Building Meaningful Analytics for MiH Training …naseba.blob.core.windows.net/img/mih/links/Strategic-HR-training/... · Talent Scorecard Worksheet ... Building Meaningful Analytics

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Human Capital InstituteThe Global Association for Strategic Talent ManagementHCI

Building Meaningful Analytics for

MiH Training Academy/Naseba

TOOLKIT

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Toolkitfor

Copyright © 2015, Human Capital Institute

Building Meaningful Analytics for MiH Training Academy/Naseba

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Welcome letter ............................................................................................................................................................ 1

Learning Objectives ................................................................................................................................................. 3

HCI Assets ...................................................................................................................................................................5

Assessment ................................................................................................................................................................13

Talent Analytics Maturity Assessment .........................................................................................................15

Course Activities ....................................................................................................................................................... 17

Case Study: Peak Experiences .....................................................................................................................18

Case Study Worksheets ................................................................................................................................. 20

Examples of Analytics in Action ........................................................................................................................ 29

Analytics Worksheets .................................................................................................................................... 30

Human Capital Practices Assessment .......................................................................................................38

Tools ............................................................................................................................................................................39

Talent Metrics That Matter Worksheets .................................................................................................... 40

Measuring Map .................................................................................................................................................54

Talent Scorecard Worksheet ........................................................................................................................ 55

Talent Scorecard .............................................................................................................................................. 56

Segmented Talent Scorecard .......................................................................................................................57

BMA Journal and Action Planning Tools ......................................................................................................... 59

BMA Journal ..................................................................................................................................................... 60

BMA Action Plan .................................................................................................................................................61

Articles and Resources .........................................................................................................................................63

Talent Metrics that Matter .............................................................................................................................. 65

Foundations of Strategic Workforce Planning .........................................................................................79

100 Questions You Can Answer With HR Analytics .............................................................................. 99

Talent Management Bookshelf .........................................................................................................................105

Table of Contents


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Welcome to the new HCI course on Building Meaningful Analytics (BMA)!

The 7,500 people who have taken HCI courses during the last five years are always asking us to expand our offerings so that they can continue building their knowledge, skills, and capabilities. The request that is invariably at the top of the list is a new course on metrics and analytics. The part of HCS that addresses metrics is one of the most popular segments, so this course has been in our plans. We have been gathering research and materials for BMA for the past eighteen months, and we also wanted to provide the right series of models so that analytics have meaning and are not simply a laundry list of measures that are not acted upon.

There is a compelling need for HR professionals to be more evidenced-based and data-driven. This is the language of the business, and as we are asked to play an ever-increasing role in setting direction and improving performance, these are invaluable capabilities to possess. We should hold ourselves accountable for robust decision frameworks—based on data—that leverage and maximize the possibilities for success.

Every participant that takes BMA will walk away with a Talent Scorecard. This is the type of practical tool and outcome that characterizes HCI courses. It is not enough to know more, we must do more. It may be that upon returning to your organization you will need to modify or amend the Talent Scorecard developed in the BMA course; but it is a foundation upon which to build.

Thank you for supporting HCI and taking this course on analytics. Please remember to continue your learning on our website and with our community webcasts. They are a great source of additional knowledge and insights. Please let us know how we are doing, and if there are other topics that you would enjoy pursuing.

Best regards,

David C. Forman Chief Learning Officer The Human Capital Institute


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1. Describe the drivers for the greater importance of analytics in improving human capital management.

2. Synthesize the latest research, case examples, and thought leadership in human capital metrics and analytics.

3. Recognize the types of metrics that are insufficient and do not provide useful insight for improving human

capital management.

4. Assess your analytics readiness.

5. Discuss how various organizations are using analytics to improve decision making as it relates to the workforce

and the deployment of talent.

6. Define key measurement terms and concepts that pertain to human capital management.

7. Describe the Google Analytics Value Chain and how it can improve decision making for the organization.

8. Identify the stages in the HCI model for Building Meaningful Analytics.

9. Apply the HCI model for Building Meaningful Analytics to a case study situation.

10. Select metrics from the HCI library that apply to your organization for each talent practice.

11. Prioritize and consolidate these metrics to a set of six to ten measures that comprise your draft Talent Scorecard.

12. Review and finalize your draft Talent Scorecard with business leaders.

13. Develop an action plan for future steps and activities.

14. Reflect on lessons learned in the development of the Talent Scorecard and suggest improvements.

Learning Objectives


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HCI Assets


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1. Keynote: Case Studies by the Google People Analytics Team

Brian Ong, Head of Workforce Planning, People Analytics Team at Google describes how the true effectiveness

of an analytics group is based on its ability to change opinions and be influential. Google case studies, including

“Project Oxygen,” is Google’s quest to build a better manager and show why better managers do matter.

“Influencing Organization Design,” forecasts the future organizational structure of Google, based on current

hiring and promotion practices. Brian shares other insights into Google’s innovative, data-driven HR process,

such as how de-bunking HR myths have turned out to be an important function of the analytics team.

Access Link:

http://www.hci.org/lib/case-studies-google-people-analytics-team

2. Keynote: Building Top Tier Talent with Data

Jeff Buchmiller, Alliance Data, and Peter Howes, Success Factors, discuss how to maximize the impact of their

talent pools, improve career paths, and measure talent development outcomes.

Access Link:

http://www.hci.org/lib/building-top-tier-talent-data

3. Keynote: Actionable Analytics to Determine Critical Workforce Roles

Daniel Hanyzewski, formerly Global Director of Recruitment at Nike, explains how to identify which roles within

your organization are critical, and best practices for gathering external and internal data.

Access Link:

http://www.hci.org/lib/actionable-analytics-determine-critical-workforce-roles

4. Executive Conversation Teleconference: ConAgra Foods Leads by Example

John Hine, Senior Director of OD and Learning at ConAgra Foods, and Bonnie Beresford from Human Capital

Analytics, describe how ConAgra aligned stakeholders on the metrics for their leadership development program;

they conducted a business impact study with such a vast population, and used the intelligence gained through

the study to improve leadership development.

Access Link:

http://www.hci.org/node/1216607

5. Article: Should Big Data Drive Big Decisions? Deloitte Debates

Greg Szwartz, Director, Deloitte Consulting LLP helps prepare for challenges around business leaders’ readiness

for big data.

Access Link:

http://www.hci.org/external/1434735


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6. Article: The Benefits of Data Talking to Data, Wall Street Journal

Dr. Robert Plant, professor of computer information systems at the University of Miami’s School of Business

Administration, describes examples from multiple industries where data is streamed real time; the implications for

human capital analytics, especially in these industries, merits mirroring data streaming capability.

Access Link:


7. Article: A Delicate Balance: Organizational Barriers to Evidence-Based Management

James Guszcza, national predictive analytics lead for Deloitte Consulting, John Lucker, principal and the

Advanced Analytics Human Capital market leader in Deloitte Consulting LLP

The image of “data mining” should give way to the image of “data dialogues.” Using data to drive decisions

involves avoiding collisions—instead promote evolutions, syntheses, and collaborations among people with

differing skills and perspectives.

Access Link:


8. Executive Conversation Teleconference: Can You Take the Lead in “The Worthiness Era”?

Economist Laurie Bassi shares how worthiness pays off with “The Good Company Index,” a unique ranking

of the Fortune 100 companies on their records as employers, sellers, and stewards of society and the planet.

The encouraging results: companies in the same industry with higher scores on the Good Company Index

consistently outperformed their peers in the stock market over one-, three-, and five-year periods.

Access Link:


9. Executive Conversation Teleconference: Everything You Always Wanted to Know About Human Capital Analytics but were Afraid to Ask

Dr. Laurie Bassi discusses her book, The HR Analytics Handbook, and using analytics to drive business results

(with metrics on engagement, sales, and customer satisfaction).

Access Link:


10. Podcast: Can Metrics Close the Competency Gap?

Dr. Bennett Price, Senior Analyst, OD and Management, Global R&D, Pepsico describes competencies as

the framework of talent capability, and metrics give the organization the ability to fine tune, adjust, and make

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predictive capability of talent. When the business is taking a significant turn of direction, metrics on talent

competencies are invaluable to predicting success.

Access Link:

http://www.hci.org/lib/can-metrics-close-competency-gap-podcast

11. Podcast: Turning Analytics into Action

Gene Pease, CEO, and Bonnie Beresford of Human Capital Analytics describe how companies shift to predictive

value from analytics to take action with confidence. The examples offered come from various levels of impact

(that parallel Kirkpatrick’s five levels on the value of learning), and adds “level six” for measuring ROI. For webcast

slides see: http://www.hci.org/files/field_slides/02252010%20Turning%20Analytics%20into%20Action.pdf

Access Link:

http://www.hci.org/lib/turning-analytics-action-1

12. Article: Workforce Analytics is a Journey and a Process, HR Times

Rishi Agarwal, principal of Deloitte Consulting LLP and national co-leader for the Workforce Reporting and

Analytics practice, describes “the journey,” based on the information maturity, to focus on the workforce issue and

use technology as an enabler. The important thing is to act on the analysis; otherwise analytics quickly becomes

shelfware. Positive results at the basic level can help build momentum for future analytics initiatives.

Access Link:


13. HCI Research Report: The Business of Talent Intelligence

This research contrasts Data Proficient Organizations (DPOs) with those organizations whose business leaders

are not satisfied with the workforce data provided to them—Data Deficient Organizations (DDOs). The research

findings identify the distinct differences between talent intelligence practices of both types of organizations.

Access Link:

http://www.hci.org/lib/business-impact-talent-intelligence

14. Webcast: What Is Talent Intelligence?

Dave Long, Director of Talent Management, and Scot Duffield, Senior Talent Analyst at DaVita, explain Talent

Intelligence (TI) that captures key workforce data on your organization’s people assets. While this may sound like

workforce analytics, the difference lies in the insights it produces; truly talent intelligent organizations connect all

of the human capital disciplines (recruiting, learning, performance, development, compensation, etc.) to look at the

workforce holistically, and identify gaps between the talent the organization has and the talent it will need in the

future. DaVita leads by example with an “intelligent organization” that improves the bottom line.

Access Link:

http://www.hci.org/lib/what-talent-intelligence


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15. Webcast: Measure the Immeasurable

Jeff Higgins offers examples of using analytics to develop profile of successful hires, leverage better fit in

onboarding and measure time to productivity, capture ROI of internal development and career pathing, quantify

value of reward and retention practices, and implementing strong systems to collect, track and trend information

across talent management silos.

Access Link:


16. Research: The Top Five Metrics for Human Capital Analytics

Jeff Higgins, CEO of The Human Capital Management Institute, offers a white paper on five key human capital

metrics to see your way through economic downturns and growth cycles. In an economic crisis, organizations

who use these key metrics can be much better prepared to handle the changes, move rapidly with agility, and

make precise surgical cuts rather than making “cuts across the board.”

Access Link:

http://www.hci.org/files/field_content_file/top-five-metrics-for-workforce-analytics%5B1%5D%5B1%5D.pdf

17. Research: Why Leadership and Culture Matter in Analytics

A focus on data, methods, and technology alone does not magically create the insights to improve success.

Accenture research explores ways to implement a culture of analytics and develop analytics leaders to help

companies achieve high performance.

Access Link:

http://www.accenture.com/us-en/Pages/insight-leadership-culture-analytics-summary.aspx

18. Paper: Competing on Analytics: The New Science of Winning

Thomas H. Davenport and Jeanne G. Harris explain how organizations are using data creatively to beat the

competition.

Overview: A wealth of examples—from organizations as diverse as Amazon, Barclay’s, Capital One, Harrah’s,

Procter & Gamble, Wachovia, and the Boston Red Sox—illuminate how to leverage the power of analytics. For

talent management to run like a business (and keep up with the business), it needs to match the analytics power

used in the rest of the company.

Access Link:

http://www.accenture.com/us-en/Pages/book-summary-competing-analytics-new-science-winning-summary.aspx

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19. Paper: Analytics—The New Path to Value

MIT Sloan Management Review partnering with the IBM Institute for Business Value, conducted a survey of

nearly 3,000 executives, managers, and analysts working across more than 30 industries and 100 countries. The

findings led to recommendations on information-and-analytics:

• Focus on the biggest and highest value opportunities

• Within each opportunity, start with questions, not data

• Embed insights to drive actions and deliver value

• Keep existing capabilities while adding new ones

• Use an information agenda to plan for the future.

