This document discusses how metrics can drive workforce transformation and enable HR to support organizational priorities. It argues that metrics should measure both operational effectiveness and strategic impact. Leaders increasingly need HR metrics to make data-driven people decisions. Real-world examples from the Navy demonstrate how metrics can analyze personnel readiness, incentive programs, and budget planning. The presentation advocates developing a "workforce intelligence architecture" using metrics and analytics to understand resource allocation, focus practices, and demonstrate return on investment from HR activities.

1. Your Mission – Our PassionDriving Workforce Transformation Through MetricsPresent by:Russell M. Klosk, MBA, SPHR, GPHRPaul Thornton, Ph. D.

2. Everybody loves Dilbert

3. What are we going to cover?What are leaders asking of the HR organization? How do metrics support this?The role of Metrics as an enablement mechanism in HR TransformationAre you measuring the right things?Real world examplesIn other wordsWhich key data should be shared and highlighted to your executive team Review your data to determine what changes will spur new innovation and growth (Transformational data)Architecture & tools to help accomplish thisUnderstand where your workforce resources should be allocatedWhat does it look like

4. About UsSercoFortune 500 company with over $6B annual sales

5. More than 70,000 employees globally

6. UK Headquartered and operating in 50 countries around the world

7. US Headquarters in Reston, VA

8. Over 11,000 US Based skilled and dedicated professionals

9. Professional service firms offering a full range of Management Consulting services.

10. We embed metrics into everything we do, both HR metrics and performance metrics.

11. 30+ years corporate experience driving HR TransformationRussell Klosk, MBA, SPHR, GPHRPaul Thornton, Ph.D.We are a leading provider of professional, technology and management services.Advise | Design | Integrate | Deliver

12. Organizational priorities are changingShift from transactional to strategic Mission attainment is leadership’s top priority - and innovation is required to enable itResponsiveness and agility are the new key competencies, requiring innovation across three areas:Offerings and services Operation of core functional areasOverall enterprise model (especially collaboration)Operatingmodelinnovation is becoming as important as traditional offering and service innovation. Organizations that outperform focus on this But, collaboration and model reinvention require strong leadership of change, notably in the areas of: CultureRewardsIntegration of process and technologySource: 456 CEOs, IBM Global CEO Study, 2004765 CEOs, IBM Global CEO Study 2006

13. The Question Leaders Aren’t AskingHow do I make decisions about human resources with the same rigor as I do about finance or operations?What types of metrics and dashboards empower me (leaders) to accomplish this?

14. These priorities shape the new Human Capital agendaHR Executives are challenged to ensure the right balance between strategic effectiveness of HR and operational efficiency of the functionAs people challenges including cultural development, leadership and collaboration become a critical part of achieving innovation, the Human Capital agenda must evolveA variable and efficient cost model for the HR function with high service levels is required

15. Organizations require many delivery channels to ensure employee and manager access

16. CHROs must be able to demonstrate the link between Human Capital activities and business results

17. The decision to build or buy skills becomes central

18. Retaining key people when facing a shortage of supply is critical

19. Work must transform to shortages

20. Organizations must measure and reward executives and the HR function by how they deliver on the critical talent agenda

21. Developing skills to support growth, innovation, differentiation and customer satisfaction becomes a top priority

22. Collaboration across the company, channels, and citizens is needed to transform workWhat key data should be shared?There is no one magic bulletYou must determine what metrics drive organizational capability given your unique business environment If you are looking for a single metric or data element that is everything your HR Executives need you are missing the markIt is entirely about looking at all the relevant data and getting to those that tell a meaningful story for what you are trying to accomplishHow do get to this?

