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Strategic Learning and Development_L&D Metrics and Strategic Learning Partnering


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Strategic Learning and Development and L&D Metrics: Transforming Training into a Strategic Learning Partner

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Strategic Learning and Development_L&D Metrics and Strategic Learning Partnering

  2. 2. 3-DAY, TRAINING PROGRAMME OVERVIEW • Introduction • Training Cycle/Process • Strategic Learning and Development • Training Evaluation and Measuring ROI • Skills Auditing – principles and process • Case studies
  4. 4. INTRODUCTORY ACTIVITY • Individual activity: • Complete the following statement by inserting one word only. As a L&D Manager, in order to optimize the strategic impact and value of training, I need to/to be……………………………………………… • Jot this word down and find other learners who have written down the same word. Write this word down on the flip-chart. • Each learner will have the opportunity to explain their choice of word.
  5. 5. INTRODUCTION AND CONTEXTUALIZATION • Learning and Development (L&D) function is still severely criticised for being too disconnected and disengaged from business realities and for their retarded evolutionary transition towards strategic learning partnering. • L&D professionals need to garner business executive support and to enhance and expand their credibility. • This is evidenced by the fact that only 60% of respondents stated that their L&D management team have an influential voice at boardroom level • CIPD Learning and Development surveys (2012-2014), where it is confirmed that the most common change is for L&D professionals to become more business-focused.
  6. 6. INTRODUCTION AND CONTEXTUALIZATION • Deloitte’s Global Human Capital Trends report (2016), that found that 84% of executives’ regard learning as a strategic lever of business performance. • McKinsey global survey (2014), that found that 50% of the respondents regard organisational skills development and capability building as one of their key strategic business priorities. • The Deloitte study (2013), emphasises that organisations have generated renewed impetus on capacity building and downscaling recruitment, as these organisations wrestle with the stark reality of filling key positions at multiple levels and as the pressures of leadership development and succession planning intensify. • The “war for talent” is shifting and is becoming the “war to develop talent”
  8. 8. GENERIC TRAINING PROCESS/CYCLE • Step 1: Identify the overall business needs • Step 2: Identify the success criteria • Step 3: Establish individual training needs • Step 4: Design and develop a learning solution • Step 5: Review the learning solution • Step 6: Production of learning and instructional materials • Step 7: Implement the learning solution (delivery of training) • Step 8: Evaluate and Review the impact of training
  11. 11. DEFINITION AND AIM OF STRATEGIC LEARNING & DEVELOPMENT (ARMSTRONG, 2016) •Strategic learning and development takes a broad and long- term view about how to ensure that the organisation has a knowledgeable, skilled and engaged workforce. •The aim of strategic learning and development is to produce a coherent and comprehensive framework for developing people through the creation of a learning culture and the formulation of individual and organisational learning strategies.
  12. 12. STRATEGIC IMPERATIVE OF L&D • Building a leading L&D function will likely not only drive performance, but also improve employee engagement. • “For far too long, training has been a passive, organizational back-seat driver. It should come to prominence by enabling and ultimately, driving strategy and it’s achievement.” (Cotter, 2015) • If skills shortages are seen as a top threat to business expansion, leadership will turn to learning managers for a response (justification).
  13. 13. 10 FACTORS OF STRATEGIC L&D (COTTER, 2017) #1: Strategic mind-set and alignment with business goals #2: Evidence-based, business metrics and predictive analytics #3: Learning architecture and design #4: Learning structures and roles #5: Enhanced skills set of L&D professionals
  14. 14. 10 FACTORS OF STRATEGIC L&D (COTTER, 2017) #6: Extended learning, knowledge management and change to “skills building” L&D approach #7: Utilization of social and e-learning (70-20-10 model) #8: High Impact Learning Organization (HILO) culture #9: Top management support and line manager engagement, contribution and involvement #10: L&D administration, governance and risk management Refer to Annexure A: The Strategic L&D Scorecard
  15. 15. KEY COMPONENTS OF THE STRATEGIC L&D FRAMEWORK • Enablers • Inputs • Transformation • Outputs • Business Environment • Foundation • Strategic L&D Scorecard (Refer to Annexure A)
  16. 16. PH.D RESEARCH – x85 STRATEGIC LEARNING & DEVELOPMENT FACTORS (COTTER, 2017) • N = 463 (global) • Selected deficient factors: ❑ #1: Line managers are competent in conducting accurate training needs analyses (65%) ❑ #7: The L&D function has adopted scientifically valid measurement processes to evaluate talent development performance (68%) ❑ #10: The organisational performance management system fits seamlessly into the L&D process (68%) ❑ #39: The L&D function effectively implements skills auditing processes (72%) ❑ #42: Training Return-on-Investment (ROI) calculations yield positive organisational dividends (72%)
  17. 17. 2,7511 2,7675 2,8184 2,8316 2,8954 2,9095 2,9674 2,9710 3,0145 3,2721 2,4 2,5 2,6 2,7 2,8 2,9 3 3,1 3,2 3,3 3,4 Learning admin Curating modern Learning architecture Top management Enhanced skills Future-proofing Strategic mindset Learning strutures Learning solutions Evidence based Strategic L&D factor mean scores - compliance
