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Society for the Plastics IndustrySouthern Region

Presents…

Competitiveness Series #4

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Investing in Human Capital to Build a Workforce

Prepared to Compete

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Today’s LearningObjectives

1. Understand human capital return on investment2. Link your human capital programs to the business3. Understand how Senior Leader’s see Human Capital4. Learn from others like you5. Participate in an interactive “Consulting Session” 6. Review some good idea product examples

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Session Feedback

• Start with the end in mind!

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Business Card Exchange

1. Position?2. Type Company? Plastics; Other3. Product?4. Number of Employees?5. Number of Locations?6. #1 Challenge?

Take a Blue Slip

Our Way to Communicate!

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Take a Blue Slip

• What do you want to learn today?

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Agenda10:00 – 11:00 Kick Off

Let’s Get Out of the Box with Some Big Picture Thinking

11:00 – 12:45 Senior Leader Panel Discussion

12:45 – 1:15 Lunch/Break/Networking Time

1:15 – 2:15 Review & Bemis Case Study

2:15 – 3:00 Practical Exercise

3:15 Good Idea Demonstrations

Getting Out of the Box… Big Picture Thinking!

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Leaping AheadLearning from Others…

•Proof of Principle – Can modernized Human Capital Programs significantly increase

an organization’s ability to accomplish its mission more resource efficiently? YES

Done

•Proof of Concept– Has the Principle been proven in similar organizations? YES Done

•Proof of Design – Can modernized Human Capital Programs significantly increase

YOUR organization’s ability to accomplish its mission more resource efficiently? YES - But . . .

– Depends upon YOUR application in YOUR specific circumstance To Do

?

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REQUIRED Level of Performance

CURRENT Level of Performance

PerformanceGap

Mea

sure

s of P

erfo

rman

ce

…It is All About Performance!

ResourcesRequired

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Fundamentals“Managing today is about finding great PEOPLE, linking them

with ideas, processes, and resources, and ENABLING them to produce something remarkable that leads to VALUE!”

• Leaders are Responsible for—– Clear Goal Definition and the plan.– Providing sufficient resources– Ensuring people have the correct knowledge and skills

• Employees are Responsible for—– Accomplishing goals and objectives– performance– Contributing to Team Improvement

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REQUIRED Level of Performance

CURRENT Level of Performance

Options:1. Re-allocate Current Employees2. Hire Experienced 3. Hire New People4. Work Overtime5. Increase Productivity6. Change the Process (Lean)7. Increase Capacity (Automate)

PerformanceGap

Mea

sure

s of P

erfo

rman

ce

…It is All About Performance!

ResourcesRequired

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Supporting the Business

The Mission:Provide employees in the right numbers in the right skills at the right time to meet business needs.

The Goal: An agile, competent workforce capable to move at the speed of business.

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Generate Labor

Requirement Recruit Interview Orientation

Initial Assignment

•Probationary On the Job

Training

•In Service Training

•Specialized Training

•New Job Required Training

Track/Assign/

Determine Proficiencies

Promotion Reqs Met

Human Capital “End to End”Initial Entry

CommonTraining

Business Focus:Labor Cost

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Time of Service: 30 Year Career

Joe 1 Joe 4Joe 3Joe 2

High Quality/High Quantity

Low Quality/Low Quantity

Most Productive YearsLower Skills/

Experience

Leveraging Experience

Low Cost High Cost

Lower PhysicalAbilities

High Skills

Take Advantage

of these TalentsShorten

this time period

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Success Principles

1. Business Focus (People, Process, plus Material = Products)

2. Senior Leaders Must Personally Engage3. Centralized Planning and Decentralized Execution4. 1st Line Supervisors are Primary Trainers and

responsible for performance5. Be Accountable to meet Return on Investment

Predictions6. Start with the end in mind: Big Picture Thinking

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…Start with the End in Mind!• Who are the people we are trying to serve?• Why are we doing this?• What kind of experience do we want our people to

have?• What kinds of media are most appropriate for the

subject and audience?• How much can we ask our training/instructional

staff to change the way they do things?• How are we going to measure progress?

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Quantity vs. QualityMove the Employee in the right Direction –

High QuantityLow Quality

Qua

ntity

of W

ork

Quality of Work

Low QuantityHigh Quality

Low QuantityLow Quality

High QuantityHigh Quality

New Guy

Go To Guy

What is our plan to move our people along the correct developmental path?