Access Link:


20. Article: The Value of Analytics in Healthcare

Industry report from IBM: Healthcare organizations around the world are challenged by pressures to reduce

costs, improve coordination and outcomes, provide more with less, and be more patient centric. Yet, at the

same time, evidence is mounting that the industry is increasingly challenged by entrenched inefficiencies and

suboptimal clinical outcomes. Building analytics competency can help these organizations harness “big data” to

create actionable insights, set their future vision, improve outcomes, and reduce time to value.

Access Link:

http://www.hci.org/lib/value-analytics-healthcare-0

21. Article: Customer Analytics Pays Off— Driving Top-line Growth by Bringing Science to the Art of Marketing

An effective customer analytics strategy helps drive top-line growth, avoid unnecessary costs, and increase

customer satisfaction. To help organizations in their pursuit for deeper customer insight, IBM identifies four stages

of organizational capabilities, enabled by four associated customer analytics strategies.

Access Link:



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AssessmentTalent Analytics Maturity Assessment ........................................................................ 38


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Talent Analytics Maturity Assessment

Please answer each question to the extent that you agree or disagree with each statement. The answers when considered as a whole provide an indicator of the maturity of the analytics function and capabilities in your organization.

Strongly Disagree

Disagree Neutral AgreeStrongly Agree

1. Leaders use analytics from operations and finance to make better decisions on a regular basis.

2. Leaders use analytics on human capital and people practices to make better decisions on a regular basis.

3. Talent metrics are presented to senior management on a regular basis.

4. Talent metrics are published in the annual report.

5. Leaders and managers will proactively request more information on the effectiveness of people practices or information about the workforce.

6. A talent analytics function or team exists within the organization.

7. The people who provide the talent metrics have the right training and skills.

8. The talent analytics team in your organization is well known and respected.

9. HR business partners are strong in their analytical and consulting skills.

10. The talent analytics team has grown over the past several years.


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Strongly Disagree

Disagree Neutral AgreeStrongly Agree

11. It is easy to get the data that is needed for talent scorecards.

12. Talent data are in one central place.

13. IT or finance must get involved to generate talent reports on a regular basis.

14. It is easy to run ad hoc reports and search for new relationships among the data.

15. It is easy to gather historical data on key talent metrics.

16. Talent metrics and surveys are made public to the organization.

17. Teams are formed to take action to improve the organization based on the metrics.

18. Organizational changes and improvements based on talent metrics are recognized and known by employees.

19. Managers and leaders are held accountable for improvements in talent metrics.

20. The organization has strong values related to being data-driven and making continuous improvements.

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Course ActivitiesCase Study: Peak Experiences ...................................................................................... 18

Case Study Worksheets ..................................................................................................20


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Case Study: Peak ExperiencesViktor Jordan scanned the map on his office wall. He lingered on each property for a couple of seconds and thought

about the progress that Peak Experiences had made over the last 10 years. Whether they had purchased a property

or built it from the ground-up, Peak had assembled a portfolio of unique, high-quality destinations that catered to

the wealthy, savvy traveler. As he returned to his desk, he caught a perfect view of the 9th green of the Hagley Golf

Course, right outside of Christchurch. How he wished he was putting for a birdie right now rather than plotting his

organization’s talent strategy. However, in his role as SVP of Talent, he knew that these stakes were much higher

than those of his weekly golf match. After moving out of operations a year earlier, Viktor was still not sure that the

organization realized how critical the people were in the whole business equation.

Peak was in the process of launching its new division—Peak Plus—focused on the active senior population, a

demographic with both money and energy to expend. Peak’s core business was very stable—a cash cow, really—but it

was clear that opportunities existed globally for a new kind of vacation/excursion experience—and Peak wanted to be an

early entrant into this market, leveraging its core capabilities in service, logistics, quality, and customer experience. Inez

Sanchez is the new executive vice president responsible for the new Peak Plus segment. It would be Inez’s job to build

her core team, staff the new venues, and get them opened and operating on schedule. Inez is a veteran of the resort

industry and joined Peak two months ago from a competitor, Peabody Luxury Properties, where she had been COO.

As the first step in their strategy, Peak planned to open four new Peak Plus property “experiences” over the next

two years. The venues had already been identified: Brazil—for a pampa experience; Yellowstone—for a water/rafting

experience; South Africa—for a “safari” experience; and the Scottish Highlands—for a “trek” experience. The concept

united the best aspects of a top-notch, high-end vacation with a complementary physical experience that would be

adjusted based on each guest’s capabilities and goals.

Viktor knew that the organization would have to do some significant leveraging of current talent to be able to instill

the culture that had been instrumental in delivering on the organization’s promise, historically. That meant that the

entire organization would have to be willing to contribute to make the new venture a success.

As Viktor and Inez discussed talent planning for the new division, they agreed that the easiest way to communicate

talent status, talent demand, and talent results—and to make talent decisions—was through the use of a talent

scorecard. Up to this point, the general managers at each property had taken care of their talent issues within

the property location. The implicit philosophy was, “grow your own and make it work.” There was little sharing of

resources or talent practices that worked well, enterprise-wide. While there were some HR services that were

delivered enterprise-wide—benefits, payroll, pension/saving plans—all the talent services were delivered locally. This

worked fine as long as results were good and it was business as usual. However, the new strategy would require that

Peak understand its talent assets more deeply and leverage them more fully. And, given the fact that Inez and Viktor

estimated that the organizational headcount would probably have to increase by 30–40% over two years, the need

for better information and talent analytics was becoming more critical.

In preparation for a senior staff meeting, Viktor pulled together some data about the talent at Peak. The team is used

to seeing the operational numbers but some of the talent data will be new. As part of the planning process, he has

asked each general manager to be prepared to identify the roles at their properties that directly lead to their business

success. He is hoping that this discussion will give the team some important keys to staffing the new properties and

potentially moving some key talent. In addition, he believes the team will glean some insights from the data about

current operations and what baseline metrics the team might like to put into their talent scorecard going forward that will

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help them monitor the core business more holistically and set and monitor the talent strategy and activities for the new

properties as the open and begin operations.

PropertyRev($M)

EE Count Rev/ee

Operating Expense

($M)Profit

Margin

Customer Satisfaction

Rating%HighlyEngaged %HiPos

# HiPos

AvePerfRating (1–5)

Bangkok 47.54 300 $158,467 41.09 13.57% 75% 72% 1% 3 3

Dubai 62.66 241 $260,000 55.12 12.03% 93% 59% 15% 36 4.1

HongKong 39.72 179 $221,899 29.16 26.59% 97% 92% 25% 45 4.2

Istanbul 15.52 101 $153,663 12.7 18.17% 77% 93% 9% 9 4

London 92.33 315 $293,111 84.79 8.17% 85% 68% 2% 6 3.3

Marblehead 16.55 79 $209,494 14.76 10.82% 82% 89% 1% 1 4.3

Moscow 37.92 65 $583,385 33.17 12.53% 97% 75% 1% 1 4.7

Paris 120.33 301 $399,767 101.11 15.97% 99% 94% 10% 30 3.1

Perth 7.91 42 $188,333 5.29 33.12% 95% 97% 20% 8 4.7

Topsfield 66.12 139 $475,683 54.12 18.15% 81% 97% 15% 21 4.2

Totals /AVE 506.6 1762 $287,514 431.31 14.86% 88% 84% 10% 174 4

SeniorStaffMeetingResultsandFollow-UpThe senior leadership meeting led to very deep discussions and airing of opinions about how to understand Peak’s

talent and leverage those talent assets throughout the enterprise. Viktor had expected some territoriality regarding

talent, especially regarding everyone’s high performers and high potentials. During one of their working sessions,

Viktor challenged the team to identify the roles that were most strategic to their success. As he expected, a whole

range of roles were identified. Then as the general managers presented their highly valued talent, he asked them

to relate these individuals to those strategic roles. This helped the team generate a first draft of strategic roles and

identify where they’ve already got some high-level talent in those roles.

Next, Viktor and Inez led a discussion about what roles would be strategic in opening a new market segment (Peak

Plus) in addition to launching a new property and getting it up, running, and performing well as quickly as possible. It

was interesting that many of these roles were not identified as strategic from the earlier exercise. This led the team to

understand that strategic roles for the organization will vary based upon where properties are in their maturity cycle.

Finally, the CEO addressed the senior staff and highlighted two major concerns that she has. The first is that the

company needs to become more collaborative. The old style of decentralized operation has been useful but to grow

and lead, Peak Experiences must find better ways to connect and collaborate. The second concern is that it has

taken the organization too long to come up with creative ideas such as Peak Plus. She wants, first of all, for Peak Plus

to be very successful soon; and relatedly, she wants more innovative approaches and offerings. She is concerned

that the company has become complacent and is in danger of being outflanked by more agile, creative competitors.

Your Role1. Review the Global Vignette in the Toolkit

2. Identify the top three to five human capital challenges faced by Peak Experiences as an enterprise and

then for the new Peak Plus division.

3. Identify the top three to five human capital challenges faced by Peak Experiences


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Case Study WorksheetsThe following walkthrough is based on the Case Study of Peak Experiences in the Building Meaningful Analytics

course. The case study was sent out as pre-work, but another copy is also available in the Toolkit. There are certainly

other measures that could comprise the Talent Scorecard; but the important part is the process that is followed to

derive the “meaningful analytics.”

Step 1: Determine FocusThere is no succinctly stated strategic statement or set of precise requirements, but rather a set of statements,

conversations, and collected data that provide clues and insights into what will most likely be important. As in any case

study, you have to analyze the situation based on the information you have, and make the best choices you can.

Analyze the Situation: The following points are summarized from the case study information.

MarketFocus

• A stable, core business in providing attractive destinations for wealthy, savvy travelers.

• Launching a new business initiative to focus on senior travelers who have the means and energy to enjoy

exotic locations.

• A new senior executive has been tasked with standing up this new division and being successful with four new

experiences within the next two years.

• The high-end destination business segment is highly competitive with significant competitive pressure.

Internal Processes and Operations

• The existing organization has tended to operate in a decentralized manner with a “grow your own and make it

work” philosophy.

• Little communication and collaboration across locations.

• Data have been used to review operational and financial performance but not human capital effectiveness.

• Little role differentiation is acknowledged among the property general managers; they viewed all roles as being

important but none more so than others.

CEOPerspectives

• Greater connections and collaboration are required to be successful in the future.

• The organization needs to become more than just a collection of separate properties/experiences.

• Stronger innovation is needed to be continually successful in a highly-competitive industry.

AssembledData

• The high potential program is very uneven across locations. This leads to many questions about criteria and a

consistent process for identification and development.

• The locations with the lowest performance ratings have low engagement levels.

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• The highest profit locations and leading revenue generator have customer and engagement ratings above 90%.

• There is not a consistent relationship between customer satisfaction and engagement levels. What might be the

possible causes of this discrepancy?

• The site with the largest head count has the lowest profit margins.

Step 2: The Strategic FilterFrom the information presented, the strategic filter leads to the following set of initiatives that are aligned with the

future success of the business.

1. Launch Peak Plus with the right team and organization.

2. Achieve visibility and credibility for Peak Plus in the new market for senior exclusive travel destinations.

3. Meet or exceed the Peak Plus business goals within the first six months.

4. Change the mindset of the organization to become more coordinated, connected, and collaborative.

5. Establish the policies and practices of the organization to be more coordinated, connected, and collaborative.

6. Use human capital analytics to track and improve people practices and organizational performance.

7. Improve the process of innovating new products and services from anywhere and everywhere in

the organization.

Step 3: The Measurement FilterFor the purposes of this case study, all data can be accessed, measured, and used. The primary emphasis of this

activity is to identify the highest priority measures for the Talent Scorecard.

