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HR Analytics
How to pacify Catbert: The Evil Director of Human Resources




Atif Abdul-Rahman
The Evil Director of Human Resources




                                       CATBERT
The Evil Director of Human Resources

 The most feared don of the
 business underworld!




                                       CATBERT
The Evil Director of Human Resources




           atleast
  *in every company that matters




                                       CATBERT
The Evil Director of Human Resources




2
Schools of Thought




                                       CATBERT
The Evil Director of Human Resources




2
Schools of Thought




“Human Resources has long been looked at
as a touchy-feely business. The stereotype
of its practitioners is that they give warm
and fuzzy answers to most business
queries.” – Jac Fitz-Enz, The ROI of Human Capital.
                                                      CATBERT
The Evil Director of Human Resources




2
Schools of Thought




“Human Resources has long been looked at
as a touchy-feely business. The stereotype
of its practitioners is that they give warm
and fuzzy answers to most business
queries.” – Jac Fitz-Enz, The ROI of Human Capital.
                                                      CATBERT
The Evil Director of Human Resources


Perception…




                                       CATBERT
The Evil Director of Human Resources


Perception…




                               …Or Reality?
                                       CATBERT
The Evil Director of Human Resources


Perception…




                               …Or Reality?
                                       CATBERT
The Evil Director of Human Resources

[Contrary to Popular Belief (and Satire)]




   CATBERT
The Evil Director of Human Resources

[Contrary to Popular Belief (and Satire)]



  Life isn't that easy 



   CATBERT
The Evil Director of Human Resources

[Contrary to Popular Belief (and Satire)]



  Life isn't that easy 

                   …or random!

   CATBERT
The Evil Director of Human Resources
Large Organizations:
Too many people (and data) to make objective decisions.




    CATBERT
The Evil Director of Human Resources

Startups and SMEs:
Too much flexibility and personalization in place, difficult to
make universal policies.




    CATBERT
                        Princess Complex!
The Evil Director of Human Resources


Add to that…




CATBERT
The Evil Director of Human Resources


Add to that…

RECESSION!




CATBERT
The Evil Director of Human Resources




CATBERT
The Evil Director of Human Resources


Employee Redundancy

Turnover                 ‘Right Sizing’

           Morale
            Organizational Memory
 CATBERT
The Evil Director of Human Resources
As the economy shows signs of
recovery, employees may begin to consider
greener pastures.”

What happens if there’s a mass exodus of key
talent just as an organization is moving toward
recovery?
                -Aon Hewitt Talent Management Report, 2011




 CATBERT
The Evil Director of Human Resources



Also


CATBERT              Nationalization Drives
The Evil Director of Human Resources



And


          Brain Drain and Employee Turnover…
CATBERT
The Evil Director of Human Resources



    With limited resources and harsh external
    influences, HR takes actions based on gut
    feelings, ‘soft skills’ and freshly baked policies.

    Thus, perceived as Random Policy Generators
    and/or EVIL!




CATBERT
Dogbert - THE Consultant




Warning:


     THE SALES PITCH!
Dogbert – THE Consultant




Wanna get rid of Catberts?
Dogbert – THE Consultant




Wanna get rid of Catberts?
Make HR…
Dogbert – THE Consultant




Wanna get rid of Catberts?
Make HR…

          Analytics Driven
Analytics
         ˌa-nə-ˌli tiks
                  -

By analytics we mean the
extensive        use      of
data,     statistical   and
quantitative
analysis, explanatory and
predictive models, and fact-
based management to drive
decisions and actions.
A REVOLUTION DOES
NOT HAPPEN WHEN
SOCIETY ADOPTS NEW
TOOLS,
IT HAPPENS WHEN
SOCIETY ADOPTS NEW
BEHAVIORS




                     Clay Shirky, US Now
Hr Analytics
Hr Analytics
Hr Analytics
Don’t replace your tools, add new ones for specific problems, Analytics is one of the many tools.
Hr Analytics
♪ Competing on
Analytics is a Cultural
 Transformation! ♫
No organization we’ve worked with has embraced an analytics-
only method of managing, motivating, and retaining employees.
But early adopters have created tangible value for themselves.
Tom Davenport, Competing on Talent Analytics
For Example…
Employee Churn Prediction


 Sprint has identified the
 factors that best foretell
 which employees will leave
 after a relatively short time.


