Making Analytics Practical for Every Leader in Your ...smdhr.com/wp-content/uploads/2017/08/Making-Analytics-Practical... · Making Analytics Practical for Every Leader in Your Organization

Making Analytics Practical for Every Leader in Your Organization

Presented by:

Hannah Spell, Ph.D.

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Work Group Speakers

Scott Mondore, PhDManaging Partner

Hannah Spell, PhDDirector of Research and Analytics

Shane Douthitt, PhDManaging Partner

Matt Betts, PhDConsultant

SMD OVERVIEW: Driving Business Results Through Surveys & Assessments

OU

R T

EC

HN

OLO

GY Analytics Based:

Links People to Critical Business Outcomes through:

• Employee Surveys

• 360 Feedback

• On-boarding & Exit Surveys

• Selection Assessment

• Competency Modeling

OU

R P

RO

CESS 4 Steps:

• Prioritization of Key Business Drivers

• Selection of Improvement Areas

• Customized Action Items

• Business-Focused Action Plans

YO

UR

BO

TTO

M-L

INE Common Outcomes:

• Operations Metrics

• Financial Metrics

• Customer Satisfaction

• Patient Satisfaction

• Turnover / Retention

• Whatever is most critical to your bottom-line

Participating Organizations

Presentations & Presenter

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Hannah Spell, Ph.D.Director of Research and Analytics

[email protected]://smdhr.com/leadershipteam.html

https://www.linkedin.com/pub/hannah-spell/11/692/872

Learning Objectives

Define the goals of analytics

How to keep analytics simple and practical

How to cascade algorithms to front-line managers

Guide managers on what to do

THE GOALS OF ANALYTICS

KEEP IT SIMPLE AND PRACTICAL

CASCADE IT DOWN

PROVIDE GUIDANCE

Goal and Definition of HR Analytics

• Ultimate Goal – Leverage people insights to inform changes to organizational policies/procedures to better align with company goals

• Simply Defined –The analysis and application of a company’s people data– Often involves multiple sources of data (some of which come from non-

traditional HR sources)

– Includes both primary as well as secondary data collection strategies

• Implications – Can impact broad spectrum of HR (and organizational) activities

• Turnover analysis

• ROI and Cost calculation

• Reporting• Data

Management• Compensation• Training

• Competency models

• Predictive talent profiles

• Succession Planning

• Performance Assessment

• Training effectiveness

• Survey development and analysis

• Targeted assessments

• New Hire, Onboarding, Exit Surveys

• Climate Assessment

• Change Readiness Assessment

HR ANALYTICS

Talent Management

HR Operations

Employee Experience

Recruiting & Selection

• Target Candidates

• Selection Assessment Development and Analysis

• Role Play, Work Sample, Behavioral Interview, Knowledge Assessment Development and Weighting

• Hiring Algorithms

Why Analytics?

• HR Analytics connect employee data to business outcomes

• HR Analytics prioritize where and how much to invest

• HR Analytics calculate impact/ROI from people investments

Analytics Business ResultsPeople Investments

The Opportunity – HR Analytics

• Discover the attitudes, competencies, skills, experiences, etc. that drive business results

• Make people investments based on drivers of results

• Take the lead in making HR processes business-focused

• Build a business case based on ROI

• Become viewed as a strategic partner that drives business results

Prioritization

• The key take away from any analytic project should be prioritization for follow-up

• Analysis paralysis is common – make sure you are doing analytics with a purpose

• Don’t get bogged down in information overload

• There will always be more analysis you can do, more ways to cut your data…determine what is needed and useful

Analysis Goals

Connect the dots between people and business results – don’t just assume

Uncover actionable insights

Determine a priority for follow-up

Generate strategic plans – direct resources to the priorities

THE GOALS OF ANALYTICS

KEEP IT SIMPLE AND PRACTICAL

CASCADE IT DOWN

PROVIDE GUIDANCE

Complex Methods – Simple Insights

Make sure the methods are stringent and appropriate to accurately answer the question

Keep the methodology behind the scenes

Only share the key take-aways

Focus on the “So What”

• Leaders at any level rarely need to know all the details

• Provide a high-level description of what was done, details only if requested

• Craft the story:

• What you did

• What you found

• Why it matters

Case Study 1 – Link to Bottom-line Metrics

• Linked employee survey to critical business outcomes: – Employee commitment (precursor to turnover)– Actual historical turnover rates– ROI metrics (budget to profit ratios)– Customer satisfaction scores

• Allowed the organization to: – prioritize around key topic areas, – provide manager specific scores on these key drivers, – direct follow up and action planning to address these critical areas of the

employee experience in order to positively impact the outcomes above

Key Drivers of Business Outcomes

What is a HeatMap?

