1. Introduction to Talent Development Reporting Principles (TDRp) David Vance, Executive Director Center for Talent Reporting October 23, 2014

2. Today’s Discussion 2 Talent Development Reporting principles CTR Introduction and Background Framework TDRp Measures and Statements TDRp Reports Conclusion 10/23/2014

3. Introduction and Background Talent Development Reporting principles CTR 3 10/23/2014

4. Talent Development Reporting Principles (TDRp) Brings principles, standards, definitions, statements, and reports to talent development »If accountants have standards, why not L&D and HR? Also brings standard management practices to the HR field Begun in 2010 by Kent Barnett (KnowledgeAdvisors ) and Tamar Elkeles (Qualcomm) »Engaged industry thought leaders like Fitz-enz, Bassi, Phillips, Bersin, Brinkerhoff, and CLOs/ Senior Talent Leaders of major organizations Mission: Improve & standardize the measurement, reporting, and management of human capital to increase business value Talent Development Reporting principles CTR 4 10/23/2014

5. 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) Focus on L&D today Talent Development Reporting principles CTR 5 10/23/2014

6. What TDRp Offers Standard names and definitions for measures »Built on work of ATD, SHRM, Fitz-enz, Higgins, others Classification of measures into three types Three standard statements employing the measures Three customizable management reports Application of standard management principles to L&D and HR Guidance for alignment, reaching sponsor agreement on impact, creating and executing a plan Talent Development Reporting principles CTR 6 10/23/2014

7. 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 CTR TDRp Designed to Run L&D and HR with Business-like Discipline 7 These are all standard business practices!

8. The TDRp Reporting Framework What types of measures should be reported? »Outcome, effectiveness, and efficiency How should these measures be organized? »Into three statements: Outcome, Effectiveness, and Efficiency What do leaders want to see? »Proactive, strategic alignment to their goals »Plan, Year-to-date results, and Forecast How should the measured be reported? »Three executive reports: Program, Operations, and Summary Talent Development Reporting principles CTR 8 10/23/2014

9. 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 Talent Development Reporting principles CTR 9 10/23/2014

10. TDRp Framework 10/23/2014 Talent Development Reporting principles CTR 10 Our Vision: “Talent Development Reporting principles are broadly accepted and widely employed as the world-class reporting standard for all human capital processes.”

11. Executive Reporting Focus: Standard Measures 11 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? 10/23/2014 Talent Development Reporting principles CTR

12. Executive Reporting Focus: Three Statements 12 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 10/23/2014 Talent Development Reporting principles CTR

13. Executive Reporting Focus 13 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 10/23/2014 Talent Development Reporting principles CTR

14. Executive Reporting Focus 14 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 10/23/2014 Talent Development Reporting principles CTR

15. 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 10/23/2014 Talent Development Reporting principles CTR 15

16. TDRp Measures and Statements 10/23/2014 Talent Development Reporting principles CTR 16 Yes, but what are your goals?

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 CTR 17 10/23/2014

18. The Three Types of TDRp Measures Effectiveness: quality of program or initiative »For individual programs and for enterprise overall »Like quality of hire Efficiency: efficiency of program or initiative »For individual programs and for enterprise overall »Like number of new hires »Also includes costs, completion dates, utilization rates, cycle times Outcomes: impact of L&D and 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, etc. Talent Development Reporting principles CTR 18 10/23/2014

19. The Statements Three standard statements »Effectiveness »Efficiency »Outcome 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 10/23/2014 Talent Development Reporting principles CTR 19

20. Effectiveness Statement Effectiveness Measures 10/23/2014 Talent Development Reporting principles CTR 20 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

21. Effectiveness Statement for L&D 10/23/2014 Talent Development Reporting principles CTR 21

22. Efficiency Statement Efficiency Measures 10/23/2014 Talent Development Reporting principles CTR 22 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 %

23. Efficiency Statement for Capability Management 10/23/2014 Talent Development Reporting principles CTR 23 Results through June

24. Outcome Statement Alignment and Impact Shows alignment of HR initiative to goals Expected impact on those goals Isolated impact is the ideal »Sponsor’s estimate (Quantitative or qualitative) »HR’s estimate reviewed and approved by senior leadership May use proxies for impact 10/23/2014 Talent Development Reporting principles CTR 24 The key: agree on the measures of success

25. Sample Outcome Statement for L&D 10/23/2014 Talent Development Reporting principles CTR 25

26. Sample Outcome Statement for L&D (continued) 10/23/2014 Talent Development Reporting principles CTR 26

27. TDR Reports 10/23/2014 Talent Development Reporting principles CTR 27

28. The Reports 28 10/23/2014 Talent Development Reporting principles CTR Three levels of reports »Summary Report (for CEO, SVPHR, and Dept. Head) »Operations Report (for Managers and Dept. Head) »Program Report (for Managers and Dept. Head) 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

29. 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 10/23/2014 Talent Development Reporting principles CTR 29

30. L&D Summary Report 10/23/2014 Talent Development Reporting principles CTR 30

31. L&D Summary Report (continued) 10/23/2014 Talent Development Reporting principles CTR 31

32. Sample Operations Report for L&D 10/23/2014 Talent Development Reporting principles CTR 32

33. Sample Program Report for L&D Programs in Support of the Goal to Reduce Injuries Talent Development Reporting principles CTR 33 10/23/2014

34. Conclusion 10/23/2014 Talent Development Reporting principles CTR 34

35. 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 »Engaging the Dept. Heads to 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. »Align, plan, manage Talent Development Reporting principles CTR 35 10/23/2014

36. Adopting TDRp: Start From Where You Are 36 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 Alignment and Impact 6.Create one, two or all three of the reports Alignment and Impact for the Summary and Program Reports 1 1 5 5 4 4 3 3 2 2 7 7 6 6 10/23/2014

37. The Center for Talent Reporting: The Home of TDRp 37 10/23/2014 Talent Development Reporting principles CTR 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 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 Business model: Others provide consulting and software

38. Accelerate Your Mastery 38 10/23/2014 Talent Development Reporting principles CTR Webinars »Implementation CSFs (12/2, 2/11) »Implementation Guidance (members only) (11/20, 12/17) »Website Overview (11/13) »Leader Webinar (11/11) 2 ½ day workshops offered »April 8-9 Atlanta 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

39. Learn More about TDRp Learn more and get implementation guidance at www.CenterforTalentReporting.org www.CenterforTalentReporting.org »Introduction to TDRp whitepaper »Over 600 measures »More than 66 sample statements and reports »Guidance on implementation »Workshop and webinar registration Contact for more information: »Dave Vance: DVance@CenterforTalentReporting.orgDVance@CenterforTalentReporting.org »Peggy Parskey: Pparskey@CenterforTalentReporting.org 10/23/2014 Talent Development Reporting principles CTR 39