SEPTEMBER 2016

HR and People analyticsHow to ensure impact and derive value from people insights

From analytics to Change with Impact

DATA MEANING BEHAVIOUR IMPACT

The issue in a nutshell

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Why is HR and People analytics important? Is HR able and ready to deliver the business benefits?

INGOING DRIVERS

HR’s CHALLENGE

Technology drive and Big Data

» Data amounts are growing

enormously » Speed of change to HR data

and surveys » Technology offers solutions

Agile business- handling of complexity

» Data insights are a cross-

functional innovation enabler » Data analytics linked to new

flexible organisational models » The new business wave like

Lean and outsourcing

HR’s needs/interest in changing focus

» Value of data, numbers and

technology » HR analytics and tracking of

metrics » HR’s lack of trust in the

business

HR’s capability challenge

» Build skills, competences and

organisation » Trust can be built from data

forming cultural meaning, transparency and thereby structure to free dataflow

» Ability to execute

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Key elements

People Analytics framework Overview of our suggested approach and process

Inputs and Impact measurements

Change journey with impact » Building organisational capabilities – centrally and linkage to local context as a connected network

» Priority of analytics, mindset and trust in data

» Changing human behaviour requires involvement and meaning of HR data created in teams and individuals

Vision and purpose » Impact map, business

drivers and ingoing hypothesis

» Ensure business ownership

» Set focus and plan journey

Data management » The right KPIs

» Data quality in focus

» Ongoing data ownership and drive integral to impactful analytics

HR analytics tools » Data capturing

systems and tools

» Reporting, analytics and planning tools

» Embed in processes

Analytical capabilities » Statistical and

analytical skills

» Hypothesis and causality logic

» Mastering of analytics tools

Engage the business » Engage network and

build scenarios

» Create transparency and understand business impact

» Learn, adjust and continuous effort

HR and talent KPIs Organisation,

network and culture

Key business data (sales, customers) Growth,

speed and earnings

External data (recruitment, comparisons)

Individual and mood

measurements

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Vision and purpose Essential for driving impact through People analytics

PEOPLE ANALYTICS

» Clear business drive and anchoring

» HR data linked to business context

» Focus and hypothesis-driven

IMPACT CASE

PEOPLE ANALYTICS VALUE PROPOSITION

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Data governance and ownership But do the business (and top management) really bother?

DATA FOCUS

Data administrators care about data – HR and business executives do not. It has been this way for a long time, but the increased focus on analytics and compliance creates momentum for changing this, if HR is able to tell the story and execute.

DATA QUALITY

» Most organisations still have several system of records for various HR data contributing to inconsistencies

» HR must foster basic business ownership of HR as “our data” and manage a number of iterative steps (definitions, collection, cleaning)

DATA MANAGEMENT AND DATA ANALYTICS

» The quality and trust in analytics is dependent on the data foundation and quality

» The ability to drive and maintain high data quality interdependent on its usage and accessibility to the business

Deployment and feedback Evaluation

Data analytics approach

Business understanding Modelling

Data preparation

Data ownership

Data requirements

Data definitions

Data collection Data cleaning

DATA COMPLIANCE

» HR data contains sensitive data and your analytics approach must build trust in how the data is used

» EU regulation and work councils place strong demands on organisations and their management to ensure data compliance ownership

» HR should use this focus and deliver on the promises in the delivery of HR analytics

Data management

Data analytics

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HR and analytics tools Technology is rapidly changing the game

HR-FOCUSED TOOLS » Analytics are embedded in integrated cloud HR solutions and are, in

some cases, built into processes » Built-in functionality ranges from simple reporting over strategic

insights to predictive analytics and planning functionality » Basics are most often plug-and-play and included in paid fee » Advanced capabilities only for top-tier vendors and typically with

some cost and potential extra effort

ANALYTICS-FOCUSED TOOLS » In-memory database technology with predictive and even prescriptive

machine learning capabilities » Best tools are user-friendly, visual, mobile and collaborative

