Hr Analytics

HR AnalyticsHow to pacify Catbert: The Evil Director of Human ResourcesAtif Abdul-Rahman

The Evil Director of Human Resources CATBERT

The Evil Director of Human Resources The most feared don of the business underworld! CATBERT

The Evil Director of Human Resources atleast *in every company that matters CATBERT

The Evil Director of Human Resources2Schools of Thought CATBERT

The Evil Director of Human Resources2Schools of Thought“Human Resources has long been looked atas a touchy-feely business. The stereotypeof its practitioners is that they give warmand fuzzy answers to most businessqueries.” – Jac Fitz-Enz, The ROI of Human Capital. CATBERT

The Evil Director of Human ResourcesPerception… CATBERT

The Evil Director of Human ResourcesPerception… …Or Reality? CATBERT

The Evil Director of Human Resources[Contrary to Popular Belief (and Satire)] CATBERT

The Evil Director of Human Resources[Contrary to Popular Belief (and Satire)] Life isnt that easy  CATBERT

The Evil Director of Human Resources[Contrary to Popular Belief (and Satire)] Life isnt that easy  …or random! CATBERT

The Evil Director of Human ResourcesLarge Organizations:Too many people (and data) to make objective decisions. CATBERT

The Evil Director of Human ResourcesStartups and SMEs:Too much flexibility and personalization in place, difficult tomake universal policies. CATBERT Princess Complex!

The Evil Director of Human ResourcesAdd to that…CATBERT

The Evil Director of Human ResourcesAdd to that…RECESSION!CATBERT

The Evil Director of Human ResourcesCATBERT

The Evil Director of Human ResourcesEmployee RedundancyTurnover ‘Right Sizing’ Morale Organizational Memory CATBERT

The Evil Director of Human ResourcesAs the economy shows signs ofrecovery, employees may begin to considergreener pastures.”What happens if there’s a mass exodus of keytalent just as an organization is moving towardrecovery? -Aon Hewitt Talent Management Report, 2011 CATBERT

The Evil Director of Human ResourcesAlsoCATBERT Nationalization Drives

The Evil Director of Human ResourcesAnd Brain Drain and Employee Turnover…CATBERT

The Evil Director of Human Resources With limited resources and harsh external influences, HR takes actions based on gut feelings, ‘soft skills’ and freshly baked policies. Thus, perceived as Random Policy Generators and/or EVIL!CATBERT

Dogbert - THE ConsultantWarning: THE SALES PITCH!

Dogbert – THE ConsultantWanna get rid of Catberts?

Dogbert – THE ConsultantWanna get rid of Catberts?Make HR…

Dogbert – THE ConsultantWanna get rid of Catberts?Make HR… Analytics Driven

Analytics ˌa-nə-ˌli tiks -By analytics we mean theextensive use ofdata, statistical andquantitativeanalysis, explanatory andpredictive models, and fact-based management to drivedecisions and actions.

A REVOLUTION DOESNOT HAPPEN WHENSOCIETY ADOPTS NEWTOOLS,IT HAPPENS WHENSOCIETY ADOPTS NEWBEHAVIORS Clay Shirky, US Now

Don’t replace your tools, add new ones for specific problems, Analytics is one of the many tools.

♪ Competing onAnalytics is a Cultural Transformation! ♫

No organization we’ve worked with has embraced an analytics-only method of managing, motivating, and retaining employees.But early adopters have created tangible value for themselves.Tom Davenport, Competing on Talent Analytics

For Example…

Employee Churn Prediction Sprint has identified the factors that best foretell which employees will leave after a relatively short time. (Hint: Don’t expect a long tenure from someone who hasn’t signed up for the retirement program.)

Contracts Development Professional sports teams, with their outsize expenditures on talent, have been leading users of analytics. To protect its investments, the soccer team AC Milan created its own biomedical research unit. Drawing on some 60,000 data points for each player, the unit helps the team gauge players’ health and fitness and make contract decisions.

Check This out Too!

Employee EngagementAlmost every company we’vestudied says it valuesemployee engagement, butsome can precisely identifythe value of a 0.1% increasein engagement amongemployees at a particularstore. At Best Buy, forexample, that value is morethan $100,000 in the store’sannual operating income.

Academic RecordsMany companies favor job candidates with stellaracademic records from prestigious schools—butAT&T and Google have established throughquantitative analysis that a demonstrated ability totake initiative is a far better predictor of highperformance on the job.

Ketchum analyzed personal networksto learn how easily information flowedacross teams.

Ketchum analyzed personal networksto learn how easily information flowedacross teams.Bloggers were more engaged andsatisfied than others and performedabout 10% better, onaverage, Cognizant India

Bottom LineThere is nothing more powerfulfor a business than ‘managingtomorrow, today’ by properlyapplying analytics to its humancapital

Is it Really an Engineering Problem?The Engineer!

No, Not Really

No, Not ReallyIts Cultural……….

