent Development Reporting principles CTR 3 FOUNDING ORGANIZATION SILVER SPONSORS 20-Nov-14 FOUNDING GOLD SPONSOR Cigna and Skillsoft are Founding Silver Sponsors

4. Our Sponsors We want to thank the following sponsors for their support of the Center for Talent Reporting. Talent Development Reporting principles CTR 4 BRONZE SPONSORS 20-Nov-14 ADP, Aventus Partners, Bellevue University Human Capital Lab, Development Dimensions International, McBassi & Company, Motorola Solutions, ROI Institute, Skyline Group, and Tata Interactive Systems are Founding Bronze Sponsors

5. Today’s Discussion 5 Talent Development Reporting principles CTR Your Issues Ten Steps to Successful Implementation Change Management Considerations Q&A, Other Issues Scheduled for 90 minutes 20-Nov-14

6. Ten Steps to Successful Implementation Talent Development Reporting principles CTR 6 20-Nov-14

7. Ten Steps to Implement TDRp 1. Socialize TDRp concepts 2. Commit to implement 3. Engage a guiding team 4. Develop a multi-year plan 5. Develop measures library 6. Identify business goals 7. Identify efficiency & effectiveness goals 8. Create draft statements & reports 9. Manage results to plan; conduct monthly reviews 10. Review & improve TDRp processes 20-Nov-14 Talent Development Reporting principles CTR 7 Goal: sponsor commitment to success Goal: awareness & understanding Goal: resources to drive & support implementation Goal: clear expectations about timelines Goal: defined set of measures to be managed Goal: clarity on the business goals Goal: clarity on departmental goals Goal: demonstrate TDRp outputs Goal: run HR like a business Goal: continuous improvement

8. Review: TDRp Implementation Journey 8 Time Create Awareness (2) Commit to implement (1) Socialize TDRp concepts (5) Implement: Develop measures library (6) Implement: Identify business goals and the plan for Talent’s contribution to the outcomes (7) Implement: Identify efficiency and effectiveness goals (8) Implement: Create draft statements & reports Institutionalize Advocate, Champion Degree of Support for Change 20-Nov-14 Expand, Integrate (10) Review: Improve TDRp processes (9) Manage: Monthly/quarterly reviews (4) Plan: Establish multi-year project plan (3) Engage a guiding team Talent Development Reporting principles CTR This is a change process; Build capability over time

9. Steps 1,2:Socialize and Commit Create a Sense of Urgency Risks of doing nothing? »Senior Talent leaders will lack a holistic view of HR’s performance »Talent leaders will not have the information to prioritize investment decisions and funding allocation »Talent leaders will lack a systematic approach to improving training results »The Talent function will have a lower impact on business outcomes »Talent will continue to be viewed as a cost center and will be subject to ongoing cost cutting Opportunity if you act? »Talent will build collaborative partnerships with the business ensure it focuses on the most critical priorities, drives application and produces measureable results »Senior Talent leaders run talent like business including -An annual business plan -Agreed upon measures -Goals and performance targets »Talent will systematically improve training results and their impact on business outcomes »Talent will have the data, tools and methods to communicate its value to the business 9 9 20-Nov-14 Talent Development Reporting principles CTR

10. Steps 3,4: Engage a Guiding Team and Create a Multi-year Plan Engage a guiding team »You will need help! »Make sure key players and functions are engaged »Really needs to be owned by the department head Create a multi-year plan »Cannot be done in one year!! »Pace yourself. Don’t create unrealistic expectations »Start small and grow the effort -Consider a pilot or start in one unit -Gather data manually to start if need be – don’t wait for automation Talent Development Reporting principles CTR 10 20-Nov-14

11. Step 5: Develop Measures Library Identify business goals »Talent head meets with CEO and/or obtains business plan »Identify prioritized SMART goals Interview other key sponsors and stakeholders »Identify other business measures that matter to business leaders »Identify or confirm the key measures that matter to Talent leaders Decide on effectiveness and efficiency measures »In support of strategic initiatives »In support of other important initiatives »In support of department goals Develop a draft measures library, socialize, finalize 20-Nov-14 Talent Development Reporting principles CTR 11