 (Hint: Don’t expect a long tenure from someone
 who hasn’t signed up for the retirement
 program.)
Contracts Development
                            Professional sports
                      teams, with their outsize
                 expenditures on talent, have
                          been leading users of
                        analytics. To protect its
                       investments, the soccer
                    team AC Milan created its
                     own biomedical research
                         unit. Drawing on some
                  60,000 data points for each
                     player, the unit helps the
                  team gauge players’ health
                          and fitness and make
                             contract decisions.
Check This out Too!
Employee Engagement

Almost every company we’ve
studied   says    it  values
employee engagement, but
some can precisely identify
the value of a 0.1% increase
in    engagement      among
employees at a particular
store. At Best Buy, for
example, that value is more
than $100,000 in the store’s
annual operating income.
Academic Records

Many companies favor job candidates with stellar
academic records from prestigious schools—but
AT&T and Google have established through
quantitative analysis that a demonstrated ability to
take initiative is a far better predictor of high
performance on the job.
Hr Analytics
Ketchum analyzed personal networks
to learn how easily information flowed
across teams.
Ketchum analyzed personal networks
to learn how easily information flowed
across teams.


Bloggers were more engaged and
satisfied than others and performed
about 10% better, on
average, Cognizant India
Bottom Line
There is nothing more powerful
for a business than ‘managing
tomorrow, today’ by properly
applying analytics to its human
capital
Is it Really an
        Engineering
        Problem?




The Engineer!
No, Not Really
No, Not Really

Its Cultural……….
No, Not Really

Its Cultural……….

People usually measure what is easy for them to
measure, not what should be measured…
No, Not Really

Its Cultural……….

People usually measure what is easy for them to
measure, not what should be measured…

Create a Culture of Performance Measurement!
No, Not Really

Its Cultural……….

People usually measure what is easy for them to
measure, not what should be measured…

Create a Culture of Performance Measurement!

Then Improve your Framework
Maturity, Continuously!
“HR Analytics becomes a MUST”
                   Forrester Research, 2009
“Forward-looking analytics that push well beyond
traditional metrics are the cornerstone of this
effort. But siloed systems, inconsistent data, and a
lack of benchmarks and tools have made this
increasingly difficult to achieve. To address this
problem and become more strategic, HR
professionals must get their arms around the
data, identify key performance indicators
(KPIs), settle on a technology approach, and infuse
the data into their organization.” - Forrester 2009
Example Framework



            Six Uses of Talent Analytics
                             By Thomas Davenport




  • Simple
  • Value Driven
  • Iterative
• Human Capital Facts
Analytics Maturity (& Complexity)
                                    1


                                        • Analytical HR
                                    2


                                        • Human Capital Investment Analysis
                                    3


                                        • Workforce Forecast
                                    4


                                        • Talent Vale Model
                                    5


                                        • Talent Supply Chain
                                    6
• Human Capital Facts
1
• Human Capital Facts
                              1


Single Version of the Truth
Straightforward Facts

•   Head Counts
•   Contingent Labor Use
•   Turnover Rate
•   Termination Rate
•   Average Cost Per Recruitment
•   Engagement Rate etc
• Human Capital Facts
                              1


Single Version of the Truth
Straightforward Facts

•   Head Counts
•   Contingent Labor Use                Pushing Factors:
•   Turnover Rate                       • Creates Transparency
•   Termination Rate                    • Determines Overall Measurement
•   Average Cost Per Recruitment          Criteria
•   Engagement Rate etc                 • Employees and Corporate start aligning
                                          their behaviors
                                        Pulling Factors:
                                        • Employees and Corporate start
                                           ‘Gaming’, i.e. show better scorecards
                                           than behaviors
                                        • Actions are not Deterministic.
                                        • Requires Context to Devise Strategies.
• Analytical HR
2
• Analytical HR
                           2


Pinpoint Opportunities & Bottlenecks
Create Insights

• Determine whether Staff Turnover
  intervention needs to be carried
  out only in East Region or the
  entire Organization.
• Determine which job description
  need revamping of their contracts
  to improve employee performance
• Determine the most common
  reason for delays in the recruiting
  process. etc
• Analytical HR
                           2


