Talent Intelligence: Using Measurement to Better Manage the Workforce and HR - IHRIM Affinity Group

Talent IntelligenceUsing Measurement to Better Manage

the Workforce and HRMarch 19, 2009

Mike BrennanPrincipal ConsultantKnowledge Infusion

2Knowledge Infusion Proprietary and Confidential, Copyright 2009

About Knowledge Infusion

Total Employees

Nordstrom, MetLife, Yahoo!, Turner Broadcasting, Intuit, Safeway, Luxottica, Health Net, AAA, Target, US Postal

Notable Customers

HCM and talent management, portals and self-service, performance, succession, recruitment, learning & development, talent/workforce planning, analytics, collaborative technologies

Areas of Expertise

Over 200Number of Customers

Fortune 2000, Mid-market, Public SectorTarget Markets

Minneapolis, MN; Offices throughout USHeadquarters & Offices

Founded in 2004 by Jason Averbook and Heidi Spirgi Leader in HCM and talent management consulting and advisory services

History

Approximately 35, Across North America


Agenda

•HR’s Role in Decision Support

•Talent Intelligence: Better Management of the Workforce and HR


HR’S ROLE IN DECISION SUPPORT





"Think, Blink or Sleep on It? The Impact of Modes of Thought on Complex Decision Making," University of New South Wales and the University of Essex in England, 2008



• Long-term Goals

• grow mindshare/walletshare

• enter new markets

• improve operational efficiencies

• Role of Talent

• provide products

• execute

• develop and position for growth

• innovate new products and services

• grow new markets

Planning for the Long-TermSurviving in the Short-term

• Short-term Goals

• cut costs

• Role of Talent

• provide products

• execute

• focus on efficiency

2009 HR NeedsBalance of People Management with Lower Cost-to-Ser ve

What is the role of talent in supporting both short-term and long-term business goals?


Key Statistics from New EIU Study(% Who Agree)

N = 484 Senior HR and Non-HR ExecutivesSource: Economist Intelligence Unit, StepStone, 2009

36%

42%

47%

53%

59%

0% 10% 20% 30% 40% 50% 60% 70%

Redeployment of talent will be important part of recruiting strategy over next 3 years

Expect the organization will actively target employees made redundant elsewhere

Will improve training and development in the next 12 months to retain employees

Becoming increasingly difficult to recruit and retain talented employees

Slowdown presents an opportunity to streamline by eliminating reduncancy


Metrics Not Heavily Utilized

49%

40%

35%

0% 10% 20% 30% 40% 50% 60%

Metrics are used to provide input into strategic workforce planning decisions

The organization accurately forecasts the demand for labor (size and skills) over

various time periods

Metrics exist to measure and model effective workforce management and

deployment decisions

Source: Integrated Talent Management, Part 1 - Understanding the Opportunities for Success, IBM, HCI, 2008


Why Doesn’t HR Measure?

• “We are not very sophisticated, with no regular metrics in place. And I don’t think the staff would know what to do with metrics [if they had them].”• Talent Management Director

• “In terms of tracking metrics, we don’t do well at all. It’s ad hoc, manual and burdensome. We have several systems. No two of them are integrated.”• HRIT Director

• “We need better metrics, particularly for ID’ing & retaining Hi-Po’s.” • Manager of Leadership and Succession


TALENT INTELLIGENCE & ON-THE-MONEY METRICS


The management of workforce and business information to drive better business decisions in support of organizational goals.

Defining Talent Intelligence


What is a MEASURE? A METRIC? ANALYTIC? KPI?

