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Driving Hr Transformation With Metrics V7

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Driving Hr Transformation With Metrics V7

  1. 1. Your Mission – Our Passion<br />Driving Workforce Transformation Through Metrics<br />Present by:<br />Russell M. Klosk, MBA, SPHR, GPHR<br />Paul Thornton, Ph. D.<br />
  2. 2. Everybody loves Dilbert<br />
  3. 3. What are we going to cover?<br />What are leaders asking of the HR organization? <br />How do metrics support this?<br />The role of Metrics as an enablement mechanism in HR Transformation<br />Are you measuring the right things?<br />Real world examples<br />In other words<br />Which key data should be shared and highlighted to your executive team <br />Review your data to determine what changes will spur new innovation and growth (Transformational data)<br />Architecture & tools to help accomplish this<br />Understand where your workforce resources should be allocated<br />What does it look like<br />
  4. 4. About Us<br />Serco<br /><ul><li>Fortune 500 company with over $6B annual sales
  5. 5. More than 70,000 employees globally
  6. 6. UK Headquartered and operating in 50 countries around the world
  7. 7. US Headquarters in Reston, VA
  8. 8. Over 11,000 US Based skilled and dedicated professionals
  9. 9. Professional service firms offering a full range of Management Consulting services.
  10. 10. We embed metrics into everything we do, both HR metrics and performance metrics.
  11. 11. 30+ years corporate experience driving HR Transformation</li></ul>Russell Klosk, MBA, SPHR, GPHR<br />Paul Thornton, Ph.D.<br />We are a leading provider of professional, technology and management services.<br />Advise | Design | Integrate | Deliver<br />
  12. 12. Organizational priorities are changingShift from transactional to strategic <br />Mission attainment is leadership’s top priority - and innovation is required to enable it<br />Responsiveness and agility are the new key competencies, requiring innovation across three areas:<br />Offerings and services <br />Operation of core functional areas<br />Overall enterprise model (especially collaboration)<br />Operatingmodelinnovation is becoming as important as traditional offering and service innovation. Organizations that outperform focus on this <br />But, collaboration and model reinvention require strong leadership of change, notably in the areas of: <br />Culture<br />Rewards<br />Integration of process and technology<br />Source: 456 CEOs, IBM Global CEO Study, 2004765 CEOs, IBM Global CEO Study 2006<br />
  13. 13. The Question Leaders Aren’t Asking<br />How do I make decisions about human resources with the same rigor as I do about finance or operations?<br />What types of metrics and dashboards empower me (leaders) to accomplish this?<br />
  14. 14. These priorities shape the new Human Capital agenda<br />HR Executives are challenged to ensure the right balance between strategic effectiveness of HR and operational efficiency of the function<br />As people challenges including cultural development, leadership and collaboration become a critical part of achieving innovation, the Human Capital agenda must evolve<br /><ul><li>A variable and efficient cost model for the HR function with high service levels is required
  15. 15. Organizations require many delivery channels to ensure employee and manager access
  16. 16. CHROs must be able to demonstrate the link between Human Capital activities and business results
  17. 17. The decision to build or buy skills becomes central
  18. 18. Retaining key people when facing a shortage of supply is critical
  19. 19. Work must transform to shortages
  20. 20. Organizations must measure and reward executives and the HR function by how they deliver on the critical talent agenda
  21. 21. Developing skills to support growth, innovation, differentiation and customer satisfaction becomes a top priority
  22. 22. Collaboration across the company, channels, and citizens is needed to transform work</li></li></ul><li>What key data should be shared?<br />There is no one magic bullet<br />You must determine what metrics drive organizational capability given your unique business environment <br />If you are looking for a single metric or data element that is everything your HR Executives need you are missing the mark<br />It is entirely about looking at all the relevant data and getting to those that tell a meaningful story for what you are trying to accomplish<br />How do get to this?<br />
  23. 23. Developing your expertise:<br />Metrics & Analytics enable the transformation<br />
  24. 24. Different metrics for different missions<br />Workforce Enablement<br />HR Execution<br />Employee Development<br /><ul><li>Workforce planning & analytics
  25. 25. Talent sourcing, selection & deployment
  26. 26. Industry workforce solutions (aging, diversity, immigrants, absence, third party cost mgmt, employee experience, forecasting & scheduling)
  27. 27. Time & labour
  28. 28. Competency, performance & succession management
  29. 29. Role-based transformation
  30. 30. Knowledge management & collaboration
  31. 31. Human capital / HR strategy and change
  32. 32. HR operations and service delivery
  33. 33. Process and organization design and improvement
  34. 34. Shared services and employee service centers
  35. 35. HRIT strategy, systems implementation and upgrades
  36. 36. HRBTO and system outsourcing, maintenance and hosting