  18. 18. 3,1664 3,1836 3,1955 3,2140 3,2309 3,2397 3,2580 3,2721 3,3343 3,0500 3,1000 3,1500 3,2000 3,2500 3,3000 3,3500 Evidence based Curating modern Learning architecture Future proofing Top management Learning admin Learning strutures Strategic mindset Enhanced skills Strategic L&D factors mean scores - importance
  19. 19. 2,7511 2,7675 2,8184 2,8316 2,8954 2,9095 2,9674 2,9710 3,27213,2397 3,1836 3,1955 3,2309 3,3343 3,214 3,2721 3,258 3,1664 0 0,5 1 1,5 2 2,5 3 3,5 4 Learning admin Curating modern Learning architecture Top management Enhanced skills Future-proofing Strategic mindset Learning strutures Evidence based Comparison: Compliance and Importance Compliance Importance
  20. 20. 0.1057 -0.2870 -0.3046 -0.3048 -0.3770 -0.3993 -0.4160 -0.4389 -0.4886 Evidence based Learning structures Future-proofing Strategic mindset Learning architecture Top Management Curating modern Enhanced skills Learning Admin Strategic L&D Capability Gap Index
  21. 21. STRATEGIC L&D MATURITY MODEL Level 4: Strategic L&D (mean range of 3.5 - 4.0) Level 3: Transformational L&D (mean range of 3.0 - 3.49) Level 2: Transactional L&D (mean range of 2.5 - 2.99) Level 1: Traditional L&D (mean range of 1.0 - 2.49)
  22. 22. MATURITY MODEL OF STRATEGIC L&D FACTORS Level 4: Strategic L&D (mean range of 3.5 - 4.0) Level 3: Transformational L&D (mean range of 3.0 - 3.49) •#2: Evidence based metrics •#4: Learning solutions Level 2: Transactional L&D (mean range of 2.5 - 2.99) •#5: Learning structures & roles •#1: Strategic mindset •#7: Future-proofing organization •#6: Enhanced skills of L&D prof’s •#9: Top management support •#3: Learning architecture •#8: Curating modern learning •#10: Learning administration Level 1: Traditional L&D (mean range of 1.0 -2.49)
  23. 23. LEVEL OF READINESS MODEL: STRATEGIC L&D FACTORS Level 4: High state of readiness (Strategic L&D Capability Gap Index range of 0.5 and higher) Level 3: Moderate state of readiness (Strategic L&D Capability Gap Index range of 0.01 to 0.49) •#2: Evidence-based metrics Level 2: Low state of readiness (Strategic L&D Capability Gap Index range of 0 to -0.49) •#5: Learning structures & roles •#7: Future-proofing organization •#1: Strategic mindset •#3: Learning architecture •#9: Top management support •#6: Enhanced skills of L&D prof’s •#8: Curating modern learning experiences •#10: Learning administration Level 1: Alarming state of readiness (Strategic L&D Capability Gap Index range of -0.5 and lower)
  24. 24. 10 CRITICAL SUCCESS FACTORS FOR THE TRANSFORMATION OF TRAINING TO A STRATEGIC LEARNING SOLUTION • #1: Top management support and ownership • #2: Vibrant and effective Performance Management System (PMS) • #3: Direct and active engagement, consultation and participation of line management in all learning processes • #4: Training Managers need to adopt and apply a strategic mind-set (conceptual thinking) • #5: Establishment of a learning organizational culture
  25. 25. 10 CRITICAL SUCCESS FACTORS FOR THE TRANSFORMATION OF TRAINING TO A STRATEGIC LEARNING SOLUTION • #6: Holding individuals accountable for application of learning by means of e.g. learner contracts/agreements • #7: When utilizing outsourced training providers ensure performance-directed, Service Level Agreements are in place • #8: Learning and Development must be embedded in the business strategy • #9: Learning strategy must precede structure • #10: Commitment to training as an investment and not cost item
  26. 26. LEARNING ACTIVITY 1 • Group Discussion: • Evaluate (on a 10-point scale) the current degree of compliance to the following 10 best practice criteria. Refer to the Survey Monkey link: • Identify gaps and recommend improvement strategies. • Refer to the research findings: check-chief-human-resources-officers-africa- hrm-cotter-phd/
  27. 27. 0 2 4 6 8 10 12 STRATEGIC LEARNING PARTNER 41-50 51-60 61-70 71-80 81-90
  28. 28. SLP – WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 41-89% 58% 60% 13% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE L&D have established a high impact learning organizational (HILO) culture and developed a Knowledge Management System 1 55% There is direct and active engagement, consultation and participation of line management in all learning processes 2 56% L&D Managers and -professionals adopt and apply a strategic mind- set (conceptual thinking) 3 57%
  29. 29. SLP – MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE When utilizing outsourced training providers, L&D ensures performance- directed, Service Level Agreements are in place 10 68%
  30. 30. HRM/L&D STRATEGIC MATURITY MODEL Level 4: Strategic HRM/L&D (80%+) Level 3: Transformational HRM/L&D (65-79%) Level 2: Transactional HRM/L&D (41-64%) Level 1: Traditional HRM/L&D (0-40%)
  32. 32. L&D’s RESPONSE • According to KPMG (2015), it is critically important for L&D professionals to implement an effective strategy to respond to the L&D challenges and to intensify their efforts to deliver a strategic value proposition. • However, although business acumen, business literacy and commercial awareness have become critical skills for L&D practitioners, to enable the required alignment with business strategy, the ATD State of the Industry report (Miller, 2014), questions whether these intentions are translating into meaningful business action. • Deloitte (2016), concluded that only 37% of organisations regarded their L&D programmes to be effective and only 30% described corporate L&D to be at the hub of business. • According to a Degreed (2016) study of 512 employees, the conventional L&D toolkit doesn’t work as well for today’s hyperkinetic workers and this negative view, is reflected by the fact that only 18% of respondents would recommend their employers’ training and development opportunities. • Alarmingly 80% of organisations’ L&D functions failed to measure the value and impact of L&D programmes and that only 13% quantified the financial ROI of their L&D programmes.
