Who Am I? Jason Averbook Chief Business Innova6on Oﬃcer @jasonaverbook hFp://blog.knowledgeinfusion.com
Tradi?onal Approach: Strategy and Technology have been Siloed Strategy Technology Operational StrategyFunc?onal Processes Selec?on Deployment People Op?miza?on “Focus on the strategy ﬁrst, the technology is “As long as the system can automate our just an enabler.” processes, what’s the diﬀerence?” “This will make us more eﬃcient.” “We will roll this out to the enterprise.” “We can train our people to use the system.” “We get a maintenance contract, right?” High cost & risk THE RESULTS Low adop?on & sa?sfac?on Poor measurable business results
KI + Appirio: A New Type of Partner + Transforma?onal Innova?ve Cloud HCM Strategies Solu?ons The Best HCM Strategists The Best Cloud Innovators • 350 global customers • 350 enterprise customers, 2M users moved to the cloud • Consultants with an average of 15 years HR and talent management experience • 500 cloud experts, 50,000 strong crowdsourcing community • Ground breaking thought leaders focused solely on HCM • World Economic Forum 2013 Technology Pioneer Alignment of organiza?on, people, and technology to deliver unprecedented execu?on and agility.
KI + Appirio: Strategy and Technology Alignment Results in BETTER OUTCOMES Opera?onalize Strategy Deﬁne Strategy HR strategy informed by Rapid 6me-‐to-‐value through business and technology agile process change trends Adapt Strategy Over Time Strategy to execu6on at the speed of business
What is driving this need to transform the way people work? 1. 2. 3. ShiY to the Cloud Rethinking Talent Management Workforce 2020 Consumer Grade Importance of Mobile Expecta?ons Individual & Team Social
Talent Management Re6rement rate increasing Gradua6on rate decreasing Pla^orm Shi[ Talent from ERP to Management Con6nued shi[ from manufacturing economy to Cloud knowledge economy Talent now considered organiza6ons’ compe66ve edge Workforce 2020 All organiza?ons will go through a major skills shortage in high value posi?ons in the next 5-‐7 years
What’s Stopping Organiza?ons from Managing Talent Eﬀec?vely? Good News: There’s Buy-‐In… • Only 1 in 8 cited ‘our leaders don’t buy into talent management’ as a show-‐stopper or signiﬁcant challenge. • Only 1 in 4 cited ‘not having the money to invest’ as a show stopper or signiﬁcant challenge. Bad News: Some Aren’t Quick Fixes… • More than 4 in 5 indicated ‘managers do not know how to manage people’ as being at least a somewhat signiﬁcant challenge. • Nearly 4 in 5 pointed to ‘ineﬃcient or an6quated processes’ being at least a somewhat signiﬁcant challenge.
Talent Proﬁles – Talent Proﬁles have become more common in commercial areas – business, sports, news proﬁles – Provides an easy visual and framework for discussing and comparing talent – LinkedIn and other social networking tools have employees more accustomed to building out their own pages and informa6on
Workforce 2020 More social More collabora6ve Pla^orm Shi[ from ERP to Talent Management Cloud More connected / devices More 24/7 Workforce 2020 Major shi[ from full-‐6me to heavy con6ngent workforce The Workforce of 2020 will be driven by heavy collabora?on, matrix structures and virtual work
Pla^orm Shi[ from ERP to Cloud - Most HR So[ware wriFen before Internet was born Pla^orm Shi[ from ERP to Cloud Talent Management - Designed for HR department – not workforce - Most systems implemented as Workforce 2020 payroll solu6on, not human capital management solu6on - organiza?ons will need tith pgrade/ add All Tremendous cost w o u liFle value re-‐implement/replace in the next 1-‐4 years
What Usually Happens Great Demo Implementa6on Go-‐Live Huge Expecta6ons Expecta6ons Lower What Happened? Now What?
Why? Great Demo Implementa6on Go-‐Live Huge Expecta6ons Expecta6ons Lower What Happened? 1. Lack of planning (people, process, technology) 2. PuKng too much weight on the soLware and vendor 3. Focusing on the conﬁguraOon ﬁrst 4. Making Phase 1 tacOcal and not value add 5. Not considering workforce experience 29
Workshop Objec?ves – Provide an overview and deﬁni6on of Talent Intelligence – People, Process & Technology. – Review diﬀerent stages of Talent Intelligence Maturity and discuss where Company X currently stands. – Establish a strategic approach to iden6fying and delivering metrics & analy6cs to the business. – Review systems & data roadmap example of workforce analy6cs. – Review sample project plan & roadmap for implementa6on of workforce analy6cs.