Step 4: Prioritize and ConsolidateThe task is now to take the information on the context and strategic direction of Peak Plus and begin to identify the

key questions that should be asked about each initiative. These questions come from the BMA worksheets and the

article “Talent Metrics that Matter.” In addition, brainstorm other questions that might be relevant to the topic and

stakeholders. The end result is moving toward the process of selecting “meaningful” metrics to track and analyze.

Each of the seven initiatives identified in Step 2 are listed with relevant questions and then its prioritization.


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Initiative Key Questions Prioritize

Right team for Peak Plus Is the employment brand compelling?

What are the strategic roles?

What key capabilities are needed?

What is the quality of candidates applying?

What percentage of first-choice hires is accepting?

What is the time to proficiency by role?

Are mentors and buddies assigned to new hires?

What jobs are unfilled?

Are high quality internal candidates applying?

What is the right mix among hiring, developing and borrowing needed expertise?

Are diverse candidates applying?

Are development plans in place for all team members?

Is Inez fully assimilated and effective?

High priority as this is a necessary condition for other measures and results. Without the right team, all other outcomes will be jeopardized.

Probably two measures on the scorecard.

Visibility and Credibility in the New Market

What are other companies in the Peak Plus marketplace?

How do potential customers perceive Peak Experiences vs. competitors?

What is the quality of the four new Peak Experiences locations?

What are the strategic roles for achieving visibility and credibility in a new marketplace?

What capabilities are needed to be successful in these roles?

Are mentoring programs in place?

Are development programs established for the key capabilities?

High as this is essential to achieving business results, and specific capabilities are needed to establish a presence in a new marketplace.

Probably one measure on the scorecard.

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Business Goals Achieved What are the revenue and profit objectives for each quarter?

Is the right team in place?

Are leaders making the right decisions?

Are strategic roles filled with outstanding performers?

Are employees engaged and committed to achieving initial success?

Does a line of sight exist between each person’s job and organizational goals?

Has turnover in key roles or key talent occurred?

Are people held accountable for achieving business goals and objectives?

A critical business result that must be tracked and reported

Two measures on the scorecard.

Collaboration Mindset What is the current level of sharing ideas and talent in the organization?

What percentage of employees apply for internal jobs in different properties?

Is “collaboration” in the organization’s competency model?

Are more detailed key performance indicators (KPIs) for coordination, connection, and collaboration defined?

Do leaders role model a more coordinated, connected, and collaborative approach?

Are leaders held accountable for group performance, not just their own property?

The mindset must change before behavior will. This is a longer term goal but it is important to get started.

One measure on the scorecard.


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Collaboration Policies Does the performance management process emphasize collaboration?

Are leaders evaluated on their collaborative ability?

Do managers support the sharing of talent and ideas?

Are there questions on collaboration on the company engagement survey?

Are employees recognized for collaborative behavior?

Are technology platforms in place that support connection and collaboration?

Are jobs and new opportunities available to all employees?

Are employees held accountable for being more collaborative?

This is a longer term objective, but it is important to establish the seriousness of this approach.

One measure on the scorecard.

Talent Scorecard What human capital measures are tracked and reported today?

How often are financial and operational data reported to the CEO and Board?

What six to eight talent metrics should be tracked and recorded for the next year?

Can time be taken to present these data on a quarterly basis to the executive team?

Can monthly follow up reports be supplied to the executive team to keep them current?

Will members of leadership be held accountable for improvements in talent metrics (in the near future)?

Will talent metrics be conveyed to the entire organization and published in the annual report?

High priority as the right practices need to be in place, even if the data are not perfect.

One measure on the talent scorecard.

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Innovative Solutions How many new products and services are generated each year?

How long did it take for Peak Experiences to go from idea to execution?

How much revenue comes from new products and services each year?

How are new product and service ideas generated?

Are employees encouraged to come up with new ideas?

Is “innovation” included in the company competency model or core values?

Do leaders talk about the importance of innovation?

Are social media platforms in place that encourage “grounds up” innovation?

This is a longer term objective that is also closely related to increased collaboration.

This may be deferred until the next scorecard.

Step 5: Draft a Talent ScorecardThe next step is to turn Step 4 into specific measures that can be included in the Talent Scorecard. There are a

number of measures that could have been selected, so these are not the only “answers.” But it is important to follow a

process so that each measure has a rationale for its inclusion. Each measure on the scorecard should be subject to the

question: Why is this being measured? If this question cannot be answered, then it should probably not be included.

The baseline measure is the current state. It is important to measure over time to look for patterns and trends. A

one-time measure provides little value. It is recommended that the scorecard stay relatively consistent for a year;

in this case that would encompass the Baseline and T1 and T2 periods. After a year, for example, Peak may want to

substitute measures for longer-term initiatives such as collaboration policies or innovation.


26

Measure Baseline2012T1 Q1 2013

T2 Q3 2013

T3 Q1 2014

T4 Q3 2014

Comments

Percentage of strategic and critical roles unfilled for Peak Plus

18% Goal is 0%

Right team for Peak Plus

Percentage of first choice candidates accepting jobs

60% Goal is 90%

Right team for Peak Plus

Percentage of employees with the right skills to improve visibility and credibility in a new market

40%

Measure is based on competency model required skills with a 360 survey

Goal is 100% employees in strategic and critical roles by Q3 2013

Visibility in the New Market

Engagement levels of employees

55% positive engagement

Goal is 80% positive ratings

Business Goals Achieved

Planned versus actual revenue and profit results

75% of plan is achieved for this time period

Goal is 100% for both revenue and profit at the end of 2013

Business Goals Achieved

Leaders living and scaling the values of coordination, connection and collaboration

45%

Measured by a 360 degree survey

Goal is 90% by mid-2013

Collaboration Mindset

Also related to innovation

Number of employees recognized for collaborative behavior

7

As documented in company meetings and the newsletter

Goal is 10% employees by mid-2014

Collaboration Policies

Also related to innovation

Percent of future leaders who are “ready now” to take on the next level of leadership

18% Goal is 80% by the end of 2013

General talent measure needed for a more coordinated approach

Toolkit

27

Notice that the last measure was not defined as an issue in the case study, but it is listed on HCI’s list of most common

measures. Given Peak Experiences decentralized operating model (“grow your own and make it work”), there is a

high likelihood that leadership pipeline is a big issue across the organization. Quality of leadership is also a big factor

in the innovation initiative so there are reasonable connections to consider. It is, therefore, a good addition to the set

of six to eight measures that will be tracked on the talent scorecard.

In the Toolkit, there is also a BMA Segmented Talent Scorecard. The purpose of this tool is to move beyond summary

data and begin to look at different segments or ways to “slice and dice” the information. Average figures can mask

many useful differences that should be addressed. For example a summary turnover figure is not as useful as turn-

over segmented by high potentials, high performers, and all employees.

Two examples are included in this discussion. The first is to examine engagement levels by property location. There

are often significant differences based on the quality of leadership, manager support, and the value-added of the

property. The second example is looking at leadership pipeline by role.

When building a scorecard, look for segments that can add greater meaning and suggest other questions to explore.

Measure: Engagement Levels for Peak Plus by Location

Segment Baseline T1 T2 T3 T4 Comments

Brazil 80% positive

Yellowstone 60% positive

South Africa 83% positive

Scottish Highlands 93% positive

Average for Mature Peak Experience Properties

65% positive

Measure: Leadership Pipeline for Peak Plus by Role


General Manager 0%

Hotel Management 50%

Food and Beverage 75%

Housekeeping 25%

Activities 75%

Security and Maintenance

0%


28

Toolkit

29

Examples of Analytics in Action

Analytics Worksheets .......................................................................................................30

Human Capital Practices Assessment........................................................................ 38


30

%ofStaffRetirement

Eligibility within 5 Years

%ofStaffRetirement


Analytics Worksheets

30%

25%

20%

15%

10%

5%

30%

25%

20%

15%

10%

5%

Low HardtoFillJobs High

Core Roles Strategic Roles

Toolkit

31

%ofStaffRetirement


30%

25%

20%

15%

10%

5%

HighPerformers HighPotentials


32

Diversity Analysis

DiversityFactors Location %HighPotentials %CurrentLeadership

Toolkit

33

Turnover Analysis

Factor %Turnoverwithin2Years %Turnoverwithin2–5Years

Country/Location

Department

Gender

Age

Ethnic Group

High Potential

High Performer

Strategic Role

Manager

Engagement Analysis

Factor VeryDisengaged Disengaged Engaged Very Engaged

Country/Location

Department

Manager


34

High Potential and High Performer AnalysisFactor HighPotentials HighPerformers

% in Strategic Roles

% in Core Roles

% in Different Locations

% in Different Departments

Engagement Levels

Turnover

Hiring AnalysisSource of

CandidatesFirstAppraisal AverageScore

Second Appraisal AverageScore

Retention%for 2 Years

Retention%for 2–5 Years

Toolkit

35

Hiring Analysis

Open Requisitions # of Applicants%ofTop

Candidate Accepting

Rejection Rate

Strategic Role

Core Role

Supporting Role

Leadership Analysis

Turnover% Performance Ratings Promotion% C-Suite

Appointments

Build Leaders

Buy Leaders

Borrow Leaders


36

Innovations AnalysisLocation: Location: Location: Location:

New Patents

New Products

Revenue within 6 Months

Revenue from 6 Months to 1 Year

New Customers

New Markets

Pipeline Analysis%Roleswith2ormore Ready-now

Candidates

%Roleswith1 Ready-now Candidate

%Readyin 1 Year

%Readyin more than 1 Year

Enterprise Leadership Roles

Regional Leadership Roles

Domestic Leadership Roles

Strategic Roles

Toolkit

37

Impact AnalysisLocation: Location: Location: Location: Location: Location:

Sales

Revenue Growth

Customer Satisfaction

Profit

Quality

Engagement Levels

Turnover within 2 Years

Turnover within 5 Years

Turnover of Top Talent

% Ready-now Pipeline for Leadership Roles


38

Human Capital Practices AssessmentDirections:Putan“X”intheboxthatbestdescribesthe current state of this human capital practice in your organization.

1 Poor

2 Fair

3 Average

4 Good

5 Excellent

1. The organization’s business strategy and human capital strategy are closely aligned.

2. The executive team has a deep conviction that talent is the major factor to our success.

3. The CEO spends at least 20% of his/her time on talent related issues.

4. We know who the best performers are.

5. Competencies for key positions have been defined.

6. The impact of retirements and people leaving the organization are well understood.

7. A plan is in place to deal with labor and skill shortages in the future.

8. We are able to attract top talent.

9. The people we hire do a great job.

10. Our employees are engaged and committed to the company.

11. After hiring, people get up the learning curve quickly.

12. People are able to further develop their skills through strong development programs.

13. Individual development plans are in place for everyone.

14. The best people are focused on the most important jobs.

15. Employees are given the opportunity to do what they do best.

16. Managers provide honest and thorough feedback to employees on an ongoing basis.

17. The organization is flexible in deploying talent.

18. Managers are held accountable for developing talent.

19. We retain our best people.

20. Metrics are used to assess the strength of talent management.

Toolkit

39

The Talent Metrics That Matter Worksheets .............................................................40

Measurement Map ............................................................................................................ 54

Talent Scorecard Worksheet .........................................................................................55

Talent Scorecard ...............................................................................................................56

Segmented Talent Scorecard ....................................................................................... 57

Tools


40

Talent Metrics That Matter WorksheetsDirections: For each talent practice, fill in your responses in the worksheet to each question. When a number response is requested (1 – 5), 5 = strongly agree and 1 = strongly disagree. Extra rows are included for you to add other question for your organization.

WorkforcePlanning:KeyQuestions

QuestionsStrategic

Alignment Rating (1–5)

DataAccessand Quality Rating (1–5)

Link to Which Outcome Measures

Possible Actions to Take

WorkforceDemographicsandCharacteristics

1. What is the average age and tenure of employees in our organization?

2. How diverse is our current workforce?

3. What percentage of the workforce is retirement eligible within the next five years?

4. What is the ratio of direct to indirect employees?

5. What is the ratio of contingent employees to total number of employees in various departments?

Workforce Planning MetricsStrategic





1. Are strategic roles filled with average or poor performers?

2. How are high-performers distributed across the organization?

3. Have competencies been developed for leadership and strategic jobs?

4. What is our revenue and profit per employee?

Toolkit

41

Workforce Planning ImpactsStrategic





1. Is there adequate bench strength (two candidates ready-now) for leadership and strategic positions throughout the organization?

