From Big Data to Big Insight - Dave Edwards, SHL/CEB

1 © 2013 SHL, a part of CEB. All rights reserved.Version 1.0 Last modified 20 September2013

Commercially confidential

From Big Data To Big InsightDavid Edwards, Head of Professional Services, CEB



Who We Are

CEB is the leading member-based advisory company. We give senior leaders and theirteams insight into how the most successful organizations operate, equipping them withactionable solutions to transform operations.

CEB’s Integrated Talent Management Services help executives improve businessperformance by realizing the value and potential of people. We offer support across theentire employee life cycle, engaging HR and leaders from Finance, IT, Sales and otherorganizational teams. Our SHL Talent Measurement Solutions offer science-basedassessments, benchmark data, technologies and consultancy services to helporganizations assess, select and develop the right people for the right roles.

30 Years of Experience

110+ Countries Represented

10,000+ Participating Organizations

300,000+ Business Professionals

Solutions Overview

87% of the Fortune 500

80% of the FTSE 100

62% of the Dow Jones Asian Titans 50

Tools & Solutions Integrated Talent Management ServicesBest Practices & Decision Support

Analytics &Planning

Market Insights Best PracticeImplementation

Learning &Development

Workforce Surveys& Analytics

SHL TalentMeasurement

Solutions

LeadershipCouncils



Problem in the World of Big Data……Size isn’t the issue……• 2013 CEB Study – 85% Executives Surveyed stated that more data

was not adding up to better decisions

• For people in HR and Talent Management Functions this is a problem

• Business Leaders recognize the need to identify, develop and retainfuture managers. But…..

What’s the ROI?



4



Moving from Big Data to Big InsightsNeed to address fundamental questions

• Do I have the people to drive my business forward? (Present – Future)

• Am I confident that the people investments I make today are going to payoff tomorrow?



What is a Big Insight?A big insight tells an organisation whether an issue is truly an issue ornot….

….and, if it is, what actions need to be taken to resolve it and improveorganisational performance.

It is the value of the insight and not just the size of the data that makes itbig.



How do I achieve Big Insight?4 key principles can be applied to deploy talent analytics that deliver thevalue of big insights:

1.RelevanceCEB Study – Only 14% of executives believed that Talent Analytics werebeing used to explore the right issues.

So….best practice in talent analytics…must have relevance



HIPO programmes deliver worrying low ROI

36%

64%

EffectiveIneffective

Source: HIPO Program Operations and Outcomes Survey 2012

HIPO programmes target future leaders, yetstruggle to do so effectively

The top objective of most HIPO programmes (81%) isto build a pipeline for succession management

But few HIPO programmes deliver expected talentoutcomes

Only 36% of HIPO programmes are effective atbuilding a pipeline succession management

Refers to percentage of respondents who choose Very Effectiveor Effective on a 7 point scale

Percentage of internal job moves made by High Potentials thatend in failure.

40%

60%

FailureSuccess

With dangerous consequences

Nearly 40% of internal job moves madeby people identified as “high potentials”end in failure.

Source: CLC HIPO Program Operations and Outcomes Survey, 2012



How do I achieve Big Insight?2.Impact

Talent investments are long term….

Need to manage the odds of a positive return on investment



How do I achieve Big Insight?3.Action

Shouldn’t just describe where we are now and where we want to betomorrow…..

Should set a prescription for tomorrow…..



How do I achieve Big Insight?4.Perspective

The most fundamental of the principles…..

Are the right questions being asked?

Is the right data being used?

“If you do not know how to ask the right question, you discover nothing.”William Edwards Deming (TQM)



Challenges we hear

Source: CLC High Impact leadership Transitions, 2012

Source: The SHL Talent Report 2012 Source: CLC Realising the full potential of rising talent 2005

“We are concerned about the strength ofour leadership pipeline.”

“The failure rate of transitioning leadersis high.”

“We don’t know if we are bringing theright people into our talent pools.”

“Our HIPO programmes are not delivering areturn for the business. ”

of high performers currentlyhave the potential to rise andsucceed in more senior criticalpositions

of all transitioningleaders underperform

have the potential to beeffective leaders in the nearterm

Only

29%1/15

46% of internal job moves made bypeople identified as “highpotentials” end in failure40%

Only

Nearly

Source: CLC HIPO Program Operations and Outcomes Survey, 2012

The vast majority of executives believe their organisations' succession managementsystems fail to produce a sufficient supply of leaders.



Key Questions1. What is it that people need to have to rise to a more senior position?

2. Will they be successful when they get there?

3. Will the employee you have nominated as high potential be with youwhen they get there?

Note: Between 14% and 33% of high potential candidates reporting that they are looking outside their sponsoring organisation foremployment.



