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Training Need Analysis
             By
        ARRIFFIN MANSOR
         Atul©Mathur
               2009
     www.atulmathur.com
Training Need Analysis
    A corporate approach

               Arriffin Mansor




                                 2
Challenges for the Industry

•   1. What are the Training Needs ?
•   2.What are the Training Objectives ?
•   3. What are the Instructional Principles ?
•   4.What should the Course Content be ?
•   5.How should the Content be delivered ?
•   6.How should the outcomes be Evaluated ?
•   7.What makes a good Trainer ?

                                                 3
Training Development Process




                               4
Training Development Process
              Performance gaps



                   Competency gaps




                            Training needs



                                   ROI training




                                                  5
Steps in TNA




               6
Training Need Analysis


               Competency      Identify
Performance                                  Training
Gap Analysis
               gaps            Training
               Analysis                      Delivery
                               Needs



over the                      Cluster and    On the job
financial      Person
                              combine        or off the
Statements     competency
                              competency     job training
comparing      Profiling
                              gaps into      options
against        against best
standards                     core and
               practices
                              other
                              competencies
Model of Training Needs Analysis

                       Stage One
   Establish organisation’s commitment and direction

                     Stage Two
         Organisational Performance Analysis

                    Stage Three
       Gap Analysis on weak performance areas

                    Stage Four
       Identify Competency Gaps of individuals

                      Stage Five
       Design training approach and evaluation



                                                       8
TNA for performance gaps




          TNA VG           9
Person Analysis

• Who in the organisation needs training
   – Performance gaps
• How to measure the performance gaps
   – KPI
• What kind of competencies lacking
   – Competency gaps - KSA deficits
• Comparing competencies with standard profile
   – Interviews, observation and documentation
What is KPI in graphic?

Input                       KPI


                            KPI2
After
Before




           Before   After   Output

                                     11   11
Sale per ringgit Advertising

Advertising                    Sales/advertising


                               KPI2
  After
  Before




              Before   After   Sales

                                          12   12
Pulangan terhadap Ekuiti




                           13
Steps in performance based
               TNA
• Identify weak performance areas through Du
  Pont ratio format.
• Conduct job analysis to identify
  incompetencies
• Group incompetencies into core business,
  management skills, technical skills, functional
  skills
• Rank them in order of importance – KRA
  – Using pareto principle
  – Using ROE as sensitivity analysis
Zero to critical competency
             gaps




                              15
The Total Performance Model
                                                                                                                 Sales
                                                                                           Gross Margin

                                                                          Net Profit
                                                       Net Profit
                                                        Margin




                                                                       ÷

                                                                                                               Cost Of
     Return On       Financial                                                                                Goods Sold
                                           Return on
     Net Worth       Leverage               Assets
                                                                     Sales                 Total Expenses


                 =
                                    x                      x
                                                                                                            Inventory

                     Total Assets       Net Profit
                      Net Worth     x     Total
                                         Assets                             Sales
                                                           Asset
                                                          Turnover

                                                                                       Current Assets
                                                                                                              Accts Rec.


                                                                      ÷




                                                                     Total Assets



                                                                                                Fixed       Other Current
16                                                                                              Assets         Assets
PERFORMANCE GAPS
Analysis                   Assess

Analysis   Vision    Key Result Areas Key Result Measures




           Mission




                                                    17
Vision and Strategy




Financial   Customer                 Process    L and G




                       Objectives



                       Measures
                                               Strategy-
                                               Translation
                                               Process
                       Targets



                       Initiatives
Komponen Balanced Scorecard: Strategy Map
                            TO BECOME MALAYSIA’S LEADING INFORMATION AND COMMUNICATIONS SERVICES
                                                                                                                                                              Alignment to PIPV2.0
                            PROVIDER             F1. Increase Shareholder Value                                                                               Key Initiatives
  Perspectives
                                   1 Profitable Revenue Growth                                           2       Effective Cost Management                                Commercial
    Financial




                                                                                                                                                                          Excellence
                                      F2. Higher                                                                                                                         Operational
                                                                F3. Healthy                                              F4. Cost
                                      TM                        Cash Flow                                                                                                Excellence
                                      Profitability                                                                      Efficiency
                                                                                                                                                                          HSBB/NGN
                                                                                                                                                                          Implementation
                                                      3 Delight The Customers And Create Synergy With Partners
                                  Customers: Consumer & Business, Enterprise & Government,                       Partners: (Reseller,Vendor,Govt Agency)                 Relevant
      Customer




                                  SME/Corp.Govt, OLOS, Global Players                                                                                                    Subsidiaries
                                                                                                                                                                         Rationalisation
                                    C1. Innovative                                                           C3. Effective
                                                                       C2. Reliable                          Supply Chain and                 C4. Good
                                    Products and High                                                                                         Corporate                    Create One
                                    Valued Solutions                   Services                              Partner Relationship
                                                                                                             Management                       Citizen                      Company
                                                                                                                                                                           Mindset

                                                              4 Innovation & Service Excellence                                                                            Cut Across
                                                                                                                                                                           All PIP

                               IBP1. Drive                     IBP2. Achieve                        IBP3. Successfully                IBP4. Accelerate
                               Commercial                      Operational                          Implement                         Relevant Subsidiaries
        Internal Business




                               Excellence                      Excellence                           HSBB                              Rationalisation


                                               IBP5. Effective risk                                                IBP6. Optimise
        Process




                                               and regulatory                                                      Manpower &
                                               management                                                          Productivity



                                                                  5 Create One Company Mindset
       Growth
          Org.
    Learning &




                                                                          OLG1. Develop
                                                                          Strategic Skills         OLG2. Ensure Org.
                                                                          and Competencies         Effectiveness
What is a critical skill?
• A critical skill is one that, if not present,
  results in a task not being completed
  satisfactorily, if at all.
• The lack of a critical skill causes problems,
  but the possession of it allows work to
  continue.
• Recognize it by pareto principles or
  sensitivity analysis
                                             20
Analysis and data collection
          on key roles
• Develop job profiles and identify critical
  skills needed for the job role
• Conduct an inventory of current skills
• Evaluate employees’ competencies and
  skill levels




                                               21
Training?




              Training helps to
Existing       bridge the gap     Required
• Skills                          • Skills
• Knowledge                       • Knowledge
• Attitudes                       • Attitudes




                                                22
Training Need Analysis (TNA)




                 TNA is a tool to
Existing         identify the gap       Required
• Skills                                • Skills
• Knowledge                             • Knowledge
• Attitudes                             • Attitudes




                                                      23
TNA (Step 1): Future performance
               What are the goals for the future
               performance of our organisation?

