Rethinking Needs Analysis: Managing The Demand and Supply of Learning

CLC Learning and Development
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LEADERSHIP
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CORPORATE EXECUTIVE BOARD
Rethinking Needs Analysis

Managing the Demand and Supply of Learning
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ROAD MAP FOR THE Session
CLC Learning
Best Practices & Development
Value-Driven
for Analyzing Resources for
Needs Analysis
L&D Needs Analyzing
L&D Needs
From CLC Learning and Development

of the Corporate Leadership Council®
www.ldr.executiveboard.com
© 2011 The Corporate Executive Board Company.

All Rights Reserved. LDR1002911SYN
1
Few organizations’ L&D
activities effectively
FAILURE TO IMPACT THE BUSINESS
deliver critical
capabilities or drive Effectiveness of L&D Activities in Developing Effectiveness of L&D in Driving Business
business performance. Critical Capabilities Performance
Percentage of Business Executives Globally Percentage of Business Executives Globally
■■ Only one-third of executives

rate their organization’s
L&D activities as effective
at developing critical 25%
capabilities. Effective or
33% Very Effective
Effective or
■■ Meanwhile, just one-quarter Very Effective
of executives rate L&D as
effective at driving business
performance.
Source: Building Organizational Capabilities, McKinsey & Company, 2010.


2
Needs analysis is the first
step to ensuring that
NEEDS ANALYSIS: THE CRITICAL FIRST STEP
learning solutions drive
business performance. Needs Analysis Underpins the Common Application of the ADDIE Model to L&D
■■ As the first step in the

commonly used ADDIE
model, needs analysis
impacts the effectiveness
of the L&D activities that
follow.
Analyze Design Develop Implement Evaluate
■■ Failing to conduct
effective needs analysis
increases the risk that
design, development,
implementation, and
evaluation will be ineffective.
Risks Arising from

Design Risk Development Risk Implementation Evaluation Risk
Ineffective Needs
Learning solutions Development Risk Evaluation does
Analysis
do not map to the activities do not Resources are not capture
business need. focus on business- not prioritized on business impact
critical skills. business-critical of L&D.
L&D projects.


3
Poor needs analysis has
negative time, cost, and
CONSEQUENCES OF POOR NEEDS ANALYSIS
performance implications
for the organization. Poor Needs Analysis Leads to Inefficient Use of Time, Higher Costs, and Performance Issues
■■ Organizations with
ineffective needs analysis
risk inefficient use of learner, More learner time spent attending irrelevant learning solutions
manager, and L&D staff
time, as well as investing
in unnecessary learning More time spent by learners after the learning intervention in trying
solutions. to understand how to apply the learning
More time spent by managers in trying to support learners in

understanding how to apply the learning
Time and Cost More time spent by L&D developing program content, as program
Implications focus is not effectively targeted
More time spent by L&D after the learning intervention supporting

learners who struggle to apply learning
More time spent by L&D educating learners attending programs

irrelevant to their needs
More money spent on unnecessary learning solutions
Performance
Poor application translates into individual performance challenges,
Impact
which translate into wider business performance problems
Implications


4
Few L&D organizations
are effective at
FEW ORGANIZATIONS EFFECTIVE AT L&D
identifying and
understanding the
NEEDS ANALYSIS
business’s L&D needs.
Effectiveness of Organization in Understanding L&D Needs of the Business
Percentage of Business Managers
■■ Just more than 40%
of managers rate the
organization as effective
at understanding the L&D
needs of employees and the
teams within the business.
41%
Effective or
Very Effective
Source: CLC Learning and Development’s Learning Effectiveness Survey for Managers, 2008.

5
To properly assess
learning needs, L&D must
EXPAnDED SCOPE OF nEEDS AnALYSiS
move beyond simply
identifying learning in Addition to Getting to the Right Solution, Organizations Must Manage Their investments
needs.
■■ According to CLC Learning Learning needs Analysis L&D Portfolio Prioritization Managing the Demand
and development’s and Supply of Learning
Boosting the Predictability of The collection and
L&D Returns and Refocusing analysis of information
L&D on Business Results to identify learning and
studies, organizations aiming development needs,
to drive business impact determine appropriate
+ =
must go beyond learning solutions, prioritize learning
needs analysis and solution investments, and optimize
Typical needs Analysis Questions Additional needs Analysis
alignment. the portfolio of L&D projects
Addressed Questions to Be Addressed
for maximum business
■■ in addition to identifying Which L&D investments should impact
What is the specific nature
learning needs and possible of the need? be prioritized?
solutions, L&d should also how should the portfolio of L&D
Can and should it be addressed
prioritize L&d projects and investments be managed and
through L&D?
manage L&d investments at optimized?
the portfolio level.
From CLC LEArNINg AND DEvELoPMENT

of the CorPorATE LEADErShIP CouNCIL®

6
Organizations that
adopt an expanded view
EXPANDED NEEDS ANALYSIS DRIVES RETURNS
of needs analysis see
significant improvements Expanded Needs Analysis Activities Improve Learner Performance
in learner performance. Impact of Needs Analysis Activities on Improvement in Learner Performance
Learning Needs Analysis L&D Portfolio Prioritization
29%
22%
19%
18%
16%
L&D’s Solution L&D Ownership L&D’s Solution Relevance

Understanding Relevance to of Solutions Understanding of to Critical Business
of Daily Workflow Urgent Individual Management Business Needs Objectives
Skill Gaps and Barriers

