Arriffin's second file on TNA

1. Training Need Analysis
By
ARRIFFIN MANSOR
Atul©Mathur
2009
www.atulmathur.com

2. Training Need Analysis
A corporate approach
Arriffin Mansor
2

3. 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 ?
3

4. Training Development Process
4

5. Training Development Process
Performance gaps
Competency gaps
Training needs
ROI training
5

6. Steps in TNA
6

7. Training Need Analysis
Competency Identify
Performance Training
Gap Analysis
gaps Training
Analysis Delivery
Needs
over the Cluster and On the job
financial Person
combine or off the
Statements competency
competency job training
comparing Profiling
gaps into options
against against best
standards core and
practices
other
competencies

8. 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
8

9. TNA for performance gaps
TNA VG 9

10. 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

11. What is KPI in graphic?
Input KPI
KPI2
After
Before
Before After Output
11 11

12. Sale per ringgit Advertising
Advertising Sales/advertising
KPI2
After
Before
Before After Sales
12 12

13. Pulangan terhadap Ekuiti
13

14. 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

15. Zero to critical competency
gaps
15

16. The Total Performance Model
Sales
Gross Margin
Net Profit
Net Profit
Margin
÷
Cost Of
Return On Financial Goods Sold
Return on
Net Worth Leverage Assets
Sales Total Expenses
=
x x
Inventory
Total Assets Net Profit
Net Worth x Total
Assets Sales
Asset
Turnover
Current Assets
Accts Rec.
÷
Total Assets
Fixed Other Current
16 Assets Assets

17. PERFORMANCE GAPS
Analysis Assess
Analysis Vision Key Result Areas Key Result Measures
Mission
17

18. Vision and Strategy
Financial Customer Process L and G
Objectives
Measures
Strategy-
Translation
Process
Targets
Initiatives

19. Komponen Balanced Scorecard: Strategy Map
TO BECOME MALAYSIA’S LEADING INFORMATION AND COMMUNICATIONS SERVICES
Alignment to PIPV2.0
PROVIDER F1. Increase Shareholder Value Key Initiatives
Perspectives
1 Profitable Revenue Growth 2 Effective Cost Management Commercial
Financial
Excellence
F2. Higher Operational
F3. Healthy F4. Cost
TM Cash Flow Excellence
Profitability Efficiency
HSBB/NGN
Implementation
3 Delight The Customers And Create Synergy With Partners
Customers: Consumer & Business, Enterprise & Government, Partners: (Reseller,Vendor,Govt Agency) Relevant
Customer
SME/Corp.Govt, OLOS, Global Players Subsidiaries
Rationalisation
C1. Innovative C3. Effective
C2. Reliable Supply Chain and C4. Good
Products and High Corporate Create One
Valued Solutions Services Partner Relationship
Management Citizen Company
Mindset
4 Innovation & Service Excellence Cut Across
All PIP
IBP1. Drive IBP2. Achieve IBP3. Successfully IBP4. Accelerate
Commercial Operational Implement Relevant Subsidiaries
Internal Business
Excellence Excellence HSBB Rationalisation
IBP5. Effective risk IBP6. Optimise
Process
and regulatory Manpower &
management Productivity
5 Create One Company Mindset
Growth
Org.
Learning &
OLG1. Develop
Strategic Skills OLG2. Ensure Org.
and Competencies Effectiveness

20. 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
20

21. 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
21

22. Training?
Training helps to
Existing bridge the gap Required
• Skills • Skills
• Knowledge • Knowledge
• Attitudes • Attitudes
22

23. Training Need Analysis (TNA)
TNA is a tool to
Existing identify the gap Required
• Skills • Skills
• Knowledge • Knowledge
• Attitudes • Attitudes
23

24. TNA (Step 1): Future performance
What are the goals for the future
performance of our organisation?
• profit
• growth
• customer base
• new products
•?
•?
Existing Future
performance performance
24

25. TNA (Step 2): Challenges
What are we concerned about?
What’re the challenges today?
What challenges we are likely to
face in the future?
Existing Future
challenges challenges
25

26. 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
26

27. Performance based TNA
MORE
EFFICIENT
27

28. How to obtain the needed
competencies
28

29. 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
29

30. Example of database
Critical Skills for existing jobs
Critical critical critical
Identified job critical skill 4 current employee
skill 1 skill 2 skill 3
customer Responding
use of ALDER
service by to mail
admin clerk I filing/now database
Telephone Requests
/future
/now /now
Current Employee Skills
Use of
answering Spread
Jane Doe type 35 wpm filing use of cash register
telephone Sheet
programs
type 35 Answering copy machine knowledge of Word
Bill Smith cook
wpm telephone repair program
knowledge of
type 40 furniture
Bobby Joe filing AKSAS and use of cash register
wpm moving
Akpay
30

