Creating a high-performance culture — as learning and talent management professionals, this is something we hear about often. But how to do it? Join this webinar to learn how you can get the most out of an integrated human capital management system by connecting performance and learning to create a high-performance culture.

1. Performance-Driven Learning:
Closing the Loop
You can listen to today’s webinar using your computer’s speakers
or you may dial into the teleconference.
If you would like to join the teleconference,
please dial 1.408.600.3600 and enter access code 924 151 376 #
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2. Performance-Driven Learning:
Closing the Loop
Speaker: Stephan Millard
Director of Product Marketing
SumTotal Systems
Moderator: Mike Prokopeak
Vice President, Editorial Director
Chief Learning Officer magazine
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3. Tools You Can Use
• Q&A
– Click on the Q&A panel (?)
in the bottom right corner
– Type in your question in the
space provided
– Click on “Send.”
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4. Tools You Can Use
• Polling
– The poll will appear on the
right side of your screen
– Select the best option for
each question
– Click on “Submit”
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5. Frequently Asked Questions
Will I receive a copy of the webinar recording?
YES
Will I receive a copy of the slides?
YES
Please allow up to 2 business days to receive these materials
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6. Performance-Driven Learning:
Closing the Loop
Mike Prokopeak
Vice President, Editorial Director
Chief Learning Officer magazine
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7. Performance Driven
Learning: Closing the
Loop
Presented By:
Stephan Millard
Director of Product Marketing

8. Agenda
Process of
Performance Driven
Learning
How to Align
Technology to be
Successful
Understanding The
Metrics
Implementation &
Easy Steps to Start
Page 7 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

9. Process of Performance Driven Learning
Process of
Performance
Driven Learning
How to Align
Technology to be
Successful
Understanding The
Metrics
Implementation &
Easy Steps to Start
Page 8 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

10. Bersin: Talent Management Maturity
Model
Level 4: Business-Integrated HR
HR strategy part of the business strategy.
HR helps to drive business decisions through people, data and insights.
Business and HR systems integrated and advanced.
Level 3: Strategic HR Department
HR aligned with business strategy.
HR functions supporting business needs.
Initiatives split between HR process improvements and talent needs.
Level 2: Fundamental HR Services
HR strategy partially or fully defined. Siloed HR functions.
Some standardized processes and policies; core services managed well.
Some automated talent systems, but little integration of data.
Level1: Compliance-Driven HR Services
No HR strategy.
Personnel function, mostly separate from business and talent needs.
Line managers perform HR activities as they see best.
Bersin & Associates, 2010
Page 9 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

11. Higher Degree of Maturity = Better Results
Page 10 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

12. Effectively Integrating Talent Management is
positively correlated with Market Performance
Please state the extent to which you agree with the following statements:
Correlation
Percent indicating high or very high extent with MPI
Our leaders see integrated talent mgt. 73.6% .21**
as vital to organizational success 36.7%
My organization has processes in 69.4% .20**
place to align talent management to 33.3%
business goals
My organization’s processes and 65.3% .22**
policies support integrated talent 23.3%
management
My organization effectively integrates 61.1% .23**
the components of talent 20.0%
management
Market Performance
Indicator Score (MPI)
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%
Higher Performers
Lower Performers **Correlations with Market Performance Index are all significant at p<.01 (2-
tailed)
Institute for Corporate Productivity (I4CP), 2011
Page 11 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

13. What Do Market Leaders Include in
Talent Management?
Institute for Corporate Productivity (I4CP), 2011
Page 12 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

14. Aligning Learning & Performance Processes
Goals cascaded
Goal
Alignment
Performance goals linked to organizational goals
Competencies used for job profiles
Personalized Performance
Learning Evaluations
Skill gaps identified
Learning priorities based on performance goals &
from identified skill and competency gaps
Learning includes blended solutions
Development
Gap Analysis Personalized learning paths provide tailored
Plans development
Page 13 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

