Jonathan Ferrar Keynote London

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  • As the numbers here dictate we have one on the largest and most disparate work environments in the world, IBM must socially connect for learning and work. With 400,000 plus employees, 72% of which are outside the USA, 64% working in the services business (where your network is crucial, and much of the time you are disconnected from IBM working at client or project sites), 55% of the workforce having less than 5 years service – not that they are all young, they are just new to the organisation, over 40% working either remotely or from an Other Than Traditional Office, What this indicates is that we are already a virtual and social community (making things as we know, difficult to manage, work, be effective). If we are to maximise its effectiveness, the potential is an incredible bench strength with a surplus of innovation opportunity - if we can connect it. We believe that ‘social’ is the glue that connects this together, and is critical if we are to drive the level of ‘connectedness we need to increase our effectiveness across the enterprise. Social can enable us to build skills faster, connect experts, find content faster and stay better connected in the organization!
  • Jonathan Ferrar Keynote London

    1. 1. Analytics Driving ActionJonathan FerrarVP, Smarter WorkforceIBM
    2. 2. Agenda ► IBM – Who we are and what we do ► Workforce Analytics - Background ► Analytics in Action – Prediction and Forecasting ► The Ultimate ‘Big Data’ – Social Analytics ► Getting Started2 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    3. 3. IBM’s Transformation: An Ongoing Journey1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2012Gerstner era Palmisano era Rometty era(‘93 thru 2002) (‘03 thru 2011) (’12 to present) 3 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    4. 4. The IBM - a virtual social community ► 72% of us outside Americas ► 64% workforce in Services business ► 55% workforce has less than 5 years service ► 36% of employees work remotely ► 12% from acquisitions & outsourcing deals ► 1% on global assignments4 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    5. 5. Agenda ► IBM – Who we are and what we do ► Workforce Analytics - Background ► Analytics in Action – Prediction and Forecasting ► The Ultimate ‘Big Data’ – Social Analytics ► Getting Started5 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    6. 6. CEO Study Human capital is the leading cited source of economic value... Human capital 71% Products / services innovation 66% Customer relationships 52% Brand(s) 43% Business model innovation 33% Technology 30% Key sources of sustained economic value1 ...but, CEOs face significant workforce challenges. The average turnover in the Total costs of replacement can reach U.S. is 15% per fiscal year. 2 200% of an employee’s annual salary. 2 Source 1: 2012 IBM CEO study: Q24 “What do you see as the key sources of sustained economic value in your organization?” Source 2: SHRM Human Capital Benchmarking Database, 20116 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    7. 7. Less than one-quarter of CHROs are using analytics to make future workforce decisions. Application of workforce analytics Measuring collaboration and knowledge sharing 14% 5% across the organization Enhancing workforce productivity 39% 14% Evaluating workforce performance 40% 15% Retaining valued talent within the organization 38% 19% Sourcing, recruiting and onboarding individuals 40% 20% from outside the organization Developing workforce skills and capabilities 30% 22% Allocating the workforce across the organization 35% 23% Developing workforce strategy linked to 28% 25% business strategy Developing future leaders 29% 26% Can identify historical Can develop scenarios and trends and patterns predict future outcomes Source: IBM CHRO Study 20107 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    8. 8. Analytics are critical to HR operations and workforce effectiveness. Smarter Workforce Learning & Compensation Development Succession $ Management Management Performance Review Workforce Planning Strategic Performance Scheduling Planning & Staffing HR Value Global HR Operational Talent Acquisition Time & Attendance $ e e nc Ben efits Abs ment age Payroll M an Smarter HR Operations8 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    9. 9. Business Analytics Model Advanced Analytics Business Impact o Segmentation, Predictive modeling and Optimization Analysis o Multi-dimensional analysis to betterValue and Impact understand business challenges Effectiveness Benchmarking oKey Performance Indicators (KPIs) oPerformance Measured against Best Practices Basic Reporting o Standard reporting that is reasonably automated o Slice and dice’ data based on standard variables Efficiency Data Management o Consolidation of data o Data quality and accuracy Time and Resources Based on : Competing on Analytics, Davenport and Harris, 20079 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    10. 10. IBM Workforce Analytics - a clear purpose… Purpose: To embed a culture of analytics within the HR organization Objectives • Integrate BI into HR as an ‘everyday’ tool • Develop deeper analytic and predictive modelling skills • Develop key enterprise-wide reports and scorecards sc t y a n Al a c o S syevr u Sl a n e n r t I sc t y a n Al a n e x E sc t y a n A ev t c der P • Provide better insights from analytics to r t i pe R e d w es r p e n E inform strategy i i i - i r t • Grow analytic skills in emerging countries i l i l i l10 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    11. 