© 2011 The Corporate Executive Board Company. Source: CLC Learning and Development, Refocusing L&D on Business Results: Bridging the Gap Between Learning
All Rights Reserved. LDR1002911SYN and Performance, Arlington, Va.: The Corporate Executive Board Company, 2008.
7
CLC Learning
Value-Driven
Needs Analysis
L&D Needs Analyzing
L&D Needs


8
RETHinKinG nEEDS AnALYSiS
LEARninG nEEDS AnALYSiS L&D PORTFOLiO PRiORiTiZATiOn
i 2 3 4
identify Critical Define L&D Prioritize High- Balance and Manage
Learning needs and non–L&D Solutions impact investments the L&D Portfolio Over Time
Segment Needs Analysis Analyze the root Define value Criteria Balance L&D Investments
Causes of Performance Issues
Clarify ownership of Solutions


9
Selectively standardizing
tools, systems, and
Focus on Moments That Matter Most
processes at points of
greatest risk allows for Caterpillar’s Learning Community’s Process
the application of rigor in Division and Enterprise Learning Plan Process, Abbreviated
an efficient and effective
fashion.
Analysis Planning Delivery Evaluation

■■ Caterpillar’s learning
community standardizes key
components of the process, Strategic Division “Voice of the Customer Learning Pilot Program Learning Program
specifically focusing on Needs Analysis: Discuss and Business” Delivery: Deploy Evaluation: Deploy
perceived points of greatest business unit strategy Consolidation: Merge solution to pilot program evaluation plan for
risk. to identify which strategic division and participants. learning program.
Activities
long-term and cross- enterprise needs analysis
divisional objectives can summaries to develop Learning Program Learning Value
■■ By focusing on the moments be supported through Enterprise Learning Plan Reprioritization: Identify Demonstration:
that matter most, the learning. (ELP). which learning programs Communicate progress
learning community can to fully deploy based and performance toward
Operational Division ELP–Initiative Allocation: on forecasted ROI
strike an appropriate balance annual targets using
Needs Analysis: Review Assign ELP initiatives to calculations. standard monthly, vital
between consistency and short- to mid-term and CAT U colleges based
reports.
flexibility. department-specific on required content Learning Program
goals to determine expertise. Full-Scale Delivery: Future Learning
which can be supported Implement full-scale
■■ In particular, CLC Learning College-Initiative Strategy Review:
through learning. learning program to
and Development Prioritization: Prioritize Determine actual net
Division-Level Needs ELP initiatives using target audience. benefits of learning
notes that the learning Finalization: Finalize standard criteria (e.g., programs to inform
community front-loads its Division Learning “common and global,” future investment
standardization efforts, Plan Summary with linkage to critical success decisions.
placing greater emphasis approval of senior factors).
on the analysis stage in an division leadership for
College-Initiated Needs
submission to Caterpillar
effort to cascade accrued University (CAT U).
Analysis: Conduct second
benefits downstream. round of needs analysis to Key Focus for Standardization
Strategic Enterprise supplement division-level (Tools, Systems, Processes) Efforts
Needs Analysis: Discuss strategic and operational
enterprise strategy to learningneeds analysis
identify which long- summaries.
term objectives can
Learning Program
be supported through
ROI Estimation:
learning.
Identify which learning
From CLC Learning and Development programs to pursue
www.ldr.executiveboard.com based on estimated ROI
calculations.
10
Caterpillar University’s
(CAT U’s) iterative and
Identify Vertical and HOrizontal
tiered approach to
needs analysis balances
Learning Needs
customer input with
corporate priorities. Strategic Division and Enterprise Learning Needs Analysis Process
Abbreviated
■■ CAT U employs an iterative

Enterprise Level
and tiered approach to
needs assessment, soliciting Enterprise Learning Plan College-Level ELP Needs Assignment
input from all business Development CAT U assigns ELP learning priorities
units and levels in the CAT U leadership, based on most to its subject-specific colleges,
organization. frequently mentioned learning needs depending on the required content
in Division Learning Plans (DLPs), expertise.
■■ CAT U identifies the creates first draft of annual Enterprise
Learning Plan (ELP).
highest-priority “common
and global” needs that
directly align with specific Enterprise-Level Needs Diagnosis1 College-Level Work Plan
CAT
business objectives. Internal CAT U leadership solicits input from Development
customers are deeply
U Le
the Board of Governors2 and other College deans and project managers
engaged at each stage of members of the Executive Office on prioritize learning needs and develop
vel
the process. the firm’s future business direction to work and budget plans.
ensure alignment with mid- to long-
term business goals.
■■ For example, lead learning
managers (LLMs) in each
of Caterpillar’s 26 business
Division Learning Plan Development Enterprise Learning Plan Finalization
divisions engage internal
el
LLMs summarize line-specific learning CAT U leadership rolls up college

t Lev
customers in a series of needs using templated DLPs. plans to create second draft of ELP
voice-of-the-customer and finalizes with Board of Governors.
ni
exercises to identify
ess U
objectives, initiatives,
Busin
performance gaps, and new Business Unit–Level Needs Diagnosis 1 College-Level Needs Diagnosis 1
technologies that can be Together with their business partners, College deans, project managers,
supported through learning. LLMs identify business objectives that LLMs, and college Advisory Board
can be supported through learning. members conduct second round
of needs analysis to further inform
planning and delivery efforts.