2. Are we compensating people at the right competitive levels?

3. Are diverse talent groups properly represented in the future leader talent pools?

4. What capabilities/competencies are in the greatest need both now and in the future?

5. Are we staffed at the right levels?

6. What is the optimum balance among “build, buy, and borrow strategies” for different roles?


42

Talent Acquisition: Key Questions

QuestionsStrategic





Talent Acquisition Tools, Processes, and Policies

1. What is the relative strength of our employment brand among leading candidates?

2. Is our employee value proposition compelling for different types of employees?

3. Have ineffective recruiting programs been discontinued?

Talent Acquisition MetricsStrategic





1. What percentage of first-choice candidates accepts our offers?

2. What percentage of candidates do hiring managers deem unqualified?

3. What percentage of candidates do hiring managers deem as superior to existing employees?

4. What percentage of total hires come from employee referrals?

5. Which recruiting sources provide the best employees and future high potentials?

6. Are our assessments correlating with future success and performance?

7. What is our average time to hire?

8. How many strategic jobs are unfilled?

Toolkit

43

9. What percentage of employees participates in referral programs?

10. Is there a backlog of potential candidates for hard-to-fill positions?

11. How many applications are received per type of open position?

12. Are we attracting diverse candidates?

Talent Acquisition ImpactsStrategic





1. How long does it take employees to become “job proficient?”

2. How does this time to proficiency vary by recruiter, department, and/or hiring manager?

3. What percentage of new hires remains in the company 12-18 months later?


44

Talent Engagement: Key Questions

QuestionsStrategic





Talent Engagement Tools and Processes

1. How is engagement measured?

2. How often is engagement measured?

3. Are we on “best places to work” lists?

4. Is sick time tracked?

5. Are pulse surveys used to gather data quickly on a few key issues?

Talent Engagement MetricsStrategic





1. What is the overall engagement level of the workforce?

2. How do engagement levels vary by country, location, department, and manager?

3. What are engagement levels of top talent and employees in strategic and hard to fill jobs, diverse employees, and in the first two years of employment?

4. What are the incidences of employee complaints and lawsuits?

Toolkit

45

Talent Engagement ImpactsStrategic





1. How has the workplace improved as a result of engagement surveys?

2. Are engagement levels increasing or decreasing over time?

3. Are “engagement conversations” between manager and employee occurring on a regular basis?

4. Have managers been trained on how to improve employee engagement?

5. Have engagement levels been correlated with productivity and turnover?

6. Are engagement data made public?

7. Are managers and leaders held accountable for engagement levels of the workforce?

8. Are engagement levels discussed at the Board of Directors meetings?


46

Talent Retention: Key Questions

QuestionsStrategic





Talent Retention Strategies

1. Are valuable employees who leave encouraged to return?

2. Are managers held accountable for losing valued employees?

3. Are turnover data made public?

4. Is turnover discussed at the Board of Directors meetings?

Talent Retention MetricsStrategic





1. What is the turnover of top talent vs. total turnover?

2. What is the turnover rate for talent in strategic roles?

3. What is the turnover rate for talent in hard to fill jobs?

4. What is the turnover rate within the first two years on the job?

5. What is the turnover rate for diverse talent?

6. What is the turnover rate by location, department, and manager?

7. When do people leave in their tenure with the organization?

Toolkit

47

8. What is the turnover rate for different workforce generations?

9. What are the principal reasons that people leave the organization?

10. What are the percentages of voluntary and involuntary turnover?

11. What percentage of involuntary turnover is related to poor performance?

Talent Retention ImpactsStrategic





1. What constitutes too little or too much turnover for the organization?


48

Talent Development: Key Questions

QuestionsStrategic





TalentDevelopmentTools,Processes,andPolicies

1. Are development programs seen to be much more than “sending people to training?”

2. Have individual development plans (IDPs) been created?

3. Are IDPs made public or posted on the intranet?

4. Do employees have access to coaches and mentors?

5. Are employees encouraged to expand their professional networks as part of the IDP?

6. How many new professional network members are expected each month?

7. Do developmental opportunities exist outside of the work environment?

8. Are action learning projects embedded into training programs?

9. Do employees have options and choices in achieving their developmental goals?

10. Are social media tools employed in communication and learning programs?

Toolkit

49

TalentDevelopmentMetricsStrategic





1. What percentage of employees participates in developmental programs each year?

2. What percentage of payroll is allocated to developmental programs?

3. What percentage of IDPs is completed?

4. Do developmental conversations between manager and employee occur frequently?

5. Which managers have an excellent reputation for being “talent incubators?”

TalentDevelopmentImpactsStrategic





1. Do managers understand the strengths, interests, and aspirations of their employees?

2. Do we challenge employees to improve through stretch and demanding assignments?

3. Have developmental programs resulted in improved job performance on the job and stronger business results?

4. Are managers and employees held accountable for achieving developmental goals?

5. Do managers who do an excellent job of developing employees get properly recognized?

6. Have ineffective developmental programs been eliminated?


50

Talent Deployment: Key Questions

QuestionsStrategic





TalentDeploymentTools,Processes,andPolicies

1. What happens when a stretch assignment turns into the panic zone?

2. Are people given the opportunity to pursue their passions and aspirations?

3. Are there certain jobs and projects that are considered developmental roles?

4. Are managers effective at suggesting next assignments that provide new and challenging experiences for employees?

5. Is the organization flexible in the types of assignments, jobs and team activities it can provide?

6. Are people given the opportunity to pursue their passions and aspirations?

TalentDeploymentMetricsStrategic





1. Are high potentials in strategic and critical jobs?

2. What percentage of employees have their goals directly aligned to organizational goals?

3. What percentage of employees apply for other internal jobs?

Toolkit

51

4. Which groups or departments tend to discourage employee transfers?

5. Which groups or departments attract employees and encourages movement?

6. Are high potentials in strategic and critical jobs?

TalentDeploymentImpactsStrategic

Alignment Rating

(1–5)

DataAccessand

Quality Rating

(1–5)

Link to Which

Outcome

Measures

Possible Actions

to Take

1. Is the best talent focused on the most important activities and jobs?

2. Is the contribution of each employee to the overall mission clear?

3. Does a line of sight exist between a person’s job and the business strategy and values of the organization?

4. Are people given the opportunity to do what they do best?

5. How does the organization help employees balance life, community, and job priorities?


52

Leading & Managing Talent: Key Questions

QuestionsStrategic





Tools, Processes, and Policies

1. Are executives directly involved in the talent calibration or review process?

2. Does a leadership competency model exist?

3. How often is the leadership competency model reviewed?

4. What is the acceptable ready-now pipeline for leadership positions?

5. Are leaders evaluated both in terms of performance and adherence to values?

6. What percentage of a leader’s compensation is tied to developing other leaders?

Leader/Manager MetricsStrategic





1. Do executives serve as mentors and teach in leadership development programs?

2. Do leaders spend 30% of their time on talent issues?

3. What percentage of leaders are developed internally or brought in from other organizations?

4. What is the success rate of developed vs. acquired leaders?

Toolkit

53

5. What percentage of leadership roles have met this ready-now standard?

6. Which leadership programs have been more successful in producing excellent leaders?

7. Which leaders have an excellent reputation for developing other leaders?

8. What leadership programs have been discontinued due to poor results?

Leader/Manager ImpactsStrategic





1. Are talent issues and accomplishments regularly discussed in town hall meetings?

2. Are talent issues and accomplishments regularly discussed in executive staff meetings and at the Board level?

3. Do leaders live, share, and scale the right values?

4. Are leaders held accountable for developing talent?


54

The Measurement Map

Strategy Initiative Leading Indicators BusinessResults

Adapted from Pease, Byerly, and Fitz-enz (2013)

Toolkit

55

Talent Scorecard Worksheet

Measure Relationship to Strategy Link to Results Segments


56

Talent Scorecard

Measure Baseline T1 T2 T3 T4 Comments

Toolkit

57

Segmented Talent Scorecard



58

Toolkit

59

BMA Journal........................................................................................................................60

BMA Action Plan ................................................................................................................. 61

BMA Journal and Action Planning Tools


60

BMA Journal

Global Talent Practice WhatYou’veDone WhatYou’veLearned

Strategic Workforce Planning

Talent Acquisition

Employee Development and Deployment

Engagement and Retention

Leadership Identification and Development

Integrated Talent Management

Toolkit

61

BMA Action Plan

Global Talent Practice Actions DateStarted Date

Completed Results

Strategic Workforce Planning

Talent Acquisition

Employee Development and Deployment

Engagement and Retention

Leadership Identification and Development

Integrated Talent Management


62

Toolkit

63

Talent Metrics That Matter ..............................................................................................65

Foundations of Strategic Workforce Planning ......................................................... 79

100 Questions You Can Answer With HR Analytics ...............................................99

Articles and Resources


64

Toolkit

65

HCI White PaperJune 2012

Talent Metrics That Matter


66

Toolkit

67


1 Copyright © 2012 Human Capital Institute. All rights reserved.

The topic of talent metrics always seems to generate a great deal of discussion.

Part of its appeal is the hope of finding the one overarching metric, the

universal panacea, or as Jack Palance in City Slickers said “the one thing

you need to know” to unlock the complex field of talent management. It is

rarely this simple, but the quest for better data, more thoughtful analysis and

sounder decisions is absolutely essential if HR is to play a more valued role in

organizations. The next step to HR becoming a Decision Science rests solidly

on the foundation of more meaningful data and analytics.

David C Forman, Chief Learning Officer, HCI. 2012

Pitfalls to Keep in MindOne practical step in moving toward establishing the Decision Science of HR is to develop your own Talent Scorecard. A Talent Scorecard is simply a set of six to ten human capital measures that are tracked over time. Every organization should develop its own Talent Scorecard as a way of elevating the importance and visibility of Talent Management and demonstrating a strong commitment to improve and leverage the talent of the organization. There are some common pitfalls to avoid in crafting the right number and type of measures to include in your Talent Scorecard.



68



• Measuring the wrong things—It’s easy to measure the wrong things. Companies frequently measure activities, time and cost because it is easy to get these data. It’s much harder to measure quality, results and value. As Einstein said, “Just because something can be counted, it doesn’t mean that it counts.”

• Focusing on the inconsequential many and not the consequential few—The art in measurement is to focus on a core set of indicators that are truly meaningful. The tendency is: if it moves, measure it; because someone, somewhere might want to know about this indicator. The end result is data paralysis and confusion. It is best to spotlight six to ten meaningful, consequential measures.

• Moving beyond summary data—A statistic like “our turnover rate is 9%” is only marginally useful. Instead, look for productive ways to segment the data so that turnover, for example, can be examined in light of different talent levels, departments or even by managers. Average figures can mask significant variations, and it is important to “slice” the data to look for meaningful patterns and trends.

• It’s what you do with the data that matters—Metrics are only valuable if they result in better decisions. Gathering data that are not used, is a waste of time and energy. A leading engagement vendor has said that engagement levels rise by 5 to 10% by simply by acting on the findings in the engagement survey and making the results public.

Starting with the Right QuestionsThe process of finding the right measures for a Talent Scorecard is not easy. The tendency is to go too narrow, too quickly. It is best to get the bigger picture first and not identify specific metrics too early in the process. The bigger picture is provided by HCI’s model of the Talent Lifecycle. It provides the broad perspective of the whole talent management process and may suggest entire areas that you may have overlooked.

Toolkit

69



The HCI Talent Lifecycle

Once this broader vision has been achieved, then concentrate on the right questions to ask for each of the seven talent practices. Resist the temptation to jump prematurely to a favorite metric or two. Focusing on key questions first can help determine more effectively whether the metrics are relevant, timely and valid.

The following list of questions (by talent practice area) has been gleaned from research, best practices and HCI’s courses over the past seven years. It is important to remember that this “library of measures” does not and should not apply to each organization. Review the following talent practices questions, and select the ones that you believe are most important to your organization. The final step in assembling your own Talent Scorecard will be at the conclusion of this article.

