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  1. Staples Measuring the Value of Learning

  2. More Pressure to Demonstrate Value

  3. Adding New Measurement Capabilities

  4. Learning Diagnostics

  5. New Class of Learning Metrics

  6. Corporate University Xchange: Best Practice Presentation Measuring the Value of Learning Kelly Archy Nancy Persson Ray Stevens

  7. Plan for the hour • What are your measurement challenges? • Measurement at Staples • 3 Examples: • US Retail • North American Delivery • Corporate • Your take-aways or best practices • Q & A

  8. Poll: What is your primary Measurement Challenge? • Isolating training as a factor • Calculating ROI in hard savings/contribution • Time/resources to evaluate • Accurately capturing all training costs • Business moves/changes so quickly

  9. Who are we? Staples • Brand Promise: We make buying office products easy • International operations in 23 countries: • (US, Canada, UK, Germany, Netherlands, Portugal, France, Italy, Belgium, Spain, Sweden, Austria, Denmark, Switzerland, Poland, Hungary, Czech Republic, Luxembourg, China, Argentina, Brazil, India, Taiwan) • Annual sales: $19+ billion • Shopping channels: • Associates: 76,000 worldwide • Stores, distribution and fulfillment centers, call centers, regional sales offices, home office

  10. Who are we? Staples University • Learning brand and structure serving associates in US Stores, North American Delivery, and Corporate functions • SU Mission: Learn, Innovate, Succeed, Repeat • Leadership curriculum serves leaders enterprise-wide • Total Staples U curriculum comprises more than 250 programs providing job skills, management development, service and selling skills, technical training, and leadership development • In 2008, Staples U celebrates our 10th anniversary! Staples U Structure • Corporate Team: • Leadership & Org Development • Staples U Corporate • Design and delivery accountability • 17 total associates, • Including mgt. • US Retail Team: • Program Design • Delivery accountability • 9 total associates, • Including mgt. • NAD Team: • Delivery of sales & corporate curriculum • Customer Service • Logistics • Telesales • 47 total associates, • Including mgt.

  11. Measuring Learning at Staples • We measure when it’s aligned with a business goal, and will make a difference in driving performance. • Measurements tie directly to company objectives and help us drive and shape our learning and development initiatives. • Performance improvement efforts focus on critical business priorities: • Drive profitable growth • Deliver industry leading service • Differentiate our brand • Demonstrate market leadership • Demonstrate our strong corporate values As a result, our measurement focuses heavily on: • Impacting sales and/or expenses • Impacting the customer’s experience • Impacting associate development and retention

  12. Retail: US Stores Training Curriculum • On-boarding • Sales & Service Training • Product Knowledge Training • Machines, Systems and Technical Training • Management Development

  13. Top Line Sales Knowledgeable Associates (CSAT) Overall Customer Satisfaction Operating Profit Retail Example: Product Knowledge Product & Services Training Completion ☼Change of Focus from Transactional to Transformational ☼

  14. Product & Services Training Completion • Product & Services Knowledge – Training Completion • Visibility to stores with current completions • Visibility to overall training metrics on a balanced scorecard • Associate comfort level – E-learning product knowledge Survey • 97% agreed that the training helps them do their jobs better • 96% agreed that they are more likely to sell or recommend the products featured in the training • 96% believe that the training has increased their sales performance

  15. Poll: Customer Satisfaction: What is the top attribute our customers are looking for? • Competitive prices • Courteous and respectful associates • Quality of office supplies • Hassle-free returns • Knowledgeable associates

  16. Customer Satisfaction – Courteous & Respectful and Knowledgeable Associates Total Performance Gap AllProviders Top Attribute Rankings Courteous and respectful associates Knowledgeable associates Easy to use website Hassle-free returns Products out on display In stock toner or printer cartridges Wide assortment of office supplies Quality of office supplies In stock advertised items Associates know where products are 62% (30%) 51% (39%) 46% (39%) 60% (24%) N/A --- 57% (27%) 72% (11%) 68% (14%) 66% (15%) 53% (27%)