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Soft Skills Development

Career

Complex Tasks

Life Cycle Skills Development Program

ManagementSkills

Basic Skills

Intermediate Skills

SupervisorDevelopment

Training

Supervisor Skills

Training

Advanced Skills

Initial Entry

Skills Training

I

MentorSkills

V

Competency Level

Experienced Personnel

Employment Skills

Skills Evaluation

BasicTrainingPractical

ApplicationCoaching/ Evaluation

Practical ApplicationCoaching/ Evaluation

Practical ApplicationCoaching/ Evaluation

III

II

IntermediateTraining

AdvancedTraining

IV

Pre-Employment

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Learning:Effort vs. Competency

1. “I know” skill: – Exchange of Information– Computer Based Training

2. “I can do” skill: – Performance based skills transfer– Computer Assisted Instruction

3. “I can adopt and apply” skill:– The actual performance requirement– Practical Application and Coaching

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Understand the Cost of Training

0 10 20 30 40 50

Admin Labor & Other

Classroom InstructionTime

Materials

Instructor ContactTime

Student Labor

%

Overwhelming Cost of Training is Student Labor

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Sample Performance Metrics

1. Productivity of Work Units (Cost, Schedule, Quality, Safety, Revenue)

2. Quality of Work Units (Reduction in rework, customer complaints)

3. Employee Retention Rates4. Internal Promotion Rates5. Absentee Rates6. Employee Accident/Incident rates7. Time for New Hires to begin productive work: “Time to

Competency”8. Smile Sheets9. Supervisor Feedback

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Measurement and Metrics

1. Did you waste your time?2. Did you learn what the course was

designed to teach you?3. Could you do your job better?4. How much did it cost to train you versus

the performance improvement gained?5. Did the business get better?

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Metrics ProcessWhat is the Business Objective?

What Measurement Methods and tools will we use?

Who are the Stakeholders and what do they need to know?

Which Framework is best?

How should we collect and analyze the Measures?

What do the Measures tell us and how should we change?

Modify Measures

Modify Processes

What Should I Measure?

Aid Decision-Making

Outcome

Program

System

Goal:Predictive

Measurement

Three Levels:

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Performance Improvement“A Systems Engineering Approach”

• How are you doing it now? Current State Map

• What are the opportunities for improvement? Good Idea List

• What does the future system look like? Future State Map

• What does the perfect system look like? Perfect State Map

• How do we get from here to there? Plan of Action and Milestones with Resources Required and Return on Investment Prediction

Senior Leader Panel Discussion

Use the Blue Slips!

Case StudyBemis Manufacturing

Practical Exercise

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Performance Improvement“A Systems Engineering Approach”

• How are you doing it now? Current State Map

• What are the opportunities for improvement? Good Idea List

• What does the future system look like? Future State Map

• What does the perfect system look like? Perfect State Map

• How do we get from here to there? Plan of Action and Milestones with Resources Required and Return on Investment Prediction

Scenario

Barto Plastics Company

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Corporate Overview

• Product: 3 Plastic Containers• 3 Locations in United States (Virginia, Michigan, and

Ohio)• 350 Employees

– Skilled: 200– Unskilled: 150

• Current Training Program: On the Job Training• Business Problem:

– Increase capacity from 10,000 to 50,000 per day.– Decrease cycle/change-over time– Aging Equipment with decreasing reliability– Acquiring a new plant to increase capacity in next year

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Production Identifies

Requirement

HR PostsRequisition &Sends to OET

HR Receives

Applications

HR SchedulesInterviews

Welding Test Hiring Decision

Drug Screen and

Physical

Applicant Given Report

Date

HR AdminInprocessing

8 Hours of Video

OSHA Training

OJT Training

Hiring Process – Current State

Offer Sent

ProductionInterviews

Hiring Tact Time: 80 daysCost: $1,000Time to Competency: 2 yearsAttrition Rate: 1st Year 50%Hiring Forecast: 10 per month

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Current State

The Process

A Repeatable Template

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• Phase 1 – Data Gathering and Understanding• Phase 2 – Design• Phase 3 – Development• Phase 4 – Pilot, Data Capture, & Analysis• Phase 5 – Roll-Out• Phase 6 - Enterprise Implementation

A Systems Engineering Approach

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Phase 1Task Training Program