15. Polling Question
■ Are your learning and performance systems integrated?
■ No, they are separate
■ Yes, they are two separate systems but there is some integration
■ Yes, they are the same platform
Page 14 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

16. How to Align Technology to be Successful
Process of
Performance Driven
Learning
How to Align
Technology to be
Successful
Understanding The
Metrics
Implementation &
Easy Steps to Start
Page 15 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

17. Aligning Technology: Learning & Performance
Develop
Create Unified Develop Target
Competencies
Performance & Learning Learning
& Job
Goals Process Activities Audiences
Descriptions
Page 16 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

18. Aligning Technology: Learning & Performance
Talent Portal
Employee Tasks
■ Create & align goals in
performance
Performance / Goals
Goals Assessments ■ Assess gaps in performance
& development
Learning Management
Audiences
■ Create audience rules to
target activities correctly
Activities Resources
■ Tie learning activities to job
competencies & job
Competency Job Descriptions
Library descriptions for better
Job Specific targeted
Competencies
Core Competencies
Job Descriptions ■ Portal tasks portlet will show
Leadership learning activities to complete
Competencies
Page 17 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

19. How Linking Applications Gives Strategic Value
Integrated HRMS provides one
Integrated Workforce Analytics
unified record with all info, for
better reporting Single Record
for all
Learners Automatically push on-
boarding & learning plans to
Use learning new employees
compliance / completed Drive
courses as data points Compensation Speed On-
that can drive Incentives for Boarding
compensation Learning
Link learning plans to
development goals for
employees
Learning
Succession
Based
Management Link Learning
to
Learning Development
Link learning activities
to positions to
succession plans for
high-value employees
Improve Social Improve Tie learning plans to career
/ Informal Talent paths employees wish to
Learning Mobility
pursue
Facilitate dialogue with
Forums for courses; use
Wikis to push out pre-work;
Blogs to share info
Page 18 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

20. Delivering a Single, Intuitive User Experience
Single unified portal where employees can see all performance
and learning information
• Tasks organized by
priority and type for user
• All performance and
development tasks one-
click away
• All LMS tasks and news
available in widgets on
page
Page 19 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

21. Gap Analysis Drives Learning Activities
• Competency gap analysis can
be performed against current
or future positions
• Integrated list of learning and
development suggested
resources
Page 20 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

22. Understanding the Metrics
Process of
Performance Driven
Learning
How to Align
Technology to be
Successful
Understanding the
Metrics
Implementation &
Easy Steps to Start
Page 21 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

23. You Cannot Manage What Do Not Measure
Page 22 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

24. Measuring Results: What are the Metrics /
Analytics?
• Workforce • Effect of • Kirkpatrick Level II -
Training metrics
Basic analytics
Advanced analytics
productivity training on key Scores
org. • Kirkpatrick Level III –
• Business-unit Competency
specific competencies
effectiveness • Effect of
• Return on training on
training performance
investment • Goal
achievement to
test score avg.
Page 23 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

25. POLLING SLIDE
■ What is Your Organization Measuring?
■ Training Metrics Only (e.g. attendance, completion, course surveys)
■ Kirkpatrick Level Two & Three
■ Basic analytics (e.g. effect of training on performance, goal
achievement to test scores)
■ Advanced analytics (e.g. Workforce productivity, return on training
investment)
Page 24 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

26. Intelligence Through Analytics
Now and Past
Competetive Advantages
Standard Drill Down Statistical Predictive
Reports (Through) Analysis Modeling
Ad Hoc Alerts Forecasting Prescriptive
Reports Modeling
Future
Degree of Intelligence
Page 25 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

27. Analytics Tools of the Trade
External applications
• Spreadmarts - heavily siloed Microsoft Excel workbooks
• Business Intelligence vendors
• Hardware / Software / Model
Company business intelligence platform (ERP
Analytics)
• Data warehouse supporting business areas – such as finance
Embedded reporting applications (HCM Analytics)
• Existing reporting platform in your Talent Management or Learning
Management Platform
Page 26 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

