Agile2015 Strategy Mapping: Clear path to a successful Agile strategy
Valueaddedmetrics@10052013
1. Value Added Metrics in HR
Emre Kavukcuoglu
International HR Conference
10-11 May, 2013 - Tbilisi
2. Source of Competitive Advantage is Changing
Emre Kavukcuoğlu
...... for us this lawsuit has always been about something
much more important than patents or money. It’s about
values. We value originality and innovation and pour our
lives into making the best products on earth. And we do
this to delight our customers, not for competitors to
flagrantly copy.
... i am very proud of the work that each of you do.
Today, values have won and I hope the whole world
listens.
Source: http://www.businessinsider.com/tim-cooks-memo-to-apple-employees-after-winning-samsung-case-2012-8
Here's The Memo Tim Cook Sent To Apple Employees After The Company's Big Win In Court
3. Source of Competitive Advantage is Changing
Emre Kavukcuoğlu
17
32
68
80 80
83
68
32
20 20
1975 1985 1995 2005 2010
Tangible Assets Intangible Assets
Source: Ocean Tomo, Components of Market Value of S&P 500
4. Source of Competitive Advantage is Changing
Emre Kavukcuoğlu
talent
knowledge
values
culture
leadership
engagement innovation
high
potential
5. From Strategy to Value Creation
Emre Kavukcuoğlu
STRATEGY
(Business Strategy / HR Strategy)
VALUE
Data Information Insight Action
Business
Performance
Efficient use of Metrics
6. Value Matrix for HR Metrics
Emre Kavukcuoğlu
Business Impact
ImportancetoC-Suite
High
Low High
Delist immediately
«messtric»
Opportunity Area
Nice to have Value Added
7. HR Can Drive Business Results
Emre Kavukcuoğlu
Topic in which most capable and
least capable companies were
compared
The impact that the most capable companies
achieve over the least capable companies in...
...revenue growth ...profit margin
Delivering on recruiting 3.5x 2.0x
Onboarding of new hires and retention 2.5x 1.9x
Managing talent 2.2x 2.1x
Improving employer branding 2.4x 1.8x
Performance management and rewards 2.1x 2.0x
Developing leadership 2.1x 1.8x
Source: BCG, From Capability to Profitability, 2012
Survey of 4.288 HR/Non HR
8. Why Analytics is Not Used
Emre Kavukcuoğlu
Source: Analytics, The New Path to Value, IBM-MIT Report, 2010
What are the
primary obstacles to
adoption and use of
information and
analytics in your
Organization?
9. Information Gap is huge
Emre Kavukcuoğlu
Source: PWC 15th Annual Global CEO Survey, 2012
N= 1.258, 60 countries
10. Information gap is huge
Emre Kavukcuoğlu
Source: Taleo , Talent Intelligence, Key to Success - 2010
N= 350+ HR/Non HR
11. Starting from the beginning
Emre Kavukcuoğlu
Review your current metrics
Identify the ones that are aligned with your business
– Meaningful
– Easy to access
– Actionable
Get input from management– senior management, line management
– What are their priorities ?
– What are the metrics that will guide their decision ?
– Which metrics would they follow, if they had the opportunity to?
– How can HR help?
12. Starting from the beginning
Emre Kavukcuoğlu
Decide which metrics to use
– Absolute value, %, (benchmark vs. targets)
– Measurement period (annual, quarter,monthly...)
– External benchmark (industry, peer groups...)
Collaborate with IT and Finance
Consultancy
15. • Bench Strength / Succession Planning
- Organization’s sustainability
- Minimization of knowledge loss
- Senior positions
- Key positions
Management headcount ready for promotion / Management Headcount
Number of succession planning candidates / Number of key roles
Number of succession planning candidates promoted / Number of succession planning
candidates
Value Added Metrics
Emre Kavukcuoğlu
16. Value Added Metrics
Time to fill : Total days to fill / Total hires
First year of service voluntary separation / Total separations
Performance of new hires
Value vs. Cost based on recruitment sources (LinkedIn, newspaper, career site,
consultancy...)
• Quality of hire
- Time
- Performance
- Productivity
- Resource based evaluation ( quality vs. sources used)
Emre Kavukcuoğlu
17. HCROI =[Revenue – (Total Cost* – (Compensation + Benefits Costs))] / (Compensation + Benefits Costs)
( Compensation + Benefits Costs) / Revenue
Value Added Metrics
• Compensation and Benefits
- Link with financials
- Compensation costs
- Workforce planning
* Total cost = Revenue – Operating Profit
Emre Kavukcuoğlu
18. Total voluntary separations / Headcount
Total voluntary separations from key positions
Hi-Potential voluntary separation ratio
Hi-Performer voluntary separation ratio
Detailed analysis of exit interview
Potential turnover risk of key employees
Turnover costs
Value Added Metrics
• Retention / Turnover – multidimensional analysis
- Resignation rates
- Functional
- Based on workforce groups
- Management action
Emre Kavukcuoğlu
19. Engagement Index
Actions taken based on Engagement Survey indications
• Employee engagement
- Action plans
Value Added Metrics
Emre Kavukcuoğlu
20. Realization of individual goal
% of individual goals aligned with business plans
Competency gap analysis: expected vs. actual
Emre Kavukcuoğlu
Value Added Metrics
• Goal alignment / Competency Gap Analysis
- Performance management
- Aligned individual goals with business direction
- Development goals follow-up
- Competency / skills analysis
21. Employees eligible for retirement within next 5 yrs / Headcount
Emre Kavukcuoğlu
Value Added Metrics
• Retirement in 5 yrs.
- Loss of expertise, knowledge
- Organization’s sustainability
- Key positions/senior management
- Workforce planning
- Development planning
22. Assessing Your Metrics
Emre Kavukcuoğlu
Are they aligned with business/HR strategy ?
Do they have financial measures?
Are they causing an action or a change in behavior?
Are these only measuring the past or giving any indication
about the future?
Are these designed together with senior management or
functional leaders in the Organization?
23. Assessing your Metrics
Emre Kavukcuoğlu
Are you following more than 8 metrics?
Are you only tracking operational metrics?
Are you benchmarking your results with market?
Are these included in the annual reports of the Company?
24. Sources for HR Measurement
Emre Kavukcuoğlu
You can also visit my website
http://www.hragenda.net
25. Value Added Metrics in HR
Thank You.......
Emre Kavukcuoglu
International HR Conference
10-11 May, 2013 - Tbilisi
