Skillsoft Blog

Talent Development Reporting Principles (TDRp): The evolving standard for reporting on human capital

By David Vance

We’re pleased to bring you a guest blog post
by David Vance, Executive Director, Center for Talent Reporting. Don’t miss
David speak at
2013 Global Skillsoft Perspectives!

Accountants have the Generally Accepted Accounting
Principles (GAAP) to guide them in their reporting. There are standard reports
like the Income Statement and Balance Sheet, standard definitions of terms, and
a common vocabulary. Why don’t we have something similar for learning and development
in particular and for HR in general?

Talent Development Reporting principles or TDRp is an
industry-led effort to provide just that for the internal reporting on human
capital. TDRp, pronounced T..D..R..P, began in October 2010 when Kent Barnett,
CEO of Knowledge Advisors, and Tamar Elkeles, VP of Organizational Learning and
Communications at Qualcomm, decided the time was right to address this
long-talked-about need.  They
brought together a group of industry leaders to develop a set of principles for
internal reporting, including recommend statements and reports for human
capital measures. TDRp was completed for L&D in 2011 and extended to the
other key HR processes in 2012. The principles, statements and reports bring a
discipline to the field heretofore lacking, providing a common vocabulary and
reporting framework for all the existing measures. Moreover, TDRp is designed
to facilitate the upfront, strategic discussion with leaders and stakeholders
about the expected value of human capital initiatives and to provide the
reports necessary to actively manage the initiatives to successful completion.

In a nutshell, TDRp classifies all measures into three
buckets: outcome measures, effectiveness measures and efficiency measures.
Outcome measures capture the organization’s goals and HR’s impact on those
goals. Effectiveness measures are about the quality of the process or
initiative, and efficiency measures are about how much, how many and at what
cost. Next, these standard measures are grouped into three statements. The
Outcome Statement contains the outcome measures, the Effectiveness Statement
the effectiveness measures, and the Efficiency Statement the efficiency
measures. Summary or high-level statements, typically less than one page in
length and focusing on the key measures, must contain last year’s actual
results, plan, and year-to-date progress against plan. Detailed or lower-level
statements may contain more measures, greater detail, and/or monthly or
quarterly data and focus just on actuals.

Reports are designed for different audiences but in all
cases are meant to be used to manage processes or initiatives on a monthly
basis to deliver planned results. The Summary Report will contain the most
important measures from each of the three statements and is intended for the
CEO, SVPHR, and other senior leaders. The Program or Process Report also pulls
key measures from all three statements but focuses on just one program or
process and is meant to be used by the program or process manager. Last, the
Operations Report focuses on the key efficiency measures and is intended for
the HR department heads. In addition to the columns required for the summary
statements, the reports will have a forecast for each measure.

Hundreds of organizations are already using TDRp.
Consultants are beginning to provide help to clients in implementing TDRp, and
software vendors are beginning to make their products compliant with TDRp. A
nonprofit organization, the Center for Talent Reporting, was established in
August 2012 as the permanent home for TDRp. The Center offers webinars and
workshops as well as certification for individuals, consultants, organizations and
software. The next workshop is in Alexandria, Va. June 6-7.

Learn more at www.CenterforTalentReporting.org where
numerous white papers, sample statements and reports, and lists of measures are
available at no cost. Contact David
Vance at 970-460-0837 or DVance@CenterforTalentReporting.org.

Don’t miss David Vance
at Skillsoft Perspectives. Register
today.

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