Presenter:  Cathy  Missildine,  MBA,  SPHR  

 

Moving  from  Transac>onal  Data  to  Strategic  Insights  

   

Agenda  

•  What  is  the  difference  between  metrics  and  analy>cs?  

•  Why  are  analy>cs  so  important  to  HR?  •  Process  on  moving  from  metrics  to  analy>cs  

   

Phase 1

Phase 2

Phase 3

Phase 4

Phase 5

Impact •  Creating Change •  Achieving Strategic

Goals •  Congratulations,

You have arrived at the true purpose of Analytics!

Justification •  Foundational human

capital investments •  Data collection •  Reporting •  Rudimentary tools •  Distributed efforts

Measurement •  Metrics defined •  HR Scorecards &

Dashboards •  Leadership

accountability •  Standardization •  Improvements

celebrated

Effectiveness •  Key Performance

Indicators •  Cohesive efforts •  Process

improvement •  Expanded

organizational accountability

•  More sophisticated tools

Value Creation •  Genuine Insights •  Decisions based on

data & learnings •  Connections

between people investment and business outcomes defined

•  Predictive Models •  Cultural shifts

Price  to  Play  Poker  (what  you  need)  • Execu>ve  Support  • The  Right  Tools  • The  Right  People  

Analy>cal  Roadmap  

Provided  by:  STEVE  WOOLWINE,  PHR,  Chief  of  Staff,  Talent  and  Human  Capital  Services,  SEARS  HOLDINGS  CORPORATION    

   •   What  if  you  are  able  to  develop  a  “high  performer  profile”  that  enables  you  to  hire  the  right  people  the  first  >me.      •   What  if  you  are  able  to  iden>fy  your  high  performers  that  are  at  risk  for  leaving  the  organiza>on?    •   What  if  you  are  able  to  determine  the  HR  ini>a>ves  that  will  best  contribute  to  the  boPom  line?    

What if…

   

Measures,  Metrics,  and  AnalyKcs  

18 © SHRM

MeasureFundamental constructs based on tabulation of data

Employee head count

Term Definition Example

Metrics

Higher-level constructs based on relationship between two or more measures

Revenue per full-time equivalent (FTE)

AnalyticsConverting metric into decision-support tool by adding context

Turnover of high- potential employees in poor-performing business units

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HR’s  Role  in  Measurement  and  Metrics  

19 © SHRM

Provide organization-wide and appropriate training on the purpose and use of key metrics and measurement tools

Provide measurement reports and supply data required for organization-wide assessment

Assist the organization in analyzing and interpreting measurement information

Create and implement specific programs that directly address the measurement and evaluation of HR-specific programs and initiatives

   

Appropriate  HR  Metrics  

20 © SHRM

Activity-based

Outcomes-based

ü  Start  with  a  few  core,  generally  accepted  (standardized)  ac>vity-­‐based  metrics  followed  by  outcomes-­‐based  metrics.    

ü  Ensure  that  the  more  objec>ve  ac>vity  metrics  have  validity  and  reliability  before  aPemp>ng  to  introduce  outcomes-­‐based  metrics  (which  tend  to  be  more  unique  to  each  organiza>on  or  business  unit).  

ü  Use  the  outcomes  to  help  further  focus  or  refine  the  ac>vity-­‐based  metrics  all  toward  mutually  reinforcing  alignment  with  the  organiza>on’s  broader  strategic  goals.    

   

Guidelines  for  Choosing  HR  Metrics  

©  SHRM  

ü  Review business strategy and goals with C-suite executives. ü  Identify the HR functions to be measured that align with strategy, goals,

and objectives. ü  Define each HR metric and its formula. ü  Decide what data must be collected and what collection methods are

available. ü  Be sure to get accurate data. ü  Decide how often HR metrics information will be collected and reported. ü  Choose what format will be used to report the data and who will receive

the report. ü  Review the metrics used on a regular basis.

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Considerations in Choosing HR Metrics

•  Iden>fy  outcomes  and  measure  quan>fiable  results  rather  than  only  the  ac>vi>es  associated  with  the  intended  results.    

•   Measure  things  correctly  (e.g.,  validity  and  reliability).    

•  Measure  the  correct  things.  

©  SHRM  

   

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Sample  Human  Capital  Metrics    

Spending on human capital

Ability to retain talent

Leadership depth

Leadership quality

Employee engagement

Human capital discussion and

analysis

©  SHRM  

    •  Consider  the  past  and  present  and  they  forecast  the  future.  

•  Connect  mul>ple  data.  •  Provide  computa>onal  analysis  of  data  or  sta>s>cs.  

•  Provide  visual  outputs  of  paPerns  and  trends.  

