validating and promoting hr strategies with data and analytics
TRANSCRIPT
© 2014 International Business Machines Corporation
Validating and Promoting HR Strategies with Data and Analytics
Mark T Lawrence
@MTLawrence
25 November, 2014
© 2014 International Business Machines Corporation
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
© 2014 International Business Machines Corporation
The Importance Of Strategic HR Planning
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
Products / services innovation
Human capital
Customer relationships
Brand(s)
Business model innovationTechnology
71%
66%
52%
43%
33%
30%
Human capital is the leading cited source of economic value...
...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
© 2014 International Business Machines Corporation
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
© 2014 International Business Machines Corporation
What Other Factors Need We Consider?
Technology
Industry Trends
Business Strategies
Strategic Initiatives, Alliances,
Partnerships
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The ‘Fact Gap’
https://infogr.am/mtlgartners-fact-gap
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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
valueTechnology
© 2014 International Business Machines Corporation
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
© 2014 International Business Machines Corporation
HR
Payroll
Capacity Planning
Recruitment
Development
Performance Management
etc.
Spot The HR Business Partner?
Resource Deployment
Learning
Marketing
Sales
X
X
X
Marketing
@MTLawrenceCMO coming out on top as emergent powerful force, but #HR has worst reported relationship with Marketing #HNCIOSurvey 7:13pm – 23 Oct 14
X
© 2014 International Business Machines Corporation
Have the “right” conversations
Be Provocative!
Business
Objectives
Data
“The Support Loop”
M T Lawrence
© 2014 International Business Machines Corporation
Organizational Obstacles, Not Data or Financial
Concerns, are Holding Back Adoption
Ability to get the data
Lack of management bandwidth due to competing priorities
Lack of skills internally in the line of business
Lack of understanding how to use analytics to improve the business
Culture does not encourage sharing information
Ownership of the data is unclear or governance is ineffective
Lack of executive sponsorship
Concerns with the dataPerceived costs outweigh the projected
benefitsNo case for change
38%
34%
28%
24%
23%
23%
22%
21%
21%
15%
Primary obstacles to widespread analytics adoption
Organizational
Data
Financial
X X
© 2014 International Business Machines Corporation
Differentiate
Workday
SuccessFactors
Kenexa
Taleo
Saba, etc, etc, etc…
Technology
“HR technology spending continues to be strong,
in spite of cost reductions in other parts of organisations”(Towers Watson, 2014)
Visualisation by M T Lawrence
© 2014 International Business Machines Corporation
Differentiate
Workday
SuccessFactors (SAP)
Kenexa (IBM)
Taleo (Oracle)
Saba, etc, etc, etc…
Technology
“HR technology spending continues to be strong,
in spite of cost reductions in other parts of organisations”(Towers Watson, 2014)
Visualisation by M T Lawrence
© 2014 International Business Machines Corporation
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
© 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
© 2014 International Business Machines Corporation
IBM’s Workforce Analytics TeamE
nte
rpri
se-w
ide
Re
po
rtin
g
Pre
dic
tive
An
aly
tics
Inte
rna
l S
urv
eys
Exte
rna
l An
aly
tics
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
Purpose:
To embed a culture of analytics within the HR organization
So
cia
l An
aly
tics
© 2014 International Business Machines Corporation
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
© 2014 International Business Machines Corporation
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’
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CASE STUDY 1)Smarter Learning Analytics
CASE STUDY 2)Predicting Attrition
CASE STUDY 3)Social Analytics
<Details removed>
© 2014 International Business Machines Corporation
Key THEMESFor The ‘HRBP’
Social Business
Understanding Objectives
Evolving Skillsets
Strategic Importance
Alignment
Results-Driven
Demonstrate Impact!
INVESTMENT&
TECHNOLOGY
© 2014 International Business Machines Corporation
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
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
Continuing the discussion
On a range of topics, including:
Blog http://learningintelligence.blogspot.co.uk/
Academic interest [email protected]
Advice!Mark T Lawrence can be reached via:
Email [email protected]
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