1 Shading refers to needs assessment activities.
2 Board of Governors include the CEO and five officers (group presidents and division VPs).
11
Targeted questioning
by organizational level
Segment Needs Analysis Questions
across its 26 business
units allows Caterpillar
by Audience
University (CAT U) to
develop a holistic and CAT U’s Segmented Needs Analysis Questionnaires
Abbreviated
nuanced view of learning
needs.
Board of Governors
CEO
“Voice of the Business” Survey
Group Presidents
■■ CAT U provides lead learning 1. What is the organization’s Division Vice Presidents
managers (LLMs) and staff future direction in 5 to

10 years? The president of CAT U and the performance
with a standard toolkit improvement manager survey annually.
2. How can learning help
to ensure that they apply achieve these mid- to long-
the same level of rigor to term goals?
surfacing and diagnosing Business Unit Leadership

Individual Contributors1
Vice Presidents
customer requirements Department Heads
LLMs and college-level project
“Voice of the Customer”: Tier 1 managers through division
across the organization. LLMs and college-level project managers and supervisors survey
Organizational Level
1. What are your most critical managers survey on an iterative basis. on an iterative basis.
business goals for the
■■ By equipping LLMs with coming year?
2. What planned or predicted
appropriate tools, they level
changes (e.g., marketplace, Department Leadership
the playing field in assessing products/services) might Department Heads
require learning?
learning needs. Department Managers
LLMs and college-level project managers

“Voice of the Customer”: Tier 2
survey on an iterative basis.
■■ CAT U provides LLMs and 1. What are your department’s
major goals?
staff with segmented needs
2. Which of your department
analysis questionnaires goals will involve new
based on organizational processes, technologies, or “Voice of the Customer”: Tier 3
systems that might require
levels to obtain a holistic, Division Supervisors1 learning?
1. What are your team’s
technical and nontechnical
balanced, and detailed view Department Managers
Division Supervisors
learning needs?
“Voice of the Customer”: Tier 4
of learning needs up, down, 2. What are your team’s
LLMs and college-level project major competency and 1. What are your strengths?
and across Caterpillar. managers through department behavioral gaps?
leadership survey on an iterative 2. What are your key
basis. competency gaps?
Organizational Business Unit Department Team Learning Individual Learning

Alignment Strategy Alignment Goal Alignment Needs Alignment Needs Alignment
Engagement Level
of the Corporate Leadership Council® 1 CAT U is in the process of rolling out its needs analysis efforts at the division supervisor and individual contributor levels.

12
i 2 3 4


13
State Farm shifts
its instructional
From a Focus on Content to a Focus
development approach
from imparting
on Performance
knowledge to improving
job performance. From Imparting Knowledge to Driving Performance Using the ADDIE Model to Drive Performance
Excerpt from State Farm’s Presentation “Moving Excerpt from The Center for Effective
to Performance-Based Training” Performance’s Performance-Based Training Model
■■ State Farm uses The Center
for Effective Performance’s
methodology, which aligns Instructional Analyze-Related
with and enhances the
Instructional
Development Models Activities
ADDIE model. Development Models
Academic Model Business Model Analyze ■■ Identify if there is a
Academic
FocusesModel
on
Instructional
Business
FocusesModel
on performance gap.
Focuses
• Content
Development
on • Focuses
Job onModels ■■ Identify if learning
■■ State Farm boosts
• Content Academic• Job
performance
Model Business Model is a (partial) solution
job performance by
• Test • performance
Focuses on check Focuses on
Skill to addressing the
ensuring that learning •• Test • • Job
• Content• Mastery
Mastery of Skill check
of performance gap.
solutions address the • Mastery
content of • Mastery
skills ofperformance ■■ Identify the typical
right performance issues content • Test skills • Skill check Design
and reflect the jobs and tasks associated with
• Mastery of • Mastery of
workplace realities of content skills employees’ jobs.
■■ Document the steps
learners and their critical
development needs. and decisions involved
with performing a task.
Key Principle of “Performance-Based” Develop

Training
Each learner must demonstrate
competence at the desired level on
a unit of instruction before moving
on to study another skill.
Implement
Evaluate

All Rights Reserved. LDR1002911SYN Source: State Farm Mutual Automobile Insurance Company; The Center for Effective Performance, Inc.
14
As part of its
performance gap
“SKiLL, WiLL, HiLL” PERFORMAnCE BARRiER
analysis, State Farm
uses a simple, accessible
DiAGnOSiS
“skill, will, hill” taxonomy
to engage business “Skill, Will, Hill” Performance Barrier Conversation Case in Point: “Skill, Will, Hill” Taxonomy
partners. in Action
What prevents agents from
successfully selling banking products?
■■ substantive conversations Business Learning
with business partners Leader Consultant
identify the barriers
to achieving desired
performance levels and
Skill Will Hill Skill Will Hill
specific challenges to ■■ Agents ■■ Agents’
■■ Lack of ■■ Misaligned ■■ Inefficient
■■Agents
learning application.
knowledge incentives processes lack incentives find long
■■ Lack of ■■ Conflicting ■■ unclear knowledge do not processing
■■ the approach includes a
capability or accountabilities/ accountabilities of banking encourage times from
performance gap analysis
competency expectations ■■ Faulty products. them successfully
which uses a simple
technology
■■ Agents do to sell selling a
“skill, will, hill” taxonomy
■■ Limited not know banking bank-related
to identify barriers to
resources how to products. product.
performance improvement
identify
and learning transfer and
customers
application within and Benefits of “Skill, Will, Hill” Taxonomy likely to
beyond L&d’s control.
uses a simple, accessible method of breaking purchase
down the root causes of a performance issue that banking
line partners can easily relate to and use products.
Identifies all the barriers to performance

improvement, going beyond only those related Using the “hill” concept
has enabled state
to learning and development, enabling a holistic
Farm to identify a
approach to performance improvement resource problem
Identifies which barriers can be addressed by Learning consultants can contributing to
work with the business the performance
learning solutions and which cannot
partner to identify and challenge that must be
make recommendations tackled to ensure the
to address these issues. performance challenge
is fully addressed
From CLC LEArNINg AND DEvELoPMENT and that learning is
successfully applied.