28. Challenges with Analytic Tools Landscape
■ Off the Shelf Analytics Technology:
• Need to manage separate role structure and security policies from talent applications
• Requires separate extracts from talent systems and manual mapping/merging of data
typically requiring IT resources
• Inability to link back to talent applications for traceability and action
• Navigate department/division silos in order to obtain HRMS, LMS, and business data
■ ERP Analytics Solution:
• Need to manage separate role structure and security policies from talent and learning
applications
• Appending talent and HR analysis and data warehouse is still a large project because they
don’t have it
• Inability to link back to talent or learning applications for traceability and action
• Relatively expensive component of implementation timeline to achieve integrated vision
Page 27 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

29. Strategic Workforce Analytics
■ Most comprehensive Strategic HCM-Talent
Data warehouse
■ 200+ HCM interlinked business objects
Talent/ Role Alerts across learning, performance, succession,
Custom Based & compensation hiring and career
Portal Dashboards Actions development
■ Rationalized data and security across these
dimensions and processes
Pre Built
Key Performance
Interactive & ■ Pre-built & Ad-hoc key performance
Ad-hoc
Indicators (KPIs) indicators for most industry needs
Reporting
■ Pre-built role based dashboards and 50+
KPIs most critical to companies
Integrated Strategic HCM - Talent Data Warehouse
■ Flexible and quick ad-hoc KPIs and reports
to enable dynamic analysis
■ Strategic workforce analysis integrated
Learning Performance Succession
with external business data
■ Measure the impact of strategic HCM
Career processes based on impact to any business
Hiring Compensation
Development drivers and data like financial, sales,
customer satisfaction
■ Easy to add any external data source and
create integrated reports
■ Actionable Intelligence for execution
excellence
3rd Party systems - SAP, ■ Drill down into the detail transactional
Legacy & Custom External Flat Files
Oracle, PeopleSoft Data Warehouse Business Data (CSV, XLSX) information from any analysis
■ Drive closed loop execution and continuous
improvement with integration transactional
actions from reports
Page 28 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

30. Analytics: What is Being Tracked Today
Talent Metrics Tracked
State of Global People Management
162%
111%
97%
76%
80%
84%
30%
40%
34%
57%
46%
22%
13%
17%
6%
% Growth
 Recruiting tracks the largest number of metrics
 Today’s metrics are largely tactical
 Strong growth in more impactful metrics
Page 29 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

31. Where to Get Success Metrics?
Page 30 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

32. Implementation & Easy Steps to Start
Process of
Performance Driven
Learning
How to Align
Technology to be
Successful
Understanding The
Metrics
Implementation &
Easy Steps to Start
Page 31 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

33. Where Do You Start?
Best Practices in Phased Integration Rollouts
Don’t start with a process that is working!
Define metrics and Do not throw a module
Select a process that is measure starting state out of consideration
not working well and define success because you just finished
criteria that process for this year
• If you just finished
performance appraisals,
start entering goals in the
new system that can be
used as the basis for mid-
year / next year appraisals
Show quick integration wins!
Focus on processes that
Select an order so you can
everyone uses for maximum
quickly show the benefits of
positive visibility rather than
integration after the first few
admin tools, succession
modules
planning, hiring, etc.)
• Learning & Performance
• (Performance/360 ->
Learning)
Page 32 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

34. Where do you start?
Best practices in phased integration rollouts
■ Focus on process before technology
■ Automating a poor process will just result in getting bad results
quicker!
■ Often starting with a process that won’t require a cultural change can
help establish that quick win.
Real World Example; Mid-size manufacturing organization
■ Has been talking about revamping the Performance & Compensation process for years
and planned on redoing the competency model at the same time.
■ Wound up spending over a year in the politics of revamping the way performance is
measured rather than achieving a quick win over their biggest issue – differentiation in
pay between high and low performers
Another Example; Another manufacturing organization
■ Although getting agreement on job-specific competency models was a goal, the team
decided first to focus on compensation
■ This addressed the issues of managers overspending their budget and forced
conversations when managers wanted to pay above or below the guidelines
■ Quick wins were achieved because lengthy, committee-based decisions
were not required just to move from Excel to an on-line spreadsheet
Page 33 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

