Training Needs Analysis 350

Training Need Analysis

ARRIFFIN MANSOR© 2009

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Training Need AnalysisA corporate approach

Arriffin Mansor

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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 ?

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Training Development Process

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Training Development Process

Performance gaps

Competency gaps

ROI training

Training needs

Steps in TNA

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Performance Gap Analysis

Competency gaps Analysis

Identify Training Needs

Training Delivery

Training Need Analysis Training Need Analysis

over the financial Statements comparing against standards

Person competencyProfiling against best practices

Cluster and combine competency gaps into core and other competencies

On the job or off the job training options

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

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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

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What is KPI in graphic?

Input KPI

KPI2

After

Before

Before After Output

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Sale per ringgit Advertising

Advertising Sales/advertising

KPI2

After

Before

Before After Sales

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Pulangan terhadap Ekuiti

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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

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The Total Performance Model

Inventory

Accts Rec.Current Assets

SalesAsset

Turnover

FixedAssets

Total Assets

÷

Other CurrentAssets

÷

Net Profit

Net ProfitMargin

Sales Total Expenses

Gross MarginSales

Cost OfGoods Sold

Return onAssets

Net ProfitTotal

Assets

xx

FinancialLeverage

Total AssetsNet Worth x

=

Return OnNet Worth

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Vision

Mission

Key Result AreasKey Result Measures

Analysis Assess

Analysis

PERFORMANCE GAPS

Vision and StrategyVision and Strategy

FinancialFinancial L and GL and GCustomerCustomer ProcessProcess

ObjectivesObjectives

MeasuresMeasures

TargetsTargets

InitiativesInitiatives

Strategy-Translation Process

Fina

ncia

lCu

stom

er

Inte

rnal

Bus

ines

s

Proc

ess

O

rg.

Lear

ning

&

Gro

wth

Perspectives

Customers: Consumer & Business, Enterprise & Government, SME/Corp.Govt, OLOS, Global Players

Partners: (Reseller,Vendor,Govt Agency)

Innovation & Service Excellence Innovation & Service Excellence 4

Profitable Revenue GrowthProfitable Revenue Growth Effective Cost Management Effective Cost Management1 2

Create One Company MindsetCreate One Company Mindset5

Delight The Customers And Create Synergy With Partners Delight The Customers And Create Synergy With Partners 3

TO BECOME MALAYSIA’S LEADING INFORMATION AND COMMUNICATIONS SERVICES PROVIDER

IBP4. Accelerate Relevant Subsidiaries Rationalisation

F1. Increase Shareholder Value

CommercialExcellence

OperationalExcellence

HSBB/NGNImplementation

RelevantSubsidiaries Rationalisation

Create One CompanyMindset

Alignment to PIPV2.0Key Initiatives

C1. Innovative Products and High Valued Solutions

C3. Effective Supply Chain and Partner Relationship Management

C4. Good Corporate Citizen

IBP5. Effective risk and regulatory management

IBP1. Drive Commercial Excellence

IBP3. Successfully Implement HSBB

IBP2. Achieve Operational Excellence

OLG1. Develop Strategic Skills and Competencies

Cut AcrossAll PIP

F2. Higher TMProfitability

F4. Cost Efficiency

C2. Reliable Services

OLG2. Ensure Org.Effectiveness

IBP6. Optimise Manpower & Productivity

F3. HealthyCash Flow

Komponen Balanced Scorecard: Strategy Map

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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

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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

Training?

Training helps to bridge the gapExisting

• Skills• Knowledge• Attitudes

Required• Skills• Knowledge• Attitudes

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Training Need Analysis (TNA)

TNA is a tool toidentify the gapExisting

• Skills• Knowledge• Attitudes

Required• Skills• Knowledge• Attitudes

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TNA (Step 1): Future performance

Existing performance

Future performance

What are the goals for the future performance of our organisation?

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

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TNA (Step 2): Challenges

Existing challenges

Future challenges

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

What challenges we are likely to face in the future?

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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

Performance based TNA

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MOREEFFICIENT

How to obtain the needed competencies

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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

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Example of databaseCritical Skills for existing jobs

Identified jobCritical skill 1

critical skill 2

critical skill 3

critical skill 4 current employee

admin clerk I

customer service byTelephon

e/now

filing/now

Respondingto mailRequests /now

use of ALDER database /future

Current Employee Skills

Jane Doeanswering telephone

Use of SpreadSheet programs

type 35 wpm filing use of cash register

Bill Smithtype 35 wpm

Answering telephone

cookcopy machine repair

knowledge of Word program

Bobby Joetype 40 wpm

filingfurniture moving

knowledge of AKSAS and Akpay

use of cash register

The required training

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Types of competencies

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Level of competencies

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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

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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

Types and depths of competencies

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Steps in training needs

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Evaluating Performance

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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

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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

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Education1. % Of graduates who can find work within 6 months2. % Of graduates who have received job offers from

multi-national corporations3. Publications in international journals staffs4. Publications in international journals research

projects5. % Of laboratory equipment in use6. % Of texts in elective courses that have been

published in the past 10 years7. % Of courses that have adapted the use of multi-

media software8. % Of incoming students from top-tier high schools

Examples of KPIs

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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

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Define the problem – the gaps

DESIRED PERFORMANCE (Optimal)

- ACTUAL PERFORMANCE (Actual)

= POSSIBLE TRAINING NEED

Describe Discrepancy

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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

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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.

