FROM THE GROUND UP:JOHNSON CONTROLS LAUNCHES EFFORTS TO BUILD AWORLD CLASS WORKFORCE ANALYTICS CAPABILITY

CONFIDENTIALThis presentation contains proprietary methodologies and tools that remain the property of Mercer.© 2014, Mercer

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Today’s Presenters

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Karen PiercyPartner, HR EffectivenessMercerkaren.piercy@mercer.com

Wendy HirschExecutive Director - Workforce Analytics,Johnson Controls, Inc.wendy.l.hirsch@jci.com

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Agenda

• Introduction

• Why Workforce Analytics and Planning?

• Case Study: Johnson Controls

• Establishing a Workforce Analytics & Planning Center of Expertise (COE)

• Closing Thoughts

• Q&A

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WHY WORKFORCE ANALYTICS & PLANNING?

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Workforce Analytics and Planning is Becoming Increasingly ImportantEspecially as business challenges increase the need for robustworkforce information and insight:

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1. Growth and expansion plans.

2. Changes in product mix and go-to-market strategies.

3. Continued quest for profitimprovement and operationalefficiencies.

4. Scarcities in external talentpools.

5. Internal pipelines are inefficient.

The biggestgrowth area in HR

technologies isworkforce analytics,from 14% to 46% in

the next 3 yearsSource: CedarCrestone's 2013-

2014 Outlook Report

Hottest Jobs for2014:

Head of HRAnalytics, secondonly to the CHRO

positionSource: CT Partners 19th

annual executive jobsforecast

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Next Generation HR Service Delivery ModelCompanies that implement this model are more:

• Strategic.

• Guided by metrics and analytics.

• Flawless in executing the fundamentals.

• Effective in supporting line managers.

• Cost-effective.

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HRBusinessPartners

HRCenters ofExpertiseHR

LeadershipTIER 0

TIER 1

TIER 2

HR CaseManager

HR GeographyManager

HRIS

HR SharedServices

Strategic HR

Operational HR

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A Workforce Analytics & Planning Center of ExpertisePlays a primarily strategic role within the HR function

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TotalRewards

TalentDevelopment

TalentAcquisition

WorkforceAnalytics &Planning

EmployeeRelations

• Strategic workforce planning modeling andforecasting for critical workforce segments.

• Standard and ad hoc reporting on strategicworkforce planning outcomes.

• Routine reporting of key workforce analytics &planning via scorecards and dashboards.

• Ad hoc workforce analytics to address the rootcause of workforce issues.

• Strategic workforce planning modeling andforecasting for critical workforce segments.

• Standard and ad hoc reporting on strategicworkforce planning outcomes.

• Routine reporting of key workforce analytics &planning via scorecards and dashboards.

• Ad hoc workforce analytics to address the rootcause of workforce issues.

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Shared Ownership of the Process is Good Practice

BusinessLeaders

HRBP

WorkforceAnalytics & Planning COE

StrategicGuidance

Process Framework,Tools, Data and Analytics

ProcessFacilitation

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CASE STUDY: JOHNSON CONTROLS

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Johnson Controls

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Automotive Experience

A global leader inautomotive seating,overhead systems, doorand instrument panels,and interior electronics.

Power Solutions

Global leader in lead-acidautomotive batteries andadvanced batteries forStart-Stop, hybrid andelectric vehicles.

Building Efficiency

A leading provider ofequipment, controls andservices for heating,ventilating, air-conditioning, refrigeration,and security systems forbuildings.

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Johnson Controls

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Current State: Move from “I think” to “I know”

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Current State: Business Unit Leaders Needs/Wants

• Most leaders expressed a basic need for workforce profile and theability to “drill into” and “filter” the data

• Each business unit has their own HR scorecard and/or metrics….eachhas a different look and feel….but there are some commonalities– Headcount (overall, by level, by gender)– Retention/Terminations– Hires/Promotions

• The challenge is that . . .– leaders struggle with how to interpret what they’re getting– there is too much information reported– the metrics and data are not displayed in a way that helps ease

interpretation (“so what?”)

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A “Congruence” Model for Success of the Workforce AnalyticsCOE

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BusinessNeeds &

Vision

CurrentState

ProjectOptimus

Strategy

DesiredState

OperatingModel

BusinessPerformance

Data-DrivenDecisionMaking

Actions

INPUTS OUTPUTS

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Aim for High Quality – But Practical – Workforce Analytics

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• Rely on facts; respect institutionalknowledge

• Timeliness vs. completeness ofdata

• Open actions regarding datacollection, analysis and results

• Gather stakeholder input

• Reporting and analytic governance

• Well-established analyticalpractices

• Ensure processes are scalable,repeatable

• Develop partnerships with finance,legal, etc.