               • profit
               • growth
               • customer base
               • new products
               •?
               •?




Existing                                           Future
performance                                        performance




                                                                 24
TNA (Step 2): Challenges

               What are we concerned about?
               What’re the challenges today?

               What challenges we are likely to
               face in the future?




Existing                                          Future
challenges                                        challenges




                                                               25
Develop job profiles and identify critical skills
          needed for the job role
• Review current position descriptions for
  future needs
• Consider the impact of upcoming statutory
  or regulatory changes on the work
• Take the time to develop a list of
  competencies that most clearly and
  accurately describe what is needed to do
  the work
                                               26
Performance based TNA



      MORE
    EFFICIENT




                        27
How to obtain the needed
     competencies




                           28
Evaluate the relevant job holders

• Review Position descriptions

• Job class specifications

• Detailed Performance evaluations and employee
  assessments

• Interviews/focus group meetings with supervisors,
  managers, and employees


                                                      29
Example of database
                        Critical Skills for existing jobs
                 Critical     critical     critical
Identified job                                           critical skill 4   current employee
                 skill 1      skill 2      skill 3
                 customer                  Responding
                                                         use of ALDER
                 service by                to mail
admin clerk I                 filing/now                     database
                 Telephone                 Requests
                                                             /future
                 /now                       /now




                 Current Employee Skills
                              Use of
                 answering    Spread
Jane Doe                                   type 35 wpm   filing             use of cash register
                 telephone    Sheet
                              programs

                 type 35      Answering                  copy machine       knowledge of Word
Bill Smith                                 cook
                  wpm         telephone                  repair                 program

                                                         knowledge of
                 type 40                   furniture
Bobby Joe                     filing                     AKSAS and          use of cash register
                 wpm                       moving
                                                         Akpay




                                                                                                   30
The required training




                        31
Types of competencies




                        32
Level of competencies




                        33
The benefits of Gap Analysis
• Helps you refine and define skills the
  organisation needs, now and in the future
• Helps your employees know what critical
  skills they’ll need to grow
• Helps you in recruiting efforts when
  current employees don’t have the skills or
  the interest


                                               34
By performance and
    competency gap analysis
• We should obtain the following knowledge
  and skill gaps
  – The types and
  – The level
• Training is to bridge the gaps with the right
  competencies



                                              35
Types and depths of
   competencies




                      36
Steps in training needs




                          37
Evaluating Performance




                         38
Critical Performance Gaps
• Obtain ROE du pont Chart
• Convert figures into KPIs
• Compare with industry best and standards
• Observe trends and variances
• Is the root cause performance or other
  factors?
• Prioritise 4 to 5 performance gaps

                                         39
Steps in critical competency
               gaps
• Compare with best practices
  – Conduct and identify task and sub-task gaps
  – Is the gap caused by lack of competencies
  – Identify the knowledge skills and attitude
    required through Key Result Areas and BSC
    perspectives




                                                  40
Examples of KPIs
                    Education
•   % Of graduates who can find work within 6 months
•   % Of graduates who have received job offers from
    multi-national corporations
•   Publications in international journals ÷ staffs
•   Publications in international journals ÷ research
    projects
•   % Of laboratory equipment in use
•   % Of texts in elective courses that have been
    published in the past 10 years
•   % Of courses that have adapted the use of multi-
    media software
•   % Of incoming students from top-tier high schools

                                                   41
Linking with Analysis/ evaluation
1. Internal analysis/ evaluation (comparison
   with past performance in terms of trend and
   variation, and with the internally-
   established targets, expectation, and
   anticipation)
2. External analysis/ evaluation (comparison
   with standards, benchmarks, industrial
   averages with respect to the industries/
   clusters, benchmarking partners, and
   competitors)
                Performance Management         42
Define the problem – the
               gaps
       Describe Discrepancy

   DESIRED PERFORMANCE (Optimal)
- ACTUAL PERFORMANCE (Actual)

    = POSSIBLE TRAINING NEED


                                   43
Competency Analysis

• What are competencies?
  – Enduring characteristics of a person that
    result in superior on-the-job performance
  – Areas of personal capability that enable
    employees to successfully perform their
    jobs by achieving outcomes or successfully
    performing tasks


                                           44
What is a competency model?

• Identifies the competencies necessary
  for each job as well as the knowledge,
  skills, behavior, and personality
  characteristics underlying each
  competency.




                                       45
ROI
• ROI measures the contribution of a
  program/solution designed in relation to
  the costs or capital involved
• ROI = Value of Benefits – Cost of Training
                 Cost of Training




                                               46
More popular Types of Evaluation

   • Balanced Scorecard (Drs Kaplan and
     Norton),
   • Kirkpatrick Four-Level Framework
     (Kirkpatrick, 1975),
   • Jack Phillips’s Five Levels of Evaluation



                                          47
Donald Kirkpatrick’s Model of
     Evaluation (1979)
• Level 1           Reaction Evaluation
• Level 2           Learning Evaluation
• Level 3           Transfer of Learning
                    Evaluation
• Level 4           Results Evaluation
 This model is also adopted by Singapore Skills
  Development Fund (SDF) for companies’ Training
  Effectiveness Reports to SDF for funding purposes.