No, Not ReallyIts Cultural……….People usually measure what is easy for them tomeasure, not what should be measured…

No, Not ReallyIts Cultural……….People usually measure what is easy for them tomeasure, not what should be measured…Create a Culture of Performance Measurement!

No, Not ReallyIts Cultural……….People usually measure what is easy for them tomeasure, not what should be measured…Create a Culture of Performance Measurement!Then Improve your FrameworkMaturity, Continuously!

“HR Analytics becomes a MUST” Forrester Research, 2009

“Forward-looking analytics that push well beyondtraditional metrics are the cornerstone of thiseffort. But siloed systems, inconsistent data, and alack of benchmarks and tools have made thisincreasingly difficult to achieve. To address thisproblem and become more strategic, HRprofessionals must get their arms around thedata, identify key performance indicators(KPIs), settle on a technology approach, and infusethe data into their organization.” - Forrester 2009

Example Framework Six Uses of Talent Analytics By Thomas Davenport • Simple • Value Driven • Iterative

• Human Capital FactsAnalytics Maturity (& Complexity) 1 • Analytical HR 2 • Human Capital Investment Analysis 3 • Workforce Forecast 4 • Talent Vale Model 5 • Talent Supply Chain 6

• Human Capital Facts1

• Human Capital Facts 1Single Version of the TruthStraightforward Facts• Head Counts• Contingent Labor Use• Turnover Rate• Termination Rate• Average Cost Per Recruitment• Engagement Rate etc

• Human Capital Facts 1Single Version of the TruthStraightforward Facts• Head Counts• Contingent Labor Use Pushing Factors:• Turnover Rate • Creates Transparency• Termination Rate • Determines Overall Measurement• Average Cost Per Recruitment Criteria• Engagement Rate etc • Employees and Corporate start aligning their behaviors Pulling Factors: • Employees and Corporate start ‘Gaming’, i.e. show better scorecards than behaviors • Actions are not Deterministic. • Requires Context to Devise Strategies.

• Analytical HR2

• Analytical HR 2Pinpoint Opportunities & BottlenecksCreate Insights• Determine whether Staff Turnover intervention needs to be carried out only in East Region or the entire Organization.• Determine which job description need revamping of their contracts to improve employee performance• Determine the most common reason for delays in the recruiting process. etc

• Analytical HR 2Pinpoint Opportunities & BottlenecksCreate Insights Pushing Factors:• Determine whether Staff Turnover • Develop Insights intervention needs to be carried • Drill Down and Roll Up out only in East Region or the • Relate Individual data with Corporate entire Organization. Processes and KPIs.• Determine which job description • Cascade Performance need revamping of their contracts • Put some context into Measurements. to improve employee performance• Determine the most common Pulling Factors: reason for delays in the recruiting process. etc • Usually Rear-view Mirror metrics • Insights are still not Actionable. • Gives too many alternatives to work on, we need to focus on a defined strategy

• Human Capital Investment Analysis3

• Human Capital Investment Analysis 3Devise Actionable StrategyDetermine Activities of Highest Impact• Find correlation between different factors, e.g. one company identified employee satisfaction highly correlated with unit revenue, etc.• Determine root-cause analysis to understand dependent and independent factors.• Single out a selected few action points to execute, the strategy being that other factors will eventually be improved as well.

• Human Capital Investment Analysis 3Devise Actionable StrategyDetermine Activities of Highest Impact• Find correlation between different Pushing Factors: factors, e.g. one company • Focus on a scoped action plan identified employee satisfaction highly correlated with unit Pulling Factors: revenue, etc. • Cannot determine risk on each action• Determine root-cause analysis to point understand dependent and • It’s a gamble independent factors. • Need some predictive insights.• Single out a selected few action points to execute, the strategy being that other factors will eventually be improved as well.

• Workforce Forecast4

• Workforce Forecast 4Predict & Plan OutcomesForecast and Predict Possibilities• From a Risk Management perspectives, organizations need to know how their future projections of activities will be supported by their staff availability and skill sets.• Employee Churn Prediction (to activate Retention Activities & initiate preemptive recruiting to fill future gaps)• Scenario modeling to estimate possible outcomes and conduct planning.

• Workforce Forecast 4Predict & Plan OutcomesForecast and Predict Possibilities Pushing Factors:• From a Risk Management • Predictive Insights perspectives, organizations need to • Preemptive Planning know how their future projections • Forecast Turnover, Conduct What-if of activities will be supported by Scenarios for Succession Planning their staff availability and skill sets. • Predict Potential Shortages or Excesses of Key Capabilities• Employee Churn Prediction (to activate Retention Activities initiate Pulling Factors: preemptive recruiting to fill future • Get an understanding on what might gaps) happen, not the root cause of such• Scenario modeling to estimate incidents. possible outcomes and conduct • The question is Why will this planning. happen, to have predictions actionable.

• Talent Vale Model5

• Talent Vale Model 5Identify CausationDevelop Models for ReasoningCalculate factors that imply the rootcause of employees staying at theirjobs, at performing well, at notperforming well indicatingmisplacement or other reasons, etc.By continuous trial and error, evolvemodels of employee behavior toconduct individualized performanceboosting activities.Preemptive churn prevention bycreating environments of employeewell being.