Plan

Retain Acquire

Engage

DevelopDeploy

Lead

Measure & Align


70

Plan

Retain Acquire

Engage

DevelopDeploy

LeadMeasure & Align



Workforce Planningn What is the average age and tenure of employees in our organization?

n How diverse is our current workforce?

n What percentage of the workforce is retirement eligible within the next five years?

n Is there adequate bench strength (two candidates ready-now) for leadership and strategic positions throughout the organization?

n Are diverse talent groups properly represented in the future leader talent pools?

n Have competencies been developed for leadership and strategic jobs?

n What capabilities/competencies are in the greatest need both now and in the future?

n How are high-performers distributed across the organization?

n Are strategic roles filled with average or poor performers?

n Are we staffed at the right levels?

n What is the ratio of direct to indirect employees?

n Are we compensating people at the right competitive levels?

n What is the ratio of contingent employees to total number of employees in various departments?

n What is the optimum balance among “build, buy and borrow strategies” for different roles?

n What is our revenue and profit per employee?

Plan

Toolkit

71



Talent Acquisitionn What is the relative strength of our employment brand among leading

candidates?

n Is our employee value proposition compelling for different types of employees?

n Are we attracting diverse candidates?

n What percentage of first-choice candidates accepts our offers?

n What percentage of candidates do hiring managers deem unqualified?

n What percentage of candidates do hiring managers deem as superior to existing employees?

n Which recruiting sources provide the best employees and future high potentials?

n Are our assessments correlating with future success and performance?

n What is our average time to hire?

n How many strategic jobs are unfilled?

n Is there a backlog of potential candidates for hard-to-fill positions?

n How many applications are received per type of open position?

n What percentage of employees participates in referral programs?

n What percentage of total hires come from employee referrals?

n How long does it take employees to become “job proficient?”

n How does this time to proficiency vary by recruiter, department and/or hiring manager?

n What percentage of new hires remains in the company 12 to 18 months later?

n Have ineffective recruiting programs been discontinued?

Acquire

Plan

Retain Acquire

Engage

DevelopDeploy

LeadMeasure & Align


72



Talent Engagementn How is engagement measured?

n How often is engagement measured?

n What is the overall engagement level of the workforce?

n How do these levels vary by country, location, department and manager?

n What are engagement levels of top talent and employees in strategic and hard to fill jobs, diverse employees and in the first two years of employment?

n Are engagement levels increasing or decreasing over time?

n How has the workplace improved as a result of engagement surveys?

n Are pulse surveys used to gather data quickly on a few key issues?

n Is sick time tracked?

n What are the incidences of employee complaints and lawsuits?

n Are we on “best places to work” lists?

n Are “engagement conversations” between manager and employee occurring on a regular basis?

n Have managers been trained on how to improve employee engagement?

n Have engagement levels been correlated with productivity and turnover?

n Are engagement data made public?

n Are managers and leaders held accountable for engagement levels of the workforce?

n Are engagement levels discussed at the Board of Directors meetings?

Engage

Plan

Retain Acquire

Engage

DevelopDeploy

LeadMeasure & Align

Toolkit

73



Develop

Talent Developmentn Are development programs seen to be much more than “sending people to

training?”

n What percentage of payroll is allocated to developmental programs?

n What percentage of employees participates in developmental programs each year?

n Have individual development plans (IDPs) been created?

n Are IDPs made public or posted on the intranet?

n What percentage of IDPs is completed?

n Do developmental conversations between manager and employee occur frequently?

n Do managers understand the strengths, interests and aspirations of their employees?

n Are employees encouraged to expand their professional networks as part of the IDP?

n How many new professional network members are expected each month?

n Do developmental opportunities exist outside of the work environment?

n Are action learning projects embedded into training programs?

n Do employees have access to coaches and mentors?

n Are social media tools employed in communication and learning programs?

n Do we challenge employees to improve through stretch and demanding assignments?

n Do employees have options and choices in achieving their developmental goals?

n Have developmental programs resulted in improved job performance on the job and stronger business results?

n Are managers and employees held accountable for achieving developmental goals?

n Do managers who do an excellent job of developing employees get properly recognized?

n Which managers have an excellent reputation for being “talent incubators?”

n Have ineffective developmental programs been eliminated?

Plan

Retain Acquire

Engage

DevelopDeploy

LeadMeasure & Align


74



Talent Deploymentn Does a line of sight exist between a person’s job and the business strategy and

values of the organization?

n Is the contribution of each employee to the overall mission clear?

n What percentage of employees have their goals directly aligned to organizational goals?

n Is the best talent focused on the most important activities and jobs?

n Are high potentials in strategic and critical jobs?

n Are people given the opportunity to do what they do best?

n Is the organization flexible in the types of assignments, jobs and team activities it can provide?

n Are managers effective at suggesting next assignments that provide new and challenging experiences for employees?

n Are there certain jobs and projects that are considered developmental roles?

n What happens when a stretch assignment turns into the panic zone?

n Are people given the opportunity to pursue their passions and aspirations?

n What percentage of employees apply for other internal jobs?

n Which groups or departments tend to discourage employee transfers?

n Which groups or departments attract employees and encourage movement?

n How does the organization help employees balance life, community and job priorities?

Deploy

Plan

Retain Acquire

Engage

DevelopDeploy

LeadMeasure & Align

Toolkit

75



Leading and Managing Talentn Are executives directly involved in the talent calibration or review process?

n Do leaders spend 30% of their time on talent issues?

n Do executives serve as mentors and teach in leadership development programs?

n Are talent issues and accomplishments regularly discussed in town hall meetings?

n Are talent issues and accomplishments regularly discussed in executive staff meetings and at the Board level?

n Does a leadership competency model exist?

n How often is the leadership competency model reviewed?

n Are leaders evaluated both in terms of performance and adherence to values?

n Do leaders live, share and scale the right values?

n What percentage of leaders are developed internally or brought in from other organizations?

n What is the success rate of developed vs. acquired leaders?”

n What is the acceptable ready-now pipeline for leadership positions?

n What percentage of leadership roles has met this ready-now standard?

n Which leadership programs have been more successful in producing excellent leaders?

n Are leaders held accountable for developing talent?

n What percentage of a leader’s compensation is tied to developing other leaders?

n Which leaders have an excellent reputation for developing other leaders?

n What leadership programs have been discontinued due to poor results?

Lead

Plan

Retain Acquire

Engage

DevelopDeploy

LeadMeasure & Align


76



Talent Retentionn What constitutes too little and too much turnover for this organization?

n What is the turnover of top talent vs. total turnover?

n What is the turnover rate for talent in strategic roles?

n What is the turnover rate for talent in hard to fill jobs?

n What is the turnover rate within the first two years on the job?

n What is the turnover rate for diverse talent?

n What is the turnover rate by location, department and manager?

n When do people leave in their tenure with the organization?

n What is the turnover rate for different workforce generations?

n What are the principle reasons that people leave the organization?

n What are the percentages of voluntary and involuntary turnover?

n What percentage of involuntary turnover is related to poor performance?

n Are valuable employees who leave encouraged to return?

n Are managers held accountable for losing valued employees?

n Are turnover data made public?

n Is turnover discussed at the Board of Directors meetings?

Retain

Plan

Retain Acquire

Engage

DevelopDeploy

LeadMeasure & Align

Toolkit

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The Strategic FilterWith these questions in mind, the next step is to winnow the list based on your own organization’s situation and priorities. Your organization, for example, may not have a turnover issue; or because you have a young workforce, retirement eligibility is not a concern at all. These two factors would then be omitted from the Talent Scorecard.

The next filter is to array your organization’s strategy and initiatives, and then align the proposed measures to them. If the alignment to the strategy and initiatives is not clear, then consider changing the list and adding other measures. Make sure that you are not just measuring activities (that are easy to measure) but results as well. When you have selected your six to ten measures, make a draft of the Talent Scorecard and share it with influential leaders. Get their comments and ownership, and be prepared to make changes. As a final step, try piloting the Talent Scorecard in several groups before you try to implement across the entire organization.

HR professionals, it is said, are good with words, but not numbers. This needs to change rapidly as HR is being asked to play a more significant role in strategic and operational decisions. There is an opportunity to lead the discussion around human capital measures, just as finance leads in the operations and tangible asset arenas.

The quest for the right metrics needs to follow a path that first avoids the pitfalls of premature attempts to infuse talent metrics into the organization. It then needs to have a larger view of the whole talent management process and be able to “zoom out” by asking the right questions first. Everyone understands questions, and it is useful to have conversations about them without trying to rush to specific metric or benchmark. And finally, a filter needs to be applied that aligns these questions to the context and strategy of the organization. Without this filter, any question or metric might suffice. The end result is a Talent Scorecard of six to ten measures that can be recorded, monitored and tracked so that the organization is better aware of the effectiveness of its most significant talent practices. When this is done, HR as a Decision Science is on the horizon.

About the AuthorDavid Forman serves as an executive director and Chief Learning Officer for the Human Capital Institute. He is responsible for designing, developing and teaching the HCI Designation programs, as well as serving as a liaison to HCI’s academic and learning communities.


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Foundations of Strategic Workforce Planning


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The war for talent, the pace of change and the drive for innovation are all factors that create the perfect storm in organizations today. How organizations respond to these challenges will determine whether they thrive or wither. The global marketplace continues to be a high-stakes game where the ability to execute strategy requires a skilled, capable workforce.

Strategic Workforce Planning is one of the major processes which help organizations mitigate risk, see “around corners” and prepare for uncertain futures. Over the last several years, the Human Capital Institute (HCI) has worked with literally hundreds of organizations to enable them to develop a replicable methodology, build expertise and use a set of tools that provide the workforce with the skills and capabilities needed to execute the company’s strategy both now and in the future.

The HCI methodology for Strategic Workforce Planning is depicted in the following visual. Each part of the model will be briefly discussed. Examples will also be provided to illustrate important concepts and parts of the model.

Foundations of Strategic Workforce PlanningWritten by Bruce Walton and David Forman


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Before discussing the components of the HCI model, there is an important definition and distinction to be made. A workforce plan identifies the skills and capabilities of the workforce needed to execute the organization’s strategy and achieve success. There are two types of workforce planning. Operational workforce planning focuses on the skills and capabilities needed within the next 6 to 18 months. This is vital for an organization to be successful. It often involves staffing decisions over the short term to ensure that the company can meet growing or diminishing demand. This type of workforce planning usually involves “if—then” operational forecasting from the current state of the workforce.

Strategic Workforce Planning has a different time horizon and focus. It looks three to five years in the future. It anticipates new skills, roles and situations that might not exist today. It deals with variable futures that cannot be predicted, but can be prepared for. It also identifies the roles within the organization that are most vital to executing strategy and achieving future success.

Both types of workforce planning are critical and necessary. Most organizations today are in the operational phase but wanting to move to a more strategic approach. It is the strategic approach that is the focus of the HCI methodology, and it is this strategic approach that provides the greatest value and service to the future and sustained success of the organization.

Business Strategy

No ChangeFuture State

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Figure 1: The HCI Strategic Workforce Planning Model

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The Business Strategy

Today, we are squarely in the talent age. No longer will business success and value be a function solely of an organization’s hard assets or tangibles. This migration to the talent age has been documented by researchers and academics for well over 20 years. Increasingly, value is driven by intangibles such as: brand, intellectual property, quality of customers and partners, number of patents, unique processes, and culture. These intangibles provide uniqueness and differentiation in the marketplace and they are generated by the organization’s talent.

The business strategy must drive the workforce strategy, and the two must be closely aligned. A strategy of cost leadership, for example, will have different workforce implications from a strategy of customer intimacy. However, strategic planners don’t integrate talent capabilities and issues into their planning early enough to be effective. It only makes sense to link workforce planning activities to the business strategy; the former is a pre-requisite to achieve the latter.

Every organization, business unit or department is driven by a strategy—whether explicitly or implicitly expressed. A strategy is a statement of the value and competitive differentiation provided by the organization. It should be a short statement that can be easily understood and communicated to others. It should differentiate the organization from others focusing in the same marketplace. It should also be clear from the strategy what the organization is NOT going to do.

