Workforce Planning & Analytics How Data-Based Insight Informs Talent Strategy Presented by: Al Adamsen [email protected] Twitter:

Workforce Planning & AnalyticsHow Data-Based Insight Informs Talent Strategy

Presented by: Al [email protected]

Twitter: @alaadamsen

415-815-7297

October 8th, 2014 2

Are our people – our talent – our most important asset?

If so, what’s our people strategy or talent strategy?

If we have one, how is it formulated, measured, & managed over time?

Are we in integrity with our words?

How do we

consciously

create culture

&

customer connection?

Is this important?

“The beginning of wisdom is calling things by their right names.”

- Chinese proverb

Talent Acquisition. Talent Management. Talent Development. Training. Coaching. Career Development. Total Rewards…

In most organizations these processes are disparate: different frameworks, different systems, different data, different definitions, different insights, different owners. Often a complete mess…

“Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty lies opportunity."”

- Albert Einstein

What if we, as leaders,…

• had the people we needed when we needed them?

• inspired the individual, team, and organizational behaviors we desired?

• created systems and processes that facilitated organizational excellence?

How great would this be?

Can we make this happen?

Yes!

What does being awesome at this look like?

“Let’s stop messing around and use language consciously

and with intent.”

Six Questions:

1. How do I get started or advance my organization’s capability & capacity?

2. How do I create a vision and a roadmap to achieve it?

3. At what point do I bring in a technology enabler and why?

4. What are some of the key attributes of successful organizations?

5. Predictive analytics and big data: When should we start?

6. What will future hold? And what are the risks and opportunities?

October 8th, 2014 11

We have a crisis

• Creativity

of

• Courage

• ConfidenceOctober 8th, 2014 12

We are…

Explorers Creators


Important to Millennials

Fairness

Respect

Significance

GrowthOctober 8th, 2014 14

Research AgendaTo-Do List Not To-Do List

1.Project A2.Project B3.Project C

1.Project D2.Project E3.Project F4.Project G5.Project H6.Project I7.Project J

The Talent Strategy Team reviews potential projects, sets the research agenda, commissions projects, resources the projects, consumes the resulting insight, and makes decisions.


Confidence“The feeling or belief that you can rely on

someone or something to perform in a certain wayat a known time in the future; firm trust”

Partner

Context &Communication

Customer

Consumption& Decisions

Supplier

Information& Insight

1)

2)

3)


Analytics Maturity ModelPeople: Capability

& Capacity

Process/Structure

Technology

GovernanceYour Co.?Analytic

Competito

rs


“Habit 2: Begin with the End in Mind.”

- Stephen Covey



What’s the brand of the group?What’s its charter or mission statement?

Mission Statement

“We deliver uniquely valuable workforce insight that reduces risk and increases the likelihood that

talent investments reap the desired return.”


Workforce Intelligence: 3 Workstreams

Strategic

Operational

Technical

PeopleProcess

Tech

PeopleProcess

Tech

PeopleProcess

Tech

People: Who is doing the workProcess: How information is acquiredInterface: What they see or use(e.g., is what format it’s viewed/analyzed)


The Value Proposition at 3 Key Levels

• Workforce related decisions based on lagging indicators such as turnover and tenure

• Want to deliver data-driven insights and leading indicators

• Workforce related decisions based on lagging indicators such as turnover and tenure

• Want to deliver data-driven insights and leading indicators

2014

• Not using workforce insight to manage operations, at least not in a systematic way

• Decision-making is based largely on experience and gut feel, not data-based insight

• Not using workforce insight to manage operations, at least not in a systematic way

• Decision-making is based largely on experience and gut feel, not data-based insight

• Report lagging indicators of marginal value

• Challenging to generate meaningful workforce insight

• Basic systems for analytics and reporting

• Report lagging indicators of marginal value

• Challenging to generate meaningful workforce insight

• Basic systems for analytics and reporting

2016

• Have easily obtainable insight that informs strategic workforce decisions

• Use leading indicators to monitor and manage organizational effectiveness


• Use leading indicators to monitor and manage organizational effectiveness

• The systematic, recurring use of proven metrics to prioritize and focus action

• Department heads anticipate and act on recurring workforce reports



• Generate recurring reports that are eagerly anticipated

• Produce insight that’s valued at all levels and functions

• Manage a BI environment (BO) that enables the above


• Produce insight that’s valued at all levels and functions


Strategic

Operational

Technical


2016…What it looks like... What it feels like…

• Feel in control, confident -- working with leading indicators and making smart, effective decisions.

