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
Sponsor and Stakeholder Engagement
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
Planning the Impact on Organization
Goals
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
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
isolated
L&D Summary Report
11
Learning and Development
Sample Summary Report for the Private Sector
with Mixed Impacts
Results through June
2014
Actual
Impact of Learning and Development Initiatives
Revenue: Increase Sales by 20%
Corporate Goal or Actual
Impact of L&D Initiatives: 25% contribution to goal
For 2015
Plan
Jun YTD % of Plan Forecast
%
%
10%
1%
20%
5%
Engagement: Increase Engagement Score by 3 Points to 69.4% (1)
Corporate Goal or Actual
Impact of L&D Initiatives: Low Impact on goal
Points
H/M/L
1 pt
Low
3 pts
Low
Safety: Reduce Injuries by 20%
Corporate Goal or Actual
Impact of L&D Initiatives: High Impact on goal
%
H/M/L
10%
Medium
20%
High
15%
High
Costs: Reduce Operating Expenses by 15%
Corporate Goal or Actual
Impact of L&D Initiatives: Medium Impact on goal
%
H/M/L
5%
Low
15%
Medium
Points
None planned
-3 pts
1.6 pts
84%
Retention: Improve Retention of Top Performers by 5 Points to 90%
Corporate Goal or Actual
Impact of L&D Initiatives
Call Center Satisfaction: Improve Satisfaction Score by 4 Points to 80%
Corporate Goal or Actual
Application of Key Behaviors
Talent Development Reporting principles • CTR
Points
%
17%
4%
Forecast as
% of Plan
85%
80%
20%
5%
100%
100%
1.9 pts
63%
Low Below plan
3 pts
Low
On plan
75%
On plan
20%
High
On plan
2%
Low
13%
On plan
10%
Low
On plan
5 pts
2 pts
67%
5 pts
100%
4 pts
95%
2.9 pts
70%
73%
74%
4 pts
80%
100%
84%
100%
100%
67%
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.
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.
What We Mean by Isolated Impact
» 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
Agreeing on Qualitative Impact
• 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
• “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
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
Reaching Agreement: An Example
Start with list of drivers
• 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
Prioritize and assign relative contribution
Prioritized Drivers
1. Growth in economy
Relative
contribution
High
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 salespeople
Low
6. New advertising campaign
Low
Agreeing on Quantitative Impact: The
Percentage Contribution Method
(This will a number or %)
• Good for second or third-year discussions.
• Starts like qualitative approach
1.
2.
Ask sponsor to list all factors contributing to achieving the goal
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
Reaching Agreement: An Example
Prioritize and assign contribution %
Prioritized Drivers
%
contribution
HR
Initiative?
1. Growth in economy
50%
2. Consultative sales and
product features training
20% Prioritized
Yeslist
of drivers to
15% increase
sales by 10%
3. Growth in market share due
to new products
4. New salesperson incentive
system
5%
Yes
5. Hiring 5 new salespeople
5%
Yes
6. New advertising campaign
5%
Prioritized list
HR initiatives in
of drivers with
total are expected
percentage
to contribute 30%
contribution to
toward the goal of
increase sales
increasing sales
by 10% (These
by 10%
add to 100%)
Proxy Measures
• Definition: An alternative choice of
measure, used when a better
measure is not available
• When should we use a
proxy?
• How we use proxies every day
• How do we determine the
right proxy measure?
» 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
• 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
Method
Pro
Con
Quantitative
• Fosters 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
Qualitative
• Makes it easier to reach • More subjective. May be hard to
agreement on impact
reach agreement on what ‘high,
medium or low’ looks like.
Proxy
• Makes it easier to reach • May not demonstrate as tight a
agreement on the
link as desired between HR and
impact
the business.