MilestonesCourseware milestones

Integration milestones ROI Milestones

Phase 1 – Data Gathering and Understanding

-Confirm training requirements, pre-requisites, re-certification criteria, etc.-Review frequency and volume of each course -Determine student selection criteria-Identify and specify end user equipment requirements-Map current process flow

-Analyze content and requirements of course offerings-Identify for each course the core elements for competency-Categorize core elements by complexity level-Identify technical infrastructure requirements to support delivery

-Determine interface requirements for feeding data into Management System-Identify system testing methodology and process flow

-Interview key stakeholders on metrics for success criteria-Identify evaluation methods for ROI levels 1-5

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Phase 2Task Training Program

MilestonesCourseware milestones

Integration milestones ROI Milestones

Phase 2 – Design

-Map proposed process flow from selection to evaluation for each Use Case-Develop proposed procedures-Communicate process and procedures to Technical staff for system design and integration

-Develop a detailed Design Plan and Instructional Strategy document-Define the type of training, pages, content, navigation, graphics, user interfaces via Use Cases

Develop proposed database structure and conventions based on Business Rules

-Develop a comprehensive ROI impact study-Create data collection tools and process

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Phase 3

Task Training Program Milestones

Courseware milestones

Integration milestones ROI Milestones

Phase 3 – Development

-Create instructional documentation of the new Training Program process incorporating Training Management Functional requirements

-Program and test Tier 1 and Tier 2

Develop a Technical Prototype to ensure management system interface is defined and tested

Update Evaluation system

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Phase 4

Task Training Program Milestones

Courseware milestones

Integration milestones ROI Milestones

Phase 4 – Pilot, Data Capture, and Analysis

-Pilot the program with a statistically significant sample size-Confirm or make adjustments to the Business Model as required

-Pilot the courseware with a statistically significant sample size (Phase Tier 2 after Tier 1)-Modify as necessary

-Complete data integration of piloted sample-Confirm or modify as required

Conduct detailed ROI analysis of the sample based upon predetermined success metrics

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Phase 5

Task Training Program Milestones

Courseware milestones

Integration milestones ROI Milestones

Phase 5: Roll-Out

-Tier 1 program is fully implemented, tested, and evaluated prior to Tier 2 implementation

-Full implementation of Tier 1 and Tier 2 in phases-Test and evaluation of the courseware

-Complete data integration Tier 1 and Tier 2 in phases

Conduct detailed ROI analysis based upon predetermined success metrics

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Phase 6

Task Training Program Milestones

Courseware milestones

Integration milestones ROI Milestones

Phase 6: Enterprise Implementation

Incorporate Tier 3 (TBD)

Incorporate Tier 3 (TBD)

Incorporate Tier 3 (TBD)

Incorporate Tier 3 (TBD)

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Pre-Concept Understanding

Executive Review Board (ERB)• Sets Strategic Direction based on business priorities

Evaluate the appropriate-

ness of project concept

Assess the viability,

value, return on

investment, and risk; complete high-level

design

Develop detailed

project plan. Document agreement

Develop and verify offering

against specifications

Conduct final test/pilot.

Proceed to completion if

valid

Ramp to full production.

Communicate to audiences

Determine ongoing

demand for current

course or need to

update/delete

Roll OutCreation and Development

Definition and design

Analysis Pilot Implementation

and testing

Manage LifeCycle

Project Management Life Cycle

FundNext

Phase?

FundNext

Phase?

FundNext

Phase?

No No No

Yes Yes Yes

Scores, Ranks. and selects projects based on defined criteria

Reviews projects at measurable checkpoints that set boundaries to monitor and fund the project

Evaluates projects to determine whether components can be reused

ERB Actions: Defines what needs to be included in the business case and the criteria it will use to judge the projects

Program Planning Model

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Jan DecNovOctMar SepAugJulJunMayAprFeb

May 1- 31

Analysis andUnderstanding

PilotProgram Decision

June 1 – Aug 31

Definition and Design

Oct 2 – Oct 16

Pilot/Prototype Creation and Developmentand Systems Integration Test

Oct 1 – March 30, 2004

Courseware Development

Execution Decision

July 1, 2003 – Sept 30

Training Model Development

July 1, 2002 – Jan 31

Program Implementation Support

Sample Training Modernization ProgramPlan of Action and Milestones

Phase 3Phase 1 Phase 2

ERB Program ReviewsMonthly

Courseware Vendor Selection

Dec 1 – Jan 31

SOJT Pilot Begins

Strategic Communications Program

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Jan DecNovOctMar SepAugJulJunMayAprFeb