What are the outcomes we want to achieve?

Results(Lag)



Behaviour Results(Lag)

What behaviours drive those outcomes?

15




Potential(Predictive)

What are the characteristics of peoplethat drive those behaviours?

16




Our organising structure

17

Potential(Predictive)



18



SalesQualitySafety

ProductivityLeadership

Cognitive AbilityBehavioral Style

MotivationJudgment

Predictive analytics aboutpeople, behaviour and results

19



What is CEB Talent Analytics?

CEB Talent Analytics benchmarks your criticaltalent pools against the best in yourmarketplace and is built upon the largestglobal database on the potential of to deliverorganisational success.

CEB Talent Analytics is benchmarking to gain the People Insight thatdrives business results

CEB Talent Analytics provides data-driven talentinsights that improve business performance



Applying Talent Analytics

Talent Analytics provides data to drive talent decisions:

Talent Audit – Enhances internal talent benchmarks

Recruitment – Directs recruitment spend effectively

Leadership Development – Provides critical insights forleadership effectiveness programs

High Potential Programmes – Ensures high potentialprogrammes are best-in-class

High Volume Programmes – Drives decisions on criticalroles (e.g. customer contact) using market-competitive data



In summary

• Moves predictive analytics from focusing on the individual to aview of the entire organisation

• Provides actionable competitive talent data for improving theacquisition and internal deployment of employee talent

• Gives an organisation metrics on people effectiveness,not just efficiency

• Is a new dimension in corporate analytics that drives businesssuccess

“CEB is looking to change the game by givingemployers new avenues of insight to powerdecision-making”

Aberdeen Group



For Example:

Function, geography and job level− An organisation may be attracting great marketing talent but poor sales talent,

or strong graduates and weak leaders, or weaker graduates in a particularcountry

− Each function, geography or job level requires a different benchmark forcomparison to reveal this insight

Candidate source− From which source is the organisation attracting the strongest/weakest

candidates?− We compare each population to the same benchmark to reveal this

Stages through the recruitment process− The process may be selecting more or less of any given top talent− We compare the populations progressing to the same benchmark to reveal this

Real insight comes when we look at more granularpopulations



0

25

50

Leading &Deciding

Supporting &Cooperating

Interacting &Presenting

Analysing &Interpreting

Creating &Conceptualising

Organising &Executing

Adapting &Coping

Enterprising &Performing

Applicants

Invited to Assessment Centre

Interviewed

Hired

SHL Banking & Finance Benchmark

Your recruitment process is screening out Leading & Deciding and Enterprising & Performingstrength…

Is the focus on acquiring talent that “delivers” high enough among recruitment decision-makers?1

The biggest step change is occurring in your assessment centres; look here first

Overall process effectiveness: Competency

Notes: Benchmark for all applicants reaching eachstage in the recruitment process against the bankingand finance industry globally. Where bars increaseacross stages, stronger talent is being acquired.Where the bars decrease across stages, the levelof talent is being reduced at successive stages.

% Top talent

11

Capability profile through the recruitment process



0

25

50

Leading &Deciding



Analyzing &Interpreting

Creating &Conceptualizing

Organizing &Executing

Adapting &Coping


Direct Applicants

Agency Sourced Applicants

Evaluating effectiveness by candidate source

Direct candidates appear stronger on five dimensions1

Candidates supplied by agencies fall short of thebenchmarks for Creating and Conceptualizing andEnterprising and Performing2

Note: Benchmark for all applicants againstthe banking and finance industry globally.

% Top talent

1

11 1

1

2

2

CEB TalentAnalytics

can be used tocompare recruiting

sources orrecruiting stage



Evaluating the depth of the leadership pool

Overall leadership potential

Notes: Benchmark for all hires against the bankingand finance industry globally.

At their best when working ina well defined role with clearresponsibilities and expectations

At their best in a high profile rolewhere they can drive innovationand change

At their best in a role responsible forthe implementation of processes andthe delivery of targets

At their best in a role where they canframe, lead and deliver company widestrategy, working closely with andinfluencing key stakeholders

Transactional

Tran

sfor

mat

iona

l 8%

16%

18%

9%

3%

19%

12%

6%

8%

11

1

CEB Banking and Finance BenchmarkYour hires%

Overall, this organisation’s hires outperform the benchmark atthe High and Very High levels of leadership potential1

They might have some challenges in managing processeseffectively and delivering against targets

CEB TalentAnalytics

can be used tocompare

leadershipeffectiveness



Real World Application of CEB Talent Analytics



How do our junior managers compare to the global benchmarkpopulation?”