Pinpoint Opportunities & Bottlenecks
Create Insights
                                        Pushing Factors:
• Determine whether Staff Turnover      • Develop Insights
  intervention needs to be carried      • Drill Down and Roll Up
  out only in East Region or the        • Relate Individual data with Corporate
  entire Organization.                     Processes and KPIs.
• Determine which job description       • Cascade Performance
  need revamping of their contracts     • Put some context into Measurements.
  to improve employee performance
• Determine the most common             Pulling Factors:
  reason for delays in the recruiting
  process. etc                          • Usually Rear-view Mirror metrics
                                        • Insights are still not Actionable.
                                        • Gives too many alternatives to work
                                          on, we need to focus on a defined
                                          strategy
• Human Capital Investment Analysis
3
• Human Capital Investment Analysis
                           3



Devise Actionable Strategy
Determine Activities of Highest Impact

• Find correlation between different
  factors, e.g. one company
  identified employee satisfaction
  highly correlated with unit
  revenue, etc.
• Determine root-cause analysis to
  understand dependent and
  independent factors.
• Single out a selected few action
  points to execute, the strategy
  being that other factors will
  eventually be improved as well.
• Human Capital Investment Analysis
                           3



Devise Actionable Strategy
Determine Activities of Highest Impact

• Find correlation between different     Pushing Factors:
  factors, e.g. one company              • Focus on a scoped action plan
  identified employee satisfaction
  highly correlated with unit            Pulling Factors:
  revenue, etc.                          • Cannot determine risk on each action
• Determine root-cause analysis to          point
  understand dependent and               • It’s a gamble
  independent factors.                   • Need some predictive insights.
• Single out a selected few action
  points to execute, the strategy
  being that other factors will
  eventually be improved as well.
• Workforce Forecast
4
• Workforce Forecast
                              4


Predict & Plan Outcomes
Forecast and Predict Possibilities


• From a Risk Management
  perspectives, organizations need to
  know how their future projections
  of activities will be supported by
  their staff availability and skill sets.
• Employee Churn Prediction (to
  activate Retention Activities &
  initiate preemptive recruiting to fill
  future gaps)
• Scenario modeling to estimate
  possible outcomes and conduct
  planning.
• Workforce Forecast
                              4


Predict & Plan Outcomes
Forecast and Predict Possibilities
                                             Pushing Factors:

• From a Risk Management                     • Predictive Insights
  perspectives, organizations need to        • Preemptive Planning
  know how their future projections          • Forecast Turnover, Conduct What-if
  of activities will be supported by           Scenarios for Succession Planning
  their staff availability and skill sets.   • Predict Potential Shortages or
                                               Excesses of Key Capabilities
• Employee Churn Prediction (to
  activate Retention Activities initiate     Pulling Factors:
  preemptive recruiting to fill future       • Get an understanding on what might
  gaps)                                         happen, not the root cause of such
• Scenario modeling to estimate                 incidents.
  possible outcomes and conduct              • The question is Why will this
  planning.                                     happen, to have predictions
                                                actionable.
• Talent Vale Model
5
• Talent Vale Model
                            5

Identify Causation
Develop Models for Reasoning


Calculate factors that imply the root
cause of employees staying at their
jobs, at performing well, at not
performing well indicating
misplacement or other reasons, etc.

By continuous trial and error, evolve
models of employee behavior to
conduct individualized performance
boosting activities.

Preemptive churn prevention by
creating environments of employee
well being.
• Talent Vale Model
                            5

Identify Causation
Develop Models for Reasoning
                                           Pushing Factors:

Calculate factors that imply the root      • Establish Causation.
cause of employees staying at their        • Determine action plans for
jobs, at performing well, at not             preemptive planning.
performing well indicating                 • Devise Personalized Incentives Model
                                           • Determine Promotion Factors
misplacement or other reasons, etc.
                                           • To Identify Root Cause of Low
                                             Performing Employees and Devise
By continuous trial and error, evolve        Plan to Improve their performance.
models of employee behavior to
conduct individualized performance         Pulling Factors:
boosting activities.                       • Outcomes are not yet real
                                              time, some actions are too late to
Preemptive churn prevention by                have the desired impact.
creating environments of employee
well being.
• Talent Supply Chain
6
• Talent Supply Chain
                            6


Becoming a Real Time Decision Engine
Tight Alignment with the Organization


• Just in Time
  Manufacturing, Delivery, Servicing
  requires at times a secondary
  workforce to be used on order
  spikes. This contingent workforce
  needs to be processed and
  engaged in real time considering
  corporate risks to be covered, this
  is done in real time to be practical.