A good strategic statement has objective, scope and advantage components. An example for the Edward Jones Company is the following: To grow to 17,000 financial advisors by 2012 by offering trusted and convenient face-to-face financial advice to conservative individual investors who delegate their financial decisions, through a national network of one-financial-adviser offices.

In addition to strategy, each year an organization also has various strategic initiatives that are important for its yearly and long-term operation. Examples of such strategic initiatives might be an acquisition, the installation of a new ERP system, a six-sigma focus, overcoming a strong competitor or entry into a new market. These initiatives also impact the workforce and require distinct capabilities for successful execution. These initiatives can vary from year to year, depending on their complexity, time to implementation and the external context.

The organization’s strategy and its strategic initiatives drive the Strategic Workforce Planning process. They provide the guideposts for what to do and how to equip the workforce to implement and execute the right tasks. Without strategic direction, the SWP process becomes rudderless and not worth the time and investment.

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Segmenting Roles

The business strategy succeeds or fails based upon the execution of that strategy by people—but not any random collection of people. It is the people in the roles that are most vital to implementing the strategy of the organization that provide the greatest value. It is important to state that all roles are important—that is why salaries are paid to people in those roles—but some add more strategic value than others.

Strategic roles can be easy or difficult to discern. It is, as the name implies, always driven by the organization’s strategy and strategic initiatives. For innovative technology-driven companies, engineers and design teams have strategic roles. For organizations that specialize in customer satisfaction and loyalty, customer-facing roles are strategic. For companies that are acquiring a competitor, specialists in mergers and acquisitions are extremely vital. Sometimes, a seemingly small role, such as a welder for an energy company that has aging oil refineries, can be strategic so that existing refineries can suffice while new plants are under construction. It is also a temptation to identify all the senior roles with the most expensive salaries as being strategic, but this is often not the case. It is all driven by the strategy of the organization.

Strategic Workforce Planning can be a time consuming process if completed for the entire workforce. It is, however, important to start somewhere; and the best place to start is with the roles that provide the most value to the enterprise. HCI has termed these strategic roles, and they are followed by other role segments. The following table displays the spectrum of roles described in HCI courses. Other names can be used; it is only important that within an organization the same terms are used and communicated so that everyone uses the same language and has the same expectations.

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Role Description and Characteristics % Total Roles

Strategic • Directly impact strategy delivery

• “Never out” roles, as you never want to have vacancies in these roles

• “Mission Critical” roles (government)

• Not defined by organizational chart level but by value delivered

• Succession plans and career plans should be in place for talent in these roles

10–15

Core • Relate to operational excellence and revenue production

• Often include: Sales, Marketing, Logistics, Development and Supply Chain

• Usually tightly aligned to either the development or delivery of a product or service

20–30

Supporting • These roles keep “the lights on”

• Often Include functions such as: IT, HR, Admin, Customer Service, Security, Facilities and Finance

• A business must have infrastructure to operate

• Many external organizations compete with these internal functions on cost, efficiency and responsiveness

• Automation and outsourcing strategies are often employed to manage the costs and efficiency of these functions

60–70

Misaligned • Those roles that no longer are required, based on the strategy

• Early identification provides time to re-train and re-deploy these resources

• Be careful to not identify a group as misaligned if they are still needed to maintain the status quo while a new strategy is implemented

As few as possible

Table 1: Role Segmentation


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As a final step in the segmentation process, identify a list of competencies that the strategy will demand of this role. For example, assume that an organization has identified that a certain senior engineering role will be critical to develop a new product. Since the organization has a deep talent pool of engineers with the right technical skills, it might appear that there is little talent risk. However, the new strategy also requires that many of the product components be sourced and assembled in-country from many global suppliers before being shipped to the company’s main facility for final assembly. Thus, to manage this overall process, engineers will also need to have competencies in: communication skills, negotiations and consensus building; and be fluent in at least one additional language and / or have global experience. These new requirements will have significant impacts on the current talent pool and the acquisition requirements for new engineers.

Environmental Scan

In strategic planning, project teams often use the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis as a way to scan and analyze the environment. Strength and Weakness scans assess the organization’s internal capabilities, while Opportunity and Threat scans are focused on the external environment.

In a similar fashion, the HCI Strategic Workforce Planning model uses the environmental scan to examine both the internal and external supply and demand for talent. It focuses specifically on the controllable and non-controllable factors that will impact the workforce. The scan serves two purposes: It supports the development and management of a comprehensive 360 degree view of the talent and the output provides a framework for the futuring activities that come later in the model.

Figure 2 depicts the HCI environmental scanning framework. This tool helps workforce planners ask the right questions, gather the right data and trends and then prioritize them. The two quadrants on the left side of the model, Rest of the World and The Organization, describe forces that can affect the Talent Demand. The quadrants on the right side, Labor Market and Employees, describe factors that impact Talent Supply.

Figure 2: The HCI Environment Scanning Tool

Environmental Scan

Organizational Factors

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Labor Market Supply

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Demand

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Let’s look at an example to better understand the value of an environmental scan and how it can be used. Suppose a company that has traditionally had a domestic footprint has adopted a strategy for global expansion. The senior team has targeted several countries for manufacturing expansion as well as significant market penetration for the company’s products. The workforce planning team, a cross-functional group including business personnel, has come together to brainstorm the workforce planning impacts of this strategy. As part of their work, they use the environmental scan to brainstorm and prioritize the factors that impact the talent required to support the global expansion strategy.

Table 2: Rest of the World (ROW) Factors

ROW Factors (External Demand)

Questions

Political Climate / Stability • What type of governmental structure is in place?

• What kind of relationships does the government have with the business community?

Population Demographics • Is the population getting older, younger?

• What are the education levels of the country?

Legal / Regulatory Environment

• Labor laws?

• Worker’s rights?

Economy / Cost of Living • Global economy?

• Economic stability / forecast?

Culture / Social Patterns / Religion

• Are there cultural issues that will affect operations and access to talent?

• Are there religious issues that will affect operations and access to talent?

• What are the buying and consumer preferences that can impact the business?

Competitors • Are core competitors or category competitors operating in this country?

• How/where do they source their talent?

Physical Environment / Climate

• What are the basic environmental and climactic issues?

• Are there any geological risks or factors to be considered?

Health, Human Services and Educational Infrastructure

• Can the local country supply appropriately educated talent?

• How would the educational environment affect the likelihood of attracting expatriates?

Transportation / communication infrastructure

• What is the status of transportation and communication infrastructure?

• How would these impact the business and employees?


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The labor market traditionally is a talent source. However, the labor market can also be a threat as competitors move in and out of the marketplace. In our global expansion example, the workforce planning team would want to gather information about the factors listed below in Table 3. Again, many of these questions may be answered with publically available information. An organization’s current employees are also a good source of information regarding the labor market.

Labor Market Factors (External Supply)

Questions / Impacts

External Supply of Talent • How large is the external market of available workers?

• How qualified for strategic roles?

• How trainable for new skills?

Employment brand • What impact will the organization’s talent brand have in this country? Will it attract talent?

• How much time/resource will need to be spent establishing the brand?

Competitors • Are competitors already there and a potential talent acquisition source?

• Are other competitors primed to enter the market?

Trade / professional associations • Do they exist?

• Could they be sources for talent or trend data?

Universities and professional schools • What is the forecast of graduates that could fill critical / core roles?

• What kind of linkages exists /could exist between academia and the business sector?

Contingency staffing capabilities • Do your current staffing partners serve these countries?

• Are there in-country organizations that can provide contingency labor for specifics roles?

Table 3: Labor Market Factors

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The Organization has already created the business demand. In our example, the workforce planning team needs to monitor corporate activities, initiatives and program to ensure continuing alignment. Some of this information is publically available, internally available only or confidential and not readily available. These data may be much more qualitative in nature and, depending on the organization, politically charged. It is critical to a keep a pulse on the organization and its commitment to the strategy. The team would want to monitor these factors in Table 4 below, among others.

Organizational Factors (Internal Demand)

Questions / Impacts

Strategy • What is the strategy?

• What has the organization communicated to the marketplace?

• Is there strong / adequate support for the strategy at the C-level and has that support been communicated across the organization?

• What are the talent implications?

Strategic Initiatives • What are the strategic initiatives?

• How have these been communicated to the workforce?

• What are the talent implications?

Resources Allocation • What resources are needed to support the strategy?

• How does the company allocate additional resources for a strategic initiative?

Corporate Assets • What corporate assets exist that can support this initiative and/or need to be considered in the execution of the strategy?

The employees comprise the current talent supply. At a high-level, what are the demographics of the talent pool for the critical positions? In our global example, let’s assume that manufacturing department managers, senior engineers and

Table 4: Organizational Factors


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senior account executives have been identified as critical roles to deliver this strategy. It’s important to gather qualitative as well as quantitative information here. The quantitative information may come from the finance and HR systems. To get some of the qualitative information, the team may talk to managers and employee groups. For each of these groups, the workforce planning team would want to identify the following:

Employee Factors (Internal Supply)

Questions / Impacts

Supply • How many?

• What are the key skill sets?

• Main geographical locations?

Tenure • Average Tenure?

• % retirement eligible?

Engagement Levels • Segmented as much as possible

• Are there engagement trends?

Turnover % • Segmented as much as possible

• What are the trends?

Feeder Pipeline / Talent Pools • Where will more of these employees come from in the organization?

• How long will readiness take?

The next step is to prioritize the factors. It is unrealistic to think that each factor in the environmental scan is of equal value or that all the factors merit tracking. Evaluate each factor against 2 criteria:

1. Business Impact: How might this factor affect the “bottom line?” What impact can it have on the Profit / Loss (P&L) of the organization?

2. Strategy Impact: How does this factor affect where the organization is headed, long-term?

In our example, the global economy (Rest of the World factor) might have a high business impact because a slow or sluggish economy might results in lower than expected revenue and margin. However the economy might have a low impact on the business strategy if the company has made a long-term commitment to its strategy and is willing to ride out a short-term economic dip. So the team

Table 5: Employee Factors

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would rate this factor (H, L) and place it in the top left box in the grid. Or, the team might have captured age as an Employee factor. This might be rated as a high impact factor for both the business and the strategy. From a business perspective, there could be a risk in not having enough of these resources in the right place, thus potentially driving up cost and delaying implementation. From a strategy perspective, if it becomes impossible to find the talent, this could affect the organization’s ultimate commitment to executing this strategy. So, the team places the aging factor in the top right hand block in the grid (H, H).

H, L Economy

H, MH,H

Aging

M, L M, M M, H

L, L L, M L, H

The factors with the highest priorities are the ones that should be focused on. Factors can come and go and change in value. So the team should regularly revisit the grid and revisit the factors. The goal is to develop a set of factors and then monitor them over time. In the final analysis, the important factors should become key inputs to the unit’s futuring process.

Current State Analysis

At this point, the team needs to delve into the workforce in detail to understand current capability and capacity. Some of this information will have been gathered as part of the environmental scan, but the current state analysis should be much more exhaustive. The team assembles data and information about a specific role. This activity can be simple or complicated depending upon access to data. The workforce planning team may need to work with IT, HRIS, Finance and potentially external vendors to pull together both quantitative and qualitative data about this segment. The following list includes some of the data elements that should be included:

• Number of incumbents

• Employment status (full time, part-time, contract)

Figure 3: The Environmental Scanning

Prioritization Grid

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• Locations

• Demographics

• Competencies and skills

• Diversity criteria

• Compensation data

• Tenure

• Retirement eligibility

• Performance ratings

• Potential

• Talent level (A, B, etc.)

• Engagement scores

• Status of successors

In addition, the team should gather anecdotal data. Useful information can be gleaned by talking to employees and managers, holding focus groups, and reading blogs and discussion group threads.

It is also useful to segment strategic roles into specific sub-groups for further analysis. To follow our earlier example, the team might want to sort the strategic roles by language capability, global experience, learning agility, and ability to relocate. More useful insights often emerge from these smaller segmented groups. Larger groups tend to hide patterns that can be very insightful and useful for deploying the workforce.