Dec 1 – April 30

Pilot Implementation, Data Capture

Jan 1 – March 30

Courseware Development and Automated Support Tool Integration

June 1 – Aug 31

Integrated Training Integration and Testing

Sep 1 – Dec 31

Training Pilot

Strategic Communications Program

Sample Training Modernization ProgramPlan of Action and Milestones (continued)

Phase 6Phase 4 Phase 5

MajorReport

Out

Jan 1 – June 30

Integrated Training Strategy Development

ERB Program ReviewsMonthly

MajorReport

Out

FinalReport

Out

Dec 15 – August 31

Special Skills Analysis

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Phase 1: Data Gathering and Understanding

• Time: ~ 4 weeks• Deliverables:

– “Current State” Human Capital Value Stream Map– Total Cost of Ownership Model “Current State”– Defined Client application of the Life Cycle Skills Development Model– Identification of Key Cost Drivers – Develop and Define a list of “Good Ideas” for Management Review– Establish an Executive Review Board and Program Team (Client and TMG)– Identification of Stakeholders with defined Value Propositions– Strategic Communications (Internal and External)

• Client Requirement: – Provide an Internal Program Manager– Full Access to gather information by TMG Program Manager– Non-Intrusive Information Gathering – Decision on which Good Ideas to further Develop into Pilot Project(s)

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Top Seven Training Populations (-) Engineering

979 967 933

796 776 768710

0

200

400

600

800

1000

1200

X11 X18 X33 X31 X36 X42 X43

5929 Total Population

Training Audience Analysis

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Some Good Ideas

1. Apply the Life Cycle Skills Development model to develop Client Career Maps linked directly to Lean Value Stream Map

2. Use the Process Step Skills List to develop Client Team “Visibility” Map with Bench Strength analysis… The Client Depth Chart!

3. Detailed Skills Training and Development Program4. Technology Enhanced Hiring and Orientation Program5. Team Leader Development Program6. Technical School Out Reach Program7. Use ACT Work Keys as Pre-Hiring Skills Assessment 8. Use 2nd Shift as a Training and Development Center9. Others?

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Phase 2: Definition and Design

• Time: ~ 6-8 weeks• Deliverables:

– “Future State” Human Capital Value Stream Map – Total Cost of Ownership Model “Future State”– Pilot Project(s) Return on Investment Predictions– Pilot Metrics Definition Document– Expanded Pilot Project Architecture Document – Detailed Plan of Action and Milestones with Test Plan for Pilot Project

Implementation.– Strategic Communications Campaign Revisions and Execution

• Client Requirement:– Assign Project Team for each Pilot Project (Program Manager, IT Point of

Contact, and Specific Team Members/Subject Matter Experts as required) – Allocate Resources

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Phase 3: Creation and Development

• Time: ~ 2 -3 Months• Deliverables:

– Build the System and its components– Produce Pilot Project User and Technical Documentation – Define a Testing Plan and scenarios with Data Capture and Test Plan– Strategic Communications Campaign (Internal and External)

• Client Requirement: – Chair Monthly Executive Review Board meetings and provide

guidance to Program Team– Approval/Guidance at Designated In Progress Reviews– Implementation, Data Capture and Analysis as required by Project

Team

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Future State

Current State

The Training Program

Courseware Updates and Development(ILT, CBT, CAI,)

Program Re-Design(ROI/Metrics/Instructor Training/Method Revisions)

Automated Support Tool(LMS, Computers, DML)

Phase 3: Creation and Development

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Phase 4: Pilot Implementation, Data Capture, and Analysis

• Time: ~ 2 Months • Deliverables: Based Upon Each Pilot Project

– Test the System and all components– Measure results and compare to ROI prediction.– Adjustments as required.– Map ROI to organization needs– Determine Enterprise Implementation Strategy– Strategic Communications Campaign Continues

• Client Requirement:– Continued Support & Access – Implementation as Agreed in Test Plan Concept

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Phase 5 - n: Roll Out and Implementation

• Time: TBD • Deliverables:

– Determine Roll Out Implementation Strategy – Based upon Test Results Identify Other Areas within Enterprise

where model applies and begin compressed Phase 1 – 4.– Make Pilot Adjustments as required.– Map and generate ROI data to organization needs– Strategic Communications Campaign Continues

• Client Requirement: TBD

Let’s Wrap It Up

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Random Thoughts…from the Trenches

• Aging of the Workforce• Attrition• Courseware Vendor Selection and

Management• IT/LMS/LCMS Debate

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Trainer’s Creed

• Must Enhance PERFORMANCE!