• Resource planning is carried out in
  real time allowing for all work
  orders to be filled by employees.
• Talent Supply Chain
                            6


Becoming a Real Time Decision Engine
Tight Alignment with the Organization
                                           Pushing Factors:
                                           • HR becomes Strategic
                                           • Timely Decisions
• Just in Time                             • Finely Grained Contracts and
  Manufacturing, Delivery, Servicing         Controls
  requires at times a secondary            • Daily Contingent Workforce leading
  workforce to be used on order              to optimal costing.
  spikes. This contingent workforce        • Resilience to uncertain environments
                                             and sudden external events.
  needs to be processed and
  engaged in real time considering
                                           Pulling Factors:
  corporate risks to be covered, this      • Hard to Achieve state
  is done in real time to be practical.    • Need to pass through the maturity
                                              model to achieve this level.
• Resource planning is carried out in
  real time allowing for all work
  orders to be filled by employees.
Start Somewhere, Anywhere….

   Measure, Fix, Iterate….

          Be Agile!
Core HR systems strategies will focus on master
data, and that analytics will help HR become more
                                          strategic.
               Human Resource Management Report, Forrester Trends 2009
Thank You !
  Atif Abdul-Rahman
  www.knowledgeworks.wordpress.com




 http://linkedin.com/in/atifabdulrahman




               atifshaikh
References
•   Competing on Talent Analytics – Tom Davenport et al
•   http://hbr.org/2010/10/competing-on-talent-analytics/ar/1
•   Employee Values = Shareholders Value – Lars Bjork
•   http://blogs.hbr.org/cs/2011/10/employee_values_stakeholder_va.html
•   Talent Analytics , Another BI research opportunity
•   http://www.b-eye-network.com/view/15658
•   HR Analytics becomes a MUST
    http://www.forrester.com/rb/teleconference/hr_analytics_become_must/q/id/5327/t/1
•   Trends 2009: Human Resource Management Report, Forrester
•   The New HR Analytics: Predicting the Economic Value of Your Company's Human Capital
    Investments by Jac Fitz-enz (Hardcover - May 26, 2010)
•   The ROI of Human Capital: Measuring the Economic Value of Employee Performance by Jac
    Fitz-enz (Hardcover - Feb 23, 2009)
•   Competing on Analytics: The New Science of Winning by Thomas H. Davenport and Jeanne G.
    Harris (Hardcover - Mar 6, 2007)
•   The Five Dysfunctions of a Team: A Leadership Fable (J-B Lencioni Series) by Patrick Lencioni
    (Hardcover - Apr 11, 2002)
•   How to Measure Anything: Finding the Value of Intangibles in Business by Douglas W.
    Hubbard (Hardcover - Apr 19, 2010)
•   Pukh Theory – Farhad Karamally
Credits
•   http://ronntorossian.com/wp-content/uploads/2010/12/blog.jpg
•   http://images.ctv.ca/archives/CTVNews/img2/20110611/600_air_canada_110611.
    jpg
•   http://iliyanamohamed.files.wordpress.com/2009/03/2434191640_2ed3b312be.j
    pg
•   http://trak.in/tags/business/2011/10/18/reverse-brain-drain-senior-executives-
    relocate-india/
•   http://www.i-cio.com/__data/assets/image/0003/8193/varieties/bart.jpg Clary
    Shirky
•   http://wirelesslanprofessionals.com/wp-content/uploads/2010/09/If-all-you-had-
    was-a-hammer.jpg - Hammer and Nail
•   http://industryleaderstoday.net/wp-content/uploads/2010/09/Business_Leaders_-
    _leading_change-300x273.gif leaders image
•   http://cdn.physorg.com/newman/gfx/news/hires/astudyshowsn.jpg Neanderthal
•   http://www.natureandkind.com/downloads/active/borneo-jungle.jpeg - Jungle
    Background
•   http://blogs.secstate.wa.gov/FromOurCorner/wp-
    content/uploads/2009/03/shutterstock_10070653.jpg
•   www.hotgiftideastips.com - graduation cap
Disclaimer
• All images are copyrights of their respective owners.
• All images from Dilbert are copyrights of Dilbert and
  free content is used here for non-commercial use.
• All quotations and books mentioned are referenced in
  slide 78.