All Rights Reserved. LDR1002911SYN Source: State Farm Mutual Automobile Insurance Company; The Center for Effective Performance, Inc.
15
State Farm undertakes
a job analysis to
The Devil Is in the Details
understand the day-to-
day duties of potential Job Analysis1 in Action
learners and how those
break down into specific
tasks.
Job: Sales Agent
Duty/Accomplishment: Meet Given Sales Targets for Insurance and Banking Products
■■ State Farm identifies the Task Cues/ Outcomes Criteria Criteria Importance Difficulty Frequency Number or Tax
Conditions for Being Percentage Prioritization
most critical tasks to Success Met? of Job
address, allowing L&D to of Task Incumbents
develop learning solutions
Review
that reflect a granular product Important Difficult Quarterly 400 M
understanding of how work offerings
gets done.
Identify
appropriate Important Easy Quarterly 100 M
■■ Learning consultants target pool
interview and shadow Deliver sales
Critical Complex Hourly 400 H
high-performing employees conversation
to gain a granular Record
understanding of learners’ outcome
roles, responsibilities, and in system
tasks and how work gets
done in practice and to
gain firsthand visibility into
the barriers to, and best
practices for, getting tasks State Farm interviews and shadows high-
done. performing associates to understand
the challenges of performing critical and
complex tasks and to identify challenges
they may face with transferring and
applying learning intended to address
these critical and complex tasks.
1 Used to define new or existing jobs.
Source: State Farm Mutual Automobile Insurance Company; The Center for Effective Performance, Inc.

16
As part of its
performance consulting
Get to the Root of the Problem
model, Thomson Reuters
employs a simple “sticky Steps of “Sticky Note” Root-Cause Visualization Exercise
note” visualization
exercise. 1. With the help of L&D, business partners answer two questions.
■■ What is the target employee audience doing now?
■■ What do you want the target employee audience to do?
■■ L&D uses a four-quadrant

(knowledge-skill-motivation- 2. Both groups identify the root causes of the gap between the current
environment) matrix to and desired state using the four-quadrant matrix.
collaboratively deconstruct
with the business the root
causes of a performance Four-Quadrant Matrix: Knowledge-Skill-Motivation-Environment
issue and identify owners of Part of Nigel Harrison’s Performance Consulting Structure
those root causes.
Knowledge Skill
■■ Is the gap between the current ■■ Is the gap between the current and
and desired state due to a lack of desired state due to a lack of skills?
knowledge? ■■ Is it a lack of skills of the target
■■ Is it a lack of knowledge of the target employee audience or of other

employee audience or of other individuals as well?
L&D Consultant individuals as well?
Motivation Environment
■■ Is the gap between the current and ■■ Is the gap between the current and
desired state due to a lack of desired state due to an environmental

Business Partners motivation? barrier?
■■ Is it a lack of motivation of the target ■■ What type of environmental barriers
audience or of other individuals as well? are causing this gap—is it insufficient

■■ What type of motivation barriers are resources, cumbersome/outdated
causing this gap—is it financial, processes and systems, etc.?
lack of reinforcement, etc.?
Source: Thomson Reuters; Performance Consulting UK.


17
L&D supports business
partners by providing
Help Others to Help You
them with guiding
questions. Guiding Questions Used by L&D
■■ Guiding questions enable General Questions

business partners to ■■ What would things look like when everything is working
collaboratively deconstruct perfectly?
the root causes of a ■■ What do you want the target employee audience to do?
performance issue in an ■■ How do people in your team perceive themselves?
effective manner. ■■ How do they get work done?
Knowledge- and Skill-Related Questions

■■ Do they lack skill or knowledge?
■■ Is the skill used often?
■■ Do they have the people and capability to do this task?
■■ Can we provide this knowledge?
Motivation-Related Questions
■■ If target employees do it right, do they suffer?
■■ If they do it wrong, do they benefit?
■■ Are they clear on expectations?
■■ Is there a fear of failure?
■■ Are stress levels too high?
Environment-Related Questions
■■ Is there something wrong with the equipment being used?
■■ Is there something wrong with the methods being used?
■■ Are managers playing their part?
■■ Are there obstacles in the workplace getting in the way?
■■ Are the systems used cumbersome or outdated?
Source: Thomson Reuters; Performance Consulting UK.