  33. 33. L&D’s RESPONSE • Only 17% of these L&D professionals acknowledge that they measure agreed business Key Performance Indicators (KPIs) as a component of their L&D evaluation. • Only 25% of the respondents reported that they seldom utilize collected L&D evaluation data. • Organisations are not developing skills at an acceptable tempo or developing leaders at all levels. • Deloitte's research (2017), reports that the corporate L&D received a “net-promoter score of -8”. • Similarly, a Degreed report (2016) reflects a net promoter score of -31 percent. • Best practice organisations will have to accelerate their efforts to redesign their L&D infrastructure to keep pace with the advances within the digital era. However, Bersin concedes that the majority of companies are still in the infancy of this transformation.
  34. 34. “As Learning and Development professionals, let's liberate the learning like true revolutionaries." (Charles Cotter, 7 June 2017)
  35. 35. HOW TO SUCCEED IN THE FUTURE STATE OF L&D • 5 Key Strategies to Make the Shift (2017 Workplace Learning Report, LinkedIn Learning Solutions): ❑Deliver modern learning experiences to meet expectations from modern learners. ❑Develop a tightly executed communication plan. ❑Report value to the individual and the business. ❑Build a culture of learning, one that rewards growth. ❑Don’t just take orders. Identify real training needs.
  36. 36. THE FUTURE OF LEARNING AND DEVELOPMENT (COTTER, 2018) • #1: Transition from e-learning to mobile (m)-learning • #2: More video-based, on-demand micro-learning • #3: Learners taking more ownership and responsibility for their learning • #4: More use of Virtual Reality in the traditional learning space • #5: Technology-enabled and digital learning devices
  37. 37. THE FUTURE OF LEARNING AND DEVELOPMENT (COTTER, 2018) • #6: Transition from training facilitators to Learning Navigators • #7: Less focus on learning content and more focus on the learner experience • #8: Less focus on learner assessment and qualifications and more focus on holistic application and transfer of learning • #9: Less formal training and more focus on social and experiential learning (refer to the 70-20-10 model of learning) • #10: Transition from books to MOOC’s
  38. 38. IMPROVEMENT RECOMMENDATIONS - SLP • CURATE - from providing training programmes to providing business valued learning solutions; • CREATE – an enabling high impact learning organization (HILO) culture and improved learner experience (Lx); • NAVIGATE - from being people pleasers and comfort-seekers to making employees competitive and competent; • MIGRATE - from traditional, manual methods to technology-enabled learning; • EDUCATE - transform from training departments to learning factories (repositories of knowledge) and • GRADUATE - from being transactional (administrative) to being transformational (strategic) i.e. from training administrators to being strategic learning partners.
  39. 39. 10-STEP CHANGE PROCESS CYCLE • Step 1: Conduct a gap analysis (by means of the Weighted Strategic L&D scorecard); • Step 2: Formulate and implement change management and improvement interventions; • Step 3: Ensure the horizontal integration (bundling) across the L&D value chain; • Step 4: Formulate 3-year L&D strategy and facilitate vertical alignment of this L&D strategy with the organisational business strategy (KPI #1); • Step 5: Foundational work – invest heavily in the input factors (refer to KPI #6 and #7);
  40. 40. 10-STEP CHANGE PROCESS CYCLE • Step 6: Initiation work – roll out the transformation process (refer to KPI #3, 5, 8 and 10); • Step 7: Periodically monitor, track, measure and report on strategic L&D metrics (refer to KPI #2); • Step 8: Conduct an annual audit to evaluate the strategic impact of L&D, with KPI #4 and #7 as the yardstick; • Step 9: Generate business and performance management intelligence and • Step 10: Feed this business intelligence back into the system, make the necessary revisions and re-initiate new 3-year L&D cycle/process.