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Hr Analytics

  • 1. HR Analytics How to pacify Catbert: The Evil Director of Human Resources Atif Abdul-Rahman
  • 2. The Evil Director of Human Resources CATBERT
  • 3. The Evil Director of Human Resources The most feared don of the business underworld! CATBERT
  • 4. The Evil Director of Human Resources atleast *in every company that matters CATBERT
  • 5. The Evil Director of Human Resources 2 Schools of Thought CATBERT
  • 6. The Evil Director of Human Resources 2 Schools of Thought “Human Resources has long been looked at as a touchy-feely business. The stereotype of its practitioners is that they give warm and fuzzy answers to most business queries.” – Jac Fitz-Enz, The ROI of Human Capital. CATBERT
  • 7. The Evil Director of Human Resources 2 Schools of Thought “Human Resources has long been looked at as a touchy-feely business. The stereotype of its practitioners is that they give warm and fuzzy answers to most business queries.” – Jac Fitz-Enz, The ROI of Human Capital. CATBERT
  • 8. The Evil Director of Human Resources Perception… CATBERT
  • 9. The Evil Director of Human Resources Perception… …Or Reality? CATBERT
  • 10. The Evil Director of Human Resources Perception… …Or Reality? CATBERT
  • 11. The Evil Director of Human Resources [Contrary to Popular Belief (and Satire)] CATBERT
  • 12. The Evil Director of Human Resources [Contrary to Popular Belief (and Satire)] Life isn't that easy  CATBERT
  • 13. The Evil Director of Human Resources [Contrary to Popular Belief (and Satire)] Life isn't that easy  …or random! CATBERT
  • 14. The Evil Director of Human Resources Large Organizations: Too many people (and data) to make objective decisions. CATBERT
  • 15. The Evil Director of Human Resources Startups and SMEs: Too much flexibility and personalization in place, difficult to make universal policies. CATBERT Princess Complex!
  • 16. The Evil Director of Human Resources Add to that… CATBERT
  • 17. The Evil Director of Human Resources Add to that… RECESSION! CATBERT
  • 18. The Evil Director of Human Resources CATBERT
  • 19. The Evil Director of Human Resources Employee Redundancy Turnover ‘Right Sizing’ Morale Organizational Memory CATBERT
  • 20. The Evil Director of Human Resources As the economy shows signs of recovery, employees may begin to consider greener pastures.” What happens if there’s a mass exodus of key talent just as an organization is moving toward recovery? -Aon Hewitt Talent Management Report, 2011 CATBERT
  • 21. The Evil Director of Human Resources Also CATBERT Nationalization Drives
  • 22. The Evil Director of Human Resources And Brain Drain and Employee Turnover… CATBERT
  • 23. The Evil Director of Human Resources With limited resources and harsh external influences, HR takes actions based on gut feelings, ‘soft skills’ and freshly baked policies. Thus, perceived as Random Policy Generators and/or EVIL! CATBERT
  • 24. Dogbert - THE Consultant Warning: THE SALES PITCH!
  • 25. Dogbert – THE Consultant Wanna get rid of Catberts?
  • 26. Dogbert – THE Consultant Wanna get rid of Catberts? Make HR…
  • 27. Dogbert – THE Consultant Wanna get rid of Catberts? Make HR… Analytics Driven
  • 28. Analytics ˌa-nə-ˌli tiks - By analytics we mean the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact- based management to drive decisions and actions.
  • 29. A REVOLUTION DOES NOT HAPPEN WHEN SOCIETY ADOPTS NEW TOOLS, IT HAPPENS WHEN SOCIETY ADOPTS NEW BEHAVIORS Clay Shirky, US Now
  • 33. Don’t replace your tools, add new ones for specific problems, Analytics is one of the many tools.
  • 35. ♪ Competing on Analytics is a Cultural Transformation! ♫
  • 36. No organization we’ve worked with has embraced an analytics- only method of managing, motivating, and retaining employees. But early adopters have created tangible value for themselves. Tom Davenport, Competing on Talent Analytics
  • 38. Employee Churn Prediction Sprint has identified the factors that best foretell which employees will leave after a relatively short time. (Hint: Don’t expect a long tenure from someone who hasn’t signed up for the retirement program.)
  • 39. Contracts Development Professional sports teams, with their outsize expenditures on talent, have been leading users of analytics. To protect its investments, the soccer team AC Milan created its own biomedical research unit. Drawing on some 60,000 data points for each player, the unit helps the team gauge players’ health and fitness and make contract decisions.