18
Thomson Reuters’
visualization exercise
“Sticky Note” Root-Cause Visualization
enables business partners
to identify, understand,
Exercise
and accept the root
causes of a performance Root Causes and Owners of Poor Call Rep Customer Service
Application of the Four-Quadrant Matrix
issue.
Example Question Addressed: Why Is Call Rep Customer Service Quality Low?
■■ The collaborative and visual
nature of the exercise helps
L&D Responsibility
business partners identify,
understand, and accept
which root causes of a Knowledge Skill
L&D typically owns and
performance issue they are 1 addresses root causes related
asic
best placed to address. of b n to knowledge and skill:
Lack unicatio
ear m ■■ Ensure the content of L&D
uncl com
It is good skills s
solutions addresses root
t
wha like ager causes of performance gaps.
s Man
o k ’t ■■ Provide L&D solutions to
lo ated don s
Outd s h rep
a d coac ively other learner audiences if
job effec
t needed.
Motivation Environment 2 Line partners own and address

root causes related to the
not work environment and some
ess
Proc g in rs do
s are la Othe act on motivation issues:
Rep ed on time ing tly
swif itments ■■ Remove those barriers to
nt t
ince lume, up d a
ew m
com by reps performance improvement
ager
s
l l vo on n
Man ca reps cts and a d e and learning solution
call u m
’t
aren role not y prod es application that are beyond
d qu l a it
serv
ic CRM
goo ls m L&D’s control—e.g., improve
o d e syste
m a rd infrastructure, change
is h
o u se incentive structures.
t
L&D/Line Responsibility Line Responsibility
From CLC Learning and Development Source: Thomson Reuters; Performance Consulting UK.

19
L&D solutions and any
prerequisites that need
FROM inFORMATiOn TO OWnERSHiP
to be in place for L&D
solutions to be effective
AnD ACTiOn
are codified in an action
plan. Key Benefits of Root Cause
Selected Elements of a Mock Action Plan for Call Rep Customer
Service initiative
Exercise and Codification of
Solution Action items
■■ the action plan identifies
Knowledge-Related Root Cause: “it is not Clear What Good Customer
L&d and line owners and
Service Looks Like.” Avoids “solutioneering”;
timelines for addressing
owner (rACI) Timeline ensures solution addresses
root causes. correct problem
Solution ■■ L&D incorporates ■■ responsible: Instructional
examples of high- Designer
Enables holistic solution
quality customer ■■ Consulted: Call Center
addressing all root causes of
service into training Lead
a performance issue rather
content. ■■ Informed: L&D Consultant
than only those that can be
addressed through training
Motivation-Related Root Cause: “Reps Are incented on Call Volume, not
Call Quality.”
Clarifies those instances where
Solution ■■ Incentive package ■■ responsible: Call Center a learning solution is not the
is amended to Lead, hr answer to a performance issue
reflect importance ■■ Informed: Lead L&D
of call volume and Consultant; Managers of Ensures any prerequisites for
call quality. Call Center reps the solution to be effective are
identified and owned
Environment-Related Root Cause: “Our CRM System is Hard to Use.”
Solution ■■ IT provides CrM ■■ responsible: CrM Enables clarity of ownership,
“cheat sheet” for Systems owner, Lead L&D reinforced through
call center reps. Consultant codification with timelines
■■ L&D incorporates ■■ Informed: vP, Call Center,
cheat sheet into Lead L&D Consultant
training content.
Learning solution prerequisites: if these motivation- and environment-related

root causes are also not addressed, they will likely become barriers
to the successful transfer and application of the knowledge-related
learning solution.
For example, a call rep is unlikely to take the time to improve customer
service if he or she is incented only on call volume, not call quality.
Source: Thomson reuters; Performance Consulting uK.

20
i 2 3 4


21
Confronting a blizzard
of ill-defined learning
Rationalize Investments
requests, Prudential’s
Learning Organization Distribution of Internal Customer Requests Prudential’s Project Assessment Tool
builds a standard project for L&d Support
assessment device that
serves as the hub of a
65%
new “culture of rigor”
within the function. L&D Customer Request Intake Form
■■ Project Definition Section

–– Description
■■ The Learning Organization
constructs an online project- 35% –– Needs Analysis
and portfolio-management –– Expected Outcomes
tool to be used by all
–– Proposed Solution
learning consultants in their
day-to-day management of –– Business Objectives
internal customer projects. –– Success Measures
–– Target Audience
■■ The tool is designed to ■■ Project Assessment Section
foster greater rigor in Lack Specific Include Specific –– Prioritization Criteria
identifying customer Business Business
priorities, developing Objectives Objectives –– Anticipated Work
or Estimated and Estimated
project specifications, and Business Value Business Value –– Anticipated Cost
prioritizing requests for ■■ Project Summary Section
support.
Primary Objectives of Project Assessment Tool Ancillary Benefits
Bring rigor and consistency to needs diagnosis and

project management. Establish a fact-based platform for development
Create a common, value-based platform for prioritizing conversations.
customer requests and selecting projects. Create templates for demonstrating the Learning
Boost the quality and consistency of the learning Organization’s value to senior business leaders.
of the Corporate Leadership Council® team’s performance in addressing customer needs.