• Measure : Single data point indicating the timing or order of magnitude of a transaction or process. • Example: Date of hire

• Metric : Meaningful information, derived from data, that answers a basic question about a process(s) or event(s) • Example: Number of new hires in 2008

• Analytic : Actionable information that enables business leaders to arrive at a realistic and/ or optimal decision based on relationships among metrics and/or measures • Example: Total cost of undesirable turnover amongst the class of 2008


Intelligence Framework: Types of Metrics & Analytic s

HR Strategic Pillars & KPIs

People Departmental

Metrics

Corporate Scorecard

Examples: - Time-to-Hire

- HR-Staff -per-FTE- Training Hours -per-FTE

- % On-Time Perf Reviews

- HR Cost Revenue Percentage

Examples:- Attraction

- Retention - Bench Strength

- Mobility

- Diversity

Examples:- Dollars Booked

- # of Deals Assigned

- Customer Service - # of Errors / 1,000- Average Issue Resolution Time

HR Operations

Talent Management Effectiveness

Workforce & Organizational Performance

Analytics

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.Joint AccountabilityHR Stakeholders Accountable Non-HR Stakeholders Accountable

Data


Analytics that Span Categories

• Dollars booked per advisor

• Impact of billable utilization rate on company profitability

• Cost per vacancy

• New-hire time-to-productivity

• Revenue per total workforce spend

• Level 3 and Level 4 training analytics

• Total cost of ‘Hi-Po / Hi-Per’ voluntary turnover


Application: Metrics & Analytics in Tough Times

Question Examples of Data, Metrics & Analytics

Where can we afford to reduce staff levels?

E.g., Headcount, total compensation, cost of voluntary turnover packages, productivity measures

Where can we NOT afford to reduce staff levels?

E.g., Employee productivity, skills & competencies data, average manager span of control, average total compensation across geographies, position vacancy rate in ‘key’ or ‘critical’ roles

How do we ensure the organization is able to thrive when the economy recovers? Who will lead us?

E.g., percentage of promotable employees in key talent pools, relative compensation, flight risk,development plans, development actions and Kirkpatrick measures


People, Process and Technology

20

40 – 40 - 2040 – 40 - 20PEOPLE

PROCESS

TECHNOLOGY


Know Who and What You Have

• Obtain visibility into talent that exists within the enterprise

• HIPOs, Leaders, Top Performers

• Knowledge, skills, abilities, interests

• Standardize talent review processes

• Ask:

• Do we have the talent we need?

• Can we mobilize it?

• Can we develop it?

In turbulent times more than any other, there is not only the opportunity, but the need for HR to provide leadership to the business. The ability to attract and retain workers when times are tough really requires leaders to be at their best.

Dave Gartenberg, HR Director at Microsoft UK


Case Study: Inventorying Internal Talent Supply

• Global Property & Casualty Insurer transitioning from COE to Geo org structure

• Goal: Inventory talent and enable global mobility

• Skills, knowledge, prior experience/jobs, career preferences, relo preferences, languages

• Leveraging core HR system and pieces of Talent Management suite

• HR and managers able to access data on internal talent, support business decisions

• Building on success with mobility to better manage talent in terms of development and retention


Single View of the Employee/Contractor/Candidate


Single View of the Team


Single View of the Organization (Select Metrics)


Managing Retention Risk


Staffing

HR

MS

Onboarding

Perform

ance / S

uccession

Learning

Com

pensationData Hub“Single Source of Truth”

•Easy-to-Use Visualization Tool Accessed via Portal

•Email•Binder•Etc.

Non-H

R Info

Key Technology Components


SUMMARY & CONCLUSIONS


• Think, blink or sleep on it: Data, metrics and analytics help make tough decisions smart decisions

• Good storytelling also helps; Numbers only part of the picture

• Talent metrics are business metrics

• HR & TM data support business decisions

• Ensure short-term gains do not lead to long-term losses

• Ensure adequate supply of talent, particularly for critical roles

• Talent management is much more effective when accompanied by an intelligence strategy and capability

• Talent intelligence comprises people, process, technology

Summary


Talent Intelligence Check-List

�Identify client stakeholders with tough decisions to make.

�Beg, borrow and steal analytic competencies.

�Keep HR and non-HR stakeholders appropriately engaged.

�Standardize metrics and analytics definitions and data sources.

�Pick the most cost-effective tools for delivering metrics and analytics to the stakeholders who need them –new or existing.


Wrap-Up

Questions and Discussion

[email protected]


Continue the Conversation

• http://www.knowledgeinfusion.com/coe/groups/talent-intelligence

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Talent Intelligence: Using Measurement to Better Manage the Workforce and HR - IHRIM Affinity Group