• A graphical plot that shows the impact of employees’ attitudes on key outcomes. Example key outcomes - Turnover and Customer Satisfaction.

• Allows leaders to identify attitudes that are key drivers of results and prioritize improvement efforts in these areas.

Perf

orm

an

ce

(A

vera

ge R

ati

ng

)

Level of Impact

Maintain Promote

Monitor Focus

HeatMap Interpretation

1. Focus: Low Performing | Key Driver

2. Monitor: Low Performing | Not Key Driver

3. Promote: High Performing | Key Driver

4. Maintain: High Performing | Not Key Driver

Key Drivers of Commitment, Turnover, Branch ROI, YTD NBT, & Customer Satisfaction

Focus on these five Key Drivers for

Action Planning across the

organization

Case Study 2 – Understanding Turnover

• Linked survey scores to whether or not an employee had voluntarily left the organization six months after close of survey

• Using analytic models, determined which employee experiences had a significant impact on whether an employee exited the organization

• Able to identify key drivers of voluntary turnover as well as locate work units across the organization where current employees were low scoring on these key drivers

Mean Differences Between Still Employed and Turned Over Employees

Category Still Employed Voluntary Terms Difference

Accountability 3.56 3.36 -0.20

Career Development 3.77 3.51 -0.26

Compensation 3.24 2.99 -0.25

Customer Focus 3.66 3.41 -0.25

Engagement 3.91 3.48 -0.43

Job Fit 4.30 4.08 -0.22

Management 4.02 3.77 -0.25

Quality 4.12 3.91 -0.21

Senior Management 3.72 3.46 -0.26

Teamwork 4.21 4.08 -0.13

Work-Life Balance 3.97 3.68 -0.29

Organization-wide: Key Drivers of Employee Turnover

Turnover

Job Fit

Management

Work-Life Balance

Compensation

Drivers are in order of strength of statistical relationship with Turnover

Customer Focus

Organization-wide: Item-level Drivers of Turnover

*Items are in order of strength of statistical relationship with Turnover

Priority* Category Item

1 Job Fit I like the work I do.

2 Management I am involved in decisions that affect my work.

3 Job Fit My job makes good use of my skills and abilities.

4 Work-Life BalanceI have the flexibility I need to balance my work and personal life.

5 Customer FocusMy facility demonstrates a commitment to improving overall customer experience (e.g., patients, employees, physicians, and visitors).

6 Customer Focus My work unit is adequately staffed.

7 CompensationMy pay is competitive with similar jobs I might find elsewhere.

THE GOALS OF ANALYTICS

KEEP IT SIMPLE AND PRACTICAL

CASCADE IT DOWN

PROVIDE GUIDANCE

Make it Relevant

Give leaders the information that impacts them,

and tell them why it matters – the “so what”

– Used analytics to set the focus and priority for the organization

– Now, push it down to managers in a way that makes sense to them

– Targeted Focus and Action Planning strategies

– Some Examples…

Case Study 2: Calculate where each Manager Stands:

• With the survey scores of the employees that are still employed, create a proactive turnover scorecard to identify work units with low scores on key drivers of turnover

• Managers are now equipped with information on where there is likely future turnover and can get in front of it knowing where to focus

Seeing the ROI

• Using this analytic approach to understanding turnover, the organization was able to strategically focus on measures to mitigate voluntary turnover

• Effectively reduced their turnover rate by 24-28% across the organization

• This equated to a savings of $8 Million over a one-year period

Focus For Development

Impact (from analytics) + Performance (360 assessment)

• Plan development investments where a manager is lower on competencies that impact performance

Note – * Indicates a key driver

Job Family

Proficiency

Level

Follow

Up*

Communi-

cation*

Situational

Judge.

Collabor-

ation*

Drives for

Results*

Sales &

Value

Position.

Opportunity

Ident.

Opportunity

Mgmt.