Futuring

A methodology and set of techniques to explore the future are critical components of the strategic workforce planning arsenal. Futuring techniques have been in existence since the middle of the 20th century and have been employed across organizations to help them envision a targeted future.

In the HCI model, a specific futuring technique is employed: scenario planning. The x/y axis framework is used to support the creation a set of stories, or scenarios, about the future. It’s important to understand that this activity is not about predicting the future. No one can do that. This is about setting up a framework to have a creative discussion about future possibilities and by virtue of those conversations, identify opportunities to develop an agile workforce—one that has the best chance of meeting the challenges of as unforeseen and evolving future.

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Refer to Figure 4 for an example of how this technique can be applied in the example discussed earlier. An external factor, the economy, is used as one factor. The extremes of that factor are represented by Economic Recovery at one extreme and Economic Stagnation at the other. Talent availability will be the second factor for the framework. The two extremes are full talent supply vs. inadequate talent supply.

The team continues to describe each scenario. As they do this, they think about what the business results might look like, how employees, supplier, customers and other stakeholders might view the organization at this point in time. The key question is: Is the company been able to achieve its strategy, given this set of parameters or constraints?

The team uses the boundaries created by these factors to describe the organization in 3–5 years. Let’s look at Narrative 1 as an example. If there’s an economic recovery and full access to talent, this probably creates a desirable future state. The team might describe the organization as follows:

• Increased market share

• High employee engagement

• Stresses on supply chain

• Increased competition

• Scramble for top talent continues

• Company listed on the 100 Best Places to Work

It is often the case that the team will identify one or more desired future states. And, they may define a No Change Future State—this is typically described as “business as usual” and often is not a desired future. The important thing

Figure 4: Scenario Planning Framework and Example

Economic Recovery

Economic Stagnation

Full Talent Supply

Inadequate Talent Supply

Narrative 1

Narrative 3

Narrative 2

Narrative 4


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to remember is that the exercise does NOT identify THE future state. That is obviously impossible. What this activity does provide is a framework to explore possible futures. From these discussions the team may arrive at a targeted future state—a good and perhaps desired bet for the future. Given that picture, the team can identify what impacts that future has on the workforce.

Gap Analysis

At this point, the workforce planning team has a current state analysis and a future state analysis. The team uses these documents to identify the gaps and then prioritize them. When the team does a gap analysis, it is role specific. As an example, let’s look at the senior account executive in our global expansion case.

Gap Dimension Current State Future State Relationship to Strategy

Role Value • Core • Strategic (at least for 2–3 years)

High

Headcount Requirements

• 10 • 50 High

Sales competencies

• Product sales expertise

• Excellent territory management

• Product sales expertise

• Account development skills

• Consultative sales skills

High

Tenure • Average of 10+ years with the organization

• Average of 3–5 years in country with the organization

Low

Experience • 5 years in current role or similar role

• 8–10 years in successful and similar account executive role

Medium

Personal Characteristics

• Stable

• Solid performers

• Good team players

• Self-starter

• Innovative

• Leadership capabilities

Medium

Engagements • Med-High Engagement

• High Engagement Medium

Table 6: Gap Analysis Example

Business Strategy


Gap Analysis

Futuring


Monitor andReport

Action Planning

EnvironmentalScan

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ScenarioPlanning

Gap Analysis

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Futuring


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Action Planning

Action planning is about solutions and implementation. The team must identify solutions for the gaps and put plans in place to close those gaps. These activities require all the processes and procedures one associates with excellent project management: clear objectives, access to the appropriate resources, adequate budget, clearly defined milestones and deliverables—as well as clear communication and change management strategies.

At a high-level, there are a number of approaches that can be used to close talent gaps. These have been written about by Dave Ulrich as well as HCI. Table 7 describes these strategies and indicates how they might be applied to the senior account executives role in our example.

Strategy Description Case Study Application

Buy • Hire talent externally; or staff from internal candidates.

• Leverage the captive workforce as well as the external labor force.

• Define the new job description and begin to develop an external pipeline for this role.

• Search internal talent database for matches.

• View high-potential cohorts and succession plans.

Build • Develop internal resources through training, stretch assignments and mentoring.

• Review succession plans

• Consult with learning function for advice about fast tracking prime candidates through the learning process.

Borrow • Use consultants, contractors, out-sourcers.

• Determine if there are possibilities to find contract-to-hire candidates available in-country.

Bind • Make sure the right resources stay in the organization.

• Ensure that key players and roles are secured as part of the longer-term strategy.

Bounce • Re-deploy talent and roles that cannot be reskilled or redeployed.

• Take a hard look at incumbents and determine if they have the capabilities for the new role.

Organizational Design

• Re-architect appropriate elements of the organization to better respond to the market.

• Review the organizational design to ensure that it will meet the business objectives.

Balance • Use the right combination of all these tools to develop the workforce that is needed to deliver the strategy.

• In this situation, buy and build strategies are probably the ones that will most clearly meet the objective.

Business Strategy


Gap Analysis

Futuring


Monitor andReport

Action Planning

EnvironmentalScan

SegmentRoles


ScenarioPlanning

Action Planning

Business Strategy


Gap Analysis

Futuring


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Table 7: Action Planning


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Monitor and Report

The final step in the process is to monitor the action plans and report out to the team and leadership about progress. Again, this implies using appropriate project management and reporting tools. Do not reinvent the wheel here. If the organization already has standards for these activities, make use of them. Agree on protocol issues such as: frequency of reporting, metrics and escalation procedures.

Final Thoughts

The Strategic Workforce Planning (SWP) methodology comprises a wide range of tools and techniques that can be used to align the workforce with strategy. Over time, the goal is to have the workforce strategy tightly integrated with the overall business strategy so that planning is done in a cohesive fashion. The SWP process cannot predict the future but it prepares the organization for possible futures. It helps to mitigate future risk, align the organization, and improve agility and readiness. It is one of the most strategic services that HR can provide and is therefore an essential capability to possess. While SWP is not an exact science, it is a language and process that the organization can continue to sharpen and improve.

“...building competitive advantage requires the right workforce strategy, but that doesn’t mean simply putting people first. It means putting strategy first and developing a workforce that executes that strategy.”

—Becker, Huselid and Beatty, The Differentiated Workforce

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About the Authors

David Forman joined HCI in 2005, and currently serves as Chief Learning Officer. As CLO, Mr. Forman is responsible for curriculum design, development of HCI’s certification and designation programs, and serves as a liaison to HCI’s academic and learning communities worldwide. Prior to HCI, Mr. Forman designed, developed and implemented technology-based training solutions for leading organizations, including IBM, Federal Express, DuPont, Deloitte & Touche, Exxon, Microsoft, the Ford Foundation, the Children’s Television Workshop, Sony and AT&T. Mr. Forman has written over 40 articles and books in the fields of human capital, globalization, training, evaluation, return on investment (ROI), and instructional design; and is a frequent presenter at major industry conferences and seminars, both in the United States and abroad. He is also the principal author and developer of the Global Learning System for the Society for Human Resource Management (SHRM).

Bruce Walton is the principal at Walton & Associates, a consulting firm providing services in learning, talent management and human resource strategy. Prior to founding Walton & Associates, Bruce was a Senior Advisor at TPI (www.tpi.net), where he advised clients on aspects of their service delivery alternatives and provided expertise in project management, HR transformation, shared services, process re-design and change management. In addition, Bruce was the process lead for learning and talent management services at TPI. In this role, he used his specific expertise in these areas to provide assessment and advisory services to TPI clients who were re-evaluating their approaches and sourcing strategies in talent management, learning and workforce development.Prior to joining TPI, Bruce worked as a Senior Consultant for Watson Wyatt & Company (www.watsonwyatt.com) for over 11 years. At Watson Wyatt, he advised Fortune 1000 clients in solving complex problems in the areas of HR outsourcing and HR technology.

Before joining Watson Wyatt, Bruce spent 12 years with NETg-Spectrum, a distance-learning company, first as an instructional designer / project manager and ultimately as a Vice President—Application Development, responsible for managing the firm’s product development functions and consulting operations.


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100 Questions You Can Answer with HR Analytics


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©2013, McBassi & Company

100 Questions You Can Answer With HR Analytics

HR analytics creates competitive advantage by generating actionable business intelligence on the “people side” of your business.

Not sure where to begin? Here are a few ideas to get you started...

1. What are the three most important things we need to focus on to improve sales? 2. What are the three most important things we need to focus on to improve customer service? 3. What are the three most important things we need to focus on to improve employee

engagement? 4. What are the three most important things we need to focus on to decrease regretted

turnover? 5. What are the three most important things we need to focus on to improve safety? 6. What are the three most important things we need to focus on to foster innovation? 7. Why is turnover so much higher in certain locations? 8. What interventions would have the greatest impact on managerial effectiveness? 9. Why are our high‐potential employees leaving at a higher rate than other employees? 10. How do the drivers of employee engagement differ with employees’ attributes (e.g., age,

gender, country)? 11. Which HR metrics are best at predicting future results, rather than simply looking in the rear‐

view mirror? 12. Why do we have better safety results in some plants than others and what interventions

would help improve them? 13. What are the attributes distinguishing our most effective managers from the others? 14. Do we have locations or offices that can serve as models for other locations?? 15. We’ve focused on employee engagement for years; what are the other people‐related issues

driving my company’s business results? 16. What would be the best actions to take to better manage our employees who work remotely? 17. What actions should we take to attract a more diverse workforce? 18. What actions should we take to retain a diverse workforce? 19. What specific aspects of our culture are impeding us in providing better customer service? 20. What attributes should we be seeking when we hire new employees? 21. Why are some locations more successful at sales than others, and how can we extend those

characteristics to all our sales offices? 22. What are the most effective ways for us to improve the productivity of our sales force? 23. What factors drive employee retention? 24. How do the drivers of employee retention vary across different segments of our workforce

(e.g., age, gender, country)? 25. What training is most effective in increasing success for sales managers? 26. Should we even be focusing on employee engagement? Are more engaged employees also

more successful? 27. We talk a lot about the importance of diversity, but are there concrete steps we can take to

make my company more open to diverse opinions? 28. What can we do to foster greater levels of innovation? 29. What was the impact of a certain training intervention? 30. Which of our training interventions have the greatest impact on the productivity of our sales

force?


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31. Which managerial competencies foster higher levels of employee engagement? 32. Which managerial competencies help reduce regretted turnover? 33. What are the key process differences between our most productive plants and others? 34. What percentage of our managers are highly effective, and how can we increase that

percentage? 35. “Leadership” includes many things; what are the specific attributes of the most successful

leaders in our organization? 36. How can we reduce fraud/theft at a certain location? 37. Do the drivers of employee engagement differ significantly in different regions of the world? 38. What specifically can executives do to help employees be as successful as possible? 39. We have some call centers with much lower turnover than other ones; what’s different about

those call centers? 40. Does our performance rating system accurately reflect actual employee performance? 41. How does managerial span of control affect sales results? 42. How should we modify our leadership development program to drive better business results? 43. Which of the low scores on our employee engagement survey can we ignore because they

have nothing to do with outcomes we care about? 44. Which of the high scores on our employee engagement survey do we need to get even better

at because they are important drivers of our business results? 45. How successful is our employee orientation program? 46. How have our difficulties with a certain product launch (or some other specific issue) affected

employee commitment to the organization, and what can we do to address that? 47. What differentiates those locations where we have higher customer loyalty? 48. We implemented a diversity initiative last year but it hasn’t been successful; what’s holding us

back? 49. Is our employee rewards/recognition program more successful for certain functions? 50. Why are so many of our new hires leaving within the first few months? 51. There’s a big variation in quality across our plants; what’s the cause of this and what can we

do to address it? 52. We have so many training programs; which ones should we cut and which should we expand? 53. We’ve acquired another company; what are the greatest strengths and weaknesses of its

culture? 54. What characterizes our most successful managers? 55. Why is turnover so much higher among female employees? 56. Did a newly‐introduced employee benefit have a positive effect on employee engagement? 57. Are there differences across generations in what our employees want from their work? 58. What one or two characteristics best differentiate our top sales people? 59. Did we meet our business objectives with this training program? 60. There are big cultural differences between our overseas locations and our US locations; are

any of these differences driving better results in certain locations? 61. Why has productivity dropped so dramatically in one specific location this quarter? 62. What specific factors are most associated with higher employee engagement? 63. What job rotations did our most successful sales employees complete? 64. How did we initially come to the attention of our most successful job candidates? 65. Which of our talent gaps are most critical to address? 66. Are there certain employees who have the right characteristics to be moved into sales? 67. What interventions would be most effective in reducing high levels of turnover? 68. How can we better deploy our employees to drive improved profit margins?