  41. 41. OBJECTIVE #2: Applying strategic principles to the ADDIE process
  42. 42. STEP 1: ANALYSIS • Required Thinking – Laboratory Scientist • Applying the 70-20-10% TNA sourcing principle : ❑Accurate sourcing of performance gaps by means of a vibrant performance management system/process (70%) ❑Accurate sourcing of training needs by means of properly performed and scientifically reliable and valid skills audits (20%) ❑Sourcing of training needs through business changes, job changes, market shifts and ad-hoc requests (10%) • (Vertical) Alignment with Strategic Business Plan and Strategic Workforce Plan and horizontal integration (bundling) with other key HRM functions/processes
  43. 43. DESIGN • Required Thinking – Architect • O-R-C-A – Outcomes; Resources; Capabilities and Activities • Contract learning curriculum design specialists • Ensure quality assurance of all learning materials and assessment tools • Transform to a technology-driven or web-based methodology e.g. e- or m-learning, MOOC’s or gamification • “Organizations should redesign their learning architecture” (Deloitte, 2015)
  46. 46. DEVELOPMENT • Required Thinking – Construction Manager • Applied Competency-based methodology (SAQA definition: foundational; practical and reflexive) • Contract a diverse, task team of subject matter and development experts • Review, pilot and consult with line management to determine relevance, compatibility and value of learning offering • “Companies should focus on building a complete learning experience.” (Deloitte, 2015)
  48. 48. IMPLEMENTATION •Required Thinking – Postman, because they always deliver •Due diligence to verify competence of trainers •Ethics of S.A trainers
  49. 49. "Diligently serve the S.A training industry and the S.A training industry will diligently serve you." (Charles Cotter, 26 May 2017)
  50. 50. LEARNING ACTIVITY 2 • Group Discussion: • Evaluate (on a 10-point scale) the current degree of compliance to the following 20 best practice criteria. Refer to the Survey Monkey link: • Identify gaps and recommend improvement strategies. • Refer to the research findings: check-chief-human-resources-officers-africa- hrm-cotter-phd/
  51. 51. 0 5 10 15 20 25 30 ETHICS OF S.A TRAINERS 31-40 41-50 51-60 61-70 71-80 81-90 90-100
  52. 52. ETHICS OF S.A TRAINERS – MOST COMPLIANT CRITERIA Range Median Mean Standard Deviation 39-100% 59% 58% 12% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE South African trainers' conduct is morally corrupt. 20 66% South African trainers are trustworthy. 19 64% South African trainers demonstrate a sense of duty and commitment to faithfully serve the training profession. 18 64%
  53. 53. ETHICS OF S.A TRAINERS – WIDEST COMPLIANCE GAPS BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE South African trainers sometimes violate copyright and intellectual property rules and are guilty of plagiarism. 1 48% South African trainers sometimes discredit the training profession by associating with unscrupulous business owners. 2 49% South African trainers are sometimes guilty of misconduct. 3 52% South African trainers sometimes violate the organizational code of conduct. 4 52% South African trainers' actions comply with regulatory standards and training legislation. 5 54%
  54. 54. EVALUATION • Required Thinking – Engineer • Develop policy, processes, systems and learning analytics to measure the impact of learning beyond levels 1-3 • Revision of formative and summative assessment practices • Training ROI
  55. 55. LEARNING ACTIVITY 3 • Group Discussion: • Describe how strategic principles can be applied to the ADDIE training cycle to transform to a strategic impact and level.
  56. 56. WORKSHOP #3: Training Evaluation and ROI
  60. 60. LEARNING ACTIVITY 4: DIAGNOSIS OF CURRENT TRAINING AND DEVELOPMENT PRACTICES • Determine the level of training proficiency. • How efficient is the training process; is the attendance of scheduled training programmes good and are learners satisfied post-training? – LEVEL 1: EFFICIENT • What is the submission rate of PoE’s and is there a good success rate? – LEVEL 2: EDUCATIONAL • What is the degree of transfer and application of learning to the workplace and improved behavioural change and performance? – LEVEL 3: EFFECTIVE
  61. 61. LEARNING ACTIVITY 4: DIAGNOSIS OF CURRENT TRAINING AND DEVELOPMENT PRACTICES • What is the impact of training programmes on organizational business results and metrics e.g. productivity; competence; customer service etc. – LEVEL 4: VALUABLE • What is the Return-on-Investment (ROI) of the training programmes? Do the benefits exceed the costs? – LEVEL 5: ECONOMICAL • To what extent do training programmes directly contribute to the achievement of strategic objectives; drive innovation; generate business solutions and create sustainable competitive advantages for the organization? – LEVEL 6: STRATEGIC • Describe how you will evaluate your organization’s training programmes at Levels 3, 4 and 6.
