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

1. STRATEGIC LEARNING & DEVELOPMENT AND L&D METRICS -
TRANSFORMING TRAINING INTO A STRATEGIC LEARNING PARTNER
CHARLES COTTER PhD, MBA, B.A (Hons), B.A
www.slideshare.net/CharlesCotter
CARDOSO HOTEL, MAPUTO
2-4 JULY 2018

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

3. AGREE OR DISAGREE?
WHY?

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. 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. 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”

7. OBJECTIVE #1:
TRAINING CYCLE/PROCESS

9. 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

10. CRITICAL SUCCESS
FACTOR:
INTEGRATION AND
ALIGNMENT

11. DEFINITION OF
LEARNING AND
DEVELOPMENT

12. 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.

16. 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).

17. 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

19. 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

21. KEY COMPONENTS OF THE STRATEGIC L&D
FRAMEWORK
• Enablers
• Inputs
• Transformation
• Outputs
• Business Environment
• Foundation
• Strategic L&D Scorecard (Refer to Annexure A)

22. 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%)

23. 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

24. 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

25. 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

26. 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

27. 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)

28. 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)

29. 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)

30. 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

33. 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

35. 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:
https://www.surveymonkey.com/r/VSLVTHX
• Identify gaps and recommend improvement
strategies.
• Refer to the research findings:
https://www.linkedin.com/pulse/reality-
check-chief-human-resources-officers-africa-
hrm-cotter-phd/

36. 0
2
4
6
8
10
12
STRATEGIC LEARNING PARTNER
41-50 51-60 61-70 71-80 81-90

37. 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%

38. 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%

39. 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%)

40. SABPP HR AUDITED RATINGS
(X39 COMPANIES)

42. 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.

43. 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.

45. “As Learning and Development professionals, let's
liberate the learning like true revolutionaries."
(Charles Cotter, 7 June 2017)

47. 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.

48. 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

49. 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

51. 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.

52. 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);

53. 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.

54. OBJECTIVE #2:
Applying strategic principles to the ADDIE process

56. 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

57. 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)

58. EFFECTIVE LEARNING CONTENT

60. LEARNING DESIGN ALIGNMENT

61. 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)

64. VALUE/USEFULNESS OF LEARNING DELIVERY METHODS –
7TH ANNUAL LEARNING IN THE WORKPLACE SURVEY
(N=5 500)

65. IMPLEMENTATION
•Required Thinking – Postman, because they always
deliver
•Due diligence to verify competence of trainers
•Ethics of S.A trainers

66. "Diligently serve the S.A training industry and the
S.A training industry will diligently serve you."
(Charles Cotter, 26 May 2017)

67. 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:
https://www.surveymonkey.com/r/5B7XLPD
• Identify gaps and recommend improvement
strategies.
• Refer to the research findings:
https://www.linkedin.com/pulse/reality-
check-chief-human-resources-officers-africa-
hrm-cotter-phd/

68. 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

69. 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%

70. 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%

71. 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

72. 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.

73. WORKSHOP #3:
Training Evaluation and ROI

75. AGREE OR DISAGREE?
WHY?

77. TRAINING EVALUATION – KIRKPATRICK (4-LEVELS) AND PHILLIPS (5-
LEVELS)

78. LEVELS OF LEARNING EVALUATION

79. 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

80. 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.

81. BALANCED
SCORECARD

83. EXAMPLE:
STRATEGY
MAP

84. EXAMPLE:
STRATEGY
MAP

85. 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

86. 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.

87. ILLUSTRATION: TRAINING ROI PROCESS

88. 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

89. 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

90. 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

91. 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

92. 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

95. 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)

96. CATEGORIES OF L&D METRICS

97. 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

98. 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.

99. 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.

100. 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

101. TRAINING ROI
SCORECARD/REPORT
Executive Summary
Introduction and Contextualization
Analysis and Results
Recommendations and Training Improvement
Plan
Conclusion
Reference to Attachments

102. THE 5 E’s OF L&D
ANALYTICS
• Exploration
• Examination
• Extraction
• Evaluation
• Extrapolation

103. 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.

104. WORKSHOP #4:
Skills Auditing – principles and process

106. 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

107. 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.

108. 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.

109. V-I-P SKILLS AUDITING
• Valid (accurate and correct
measurement)
• Interrogative (3rd degree)
• Protective (against HR, people and
reputational risks)

113. 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

114. 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

115. 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:
https://www.surveymonkey.com/r/3YZD
G8F
• Group Discussion:
• Identify gaps and recommend
improvement strategies to address these
process gaps.

116. 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

117. 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%

118. 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%

119. 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

120. COST-BENEFIT ANALYSIS FOR SKILLS AUDITS

121. 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.

122. 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

123. 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.

124. 5 C’s – THE KEY BENEFITS OF A
SKILLS AUDIT
• Compliance
+
• Competitive
+
• Cash
+
• Credibility
+
• Competence
= Clean Skills Audit

125. COSTS OF SKILLS AUDITS
• Training
• Time
• Administrative expenses (e.g. stationery)
• Information system/software
• Communication
• Use of consultants (where necessary)

126. 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

127. SUB-COMPONENTS OF COMPETENCE

128. 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.

129. MEASURING COMPETENCE

130. PERFORMANCE-BASED TRAINING PROGRAMMES

131. 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

132. EVIDENCE
• Types of evidence:
❑Direct
❑Indirect
❑Historical
• Evaluation of evidence (VACCS):
❑Validity
❑Authenticity
❑Consistency
❑Currency
❑Sufficiency

133. SKILLS AUDITING PROCESS – ILLUSTRATED

134. SKILLS AUDITING
PROCESS
• Step 1: Determine Skills
Requirements
• Step 2: Audit actual skills
• Step 3: Determine development
needs and plan for
training/restructuring

135. 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

136. SAMPLE OF SKILLS MATRIX

137. SAMPLE OF SKILLS MATRIX

138. 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

139. HIERARCHY OF SKILLS

140. 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.

141. 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.

142. 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

143. 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.

144. LEARNING ACTIVITY 8
• Group Discussion:
• Apply steps 1-3 of the
skills audit process, to a
defined organizational
context.

148. LEARNING ACTIVITY 9
• Group Discussion:
• Describe how you can
create a HILO culture in your
organization.

150. LEARNING INTEGRATION –
CASE STUDIES (ACTIVITY 10)
• Apply the theoretical
principles to the following
two (2) case studies:
❑Chubb
❑Portakabin

151. 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?

152. 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:

153. CONCLUSION
• Key points
• Summary
• Questions
• Training Certification

154. CONTACT DETAILS
• Dr. Charles Cotter
• (+27) 84 562 9446
• charlescot@polka.co.za
• LinkedIn
• Twitter: @Charles_Cotter
• https://www.facebook.com/CharlesACotter/
• http://www.slideshare.net/CharlesCotter