• Simplifies data
• Requires agreement on leading
collecting and reporting
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)
L&D Summary Report
Quantitative Version
Impact of Learning and Development Initiatives
Revenue: Increase Sales by 20%
Corporate Goal or Actual
Impact of L&D Initiatives: 25% contribution to goal
2011
Actual
Plan
For 2012
Jun YTD % of Plan Forecast
%
%
10%
1%
20%
5%
17%
4%
85%
80%
20%
5%
Points
Points
1 pt
0 pts
3 pts
.5 pt
1.9 pts
.3 pt
63%
60%
2.5 pts
.5 pt
Safety: Reduce Injuries by 20%
Corporate Goal or Actual
Impact of L&D Initiatives: 70% contribution to goal
%
%
10%
3%
20%
14%
15%
10%
75%
71%
20%
14%
Costs: Reduce Operating Expenses by 15%
Corporate Goal or Actual
Impact of L&D Initiatives: 30% contribution to goal
%
%
5%
0%
15%
5%
10%
3%
67%
60%
18%
6%
Points
Points
1.6 pts
NA
4 pts
1 pt
2.9 pts
.7 pt
73%
73%
4 pts
1 pt
Engagement: Increase Engagement Score by 3 Points to 69.4% (1)
Corporate Goal or Actual
Impact of L&D Initiatives
Call Center Satisfaction: Improve Satisfaction Score by 4 Points to 80%
Corporate Goal or Actual
Impact of L&D Initiatives
L&D Summary Report
Qualitative Report
2013
2011
Actual
Plan
2014
For 2012
Jun YTD
% of Plan Forecast
Impact of Learning and Development Initiatives
Revenue: Increase Sales by 20%
Corporate Goal or Actual
Impact of L&D Initiatives: Medium
%
H/M/L
10%
Low
20%
Medium
17%
Medium
85%
20%
Medium
Engagement: Increase Engagement Score by 3 Points to 69.4% (1)
Corporate Goal or Actual
Impact of L&D Initiatives: Low
Points
H/M/L
1 pt
Low
3 pts
Low
1.9 pts
Low
63%
2.5 pts
Low
Safety: Reduce Injuries by 20%
Corporate Goal or Actual
Impact of L&D Initiatives: High
%
H/M/L
10%
Medium
20%
High
15%
High
75%
20%
High
Costs: Reduce Operating Expenses by 15%
Corporate Goal or Actual
Impact of L&D Initiatives: Medium
%
H/M/L
5%
Low
15%
Medium
10%
Medium
67%
18%
Medium
Call Center Satisfaction: Improve Satisfaction Score by 4 Points to 80%
Corporate Goal or Actual
Impact of L&D Initiatives: Low
Points
H/M/L
1.6 pts
NA
4 pts
Low
2.9 pts
Low
73%
4 pts
Low
Sample Program Report for L&D
Programs in Support of the Goal to Reduce Injuries
Results through June
Sponsor: Swilthe, VP of Manufacturing
Enterprise Goal: Reduce Injuries
Expected Impact of Learning:
Metric
%
H/M/L
2014
Actual
12%
Medium
2015
Plan
30%
High
YTD as
YTD % of Plan
20%
67%
High Below Plan
Forecast
30%
High
Programs to Reduce Injuries
1 Deliver Phase 1 Courses for Factory A
Effectiveness measures
Level 1: Participants
Sponsor
Level 2: Test score
Level 3: Application rate
Efficiency measures
Unique Participants
Total Participants
Metric
2011
Actual
2012
Plan
YTD
YTD as
% of Plan
Forecast
%
%
%
%
70%
75%
86%
53%
80%
90%
90%
65%
85%
88%
95%
62%
106%
98%
106%
95%
82%
88%
92%
63%
103%
98%
102%
97%
Number
Number
452
858
3,000
6,000
2,800
5,542
93%
92%
3,200
6,300
107%
105%
2 Develop Phase 2 Courses for Factory B
Efficiency measure: Complete by 5/30
Effectiveness measure: Sponsor Satisfaction
Number
%
NA
NA
3
90%
3
90%
100%
100%
3
90%
100%
100%
%
%
%
%
NA
NA
NA
NA
80%
90%
90%
70%
80%
90%
92%
61%
100%
100%
102%
87%
82%
88%
90%
65%
103%
98%
100%
93%
Number
NA
1,000
100
10%
1,100
110%
3 Deliver Phase 2 Courses for Factory A
Effectiveness measures
Level 1: Participants
Sponsor
Level 2: Test score
Level 3: Application rate
Efficiency measures
Unique Participants
Forecast as
% of Plan
100%
On Plan
Forecast as
% of Plan
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» Email: DVance@CenterForTalentReporting.org
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