  65. 65. DEFINING TRAINING ROI FORMULA ROI is a key financial metric of the value of training investments and costs. It is a ratio of net benefits to costs, expressed as a percentage. The formula can be expressed as: [(monetary benefits – cost of the training) / cost of the training] x 100
  66. 66. LEARNING ACTIVITY 5 • Group Discussion: • As a L&D Manager and/or -professional to what extent have you fulfilled the following obligations in terms of building a business case for training ROI? Evaluate and rate yourself/your company on a scale of 1-5, with the following descriptors: 1 = poor; 2 = average; 3 = above average/good; 4 = very good and 5 = exceptional by completing the Training ROI Scorecard. • Identify gaps and recommend improvement strategies.
  68. 68. 4-PHASE, TRAINING ROI PROCESS • The calculation of training ROI should be approached in an iterative, 4-phase approach: ❑Phase 1: Preparatory ❑Phase 2: Initiation ❑Phase 3: Analysis ❑Phase 4: Consolidatory
  69. 69. PHASE 1: PREPARATORY Creating sufficient awareness, insight and general understanding of training ROI within the organization Communicating and “selling” the benefits of ROI and the importance of training accountability to your training staff Enabling and capacitating your training staff with the requisite knowledge and skills to measure ROI Allocate sufficient resources for the calculation of training ROI Aligning and integrating the ROI implementation into the strategic HRM/D planning process Partnering and building relationships with line management as a means of garnering support and assistance for the ROI implementation process Creating a synergistic link between training and other HR systems like performance management, skills development etc. as a means of accurately identifying performance problems/gaps
  70. 70. PHASE 2: INITIATION Introducing and utilizing pre-and post-assessment i.e. quantify information before the training in order to establish a baseline Start with only one course as a pilot programme to practice ROI skills Using ROI measurement as both a predictive and evaluative instrument Data collection of the total expenditure (cost items) throughout the entire training cycle Data collection of the attributable benefits of the training programme Converting and monetizing these benefits and value to metrics and money, respectively
  71. 71. PHASE 3: ANALYSIS Evaluating the efficiency and effectiveness of your training programmes at the 4 levels proposed by Kirkpatrick 1 Managing and measuring the overall training performance as well as that of individual training programmes i.e. using HRD metrics such as activity, results and efficiency 2 Calculating the ROI ratio of your training programmes 3
  72. 72. PHASE 4: CONSOLIDATORY Auditing and verifying your ROI measurements to increase authenticity, accuracy and credibility thereof 1 Implementing improvement plans and other remedial interventions i.e. scrapping training with a negative/low ROI, as a result of the ROI measurement process 2 Compiling, communicating and marketing benefits and value of training in a ROI Report/Scorecard to management and other relevant stakeholders. 3
  73. 73. L&D METRICS Measures of training activity (concerning how much training and development occurred with the focus on formalised, structured learning) Measures of training results (concerning how well training and development achieved its goals) Measures of training efficiency (concerning the extent to which training and development maximises resources in pursuit of its mission) Refer to the specific L&D metrics (Sullivan)
  75. 75. L&D METRICS (SULLIVAN) • Do we improve the people we have? (Make them more skilled and productive): ❑Is Training a Critical Success Factor? Is there a correlation in our industry between the % of all people costs spent on training/OD and firm profitability? ❑Does Training make a difference in performance? What is the percent increase in performance as a result of every R1,000 spent on training? ❑Training also needs to prove it is closing the gap between current competencies and needed future competencies. • #1: Training ROI • Learning and Development (L&D) Investment per FTE • L&D Cost Revenue % • L&D Cost Payroll % • L&D Hours/Days per FTE • L&D FTE Ratio
  76. 76. STRATEGIC L&D - KEY PERFORMANCE AREA #2: EVIDENCE-BASED, BUSINESS METRICS AND PREDICTIVE ANALYTICS 2.1 L&D practitioners utilise data-derived metrics to measure L&D performance. 2.2 L&D practitioners are sufficiently competent to effectively manage large volumes of data of organisation-wide workforce analytics. 2.3 L&D practitioners generate competitive business intelligence, enabling line managers to make smarter business decisions. 2.4 The L&D function applies a quantitative analytical decision-making approach, in order to capitalize on strategically valuable opportunities. 2.5 L&D practitioners are credible expert talent development advisors, who utilise predictive analytics. 2.6 L&D practitioners accurately utilise multiple sources of valid data.
  77. 77. STRATEGIC L&D - KPA #2 2.7 Training Return-on-Investment (ROI) calculations yield positive organisational dividends. 2.8 L&D practitioners utilise standard, business performance measures, which are linked to organisational results. 2.9 L&D practitioners utilise performance dashboard reports that quantify the organisational learning impact. 2.10 Apart from internal data, L&D practitioners effectively leverage external data to predict workforce trends. 2.11 L&D practitioners convert analytical insights into actionable business intelligence. 2.12 L&D practitioners are data literate, who are capable to communicate the business relevance of their findings to line managers.