                                                       48
What Companies Do With ROI
              Data?
•   Improve program/Process
•   Discontinue/Expand Programs
•   Approve projects (If Pilot)
•   Rank projects
•   Like a front end analysis – to decide whether worthwhile
    to proceed on the training project.
•   Develop Data Base of Program Results
•   Inform/Educate Management
•   Inform/Educate target Groups
•   Build Skills with Staff


                                                           49
Tabulating Cost of the Program

              •   Cost components that should be included
Tabulating        are :
cost of the       •   Travel, lodging, and meal costs for the
 program              participants
                  •   Salaries, plus employee benefits of the
                      participants who attend the training
                  •   Administrative and overhead costs of
                      the training function, allocated in some
                      convenient way
EVALUATE PERFORMANCE




       MOTIVATION
ROI Process
               Inputs
                                             Tabulating
 Before
                                              Training
 training
                                               Costs



               Isolating the   Obtain true    Calculating
Collecting
                  Other         outcome      the Return on
 KPI data
                 Effects                      Investment



 After                                         Calculate
Training                                          IRR


             Outputs
                                                           52
Trend Lines Analysis

                                                          Actual sales performance
                         At the beginning of
                                                                                             The
                          May, a Sales training                                       difference
Volume of Sales




                          Program session was                                        represents
                                             held                                  the estimate
                                                                                       impact of
                                                                                        training.



                                                                   Trend Projection




                  Jan   Feb     Mar      Apr        May     Jun      Jul     Aug
ROI of Training Model

           Isolate the   Convert Data
 Collect
  Data      Effects of   to Monetary
            Training        Values




             Identify
           Intangible    Calculate ROI
            Benefits      of Training




                           Tabulate
                           Program
                            Costs
Instructional Objectives
Why are they important?
• A basis for planning the training
• A roadmap for the learner
• A basis for evaluating effectiveness
  of the training

 Will objectives ever change during the
           delivery of training?

                                          55
Examples of Business Results
• Coca Cola – 8 half-day on supervisory skills
  workshops – 1447% ROI, Benefit/Cost Ratio 15:1
• Yellow Freight System – Performance Appraisal Course
  – 1115% ROI, Benefit/Coast ratio 12:1
• Litton Industries (Avionics) – Self Directed Work Team
  course – Productivity increased 30%, Scrap rate
  reduction 50%, 700% ROI
• Multi-Marques, Inc (Bakery) – 15 hr Supervisory Skills
  Training – 215% ROI, Benefit/Cost Ratio 3.2:1




                                                       56
How do we measure performance
   output as a result of training?
• Isolate the effects by getting before and
  after training performance data.
• Performance data of with and without
  training groups - Jack Phillips
• Input output graphic model



                                              57
Input Output Analysis
• Identify key output for the job to be
  analyzed
• Identify the input variable for the output
  with cause effect relationship
• Compute the KPI by dividing output with
  the input. It is a ratio.
• Obtain before and targeted KPIs and
  insert the actual KPIs in the diagram.
• Separate the value of the output based on
  volume and efficiency.                     58
Example of input output
      dimension for Sales
• Output is net profits in a week RM20,000
• Input is weekly sales figure RM100,000
• The KPI is 0.20 profit per ringgit sales or
  return on sales
• Insert the previous performance KPI which
  may be 0.15 profit per ringgit sales
• The performance gap between the old and
  the new position.
                                            59
Performance levels




                     60
Measuring the Output
•   After Profit 0.20 x 100,000 = 20,000
•   Before Profit 0.15 x 100,000 = 15,000
•   Performance Improvement = 5,000
•   Efficiency improvement
•   Volume improvement




                                            61
Input Output Analysis
• Calculate the total cost of training or
  intervention
• Identify the input and output variable that
  determine performance.
• The relationship must be meaningful
  which has high cause effect relationship
• Isolate the impact of training with the
  following test, with and without, before and
  after.
                                             62
ROI training
ROI =(Value of benefits –cost of training)/Cost of training


Benefit Cost Ratio 71,760 = 2.2:1
                   32,984

ROI (%) = 38,776              = 118%
         32,984


                                                         63
Objective driven Contents
                 Section 1
                   ……..
                   ……..
                   ……..
                   ……..

Objectives         Section 2
                     ……..
  •……..              ……..
                     ……..
  •……..              ……..
                     Section 3
  •……..                   ……..
  •……..                   ……..
                          ……..
                          ……..
                          Section 4
                             ……..
                             ……..
                             ……..
                             ……..




                                      64
DELIVERING CUSTOMISED TRAINING
         SUCCESSFULLY




      “Tell me and I forget, teach
      me and I remember, involve
      me and I learn”

      - Benjamin Franklin




                                     65
“Cone of Experience”
                  People generally remember:
                                   Read
10% of what they read
                                                   Verbal
20% of what they hear           Hear Words


                            Watch still picture
30% of what they see       Watch moving picture
                                                        Visual
50% of what they hear        Watch demonstration
and see
70% of what they                Do a site visit
say or write
                          Do a dramatic presentation        Kinesthetic
90% of what
they say as
                           Simulate a real experience       (Experiential)
they do a thing                Do the real thing


   Adapted from Wiman & Meirhenry, .Educational Media, 1960 on Edgar Dale
If training is the answer….

•   Formal training
•   Self study
•   Technology based
•   Job related/workplace
    approaches




                                     67
Exercises and Activities
Get learners to do something
 whenever possible…
• Hands-on
• Written or oral exercise
• Small and whole group
  interactions
• Role-playing, simulations

  What should the type of activity be
  determined by?
            www.islamicbankingcourses.com   68
What training activities are available?

      Activity                Pros                        Cons
                     Opportunity to                 Does not involve
 Demonstration       provide feedback               everyone
                     Good practice for              May be dominated
 Role Play           participants and               by a few
                     involvement                    participants

                     Good for high                  Passive and not
 Lecture             content if                     stimulating
                     presenter is good

                     Good focus and                 May be dominated
 Case Study          high involvement               by a few
                                                    participants
                     High content and               Low learner
 Panel Discussion    variety of                     involvement
                     perspectives
                    www.islamicbankingcourses.com                      69
Available Training Activities (continued)

    Activities              Pros                       Cons
                    Provide high                Not very
Reading
                    content                     stimulating
                                                Mechanisms must
                    Allow for sensory
                                                be in place to
Field Trips         perception if well
                                                ensure learning
                    structured
                                                happens
                    Highly                      May be dominated
Small Group Tasks   participatory and           by a few
                    task oriented               participants
                    Good focus and              Little participant
Video or Film
                    pre-designed                interaction
                    Highly energizing           May be dominated
Large Group
                    and high                    by a few
Discussion
                    participation               participants`

                    www.islamicbankingcourses.com                    70
Evaluations

• Evaluate based on objectives

• Did the participants:
  – learn what you had planned?
  – implement what they learned?
  – improve their job performance ?