  37. 37. Corporate learning strategy & analytics
  38. 38. eContent
  39. 39. Business applications and process training
  40. 40. Learning technology
  41. 41. Business skills training
  42. 42. Merger training programs
  43. 43. Learning BTO and system outsourcing, maintenance and hosting</li></ul>Data is used to spur new innovation and growth (Transformation)<br />Identifies areas of focus, and areas for improvement<br />
  44. 44. Workforce Intelligence Architecture<br />“Tie HR to the business”(strategic impact)<br />Business Analytics<br />“Monitor HR performance”(operational effectiveness)<br />HR Metrics<br />“Run the department”(transactional efficiency)<br />Workforce Reporting<br />
  45. 45. Using “Workforce Intelligence” as Your Tool<br /> This will insure that … <br />Operational reporting is more comprehensive and efficient<br />Individual application data is integrated <br />You have desktop reporting tools<br />Graphically-rich information is easily utilized <br />Dashboards are user specific <br />You can measure progress against benchmarks and internal targets<br />HR practices and investments can be aligned with enterprise goals<br />Relationships between investment and results can be demonstrated<br />Efficiency<br />Transactional<br />Effectiveness<br />Operational<br />Strategic<br />Impact<br />
  46. 46. Do we really measure the HR Value Proposition<br />Actual HR Measures (tactical)<br />Headcount<br />Turnover Rates<br />Succession Candidates<br />Time-To-Fill, Train, On-Board, Utilization<br />Training Hours<br />Cost Reductions<br />Training Completed<br />Grievances<br />Client Satisfaction Surveys<br />Performance/Potential Ratings<br />Productivity per employee<br />Best Practices Recognition<br />Human Capital Objectives (strategic)<br />Driven to Win<br />Leaders<br />Flexible<br />Embracing Risk<br />Self Developing<br />Creative<br />Fast<br />Global<br />Engaged<br />Mission Aligned<br />
  47. 47. Value Creation Increasingly Dependent on the “Talent” market<br />Measure what you need<br />Value Creation Strategy<br />SMART ≠ MOTIVATED<br />EXPERIENCED ≠ PRODUCTIVE<br />AGGRESSIVE ≠ EFFECTIVE<br />CHARMING ≠ CONSTRUCTIVE<br />Product / Service<br />Financial<br />Talent<br />Value Analysis in this<br />Market is Critical<br />
  48. 48. Change Brings Opportunity<br />A revolution in the way people are valued in the workplace.<br />Instead of treating people as units of cost, measure and maximize their strategic value to the enterprise. ‘Headcount’ gets cut. ‘Infrastructure’ gets attention!<br />From Transactional to Strategic<br />Human Resources to Human Infrastructure<br />
  49. 49. Transition of the HR Functions<br />+<br />Analytics<br />+<br />
  50. 50. Business Analytics <br />Understanding how your workforce resources are allocated is what the analytics do for you.<br />Identify top workforce drivers and allocate appropriate investments to drive company success.<br />Align workforce performance with business strategic goals.<br />Focus workforce practices on critical business success levers. <br />Focus is on certifications, qualifications, competency and performance, measure not only performance but potential, maximize investments.<br />
  51. 51. So what do we tell to leaders? <br />What the workforce is capable of,<br />What the workforce needs to evolve to,<br />How successful are we executing,<br />Where does $’s spent generate the best results,<br />How should we form teams, <br />Who, when, where,<br />Where & How should work be performed and measured,<br />What & How do we reward & recognize,<br />Which employees are the future and how do we get them what they need to get there.<br />
  52. 52. The Balanced Scorecard<br />Results<br />Customer<br />Processes<br />People<br />Here is how it all comes together<br />Individual objectives & appraisals, Aligning people with strategy, Training<br />People<br />Processes<br />Measures & Analytics<br />Behaviours<br />Decisions & actions<br />Execution<br />Business <br />Strategy<br />Reporting<br />Organizational<br />Constructs<br />using strategy to drive delivery<br /><ul><li>Business planning; Risk management; Resource allocation; Project & Programme Management</li></li></ul><li>So what does it look like in the real world<br />Navy Personnel Readiness<br />Issue: Navy skill requirements are constantly changing with Congressional actions, unit moves, reorganizations and equipment fielding or retirement. Operational unit readiness is a function of personnel readiness but in terms of fill and fit (skills, experience/grade) <br />Solution: Fielded forecasting tools which predict personnel readiness up to 15 years into the future at varying levels of detail (higher near term and more aggregated beyond 5 years)<br />Metrics: gains, promotions, losses, experience levels and gaps <br />Navy Incentives<br />Issue: Use of incentives is a major component of personnel costs supporting personnel retention (selected skills and experience) and volunteerism for difficult to fill locations (hardship locations)<br />Solution: Fielded analytic tools which track the use of incentives for ROI and a “reverse bid” tool which allows the Navy to post ceilings for certain assignments and the Sailors can bid down (win-win)<br />Metrics: Retention %, Incentive Utilization, Bid levels, Cost Savings<br />