  • 41. Employee Engagement Almost every company we’ve studied says it values employee engagement, but some can precisely identify the value of a 0.1% increase in engagement among employees at a particular store. At Best Buy, for example, that value is more than $100,000 in the store’s annual operating income.
  • 42. Academic Records Many companies favor job candidates with stellar academic records from prestigious schools—but AT&T and Google have established through quantitative analysis that a demonstrated ability to take initiative is a far better predictor of high performance on the job.
  • 44. Ketchum analyzed personal networks to learn how easily information flowed across teams.
  • 45. Ketchum analyzed personal networks to learn how easily information flowed across teams. Bloggers were more engaged and satisfied than others and performed about 10% better, on average, Cognizant India
  • 46. Bottom Line There is nothing more powerful for a business than ‘managing tomorrow, today’ by properly applying analytics to its human capital
  • 47. Is it Really an Engineering Problem? The Engineer!
  • 49. No, Not Really Its Cultural……….
  • 50. No, Not Really Its Cultural………. People usually measure what is easy for them to measure, not what should be measured…
  • 51. No, Not Really Its Cultural………. People usually measure what is easy for them to measure, not what should be measured… Create a Culture of Performance Measurement!
  • 52. No, Not Really Its Cultural………. People usually measure what is easy for them to measure, not what should be measured… Create a Culture of Performance Measurement! Then Improve your Framework Maturity, Continuously!
  • 53. “HR Analytics becomes a MUST” Forrester Research, 2009
  • 54. “Forward-looking analytics that push well beyond traditional metrics are the cornerstone of this effort. But siloed systems, inconsistent data, and a lack of benchmarks and tools have made this increasingly difficult to achieve. To address this problem and become more strategic, HR professionals must get their arms around the data, identify key performance indicators (KPIs), settle on a technology approach, and infuse the data into their organization.” - Forrester 2009
  • 55. Example Framework Six Uses of Talent Analytics By Thomas Davenport • Simple • Value Driven • Iterative
  • 56. • Human Capital Facts Analytics Maturity (& Complexity) 1 • Analytical HR 2 • Human Capital Investment Analysis 3 • Workforce Forecast 4 • Talent Vale Model 5 • Talent Supply Chain 6
  • 57. • Human Capital Facts 1
  • 58. • Human Capital Facts 1 Single Version of the Truth Straightforward Facts • Head Counts • Contingent Labor Use • Turnover Rate • Termination Rate • Average Cost Per Recruitment • Engagement Rate etc
  • 59. • Human Capital Facts 1 Single Version of the Truth Straightforward Facts • Head Counts • Contingent Labor Use Pushing Factors: • Turnover Rate • Creates Transparency • Termination Rate • Determines Overall Measurement • Average Cost Per Recruitment Criteria • Engagement Rate etc • Employees and Corporate start aligning their behaviors Pulling Factors: • Employees and Corporate start ‘Gaming’, i.e. show better scorecards than behaviors • Actions are not Deterministic. • Requires Context to Devise Strategies.
  • 61. • Analytical HR 2 Pinpoint Opportunities & Bottlenecks Create Insights • Determine whether Staff Turnover intervention needs to be carried out only in East Region or the entire Organization. • Determine which job description need revamping of their contracts to improve employee performance • Determine the most common reason for delays in the recruiting process. etc
  • 62. • Analytical HR 2 Pinpoint Opportunities & Bottlenecks Create Insights Pushing Factors: • Determine whether Staff Turnover • Develop Insights intervention needs to be carried • Drill Down and Roll Up out only in East Region or the • Relate Individual data with Corporate entire Organization. Processes and KPIs. • Determine which job description • Cascade Performance need revamping of their contracts • Put some context into Measurements. to improve employee performance • Determine the most common Pulling Factors: reason for delays in the recruiting process. etc • Usually Rear-view Mirror metrics • Insights are still not Actionable. • Gives too many alternatives to work on, we need to focus on a defined strategy