• Build skills and competencieswithin HR

• Drive performance by linkingpeople programs and initiatives toworkforce outcomes and businessresults

• Standardize how workforce datais used to drive day-to-day peopledecisions

• Create an evidence-based culturethat endorses analytics at thehighest levels and gives leadersthe support they need to testhypotheses to address realworkforce and organizationalpriorities

VA L U E SM I S S I O N V I S I O N

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Collaboration &Support

Strategic Purpose and Core Responsibilities

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Enterprise HROperations

Provides administrativeand transaction supportallowing for betterutilization of WorkforceAnalytics COE to achievefaster and morestreamlined delivery

HR BP Organization

Partner to drivedevelopment of metricsrequirements

Engage BusinessLeaders in interpretingworkforce data and metrics

Drive appropriate actionsto address workforceneeds based on data

WorkforceAnalytics

COE

Note: Collaboration, integration and support relationships with other COEs not shown

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Structure of the Workforce Analytics COE

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WorkforceAnalytics

Leader

BEAE - S

VPGlobal Employee

Relations

GWS PS CorpAE – E&I

Workforce Analytics Specialists

Comp COE EE Rels COE Diversity COETalent COE

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FY14 Priorities and Milestones

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S O N D J F M A M J J A S O N D

Define Workforce Analytics (WA) COE

Hire and on-board WA Managers/Analysts

Create Workforce Analytics Champions in each BU and COE

Develop and socialize WA strategy and future vision (fully implemented FY15)

Establish partnerships with HRBPs, BUs and CoEs

Disseminate 3-4 workforce metrics

Launch pilot demonstration project (e.g., on diversity)

Complete metrics inventory

Agree upon terminology

Agree up on roles

Drive businessperformance andcompetitive advantageby linking peopleprograms and initiativesto workforce outcomesand business results

Provide a mechanismfor standardizing howworkforce data is usedto drive day-to-daypeople decisions andstrategies

20142013

Strategic Purpose

Build skills andcompetencies withinHR to delivercompelling workforceintelligence

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Outline Relationships and AccountabilitiesBU Leadership and HR BPs partner to discuss key people issues –requests for data, reports or analysis are then made to 1 of 3 groups

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BU Leadership• Communicate

business needs andstrategy

• Share key peoplechallenges

HR Business Partners• Understand business

needs and strategy

• Assess peopleimplications ofbusiness strategy

EHRO• Provide/distribute reports

• Triage ad hoc data inquires

• Provide data (if self-service isnot available)

HR ADM• Design, write and build

reports

• Write and build data queries

Workforce Analytics COE• Assist in interpretation of

metrics/analysis

• Conduct advanced analysesto answer critical peoplequestions (e.g., Why? )

Requests for data, reports or analysis

BU Leadership and HR BPs partner together to discuss key people issues

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Outline Relationships and AccountabilitiesDesired State Operating Model – Advanced Analytics

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BusinessLeaders

HR BP

WorkforceAnalyticsCOE

HR ADM

EHRO

Implementsolutionsin partnershipwith appropriateHR COEs

Verify the dataand conductanalysis

• Understandbusinessobjectives

• Ascertainpeopleimplications

• Identify peoplequestion(s) tobe addressed

• Generatehypotheses

• Scope outbusiness logic

• Discussanalyticapproachoptions

• Determine dataneeded

Provide data(if self service is

not available

Write/build query

• Review resultsw/HRBP

• Decide oncourse ofaction(s)

• Review andinterpretresults

• Determine“the story” inthe analysis

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Future State: Ability to Drive Data-Driven People Decisions

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ESTABLISHING A WORKFORCE ANALYTICS ANDPLANNING COE

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Maturity Of Workforce Analytics & Planning COEsThere are different levels of maturity in a COE

Level 1Budget-drivenheadcount planning

Stra

tegi

c

Impact: Business Performance

• Centralize human capital data reporting• Include data in monthly HR reporting• Leverage HRIS and spreadsheet templates

• Build COE infrastructure• Hire a few, key resources• Create processes, tools and templates• Identify specialized technology and build business case• Push static dashboards with key analytics

• Implement technology• Provide interactive dashboards and planning tools• Hire for advanced skills/capabilities• Refine processes and templates

• Fully staffed COE• Continuously refine workforce

planning processes• Real-time sharing of analytics and

planning output• Robust technology

Ope

ratio

nal

Level 2Workforce analysis anddashboards

Level 3Strategic workforceplanning

Level 4Human capitalorganization

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Workforce Analytics & Planning COE:Operating Model Framework

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Process Technology

Talent Organization

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Workforce Analytics & Planning COE:Process

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Process Technology

Talent Organization

Analytics: enables the WorkforceAnalytics & Planning COE to delivercritical human capital measures to theorganization, supporting evidence-baseddecisions.

Planning: Workforce planning is thecentral process for a mature COE.