  53. 53. Some more examples<br />Navy Budget Process<br />Issue: Navy submits a Five Year Defense Plan and Program Objective Memorandum to justify budgetary requirements. Personnel costs, direct and supporting, represent a significant portion of the overall budget. Costs are driven by both internal and external factors.<br />Solution: Developed predictive forecasting models allowing policy analysis and resulting strength and budget requirements (planning) and execution tracking models which allow month to month analysis (expenditures to target)<br />Metrics: Annual and monthly strength, Costs, Readiness levels<br />US FBI Strategic Planning<br />Issue: The FBI recognized the changing nature of crime and trends would require reorganization and realignment. <br />Solution: Developed a workforce strategic planning model which allowed analysis to develop future scenarios (requirements), forecast the gaps between the projected existing and future requirements and solutions for closing the gaps<br />Metrics: annual gains, promotions, losses, experience levels and gaps by scenario <br />
  54. 54. Questions<br />
  55. 55. Thank You<br /><br />(240) 778-1233<br /><br />(703) 939-6590 <br />

Editor's Notes

  • An overview of what we’re going to cover today. We’ve taken an approach that may be a little different from the others that you’ve seen, while we are going to go through our technical approach to all of the tasks and address the key elements of your evaluation criteria we are going to shuffle the order slightly. We understand from your instruction that you may chose to award this contract to either a single vendor, or break parts of it into multiple awards. While we firmly believe we are positioned to produce maximum efficiencies and optimal results to VA as a single provider, and that this is the best approach for the VA to take we also see the benefits to the government in multiple awards and are prepared to deliver world class results in either structure. As you here our technical approach you will see that we have shuffled the order somewhat as we believe there are core elements, such as the underlying competency model, communications and change management, that are foundational to the entire effort and which must be executed on effectively in order for success to be achieved in any of the tasks and regardless of who has ultimate responsibility for each individual tasking.
  • This is what leaders should be asking, if they aren’t HR needs to help them understand why they should, and how HR can support answering these questions through the use of metrics &amp; analyticsBecause HR needs to play this role for sr. leaders the competency models are shifting, we as practioners, need to get smart on what competencies we need
  • The model is not as important as the expertise on how to Models such as LAMP have been around for a long time, we use lamp as a guiding framework, but it is entirely about the execution, not the model. Understanding what you are trying to get to, and more importantly why you are trying to get to it allows you to look at the different elements of this, or any other, framework in the right way.
  • So what metrics do I want to pull. We are pulling all kinds of employee data into our systems. As you look at the different HR missions you just need to look at what your trying to do, and then pick metrics that help empower measurment of results in that function.Impacts the futureDemonstrate the value of current and past workforce investments to guide prioritization and decision-making.Optimizes assetsUse workforce investments to drive competitive advantage.Connects the dotsTie workforce performance to enterprise key performance indicators (KPI’s).Delivers efficient &amp; accurate reportingQuickly deliver accurate reports across the enterprise through a variety of channels.Provides contextHelp leaders to better understand effective behavior, measure and improve results, and provide feedback.Once you’ve determined what you want to measure and how that drives to your focus, how do you actually dilineate what will get you there
  • You still need the tactical level markers &amp; measurements, but it is about shifting the conversation to the strategic. We all know what the items on the right say, but it is the items on the left that enable organizations to drive mission. The shift of how you use the tactical data points to drive the strategic mission is the art.Illustrative examples of some possible metrics. These are the outcomes from Workforce Intelligence Architectures and tools like LAMP, you get metrics that can answer the questions on strategic measures like these. Focus on the difference from tactical to strategic.What I hope you’re all thinking about now is not the measures of the past on the right, but the metrics of the future on the left
  • Most organizations are straddling the line. We are reported and measured to death, we have 360 reviews, and dashboards, etc. but we’re still functioning as a transactional organization, what the power of analytics is revolves around how you apply the data, how you change the relationship of what you do with the data to drive transformation of the workforce.We still do both, but in a more mature organization the balance of where time is spent shifts more to the strategic and less on the tacticalMost organizations today spend 80-90% of their time providing service, 10-20% assisting decision enablement, the delta is to shift the balance to more of a 50/50 proposition
  • Summation of everything we coveredRe walk through salient pointsSo now lets talk about some real life examples