11. Methodology : deep statistics Control Test Group Group Time Prior Post Performance Performance Geography Type of Education Other Brand Hire Type Y = a1x1 + a2x2……+ e Horizontal Integration Segment and sub segment of population11 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    12. 12. Agenda ► IBM – Who we are and what we do ► Workforce Analytics - Background ► Analytics in Action – Prediction and Forecasting ► The Ultimate ‘Big Data’ – Social Analytics ► Getting Started12 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    13. 13. Predictive Analytics – Attrition ‘Heat Maps’ Employee segments that leave most frequently Higher Education Service : 1 year Appraisal : 2 Grade : 713 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    14. 14. Predicting Value - Attrition & Compensation Analytics Combined Cumulative Net Benefit is maximized at $9M . . . Benefit ($k) . . . yielding an attrition reduction of 2.7%. 2.7pts Attrition Reduction14 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    15. 15. Building a ‘Risk’ Index Environment Definition Variables Tested External Economic The state of the overall economy; The labor market e.g. Inflation; Unemployment Legal Labor law trends e.g. Employment regulations Political Political trends beyond the law and legal environment e.g. Political instability Social Demographic change e.g. Quality of life Internal Technical Workforce & workplace stability; size of workforce e.g. Voluntary resignations; headcount Legal Voice behaviors e.g. Employee complaints Social Corporate/Organizational culture e.g. Surveys Demographics Demographic trends e.g. Tenure, band, PBC Attitude Employee satisfaction/dissatisfaction e.g. Surveys Cognition Rational choice; Individuals fully process all relevant information to e.g. Cultural values (e.g. Hofstede, World Value maximize their personal welfare Survey) Affect Moods and emotions e.g. Cultural diff. in emotional expression15 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    16. 16. Employee / Labour Relations ‘hotspots’ Provides a view across the world at a quick glance16 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    17. 17. Bubble Chart Provides a view of internal / external volatility relative to employee size across time periods17 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    18. 18. Heat Map - At Multiple Levels of Analysis Provides a view of focus areas based on rankings across Countries/ Business Units/ Cities Sorted in numerous ways Total/Internal/External Internal Volatility Components 1-7 External Volatility Components 1-5Country LevelBU LevelCity Level18 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    19. 19. Agenda ► IBM – Who we are and what we do ► Workforce Analytics - Background ► Analytics in Action – Prediction and Forecasting ► The Ultimate ‘Big Data’ – Social Analytics ► Getting Started19 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    20. 20. Analyzing Big Data created by social interactions Dynamic Recommendations Social Network Building Community Metrics Sentiment Analysis Social Influence Analysis20 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    21. 21. IBM Social Pulse21 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    22. 22. Agenda ► IBM – Who we are and what we do ► Workforce Analytics - Background ► Analytics in Action – Prediction and Forecasting ► The Ultimate ‘Big Data’ – Social Analytics ► Getting Started22 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    23. 23. IBM Institute for Business Value + • Surveyed 3,000 executives, managers and analysts plus extensive interviews • Respondents represent more than 30 industries in 108 countries • Interviews with IBM and MIT thought leaders • Analysis by IBM and MIT SMR team BAO Analytics: The New Path to Value Landing Page: External Links to the full study and a 22 minute video and presentation highlighting the key findings [http://www-935.ibm.com/services/us/gbs/thoughtleadership/ibv-embedding-analytics.html]23 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    24. 24. Organizational obstacles, not data or financial concerns, are holding back adoption Primary obstacles to widespread analytics adoption Lack of understanding how to use analytics to improve the business 38% Lack of management bandwidth due to competing priorities 34% Lack of skills internally in the line of business 28% Ability to get the data 24% Culture does not encourage sharing information 23% Ownership of the data is unclear or 23% governance is ineffective Lack of executive sponsorship 22% Organizational Concerns with the data 21% Data Perceived costs outweigh the projected benefits 21% Financial No case for change 15%24 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    25. 25. Lessons learned 1 Cultural shift from data extraction to business analytics 2 Stakeholders need to set clear priorities for data and analytics 3 Need a broad range of skills 4 Simplicity and elegance outweighs “bells and whistles” 5 Take some risks with new tools – open people’s minds to the opportunity 6 If you do what you’ve always done, you’ll get what you’ve always got25 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    26. 26. Getting Started - Recommendations Recommendation 5: Recommendation 1: Use an information Focus on the agenda to plan for biggest and highest the future value opportunities Recommendation 4: Recommendation 2: Keep existing Within each capabilities while opportunity, start with adding new ones questions, not data Recommendation 3: Embed insights to drive actions and deliver value26 19 March 2013 IBM Smarter Workforce : © 2013 IBM Corporation
    27. 27. Thank you!

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