2011
Update on Talent Development Reporting Principles
Here’s an update about recent developments on Talent Development Reporting Principles copied (with permission) from an email sent by Kent Barnett (CEO of KnowledgeAdvisors) to a group of individuals who have been involved (to varying degrees) in their creation:
CLO Symposium Luncheon: We have an invitation-only TDR luncheon scheduled at the CLO Symposium on October 12th from 11:00 am to 12:30 pm. The event is targeted for senior learning executives to learn more about TDR. CLO Magazine will be promoting it starting next week. Tamar [Elkeles], Dave Vance, Carrie Beckstrom and I will be there. There is no cost to attend. If you are attending the Symposium and interested in joining us, please let me know.
Major Accounting Firm Support: Deloitte and KPMG have committed to implementing TDR. Terry Bickham from Deloitte is leading the effort at Deloitte to explore offering an internal audit service.
ASTD and SHRM Support: Dave Vance and I had a great conversation with Tony Bingham who expressed complete support for the initiative. ASTD is incorporating TDR in some of its certification programs. Dave and Tony will be working together to expand its support. Laurie Bassi’s initiative at SHRM to get a FASB for Human Capital investments is moving ahead nicely. Dave and I are part of that initiative which ties in perfectly with TDR.
Leadership, Onboarding and Sales Training Programs: Several KnowledgeAdvisors clients are incorporating TDR in their strategic programs. With their help we have developed automated solutions for statements, scorecards, dashboards and executive reports based on TDR but designed specifically for Leadership, Onboarding and Sales Training. There is growing demand to apply TDR for customer education, IT and customer service. We will be building out those capabilities in Metrics that Matter as well.
Implementation Expansion: The following leading organizations are participating as a group in the next round of implementing TDR: ExxonMobil, Booz Allen, KPMG, Air Products, Pepsi, Newell Rubbermaid, Caremark, Sprint, Merck and JetBlue. As Tamar mentioned on the Executive Council call, please continue to promote this initiative and help spread the word!
Next Phase: Dave and I expect to have Phase 2 of TDR finished by the end of the year. At that point we feel the L&D component will be sustainable and continue to evolve. We will begin Phase 3 at the beginning of next year where we will be focusing on the broader Human Capital components including talent, performance, leadership, onboarding and engagement. I will reach out to each of you to see if you would like to remain active in Phase 3. I know some are only interested in L&D and some of you are interested in all aspects of talent management.
2011
Talent development reporting principles
The absence of standardized metrics has long plagued the learning and development (and HR) profession.
Standardized ways of measuring and valuing investment processes and resulting value creation would help L&D professionals up their game and bring a new accountability to the function.
That, in turn, would increase the centrality and ultimately the effectiveness of learning – improving outcomes for employees, employers, and shareholders.
To help move the ball forward, a group of high-level L&D professionals – convened and supported with the assistance of Knowledge Advisors – has just released Version 1 of the Talent Development Reporting Principles (TDRP):
“The hope is that this standard framework will be broadly adopted with common terminology and measures, which in turn will contribute to a greater understanding of successful practices and meaningful comparisons across organizations. Our inspiration is the set of Generally Accepted Accounting Principles (GAAP) which have been used by the accounting profession in the United States since 1973 to provide consistency, clarity and uniformity in the analysis of the financial well-being of organizations. The data produced using these principles can then provide a solid foundation for analysis, just as the data produced by accountants according to GAAP provides the foundation for financial analysis.”
2011
Human capital and Form 10-K
I have been appointed as the workgroup lead on a SHRM/ANSI taskforce that is charged with developing American National Standards for improving reporting about human capital on Form 10-K (the annual report that all publicly traded firms in the U.S. must file with the U.S. Securities and Exchange Commission).
This workgroup is a part of a larger effort that SHRM has launched to create standards for the HR profession. When the standard has been established, we intend to submit this document to the Financial Accounting Standards Board (FASB) for consideration.
This is, for me, a very exciting development since I have long advocated for improved reporting on human capital. It would have important implications for the HR profession and, perhaps more fundamentally, has the potential to change how people are managed and developed.
The group’s work will be guided by the following questions:
- What does the existing knowledge/research base tell us?
- What can we learn from other groups working on this?
- How do we make the standards stick by understanding the perspective of the parties that will be impacted?
- What specific human capital information should be included in Form 10-K?
If you have perspectives or advice that you would like to share on any of these questions, I’d be delighted to hear from you. Please feel free to post a response or to contact me directly.