       www.islamicbankingcourses.com   71
After the Class
                   KIRKPATRICK


• Learner evaluations
  – How did they feel about the class?
• Evaluate your delivery
  – How could you improve it?
• Evaluate your materials design
  – How could they be improved?

        www.islamicbankingcourses.com   72
Purpose of Training is to
  Produce Change In…
• Skills
  – how to
  – steps
• Knowledge
  – critical thinking
  – decision making
• Attitudes
  – ethics/values
  – behaviour
                             73
Skills Required to be a Trainer
   • Subject matter expertise
   • Design
      – instructional design
      – apply learning principles
   • Material production
      – graphics, layout, media creation
      – computer experience
   • Presentation
      – voice, personality, technical expertise

                                                  74
Personal Qualities to Look
      For in a Trainer
• Self-confidence         • Ability to listen
                          • Sense of humour
• Awareness of            • Communication &
  environment               theatrical skills
• Ability to build        • Flexibility
  bridges—relate old      • Patience
  to new
                          • Cool head & warm
• Organisational skills
                            heart
• Desire to learn
                                            75
TNA steps
• Using KPI identify Critical Performance
  gaps ( ROE format )
• Critical Competency gaps of key persons
• Best practices shall determine key
  competencies
• Effective Delivery strategies
• ROI / IRR training (justifying)

                                            76
Steps in TNA
1. Determine target performance and
   measure gaps with current.
2. With performance gaps asses employee
   competency gaps.
3. Determine strategies to deliver
   competencies
4. Justifying training

                                          77
The bigger picture

          Organisational performance




          Employee performance



          Employee Skills, Knowledge and Attitudes



          Employee education, experience and training



                                              78
Cause              Solution
• If skill or knowledge……….training
• If lack feedback……………..feedback, standards
• If not motivated…………….rewards,
  consequences
• If unclear expectations…..std, measure, discuss
• If job environment…………change environment
• If potential……………………change personnel
TNA (Step 4): New Skills, knowledge and
                     Attitudes
               In order for our employees to
               perform differently, what kind of
               new Skills, Knowledge and
               Attitudes they need to have?




Existing                                           Required
•Skills                                            • Skills
•Knowledge                                         • Knowledge
•Attitudes                                         • Attitudes




                                                                 80
TNA (Step 5): Training needs

                 Now that we know what kind of
                 new Skills, knowledge and
                 Attitudes are required for our
                 employees, how can we bridge the
                 gap?




Existing                                            Required
•Skills                                             • Skills
•Knowledge                                          • Knowledge
•Attitudes                                          • Attitudes




                                                                  81
TNA in essence…

1   Start with future organisational goals and challenges


        Assess required employee performance to meet the
    2   goals and challenges

            Assess required employee Skills, Knowledge and Attitudes to
            deliver the performance
        3

                Identify employee training needs to
                bridge the gap
            4



                                                                    82
TNA steps - to recap
• Establish future goals
• Measure past and future performance
  gaps – identify critical gaps
• Perform competency gap analysis on
  relevant staff
• Is training the necessary intervention?
• Alternative delivery strategies
• Justifying training strategies
                                            83
INTERNAL PROCESS
INPUT         PROCESS           OUTPUT     OUTCOME

Material      variances
Labour
Overhead      Efficiency        No         Average
              ratios            produced   cost per
                                           transaction


Research      Productivity      Value      ROI
dev           ratios            produced
expense


Inventory     Average
turnover      lead time


              Waste Reduction
                                                    84
HRM KPIs
INPUT        PROCESS           OUTPUT           OUTCOME

Incentives   variances         Turnover ratio


Hours        Efficiency        No               Profit per
             ratios            produced         employee


Training     Productivity      Value            ROI
             ratios            produced


Salary       Average           Turnover         Revenue per
             lead time                          employee


Skill        Waste Reduction   Employee         Value added per
competency                     productivity     employee

                                                              85
FINANCIAL KPIs
INPUT       PROCESS           OUTPUT     OUTCOME

Material    variances
Labour
Overhead    Efficiency        No         Average
            ratios            produced   cost per
                                         transaction


Research    Productivity      Value      ROI
dev         ratios            produced
expense


Inventory   Average                      RETURN
turnover    lead time                    ON
                                         EQUITY


            Waste Reduction                       86
INTERNAL PROCESS
INPUT         PROCESS           OUTPUT     OUTCOME

Material      variances
Labour
Overhead      Efficiency        No         Average
              ratios            produced   cost per
                                           transaction


Research      Productivity      Value      ROI
dev           ratios            produced
expense


Inventory     Average
turnover      lead time


              Waste Reduction
                                                    87
MARKETING
INPUT          PROCESS             OUTPUT                 OUTCOME

Material       Response rate       No of customers
Labour         Marketing costs %   Sales volume
Overhead       Efficiency ratios   Customers
                                   Profitability


Research       Productivity        Product                ROA
dev            ratios              profitability          marketing
expense
               Average cost per    Customer acquisition   Return on
               transaction                                Sales

Inventory      Average lead time   Customer retention
turnover


Price rel to   Waste Reduction     Revenue growth                     88
comp
Analysis and Improvement
            Basics
Internal Analysis:
• Trends: Individuals, Cross-examination, and Overall (with
MCPMT)
• Target Comparison
External Analysis:
• Benchmarking
• Standard Comparisons




                                                              89
Ratio-format Measures
                         Private Firm

   Upstream      Input    Process       Outputs    Downstrea
                   s         es                       m

Suppliers     Staffs     Planning   Products      Revenue and
                                                  Profit
Subcontracto Instrument Procurement Services
rs           s and                  after         Quality of
                        Approval
             Equipment              Sales         Services
                        Production                (Replacement,
             Facility               Reports
                                                  Repairs, Return,
                        Inspection and
             Capital                              Recall, etc.)
                                    Document
                        Warehousin
             Utilities              s             Customer
                        g
                                                  Satisfaction
             Raw
                        Delivery
             Materials                            Regulatory
                                                                 90
                                                  Compliance
Ratio-format Measures
                          University