•  Provide  insights  that  can  drive  strategy.  

24 © SHRM

•  Provide  raw  informa>on  about  what  has  happened  or  is  currently  happening.  

•  Guide  tac>cs  and  opera>ons  though  quan>ta>ve  analysis.  

•  Less  mature  or  certain  when  it  comes  to  being  use  for  predic>ons  (lead).    

•  Do  not  provide  insights  regarding  the  “why”  behind  the  data.  

Metrics Analytics

Metrics  and  AnalyKcs  

   

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How  AnalyKcs  Enhance  Metrics  

Assessing new- hire perfor-mance could evaluate performance levels. If performance results are unsatisfactory, HR could adapt the recruiting process to improve recruiting effectiveness.

Analytics Common metrics used to assess new- hire recruiting effectiveness (such as time to fill and cost per hire) do not answer strategic questions.

Metrics Example:    

New-­‐hire  recrui>ng  effec>veness  

©  SHRM  

   

25

How  AnalyKcs  Enhance  Metrics  

Assessing new- hire perfor-mance could evaluate performance levels. If performance results are unsatisfactory, HR could adapt the recruiting process to improve recruiting effectiveness.

Analytics Common metrics used to assess new- hire recruiting effectiveness (such as time to fill and cost per hire) do not answer strategic questions.

Metrics Example:    Talent  Management  

©  SHRM  

   

Benefits  of  AnalyKcs  

©  SHRM   26  

Analytics have the potential to improve individual and organizational performance because they: ü  Embed workforce intelligence as a cornerstone in management decision

making. ü  Improve workforce planning and forecasting.

ü  Shorten recruiting cycles.

ü  Reduce recruiting and separation costs.

ü  Retain critical talent.

ü  Drive succession planning.

ü  Use on-demand insights to avoid costly mistakes.

ü  Redirect money spent on wrong employee initiatives to more beneficial programs.

   

Metrics  vs.  Analy>cs  

Courtesy  Luk  Smeyers,  INos>x  

   

9  Step  Process:  Journey  to  Analy>cs  1.  HR’s  vision  linked  to  business  strategy  2.  Build  a  STAR  HR  analy>cs  team  and  agree  on  

deliverables  3.  Strengthen  partnerships  4.  Create  models/decision  trees/answer  business  

ques>ons  5.  Data  Audit  6.  Data  Hygiene  7.  Review  models  and  perform  analysis  8.  Present  results/visualiza>on/technology  9.  Implement  and  assess  

   

Step  1:  Aligning  Our  Business  Goals  

   

 

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Organiza>onal  Goals  

Department  Goals  

Employee  Goals  

   

Cascading  of  Goals  

Enterprise Goal

Decrease time-to-market to increase competitiveness in mobile applications.

HR Goal

Increase effectiveness of teams throughout the organization.

Training and Development Objective

Facilitate development of teams and team skills.

Recruiting Objective

Include screening and evalu-ation related to experience working in teams in all recruiting and selection tools.

HRIS Objective

Develop talent management database.

HRM Objective

Develop policies to support global talent management.

   

Keep  in  mind...  

•  Most  HR  organiza4ons  are  s4ll  at  the  human  capital  analy4cs  infant  stage      

•  Analy4cs  is  only  one  piece  of  the  analy4cal  value  chain:  

DATA   METRICS   QUESTIONS  &  HYPOTHESES   Analy>cs   Insight   Ac>on  

Business  Intelligence  •  Understand  important  factors  in  the  business  environment  

•  Can  present  and  communicate  insight  &  findings  in  an  easy-­‐to-­‐understand  way  

•  Can  partner  with  the  business  to  implement  change  or  focus  

AnalyKcal  Intelligence  •  Can  ask  the  right  ques>ons  •  Takes  ini>a>ve  to  understand  the  “why”  behind  the  “what”  

•  Possesses  an  above  average  ability  to  manipulate  data  to  create  insight  

•  Can  quickly  learn  new  sokware  packages  

HR  Intelligence  •  Understands  the  human  capital  levers  to  pull  to  drive  top  line  and  boPom  line  growth  

•  A  general  understanding  of  HR  laws  and  regula>ons  •  Ability  to  communicate  with  other  HR  professionals  

Systems  Intelligence  •  Understanding  of  general  systems  and  how  and  where  data  is  stored  

Curious  Human  Resources  Generalists  who  are  good  with  numbers  are  a  great  start  to  any  HR  analy4cs  team!  

