Presentation on theme: "TDRp: Implementation Critical Success Factors David Vance, Executive Director Peggy Parskey, Assistant Director Center for Talent Reporting December 2,"— Presentation transcript:
TDRp: Implementation Critical Success Factors David Vance, Executive Director Peggy Parskey, Assistant Director Center for Talent Reporting December 2, 2014
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Today’s Discussion Three critical success factors »Engaged sponsors and stakeholders »Planning the impact on organizational goals »Communicating results throughout the year Q&A
Definitions: Sponsors and Stakeholders Sponsors: officers directly accountable for achieving the business goal »Usually direct reports to the CEO at most one level further down »Examples: SVP of Sales, President of Manufacturing Stakeholders: those with a direct interest in the outcome »Head of the HR function (e.g. 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
Engage Sponsors and Stakeholders Early and Often Sponsor »Up front to agree on role of HR initiative »If role exists, then agree on broad outline (scope), cost and impact »Identify stakeholders in sponsor organization »Agree on roles and responsibilities »Plan to update regularly Client Stakeholder »Up front to discuss role of HR initiative »If role exists, then discuss broad outlines (scope), cost and impact »Plan to work closely with stakeholder managers and staff »Agree on deadlines A good practice: document these agreements and share
Impact on Organization Goals One of the most difficult aspects of TDRp »One of the most important if HR is to be a true business partner delivering bottom line value to the organization »Without it, how does anyone know… -If the initiative is worth doing? -What the target or plan should be for the initiative? -If the initiative was or was not successful? Ideally, the impact will be the planned isolated impact of the HR initiative on the company goal »May be quantitative or qualitative »Sometimes is a proxy or other measure of success Think of this as a business planning exercise
L&D Summary Report Talent Development Reporting principles CTR 11 November 12, 2014
Note on Stating the Goal: Must be in Terms of the Delta Delta as a % »Say the sales goal is to increase sales from $50M to $55M -Delta is $5M or 10% -State the goal as 10% increase in sales Not as achieving sales of $55M Delta as change in points »Say the goal is to improve employee engagement score from 71 to 75 -Delta is 4 points (4/71 =5.6%) -State the goal as a 4 point increase in engagement Not as a 4% increase in engagement
Plan the Meeting Needs to be with the sponsor »Only the sponsor has the authority to make the forecast »May start with client stakeholder, but needs to be approved by sponsor »Start with “Friendlies” who are supportive and who are likely to get it Set up appointment with sponsor to discuss expected results from HR initiative »30-60 minutes »Staff may be present »Do not let sponsor delegate the meeting to manager Plan should be realistic and achievable
How to Open the Discussion: Possible Opening “Thank you for your time today. We wanted to take a few minutes to discuss this important initiative we are planning to help you achieve your goal of 10% higher sales. We want to ensure we meet your expectations. We also want to ensure we make the best possible use of company resources. Let’s talk about the impact we can reasonably expect from this initiative and see if we can agree on some measures of success that we can hold ourselves accountable to. The plan is to provide training to …… to be completed by ….with the expectation that after the training your people will be able to…….. Now, let’s discuss the impact this training could have on the goal to increase sales by 10% if we work together. “Thank you for your time today. We wanted to take a few minutes to discuss this important initiative we are planning to help you achieve your goal of 10% higher sales. We want to ensure we meet your expectations. We also want to ensure we make the best possible use of company resources. Let’s talk about the impact we can reasonably expect from this initiative and see if we can agree on some measures of success that we can hold ourselves accountable to. The plan is to provide training to …… to be completed by ….with the expectation that after the training your people will be able to…….. Now, let’s discuss the impact this training could have on the goal to increase sales by 10% if we work together.
Methods to Assign Impact Isolated Impact »Qualitative -What: Non-numeric (e.g. High, Medium, Low) assessment of the impact of HR programs on a business goal -Why: Good for first-time impact discussion. »Quantitative -What: Numerical impact of HR programs on the business goal -Why: Sets measureable expectation of HR’s contribution to the business Proxy measures »What: A substitute measure for impact that is considered a leading indicator or at least is highly correlated to the impact »Why: Used when a direct impact cannot be agreed upon.