   Upstream     Inputs    Processes    Outputs      Downstream


High Schools Staffs      Teaching      Graduates    Qualifications
                                                    for Workplace
Suppliers     Students   Approval      Research
                                                    Suitable Skills
SubcontractorsInstrumentsExperiments Reports
                                     and            Employment
Budget BureauFacility    Review
                                     Documents
                                                    Continuous
              Budget     Planning
                                     Seminars       Education
              Utilities  Procurement
                                     Intellectual   Publications
                                     Properties
                                                    Revenue
                                                                 91
Ongoing Research in the Area of Performance
Measurement:
• Verification of Sink’s Hypothetical
Interrelationships among 7 Performance
Criteria with MCPMT
• Guidelines for Selecting and Utilizing KPIs
for Monitoring and Evaluation
• White-collar Productivity Measurement within
the Context of Performance-based Contracts
(or Performance Agreements)

                                                92
The End

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Training Needs Analysis 350

  • 1. Training Need Analysis By ARRIFFIN MANSOR Atul©Mathur 2009 www.atulmathur.com
  • 2. Training Need Analysis A corporate approach Arriffin Mansor 2
  • 3. Challenges for the Industry • 1. What are the Training Needs ? • 2.What are the Training Objectives ? • 3. What are the Instructional Principles ? • 4.What should the Course Content be ? • 5.How should the Content be delivered ? • 6.How should the outcomes be Evaluated ? • 7.What makes a good Trainer ? 3
  • 5. Training Development Process Performance gaps Competency gaps Training needs ROI training 5
  • 7. Training Need Analysis Competency Identify Performance Training Gap Analysis gaps Training Analysis Delivery Needs over the Cluster and On the job financial Person combine or off the Statements competency competency job training comparing Profiling gaps into options against against best standards core and practices other competencies
  • 8. Model of Training Needs Analysis Stage One Establish organisation’s commitment and direction Stage Two Organisational Performance Analysis Stage Three Gap Analysis on weak performance areas Stage Four Identify Competency Gaps of individuals Stage Five Design training approach and evaluation 8
  • 9. TNA for performance gaps TNA VG 9
  • 10. Person Analysis • Who in the organisation needs training – Performance gaps • How to measure the performance gaps – KPI • What kind of competencies lacking – Competency gaps - KSA deficits • Comparing competencies with standard profile – Interviews, observation and documentation
  • 11. What is KPI in graphic? Input KPI KPI2 After Before Before After Output 11 11
  • 12. Sale per ringgit Advertising Advertising Sales/advertising KPI2 After Before Before After Sales 12 12
  • 14. Steps in performance based TNA • Identify weak performance areas through Du Pont ratio format. • Conduct job analysis to identify incompetencies • Group incompetencies into core business, management skills, technical skills, functional skills • Rank them in order of importance – KRA – Using pareto principle – Using ROE as sensitivity analysis
  • 15. Zero to critical competency gaps 15
  • 16. The Total Performance Model Sales Gross Margin Net Profit Net Profit Margin ÷ Cost Of Return On Financial Goods Sold Return on Net Worth Leverage Assets Sales Total Expenses = x x Inventory Total Assets Net Profit Net Worth x Total Assets Sales Asset Turnover Current Assets Accts Rec. ÷ Total Assets Fixed Other Current 16 Assets Assets
  • 17. PERFORMANCE GAPS Analysis Assess Analysis Vision Key Result Areas Key Result Measures Mission 17
  • 18. Vision and Strategy Financial Customer Process L and G Objectives Measures Strategy- Translation Process Targets Initiatives
  • 19. Komponen Balanced Scorecard: Strategy Map TO BECOME MALAYSIA’S LEADING INFORMATION AND COMMUNICATIONS SERVICES Alignment to PIPV2.0 PROVIDER F1. Increase Shareholder Value Key Initiatives Perspectives 1 Profitable Revenue Growth 2 Effective Cost Management Commercial Financial Excellence F2. Higher Operational F3. Healthy F4. Cost TM Cash Flow Excellence Profitability Efficiency HSBB/NGN Implementation 3 Delight The Customers And Create Synergy With Partners Customers: Consumer & Business, Enterprise & Government, Partners: (Reseller,Vendor,Govt Agency) Relevant Customer SME/Corp.Govt, OLOS, Global Players Subsidiaries Rationalisation C1. Innovative C3. Effective C2. Reliable Supply Chain and C4. Good Products and High Corporate Create One Valued Solutions Services Partner Relationship Management Citizen Company Mindset 4 Innovation & Service Excellence Cut Across All PIP IBP1. Drive IBP2. Achieve IBP3. Successfully IBP4. Accelerate Commercial Operational Implement Relevant Subsidiaries Internal Business Excellence Excellence HSBB Rationalisation IBP5. Effective risk IBP6. Optimise Process and regulatory Manpower & management Productivity 5 Create One Company Mindset Growth Org. Learning & OLG1. Develop Strategic Skills OLG2. Ensure Org. and Competencies Effectiveness
  • 20. What is a critical skill? • A critical skill is one that, if not present, results in a task not being completed satisfactorily, if at all. • The lack of a critical skill causes problems, but the possession of it allows work to continue. • Recognize it by pareto principles or sensitivity analysis 20
  • 21. Analysis and data collection on key roles • Develop job profiles and identify critical skills needed for the job role • Conduct an inventory of current skills • Evaluate employees’ competencies and skill levels 21
  • 22. Training? Training helps to Existing bridge the gap Required • Skills • Skills • Knowledge • Knowledge • Attitudes • Attitudes 22
  • 23. Training Need Analysis (TNA) TNA is a tool to Existing identify the gap Required • Skills • Skills • Knowledge • Knowledge • Attitudes • Attitudes 23
  • 24. TNA (Step 1): Future performance What are the goals for the future performance of our organisation? • profit • growth • customer base • new products •? •? Existing Future performance performance 24
  • 25. TNA (Step 2): Challenges What are we concerned about? What’re the challenges today? What challenges we are likely to face in the future? Existing Future challenges challenges 25
  • 26. Develop job profiles and identify critical skills needed for the job role • Review current position descriptions for future needs • Consider the impact of upcoming statutory or regulatory changes on the work • Take the time to develop a list of competencies that most clearly and accurately describe what is needed to do the work 26
  • 27. Performance based TNA MORE EFFICIENT 27
  • 28. How to obtain the needed competencies 28
  • 29. Evaluate the relevant job holders • Review Position descriptions • Job class specifications • Detailed Performance evaluations and employee assessments • Interviews/focus group meetings with supervisors, managers, and employees 29
  • 30. Example of database Critical Skills for existing jobs Critical critical critical Identified job critical skill 4 current employee skill 1 skill 2 skill 3 customer Responding use of ALDER service by to mail admin clerk I filing/now database Telephone Requests /future /now /now Current Employee Skills Use of answering Spread Jane Doe type 35 wpm filing use of cash register telephone Sheet programs type 35 Answering copy machine knowledge of Word Bill Smith cook wpm telephone repair program knowledge of type 40 furniture Bobby Joe filing AKSAS and use of cash register wpm moving Akpay 30