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Workforce Analytics & Planning COE:Technology – use the technology that fits where you are now

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Process Technology

Talent Organization

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Workforce Analytics & Planning COE:Operating Model Framework - Organization

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Process Technology

Talent Organization Foundational: Few key resources

Advanced:• COE leader• Workforce analytics & planning

specialist(s)• Data integration specialist• Technical resource

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Workforce Analytics & Planning COE:Talent

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Process Technology

Talent OrganizationLeadership competencies

Partnering competencies

Work-enabling competencies

Functional technical competencies

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Workforce Analytics & Planning COE:Talent

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Leadership Competencies

• Business acumen• Coaches and develops others• Creates strategy• Drives performance

Partnering Competencies

• Collaborates with others• Counsel and advice• Customer focus

Work-Enabling Competencies

• Adaptability• Communication• Cultural sensitivity• Mental agility

Functional Technical Competencies

• HR measurement and evaluation• HR/business intelligence

• HR technology comprehension

• HR technology utilization and dataintegration

Talent

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• Prioritize work so that day-to-day queries don’tdrive out longer-term strategic activities

• Ensure the right emphasis on sophisticatedanalysis and on joining multiple data sources

• Eliminate data credibility concerns• Ensure that the business owns

workforce planning efforts

• Ensure data integrity throughoutall systems

• Develop systems and tools with afull understanding of all businessrequirements

Pitfalls for a Workforce Analytics & Planning COEYou’re in trouble if you don’t…

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Process Technology

• Ensure that expertise resides inmore than one or two experts

• Get comfortable talking about HRin terms of testing and evidence

• Ensure HR has the skills to selectdata and perform analyses

• Provide training to ensure users have theknowledge to interpret the information

Talent

• Ensure the function is adequatelystaffed

• Leverage change managementstrategies to adopt an evidence-based culture that permeates fromexecutives to employees

• Provide incentives for sharing dataacross functions

Organization

• Develop systems and tools to manage data frommultiple countries

• Ensure HR can access all required data

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What’s Coming Up NextWorkforce analytics webcasts, workshops, and data

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www.mercer.com/mercer-workshopsLondonNew YorkManilaPerth

Webcast Serieswww.mercer.com/webcastseries• Cameco• Experian• John Deere• UMass Memorial Health Care• Johnson Controls• Diversity & Analytics• Mobility & Analytics

Mercer’s Workforce MetricsBenchmark Reportswww.imercer.com/wmrs• Workforce composition and

retention metrics• 66 countries• 6,000+ participants• Regional and custom editions

available

JakartaSingaporeZurich

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Questions and Answers

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QUESTIONS

To submit a question use the floating panel, on the top of yourscreen, and click the Q&A button.

CLICK HERE TO ASK A QUESTIONTO “ALL PANELISTS”

FEEDBACK

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Karen PiercyPartner, HR EffectivenessMercerkaren.piercy@mercer.com

Wendy HirschExecutive Director - Workforce Analytics,Johnson Controls, Inc.wendy.l.hirsch@jci.com

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Biography – Karen Piercy

• Karen Piercy is a partner in Mercer’s Talent business and is located in the Philadelphia office.Her areas of expertise include HR transformation, HR function and technology assessment, HRstrategy, organization and role design, governance, sourcing strategies, process reengineering,and project and change management.

• Karen has been with Mercer for 25 years. She has served clients in professional and financialservices, energy, technology, health care, retail, consumer products, manufacturing anddistribution, and public sector industries.

• Karen began her Mercer career as a performance & rewards consultant, designing salaryprograms and performance management systems. Before joining Mercer, she worked forseveral years for the government of Washington, DC in labor relations and collectivebargaining. She holds a bachelor’s of arts in economics and business from Lafayette Collegeand a master’s in business administration in human resource management from the Universityof Pittsburgh’s Joseph M. Katz Graduate School of Business. Karen has published numerousarticles on HR transformation and speaks and is quoted frequently on HR-effectiveness relatedissues.

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Biography – Wendy L. Hirsch, PhD

• Wendy Hirsch is the Executive Director of Workforce Analytics at Johnson Controls. She is responsible forthe design and implementation of Johnson Controls’ global workforce analytics strategy and program,overseeing all aspects of workforce analytics across the enterprise and providing accountability andoversight to Workforce Analytics Specialists.

• Prior to Johnson Controls, Wendy spent 15 years with Mercer’s Global Workforce Analytics and PlanningCenter of Expertise. At Mercer, Wendy led strategic workforce analytics initiatives for organizations acrossvarious industries. She led the development and launch of Mercer Analytics (Mercer’s data and analyticsSaaS platform) as well as Mercer’s Workforce Analytics and Planning Workshop series. Using data andanalytics, she has helped many organizations improve bottom line results through a focus on human capitalstrategy and measurement, workforce planning, attraction and retention, talent management, pay equity anddiversity.

• Prior to Mercer, Wendy was an Associate Behavioral Scientist at RAND Corporation where she conductedcareer path modeling for the Air Force and evaluated organizational change efforts in several health careorganizations.

• Wendy holds a bachelor’s degree in Psychology from the University of Michigan, a master’s degree inIndustrial/Organizational Psychology from Rice University, and a Ph.D. in Industrial/OrganizationalPsychology from the University of Illinois at Urbana-Champaign.

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