Validating and Promoting HR Strategies with Data and Analytics

Validating and Promoting HR Strategies
with Data and Analytics
Mark T Lawrence
@MTLawrence
25 November, 2014
© 2014 International Business Machines Corporation

A History of Digging

Objectives
 To explain and evidence the value of HRBPs as a strategic business partner
 To show how business objectives rely upon processes with tangible, measurable
data
 To challenge silos and collect advanced data for deeper, more insightful analyses
 To outline some best-case examples of projects using analytics to increase HR
impact
30 mins

The Importance Of Strategic HR Planning
Human capital is the leading cited source of economic value...
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, 2011
Human capital
Products / services innovation
Customer relationships
Brand(s)
Business model innovation
Technology
71%
66%
52%
43%
33%
30%
...but, CEOs face significant workforce challenges.
The average turnover in the
U.S. is 15% per fiscal year.2
Total costs of replacement can
reach 200% of an employee’s
annual salary.2
Key sources of sustained economic value1

HR Must Now Be THE Strategic Priority!
“If labour market conditions improve
– with significant rises in job
vacancies or sharp falls in
unemployment – we should expect
to see increased
employee turnover.”
(CIPD, 2012) Source: Office for National Statistics website

Convinced?

What Other Factors Need We Consider?
 Technology
 Industry Trends
 Business Strategies
 Strategic Initiatives, Alliances,
Partnerships

The ‘Fact Gap’
https://infogr.am/mtlgartners-fact-gap

So, where do we start…?

HRBPs Need to Have a Plan!
‘The Intelligent Way to Leveraging Data’
Advanced Performance Institute, 2013
1. Start with
your strategic
questions
2. Identify the
right data
3. Analyse the
data
4. Use it to add
value
Technology

Set High Expectations
Do HRBPs really know about what stakeholders are trying to achieve?
 Research, Active Listening, Identify Sponsors and Suggest Follow-ups
Tenacity In Obtaining Data
 Formulate a convincing business case, to engage others
Invest Time, Energy And Effort
 Consider workload carefully: Formatting, Skills, Source, Reliability,
Repeatability
Verify, Refine and Recommend
 Check it makes sense!
 Demonstrate value-add, Provide reasoned, evidence-based proposals
1. Start with
your strategic
questions
2. Identify the
right data
3. Analyse the
data
4. Use it to add
value

HR
Sales
Marketing
Learning
Payroll
Capacity Planning
Recruitment
Development
Performance Management
etc.
Spot The HR Business Partner?
Resource Deployment
X
X
X
@MTLawrence
CMO coming out on top as emergent
powerful force, but #HR has worst
reported relationship with Marketing
#HNCIOSurvey
7:13pm – 23 Oct 14
X

Be Provocative!
Business
Objectives
Have the “right” conversations
Data
“The Support Loop”
M T Lawrence

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
Lack of management bandwidth due to competing priorities
Lack of skills internally in the line of business
X Ability to get the data
X
Culture does not encourage sharing information
Ownership of the data is unclear or governance is ineffective
Lack of executive sponsorship
Concerns with the data
Perceived costs outweigh the projected
benefits
No case for change
38%
34%
28%
24%
23%
23%
22%
21%
21%
15%
Organizational
Data
Financial

Differentiate
 Workday
 SuccessFactors
 Kenexa
 Taleo
 Saba, etc, etc, etc…
Technology
Visualisation by M T Lawrence
“HR technology spending continues to be strong,
in spite of cost reductions in other parts of organisations”
(Towers Watson, 2014)

Differentiate
 Workday
 SuccessFactors (SAP)
 Kenexa (IBM)
 Taleo (Oracle)
 Saba, etc, etc, etc…
Technology
Visualisation by M T Lawrence
“HR technology spending continues to be strong,
in spite of cost reductions in other parts of organisations”
(Towers Watson, 2014)

Win With Technology!
 Faster
 More Efficient
 More Reliable
 More Relevant
Technology
Analyse
• Dashboards
• Scorecards
• Customisable Reporting
• Scheduling and Alerts
• Security and control
• Standardisation
• Ease of sharing and
Collaboration

Social-ise
Win With Technology!
Analyse
 Faster
 More Efficient
 More Reliable
 More Relevant
Technology
• Dashboards
• Scorecards
• Customisable Reporting
• Scheduling and Alerts
• Security and control
• Standardisation
• Ease of sharing and
Collaboration

IBM’s Workforce Analytics Team
Enterprise-wide
Reporting
Predictive Analytics
Internal Surveys
External Analytics
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
• Provide better insights from analytics to inform strategy
• Grow analytic skills in emerging countries
Social Analytics

IBM’s HR Strategy, Redefined
Thought
Leadership
Develop deep expertise in business,
HR, execution methods and systems
thinking to enable IBM’s ability to
produce value for clients, IBMers,
investors and communities
Analytics Use technologies to capture, analyze
and integrate data that will yield rich
insights and advance the science of
predicting, shaping and adapting to
business trends
Collaboration Use contemporary technologies and
techniques within the HR community to
enable seamless global communication
to develop, test, refine and implement
the best ideas

“There are three kinds of
lies…”

Decision-Making Psychology
“Let the dataset change
your mindset”
(Hans Rosling)
“Bias” is the conflict between intuition and logic
• ‘Attentional Blindness’ (or ‘Frame Blindness’)
• ‘Confirmation Bias’
• ‘Risk Aversion’
• ‘Hedonic Editing’
• ‘Anchoring Heuristics’

Use Cases

CASE STUDY 1)
Smarter Learning Analytics
CASE STUDY 2)
Predicting Attrition
CASE STUDY 3)
Social Analytics
<Details removed>

Key THEMES
For The ‘HRBP’
Understanding
Objectives
Social Business
Evolving
Skillsets
Strategic
Importance
Alignment
Results-Driven
Demonstrate
Impact!
INVESTMENT
&
TECHNOLOGY

In Conclusion…
• Cultural shift from data extraction to business analytics
• HRBPs need to work with Stakeholders, proactively, to set clear priorities
for data and analytics
• Need a broad range of skills
• Simplicity and elegance outweigh “bells and whistles”
• Take some risks with new tools – open people’s minds to the opportunity
• If you do what you’ve always done, you’ll get what you’ve always got

Thank you

Further resources
 Analytics: The New Path to Value” IBM
(https://ibm.biz/newpathvalue)
 MegaTrends | “Has Job Turnover Slowed Down?” CIPD
(http://www.cipd.co.uk/binaries/megatrends_2013-job-turnover-slowed-down.pdf)
 “2014 HR Service Delivery and Technology Survey Results” Towers Watson
(http://www.towerswatson.com/en-GB/Insights/IC-Types/Survey-Research-
Results/2014/06/2014-hr-service-delivery-and-technology-survey)
 The Office for National Statistics (ONS):
http://www.ons.gov.uk/ons/taxonomy/index.html?nscl=Labour+Market
 The Advanced Performance Institute:
http://www.ap-institute.com/
I would also like to acknowledge the contributions of Jonathan Sidhu, in preparing this
content. @jmsidhu

Continuing the discussion
On a range of topics, including:
 Blog http://learningintelligence.blogspot.co.uk/
 Academic interest bn14mtl@leeds.ac.uk
 Advice!
Mark T Lawrence can be reached via:
 Email mtlawre@gmail.com
 Phone +44 (0)7917 270138
 Twitter http://twitter.com/mtlawrence | @MTLawrence
 Linked In https://www.linkedin.com/in/marktlawrence
 About Me http://about.me/marktlawrence

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