  • 63. • Human Capital Investment Analysis 3
  • 64. • Human Capital Investment Analysis 3 Devise Actionable Strategy Determine Activities of Highest Impact • Find correlation between different factors, e.g. one company identified employee satisfaction highly correlated with unit revenue, etc. • Determine root-cause analysis to understand dependent and independent factors. • Single out a selected few action points to execute, the strategy being that other factors will eventually be improved as well.
  • 65. • Human Capital Investment Analysis 3 Devise Actionable Strategy Determine Activities of Highest Impact • Find correlation between different Pushing Factors: factors, e.g. one company • Focus on a scoped action plan identified employee satisfaction highly correlated with unit Pulling Factors: revenue, etc. • Cannot determine risk on each action • Determine root-cause analysis to point understand dependent and • It’s a gamble independent factors. • Need some predictive insights. • Single out a selected few action points to execute, the strategy being that other factors will eventually be improved as well.
  • 67. • Workforce Forecast 4 Predict & Plan Outcomes Forecast and Predict Possibilities • From a Risk Management perspectives, organizations need to know how their future projections of activities will be supported by their staff availability and skill sets. • Employee Churn Prediction (to activate Retention Activities & initiate preemptive recruiting to fill future gaps) • Scenario modeling to estimate possible outcomes and conduct planning.
  • 68. • Workforce Forecast 4 Predict & Plan Outcomes Forecast and Predict Possibilities Pushing Factors: • From a Risk Management • Predictive Insights perspectives, organizations need to • Preemptive Planning know how their future projections • Forecast Turnover, Conduct What-if of activities will be supported by Scenarios for Succession Planning their staff availability and skill sets. • Predict Potential Shortages or Excesses of Key Capabilities • Employee Churn Prediction (to activate Retention Activities initiate Pulling Factors: preemptive recruiting to fill future • Get an understanding on what might gaps) happen, not the root cause of such • Scenario modeling to estimate incidents. possible outcomes and conduct • The question is Why will this planning. happen, to have predictions actionable.
  • 69. • Talent Vale Model 5
  • 70. • Talent Vale Model 5 Identify Causation Develop Models for Reasoning Calculate factors that imply the root cause of employees staying at their jobs, at performing well, at not performing well indicating misplacement or other reasons, etc. By continuous trial and error, evolve models of employee behavior to conduct individualized performance boosting activities. Preemptive churn prevention by creating environments of employee well being.
  • 71. • Talent Vale Model 5 Identify Causation Develop Models for Reasoning Pushing Factors: Calculate factors that imply the root • Establish Causation. cause of employees staying at their • Determine action plans for jobs, at performing well, at not preemptive planning. performing well indicating • Devise Personalized Incentives Model • Determine Promotion Factors misplacement or other reasons, etc. • To Identify Root Cause of Low Performing Employees and Devise By continuous trial and error, evolve Plan to Improve their performance. models of employee behavior to conduct individualized performance Pulling Factors: boosting activities. • Outcomes are not yet real time, some actions are too late to Preemptive churn prevention by have the desired impact. creating environments of employee well being.
  • 72. • Talent Supply Chain 6
  • 73. • Talent Supply Chain 6 Becoming a Real Time Decision Engine Tight Alignment with the Organization • Just in Time Manufacturing, Delivery, Servicing requires at times a secondary workforce to be used on order spikes. This contingent workforce needs to be processed and engaged in real time considering corporate risks to be covered, this is done in real time to be practical. • Resource planning is carried out in real time allowing for all work orders to be filled by employees.