12. Step 6: Identify Business Goals and Plan for Talent’s Contribution to Outcomes Meet with Sponsors for strategic initiatives »Determine if talent initiatives can help achieve goal »If so, agree on specifics of initiative, including outcome measures Agree on Talent’s contribution to the Outcomes »Ideally, the expected isolated impact of training OR »High, medium or low impact OR »Proxy measures: Indicators of performance that serve as leading indicators of expected outcomes For other initiatives, establish the expected impact (plan) Talent Development Reporting principles CTR 12 20-Nov-14

13. Sponsors vs. Stakeholders? 13 Talent Development Reporting principles CTR Sponsor: responsible to the CEO for delivering the business goal »The only person with whom you can have a meaningful discussion about the impact of talent on the business »Usually a direct report to the CEO at most one level further down (e.g. SVP of Sales, President of Manufacturing) Stakeholder: An individual who has a "stake" in the program »Can influence it »Wants to know if it is successful »Is directly affected by it »Typically includes -Head of the HR function (like 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 20-Nov-14

14. Step 7: Identify Effectiveness and Efficiency Goals 14 20-Nov-14 Talent Development Reporting principles CTR For all initiatives, establish goals (or plan) for the effectiveness and efficiency measures »Examples for L&D -Effectiveness: 80% for level 1, 90% for level 2, and 70% for level 3 -Efficiency: Number of participants, completion dates, costs »Examples for Talent Acquisition -Effectiveness: Quality of hire, % of acceptances to offers -Efficiency: Time to hire, # of candidates per open requisition

15. Step 8: Create Draft Statements and Reports Start with the statements »In practice, all three are usually started simultaneously »However, the outcome statement may take the longest since input is required from senior leaders and sponsors »To start, focus on just the most important company goals and on just the most important effectiveness and efficiency measures -May have only 5 for each Then move to the reports »Summary just pulls the key measures (maybe all in the beginning) from the three statements »Operations just pulls key measures (maybe all in the beginning) from the efficiency and effectiveness statements »Program will be the hardest since it has more detail Talent Development Reporting principles CTR 15 20-Nov-14

16. Step 9: Manage Results to Plan; Conduct Sponsor and Stakeholder Reviews Disciplined execution by the department head is key here »The measures are the means to the end – not the end »The end is managing talent like a business, meaning -Plans are established -Results are compared to plan each month and variances are discussed -Action is taken to make plan »Dedicated, monthly meetings are recommended where the department head reviews progress with direct reports Results should also be reviewed with the sponsor and stakeholders at least quarterly if not monthly »Note: This is where the year-to-date outcome measures come from Talent Development Reporting principles CTR 16 20-Nov-14

17. Step 10: Review and Improve TDRp is a journey. It will never be complete or finished »You will learn every year how to be better »Your company’s goals will change and so will some of the effectiveness and efficiency measures »Your data, systems and processes will improve every year -(But don’t wait for perfection. Start with what you have – whatever it is) »Beware of too many measures and too much data -Practically speaking, leaders can only manage so many measures…the rest will have little value from a management viewpoint -So, don’t establish measures and collect data just to have more. Focus on what decision makers need to manage the function Talent Development Reporting principles CTR 17 20-Nov-14

18. Beyond Step 10: Expand and Integrate into Business Processes 18 Talent Development Reporting principles CTR Processes »Your function’s monthly reporting and review processes »Your function’s annual business planning process »Your company’s annual business planning process Systems »HRIS »Financial systems »Learning management system »Measurement & evaluation system »Employee opinion survey system Look for opportunities to integrate TDRp into your organizational processes and systems 20-Nov-14

19. TDRp Progress Assessment 19 20-Nov-14 Talent Development Reporting principles CTR

20. TDRp Progress Assessment: Example 20 20-Nov-14 Talent Development Reporting principles CTR

21. Adopting TDRp: Start From Where You Are 21 20-Nov-14 Talent Development Reporting principles CTR 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 statements with actual results and no plan 4.Add a plan column to your effectiveness & efficiency statements 5.Create an outcome statement with input from senior leaders 6.Create one, two or all three of the reports 1 1 5 5 4 4 3 3 2 2 7 7 6 6

