CIPD HRBP Conference Address, November 2014 (London) Disclaimer: Mark Lawrence is no longer an employee of IBM. This content was presented with permission, to the CIPD community; although IBM materials feature in this presentation, the views and opinions reflected belong to Mark Lawrence. To avoid compromising confidentiality, details relating to use cases have been removed; remaining material should be publicly available (references are included).

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

2. A History of Digging
© 2014 International Business Machines Corporation

3. 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
© 2014 International Business Machines Corporation
30 mins

4. The Importance Of Strategic HR Planning
Human capital is the leading cited source of economic value...
© 2014 International Business Machines Corporation
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

5. 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.”
© 2014 International Business Machines Corporation
(CIPD, 2012) Source: Office for National Statistics website

6. Convinced?
© 2014 International Business Machines Corporation

7. What Other Factors Need We Consider?
 Technology
 Industry Trends
 Business Strategies
 Strategic Initiatives, Alliances,
Partnerships
© 2014 International Business Machines Corporation

8. The ‘Fact Gap’
https://infogr.am/mtlgartners-fact-gap
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9. So, where do we start…?
© 2014 International Business Machines Corporation

10. HRBPs Need to Have a Plan!
‘The Intelligent Way to Leveraging Data’
Advanced Performance Institute, 2013
© 2014 International Business Machines Corporation
1. Start with
your strategic
questions
2. Identify the
right data
3. Analyse the
data
4. Use it to add
value
Technology

11. Set High Expectations
© 2014 International Business Machines Corporation
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

12. © 2014 International Business Machines Corporation
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

13. Be Provocative!
© 2014 International Business Machines Corporation
Business
Objectives
Have the “right” conversations
Data
“The Support Loop”
M T Lawrence

14. 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
© 2014 International Business Machines Corporation
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

15. Differentiate
© 2014 International Business Machines Corporation
 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)

16. Differentiate
© 2014 International Business Machines Corporation
 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)

17. Win With Technology!
 Faster
 More Efficient
 More Reliable
 More Relevant
© 2014 International Business Machines Corporation
Technology
Analyse
• Dashboards
• Scorecards
• Customisable Reporting
• Scheduling and Alerts
• Security and control
• Standardisation
• Ease of sharing and
Collaboration

18. © 2014 International Business Machines Corporation
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

19. IBM’s Workforce Analytics Team
Enterprise-wide
Reporting
Predictive Analytics
© 2014 International Business Machines Corporation
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

20. IBM’s HR Strategy, Redefined
Thought
Leadership
© 2014 International Business Machines Corporation
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

21. © 2014 International Business Machines Corporation
“There are three kinds of
lies…”

22. Decision-Making Psychology
© 2014 International Business Machines Corporation
“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’

23. Use Cases
© 2014 International Business Machines Corporation

24. CASE STUDY 1)
Smarter Learning Analytics
CASE STUDY 2)
Predicting Attrition
CASE STUDY 3)
Social Analytics
© 2014 International Business Machines Corporation
<Details removed>

25. Key THEMES
For The ‘HRBP’
© 2014 International Business Machines Corporation
Understanding
Objectives
Social Business
Evolving
Skillsets
Strategic
Importance
Alignment
Results-Driven
Demonstrate
Impact!
INVESTMENT
&
TECHNOLOGY

26. 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
© 2014 International Business Machines Corporation

27. Thank you
© 2014 International Business Machines Corporation

28. 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
© 2014 International Business Machines Corporation

29. Continuing the discussion
© 2014 International Business Machines Corporation
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