• 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

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ROI

• Balanced Scorecard (Drs Kaplan and Norton),

• Kirkpatrick Four-Level Framework (Kirkpatrick, 1975),

• Jack Phillips’s Five Levels of Evaluation

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More popular Types of Evaluation

• 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.

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Donald Kirkpatrick’s Model of Evaluation (1979)

• 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

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What Companies Do With ROI Data?

Tabulating Tabulating cost of the cost of the programprogram

• Cost components that should be included

are :

• Travel, lodging, and meal costs for the

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

Tabulating Cost of the ProgramTabulating Cost of the Program

EVALUATE PERFORMANCE

MOTIVATION

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ROI Process

Collecting KPI data

Isolating the Other Effects

Obtain trueoutcome

Calculating the Return on

Investment

Calculate IRR

Tabulating Training

Costs

After Training

Outputs

Inputs

Before training

Trend Lines AnalysisTrend Lines Analysis

Jan Feb Mar Apr Jul Jun May Aug

At the beginning of May, a Sales training Program session was

held

Vo

lum

e o

f S

ales

The

difference

represents

the estimate

impact of

training.

Trend Projection

Actual sales performance

ROI of Training Model ROI of Training Model

Collect Collect DataData

Isolate the Isolate the Effects of Effects of TrainingTraining

Convert Data Convert Data to Monetary to Monetary

ValuesValues

Calculate ROI Calculate ROI of Trainingof Training

Tabulate Tabulate Program Program

CostsCosts

Identify Identify Intangible Intangible BenefitsBenefits

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Instructional Objectives

Why are they important?

• A basis for planning the training• A roadmap for the learner• A basis for evaluating

effectivenessof the trainingWill objectives ever change during the

delivery of training?

• Coca ColaCoca Cola – 8 half-day on supervisory skills workshops – 1447% ROI, Benefit/Cost Ratio 15:1

• Yellow Freight SystemYellow Freight System – Performance Appraisal Course – 1115% ROI, Benefit/Coast ratio 12:1

• Litton Industries (Avionics)Litton Industries (Avionics) – Self Directed Work Team course – Productivity increased 30%, Scrap rate reduction 50%, 700% ROI

• Multi-Marques, Inc (Bakery)Multi-Marques, Inc (Bakery) – 15 hr Supervisory Skills Training – 215% ROI, Benefit/Cost Ratio 3.2:1

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Examples of Business Results

• 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

How do we measure performance output as a result of training?

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• 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.

Input Output Analysis

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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.

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Performance levels

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• 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

Measuring the Output

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• 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.

Input Output Analysis

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ROI =(Value of benefits –cost of training)/Cost of training

Benefit Cost Ratio 71,760 = 2.2:132,984

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

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ROI training

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Objective driven Contents

Objectives•……..•……..•……..•……..

Objectives•……..•……..•……..•……..

Section 1……..……..……..……..

Section 1……..……..……..……..

Section 2……..……..……..……..

Section 2……..……..……..……..

Section 3……..……..……..……..

Section 3……..……..……..……..

Section 4……..……..……..……..

Section 4……..……..……..……..

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DELIVERING CUSTOMISED TRAININGSUCCESSFULLY

“Tell me and I forget, teachme and I remember, involveme and I learn”

- Benjamin Franklin

Read

Hear Words

Watch still picture

Watch moving picture

Watch demonstration

Do a site visit

Do a dramatic presentation

Simulate a real experience

Do the real thing

Visual

Kinesthetic(Experiential)

Verbal10% of what they read

20% of what they hear

30% of what they see

50% of what they hearand see

70% of what theysay or write

90% of whatthey say asthey do a thing

“Cone of Experience” People generally remember:

Adapted from Wiman & Meirhenry, .Educational Media, 1960 on Edgar Dale

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If training is the answer….

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

approaches

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Exercises and ActivitiesGet 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?

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What training activities are available?

