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Applying Workforce Analytics: Data-Driven Insights to Inform Talent Decisions
Mick Collins & Marcus Joseph, SuccessFactors
LEHRN Conference, March 6, 2014
Introduction
3 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Executives Lack the Data Needed to Make Effective Talent Decisions
0 50 100
Percentage of CEOs
Labor costs
Return on investment
in human capital
Assessments of
internal advancement
Employees’ views
and needs
Costs of employee
turnover
Staff productivity
Information is Important
Receives Sufficient Information
A Minority of CEOs Receive Comprehensive Data on Their Workforce Percentage of CEOs Who Believe Information is Important and Sufficient for Decision-Making, PwC Survey, n=1,258
Source: PwC, 15th Annual Global CEO Survey, 2012.
4 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Are We Investing in Technology for Reporting….or Analytics…or Something Else?
Source: Adapted From Thomas Davenport, Competing on Analytics: How Business Intelligence
Drives Performance, HR Technology Conference Presentation, October 10, 2007.
Co
mp
eti
tive A
dv
an
tag
e
High
Low
Decision Optimization: What’s the best that can happen?
Predictive Analytics: What will happen next?
Forecasting: What if these trends continue?
Statistical Models: Why is this happening?
Alerts: Where is action needed?
Research/Drill Down: What exactly is the problem?
Ad-Hoc Reports: How many, how often, where?
Standard Reports: What happened?
Rep
ortin
g
An
aly
tics
5 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Common Roles in Building and Utilizing Workforce Analytics Technology
Technology
Producers (HRIT)
Technology
Consumers (HR, Line)
Infrastructure
Architecture
Security
Maintenance
Training
Organizational
Structure
Business
Priorities
Talent Management
Expertise
Governance
Information
Retailing
Multi-Channel
Delivery
Empowering
the User
Integrated Data
Functional
Roles
Functional
Roles
6 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Write Down Your Answer
I would like to know whether my firm’s investment in
_________________ has resulted in
______________________?
Examples
I would like to know whether my firm’s investment in virtual customer service
training has resulted in higher adoption of store loyalty cards?
I would like to know whether my firm’s investment in universal benefits
coverage has resulted in better retention rates for part-time staff?
How Could Better Data-Driven Insights Help Your Organization?
About SuccessFactors
8 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Best of Breed HCM Suite
Content Integration Extensibility
Recruiting
Core
HR
Onboarding
Learning Succession
& Development
Performance
& Goals
Workforce
Planning
HR
Analytics
Social
Collaboration
Payroll Compensation
9 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Global Leaders Choose SuccessFactors for Workforce Analytics & Strategic Workforce Planning
1. Governance
11 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
What is a Data Governance Program?
Definition: • Encompasses the people, processes,
and information technology required to create a consistent and proper handling of an organization's data across the business enterprise.
• The goals of implementing a data governance program include: o Increasing consistency and confidence
in decision-making o Decreasing the risk of regulatory fines o Improving data security o Designating accountability for information
quality
• Implementing a data quality management program will necessitate the measuring, monitoring, and tracking of data quality.
Questions to Ask:
1. Who will write the data governance program &
who is responsible for keeping it up to date?
2. Who supports & enforces the program?
3. Do staff members (both technical and
business) know that the data governance
program exists?
4. What does the governance program state?
5. Is someone mentoring your staff on what it
means to adhere to the program?
6. Is someone making certain that the program is
followed?
Source: SuccessFactors, Data Quality Management Workshop, 2009.
12 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Business Rules
Data Storage Environment
Process for Data Management (ETL)
Source Systems
Point of Access Determines how the Executive Team, Business Units, Support
Teams and People Leaders get access to Human Capital data &
the views they see
Determines how data will be managed,
controlled and validated once it has left its
original source system
This is the matrix of agreed rules that govern the use and
interpretation of data in relation to the data controls, quality
measures and governance applied to its handling once leaving
original source systems
This is the staging environment that manages
data once it has left its original source system
Describes the technical processes for extracting, transforming &
loading data into the Data Storage Environment
The analytics application manages data from
a large number of sources – we are seeking
access to the original source rather than
downstream application data
Reporting Platform
Data Governance is Multi-Faceted
Sample Data Governance Model
Source: SuccessFactors Workforce Analytics Customer Presentation.