• Feel we’re winning – that our workforce initiatives are a source of competitive advantage.

• Feel we’re doing the right thing – for our employees, customers, and shareholders.

• Feel in control, confident -- working with leading indicators and making smart, effective decisions.

• Feel we’re winning – that our workforce initiatives are a source of competitive advantage.

• Feel we’re doing the right thing – for our employees, customers, and shareholders.

• Feel capable, effective – able to deliver timely and relevant insights to leaders

• Feel valued, appreciated – generate insight that timely, valued, and anticipated

• Feel meaningful, impactful –insight is used to drive observable, measurable change

• Feel capable, effective – able to deliver timely and relevant insights to leaders

• Feel valued, appreciated – generate insight that timely, valued, and anticipated

• Feel meaningful, impactful –insight is used to drive observable, measurable change

• Feel innovative, empowered – working with leading technologies in unique ways

• Feel valued, appreciated – leaders anticipate deliverables and provide recognition

• Feel meaningful, impactful – sense that what’s being done truly makes a difference at all levels

• Feel innovative, empowered – working with leading technologies in unique ways

• Feel valued, appreciated – leaders anticipate deliverables and provide recognition

• Feel meaningful, impactful – sense that what’s being done truly makes a difference at all levels


• Use a set of leading indicators to monitor and manage organizational effectiveness


• Use a set of leading indicators to monitor and manage organizational effectiveness






• Ability to do statistical analysis using numerous data



• Ability to do statistical analysis using numerous data


“Find the Feeling!”

Strategic

Operational

Technical


BI Data MgtCoE

Phase 3 Launch

Phase 2Launch

StrategicDecision-Making

BI and DataManagement

Center of Expertise

(CoE)

RELEASE 3RELEASE 2

Iterative Release Cycles Using Agile Development Principles

QTR 1 QTR 2 QTR 3 QTR 4 QTR 5 QTR 6 QTR 7 QTR 8

RELEASE 1

Scale leading

practices

Integrate into Decision-Making Processes namely Operating

Strategy, Budgeting, & Marketing

Phase 1Launch

Build Learning Agenda and the Capability & Capacity to Pilot Analytical Projects & Create Supporting Metrics/Reports

Build Analytics foundational infrastructure, environments,

processes, capabilities, monitoring and compliance

Expand Capability &

Capacity

Rapid Evolving Span of

Analytics

Concept Solution & Data Model

Educate Executives & Partners

RELEASE 1 RELEASE 2 RELEASE 3

Integrate into Strategic Planning

Integrate into ongoing Decision-Making

Create CoE approach & apply to all analytics

Accelerate speed of doing

analytics

Improve scalability,

reliability, lower cost to maintain

Cost of changes and O&M should

decline

Strategic

The Workforce Intelligence Roadmap


Driving Change…

Direct the Rider= Data + Context

Motivate the Elephant= Visualization + Communication

Shape the Path= Where we’re going + How we going to get there


What’s all this About?

• Improving Performance• individual, team, and organizational performance

• Improving The Work Experience• job satisfaction, purpose, and organizational

• Reducing Risk• talent acquisition, investment, retention, and business risk


Enablers of Operational Excellence

Workforce Intelligence Services

Workforce Analytics

• Predictive Analytics & Linkage• Big Data & Machine Learning • Social Network Analysis• Experimentation

Workforce Planning

• Forecasting Labor D. & Supply• Gap Analysis• Modeling & Scenario Planning• Talent Strategy Optimization

HR Metrics & Reporting

• Descriptive Statistics• Cluster & Basic Analyses• Compliance Reporting• Dashboards & Scorecards

Workforce Management

• Payroll Allocation• Labor Scheduling• Modeling & Scenario Planning• Productivity Optimization


Optimize the Quantity & Quality of Information

Quantity ofInformation

Value

Optimal Quantityof Information

CompetitiveAdvantage(just right)

CompetitiveDisadvantage

(too little)

CompetitiveDisadvantage

(too much)

The Signals

in the Noise


What Can Be Done Now?