  • 34. The benefits of Gap Analysis • Helps you refine and define skills the organisation needs, now and in the future • Helps your employees know what critical skills they’ll need to grow • Helps you in recruiting efforts when current employees don’t have the skills or the interest 34
  • 35. By performance and competency gap analysis • We should obtain the following knowledge and skill gaps – The types and – The level • Training is to bridge the gaps with the right competencies 35
  • 36. Types and depths of competencies 36
  • 37. Steps in training needs 37
  • 39. Critical Performance Gaps • Obtain ROE du pont Chart • Convert figures into KPIs • Compare with industry best and standards • Observe trends and variances • Is the root cause performance or other factors? • Prioritise 4 to 5 performance gaps 39
  • 40. Steps in critical competency gaps • Compare with best practices – Conduct and identify task and sub-task gaps – Is the gap caused by lack of competencies – Identify the knowledge skills and attitude required through Key Result Areas and BSC perspectives 40
  • 41. Examples of KPIs Education • % Of graduates who can find work within 6 months • % Of graduates who have received job offers from multi-national corporations • Publications in international journals ÷ staffs • Publications in international journals ÷ research projects • % Of laboratory equipment in use • % Of texts in elective courses that have been published in the past 10 years • % Of courses that have adapted the use of multi- media software • % Of incoming students from top-tier high schools 41
  • 42. Linking with Analysis/ evaluation 1. Internal analysis/ evaluation (comparison with past performance in terms of trend and variation, and with the internally- established targets, expectation, and anticipation) 2. External analysis/ evaluation (comparison with standards, benchmarks, industrial averages with respect to the industries/ clusters, benchmarking partners, and competitors) Performance Management 42
  • 43. Define the problem – the gaps Describe Discrepancy DESIRED PERFORMANCE (Optimal) - ACTUAL PERFORMANCE (Actual) = POSSIBLE TRAINING NEED 43
  • 44. Competency Analysis • What are competencies? – Enduring characteristics of a person that result in superior on-the-job performance – Areas of personal capability that enable employees to successfully perform their jobs by achieving outcomes or successfully performing tasks 44
  • 45. What is a competency model? • Identifies the competencies necessary for each job as well as the knowledge, skills, behavior, and personality characteristics underlying each competency. 45
  • 46. ROI • ROI measures the contribution of a program/solution designed in relation to the costs or capital involved • ROI = Value of Benefits – Cost of Training Cost of Training 46
  • 47. More popular Types of Evaluation • Balanced Scorecard (Drs Kaplan and Norton), • Kirkpatrick Four-Level Framework (Kirkpatrick, 1975), • Jack Phillips’s Five Levels of Evaluation 47
  • 48. Donald Kirkpatrick’s Model of Evaluation (1979) • Level 1 Reaction Evaluation • Level 2 Learning Evaluation • Level 3 Transfer of Learning Evaluation • Level 4 Results Evaluation This model is also adopted by Singapore Skills Development Fund (SDF) for companies’ Training Effectiveness Reports to SDF for funding purposes. 48
  • 49. What Companies Do With ROI Data? • Improve program/Process • Discontinue/Expand Programs • Approve projects (If Pilot) • Rank projects • Like a front end analysis – to decide whether worthwhile to proceed on the training project. • Develop Data Base of Program Results • Inform/Educate Management • Inform/Educate target Groups • Build Skills with Staff 49
  • 50. Tabulating Cost of the Program • Cost components that should be included Tabulating are : cost of the • Travel, lodging, and meal costs for the program participants • Salaries, plus employee benefits of the participants who attend the training • Administrative and overhead costs of the training function, allocated in some convenient way
  • 51. EVALUATE PERFORMANCE MOTIVATION
  • 52. ROI Process Inputs Tabulating Before Training training Costs Isolating the Obtain true Calculating Collecting Other outcome the Return on KPI data Effects Investment After Calculate Training IRR Outputs 52
  • 53. Trend Lines Analysis Actual sales performance At the beginning of The May, a Sales training difference Volume of Sales Program session was represents held the estimate impact of training. Trend Projection Jan Feb Mar Apr May Jun Jul Aug
  • 54. ROI of Training Model Isolate the Convert Data Collect Data Effects of to Monetary Training Values Identify Intangible Calculate ROI Benefits of Training Tabulate Program Costs
  • 55. Instructional Objectives Why are they important? • A basis for planning the training • A roadmap for the learner • A basis for evaluating effectiveness of the training Will objectives ever change during the delivery of training? 55
  • 56. Examples of Business Results • Coca Cola – 8 half-day on supervisory skills workshops – 1447% ROI, Benefit/Cost Ratio 15:1 • Yellow Freight System – Performance Appraisal Course – 1115% ROI, Benefit/Coast ratio 12:1 • Litton Industries (Avionics) – Self Directed Work Team course – Productivity increased 30%, Scrap rate reduction 50%, 700% ROI • Multi-Marques, Inc (Bakery) – 15 hr Supervisory Skills Training – 215% ROI, Benefit/Cost Ratio 3.2:1 56
  • 57. How do we measure performance output as a result of training? • Isolate the effects by getting before and after training performance data. • Performance data of with and without training groups - Jack Phillips • Input output graphic model 57
  • 58. Input Output Analysis • Identify key output for the job to be analyzed • Identify the input variable for the output with cause effect relationship • Compute the KPI by dividing output with the input. It is a ratio. • Obtain before and targeted KPIs and insert the actual KPIs in the diagram. • Separate the value of the output based on volume and efficiency. 58
  • 59. Example of input output dimension for Sales • Output is net profits in a week RM20,000 • Input is weekly sales figure RM100,000 • The KPI is 0.20 profit per ringgit sales or return on sales • Insert the previous performance KPI which may be 0.15 profit per ringgit sales • The performance gap between the old and the new position. 59
  • 61. Measuring the Output • After Profit 0.20 x 100,000 = 20,000 • Before Profit 0.15 x 100,000 = 15,000 • Performance Improvement = 5,000 • Efficiency improvement • Volume improvement 61
  • 62. Input Output Analysis • Calculate the total cost of training or intervention • Identify the input and output variable that determine performance. • The relationship must be meaningful which has high cause effect relationship • Isolate the impact of training with the following test, with and without, before and after. 62
  • 63. ROI training ROI =(Value of benefits –cost of training)/Cost of training Benefit Cost Ratio 71,760 = 2.2:1 32,984 ROI (%) = 38,776 = 118% 32,984 63
  • 64. Objective driven Contents Section 1 …….. …….. …….. …….. Objectives Section 2 …….. •…….. …….. …….. •…….. …….. Section 3 •…….. …….. •…….. …….. …….. …….. Section 4 …….. …….. …….. …….. 64
  • 65. DELIVERING CUSTOMISED TRAINING SUCCESSFULLY “Tell me and I forget, teach me and I remember, involve me and I learn” - Benjamin Franklin 65
  • 66. “Cone of Experience” People generally remember: Read 10% of what they read Verbal 20% of what they hear Hear Words Watch still picture 30% of what they see Watch moving picture Visual 50% of what they hear Watch demonstration and see 70% of what they Do a site visit say or write Do a dramatic presentation Kinesthetic 90% of what they say as Simulate a real experience (Experiential) they do a thing Do the real thing Adapted from Wiman & Meirhenry, .Educational Media, 1960 on Edgar Dale