  78. 78. 5-STEP L&D ANALYTICS PROCESS Step 5 Project and take action to communicate metrics and related insights information to provide a robust basis for strategic change and improvement Step 4 Draw out insight from the data Step 3 Obtain data relating to relevant metrics Step 2 Develop appropriate metrics around these areas Step 1 Identify where L&D can make a strategic impact in the organization
  79. 79. TRAINING ROI SCORECARD/REPORT Executive Summary Introduction and Contextualization Analysis and Results Recommendations and Training Improvement Plan Conclusion Reference to Attachments
  80. 80. THE 5 E’s OF L&D ANALYTICS • Exploration • Examination • Extraction • Evaluation • Extrapolation
  81. 81. LEARNING ACTIVITY 6 • Group Discussion: • Indicate what L&D metrics are currently utilized at your organization. Describe the credibility and the effectiveness of these metrics to accurately measure the impact and value of training and development. • By referring to the 4-step ROI process, describe how the measurement of the impact of training can be measured at your organization.
  82. 82. WORKSHOP #4: Skills Auditing – principles and process
  83. 83. SKILLS AUDITING OVERVIEW • Definition, purpose and outcome of a Skills Audit • Diagnosis: Current Skills Audit practices and processes • Defining and Measuring of Competence • Building a Business Case for Skills Audits (Benefits and Costs) • Applying the 3-step Skills Auditing process
  84. 84. ORIGIN OF THE WORD, “AUDIT” • The word audit originates from the Latin word ‘audire’ which means to “listen”. • An audit is a systematic, objective risk management tool for how well the workplace is complying with regulatory and policy requirements.
  85. 85. DEFINITION, PURPOSE AND OUTCOME OF SKILLS AUDITING • A skills audit is a snapshot that allows an organization to determine the level of skills and knowledge of the workforce. • It is compared against the competencies that are required in order to determine the gaps and to focus training and development accordingly. • Skills audits are conducted to determine training needs within an organization in order for that organization to improve its skills and knowledge. • A skills audit establishes an individual’s current competence against the skills matrix for a particular position. • A skills audit gathers more information than current qualifications levels. • The outcome of the skills audit process is a skills gap analysis.
  86. 86. V-I-P SKILLS AUDITING • Valid (accurate and correct measurement) • Interrogative (3rd degree) • Protective (against HR, people and reputational risks)
  87. 87. BEST PRACTICE CRITERIA: SKILLS AUDITING • #1: A job analysis must be used as a basis for the skills audit • #2: Definitive performance standards must be developed, written, and provided to all stakeholders, regardless of the type of rating • #3: Raters are trained to use the rating instrument properly • #4: Formal appeal mechanisms must be in place and assessment results need to be reviewed to ensure fairness and reliability • #5: Multiple techniques/approaches are utilized and ratings are supported with documented examples of behaviour
  88. 88. BEST PRACTICE CRITERIA: SKILLS AUDITING • #6: Employees are given a chance to improve their skills through targeted development opportunities • #7: The 7 E’s - the Skills Auditing process is efficient, effective, economical, educational, ethical, empirical and evidentiary • #8: Compliance with the following principles of Skills Audits: ❑ Fairness ❑ Validity ❑ Reliability ❑ Transparency/ Openness ❑ Constructive feedback ❑ Objectivity • #9: The outcome of the skills audit generates predictive analytics and business intelligence, providing the organization with a strategic competitive advantage • #10: Skills Auditing must be a holistic, systematic, integrated and aligned approach
  89. 89. LEARNING ACTIVITY 7 • Individual activity: • Review and evaluate your organization’s current skills audit process against the ten (10) best practice criteria. Refer to the Survey Monkey link: G8F • Group Discussion: • Identify gaps and recommend improvement strategies to address these process gaps.
  90. 90. 0 2 4 6 8 10 12 14 SKILLS AUDITING 0-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90
  91. 91. SKILLS AUDITING - WIDEST COMPLIANCE GAPS Range Median Mean Standard Deviation 10-90% 57% 56% 17% BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Formal appeal mechanisms are in place in your organization and skills assessment results are regularly moderated and reviewed. 1 52% Your organization's skills auditing is a holistic, systematic, integrated and aligned L&D approach. 2 52% Your organization trains skills auditors and -raters to use the skills rating instrument properly. 3 53%
  92. 92. SKILLS AUDITING - MOST COMPLIANT CRITERIA BEST PRACTICE CRITERIA RELATIVE DIFFICULTY RANKING MEAN SCORE Your organization's skills auditing process complies with the 7 E’s i.e. efficient, effective, economical, educational, ethical, empirical and evidentiary. 10 70%
  93. 93. FUNDAMENTALS OF SKILLS AUDITING • Costs and Benefits of Skills Audits • Understanding the concept, “competence” ❑ “Applied Competence is the union of practical, foundational and reflexive competence” • Types of evidence • Techniques and Approaches for Conducting a Skills Audit ❑Panel approach ❑Consultant approach ❑One-on-one approach ❑Alternative approaches
  95. 95. STRATEGIC IMPERATIVE OF SKILLS AUDITING • The key piece of information an organization needs to improve and to deliver to its Mission Statement and strategy is to know what skills and knowledge the organization requires and what skills and knowledge the organization currently has. This information is essential for a number of reasons: ❑Without this information you don't know where to improve. ❑With this information your training and development will be better planned and more focused. ❑Recruiting needs are better defined and more likely to result in the most appropriate candidate. ❑Placement decisions are easier with knowledge of current competence levels. ❑Career pathing and succession planning is assisted with accurate information on individuals. • Meyer, Mabaso & Lancaster (2001) recommend proactive needs identification and a more futuristic approach to the assessment of training needs.