– designed for business users, not (only) specialists » High cost and complexity of handling the preferred tools of the

company » No tool for all purposes, but great promises in fast technology

innovations

Analytics data functions

Usability and accessibility

Integration and platform

Collaboration and broadcasting HR specifics Vendor

HR core applications » Operational/transactional

metrics and reports

» Standardised

» Self-service options

» Application-specific data

Workforce analytics » Purpose-built for

workforce analytics

» Short implementation

» Possibly skip data warehouse

» Designed for HR and the business

Business intelligence » Expensive and lengthy to

implement and update

» IT expertise, data warehouse, complexity

» Designed for technical user rather than business user

Explorative analytics » SaaS, often a costly fee,

easy implementation

» General tools designed for business users

» Some data extraction and transformation effort

» Exploration and capabilities

HR

tool

s

Analytics tools

EVALUATION CRITERIA Evaluating what fits your purpose and organisation based on:

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KEY ROLES

Building analytical capabilities in HR … is the key to sustainable value

Buy-and-borrow strategies are great ways of accelerating skills and competencies, but only in the short term.

Evidence argue that long-term value comes from committing to analytics (build):

SUCCESSFUL STRATEGIES 1. Giving preference

to people with analytical skills when hiring and promoting.

2. Developing analytical skills through formal and on-the-job training.

3. Integrating new talent with more traditional data workers (buddy, mentoring…).

Data engineer

Breaking data leaks, creating linkages

Data scientist

Mathematicians, data modelling

Business translators

Business understanding and impact

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Engage the business Organise and make the interaction for local use of People insights

KEY ELEMENTS

Communicate value proposition of People analytics and apply and adapt to local context

Analytics team » Central HR drive of

analytics effort

» Statistical, analytical, HR and communication skills required

Train and educate managers » Basic analytics language

» Tools and usage

» Local adoption

HRBP » Understand the business

and cultural prerequisites

» Lift HRBP’s capabilities and build trust

Analytics team

HRBP

Managers

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How to get from the right diagnose to business impact

We recommend using a simple diagnostics tool to assess where your organisation is on the analytics journey, and then identify the key business challenges where HR insights can improve decision-making.

DIAGNOSTICS TOOL One tool is offered by CBS HCA Group focusing on identifying your company’s strengths and weaknesses. http://cssl.cbs.dk/hcaprofile/HCABenchMarking.aspx

IMPACTFUL IMPLEMENTATION Implement Consulting Group can help set the right focus and approach for your company’s People analytics.

Managing the change in the interaction between technology and people

is the key to success with HR analytics.

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From data to sustainable impact and value

What are the three most critical levers to consider when transforming data into impact in your organisation?

THE BIG PICTURE OF HR ANALYTICS’ VALUE GENERATION SOMETHING TO CONSIDER

IMPACT CASE

DATA VALUE PROPOSITION

? _________________________

_________________________

_________________________

Try to build on those levers when qualifying the desired impact and behavioural change in your own People analytics impact case !

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The project aims to improve performance in <business impact> and build the organisation’s capability and practices in <key behaviour>

IMPACT CASE SUCCESS CRITERIA

<The top-level impact case of the initiative is often related directly to increasing growth or profitability or reducing costs.

State the project’s success criteria in this perspective .

(You may also add a statement such as ”Specific success criteria and measurements for the project will be defined during the initial work”.)>

PROJECT VISION

<State the overall project vision>

• <State the ultimate impact targeted>

• …

<State desired impacts on relevant dimensions, e.g.: • Customer performance • Financial performance • Process performance • Compliance with external requirements • Intangibles and other benefits>

<State the desired impacts along relevant dimensions, e.g.: • Behaviours, such as specific practices applied • Organisational capabilities demonstrated • Technological capabilities demonstrated • Competence, knowledge and abilities of employees> <Behaviour impact 3>

<Behaviour impact 1>

<Behaviour impact 2>

<Business impact A>

<Business impact C>

<Overall impact>

<Business impact B>

BUSINESS IMPACT

BEHAVIOUR IMPACT

Change with Impact.