• Reduce Time and Effort between Subject Matter Experts and Users (Trainers/Educators, Developers, Resource Managers, Students, Managers, Others)

• Increase Senior Leader Confidence in Resource Decisions Based upon Empirical NOT Anecdotal Evidence – Visibility on Long-Term Consequences of Near-Term Decisions

Biggest competitor is “Do Nothing”!

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Today’s LearningObjectives

1. Allow you to make better human capital decisions or recommendations

2. Understand human capital investment justifications3. Link your human capital programs to the business4. Understand how Senior Leader’s see Human Capital5. Learn from others like you6. Participate in an interactive “Consulting Session” 7. See some product examples

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Take a Blue Slip

• What did you learn today?

• If you were “King” what would you do when you get home?

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Thank You!

Product Demonstrations

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REQUIRED Level of Performance

CURRENT Level of Performance

Web Based Instructor Led Performance Oriented (Hands On)Computer Based Paper BasedElectronic Performance Support

PerformanceGap

Mea

sure

s of P

erfo

rman

ce

…It is All About Performance!

ResourcesRequired

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Synchronize and Integrate Current Systems

Human Resources Systems

Accounting Systems

Training Systems

Enterprise LearningCenter

…to create a Leader’s Decision Support Tool

High PerformanceOrganizations

Connectivity ContextPIPES

NetworksBandwidth

USER ACCESSEnd Points

Delivery Tools

ContentINFORMATION

&COURSEWAREDigital Library

Resource Allocation Model

Delivery to Individual & Groups When and Where Needed

Focus onEfficiency Merge

Operational andTrainingSystems

“Content is KING”

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$$$$ Learning ManagementSystem

Market and BusinessEnvironment

ROIJob CommitmentProductivityTurnoverProfitability

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: 56K 1.5Mb 10Mb 100Mb 1,000Mb

Product Integration Engine

Bandwidth RequiredSelected Media LoadText Graphics Animation Audio Video Simulations

Paper Slides Video CD / DVD

Physical

Electronic

Technology Gives Learners, Leaders, Trainers, and Instructors More Choices!

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Where Are You Now? Where Do You Want to be?

When?

Learning Domain

Educ

atio

n Te

chno

logy Advanced Distributed Learning

Intelligent TutorsReusable Objects

Knowledge DatabasesDesktop Simulation

EPSS

Classroom

Distributed LearningPC-Based VTT

Web-Based

Distance LearningCorrespondence Courses

Travelling ProfessorsVideo Tapes

CD ROMVTT

Any TimeAny Place

Right TimeRight Place

My Time My Place

Program will have parts

in all the spaces!

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Technology…

Connects the Individual to the Organization

The critical concept . . .“If the technology does not support or INCREASE your PERFORMANCE level or make the USER’s job easier, then do not invest.”

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The Challenge

“If you can describe the process from “end to end” by which you operate, the technology decisions are easy.”

AND . . .

1. You Must Understand Everyone’s Perspective.

2. You Must Identify and Work to Accomplish Each Value Proposition.

3. You must leverage existing programs and migrate current successes to future programs.

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2002 2003

Changed the Instructional Model

Instructor LedTraining100%

Instructor LedTraining

6%

Computer Assisted Training

55%

Computer Based Training

39%

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eLearning Principles Decide on Metrics (Expected Outcomes) Up Front…Organizational

Performance Metrics - NOT Technical Standards! Subject Matter Experts Create and Maintain Current and Relevant

Content…the Information Learning Media (i.e., Courseware, Information, Text, Video, Paper, iDVD,

Classroom Instruction, etc.) is Selected/Modified/Created as Close to the Intended Training Audience as Possible

 Must Keep the “Information” Separate from the “Technology” until the Learner and their environment has been defined.

  Technology gives the learner, leaders, trainers, and administrators more delivery options than ever before

 eLearning is NOT an “Either/Or” Decision…It is an Integration Issue (Physical vs. Electronic)