What is Talent Intelligence? Managing workforce and other business informaOon to drive smart talent decisions in support of short-‐ and long-‐term organizaOonal goals. 40% People - Organization - Competencies 40% Technology 20% Process - Systems & Tools - Client Service -Interfaces - Data Mgmt Source: Talent Intelligence – BeZer Management through Measurement, Knowledge Infusion, 2009
Founda?on: Workforce Technology Footprint HR Portal Security, Data, Integration, Workflow Single User Experience Designed for Role & Relevance Knowledge & Collaboration Analytics & Transactions Knowledgebase, Communications, Case Management, ESS, MSS, Data & Infrastructure Collaboration Dashboards Workforce Intelligence Reporting, Metrics, Analytics, KPIs Workforce, Operational, Talent Mgmt, Biz Intelligence Talent Management Workforce Planning, Competency Mgmt, Talent Acquisition, Learning Mgmt, Performance Mgmt, Compensation, Succession & Career Planning Workforce Management Core HR Foundation Time & Attendance, Absence & Leave People Structure, Job Structure, Mgmt, Benefits, Payroll Organization Structure HR Service Delivery Strategic HR Core Founda?on Infrastructure
Workforce Intelligence is About Answering Ques?ons Ques?ons Asked by the Business* Ques?ons Asked by HR* – Are our managers capable of managing talent? – Are we aFrac6ng the right talent to the organiza6on? – Who’s on the bench? Who is our top talent? – Do we have the right people in the right roles? Do we – Are we developing future leaders? have enough of them? – Do we have the talent in place to execute on our business plans? – What is the growth and movement of our talent? – Do employees feel supported by the culture? How can we – Are higher paid employees beFer performers ? do a beFer job of suppor6ng them? – Why do good employees leave? Who’s poaching from us? – Is HR suppor6ng the talent management needs of our employees and managers? What can we do to beFer support them? – What is the ROI on our training investments? * Ques&ons asked by these 2 cons&tuencies are not mutually exclusive.
What Types of Talent Intelligence Exist? § Metrics § Reports § Analy6cs § Scorecards § Predic6ve Modeling § Dashboards
What is a Measure? A Metric? Analy?c? KPI? Measure: Single data point indica6ng the 6ming or order of magnitude of a transac6on or process. – Example: Date of hire Metric: Meaningful informa6on, derived from data, that answers a basic ques6on about a process(s) or event(s); some metrics may be key performance indicators (KPIs). – Example: Number of new hires in 2012 Analy?c: Ac6onable informa6on that enables business leaders to arrive at a realis6c and/ or op6mal decision based on rela6onships among metrics and/or measures. – Example: Total cost of regreZable turnover among the class of 2012
Report? Scorecard? Dashboard? Report: speciﬁc set of sta6c data; statement describing what has happened or the state of the organiza6on at a point in 6me • Data may not be immediately ac6onable; o[en informa6ve • Limited to 1-‐3 measures / metrics, o[en segmented – Example: Q3 Sales Turnover Report tells you only what turnover is for that Ome period, not whether the numbers are good, bad, require acOon, etc. Scorecard: management tool to measure performance • Typically uses metrics from diﬀerent func6ons to evaluate organiza6on or work processes • Requires an objec6ve standard against which scores can be measured • Limited to 3 – 7 measures / metrics – Example: If the scorecard goal is 10 and you have "scored" 15, you know you are "winning" -‐ at least in regard to that metric. Dashboard: source of business intelligence • Enables the organiza6on to monitor trends and risks • May include "thresholds" for acceptable results • Should be limited to 8-‐12 measurements. – Example: Dashboards have measures that, taken in context, tell a story but on their own are not immediately acOonable.
Other Key Terms Workforce Analy6cs – What happened? – What is happening? – What are the best ways to improve performance? Workforce Planning – What is our an6cipated demand for labor in diﬀerent markets? – Number of resources? Skills and abili6es needed? – What is our strategy to ﬁll the gap? – What will likely happen if we invest in “x”?