  • 67. If training is the answer…. • Formal training • Self study • Technology based • Job related/workplace approaches 67
  • 68. Exercises and Activities Get learners to do something whenever possible… • Hands-on • Written or oral exercise • Small and whole group interactions • Role-playing, simulations What should the type of activity be determined by? www.islamicbankingcourses.com 68
  • 69. What training activities are available? Activity Pros Cons Opportunity to Does not involve Demonstration provide feedback everyone Good practice for May be dominated Role Play participants and by a few involvement participants Good for high Passive and not Lecture content if stimulating presenter is good Good focus and May be dominated Case Study high involvement by a few participants High content and Low learner Panel Discussion variety of involvement perspectives www.islamicbankingcourses.com 69
  • 70. Available Training Activities (continued) Activities Pros Cons Provide high Not very Reading content stimulating Mechanisms must Allow for sensory be in place to Field Trips perception if well ensure learning structured happens Highly May be dominated Small Group Tasks participatory and by a few task oriented participants Good focus and Little participant Video or Film pre-designed interaction Highly energizing May be dominated Large Group and high by a few Discussion participation participants` www.islamicbankingcourses.com 70
  • 71. Evaluations • Evaluate based on objectives • Did the participants: – learn what you had planned? – implement what they learned? – improve their job performance ? www.islamicbankingcourses.com 71
  • 72. After the Class KIRKPATRICK • Learner evaluations – How did they feel about the class? • Evaluate your delivery – How could you improve it? • Evaluate your materials design – How could they be improved? www.islamicbankingcourses.com 72
  • 73. Purpose of Training is to Produce Change In… • Skills – how to – steps • Knowledge – critical thinking – decision making • Attitudes – ethics/values – behaviour 73
  • 74. Skills Required to be a Trainer • Subject matter expertise • Design – instructional design – apply learning principles • Material production – graphics, layout, media creation – computer experience • Presentation – voice, personality, technical expertise 74
  • 75. Personal Qualities to Look For in a Trainer • Self-confidence • Ability to listen • Sense of humour • Awareness of • Communication & environment theatrical skills • Ability to build • Flexibility bridges—relate old • Patience to new • Cool head & warm • Organisational skills heart • Desire to learn 75
  • 76. TNA steps • Using KPI identify Critical Performance gaps ( ROE format ) • Critical Competency gaps of key persons • Best practices shall determine key competencies • Effective Delivery strategies • ROI / IRR training (justifying) 76
  • 77. Steps in TNA 1. Determine target performance and measure gaps with current. 2. With performance gaps asses employee competency gaps. 3. Determine strategies to deliver competencies 4. Justifying training 77
  • 78. The bigger picture Organisational performance Employee performance Employee Skills, Knowledge and Attitudes Employee education, experience and training 78
  • 79. Cause Solution • If skill or knowledge……….training • If lack feedback……………..feedback, standards • If not motivated…………….rewards, consequences • If unclear expectations…..std, measure, discuss • If job environment…………change environment • If potential……………………change personnel
  • 80. TNA (Step 4): New Skills, knowledge and Attitudes In order for our employees to perform differently, what kind of new Skills, Knowledge and Attitudes they need to have? Existing Required •Skills • Skills •Knowledge • Knowledge •Attitudes • Attitudes 80
  • 81. TNA (Step 5): Training needs Now that we know what kind of new Skills, knowledge and Attitudes are required for our employees, how can we bridge the gap? Existing Required •Skills • Skills •Knowledge • Knowledge •Attitudes • Attitudes 81
  • 82. TNA in essence… 1 Start with future organisational goals and challenges Assess required employee performance to meet the 2 goals and challenges Assess required employee Skills, Knowledge and Attitudes to deliver the performance 3 Identify employee training needs to bridge the gap 4 82
  • 83. TNA steps - to recap • Establish future goals • Measure past and future performance gaps – identify critical gaps • Perform competency gap analysis on relevant staff • Is training the necessary intervention? • Alternative delivery strategies • Justifying training strategies 83
  • 84. INTERNAL PROCESS INPUT PROCESS OUTPUT OUTCOME Material variances Labour Overhead Efficiency No Average ratios produced cost per transaction Research Productivity Value ROI dev ratios produced expense Inventory Average turnover lead time Waste Reduction 84
  • 85. HRM KPIs INPUT PROCESS OUTPUT OUTCOME Incentives variances Turnover ratio Hours Efficiency No Profit per ratios produced employee Training Productivity Value ROI ratios produced Salary Average Turnover Revenue per lead time employee Skill Waste Reduction Employee Value added per competency productivity employee 85
  • 86. FINANCIAL KPIs INPUT PROCESS OUTPUT OUTCOME Material variances Labour Overhead Efficiency No Average ratios produced cost per transaction Research Productivity Value ROI dev ratios produced expense Inventory Average RETURN turnover lead time ON EQUITY Waste Reduction 86
  • 87. INTERNAL PROCESS INPUT PROCESS OUTPUT OUTCOME Material variances Labour Overhead Efficiency No Average ratios produced cost per transaction Research Productivity Value ROI dev ratios produced expense Inventory Average turnover lead time Waste Reduction 87
  • 88. MARKETING INPUT PROCESS OUTPUT OUTCOME Material Response rate No of customers Labour Marketing costs % Sales volume Overhead Efficiency ratios Customers Profitability Research Productivity Product ROA dev ratios profitability marketing expense Average cost per Customer acquisition Return on transaction Sales Inventory Average lead time Customer retention turnover Price rel to Waste Reduction Revenue growth 88 comp
  • 89. Analysis and Improvement Basics Internal Analysis: • Trends: Individuals, Cross-examination, and Overall (with MCPMT) • Target Comparison External Analysis: • Benchmarking • Standard Comparisons 89
  • 90. Ratio-format Measures Private Firm Upstream Input Process Outputs Downstrea s es m Suppliers Staffs Planning Products Revenue and Profit Subcontracto Instrument Procurement Services rs s and after Quality of Approval Equipment Sales Services Production (Replacement, Facility Reports Repairs, Return, Inspection and Capital Recall, etc.) Document Warehousin Utilities s Customer g Satisfaction Raw Delivery Materials Regulatory 90 Compliance
  • 91. Ratio-format Measures University Upstream Inputs Processes Outputs Downstream High Schools Staffs Teaching Graduates Qualifications for Workplace Suppliers Students Approval Research Suitable Skills SubcontractorsInstrumentsExperiments Reports and Employment Budget BureauFacility Review Documents Continuous Budget Planning Seminars Education Utilities Procurement Intellectual Publications Properties Revenue 91
  • 92. Ongoing Research in the Area of Performance Measurement: • Verification of Sink’s Hypothetical Interrelationships among 7 Performance Criteria with MCPMT • Guidelines for Selecting and Utilizing KPIs for Monitoring and Evaluation • White-collar Productivity Measurement within the Context of Performance-based Contracts (or Performance Agreements) 92