  96. 96. KEY BENEFITS OF A SKILLS AUDIT • Valid and valuable Workplace Skills Plans (WSP) • Improved skills and knowledge • Lower training and development costs because development efforts are more focused • Business intelligence - acquisition and use of information that can be used for purposes such as internal employee selection and placement • Increased productivity as people are better matched to their positions
  97. 97. KEY BENEFITS OF A SKILLS AUDIT • The results of a skills audit can be reported for each division to show individual and divisional competency gaps against competency needs. • This assists with the collation of a WSP that complies with the provisions of the Skills Development Act and SETA regulations. • Lancaster, Mabaso & Meyer (2001) claim that “the skills plan can only be produced after the organization has conducted a skills audit and a comprehensive needs analysis” • Certain SETA’s have included skills auditing as one of the requirements for the discretionary grant. • Organizations that conduct skills audits in a structured manner, may submit levy claims against Grant D of the skills development regulations.
  98. 98. 5 C’s – THE KEY BENEFITS OF A SKILLS AUDIT • Compliance + • Competitive + • Cash + • Credibility + • Competence = Clean Skills Audit
  99. 99. COSTS OF SKILLS AUDITS • Training • Time • Administrative expenses (e.g. stationery) • Information system/software • Communication • Use of consultants (where necessary)
  100. 100. POTENTIAL REPERCUSSIONS OF NOT CONDUCTING A VALID SKILLS AUDIT • Invalid and unreliable training plans • Training plans that are not specific to individual, departmental and organizational needs • Little or no commitment to training & development by management and staff, as plans are not seen as value-adding • Little or no alignment of training and development to organizational strategy and objectives • Non-implementation of the Workplace Skills Plan and therefore the organization will not be able to claim reporting grants
  102. 102. COMPETENCE • “Applied Competence is the union of practical, foundational and reflexive competence” • Practical Competence - the demonstrated ability to perform a set of tasks in an authentic context. A range of actions or possibilities is considered and decisions are made about which actions to follow and to perform the chosen action. • Foundational Competence - the demonstrated understanding of what the learner is doing and why. This underpins the practical competence and therefore the actions taken. • Reflexive Competence - the learner demonstrates the ability to integrate or connect performance with understanding so as to show that s/he is able to adapt to changed circumstances appropriately and responsibly, and to explain the reason behind an action. • Thus competence is understood as including the individual’s learning, understanding and ability to transfer and apply learned skills and knowledge across a wide range of work contexts.
  105. 105. TECHNIQUES/APPROACHES TO A SKILLS AUDIT • Panel approach • Consultant approach • One-on-one approach • Alternative approaches: ❑ Competence-based self-assessment with validation by direct manager or supervisor ❑ 360 degree reviews ❑ Focus groups ❑ Assessment centres ❑ Assessment by subject matter experts
  106. 106. EVIDENCE • Types of evidence: ❑Direct ❑Indirect ❑Historical • Evaluation of evidence (VACCS): ❑Validity ❑Authenticity ❑Consistency ❑Currency ❑Sufficiency
  108. 108. SKILLS AUDITING PROCESS • Step 1: Determine Skills Requirements • Step 2: Audit actual skills • Step 3: Determine development needs and plan for training/restructuring
  109. 109. STEP 1: DETERMINE SKILLS REQUIREMENTS • In order to determine skills requirements, an organization should identify current and future skills requirements per job. • The end result is a skills matrix with related competency definitions. Definitions can be allocated against various proficiency levels per job, such as basic, intermediate and complex. • Objective: Determine the critical or required skills (elicited from job profiles, your strategy, or competency matrix). • Skills matrix process: ❑Step 1: Workshop with a project team (include Subject Matter Experts) ❑Step 2: Use outcomes analysis to derive skills/knowledge factors and unit standard titles ❑Step 3: Use results of outcomes analysis and value chain process to develop a skills matrix and titles matrix ❑Step 4: Verify matrices with SMEs and finalise
  112. 112. STEP 2: AUDIT ACTUAL SKILLS • Step 2 involves an individual self-audit and skills audit • Results are collated into reporting documents that may include statistical graphs, qualitative reports and recommendations • A skills audit includes auditing qualifications, experience and training (knowledge) • Conducting a Skills Gap Analysis
  114. 114. SKILLS AUDIT RATING SCALE Rating Description Definition 0 No evidence of competence An individual does not currently display any form or level of competence in the skill listed. He or she may require formal training and exposure to the skill in the workplace. 0.25 Some evidence of competence The individual may demonstrate part competence, but definitely needs formal training and exposure to the skill in the workplace. 0.5 Evidence of competence, needs further training An individual is competent, but needs to improve. Training is the most effective solution. The individual may be at a lower level than the position requires, i.e. at linear, instead of complex level. 0.75 Evidence of competence, needs more exposure to the skill The individual is competent and has undergone training. Further exposure in the workplace would ensure improvement and full competence. The individual may be at a lower level than the position requires, i.e. at linear, instead of intermediate level. 1 Full evidence of competence The individual is competent in the skills at the level allocated to his/ her position.