23. Developing your expertise:Metrics & Analytics enable the transformation

24. Different metrics for different missionsWorkforce EnablementHR ExecutionEmployee DevelopmentWorkforce planning & analytics

25. Talent sourcing, selection & deployment

26. Industry workforce solutions (aging, diversity, immigrants, absence, third party cost mgmt, employee experience, forecasting & scheduling)

27. Time & labour

28. Competency, performance & succession management

29. Role-based transformation

30. Knowledge management & collaboration

31. Human capital / HR strategy and change

32. HR operations and service delivery

33. Process and organization design and improvement

34. Shared services and employee service centers

35. HRIT strategy, systems implementation and upgrades

36. HRBTO and system outsourcing, maintenance and hosting

37. Corporate learning strategy & analytics

38. eContent

39. Business applications and process training

40. Learning technology

41. Business skills training

42. Merger training programs

43. Learning BTO and system outsourcing, maintenance and hostingData is used to spur new innovation and growth (Transformation)Identifies areas of focus, and areas for improvement

44. Workforce Intelligence Architecture“Tie HR to the business”(strategic impact)Business Analytics“Monitor HR performance”(operational effectiveness)HR Metrics“Run the department”(transactional efficiency)Workforce Reporting

45. Using “Workforce Intelligence” as Your Tool This will insure that … Operational reporting is more comprehensive and efficientIndividual application data is integrated You have desktop reporting toolsGraphically-rich information is easily utilized Dashboards are user specific You can measure progress against benchmarks and internal targetsHR practices and investments can be aligned with enterprise goalsRelationships between investment and results can be demonstratedEfficiencyTransactionalEffectivenessOperationalStrategicImpact

46. Do we really measure the HR Value PropositionActual HR Measures (tactical)HeadcountTurnover RatesSuccession CandidatesTime-To-Fill, Train, On-Board, UtilizationTraining HoursCost ReductionsTraining CompletedGrievancesClient Satisfaction SurveysPerformance/Potential RatingsProductivity per employeeBest Practices RecognitionHuman Capital Objectives (strategic)Driven to WinLeadersFlexibleEmbracing RiskSelf DevelopingCreativeFastGlobalEngagedMission Aligned

47. Value Creation Increasingly Dependent on the “Talent” marketMeasure what you needValue Creation StrategySMART ≠ MOTIVATEDEXPERIENCED ≠ PRODUCTIVEAGGRESSIVE ≠ EFFECTIVECHARMING ≠ CONSTRUCTIVEProduct / ServiceFinancialTalentValue Analysis in thisMarket is Critical

48. Change Brings OpportunityA revolution in the way people are valued in the workplace.Instead of treating people as units of cost, measure and maximize their strategic value to the enterprise. ‘Headcount’ gets cut. ‘Infrastructure’ gets attention!From Transactional to StrategicHuman Resources to Human Infrastructure

49. Transition of the HR Functions+Analytics+

50. Business Analytics Understanding how your workforce resources are allocated is what the analytics do for you.Identify top workforce drivers and allocate appropriate investments to drive company success.Align workforce performance with business strategic goals.Focus workforce practices on critical business success levers. Focus is on certifications, qualifications, competency and performance, measure not only performance but potential, maximize investments.

51. So what do we tell to leaders? What the workforce is capable of,What the workforce needs to evolve to,How successful are we executing,Where does $’s spent generate the best results,How should we form teams, Who, when, where,Where & How should work be performed and measured,What & How do we reward & recognize,Which employees are the future and how do we get them what they need to get there.

52. The Balanced ScorecardResultsCustomerProcessesPeopleHere is how it all comes togetherIndividual objectives & appraisals, Aligning people with strategy, TrainingPeopleProcessesMeasures & AnalyticsBehavioursDecisions & actionsExecutionBusiness StrategyReportingOrganizationalConstructsusing strategy to drive deliveryBusiness planning; Risk management; Resource allocation; Project & Programme ManagementSo what does it look like in the real worldNavy Personnel ReadinessIssue: 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) 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)Metrics: gains, promotions, losses, experience levels and gaps Navy IncentivesIssue: 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)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)Metrics: Retention %, Incentive Utilization, Bid levels, Cost Savings

53. Some more examplesNavy Budget ProcessIssue: 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.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)Metrics: Annual and monthly strength, Costs, Readiness levelsUS FBI Strategic PlanningIssue: The FBI recognized the changing nature of crime and trends would require reorganization and realignment. 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 gapsMetrics: annual gains, promotions, losses, experience levels and gaps by scenario

54. Questions

55. Thank YouRussell.Klosk@serco-na.com(240) 778-1233Paul.Thornton@serco-na.com(703) 939-6590