22
The Project Assessment
Tool standardizes the
BEGin WiTH THE EnD in MinD
core elements for
diagnosing internal Prudential’s L&D Customer Request intake Form Prudential’s Value-Based Project Prioritization
customers’ L&D needs Criteria
and defines value-based
criteria to prioritize
Project Definition Section (Completion by Project Originator/Lead) Project Assessment Section (Completion by Project Originator/Lead)
customer requests.
1 Project name:
Project Background:
4 To What
Learning
What is the issue? Organization
Strategy Does
■■ prudential uses its project (Describe the Current State)
This Project
Date initiated: 16
Assessment tool to (Date Call or request Comes into Tie?

the Learning organization)
standardize the information What Does the Client Expect to
Value 1. Work aligned to this year’s Learning organization’s strategy
(internal) 2. Work aligned to both this year’s Learning organization’s strategy
that learning consultants Change at the Completion of and emerging products and services for this year and beyond
the Project? 3. Work aligned to emerging products and services for the
must collect from internal Expected Start Date: 16 Learning organization’s strategy for next year and beyond
customers prior to Expected End Date: 16
Risk (Client) 1. “As-is” state of human capital development within the
Proposed Solution(s):
initiating L&d projects. by 2 Selected Solution(s):
business/function
2. opportunities identified and not exercised to develop human
increasing the rigor of needs Type of Work: capital within the business/function
What Resource(s) is the Client 3. Defined/exposed gap(s) in the development of human capital
identification, the Learning Willing to Commit? Money People within the business/function
organization is better able Target Audience Size: Individual Team organization impact 1. Products/services and work effort from the Learning
5–10 10–25 25–100
to deliver solutions that 100–250 250–500 other
(Client) organization isolated from strategy planning and business
performance of client’s business
enable internal customers Target Audience Type: Nonmanagement 2. Products/services and work effort from the Learning
Management organization tangentially related to strategy/planning and
to achieve their key business Executives business performance of client’s business
3. Products/services and work effort from the Learning
objectives. 3
What is the Business Goal?
organization directly related to strategy/planning and business
What Are the Measures of
performance of client’s business
Success?
■■ prudential’s project What Tools Will We Use to
Measure Success?
5 Visibility
(Client)
1. Project provides exposure at local/midlevel executive levels
or below.
Assessment tool also Comments: 2. Project provides exposure cross-business/function at midlevel
executive level or localized exposure at higher executive level.
defines four value-based 3. Project provides exposure to senior business/function leaders
(top 150) and/or specifically the chairman/the ooC/and direct
criteria to determine the value-based criteria shift emphasis from reports of ooC members.
relative priority of incoming “meeting demands” to “creating value.”
customer requests, creating
an analytic platform for
Project definitions serve as informal service-level value-based criteria forge tight links between
scoring the “strategic 1 4
agreements with internal clients. Learning organization objectives and business
relevance” of individual performance objectives.
Consistency between “proposed” and “selected” solution
requests. 2
items provide a proxy for effectiveness in translating The Learning organization scores projects along each
5
customer needs into appropriate L&D investments. criteria to determine the absolute and relative value of
potential initiatives.
Metrics definition is hard-wired into needs identification,
3
ensuring that the Learning organization defines value-
of the CorPorATE LEADErShIP CouNCIL® oriented measures at the outset.

23
Prudential’s value-
based prioritization
Score Strategic Relevance
criteria enable the
Learning Organization Prudential’s Value-Based Project Prioritization Criteria
to focus investments on
opportunities with the Value Risk
greatest potential for Degree of Project Alignment with Learning Organization’s Current Extent to Which Project Accelerates Human-Capital Development
Strategy and Emerging Services Within Customer’s Business Function
value creation.
1. Work aligned to this year’s Learning Organization’s strategy 1. “As-is” state of human capital development within the
2. Work aligned to both this year’s Learning Organization’s strategy business/function
and emerging products and services for this year and beyond 2. Opportunities identified and not exercised to develop human
■■ The criteria allow the 3. Work aligned to emerging products and services for the Learning capital within the business function
Learning Organization Organization’s strategy for next year and beyond 3. Defined/exposed gap(s) in the development of human capital
within the business/function
to make principled
prioritization decisions
based on the relative value Visibility Impact
of potential projects. Degree to Which Project Is Visible up and Across the Executive-Level Extent to Which Learning Organization’s Solutions and Efforts
Ranks Directly Relate to Customer’s Business Performance
■■ The Learning Organization 1. Project provides exposure at local/midlevel executive levels 1. Products/services and work effort from the Learning Organization
or below. isolated from strategy/planning and business performance of
uses the criteria to analyze 2. Project provides exposure cross-business/function at midlevel client’s business
the dynamics of the executive level or localized exposure at higher executive level. 2. Products/services and work effort from the Learning Organization
learning portfolio, monitor 3. Project provides exposure to senior business/function leaders tangentially related to strategy/planning and business performance
(top 150) and/or specifically the chairman/the OOC/and direct of client’s business
high-visibility, high-risk reports of OOC members. 3. Products/services and work effort from the Learning Organization
investments, and understand directly related to strategy/planning and business performance of
the “value distribution” of its client’s business
L&D investments.
Individual Project Score: # points (12 Maximum)
Project Priority Scoresheet

Illustrative
Project Value Scores Total High-Risk, High-Visibility Projects
Value Risk Impact Visibility
Annuity Sales Team Management Program 2 2 1 1 6
Performance-Competency Model Change Initiative 3 3 2 3 11
Strategic Marketing Plan Development Off-Site 1 3 2 2 8
Top 150 Executive Upward Feedback 1 2 1 3 7


24
i 2 3 4


25
CNA Financial defines
simple prioritization
Prioritize L&D’s Investment Portfolio
criteria to refocus
L&D investments on core CNA Financial’s L&D Investment-Prioritization Matrix
opportunities for value
creation.
Run the Business Advance the Strategy