How do your junior managers compare to the global benchmarkfrom a competency perspective?

The graph below shows the proportion of your junior managers (pink bars) who fall into theupper quartile of talent (top 25%) on the global SHL Competency Benchmark (horizontal bluelines)

Your junior managers match the global benchmark on Organising & Executing andEnterprising & Performing

They lack bench strength on the other six competencies particularly on Interacting &Presenting

They show higher bench strength on Creating & Conceptualising, Organising & Executingand Enterprising & Performing in comparison to the other competencies

SHL Competency Benchmark: ME Retail Organisation Overall Profile

0

10

20

30

40

50

Leading &Deciding






Adapting &Coping


ME Retail Org

SHL Global Benchmark% Top talent



0

10

20

30

40

50

60

70

Level 1 Level 2 Level 3 Level 4 Level 50

10

20

30

40

50

60

70


ME Retail Org

SHL Global Benchmark

What do they look like in terms of Verbal and NumericalReasoning Ability...

In comparison to the global benchmark your junior managers underperform at Levels 3through 5 where talent is strongest for Verbal Reasoning Ability

More than half of your junior managers fall into Level 1 on Verbal Reasoning Ability

For Numerical Reasoning Ability, your junior managers also lack benchstrength at Levels 3through 5

Around 4 in 5 of your junior managers fall into Levels 1 and 2 on this ability

What do your junior managers look like in terms of Inductive Reasoning Ability?

Overall profile:Verbal Reasoning Ability Numerical Reasoning Ability



...and on Inductive Reasoning Ability?

0

25

50


ME Retail Org

SHL Global Benchmark

Overall profile:Inductive Reasoning Ability

0

10

20

30

40

50

60

70


• For Inductive Reasoning Ability, your junior managers underperform the global benchmark at Levels3 through 5 where talent is strongest

• You have some junior managers at Level 4 on this ability

• Nearly half of your junior managers fall into Level 1

• How do your junior managers compare to the Middle East region?



How do our junior managers compare to the Middle Eastbenchmark population?"



How do your junior managers compare to the Middle Eastfrom a competency perspective?

Your junior managers lack bench strength across the competencies in comparison to the Middle East(horizontal blue lines)

This lack of bench strength is less significant for Supporting & Cooperating, Organising & Executingand Adapting & Coping

They show higher bench strength on Creating & Conceptualising, Organising & Executing andEnterprising & Performing in comparison to the other competencies

Why is bench strength lower on certain competencies, in particular Interacting & Presenting?

SHL Competency Benchmark: ME Retail Organisation Overall Profile

0

10

20

30

40

50

Leading &Deciding






Adapting &Coping


ME Retail Org

SHL Middle East Benchmark% Top talent



0

10

20

30

40

50

60

70


10

20

30

40

50

60

70


ME Retail Org

SHL Middle East Benchmark

How do your junior managers compare to the Middle East on Verbal andNumerical Reasoning Ability...

For Verbal Reasoning Ability, your junior managers underperform the MiddleEast on Levels 3 through 5 where talent is strongest

They also lack bench strength at Levels 3 through 5 on Numerical ReasoningAbility in comparison to the Middle East

How do your junior managers compare to the Middle East on InductiveReasoning Ability?

Overall profile:Verbal Reasoning Ability Numerical Reasoning Ability



...and on Inductive Reasoning Ability?

0

25

50


ME Retail Org

SHL Middle East Benchmark

Overall profile:Inductive Reasoning Ability

0

10

20

30

40

50

60

70


• For Inductive Reasoning Ability, your junior managers underperform the MiddleEast at Levels 3 through 5 where talent is strongest

• You have some junior managers at Level 4 on this ability

• How can these abilities be developed among your junior managers?



• Overall, your junior managers show bench strength but this varies across the eightcompetencies

• Bench strength is higher for Creating & Conceptualising, Organising & Executing andEnterprising & Performing in relation to the other competencies

• A key development need has been identified as Interacting & Presenting

• Your junior managers match the global benchmark on Organising & Executing andEnterprising & Performing

• They lack bench strength when compared to the Middle East region

• Why is bench strength lower for certain competencies?

• Which competencies are essential for effectiveness in the junior manager role?

• From a Reasoning Ability perspective, your junior managers underperform against theglobal and Middle East benchmark populations

• For Inductive Reasoning Ability, you have some junior managers at Level 4

• How can you develop these talent gaps and abilities among your junior managers?

Summary of findings and recommendations



How do I achieve Big Insight?1.Relevance

2. Impact

3. Action

4. Perspective



Thank you

David EdwardsHead of Professional Services, [email protected]

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