13 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Example: Cross-Functional Governance of Tools & Data
Goal Problems Solutions Outcomes
Create a
“Metrics Culture”
Business initiatives
& drivers
consistently and
rigorously have
metrics and
analytics built into
their design to
support and provide
insight into success
of the initiative
Implemented an
EDW:
Expensive & rigid,
with complicated
reporting and a lack
of agreement on
core standards
Deployed SFSF
Workforce
Analytics:
Metrics standards
were across HR only
– other functions
maintained their own
metrics data and
formulas
Link HR, HRIT, and
Finance:
Commenced an
executive-sponsored
“metrics standards”
activity
Removed all
reporting from HR
Business Partners:
Consolidated
centrally with a
“standard catalog” of
reports
Consolidation and
standardization
provided
consistent
outcomes and
reliable data
Standards work has
quieted issues of the
“right” set of
numbers
Source: SuccessFactors Workforce Analytics Customer Presentation.
2. Integrated Data
15 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Every Day, Your Leaders Ask Hundreds of Talent Questions – What Data is Needed to Answer Them?
Will adding staff
increase profitability?
What’s our mix of
non-full time staff?
Are we over-staffed
in certain disciplines?
What are our exit
rates for talent pools?
Which skills will be in
highest demand?
Where are our
talent pools?
What % of our staff
will retire in 5 years?
Which LoBs are
losing knowledge?
Is this mix
optimal?
What % of staff move
internally to fill gaps?
Are these skills
available externally?
Should we hire more
from internal teams?
What’s the cost of
filling the gaps?
What % of critical
roles are unfilled?
How big are the skill
gaps?
Workforce Planning
Questions Workforce Analytics
Questions
What’s our ratio of
high/low performers?
How engaged is our
critical talent?
Is our span of control
too high?
How productive is
our workforce?
Are we paying for
performance?
What career paths
are most successful?
Are we succeeding in
hiring Millenials?
Is our workforce
diverse?
What’s the cost of
turnover?
Which roles face a
succession risk?
What are our best
sources of hire?
How effective is our
skills training?
Do we suffer from
high absence rates?
Are staff achieving
their goals?
How many staff will
we need in 5 years?
16 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Executive Dashboards Require Data From a Myriad of Sources
Core Workforce Facts:
• Headcount or FTE
• Terminations
• Diversity, by Gender and Ethnic Background
• Workforce Age Profile
Productivity and Performance:
• Workforce Productivity
• Workforce Availability/Absenteeism
• Executive Compensation/Pay Comparison
Talent Development and Succession:
• Leadership Quality (Current and Bench)
• Staffing Rate – High Performers
• Staffing Rate – High Potentials
Human Capital Risk:
• Succession Risk (Lack of RN Successors)
• Staffing Shortages in Critical Roles
• Current vs. Future Competency Gaps
• Churn (hires vs. terminations) Rates
• Knowledge & Transition Risk
Financial Workforce Metrics:
• Operating Revenue per FTE
• Operating Profit per FTE
• Return on Human Capital Investment Ratio
• Cost of Turnover
Metrics for the Board of Directors In Boxes, Data Sources Required
Source: SuccessFactors, Workforce Data in the Boardroom, IHRIM Workforce Solutions Review, September, 2011.
HRIS Data
Performance
Compensation
Financials
Succession
Recruiting
Learning & Development
17 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Educating the Organization About Data Quality
Timeliness Timeliness
Comments Accuracy
Accuracy
Comments Applicability
Applicability
Comments
Reporting
A set of standard
reports is created for
weekly line
management meetings
and must be ready one
day in advance
Reports should be
produced with an accuracy of +/- 5%.
The reports are not
applicable to any
specific business
issue; rather, they contribute to
ongoing operational
management
Analytics
Analytics occur on an
as-needed basis and examine broad trends;
Timeliness is only
considered in terms of
establishing context
Data accuracy
should be within a
threshold of +/-
10%.
