Validating and Promoting HR Strategies with Data and Analytics

© 2014 International Business Machines Corporation

Validating and Promoting HR Strategies with Data and Analytics

Mark T Lawrence

@MTLawrence

25 November, 2014

http://twitter.com/MTLawrence


A History of Digging


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


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


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


Convinced?


What Other Factors Need We Consider?

Technology

Industry Trends

Business Strategies

Strategic Initiatives, Alliances,

Partnerships


The ‘Fact Gap’

https://infogr.am/mtlgartners-fact-gap

https://infogr.am/mtlgartners-fact-gap


So, where do we start…?


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


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


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


Have the “right” conversations

Be Provocative!

Business

Objectives

Data

“The Support Loop”

M T Lawrence


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


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


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


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


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


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


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


“There are three kinds of

lies…”


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’


Use Cases


CASE STUDY 1)Smarter Learning Analytics

CASE STUDY 2)Predicting Attrition

CASE STUDY 3)Social Analytics

<Details removed>


Key THEMESFor The ‘HRBP’

Social Business

Understanding Objectives

Evolving Skillsets

Strategic Importance

Alignment

Results-Driven

Demonstrate Impact!

INVESTMENT&

TECHNOLOGY


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


Thank you


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

https://ibm.biz/newpathvalue

http://www.cipd.co.uk/binaries/megatrends_2013-job-turnover-slowed-down.pdf

http://www.towerswatson.com/en-GB/Insights/IC-Types/Survey-Research-Results/2014/06/2014-hr-service-delivery-and-technology-survey

http://www.ons.gov.uk/ons/taxonomy/index.html?nscl=Labour+Market

http://www.ap-institute.com/


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

http://learningintelligence.blogspot.co.uk/

http://twitter.com/mtlawrence

http://twitter.com/mtlawrence

https://www.linkedin.com/in/marktlawrence

http://about.me/marktlawrence