22. Change Management Considerations Talent Development Reporting principles CTR 22 20-Nov-14

23. Making it Happen Technically, TDRp is pretty straight forward It’s about gathering relevant data and displaying it in a succinct way on reports for executives But if it’s so easy, why don’t we see TDRp (or some variant thereof) implemented within most Talent functions? Talent Development Reporting principles CTR 23 TDRp requires a fair amount of change in the way the Talent function operates. And let’s face it, change can be difficult. TDRp requires a fair amount of change in the way the Talent function operates. And let’s face it, change can be difficult. 20-Nov-14

24. What’s Changing when Implementing TDRp? 24 Talent Development Reporting principles CTR Biggest changes we see »A new discipline in the function »Regular dialogue with the business »Accountability for results, not just activity and quality, but the business impact »Goals and forecasts »Leading & lagging indicators 20-Nov-14

25. The Anatomy of Change 20-Nov-14 Talent Development Reporting principles CTR 25 Response Skeptical Enthusiasm This is taking time Results aren't visible Is it worth it? Maybe not a bad idea It works! The Dark Night of the Innovator Optimism Pessimism Time Investment Phase Pay-off Phase Start to see pay-offs Brass Bands and Fireworks

26. Change Framework 26 Create the Climate for Change Enable and Engage the Organization Implement & Sustain the Change Why: Make it compelling What: Align leaders on the benefits and capabilities of Executive Reporting How: Assess readiness; develop the vision; create the roadmap Why: Make it real What: Integrate TDRp into the planning and reporting process; communicate for buy-in; enable and support new behaviors How: Celebrate early adopters, highlight short terms wins & benefits Why: Make it stick What: Embed into roles; create aligned metrics How: Provide appropriate incentives; recognize new behaviors; drive continuous improvement 20-Nov-14 Talent Development Reporting principles CTR

27. Critical Success Factors Talent Business Plan Leadership Results Drive Action Resources Governance / Alignment Data Talent Development Reporting principles CTR 27 Technology & Integration Leadership Exec Reporting driven from the top (the department head) Talent leaders engage in ongoing dialogue with senior business leaders Governance /Alignment Align with business needs Establish Talent priorities Talent Business Plan Driven by business priorities Includes efficiency, effectiveness & outcome measures with SMART goals Results Inform annual planning process Drive continuous improvement Data Access to relevant data Confidence in data quality Availability matches reporting cadence Technology Systems and tools enable scalable, repeatable process Drill down capability to explore anomalies Resources Bandwidth & accountability Knowledge & skills Credibility with the business 20-Nov-14

28. The Bottom Line: What is Required for a Successful Implementation? 28 Talent Development Reporting principles CTR The head of the talent function must be the champion and sponsor for TDRp »Must be relentless in promoting it particularly at staff and employee meetings »Should be a key performance goal »Must hold direct reports accountable to adopt it and use it; should be in their performance goals Talent leaders must have access to the company’s SMART goals, senior leaders, and sponsors TDRp must be seen as a management initiative, not a measurement initiative The goal: manage the function more effectively and efficiently to help achieve the company’s important goals 20-Nov-14

29. Q&A Other Implementation Issues Talent Development Reporting principles CTR 29 20-Nov-14

30. Learn More 30 20-Nov-14 Talent Development Reporting principles CTR

31. Accelerate Your Mastery 31 20-Nov-14 Talent Development Reporting principles CTR 2 day workshops offered »April 8-10 Atlanta Public Webinars »Intro to TDRp »Implementation CSFs »Implementation Guidance (members only) (10/16,11/20) Certification »Individuals »Vendors providing software products employing TDRp Members Only Page Business Acumen Resources CTR Communities

32. Contact Information Dave Vance: Executive Director »Email: DVance@CenterForTalentReporting.orgDVance@CenterForTalentReporting.org »Phone: 970.460.0837 Peggy Parskey: Assistant Director »Email: PParskey@CenterForTalentReporting.orgPParskey@CenterForTalentReporting.org »Phone: 323.931.6589 Andy Vance: Operations Director »Email: AVance@CenterforTalentReporting.orgAVance@CenterforTalentReporting.org »Phone: 970.646.1843 Kevin Jones: Research Director »Email: KJones@CenterforTalentReporting.orgKJones@CenterforTalentReporting.org »Phone: 718.230.0363 20-Nov-14 Talent Development Reporting principles CTR 32 @Center4TR Center for Talent Reporting or TDRp