Low learner involvement

High content and variety of perspectives

Panel Discussion

May be dominated by a few participants

Good focus and high involvementCase Study

Passive and not stimulating

Good for high content if presenter is good

Lecture

May be dominated by a few participants

Good practice for participants and involvement

Role Play

Does not involve everyone

Opportunity to provide feedbackDemonstration

ConsProsActivity

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Available Training Activities (continued)

May be dominated by a few participants`

Highly energizing and high participation

Large Group Discussion

Little participant interaction

Good focus and pre-designed

Video or Film

May be dominated by a few participants

Highly participatory and task oriented

Small Group Tasks

Mechanisms must be in place to ensure learning happens

Allow for sensory perception if well structured

Field Trips

Not very stimulating

Provide high content

Reading

ConsProsActivities

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Evaluations

• Evaluate based on objectives

• Did the participants:– learn what you had planned?

– implement what they learned?

– improve their job performance ?

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After the Class

• 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?

KIRKPATRICK

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Purpose of Training is to Produce Change In…

• Skills– how to– steps

• Knowledge– critical thinking– decision making

• Attitudes– ethics/values– behaviour

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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

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Personal Qualities to Look For in a Trainer

• Self-confidence• Awareness of

environment• Ability to build

bridges—relate old to new

• Organisational skills• Desire to learn

• Ability to listen• Sense of humour• Communication &

theatrical skills• Flexibility• Patience• Cool head & warm

heart

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)

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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

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The bigger picture

Organisational performance

Employee performance

Employee Skills, Knowledge and Attitudes

Employee education, experience and training

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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

Existing•Skills•Knowledge•Attitudes

Required• Skills• Knowledge• Attitudes

In order for our employees to perform differently, what kind of new Skills, Knowledge and Attitudes they need to have?

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TNA (Step 5): Training needs

Existing•Skills•Knowledge•Attitudes

Required• Skills• Knowledge• Attitudes

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

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TNA in essence…

Start with future organisational goals and challenges

Assess required employee performance to meet the goals and challenges

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

Identify employee training needs to bridge the gap

1

2

3

4

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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 strategies83

INTERNAL PROCESSINPUT PROCESS OUTPUT OUTCOME

Material variances

Labour

Overhead Efficiency ratios

No produced

Average cost per transaction

Research dev expense

Productivity ratios

Value produced

ROI

Inventory turnover

Average lead time

Waste Reduction84

HRM KPIsINPUT PROCESS OUTPUT OUTCOME

Incentives variances Turnover ratio

Hours Efficiency ratios

No produced

Profit per employee

Training Productivity ratios

Value produced

ROI

Salary Average lead time

Turnover Revenue per employee

Skill competency

Waste Reduction Employee productivity

Value added per employee

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FINANCIAL KPIsINPUT PROCESS OUTPUT OUTCOME

Material variances

Labour

Overhead Efficiency ratios

No produced

Average cost per transaction

Research dev expense

Productivity ratios

Value produced

ROI

Inventory turnover

Average lead time

RETURN ON EQUITY

Waste Reduction 86

INTERNAL PROCESSINPUT PROCESS OUTPUT OUTCOME

Material variances

Labour

Overhead Efficiency ratios

No produced

Average cost per transaction

Research dev expense

Productivity ratios

Value produced

ROI

Inventory turnover

Average lead time

Waste Reduction87

MARKETINGINPUT PROCESS OUTPUT OUTCOME

Material Response rate No of customers

Labour Marketing costs % Sales volume

Overhead Efficiency ratios Customers Profitability

Research dev expense

Productivity ratios

Product profitability

ROA marketing

Average cost per transaction

Customer acquisition Return on Sales

Inventory turnover

Average lead time Customer retention

Price rel to comp

Waste Reduction Revenue growth

Delivery Channel

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Analysis and Improvement Basics

Internal Analysis:

• Trends: Individuals, Cross-examination, and Overall (with MCPMT)

• Target Comparison

External Analysis:

• Benchmarking

• Standard Comparisons

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Processes

Outputs Downstream

Inputs

Upstream

Private Firm

Revenue and Profit

Quality of Services (Replacement, Repairs, Return, Recall, etc.)

Customer Satisfaction

Regulatory Compliance

Products

Services after Sales

Reports and Documents

Planning

Procurement

Approval

Production

Inspection

Warehousing

Delivery

Staffs

Instruments and Equipment

Facility

Capital

Utilities

Raw Materials

Suppliers

Subcontractors

Ratio-format Measures

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Processes Outputs DownstreamInputsUpstream

University

Qualifications for Workplace

Suitable Skills

Employment

Continuous Education

Publications

Revenue

Graduates

Research

Reports and Documents

Seminars

Intellectual Properties

Teaching

Approval

Experiments

Review

Planning

Procurement

Staffs

Students

Instruments

Facility

Budget

Utilities

High Schools

Suppliers

Subcontractors

Budget Bureau

Ratio-format Measures

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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)

The End

Questions please