31. The required training
31

32. Types of competencies
32

33. Level of competencies
33

34. 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
34

35. 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
35

36. Types and depths of
competencies
36

37. Steps in training needs
37

38. Evaluating Performance
38

39. 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
39

40. 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
40

41. Examples of KPIs
Education
• % Of graduates who can find work within 6 months
• % Of graduates who have received job offers from
multi-national corporations
• Publications in international journals ÷ staffs
• Publications in international journals ÷ research
projects
• % Of laboratory equipment in use
• % Of texts in elective courses that have been
published in the past 10 years
• % Of courses that have adapted the use of multi-
media software
• % Of incoming students from top-tier high schools
41

42. 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 42

43. Define the problem – the
gaps
Describe Discrepancy
DESIRED PERFORMANCE (Optimal)
- ACTUAL PERFORMANCE (Actual)
= POSSIBLE TRAINING NEED
43

44. 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
44

45. 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.
45

46. ROI
• 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
46

47. More popular Types of Evaluation
• Balanced Scorecard (Drs Kaplan and
Norton),
• Kirkpatrick Four-Level Framework
(Kirkpatrick, 1975),
• Jack Phillips’s Five Levels of Evaluation
47

48. Donald Kirkpatrick’s Model of
Evaluation (1979)
• 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.
48

49. What Companies Do With ROI
Data?
• 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
49

50. Tabulating Cost of the Program
• Cost components that should be included
Tabulating are :
cost of the • Travel, lodging, and meal costs for the
program 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

51. EVALUATE PERFORMANCE
MOTIVATION

52. ROI Process
Inputs
Tabulating
Before
Training
training
Costs
Isolating the Obtain true Calculating
Collecting
Other outcome the Return on
KPI data
Effects Investment
After Calculate
Training IRR
Outputs
52

53. Trend Lines Analysis
Actual sales performance
At the beginning of
The
May, a Sales training difference
Volume of Sales
Program session was represents
held the estimate
impact of
training.
Trend Projection
Jan Feb Mar Apr May Jun Jul Aug

54. ROI of Training Model
Isolate the Convert Data
Collect
Data Effects of to Monetary
Training Values
Identify
Intangible Calculate ROI
Benefits of Training
Tabulate
Program
Costs

55. Instructional Objectives
Why are they important?
• A basis for planning the training
• A roadmap for the learner
• A basis for evaluating effectiveness
of the training
Will objectives ever change during the
delivery of training?
55

56. Examples of Business Results
• Coca Cola – 8 half-day on supervisory skills
workshops – 1447% ROI, Benefit/Cost Ratio 15:1
• Yellow Freight System – Performance Appraisal Course
– 1115% ROI, Benefit/Coast ratio 12:1
• Litton Industries (Avionics) – Self Directed Work Team
course – Productivity increased 30%, Scrap rate
reduction 50%, 700% ROI
• Multi-Marques, Inc (Bakery) – 15 hr Supervisory Skills
Training – 215% ROI, Benefit/Cost Ratio 3.2:1
56

57. How do we measure performance
output as a result of training?
• 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
57

58. Input Output Analysis
• 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. 58

59. 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.
59

60. Performance levels
60

61. Measuring the Output
• 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
61

62. Input Output Analysis
• 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.
62

63. ROI training
ROI =(Value of benefits –cost of training)/Cost of training
Benefit Cost Ratio 71,760 = 2.2:1
32,984
ROI (%) = 38,776 = 118%
32,984
63

64. Objective driven Contents
Section 1
……..
……..
……..
……..
Objectives Section 2
……..
•…….. ……..
……..
•…….. ……..
Section 3
•…….. ……..
•…….. ……..
……..
……..
Section 4
……..
……..
……..
……..
64

65. DELIVERING CUSTOMISED TRAINING
SUCCESSFULLY
“Tell me and I forget, teach
me and I remember, involve
me and I learn”
- Benjamin Franklin
65

66. “Cone of Experience”
People generally remember:
Read
10% of what they read
Verbal
20% of what they hear Hear Words
Watch still picture
30% of what they see Watch moving picture
Visual
50% of what they hear Watch demonstration
and see
70% of what they Do a site visit
say or write
Do a dramatic presentation Kinesthetic
90% of what
they say as
Simulate a real experience (Experiential)
they do a thing Do the real thing
Adapted from Wiman & Meirhenry, .Educational Media, 1960 on Edgar Dale

67. If training is the answer….
• Formal training
• Self study
• Technology based
• Job related/workplace
approaches
67

68. Exercises and Activities
Get 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?
www.islamicbankingcourses.com 68

69. What training activities are available?
Activity Pros Cons
Opportunity to Does not involve
Demonstration provide feedback everyone
Good practice for May be dominated
Role Play participants and by a few
involvement participants
Good for high Passive and not
Lecture content if stimulating
presenter is good
Good focus and May be dominated
Case Study high involvement by a few
participants
High content and Low learner
Panel Discussion variety of involvement
perspectives
www.islamicbankingcourses.com 69