Time/Effort

Value/Impact

Reports

Dashboards/Scorecard

Scenario Planning/Simulation

Correlation/Regression

Optimization/Machine Learning

PredictiveAnalytics


What Can Be Done Now?

HR Metrics & Reporting• What is happening?• Where is it happening?• Scorecards, Recurring Reports• Ad hoc Reports


Workforce Planning/Analytics• Who do we need, when, & where?• What is affecting staff and why?• Forecasting, Scenario Planning• Cluster Analysis, Data Mining

Workforce Planning/Analytics• Who do we need, when, & where?• What is affecting staff and why?• Forecasting, Scenario Planning• Cluster Analysis, Data Mining

Advanced Analytics• What can be leveraged? Risk?• What’s the probability of success?• Predictive Modeling/ROI• Linkage Research

Advanced Analytics• What can be leveraged? Risk?• What’s the probability of success?• Predictive Modeling/ROI• Linkage Research

Time/Effort

Val

ue/

Imp

act






ActionCreating Knowledge

Data Staging/Aggregation

Analysis/Reporting

Packaging/Story Telling

Communication/Facilitation

Action/Positive Change

Systems/Data

Analytics/Insight

Do Actions Reflect Data-Driven Insight?

Bridging the Gapbetween Knowledge

and Action

© 2014 Talent Strategy Institute

The Data-to-ChangeTM Process:


WP&A: Three Work-streams

What we want & when we want it…

What we want & when we want it…

Staging Data and Performing the

Analytics…

Staging Data and Performing the

Analytics…

Understanding & Making

Decisions…

Understanding & Making

Decisions…Strategic

Operational

Technical

How the deliverable will be

created…

How the deliverable will be

created…

Packaging & Communicating…

Packaging & Communicating…

Gov

erna

nce


Data Staging/Aggregation

Analysis/Reporting

Packaging/Story Telling

Communication/Facilitation

Action/Positive Change

Analytics/Insight

Do Actions Reflect Data-Driven Insight?


The Data-to-ChangeTM Process:

STRATEGIC

TECHNOLOGICAL

OPERATIONAL

Governance

Systems/Data


Finance

Most organizations (nearly all) do not extract a level of value from their HRIT investments commensurate with the money, time, and effort devoted. Workforce Planning/Analytics helps organizations maximize the value derived from HRIT investments (a.k.a. “data assets”). In turn, the insight generated serves as a unique, hard-to-replicate competitive advantage as leaders are able to make more effective decisions.

Applicant

Tracking

Operations

Perform

anceM

anagement

Learning

Survey

HR

MS

“Decisions are now basedon what we know not

what we ‘think’ we know.”HR Metrics& Reports

context

Aggregating & Analyzing DataE

xternal Data

Aggregate

Embedded

Analytics

WorkforceInsight

Planning/

Analytics

Integrated

Analytics


A Few Notes on this Thing Called Big Data

"Big Data are high-volume, high-velocity, and/or high-variety information assets that require new forms of processing to enable enhanced decision making, insight discovery, and process optimization.”

Gartner Research, 2012

Volume

Velocity Variety

BIG DATA

Insight A

Insight B

Insight C

The Story


CapabilityCapacity

CostConstruct

The 4 C’s of Workforce Planning


Current Headcount Attrition Talent Demand Talent Gap

Internal Development

Strategy

External Recruiting Strategy

OrganizationDesign/

Restructuring

External Help

100 -20 110 -30 ? ? ? ?

(a) Internal Supply:Who do we have now?What are the critical roles?What are the critical skills?Where are they?What are their intentions?From where are they

coming?

(c) Forecasted Internal Supply

(b) Talent Demand: What will we need? (e) Gap Analysis:

(Δb + Δd = c)How big is the gap? What can/should be done

to fill it?Development strategiesRecruiting strategies

Current StateAssessment

Future StateVisioning

StrategyFormulation

Execute andAdjust

(d) Forecasted External Supply

(f) Take Action & Adjust:Implement

Development strategiesRecruiting strategies

Workforce Plan


The TSI Workforce Planning Process


External View

Internal ViewBusiness Strategy

& Budget

RecruitingStrategy

Forecast Applicant Pool

DevelopmentStrategy

Forecast Internal Supply

Talent Capacity &Labor Modeling

Business & Financial PlanningTalent Planning

Org. Design, Contingent Labor,

FT-PT Mix, etc.