  17. Product Knowledge – Top Line Sales & Operating Profit • Top Line Sales • ROI Study • 30% increase in sales for a featured product over a 5 week period. • 20% maintained lift over 9 weeks. • Control Group Test • Isolated the test to show only the product knowledge training impact • Results showed an 8.4% per store, per week increase in sales with product knowledge training • Operating Profit – Associate Satisfaction improves turnover • Highly Satisfied Associates have lower levels of turnover which improves service delivery to Customers. • Increases Employee skill levels (i.e., “Learning by Doing” effect) • Highly Satisfied Associates are more motivated to provide excellent service

  18. Training Measurement Product Knowledge + Customer Satisfaction = Increased Sales & Profits

  19. North American Delivery Staples Business Delivery (Catalog & 1- 19 employees and home office Contract & Quill, & Medical Arts Press SNA: Fortune 500 SBA: 20 employees or more 10 - 100 employees Medical practitioners

  20. SBA Training • New Hire Orientation • “Staples Way” Selling Skills • Management Training (for high-potentials) • District Sales Manager Training (Phases I & II) • Leadership Challenge • Training conducted by Management Trainers and Regional Coaches

  21. Staples Way • Prospecting and creating a “pipeline” • Approaching customers • Mailers • Calls • At the customer meeting: • Setting expectations • Determining customer needs • Closing & support

  22. Training Measurement • Leadership intuitively supports training efforts • Annual Sales Meetings • Regional Meetings • Leadership Meetings • Integrated training part of all new launches • Software • Technology, Furniture, Copy/Print Selling

  23. Training Measurement Differentiated Selling Model + Perfect Order Execution = Strong Acquisition & Retention

  24. Training Measurement

  25. Staples Business DeliveryTelesales

  26. North American Delivery Industry Position Staples $6.6B C $4.8B A $4.1B $4.5B B

  27. Corporate Training Curriculum • Management Development • Leadership Development • Professional Development • Functional/Technical skills • Process Excellence program support • Customized design and delivery

  28. Identify Business Unit Objectives Identify Project Opportunities Screen Initial List Of Opportunities Scope and Define Projects Prioritize List of Defined Projects Savings exceeding $42,000,000 130 + Projects! Corporate Example: Process Excellence • Staples’ Lean/Six Sigma initiative; goal is to develop and deploy a large rotating pool of Black Belts. • Aligns with corporate goals of best execution and increasing effectiveness/reducing costs • Training includes Black Belts, Green Belts and Red Belts: the Staples Brand of the junior level of practitioner. • All Belts are trained in value-based processes.

  29. Training Measurement Best Practices + Consistent Execution = Bottom Line Savings

  30. Our Favorite Metric Dear Staples, I write to offer my “Thanks” to you and your employee, Erin Day, for the extraordinary effort you both made to help me in a time of very real frustration. In early October I purchased an HP Office Jet 6310 All-in-One device in your store and it “crashed” after only four weeks’ use. To HP’s credit, they immediately offered to replace the machine free of charge, but couldn’t guarantee delivery any faster than 10 days, which would leave me without a printer, copier, fax, or scanning capability for an unacceptable period of time. I found myself tempted to buy another machine, then hope I could somehow sell it or the replacement, but realized that might have less-then-desirable implications for warranties, etc. Finding myself in Kokomo, I stopped in your store to inquire about Staples perhaps being able to influence HP to “hurry up” its processes and ship sooner. I was standing next to the display model 6310 when Erin Day met me, listened to my problem, asked me to wait for a moment while she talked to her manager, then returned and told me I should take the display model, with the promise that I would return it when my replacement from HP arrived. I was almost speechless. It was so easy. She took my name and telephone number, wrote a note for the file, unplugged the machine, put it in my arms, and wished me a nice day. And when I returned your machine a couple days ago, she recognized me, took the machine off my hands and, again, wished me a nice day. In today’s mass merchandising environment where practically everything is a throw-away and local store employees are often powerless, we simply do not experience that kind of service-oriented customer satisfaction effort-ever. Please know that I truly do appreciate Erin’s effort and your confidence in your customer. Very truly yours….. David L. Voris, DLVoris Executive Services

  31. Questions?