Provided  by:  STEVE  WOOLWINE,  PHR,  Chief  of  Staff,  Talent  and  Human  Capital  Services,  SEARS  HOLDINGS  CORPORATION    

Step  2:  Build  a  Star  Analy>cs  Team    

   

Step  2:  What  are  the  deliverables?    (Analy>cal  Capabili>es)  

Basic  Reports  

Ad  Hoc  Reports  

Query/drill  down   Alerts   Sta>s>cal  

analysis  Predic>ve  modeling  and  forecas>ng  

Scenario  analysis  

Op>imiza>on  

What  happened?  

How  many?    How  oken?  Where?  

Where  is  the  problem?  

Where  do  we  need  to  react?  

Why  is  this  happening?  

Why  if  these  trends  con>nue?  

If  we  make  changes  what  will  happen?  

What  ac>ons  can  be  taken  to  generate  the  best  results?  

   

Step  3:  Strengthen  Partnerships  

•  Iden>fy  all  stakeholders  at  all  levels  and  all  roles  •  Build  rela>onships  •  Establish  ownership  of  the  vision,  goals  and  the  gap  

between  status  quo  and  where  you  need  to  be  •  Build  credibility  •  Communicate,  communicate  communicate  

   

Step  4:  Create  Models  and  Check  Data  Availability    •  Document  your  assump>ons  and  tests  that  need  to  

be  performed  •  Go  forward  with  analysis  if  data  is  available  •  Put  results  in  a  business  context  

   

Step  7:  Review  Models  and  Perform  Analysis  

Increase  Market  Share  

Customer  Sa>sfac>on  

HiPo  Turnover   Engagement  

Rewards  &  Recogni>on  Program  

   

Step  5:  Data  Audit-­‐Preliminary  Ques>ons  

•  What  systems/services  does  your  team  provide/manage?    

•  What  do  these  systems/services  do?    •  Who  uses  them?    •  Where  do  they  get  their  data  from?    •  Where  do  they  pass  their  data  to?    •  Are  there  any  manual  processes  involved?    •  For  any  automa>c  processes  (e.g.  exports/imports  

of  data),  how  oken  do  they  happen?    •  What,  if  any,  processing  is  carried  out  upon  the  

input  data  by  the  systems/services?    

   

Step  5:  Data  Audit  Process  •   Obtain  senior  management  buy  in  •   KISS  •   Answer  the  basics:  

• What  data  is  collected  and  from  which  source(s).    

• Where  and  how  recorded  data  is  stored.    • What  the  data  is  used  for,  and  how  it  passes  both  between  systems  and  to  data  consumers.    

• Who  is  responsible  for  the  data  at  both  an  opera>onal  and  a  strategic  level.    

•   Create  a  visual  that  is  easy  to  understand  

   

Step  6:  Data  Hygiene          The  condi*on  of  data  in  a  database.  Clean  data  is  

error  free  or  have  very  few  errors.  Dirty  data  have  errors,  including  incorrect  spelling  and  punctua*on  of  names  and  addresses,  redundant  data  in  several  records  or  simply  erroneous  data.  

 PC  Magazine  

   

Step  7:  Review  Models  and  Perform  Analysis  

Increase  Market  Share  

Customer  Sa>sfac>on  

HiPo  Turnover   Engagement  

Rewards  &  Recogni>on  Program  

   

Step  7:  Analy>cs!!!  

OMG!!  

   

Step  8:Present  Results/Visualiza>on/Technology  

•  What  are  the  big  AHA’s  you  find  from  the  data  (i.e.  new  hire  profile  created  for  HIPerf  employees)  

•  What  are  the  “signals”  that  something  might  derail  (i.e.  HIPerf’s  leaving)  

•  What  your  ac>on  plans  are  based  on  results  of  data?    Improve  or  sustain  

•  The  dollar  benefits  of  HR  investments.    HR  can  provide  with  analy>cs  

   

Technology  •  Integra>on  is  key,  data  is  everywhere  in  HR  •  Central  repository  is  ideal  •  Goal  is  efficiency  

 

   

9  Step  Process:  Journey  to  Analy>cs  1.  HR’s  vision  linked  to  business  strategy  2.  Build  a  STAR  HR  analy>cs  team  and  agree  on  

deliverables  3.  Strengthen  partnerships  4.  Create  models/decision  trees/answer  business  

ques>ons  5.  Data  Audit  6.  Data  Hygiene  7.  Review  models  and  perform  analysis  8.  Present  results/visualiza>on/technology  9.  Implement  and  assess  

   Any  QuesKons?  

   

Contact  Us  

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Cathy  Missildine  

(770)843-­‐8284  

@cathymissildine  

intellectualcapitalconsulting.blogspot  

intellectual-­‐capital.net  

cathymissildine@intellectual-­‐capital.net