  115. 115. STEP 3: DETERMINE DEVELOPMENT NEEDS AND PLAN FOR TRAINING/RESTRUCTURING • Once skills audit information has been collected, an analysis of the results may be used for planning purposes relating to training and development and other Human Resource interventions. • Recommendations are then discussed and agreed actions are implemented. • This skill shortfall forms the basis of a Training Needs Analysis (TNA) so that the company can reach the desired skill base amongst its employees. • A gap analysis is the outcome of the skills audit process. • Information that is provided through the skills audit can be used for the multiple HRM and business purposes.
  116. 116. REPORTING SKILLS AUDIT RESULTS • The reporting framework is generated according to the purpose you want to use the skills data for. • These reports are vital as they may be used to inform organizational training and development strategy, Workplace Skills Plans, individual development plans and performance management interventions etc. • These reports must be stored in a manner that respects the confidentiality of individual employees. • It is therefore important to agree on and communicate who has access to skills audit results, and how these people may use the results upfront. • Skills audit reports may take on a number of forms: ❑Individual competency profiles ❑Divisional radar report ❑Organizational pie chart
  117. 117. INFORMATION EXTRACTION FROM REPORTS Individual name & employee number 0% 20% 40% 60% 80% 100% 120% C om m unicationInterpersonal C ontrollingAdm inistration Planning C om puter D rafting legaldocs Property law Interview ing Department name - Divisional Radar Report 0 20 40 60 80 100 Communication Skills (B) Interpersonal Skills (B/E) Administration skills (D) Planning Skills (D) Management Skills (G) Marketing (B/C) Loans Processing (A/B/C/D) Computer skills (D) Company name ORGANISATIONAL STRATEGIC COMPETENCY PROFILE 66% 73% 75% 69% 75% 71%69% A. Strategic competency listing B. C. D. E. F. G.
  118. 118. LEARNING ACTIVITY 8 • Group Discussion: • Apply steps 1-3 of the skills audit process, to a defined organizational context.
  119. 119. LEARNING ACTIVITY 9 • Group Discussion: • Describe how you can create a HILO culture in your organization.
  120. 120. LEARNING INTEGRATION – CASE STUDIES (ACTIVITY 10) • Apply the theoretical principles to the following two (2) case studies: ❑Chubb ❑Portakabin
  121. 121. CASE STUDY 1: CHUBB Questions: • 1. Outline the 4-step process of the strategic learning model/cycle. • 2. Would you regard Chubb as a Learning Organization? Substantiate your reasoning. • 3. Would you regard the organizational culture at Chubb as a critical success factor of strategic learning? Substantiate your reasoning. • 4. Identify the strategic drivers of learning, innovation and growth at Chubb. • 5. Would you regard HRM as a strategic business/learning partner at Chubb? Substantiate your reasoning. • 6. Explain your understanding of the strategic concept, “learning and adapting.” • 7. Identify the benefits (outcomes) of the application of the strategic learning model/cycle. • 8. What are some of the key strategic learning and development lessons that can be extracted from this case study?
  122. 122. CASE STUDY 2: PORTAKABIN • 1. By reviewing Portakabin’s learning and development principles, would you regard the company’s approach as strategic? Substantiate your reasoning. • 2. How would you rate Portakabin’s learning and development quality assurance and continuous improvement processes? Substantiate your reasoning. • 3. How instrumental have the company values been in driving the learning and development success? Substantiate your reasoning. • 4. How would you rate the performance of the learning and development function at Portakabin? Substantiate your reasoning. • 5. Identify the benefits (outcomes) of the application of their learning and development approach. • 6. What are some of the key strategic learning and development lessons that can be extracted from this case study? Questions:
  123. 123. CONCLUSION • Key points • Summary • Questions • Training Certification
  124. 124. CONTACT DETAILS • Dr. Charles Cotter • (+27) 84 562 9446 • • LinkedIn • Twitter: @Charles_Cotter • •