Staples
Measuring the Value of Learning
More Pressure to Demonstrate Value
Adding New Measurement
Capabilities
Learning Diagnostics
New Class of Learning Metrics
SKPI
Name
Acronym
Unit of Measure
Algorithm / Measurement
Method
Source Data
Learning
Market Share
LMSh
Percentage of organization’s
total L&D market
Percentage of L&D budget managed or
influenced by L&D/Total L&D budget
Enterprise and BU Operating Budgets
Partner
Management
Efficiency
PME
Percentage reflecting partner
usage and degree of
redundancy across partner
programs
Total number of --
LMS data and purchasing contracts
Total number of / Total number of
duplicate ---
Purchasing contracts and learning
program details
Back Office
Efficiency
BOE
Transaction costs
Total cost for --- / Total number of --- a
given time period
Training costs associated with back office
operations and LMS data
Learning
Alignment
Index
LAI
Number of programs
Number of programs required by --s /
number of programs targeted to strategic
initiatives
Portfolio management process
Solution
Design
Effectiveness
SDE
Variable number
Satisfaction score plus learning --
BU sponsor satisfaction survey
Level 3 assessments
Portfolio return rate
Enterprise
Technology
Effectiveness
ETE
Percentage of technology usage
Factor representing optimal use of -- /
Actual use--
Use of technology in blended learning
Measuring the Value of
Learning
Corporate University Xchange:
Best Practice Presentation
Kelly Archy
Nancy Persson
Ray Stevens
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Plan for the hour
What are your measurement challenges?
Measurement at Staples
3 Examples:
• US Retail
• North American Delivery
• Corporate
Your take-aways or best practices
Q&A
Measuring the Value of Learning
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Poll: What is your primary
Measurement Challenge?
• Isolating training as a factor
• Calculating ROI in hard savings/contribution
• Time/resources to evaluate
• Accurately capturing all training costs
• Business moves/changes so quickly
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Who are we? Staples
• Brand Promise: We make buying office products easy
• International operations in 23 countries:
• (US, Canada, UK, Germany, Netherlands, Portugal, France, Italy, Belgium,
Spain, Sweden, Austria, Denmark, Switzerland, Poland, Hungary, Czech
Republic, Luxembourg, China, Argentina, Brazil, India, Taiwan)
• Annual sales: $19+ billion
• Shopping channels:
• Associates: 76,000 worldwide
• Stores, distribution and fulfillment centers, call centers,
regional sales offices, home office
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Who are we? Staples University
• Learning brand and structure serving associates in US Stores, North American
Delivery, and Corporate functions
• SU Mission: Learn, Innovate, Succeed, Repeat
• Leadership curriculum serves leaders enterprise-wide
• Total Staples U curriculum comprises more than 250 programs providing job skills,
management development, service and selling skills, technical training, and
leadership development
• In 2008, Staples U celebrates our 10th anniversary!
Staples U Structure
Corporate Team:
• Leadership & Org
Development
• Staples U Corporate
• Design and delivery
accountability
17 total associates,
Including mgt.
Measuring the Value of Learning
US Retail Team:
• Program Design
• Delivery
accountability
9 total associates,
Including mgt.
NAD Team:
• Delivery of sales &
corporate
curriculum
• Customer Service
• Logistics
• Telesales
47 total associates,
Including mgt.
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Measuring Learning at Staples
We measure when it’s aligned with a business goal, and will make a
difference in driving performance.
Measurements tie directly to company objectives and help us drive and
shape our learning and development initiatives.
Performance improvement efforts focus on critical business priorities:
• Drive profitable growth
• Deliver industry leading service
• Differentiate our brand
• Demonstrate market leadership
• Demonstrate our strong corporate values
As a result, our measurement focuses heavily on:
• Impacting sales and/or expenses
• Impacting the customer’s experience
• Impacting associate development and retention
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Retail: US Stores Training
Curriculum
• On-boarding
• Sales & Service Training
• Product Knowledge Training
• Machines, Systems and Technical Training
• Management Development
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Retail Example:
Product Knowledge
Top Line Sales
Product
&
Services
Training
Completion
Knowledgeable
Associates
(CSAT)
Overall
Customer
Satisfaction
Operating
Profit
☼ Change of Focus from Transactional to Transformational ☼
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Product & Services Training
Completion
Product & Services Knowledge –
Training Completion
•
Visibility to stores with current completions
•
Visibility to overall training metrics on a
balanced scorecard
Associate comfort level – E-learning product knowledge
Survey
•
97% agreed that the training helps them do their jobs better
•
96% agreed that they are more likely to sell or recommend the
products featured in the training
•
96% believe that the training has increased their sales performance
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Poll: Customer Satisfaction: What is
the top attribute our customers are
looking for?
•
Competitive prices
•
Courteous and respectful associates
•
Quality of office supplies
•
Hassle-free returns
•
Knowledgeable associates
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Customer Satisfaction – Courteous
& Respectful and Knowledgeable
Associates
All
Providers
Top Attribute Rankings
Courteous and respectful associates
Knowledgeable associates
92% 62%
(30%)
51%
(39%)
46%
(39%)
90%
Easy to use website
Total
Performance
Gap
85%
Hassle-free returns
84%
60%
(24%)
Products out on display
84%
N/A
---
In stock toner or printer cartridges
84%
57%
(27%)
72%
(11%)
68%
(14%)
66%
(15%)
53%
(27%)
Wide assortment of office supplies
Quality of office supplies
In stock advertised items
Associates know where products are
Measuring the Value of Learning
83%
82%
81%
80%
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Product Knowledge – Top Line
Sales & Operating Profit
Top Line Sales
•
ROI Study
•
30% increase in sales for a featured product over a 5 week period.
