1. …and how to give it to them What CEOs Want Patti Phillips, Ph.D.

2. * What CEOs Want ROI Institute and ATD research show that the data CEOs receive are not demonstrating they are getting what they want out of their talent investment. (N=96) Measures Currently Measure Should MeasureImportance Inputs and Indicators94%86%6 Efficiency78%82%7 Reaction53%22%8 Learning32%28%5 Application11%61%4 Impact8%96%1 ROI4%74%2 Awards40%44%3

3. * Analytics drives talent decisions. HCA Planning DevelopmentAcquisition Engagement McKinsey & Company and The Conference Board report, False Summit: Why the Human Capital Function Still has Far to Go (2012), states that human capital analytics is the linchpin of human capital investment. It is the thread that runs through all things human capital.

4. 1. Framework that includes measures important to all stakeholders. 2. Process model describing step-by-step how to capture, analyze, and report data. 3. Standards that ensure reliable implementation of the process model. 4. Reporting that answers the six critical questions senior executives ask. 5. Seamless integration that ensures we give CEOs what they routinely. * Success with Analytics

5. Levels of Evaluation Measurement Focus 0 Inputs The input into the project in terms of scope, volume, efficiencies, costs Participants, Hours, Costs, Timing 1 Reaction Reaction to the project or program, including the perceived value Relevance, Importance, Usefulness, Appropriateness, Intent to use, Motivation to take action 2 Learning Learning to use the content and materials, including the confidence to use what was learned Skills, Knowledge, Capacity, Competencies, Confidence, Contacts 3 Application Use of content and materials in the work environment, including progress with actual items and implementation Extent of use, Task completion, Frequency of use, Actions completed, Success with use, Barriers to use, Enablers to use 4 Impact The consequences of the use of the content and materials expressed as business impact measures Productivity, Revenue, Quality, Time, Efficiency, Customer Satisfaction, Employee Engagement Typical Measures 5 ROI Comparison of monetary benefits from program to program costs Benefit-Cost Ratio (BCR), ROI%, Payback Period

6. Measurement Levels Measurement Category Recommended Target* 0Inputs Number of programs, participants, costs, efficiencies 100% 1Reaction Reaction and satisfaction with experience, content, value of program 100% 2Learning Acquisition of knowledge, skill, information, awareness, insights 80-90% 3Application Use of knowledge, skill, information, awareness, insights 30% 4Impact Changes in business impact measures such as output, quality, time, engagement 10-20% 5ROI Compares monetary benefits to cost of program, project, or initiative 5-10% *Target percentage of programs is based on typical number and variety of HR initiatives. * Measurement Targets

7. Measurement Levels Measurement Category 2006 Status 2011 Status 0Inputs Number of programs, participants, costs, efficiencies 100% 1Reaction Reaction and satisfaction with experience, content, value of program 92%89% 2Learning Acquisition of knowledge, skill, information, awareness, insights 48%59% 3Application Use of knowledge, skill, information, awareness, insights 11%34% 4Impact Changes in business impact measures such as output, quality, time, engagement 8%21% 5ROI Compares monetary benefits to cost of program, project, or initiative 2%11% * 2011 Global Leadership Development Practices Survey Percent of Leadership Programs Measured at Each Level N=232; large organizations with leadership development budgets averaging $3 million annually

8. 8 Develop/ Review Objective of Program Develop Evaluation Plans and Baseline Data Collect Data During Program Implementation Collect Data After Program Implementation Evaluation Planning Data Collection LEVEL 1: REACTION LEVEL 2: LEARNING LEVEL 3: APPLICATION LEVEL 4: IMPACT * ROI Methodology Process Model

9. Isolate the Effects Convert Data To Monetary Value Calculate the Return On Investment Generate Impact Study Data Analysis Reporting LEVEL 5: ROI Intangible Benefits Capture Costs of Program Identify Intangible Measures 9

10. * Reporting Chain of Impact Reporting occurs at two levels: micro (investment) and macro (strategic). It includes quantitative, qualitative, financial, and non-financial data. Reporting answers the six critical questions senior executive ask: So what? How much? How do you know? What is it worth? How can we improve? What are the risks? It allows you to declare value, improve programs, influence decisions, and give CEOs what they want. What is your story? Inputs Reaction Learning Application Impact ROI Intangibles

11. * Seamless Integration Assess Situation Analyze Maturity Integrate Results Define Analytical Approach Invest & Evaluate Execute Find Cause Human Capital Strategy Fitz-enz, J., Phillips, P. P., and Ray, R. (2012). Human Capital Analytics: A Primer. The Conference Board. Research Report R-1500-12-RR, p. 23.

12. www.roiinstitute.net