35. Implementing Performance Driven Learning
Centralized
Data
• HR data
Goals / Revenue
• Key org. • Establish rev.
competencies related goals Performance
• Job profiles • Establish
• Establish key org.
goals to track
Performance LMS / Dev.
• Talent profiles
• Align individual • Align learning
goals to development TM Analytics
• Establish
• Align individual • Create / import
benchmarks
competencies content
• Create
analytics
Page 34 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL
CONFIDENTIAL 34

36. Steps to Getting Started Now
■ Focus: Current year business goals & group to focus on
■ Pick Competencies: What are 2-3 key competencies that can
improve success at goal
■ Performance Process: Get engaged in before / after
performance scores for your target audience
■ Execute: Execute your learning program(s)
■ Measure: Look at before / after measures against performance /
goal attainment to see success
Don’t Boil The Ocean
Page 35 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

37. Performance Based Learning: Calculating Return
on Investment
Calculate Benefit Gained
• Reduced time to complete process
• Improved productivity of a better skilled workforce
• Equals total direct benefit
Calculate Cost of Learning Program
• Direct costs of course creation & delivery
• Indirect costs of course (lost time)
• Equals total costs
Return On Training Investment
• Subtract cost from benefit = Total net benefit
• Use business specific formula(s) for ROI
*Use correlation to show relationship between training and result
Page 36 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

38. SumTotal Strategic HCM Solution
Empowering Customers to Become Stronger Strategic Business Partners
■ Providing Actionable Insight
■ Enabling End-to-End
Integrated Business
Processes
■ Driving Productive, Pervasive
Access
■ Improving Time-to-Value and
Reducing Cost of Ownership
■ Enabling collaborative solution
development community
Page 37 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

39. Long Lasting Customer Relationships
Broader Offerings, Improved Operations, High Customer Retention
SumTotal
Worldwide Leader in
Strategic HCM
Market Share (users)
3,500+
Customers
Over 45+ Million
End-Users
Leader in SMB,
Mid-Market &
Enterprise
Solutions
Global Scalability
Page 38 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL
March 5th, 2012

40. Most Advanced - Recognized as Leader by Analysts
6+ Years in the Leader’s Quadrant (Gartner CLS MQ)
“SumTotal has established itself as the market share and mind share leader …”
2+ Years Rated “Visionary” (Gartner EPM MQ)
“…well suited for global organizations … seeking best-in-class functionality”
Global Market Share Leader for Learning (Bersin 2011 LMS Systems)
“Highly configurable” … “Market leading Learning Management” … ”best-suited to
large, global organizations.”
2+ Years Rated Highest Overall (Ventana Total Compensation)
“The top ranked supplier based on the weighted factoring of five product and two
customer assurance categories …”
4 + Years in the Leaders Section (Forrester Wave LM)
“Forrester Wave for Enterprise Learning Suites”
Leader in Every Section of Forrester Wave (2011 Forrester TM)
“...among the leaders for integrated performance & compensation solutions”
Highest Rated Overall (AMR Strategic HCM)
“...the broadest and most mature application suite in the strategic HCM specialist
space”
Page 39 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

41. Free Learning & Performance Resources
Visit us at www.sumtotalsystems.com
Whitepapers
■5 Ways to Improve Learning with Performance Management
■10 Things HR Can Do to Help Align an Organization’s Goals
■Performance-Driven Learning: Putting the Horse Before the Cart to
Lead Organizational Growth
Customer Success Stories
■Howden (Manufacturing & Automotive)
■NASCO (Healthcare)
■Reliant Medical Group (Healthcare)
■Sodexo (Services)
Page 40 - July 11, 2012 – PROPRIETARY AND CONFIDENTIAL

42. Questions & Answers
Stephan Millard
Director of Product Marketing
SumTotal Systems
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