Editor's Notes

  1. Cite: Edgar Dale, AudioVisual Methods of Teaching , 1946. Sight=charts, diagrams, slides, demos Hear=discussions, Q&A, group projects, AV Do=supervised practice, group projects, role playing, writing Create a variety of sensory input Because…. Senses work together The best way to master a skill is to teach it The more senses you make your learners use, the faster they learn and the longer they remember it. EVEN if you do all of this right, there are still other factors to consider.
  2. Purpose Can help you improve your training design During & After training Consider: 1. Reactions from the trainees Do they like it? Was the material relevant to their work? 2. What learning took place as a result of the training? Skills, knowledge, attitude? Tips Be clear on how the eval info will be used Use clear questions Relate each question to the purpose of the eval Ask for specific comments Provide enough space and time to complete eval Ask Them—how do you evaluate your training? HANDOUT--Evaluation Point out 4 levels-
  3. DO THE FLIPCHART while this slide is up of topics they teach and look at whether they need to change SKA For example—Catalog training Get feedback Transition—Your training will fall in one of these 3 categories. SKA S=physical, operate, manipulate, eye-hand coordination, typing, operate machinery K=cognitive, learning applying rules or knowledge, making decisions, recalling information A=values, behavior, customer service, ethics, emotional intelligence Remind them that different techniques are needed to do soft skills –attitude training then step-by-step In this workshop Knowledge is – “Training is a Process” Skills is Using design form, doing needs assessment, writing objective Attitude – modeling good behavior, it can be fun.
  4. Ask if subject matter expertise is most important – then say NO! Nordstrom’s philosophy – hire the personality, train the skill Maybe Have them take out the Phases of Training handout to see the different parts of the process and prove that these skills are required As a trainer, you also need certain skills. You need to know your material Be aware that you may have different levels of knowledge of the topic in the audience. Some know nothing, some recognize the topic but can’t recall anything about it, some may know enough to talk about it. You should be able to talk at the right level so that the audience understands you. Design & Development addresses how we will organize that material and what materials are need to get the points across. Material production—technical knowledge is needed to create handouts and exercises Before next slide: What do you think is the worst human fear in the US? “ Speaking before a group” David Wallechinsky The Book of Lists
  5. Do this on a flip chart – ask them first and then show the points on the slide.You are the agent for change and create a positive learning environment. What qualities do you think are necessary to be a great trainer? Self-confidence—be conscious of your personal style (the way you interpret, organize & package your topic) Be aware of your biases, attitudes & language choices Awareness of environment e.g. working environ & training environ Build bridges—what can be kept from the old and/or needs to be changed for the new Others: Fairness Q&A skills—open & closed questions Giving good answers What about you? What training qualities do YOU possess. 1. Which ones would you keep? 2. Which need improvement?