70. Available Training Activities (continued)
Activities Pros Cons
Provide high Not very
Reading
content stimulating
Mechanisms must
Allow for sensory
be in place to
Field Trips perception if well
ensure learning
structured
happens
Highly May be dominated
Small Group Tasks participatory and by a few
task oriented participants
Good focus and Little participant
Video or Film
pre-designed interaction
Highly energizing May be dominated
Large Group
and high by a few
Discussion
participation participants`
www.islamicbankingcourses.com 70

71. Evaluations
• Evaluate based on objectives
• Did the participants:
– learn what you had planned?
– implement what they learned?
– improve their job performance ?
www.islamicbankingcourses.com 71

72. After the Class
KIRKPATRICK
• 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?
www.islamicbankingcourses.com 72

73. Purpose of Training is to
Produce Change In…
• Skills
– how to
– steps
• Knowledge
– critical thinking
– decision making
• Attitudes
– ethics/values
– behaviour
73

74. 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
74

75. Personal Qualities to Look
For in a Trainer
• Self-confidence • Ability to listen
• Sense of humour
• Awareness of • Communication &
environment theatrical skills
• Ability to build • Flexibility
bridges—relate old • Patience
to new
• Cool head & warm
• Organisational skills
heart
• Desire to learn
75

76. 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)
76

77. 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
77

78. The bigger picture
Organisational performance
Employee performance
Employee Skills, Knowledge and Attitudes
Employee education, experience and training
78

79. 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

80. TNA (Step 4): New Skills, knowledge and
Attitudes
In order for our employees to
perform differently, what kind of
new Skills, Knowledge and
Attitudes they need to have?
Existing Required
•Skills • Skills
•Knowledge • Knowledge
•Attitudes • Attitudes
80

81. TNA (Step 5): Training needs
Now that we know what kind of
new Skills, knowledge and
Attitudes are required for our
employees, how can we bridge the
gap?
Existing Required
•Skills • Skills
•Knowledge • Knowledge
•Attitudes • Attitudes
81

82. TNA in essence…
1 Start with future organisational goals and challenges
Assess required employee performance to meet the
2 goals and challenges
Assess required employee Skills, Knowledge and Attitudes to
deliver the performance
3
Identify employee training needs to
bridge the gap
4
82

83. 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 strategies
83

84. INTERNAL PROCESS
INPUT PROCESS OUTPUT OUTCOME
Material variances
Labour
Overhead Efficiency No Average
ratios produced cost per
transaction
Research Productivity Value ROI
dev ratios produced
expense
Inventory Average
turnover lead time
Waste Reduction
84

85. HRM KPIs
INPUT PROCESS OUTPUT OUTCOME
Incentives variances Turnover ratio
Hours Efficiency No Profit per
ratios produced employee
Training Productivity Value ROI
ratios produced
Salary Average Turnover Revenue per
lead time employee
Skill Waste Reduction Employee Value added per
competency productivity employee
85

86. FINANCIAL KPIs
INPUT PROCESS OUTPUT OUTCOME
Material variances
Labour
Overhead Efficiency No Average
ratios produced cost per
transaction
Research Productivity Value ROI
dev ratios produced
expense
Inventory Average RETURN
turnover lead time ON
EQUITY
Waste Reduction 86

87. INTERNAL PROCESS
INPUT PROCESS OUTPUT OUTCOME
Material variances
Labour
Overhead Efficiency No Average
ratios produced cost per
transaction
Research Productivity Value ROI
dev ratios produced
expense
Inventory Average
turnover lead time
Waste Reduction
87

88. MARKETING
INPUT PROCESS OUTPUT OUTCOME
Material Response rate No of customers
Labour Marketing costs % Sales volume
Overhead Efficiency ratios Customers
Profitability
Research Productivity Product ROA
dev ratios profitability marketing
expense
Average cost per Customer acquisition Return on
transaction Sales
Inventory Average lead time Customer retention
turnover
Price rel to Waste Reduction Revenue growth 88
comp

89. Analysis and Improvement
Basics
Internal Analysis:
• Trends: Individuals, Cross-examination, and Overall (with
MCPMT)
• Target Comparison
External Analysis:
• Benchmarking
• Standard Comparisons
89

90. Ratio-format Measures
Private Firm
Upstream Input Process Outputs Downstrea
s es m
Suppliers Staffs Planning Products Revenue and
Profit
Subcontracto Instrument Procurement Services
rs s and after Quality of
Approval
Equipment Sales Services
Production (Replacement,
Facility Reports
Repairs, Return,
Inspection and
Capital Recall, etc.)
Document
Warehousin
Utilities s Customer
g
Satisfaction
Raw
Delivery
Materials Regulatory
90
Compliance

91. Ratio-format Measures
University
Upstream Inputs Processes Outputs Downstream
High Schools Staffs Teaching Graduates Qualifications
for Workplace
Suppliers Students Approval Research
Suitable Skills
SubcontractorsInstrumentsExperiments Reports
and Employment
Budget BureauFacility Review
Documents
Continuous
Budget Planning
Seminars Education
Utilities Procurement
Intellectual Publications
Properties
Revenue
91

92. 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)
92

93. The End
Questions please