■■ These criteria are designed
(Maintenance) (Growth)
to ensure that investments
align with organizational
strategy and rest on two
simple questions:
20% 40%
–– How does this investment Inside CNA
contribute to business Proprietary knowledge and Proprietary knowledge and
(Proprietary,
performance? skills focused on promoting skills required to enable the
Differentiating = 60%
–– Will this investment Knowledge the effectiveness of operations achievement of organizational
generate intellectual and Skills) and processes growth targets
capital that enhances
the organization’s
competitive position?
■■ These questions enable
10% 30%
the L&D function and
senior business partners
to understand the logic of Outside CNA Generic knowledge and skills Generic knowledge and
investment decisions and focused on promoting the skills required to enable the
(Generic = 40%
provides a tool to assess Knowledge effectiveness of operations achievement of organizational
the integrity of investment and Skills) and processes growth targets
trade-offs.
= 30% = 70%


26
CNA Financial’s platform
enables senior business
Cascade the Investment Strategy
partners to visualize the
“value skews” in their
Through the Organization
L&D needs and shifts the
tenor of conversations Business Unit A’s L&D Investment Strategy–Planning Process
Illustrative
from demand to value.
1. L&D Investment-Planning Discussion 2. Original Portfolio Construction

■■ With the learning function L&D team leader and senior business partner convene to discuss L&D team leader and senior
and the lines of business strategic business objectives and identify associated L&D needs. business partner determine
working from a common learning investment priorities.
understanding of L&D’s “Run the “Advance
1. What are your most critical business objectives?
primary sources of value 2. How does this investment contribute to business performance? Business” the Strategy”
creation, conversations 3. Will this investment generate intellectual capital that enhances the
Inside CNA 35% 25%
organization’s competitive position?
regarding which L&D
Outside CNA 25% 15%
investments to make remain
focused on the potential
value created by investments 3. Comparison to Ideal Portfolio
and their implications for Learning team leader and senior
“Our L&D investment-prioritization framework provides
Four–Month Planning Cycle

business performance. business partner assess the
an accountability tool to ensure that conversations
allocation of proposed L&D
Senior line partners are with our business partners are constantly focused
■■
investments against investment
able to visualize portfolio- on tying investments to critical business outcomes.” strategy criteria.
level trade-offs and make “Run the “Advance
Vice President Business” the Strategy”
informed decisions about
Knowledge and Learning 20% 40%
how to allocate resources Inside CNA
CNA Financial Corporation
toward truly critical L&D Outside CNA 10% 30%
priorities.
5. Final Portfolio Rationalization 4. Investment Trade-Off
Assessment
L&D team leaders and senior business L&D team leader and senior
partners identify primary opportunities business partner analyze portfolio-
for value creation and prioritize level trade-offs based on the value
investments accordingly. of alternative investments.
“Run the “Advance
Business” the Strategy”
Eliminate? Maintain?
From CLC Learning and Development Inside CNA 25% 35%
De-emphasize? Emphasize?
www.ldr.executiveboard.com Outside CNA 10% 30%
27
CNA Financial’s platform
enables the L&D function
Balance Planned and Emerging Needs
to model the impact of
addressing unplanned L&D Investment Trade-Offs
opportunities on the Illustrative
overall structure of its
learning investment Off-Cycle Request #1 Off-Cycle Request #2 Off-Cycle Request #3
strategy. SVP BU A SVP BU B SVP BU C
Emerging Insurance Fundamentals Claims Payment E-Learning Course
■■ The learning function Needs for New Claims Methods Simulation Library for Project
can use the investment Adjusters Exercise Managers
management platform to
identify how the fulfillment
of an emerging need Investment Mix
may impact its current Implications
investment portfolio. 35% 25% 30% 50% 5% 15%
■■ The learning function
assesses the “portfolio
impact” of the need against
25% 15% 5% 15% 35% 45%
its urgency.
Severity of Impact
■■ The platform provides Low Medium High
on Investment Mix
a degree of flexibility
in closing emerging
Criticality of Need
performance gaps while High High Low
maintaining the investment
allocations set with senior Recommendation
business partners. Pursue Pursue Decline
Modifications to ■■ Scale Down New ■■ Scale Down Project None

Portfolio Required Manager Training Management Training
■■ Postpone E-Library
Rollout to Next Fiscal Year


28
WHAT QUESTiOnS OR COMMEnTS DO YOU HAVE?


29
CLC Learning
Value-Driven
Needs Analysis
L&D Needs Analyzing
L&D Needs


30
Questions to Identify L&D Needs
Identify Critical Learning Needs
Use the following questions to identify L&D needs at your organization. These questions are segmented by audience to allow you to develop a holistic
understanding of learning needs and balance these needs with organizational priorities.
Questions to Ask Business Leaders1

What are the division’s goals for the next year?
How will you measure success, and what are you accountable for?
What are the most important skills individuals need to meet these goals?
What are the opportunities and risks in the current skills of individuals?
What is driving any change in the individual skills required from employees?
What are the other strengths and weaknesses of your division that influence achievement of these goals?
Questions to Ask Line Managers

In which areas are employees performing, well and where are they underperforming?
How does individual underperformance impact business performance?
What are the key challenges (individual, organizational, and/or environmental) to employees achieving performance expectations?
What are the most important skills for individuals in your department, and why are they so important?
If the importance of those skills has changed, what have been the key drivers?
In the future, what do you expect to be the most important individual skills?
Questions to Ask Individual Employees

Which skills are most important to develop to increase performance in your role?
What information do you need to be more effective in your current job?
What are the skills you use most often in your role? How effective are you at them?
What skills/behaviors do you think would help peers in roles similar to yours improve their effectiveness?
Which skills are most important to enhance for your personal development?
Do you have any suggestions for improving the development activities provided by the organization?
Through what types of L&D activities and services do you find it easiest to consume learning?
1 These questions could also be asked to line managers.