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69. Should we hire only those job candidates who have certain types of college degrees? 70. Do our employees with MBAs significantly outperform those without them? 71. What leadership characteristics lead to better team sales results? 72. Are we doing enough to encourage informal learning? 73. We have some locations where employees have much more input into hiring decisions; are

those locations more successful? 74. What are the characteristics of managers with the highest employee loyalty? 75. Our recent employee survey highlighted our lowest scores; are these, in fact, the most

important areas for us to focus on? 76. Some locations get new employees up to speed much more quickly; what are they doing

differently? 77. Why is employee engagement higher for some job functions than for others? 78. Our culture is overly risk‐averse; which locations are better at encouraging smart risk taking? 79. How can we predict which of our employees are most likely to leave in the next year? 80. Our employees seem to be losing confidence in our executive team; what specifically is behind

that? 81. What’s the relationship between employee engagement and sales results and what should we

do as a result? 82. What characterizes the work environment in the plants with the best safety records? 83. We have a limited budget for targeting improvement; where should it be deployed? 84. We have high turnover; what can we do to reduce it among those employees we most want to

keep? 85. How can we reduce employee absenteeism? 86. What are the biggest differences in how our work‐at‐home employees and on‐site employees

perceive the organization, and should we do anything to address this? 87. Would a different pay structure help to reduce employee turnover? 88. What employee characteristics drive customer satisfaction? 89. How can we identify those employees best suited to be promoted to manager? 90. Employee morale is way down since some recent layoffs; what areas should we target to best

address this? 91. A portion of bonuses is usually tied to improvements in certain areas; what areas should we

select? 92. What’s the “sweet spot” for job tenure for our sales representatives? 93. What’s special about this one sales office, which always has the best quarterly results? 94. What characterizes our organization’s culture, and where should we seek improvement? 95. We’re having quality problems in a certain location; how can we address this? 96. Where are the best areas for us to target our leadership development program? 97. We’re in the middle of a merger/acquisition; are there any big incompatibilities between our

two companies’ cultures? 98. Our latest survey found some locations have very low scores in work‐life balance; what’s

driving the work‐life issues in those places? 99. What key measures should we include in our annual report to our Board of Directors? 100. What key measures should we include in our annual report to stockholders?


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Talent Management Bookshelf


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Anders, G. The Rare Find: Spotting Exceptional Talent Before Everyone Else. New York, NY: Portfolio/Penguin, 2011

Bassi, L., Frauenheim, E and McMurrer, D. Good Company: Business Success in the Worthiness Era. San Francisco, CA: Berret-Koehler, 2011

Bassi, L. HR Analytics Handbook. Amsterdam: Reed Business, 2012

Becker, B, Huselid, M. and Beatty, R. The Differentiated Workforce. Boston, MA: Harvard Business School Press, 2009

Berger, L and Berger, D. The Talent Management Handbook. New York, NY: McGraw-Hill, 2011

Benko, C. and Weisberg, A. Mass Career Customization. Boston, MA: Harvard Business School Press, 2007

Benko, C. and Anderson, M. The Corporate Lattice. Boston, MA: Harvard Business School Press, 2010

Bingham, T. and Conner, M. The New Social Learning. San Francisco, CA: Berret-Koehler, 2010

Burchell, M. and Robin, J. The Great Workplace. San Francisco, CA: Joeey-Bass, 2011

Bossidy, L. and Charan, R. Execution: The Discipline f Getting Things Done. New York: NY: Crown Business, 2002

Boudreau, J. and Ramstad, P. Beyond HR: The New Science of Human Capital. Boston, MA: Harvard Business School Press, 2007

Boudreau, J. Retooling HR. Boston, MA: Harvard Business Press, 2010

Branham, L. The 7 Hidden Reasons Employees Leave. New York, NY: AMACOM, 2005

Branson, R. Screw Business as Usual. New York, NY: Portfolio/Penguin, 2011

Briscoe, D., Schuler, R. and Claus, L. International Human Resource Management. London: UK. Routledge, 2009

Bryan, L and Joyce, C. Mobilizing Minds. New York, NY: McGraw-Hill, 2007

Buckingham, M. and Coffman, C. First Break All the Rules. New York, NY: Simon & Schuster, 1999

Buckingham, M. The One Thing You Need to Know. New York, NY: Simon & Schuster, 2005

Caligiuri, P., Lepak, D. and Bonache, J. Managing the Global Workforce. West Sussex, UK: John Wiley & Sons, 2011

Cantrell, S. and Smith, D. The Workforce of One. Boston, MA: Harvard Business Press, 2010

Cappelli, P. Talent on Demand. Boston, MA: Harvard Business Press, 2008

Capelli, P., Singh, H., Singh, J. and Useem, M. The India Way. Boston, MA: Harvard Business Press, 2010

Cascio, W. and Boudreau, J. Investing in People. Upper Saddle River, NJ: Pearson Education, 2008

Charan, R., Drotter, S. and Noel, J. The Leadership Pipeline. San Francisco, CA: Joeey-Bass, 2001

Charan, R. Leaders at All Levels. New York, NY: John Wiley, 2008


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Collins, J. Good to Great. New York, NY: Harper Business, 2001

Collins, J. How the Mighty Fall. New York, NY: Harper Collins, 2009

Colvin, G. Talent is Overrated: What really separates world-class performers from everybody else. New York, NY: Penguin Group, 2008

Conant, D and Norgaard, M. TouchPoints. San Francisco, CA: Jossey-Bass, 2011

Conaty, B. and Charan, R. The Talent Masters. New York, NY: Crown Business, 2010

Conley, C, Peak. San Francisco, CA: Jossey-Bass, 2007

Covey, S. The Speed of Trust. New York, NY: Free Press, 2006

Cross, J. Informal Learning. San Francisco, CA: Pfieffer, 2007

Davenport, T.H. and Prusak, L. Working Knowledge: How Organizations Manage What They Know. Boston, MA: Harvard Business School Press, 2000

Davenport, T.H. and Harris, J. Competing on Analytics: The New Science of Winning. Boston, MA: Harvard Business School Press, 2007

Davenport, T.O., and Harding, S. Manager Redefined. San Francisco, CA: Jossey-Bass, 2010

Dweck, C. Mindset. New York, NY: Random House, 2006

Effron, M. and Ort, M. One Page Talent Management. Boston, MA: Harvard Business School Press, 2010

Evans, P., Pucik, V. and Bjorkman, I. The Global Challenge. New York, NY: McGraw-Hill, 2011

Fitz-ens, J. The ROI of Human Capital. New York, NY: AMACOM, 2000 and 2009

Florida, R. The Flight of the Creative Class. New York, NY: Harper Business, 2005

Fleming, J. and Asplund, J. Human Sigma. New York, NY: Gallup Press, 2007

Forman, D. The Principles of Human Capital Management. Washington DC: Human Capital Institute, 2005

Friedman, T. The World is Flat. New York, NY: Farrat, Straus and Giroux, 2006

Friedman, T. and Mandelbaum, M. That Used to be Us. New York, NY: Farrar, Straus and Giroux, 2011

Gardner, H. Five Minds for the Future. Boston, MA: Harvard Business School Press, 2006

Gebauer, J. and Lowman, D. Closing the Engagement Gap. New York, NY: Portfolio Penguin, 2008

Gladwell, M. Outliers. New York, NY: Little Brown & Company, 2008

Govindarajan, V. and Trimble, C. Reverse Innovation. Boston, MA: Harvard Business Review Press, 2012

Hall, B. The New Human Capital Strategy. New York, NY: AMACOM, 2008

Hamel, G. The Future of Management. Boston, MA: The Harvard Business School Press, 2007

Hamel, G. What Matters Now. San Francisco, CA: Jossey Bass, 2012

Hsieh, T. Delivering Happiness. New York, NY: Business Plus, 2010

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Huselid, M., Becker, B and Beatty, R. The Workforce Scorecard. Boston, MA: Harvard Business School Press, 2005

Kanter, R. Supercorp. New York, NY: Crown Business, 2009.

Kerr, S. Reward Systems. New York, NY: McGraw-Hill, 2009

Lawler, E. Talent: Making People Your Competitive Advantage. San Francisco, CA: Jossey-Bass, 2008

Lawler, E, and Worley, C. Management Reset. San Francisco, CA: Joeey-Bass, 2011

Leonard, D. and Swapp, W. Deep Smarts. Boston, MA: Harvard Business School Press, 2005

Meister, J and Willyerd, K. The 2020 Workplace. New York, NY: Harper Business, 2010

Michaels, E., Handfield-Jones, H. and Axelrod, B. The War for Talent. Boston, MA: Harvard Business School Press, 2001

Murphy, M. Hundred Percenters. New York, NY: McGraw Hill, 2010

Murphy, M. Hard Goals. New York, NY: McGraw Hill, 2010

Nayar, V. Employees First, Customers Second. Boston, MA: Harvard Business Press, 2010

Pfau, B. and Kay, I. The Human Capital Edge. New York, NY: McGraw Hill, 2002

Pfeffer, J. and Sutton, R. Hard Facts: The Knowing-Doing Gap. Boston, MA: Harvard Business School Press, 2000

Pfeffer, J. and Sutton, R. Hard Facts: Profiting from Evidence-Based Management. Boston, MA: Harvard Business School Press, 2006

Pink, D. A Whole New Mind. New York, NY: Riverhead Books, 2005

Pink, D. Drive. New York, NY: Riverhead Books, 2009

Rumelt, R. Good Strategy/Bad Strategy. New York: NY: Crown Business, 2011

Sartain, L. and Schuman, M. Brand From The Inside. San Francisco, CA: Jossey-Bass, 2006

Schiemann, W. Reinventing Talent Management. Hoboken, NJ: John Wiley & Sons, 2009

Scullion, H. and Collins, D. Global Talent Management. New York, NY: Routledge, 2011

Seidman, D. How. Hoboken, NJ: John Wiley & Sons, 2007

Semler, R. The Seven-Day Weekend. London, UK: Century, 2003

Slap, S. Bury My Heart at Conference Room B. New York, NY: Portfolio Penguin, 2010

Taylor, W. and LaBarre, P. Mavericks at Work. New York, NY: William Morrow, 2006

Ulrich, D. and Broadbank, W. The HR Value Proposition. Boston, MA: Harvard Business School Press, 2005

Ulrich, N. and Smallwood, N. Why the Bottom Line Isn’t. New York, NY: John Wiley, 2003

Ulrich, D., et. al. HR Competencies. Washington DC: Society for Human Resource Management, 2008

Ulrich, D, et. al. The Leadership Code. Boston, MA: Harvard Business Press, 2008


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Ulrich, D and Ulrich, W. The Why of Work. New York, NY: McGraw Hill, 2010

Wagner, R. and Harter, J. 12: The Elements of Great Managing. New York, NY: Gallup Press, 2006

Watkins, M. The First 90 Days. Boston, MA: Harvard Business School Press, 2003

Wiseman, L. Multipliers. New York, NY: Harpers Business, 2010.

Zenger, J and Folkman, J. The Extraordinary Leader. New York, NY: McGraw Hill, 2002

Zenger, J., Folkman, J and Edinger, S. The Inspiring Leader. New York, NY: McGraw Hill, 2009

Human Capital InstituteHCI is the global association for strategic talent management and new economy leadership, and a clearinghouse for best practices and new ideas. Our network of expert practitioners, Fortune 1000 and Global 2000 corporations, government agencies, global consultants, and business schools contribute a stream of constantly evolving information, the best of which is organized, analyzed, and shared with members through HCI communities, research, education, and events.

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