•
20% maintained lift over 9 weeks.
Control Group Test
•
Isolated the test to show only the product knowledge training impact
•
Results showed an 8.4% per store, per week increase in sales with product knowledge
training
Operating Profit – Associate Satisfaction improves turnover
•
Highly Satisfied Associates have lower levels of turnover which improves service delivery to
Customers.
•
Increases Employee skill levels (i.e., “Learning by Doing” effect)
•
Highly Satisfied Associates are more motivated to provide excellent service
Measuring the Value of Learning
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Training Measurement
Product Knowledge
+
Customer Satisfaction
=
Increased Sales & Profits
Measuring the Value of Learning
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North American Delivery
Staples Business Delivery
(Catalog & Staples.com)
1- 19 employees
and home office
Contract &
StaplesLink.com
SNA: Fortune 500
Quill, Quill.com &
Medical Arts Press
SBA: 20 employees
or more
10 - 100 employees
Medical practitioners
Measuring the Value of Learning
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SBA Training
• New Hire Orientation
• “Staples Way” Selling Skills
• Management Training (for high-potentials)
• District Sales Manager Training (Phases I & II)
• Leadership Challenge
• Training conducted by Management Trainers and
Regional Coaches
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Staples Way
• Prospecting and creating a “pipeline”
• Approaching customers
•
Mailers
•
Calls
• At the customer meeting:
•
Setting expectations
•
Determining customer needs
•
Closing & support
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Training Measurement
• Leadership intuitively supports training efforts
•
Annual Sales Meetings
•
Regional Meetings
•
Leadership Meetings
• Integrated training part of all new launches
•
Software
•
Technology, Furniture, Copy/Print Selling
Measuring the Value of Learning
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Training Measurement
Differentiated Selling Model
+
Perfect Order Execution
=
Strong Acquisition & Retention
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Training Measurement
$7
$6
$5
$4
NAD Annual
Sales (B)
$3
$2
$1
Measuring the Value of Learning
07
20
05
20
03
20
01
20
19
99
$0
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Staples Business Delivery
Telesales
Cost Per Associate (Thousands)
Training & Coaching Staff
$74
12
$72
10
$70
$68
$66
8
6
4
2
0
FY '05
FY '06
Measuring the Value of Learning
FY '07
$64
$62
$60
$58
FY '05
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FY '06
FY '07
25
North American Delivery
Industry Position
14%
Staples
2007 Operating Margin
12%
$6.6B
10%
8%
6%
4%
C
A
$4.5B
$4.1
B
2%
0%
-5%
$4.8B
B
0%
5%
10%
15%
2007 Sales Growth
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Corporate Training Curriculum
• Management Development
• Leadership Development
• Professional Development
• Functional/Technical skills
• Process Excellence program support
• Customized design and delivery
Measuring the Value of Learning
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Corporate Example:
Process Excellence
•
Staples’ Lean/Six Sigma initiative; goal is to develop and deploy a large
rotating pool of Black Belts.
•
Aligns with corporate goals of best execution and increasing
effectiveness/reducing costs
•
Training includes Black Belts, Green Belts and Red Belts: the Staples Brand
of the junior level of practitioner.
•
All Belts are trained in value-based processes.
Identify
Business
Unit
Objectives
Identify
Project
Opportunities
130 + Projects!
Measuring the Value of Learning
Screen
Initial List
Of
Opportunities
Scope and
Define
Projects
Prioritize
List of
Defined
Projects
Savings
exceeding
$42,000,000
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Training Measurement
Best Practices
+
Consistent Execution
=
Bottom Line Savings
Measuring the Value of Learning
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Our Favorite Metric
Dear Staples,
I write to offer my “Thanks” to you and your employee, Erin Day, for the extraordinary effort you both
made to help me in a time of very real frustration. In early October I purchased an HP Office Jet 6310 All-in-One
device in your store and it “crashed” after only four weeks’ use. To HP’s credit, they immediately offered to replace
the machine free of charge, but couldn’t guarantee delivery any faster than 10 days, which would leave me without a
printer, copier, fax, or scanning capability for an unacceptable period of time. I found myself tempted to buy another
machine, then hope I could somehow sell it or the replacement, but realized that might have less-then-desirable
implications for warranties, etc.
Finding myself in Kokomo, I stopped in your store to inquire about Staples perhaps being able to
influence HP to “hurry up” its processes and ship sooner. I was standing next to the display model 6310 when Erin
Day met me, listened to my problem, asked me to wait for a moment while she talked to her manager, then returned
and told me I should take the display model, with the promise that I would return it when my replacement from HP
arrived. I was almost speechless. It was so easy. She took my name and telephone number, wrote a note for the
file, unplugged the machine, put it in my arms, and wished me a nice day. And when I returned your machine a
couple days ago, she recognized me, took the machine off my hands and, again, wished me a nice day.
In today’s mass merchandising environment where practically everything is a throw-away and local store
employees are often powerless, we simply do not experience that kind of service-oriented customer satisfaction
effort-ever. Please know that I truly do appreciate Erin’s effort and your confidence in your customer.
Very truly yours…..
David L. Voris,
DLVoris Executive Services
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Questions?
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