31
Portfolio Management Guidelines
Balance and Manage the L&D Portfolio Over Time
Use the chart below as a guide to manage your L&D portfolio. Explain L&D’s priorities to business partners, work with them to analyze their training proposals, and
identify potential portfolio trade-offs based on the value of alternative projects.
Questions to Ask Business Partners to Identify Project Placement Within the Matrix
1. What are your most critical business objectives?
2. How will this L&D investment contribute to business performance?
3. Will this L&D investment generate intellectual capital that enhances the organization’s competitive position?
Investments to… Run the Business Advance the Strategy
Proprietary knowledge and Proprietary knowledge and skills

skills focused on promoting the required to enable the achievement
effectiveness of operations and of organizational growth targets
Build Proprietary
processes
Knowledge
Generic knowledge and skills focused Generic knowledge and skills required
on promoting the effectiveness of to enable the achievement of
operations and processes organizational growth targets
Build Generic
Knowledge


32
Needs Analysis Self-Assessment
Use this questionnaire to self-assess the strength of your needs analysis process across four critical needs analysis activities. Please rate your L&D function against
the following questions using a five-point scale where 1 = never, 3 = sometimes, and 5 = always.
Identify Critical Learning Needs

1. We proactively identify business needs and suggest solutions.
2. We segment needs identification questions by audience.
3. We focus on the short-, medium-, and long-term needs of the business.
Score:_ _______ out of 15
Define L&D and Non–L&D Solutions

1. We evaluate L&D and common non–L&D root-cause issues to business problems.
2. We identify appropriate (L&D and non–L&D) solutions to business problems.
3. We target improved employee performance.
4. We share responsibility for addressing L&D–related issues between the L&D function and the business.
Prioritize High-Impact Investments

1. We receive standardized and comparable L&D requests that contain key information.
2. We apply a consistent set of L&D function goals-aligned project prioritization criteria.
3. We prioritize L&D investments by considering business, L&D, and organizational impact.
Balance and Manage the L&D Portfolio Over Time

1. We manage L&D activities to a targeted value distribution of L&D projects in the portfolio.
2. We define a model L&D portfolio based on internal and external information, which balances investments that advance strategy and drive day-to-day
business effectiveness.
3. We agree to trade-offs with the business based on the value of alternative investments and resources.


33
CLC Learning and Development
CORPORATE
LEADERSHIP
COUNCIL
CORPORATE EXECUTIVE BOARD


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CLC Learning and Development

CORPORATE EXECUTIVE BOARD

Rethinking Needs Analysis

Copies and Copyright

From CLC Learning and Development

© 2011 The Corporate Executive Board Company.

■■ Only one-third of executives

Source: Building Organizational Capabilities, McKinsey & Company, 2010.

From CLC Learning and Development

© 2011 The Corporate Executive Board Company.

■■ As the first step in the

Risks Arising from

From CLC Learning and Development

© 2011 The Corporate Executive Board Company.

More time spent by managers in trying to support learners in

More time spent by L&D after the learning intervention supporting

More time spent by L&D educating learners attending programs

More money spent on unnecessary learning solutions

From CLC Learning and Development

© 2011 The Corporate Executive Board Company.

© 2011 The Corporate Executive Board Company.

From CLC LEArNINg AND DEvELoPMENT

© 2011 The Corporate Executive Board Company.

Learning Needs Analysis L&D Portfolio Prioritization

L&D’s Solution L&D Ownership L&D’s Solution Relevance

From CLC Learning and Development

From CLC Learning and Development

© 2011 The Corporate Executive Board Company.

LEARninG nEEDS AnALYSiS L&D PORTFOLiO PRiORiTiZATiOn

Clarify ownership of Solutions

From CLC Learning and Development

© 2011 The Corporate Executive Board Company.

Analysis Planning Delivery Evaluation

■■ CAT U employs an iterative

LLMs summarize line-specific learning CAT U leadership rolls up college

From CLC Learning and Development

managers (LLMs) and staff future direction in 5 to

surfacing and diagnosing Business Unit Leadership

LLMs and college-level project managers

Organizational Business Unit Department Team Learning Individual Learning

© 2011 The Corporate Executive Board Company.

LEARninG nEEDS AnALYSiS L&D PORTFOLiO PRiORiTiZATiOn

Clarify ownership of Solutions

From CLC Learning and Development

© 2011 The Corporate Executive Board Company.

Key Principle of “Performance-Based” Develop

© 2011 The Corporate Executive Board Company.

Identifies all the barriers to performance

© 2011 The Corporate Executive Board Company.

1 Used to define new or existing jobs.

© 2011 The Corporate Executive Board Company.

■■ What do you want the target employee audience to do?

■■ L&D uses a four-quadrant

■■ Is it a lack of knowledge of the target employee audience or of other

desired state due to a lack of desired state due to an environmental

audience or of other individuals as well? are causing this gap—is it insufficient

Source: Thomson Reuters; Performance Consulting UK.

© 2011 The Corporate Executive Board Company.