Analysis should be
conducted on high-
priority workforce
segments
Modeling /
Forecasting
Each quarter’s HR
ExCom meetings
include headcount
forecasts; the data
used to populate the
models must be
updated 7 days in
advance
Data accuracy
should be within a
threshold of +/-
10%.
Data relevant to the
aging workforce
profile should be
prioritized
Strategic
Decision-
Making
The annual Strategic
Planning Workshop
requires a full year of
historical data; given
the seniority of
attendees, timeliness is important
Data accuracy
should be within a threshold of +/-
10%.
Data that is
applicable to the
strategic goals of
the organization is
critical; HR should
define the data link
3. Multi-Channel Delivery
19 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Know Your Audience: Their Needs and Access Points
“Is there a positive
correlation between pay
and performance?”
“Which managers are talent
hoarders and which are
talent promoters?”
ANALYST EXECUTIVE HRBP
“How is my BU comparing
to others across our talent
KPIs?”
Need: A focused set of
talent KPIs to determine if
workforce strategy is helping
to execute business strategy
Channel: iPad Metrics
Need: A flexible application
that delivers metrics,
analysis, and statistical
tools to investigate talent
trends and identify issues
that should be addressed
Channel: Analytics
application
Need: Desktop metrics to
monitor tactical aspects of
workforce efficiency,
effectiveness, and impact,
with internal benchmarks
and recommended actions
Channel: Pre-Built Metrics
Dashboard
20 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
10-Minute Discussion – Pick 1 or 2 Questions
1. What data management (storage, transfer, maintenance) issues might
hinder your use of workforce analytics, and what cross-functional
governance models have worked/could work to address them?
2. Which of your firm’s data sources (not “systems”) contain data with the
highest and lowest data quality? Why? What challenges have you faced
with creating a “single version of the truth” – standard sources, formulas,
business logic, etc.?
3. What channels does your organization use currently to deliver data to
end-users? What channels would you like to see adopted, that will drive
utilization?
4. Information Retailing
22 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Manufacturer or Retailer?
V.
23 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Being an Information Retailer Requires New Skills, Techniques & Tools
Sales & Influence
Marketing
Change Management
Graphic Design
Data Visualization
Story Telling
Training
Etc.
Key Areas of
Recent Growth
24 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Example: Headlines
5. Empowering the User
26 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Org Agility Requires Mass Customization
“[Mass Production concerns] the technologies and systems to deliver
goods and services that meet individual customers’ needs with near mass
production efficiency.”
Tseng & Jiao
Source: Tseng, M. & Jiao, J. (2001). Mass customization. In G. Salvendy (ed.), Handbook of industrial engineering. New York: Wiley, 684‐709
Competitive
Forces
Expectations
of Technology
Individual
Users
Business
Strategy
Adjust with Changes to: Top Line
Bottom Line Without Increasing Costs
27 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
From Tour Guide to Curator
Source: Star Tribune
28 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Predefine or Self-Determine
Predefine Self-Determine
Information Narrow Broad
Segmentation Limited Guided
Visualization Static Dynamic
Access Method Pushed Pulled
Frequency Monthly On-Demand
29 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
10-Minute Discussion
1. Think of an example you’ve experienced where data was
turned into a story that was successfully marketed to the
target audience. What characterized the final product?
2. What is an example of a solution that you have experienced
where enabling you as the end-user greatly enhanced the
resulting impact?
Resources You Can Use
31 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Write Down Your Answer
I would like to know whether my firm’s investment in
_________________ has resulted in
______________________?
Examples
I would like to know whether my firm’s investment in virtual customer service
training has resulted in higher adoption of store loyalty cards?
I would like to know whether my firm’s investment in universal benefits
coverage has resulted in better retention rates for part-time staff?
How Did You Answer the Question?
32 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Setting Priorities for Workforce Analytics: The Cost of a Poor Decision
Consists of 25 common “HR
Executive” decisions about
talent management strategy
Rating the “cost of a poor
decision” can be used to assess
priorities for workforce
analytics & planning
Thank You
33 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.
Mick Collins
Twitter: mickcollins
Marcus Joseph