»The business goal is a 10% increase in sales for next year »L&D and the sponsor agree training could help achieve the 10% increase »Specific programs, target audiences, completion dates are agreed »What portion of the 10% increase might reasonably come from this agreed-upon program? -Most, some, a little => qualitative impact (high, medium, low) If High, then the expected isolated impact of sales training on the goal will be High -A percentage like 20% => quantitative impact If 20%, then the expected isolated impact of sales training on the goal is 20% x 10% = 2% increase in sales due to training What We Mean by Isolated Impact
Agreeing on Qualitative Impact “Essential” should be used sparingly. »Only where the mission could not be accomplished without the HR initiative »If the mission could be accomplished without the initiative, even though it may take longer and/or be more expensive, the initiative is not “Essential” High Medium Low Essential A good starting point for those new to isolated impact discussions with sponsors. Try for agreement on a qualitative impact like High, Medium, Low, or Essential
Process to Help Sponsor Determine Qualitative Impact (continued) »If the initiative is not deemed essential then 1.Ask sponsor to list all factors or drivers contributing to goal. 2.Ask sponsor to prioritize factors 3.Use ranking to discuss relative importance »If one factor is dominant (more important than all others and by itself responsible for most of the goal), label it “High Impact” »If no factor is dominant, but one or two are very important and considerably more important than the others, label them “Medium Impact” »Label all the other factors “Low Impact” »Should not have more than one High and two Mediums
Process to Help Sponsor Determine Qualitative Impact (continued) »By end of discussion, you should have a good idea of the relative importance of your initiatives compared to the other factors -Tells how much is expected from you: a little, a lot? No right or wrong answer But it is important for you and the sponsor to agree on your mutual expectations Also for other things like application rate and reinforcement And on your respective roles and responsibilities -Remember, this is a planning discussion. The goal is to be roughly right »This is meant to be a “business” discussion -You will learn a lot -Great way to become more of a business partner
Potential drivers to increase sales by 10% Hiring five new salespeople Growth in economy New salesperson incentive system New advertising campaign Growth in market share due to new products Consultative sales and product features training Reaching Agreement: An Example Start with list of drivers
Reaching Agreement: An Example Prioritize and assign relative contribution Prioritized DriversRelative contribution 1.Growth in economyHigh 2.Consultative sales and product features training Medium 3.Growth in market share due to new products Medium 4.New salesperson incentive system Low 5.Hiring 5 new salespeopleLow 6.New advertising campaignLow
Good for second or third-year discussions. Starts like qualitative approach 1.Ask sponsor to list all factors contributing to achieving the goal 2.Now ask sponsor to prioritize the factors Then ask sponsor to list the expected % contribution of each. Work the percentages until they add up to 100% The percentage next to the HR initiative in question is what we are looking for. This is the expected isolated impact of the initiative on achieving the business goal. Note that the expected impact came from the sponsor, not HR Agreeing on Quantitative Impact: The Percentage Contribution Method (This will a number or %)
Reaching Agreement: An Example Prioritize and assign contribution % Prioritized Drivers% contribution HR Initiative? 1.Growth in economy50% 2.Consultative sales and product features training 20%Yes 3.Growth in market share due to new products 15% 4.New salesperson incentive system 5%Yes 5.Hiring 5 new salespeople5%Yes 6.New advertising campaign5% Prioritized list of drivers to increase sales by 10% Prioritized list of drivers with percentage contribution to increase sales by 10% (These add to 100%) HR initiatives in total are expected to contribute 30% toward the goal of increasing sales by 10%
Proxy Measures Definition: An alternative choice of measure, used when a better measure is not available How we use proxies every day »Example: Years of education »Cost-effective measure of competence. »Compared to other measures -Relatively easy to measure and verify -A decent proxy measure for a potentially wide range of basic competencies important at work »L&D Example: -Desired measure: Demonstrated application of training on the job -Proxy measure: Self report of % of training applied on the job When should we use a proxy? How do we determine the right proxy measure? Proxy: related to the Latin word procuratia or procuratio, meaning substitute agent or authorized stand in. A neighbor to the Latin word approximatus meaning, to draw near to or to be close to. Proxy: related to the Latin word procuratia or procuratio, meaning substitute agent or authorized stand in. A neighbor to the Latin word approximatus meaning, to draw near to or to be close to.
Use of Proxies Use a proxy when agreement cannot be reached on an isolated expected impact -Should be correlated with impact and ideally a leading indicator -Examples: Application rate for an L&D or Leadership Development initiative Number of performance coaching sessions for a performance management initiative -Start with higher level proxies For L&D, choose L3 before choosing L2
Pros and Cons of Each Method to Assign Impact MethodProCon QuantitativeFosters joint accountability between the business & HR to achieve the impact May be difficult to assign a numerical goal particularly when several factors contribute to the outcome QualitativeMakes it easier to reach agreement on impact More subjective. May be hard to reach agreement on what ‘high, medium or low’ looks like. ProxyMakes it easier to reach agreement on the impact Simplifies data collecting and reporting May not demonstrate as tight a link as desired between HR and the business. Requires agreement on leading indicators of impact
If Sponsor Will Not Help Plan Impact Then do it yourself »Follow same steps »Assign percentages »Or make a direct plan of initiative’s impact Share with Sponsor for feedback »His or her opportunity to disagree and correct the plan If sponsor will not provide feedback, then share your planned impact and assumptions with governing board, CEO and ask for their feedback.
Planning for Impact Summary Remember, this is a planning exercise Senior leaders want the best thinking from you and the sponsor What can the two of you, and your organizations, make happen if you work together? This is just like any other planning number. Should »Be directionally correct »Be reasonable and achievable »Lead to specific action plans to realize the impact
Communicating Results Through the Year and Updating the Forecast
Use Summary and Program Reports to Share YTD Results and Forecast Check in regularly with sponsor and stakeholders Ask: are they still comfortable with planned impact? »If yes, continue to use planned % contribution to calculate YTD results -Example: Training will contribute 20% towards achieving goal of increasing sales 10% -For June YTD results, if sales are up 4%, then training’s contribution is 20% x 4% =.8% higher sales due to training -Show planned impact as forecast (2% higher sales due to training) »If no, then adjust up or down. -Example: Sponsor believes training is now likely to have smaller impact than planned. Say only 10% contribution instead of 20% -So, for June YTD results, if sales are up 4%, then training would be responsible for 10% x 4% =.4% higher sales due to training -And lower forecast accordingly to 1% »Use actual results if available (like an ROI study on the pilot)
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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@Cent erforTalentReporting.org@Cent erforTalentReporting.org »Phone: 718.230.0363 @Center4TR Center for Talent Reporting or TDRp