3 Workstreams to Drive Bejer Decisions What do We Need to …Understand andStrategic Know? About Whom? Make Decisions. Why? When? Design the Package &Opera6onal Deliverable… Communicate… Manage the Data andTechnical Perform the Analytics…
Types of Metrics & Analy?cs Workforce & Talent Management HR Opera6ons Organiza6onal Eﬀec6veness Performance • Time to Fill/Hire • AFrac6on • Sales revenue • HR Staﬀ per FTE • Reten6on • Customer Sa6sfac6on • Training Hours per FTE • Bench strength • Customer Service • % Of on Time Reviews • Mobility Scores • HR Cost to Revenue % • Diversity Analytics Transactional Data
What are Your Peers Measuring? Please indicate whether your organiza?on measures or plans to automate the measurement of the following HR metrics. 100% 83.1% 80% 71.2% 66.2% 61.6% 60% 53.4% 52.5% 46.1% 40% 32.9% 32.0% 16.0% 20% 0% Employee Total compensa6on Recrui6ng eﬃciency Workforce diversity Workforce Workforce skills & Employee Bench strength Workforce Workforce mobility reten6on/ turnover (e.g., 6me-‐to-‐hire, demographics/ competencies engagement produc6vity cost per hire) aging Source: 2010 Knowledge Infusion & IHRIM HR Technology Survey N = 259 Knowledge Infusion Proprietary and Conﬁden6al, Copyright 2012
Workforce Analy6cs TALENT INTELLIGENCE MATURITY MODEL
Maturity Assessment Strategy will aim to advance forward on the maturity con?nuum. Transforming Leading • Process is fully uniﬁed and Performing presented as a holis6c • Process enabled by • Processes uniﬁed from capability Lagging technology end-‐to-‐end but presented • Manual or paper based • Seamless user experience • Disaggregate user as independent business process • Fully integrated with other experience • Consistent user experience • Disaggregate user technology experience • Limited integra6on with • Integra6on with other • Ability to report data other process/technology process/technology • Limited integra6on with holis6cally and delivery via other process/technology • Some ability for holis6c • Ability for holis6c repor6ng drillable dashboards repor6ng • Limited ability to report data Drivers| Governance| Service Eﬃciency & Process & Data Technology Metrics Capabili?es Delivery Quality
Talent Intelligence Maturity Lagging Transforming • Compliance repor6ng • Talent mgmt eﬀec6veness • HR opera6onal repor6ng Drivers| Metrics • Business impact of talent • No center of excellence Governance| • Shared resources / COE • Analysts run reports Capabili?es • HRGs partner with analysts • Reac6ve; ad hoc • Formalized service • Sr. HR preFy much only ‘client’ facing Service Delivery • Embedded in consul6ng • Few standard deﬁni6ons • Minimal standard processes Process & Data • Standard deﬁni6ons • Shared, repeatable processes • Limited automa6on Eﬃciency & • Automated • Limited quality tool sets Quality • Extensive quality tool sets • Silo’d mul6ple databases • Single data store • Spreadsheets Technology • Standard toolset
10 Poten?al KPIs Name and Purpose Deﬁned Equa?on Workforce Produc?vity 1. Return on Human Capital Investment: Demonstrates the value of (Opera6ng Proﬁt for Period / Total Employee Compensa6on & organiza6on’s investment in people (i.e., labor cost). Beneﬁts for Period) * 100 2. Opera6ng Proﬁt per Employee: Links the 6me and eﬀort of the Opera6ng Proﬁt for Period / Average Headcount for Period workforce to produce a proﬁt. 3. Revenue per Employee: Links the 6me and eﬀort of the workforce to Revenue for Period / Average Headcount for Period produce revenue. Staﬃng / Talent Management Eﬀec?veness 4. Turnover Rate: As a lagging indicator, it links talent management (Total # of Separa6ons During Period / (Average Headcount for prac6ces to quality of both people hired into speciﬁc roles and talent Period) * 100 prac6ces, par6cularly when examining turnover reasons and; serves as a useful predic6ve metric for workforce planning; serves as a leading indicator of produc6vity.
10 Poten?al KPIs (con?nued) Name and Purpose Deﬁned Equa?on Staﬃng / Talent Management Eﬀec?veness (con?nued) 5. Employee Engagement: Indicates the percentage of employees who like Periodic Survey Results their jobs, appreciate the organiza6on’s value proposi6on, and feel their managers are eﬀec6ve; serves as a useful leading indicator of turnover. 6. Average Total Compensa6on by Performance Ra6ng: Isolates For Each Headcount Assigned a Ra6ng During Period: (Total Dollars considera6on of employee performance as factor on the value assigned to Salary + Total Incen6ve Dollars + Total Dollar Value of Shares / employee. Average Headcount for Period) * 100 7. Internal Mobility: Reﬂects the extent to which employer value (Total # Internal Advancements / Average Headcount for Period) * proposi6ons of employee career development and career advancement are 100 realized. ~ And ~ (Total # Transfers that are Lateral Moves / Average Headcount for Period) * 100
10 Poten?al KPIs (con?nued) Name and Purpose Deﬁned Equa?on Staﬃng / Talent Management Eﬀec?veness (con?nued) 8. Bench Strength: Indicates the level of preparedness of the (# of Cri6cal Posi6ons with 2 Ready Internal Candidates / Total # of organiza6on to execute on its business plans into the future. Cri6cal Posi6ons in Need of Successors) * 100 ~And~ (# of Key Posi6ons with <= 1 IDd Successor at Point-‐in-‐Time / Total # of Key Posi6ons at Point-‐in-‐Time) * 100 9. Quality of Hire: Indicates how well HR and hiring managers partner to Manager sa6sfac6on with new hire performance rela6ve to expecta6ons ﬁnd good-‐ﬁt candidates for open posi6ons; also indicates the quality at some point following the hire. with which on-‐boarding ac6vi6es are executed. ~And~ New hire turnover and reason for leaving. 10. Time-‐to-‐Start: Indicates the length of 6me posi6ons are vacant; # of Calendar Days [including weekends and holidays] From Requisi6on useful when determining whether or not the ﬁrm has enough people in Approval Submission to Employee Start Date -‐ Days in On-‐Hold status key roles to meet performance / produc6vity goals, and as a leading indicator when workforce planning.