Consultative

Convers.*

Relationship

Dev.*

Demand

Creation*

Industry

Expertise*

Expert

Advanced

Proficient

Foundational

Relationship Building Professional Services Selling

Sale

s

Exec

uti

ve

Understand the Impact & Map to Performance

Collaboration

Communication

Consultative Conversations

Drives for Results

Follow Up

Industry Expertise

Opportunity Identification

Demand Creation

Opportunity Management

Sales and Value Positioning

Situational Judgment

Relationship Development

5.3

5.5

5.7

5.9

6.1

6.3

6.5

0.0 0.1 0.2 0.3

Pe

rfo

rman

ce

(Ave

rage

Rat

ing)

Level of Impact on Overall Sales Outcomes(Higher numbers indicate a stronger impact based on a 0.0 to 1.0 scale)

Behavior Key Drivers of Sales Outcomes (Win Ratio, Sales Attainment, Sales Size)

Maintain Promote

FocusMonitor

Sales Executives that had an overall mean rating of 6.00 out of 7.00 or greater on the 8 critical competencies outperformed their peers by: • +78% Sales Goal Attainment; • +$10,000 Average Win Size; • +10.0% Win Rate

THE GOALS OF ANALYTICS

KEEP IT SIMPLE AND PRACTICAL

CASCADE IT DOWN

PROVIDE GUIDANCE

Guide Managers through Follow-up

• Don't make managers draw their own conclusions or work through lots of data

• Don’t assume all managers know what to do next

• Provide targeted priorities and resources for them to easily and quickly take action

Key Drivers of Business Outcomes

What is a HeatMap?

• A graphical plot that shows the impact of employees’ attitudes on key outcomes. Example key outcomes - Turnover and Customer Satisfaction.

• Allows leaders to identify attitudes that are key drivers of results and prioritize improvement efforts in these areas.

Perf

orm

an

ce

(A

vera

ge R

ati

ng

)

Level of Impact

Maintain Promote

Monitor Focus

HeatMap Interpretation

1. Focus: Low Performing | Key Driver

2. Monitor: Low Performing | Not Key Driver

3. Promote: High Performing | Key Driver

4. Maintain: High Performing | Not Key Driver

An Example: SMD Link HeatMap

Focus Areas for Action Planning

Select Possible Action Items

Action Planning

Why Action Planning Matters

Leaders with the most improvement in business outcomes and survey scores did four things in particular:

1. Included Focus/Promote areas in action plans (92%)

2. Added their own action items and/or customized SMD’s tips (74%)

3. Had their action plan reviewed/approved by their managers (67% )

4. Updated the plan throughout the year (60% )

Doing this on Your Own

If you don’t have technology or resources to automate…

• Align LMS courses with focus areas

• Build guidance resources to distribute (Action Tips in excel)

• Host Action Planning Meetings with managers to help them get started

Prepare Managers

• Don’t assume managers know how to have conversations with staff to help with Action Planning

• Train Managers how to ask the right questions and gain insights

– Keep conversations behavior focused

– Involve staff in solution development

Practical Tips

• We have to change our mindset and approach:

– Move from reporting HR-focused metrics to identifying the drivers of business results

• Focus on Predictive Analytics that are linked to business outcomes

• The analytics are complicated – but the story that emerges has to be simple

– Boil the story down to critical drivers and priorities

– Improve x (people measure) & y (people measure) and z (business outcome) will improve

• Start with one project and try it out before jumping all the way in. Ask yourself:

– Can I articulate why this really matters to the business?

– Can I articulate the business value of moving this number?

– Why would senior and front-line leaders care about this metric?

Recommendations

• Have a measurement strategy – it can’t be to just measure more often

• Harvest the intelligence from the data you already have, before investing in more data

• Think about what you will do with the data to drive results

• Define the business problem first and then identify potential data sources that will likely provide intelligence

• Show the impact of the measurement process (ROI) and leaders will champion HR measurement…not question it

Questions and Comments

• Please use the chat function to submit a question

• Recorded meeting and PPT deck will be posted to the HR Analytics Work Group website

• On HR Analytics Work Group LinkedIn page you can ask the group and speakers additional questions after the meeting

Next Meeting

Calculating ROI

Presented by Scott Mondore, PhD

August 23rd at 1:00pm EST

Add to your calendar

click here

Let’s get in touch:

Hannah SpellDirector of Research & Analytics

[email protected]

smdhr.com