• Talent Vale Model 5Identify CausationDevelop Models for Reasoning Pushing Factors:Calculate factors that imply the root • Establish Causation.cause of employees staying at their • Determine action plans forjobs, at performing well, at not preemptive planning.performing well indicating • Devise Personalized Incentives Model • Determine Promotion Factorsmisplacement or other reasons, etc. • To Identify Root Cause of Low Performing Employees and DeviseBy continuous trial and error, evolve Plan to Improve their performance.models of employee behavior toconduct individualized performance Pulling Factors:boosting activities. • Outcomes are not yet real time, some actions are too late toPreemptive churn prevention by have the desired impact.creating environments of employeewell being.

• Talent Supply Chain6

• Talent Supply Chain 6Becoming a Real Time Decision EngineTight Alignment with the Organization• Just in Time Manufacturing, Delivery, Servicing requires at times a secondary workforce to be used on order spikes. This contingent workforce needs to be processed and engaged in real time considering corporate risks to be covered, this is done in real time to be practical.• Resource planning is carried out in real time allowing for all work orders to be filled by employees.

• Talent Supply Chain 6Becoming a Real Time Decision EngineTight Alignment with the Organization Pushing Factors: • HR becomes Strategic • Timely Decisions• Just in Time • Finely Grained Contracts and Manufacturing, Delivery, Servicing Controls requires at times a secondary • Daily Contingent Workforce leading workforce to be used on order to optimal costing. spikes. This contingent workforce • Resilience to uncertain environments and sudden external events. needs to be processed and engaged in real time considering Pulling Factors: corporate risks to be covered, this • Hard to Achieve state is done in real time to be practical. • Need to pass through the maturity model to achieve this level.• Resource planning is carried out in real time allowing for all work orders to be filled by employees.

Start Somewhere, Anywhere…. Measure, Fix, Iterate…. Be Agile!

Core HR systems strategies will focus on masterdata, and that analytics will help HR become more strategic. Human Resource Management Report, Forrester Trends 2009

Thank You ! Atif Abdul-Rahman www.knowledgeworks.wordpress.com http://linkedin.com/in/atifabdulrahman atifshaikh

References• Competing on Talent Analytics – Tom Davenport et al• http://hbr.org/2010/10/competing-on-talent-analytics/ar/1• Employee Values = Shareholders Value – Lars Bjork• http://blogs.hbr.org/cs/2011/10/employee_values_stakeholder_va.html• Talent Analytics , Another BI research opportunity• http://www.b-eye-network.com/view/15658• HR Analytics becomes a MUST http://www.forrester.com/rb/teleconference/hr_analytics_become_must/q/id/5327/t/1• Trends 2009: Human Resource Management Report, Forrester• The New HR Analytics: Predicting the Economic Value of Your Companys Human Capital Investments by Jac Fitz-enz (Hardcover - May 26, 2010)• The ROI of Human Capital: Measuring the Economic Value of Employee Performance by Jac Fitz-enz (Hardcover - Feb 23, 2009)• Competing on Analytics: The New Science of Winning by Thomas H. Davenport and Jeanne G. Harris (Hardcover - Mar 6, 2007)• The Five Dysfunctions of a Team: A Leadership Fable (J-B Lencioni Series) by Patrick Lencioni (Hardcover - Apr 11, 2002)• How to Measure Anything: Finding the Value of Intangibles in Business by Douglas W. Hubbard (Hardcover - Apr 19, 2010)• Pukh Theory – Farhad Karamally

Credits• http://ronntorossian.com/wp-content/uploads/2010/12/blog.jpg• http://images.ctv.ca/archives/CTVNews/img2/20110611/600_air_canada_110611. jpg• http://iliyanamohamed.files.wordpress.com/2009/03/2434191640_2ed3b312be.j pg• http://trak.in/tags/business/2011/10/18/reverse-brain-drain-senior-executives- relocate-india/• http://www.i-cio.com/__data/assets/image/0003/8193/varieties/bart.jpg Clary Shirky• http://wirelesslanprofessionals.com/wp-content/uploads/2010/09/If-all-you-had- was-a-hammer.jpg - Hammer and Nail• http://industryleaderstoday.net/wp-content/uploads/2010/09/Business_Leaders_- _leading_change-300x273.gif leaders image• http://cdn.physorg.com/newman/gfx/news/hires/astudyshowsn.jpg Neanderthal• http://www.natureandkind.com/downloads/active/borneo-jungle.jpeg - Jungle Background• http://blogs.secstate.wa.gov/FromOurCorner/wp- content/uploads/2009/03/shutterstock_10070653.jpg• www.hotgiftideastips.com - graduation cap

Disclaimer• All images are copyrights of their respective owners.• All images from Dilbert are copyrights of Dilbert and free content is used here for non-commercial use.• All quotations and books mentioned are referenced in slide 78.

Hr Analytics

by Atif Abdul-Rahman on Dec 18, 2011

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