Metric Decision Tree Do we currently track & deliver this metric? Yes No •Does it provide meaningful and actionable data? Do we have a precise objective for how this metric•Have or could we utilize this data to make decisions? will be used and what decisions it will support? Yes No Yes No Can we define [and agree on] Retain? Drop metric. a valid formula for this metric? Drop metric. Yes No Can we obtain the data to support this metric? Source system(s) Reconsider metric or approach. defined? Data defined? Etc.? Yes No Is the process for obtaining Reconsider metric or approach. and preparing the metric Weigh the costs and benefits. overly burdensome? No Yes Adopt metric and plan for Weigh the costs and benefits, dev’t, delivery & change.
Workforce Analy6cs SYSTEMS & DATA ROADMAP EXAMPLE
What Might a 3-‐Year Plan Look Like? How About a 1-‐Year Plan?
Guiding Principles One of Our Clients Used When Refocusing its Talent Intelligence Mission through an Implementa?on 1. Each measure, metric and analy6c must be linked to a business driver provide meaningful informaOon about how we leverage people, resources and capital to improve enterprise performance. 2. We will iden6fy and measure what is ‘important to measure’ as opposed to measuring what is ‘easy to measure.’ 3. We will iniOate a consistent and disciplined data collecOon methodology that includes standard deﬁniOons for measures, metrics and analy6cs. 4. We will provide business users – our customers – with direct access to the data, metrics and analyOcs they need to make smart decisions about people. 5. We must understand upfront that due to technology constraints, it may not be possible to obtain reliable data on all desired measures. We will start small with a few criOcal measures that can be collected and add measures over Ome.
Sample Ac6on Plan – Year 1 ReporOng – Provide Clarity CY 2012 CY 2013 Q3 Q4 Q1 Q2 Q3 Q4 Define responsibility for Develop Intake Strategy Declaration from Leadership to Support Designation of Standard Reports Metrics/Analytics/ Create List of Standard Reports for Report Requests Conversa6ons with partners to update deﬁni6ons Reporting within HR • Define responsibility for metrics / reporting / analytics within HR Recommendations • Create a list of standard reports & align on terminology • Develop intake strategy for report requests Actions: Resources / Participants • Establish clear divisions of labor and formal roles & responsibilities for tracking, • Sponsor(s): Carrie Blair analyzing and reporting on various workforce metrics • Owner(s): Leslie Michener • Align on common definitions (headcount, turnover, absenteeism) • Resources: N/A • Create centralized data model Timeline: • Take ownership of HR data • 9 Months – Implementation • Streamline current report creation, (e.g. Talent Pipeline report) • 9 Months – Maintenance • Declaration from Leadership to support designation of standard reports and Estimated Cost: Vendor Costs – N/A common definitions of key HR metrics • Implementation Internal Resources – N/A • Conversations with partners (e.g. Finance, business leaders) to update their • Implementation External Resources – N/A definitions • Maintenance Resources – N/A • HR Reporting builds a core set of the most frequently requested standard reports Value Generated: for business leaders to access via self-service, reducing manual efforts to provide customized reports • Perception that HR has taken ownership & control of its data • Train HRBPs to interpret • Less duplication of effort trying to track numbers and generate reports within HR and between HR & Finance • Appropriate expectation setting for HR’s partners Risks & Dependencies: • Disagreements between HR and Finance about what constitutes headcount, turnover, absenteeism, etc. not being resolved • Inability of HR reporting team to combine data effectively in order to generate standard reports that meet partners’ demands People/Process Technology
Discussion Jason Averbook Chief Business Innova6on Oﬃcer @jasonaverbook hFp://blog.knowledgeinfusion.com