Download - Driving Hr Transformation With Metrics V7
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Driving Workforce Transformation Through Metrics
Present by:
Russell M. Klosk, MBA, SPHR, GPHR
Paul Thornton, Ph. D.
Your Mission – Our Passion
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Everybody loves Dilbert
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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 Transformation
Are you measuring the right things?
Real world examples
In other words
– Which 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 this
– Understand where your workforce resources should be allocated
– What does it look like
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About Us
Serco
Fortune 500 company with over $6B annual sales
More than 70,000 employees globally
UK Headquartered and operating in 50 countries around the world
US Headquarters in Reston, VA
Over 11,000 US Based skilled and dedicated professionals
Professional service firms offering a full range of Management Consulting services.
We embed metrics into everything we do, both HR metrics and performance metrics.
30+ years corporate experience driving HR Transformation
Russell Klosk, MBA, SPHR, GPHR
Paul Thornton, Ph.D.
We are a leading provider of professional,
technology and management services.
Advise | Design | Integrate | Deliver
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Organizational priorities are changingShift from transactional to strategic
Mission attainment is leadership’s top priority - and innovation is required to enable it
Responsiveness and agility are the new key competencies, requiring innovation across three areas:
– Offerings and services – Operation of core functional areas– Overall enterprise model (especially collaboration)
Operating model innovation 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:
– Culture– Rewards– Integration of process and technology
Source: 456 CEOs, IBM Global CEO Study, 2004765 CEOs, IBM Global CEO Study 2006
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The Question Leaders Aren’t Asking
How 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?
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These priorities shape the new Human Capital agenda
A variable and efficient cost model for the HR function with high service levels is required
Organizations require many delivery channels to ensure employee and manager access
CHROs must be able to demonstrate the link between Human Capital activities and business results
HR Executives are challenged to ensure the right balance between strategic effectiveness of HR and operational efficiency of the function
The decision to build or buy skills becomes central Retaining key people when facing a shortage of
supply is critical Work must transform to shortages Organizations must measure and reward executives
and the HR function by how they deliver on the critical talent agenda
Developing skills to support growth, innovation, differentiation and customer satisfaction becomes a top priority
Collaboration across the company, channels, and citizens is needed to transform work
As people challenges including cultural development, leadership and collaboration become a critical part of achieving innovation, the Human Capital agenda must evolve
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What key data should be shared?
There is no one magic bullet
You 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 mark
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
How do get to this?
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Developing your expertise:Metrics & Analytics enable the
transformation
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Different metrics for different missions
Workforce EnablementHR Execution Employee
Development• Corporate learning
strategy & analytics• eContent• Business applications and
process training• Learning technology• Business skills training• Merger training programs• Learning BTO and system
outsourcing, maintenance and hosting
• Human capital / HR strategy and change
• HR operations and service delivery
• Process and organization design and improvement
• Shared services and employee service centers
• HRIT strategy, systems implementation and upgrades
• HRBTO and system outsourcing, maintenance and hosting
• Workforce planning & analytics• Talent sourcing, selection &
deployment• Industry workforce solutions
(aging, diversity, immigrants, absence, third party cost mgmt, employee experience, forecasting & scheduling)
• Time & labour• Competency, performance &
succession management• Role-based transformation• Knowledge management &
collaboration
Data is used to spur new innovation and growth (Transformation)Identifies areas of focus, and areas for improvement
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Workforce Intelligence Architecture
“Run the department”(transactional efficiency)Workforce Reporting
“Monitor HR performance”(operational effectiveness)HR Metrics
“Tie HR to the business”(strategic impact)Business Analytics
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Using “Workforce Intelligence” as Your Tool
This will insure that …
Operational reporting is more comprehensive and efficient
Individual application data is integrated
You have desktop reporting tools
Graphically-rich information is easily utilized
Dashboards are user specific
You can measure progress against benchmarks and internal targets
HR practices and investments can be aligned with enterprise goals
Relationships between investment and results can be demonstrated
WorkforceReporting
HR Metrics
Business Analytics
Impact
Effectiveness
EfficiencyTransactional
Operational
Strategic
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Do we really measure the HR Value Proposition
Actual HR Measures (tactical)
Headcount
Turnover Rates
Succession Candidates
Time-To-Fill, Train, On-Board, Utilization
Training Hours
Cost Reductions
Training Completed
Grievances
Client Satisfaction Surveys
Performance/Potential Ratings
Productivity per employee
Best Practices Recognition
Driven to WinDriven to Win
FlexibleFlexible Embracing RiskEmbracing Risk
LeadersLeaders
Self DevelopingSelf Developing CreativeCreative
GlobalGlobal FastFast
Human Capital Objectives (strategic)
Mission AlignedMission Aligned EngagedEngaged
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Value Creation Increasingly Dependent on the “Talent” market
FinancialProduct / Service Talent
Value Analysis in this
Market is Critical
SMART ≠ MOTIVATED
EXPERIENCED ≠ PRODUCTIVE
AGGRESSIVE ≠ EFFECTIVE
CHARMING ≠ CONSTRUCTIVE
Measure what you needValue Creation
Strategy
Value Creation Strategy
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From Transactional to StrategicHuman Resources to Human Infrastructure
A 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!
Change Brings Opportunity
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Transition of the HR Functions
Control
Maintaining compliance and
control of management
process
PERSONNEL
Service Delivery
Providing Effective Services
HUMAN RESOURCES
Decision Support
Focus on Improving
Organizational Decisions
Human Infrastructure
+
+
AN
ALY
TIC
S
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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.
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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.
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Individual objectives & appraisals, Aligning people with strategy, Training
• Business planning; Risk management; Resource allocation; Project & Programme Management
Execution
People
Processes
OrganizationalConstructs
ReportingBusiness Strategy
using strategy to drive delivery
Behaviours
Decisions &
actions
Measures &
Analytics
The Balanced Scorecard
People
Results
Processes
Customer
Here is how it all comes together
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So what does it look like in the real world
Navy Personnel Readiness
– 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)
– 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 Incentives
– 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)
– 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
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Some more examples
Navy Budget Process
– 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.
– 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 levels
US FBI Strategic Planning
– Issue: 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 gaps
– Metrics: annual gains, promotions, losses, experience levels and gaps by scenario
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Questions
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Thank You
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(703) 939-6590