  • 74. • Talent Supply Chain 6 Becoming a Real Time Decision Engine Tight Alignment with the Organization Pushing Factors: • HR becomes Strategic • Timely Decisions • Just in Time • Finely Grained Contracts and Manufacturing, Delivery, Servicing Controls requires at times a secondary • Daily Contingent Workforce leading workforce to be used on order to optimal costing. spikes. This contingent workforce • Resilience to uncertain environments and sudden external events. needs to be processed and engaged in real time considering Pulling Factors: corporate risks to be covered, this • Hard to Achieve state is done in real time to be practical. • Need to pass through the maturity model to achieve this level. • Resource planning is carried out in real time allowing for all work orders to be filled by employees.
  • 75. Start Somewhere, Anywhere…. Measure, Fix, Iterate…. Be Agile!
  • 76. Core HR systems strategies will focus on master data, and that analytics will help HR become more strategic. Human Resource Management Report, Forrester Trends 2009
  • 77. Thank You ! Atif Abdul-Rahman www.knowledgeworks.wordpress.com http://linkedin.com/in/atifabdulrahman atifshaikh
  • 78. References • Competing on Talent Analytics – Tom Davenport et al • http://hbr.org/2010/10/competing-on-talent-analytics/ar/1 • Employee Values = Shareholders Value – Lars Bjork • http://blogs.hbr.org/cs/2011/10/employee_values_stakeholder_va.html • Talent Analytics , Another BI research opportunity • http://www.b-eye-network.com/view/15658 • HR Analytics becomes a MUST http://www.forrester.com/rb/teleconference/hr_analytics_become_must/q/id/5327/t/1 • Trends 2009: Human Resource Management Report, Forrester • The New HR Analytics: Predicting the Economic Value of Your Company's Human Capital Investments by Jac Fitz-enz (Hardcover - May 26, 2010) • The ROI of Human Capital: Measuring the Economic Value of Employee Performance by Jac Fitz-enz (Hardcover - Feb 23, 2009) • Competing on Analytics: The New Science of Winning by Thomas H. Davenport and Jeanne G. Harris (Hardcover - Mar 6, 2007) • The Five Dysfunctions of a Team: A Leadership Fable (J-B Lencioni Series) by Patrick Lencioni (Hardcover - Apr 11, 2002) • How to Measure Anything: Finding the Value of Intangibles in Business by Douglas W. Hubbard (Hardcover - Apr 19, 2010) • Pukh Theory – Farhad Karamally
  • 79. Credits • http://ronntorossian.com/wp-content/uploads/2010/12/blog.jpg • http://images.ctv.ca/archives/CTVNews/img2/20110611/600_air_canada_110611. jpg • http://iliyanamohamed.files.wordpress.com/2009/03/2434191640_2ed3b312be.j pg • http://trak.in/tags/business/2011/10/18/reverse-brain-drain-senior-executives- relocate-india/ • http://www.i-cio.com/__data/assets/image/0003/8193/varieties/bart.jpg Clary Shirky • http://wirelesslanprofessionals.com/wp-content/uploads/2010/09/If-all-you-had- was-a-hammer.jpg - Hammer and Nail • http://industryleaderstoday.net/wp-content/uploads/2010/09/Business_Leaders_- _leading_change-300x273.gif leaders image • http://cdn.physorg.com/newman/gfx/news/hires/astudyshowsn.jpg Neanderthal • http://www.natureandkind.com/downloads/active/borneo-jungle.jpeg - Jungle Background • http://blogs.secstate.wa.gov/FromOurCorner/wp- content/uploads/2009/03/shutterstock_10070653.jpg • www.hotgiftideastips.com - graduation cap
  • 80. Disclaimer • All images are copyrights of their respective owners. • All images from Dilbert are copyrights of Dilbert and free content is used here for non-commercial use. • All quotations and books mentioned are referenced in slide 78.

Notas del editor

  1. There is one in nearly every company, called the HR Manager/Director.
  2. Reality is, many believe that HR Managers/Directors don’t have a clue of what the organizational human capital ought to do and is capable of doing. On a personal level, it is very difficult to behave objectively and yet make a strong one to one relationship with employees.
  3. Reality is, many believe that HR Managers/Directors don’t have a clue of what the organizational human capital ought to do and is capable of doing. On a personal level, it is very difficult to behave objectively and yet make a strong one to one relationship with employees.
  4. Reality is, many believe that HR Managers/Directors don’t have a clue of what the organizational human capital ought to do and is capable of doing. On a personal level, it is very difficult to behave objectively and yet make a strong one to one relationship with employees.