Gap


The TSI Workforce Planning Model

Attributes of Successful Employees

AssessmentStrategy

Audit InternalSupply

Audit Labor Pools

Talent Demand(Quantity of Capability)

See the TAD Framework that follows

Approaches to Analytics

Deductive Reasoning

e.g., Hypothesis Testing

Inductive Reasoning

e.g., Data Mining


Leadership

HR & Talent Management

Leaders, Managers,& the Workforce

ExternalCustomers

InternalOperations

FinancialOutcomes


Talent Mgmt. Activities Workforce Attributes Balanced Scorecard

The TSI Workforce Analytics Model


The Power of Story

AssociateEngagement

CustomerSatisfaction SalesOnboarding

$1M 3pt. 2.5pt. 6%**

A $1M annual investment in onboarding programs decreased 1st year terminations by 30% and was credited with being a key driver of increasing employee engagement* at all levels (credited with ¼ (3) of the 12 percentage point increase). This increase drove 33% of the increase in customer satisfaction (2.5 of the 7.5 percentage point increase). This, in turn, explained 6% of the sales increase. At a $1B company growing at 10% per year this means that $6M of the additional $100M in revenue can be traced back to improvements in onboarding and employee engagement.

* Percent favorable; determined through analyzing an employee survey** 6% of the sales increase is explained by customer satisfaction relating to the employee experience


New Data/ Information

The Probability of a Related Event

The Prior Probability of an Event (%) Apply Bayes’Theorem

Posterior Probability

What’s the likelihood Joe will be promotion-ready in 12 months?

The Likelihood of an Event Now given all available Data/Information (%)

Bayes’ Theorem


Han J, Kamber M. Data Mining: Concepts and Techniques. Second edition, 2006. Morgan Kaufmann.

Decision Trees


http://www.esri.com/software/arcgis/arcgisonline/apps/esri-maps-for-office


http://www.esri.com/software/arcgis/arcgisonline/apps/esri-maps-for-office


Strategists

Research Agenda,

Process Improvements,

System Decisions,

Measurement Strategy

( )Strategists

Measurement Analytics Change

“A measurement strategy must work in concert with an analytics strategy.”


SkillsTechnical skills related to a specific role

BehaviorsBehavioral "skills" related to the role, the team, and the organization

ExperienceWhat someone has done, where they've done it, and for how long -- this is an "audit" not a grade of how someone did

Education/KnowledgeFormal education (certificates, degrees, etc.) and informal knowledge (books read, workshops taken, etc.)

Contributions/AccomplishmentsWhat someone actually achieved, or what someone is expected to achieve (their goals), over a time period

ActivitiesHow someone spent his/her time; and how time should be spent moving forward

RelationshipsWhat relationships someone have now; and what relationships can/should be developed

Intentions/PassionsWhat goals they have, and what one's energy and focus

The Talent Assessment & Development (TAD) FrameworkTM


Used for creating job descriptions, assessing talent, developing talent, and rewarding individual, team, and/or organizational contribution


New Role/Job Description

Internal Candidates

External Candidates

Ass

ess

& D

evel

op

Recruit & Assess

Compare

Assessing & Developing both Internal & External Talent with the Same Lens


LeaderWorkforce Insight

HR Metrics &Reporting

EmployeeSurveys

WorkforceAnalytics

•Cluster Analysis• Linkage Research•Cost of Turnover•Return on Investment

•Onboarding•Engagement•Retention•Culture• 360-degree•Exit

•Recurring Reports•Scorecards•Ad hoc Reports

Skills:• Technology savvy• Process orientation• Metrics/Analysis capability

Skills:• I/O Psychology/OD education• Communications/Collaboration• Project Management

Skills:• Analytics education & experience• Savvy with analytic technologies• Business economics understanding

Skills:• Leadership and learning skills• Packaging & Story-telling: Communications• Influencing and affecting change

WorkforcePlanning

•Supply Forecasting•Demand Forecasting•Gap Analysis•Scenario Planning

Sample CoE


Critical Attributes of Modern Analysts

Learning Mindset Systematic Thinking

Expert Communicators/Facilitators

Intake

Express

Probabilistic Scenarios


Analytics Maturity ProgressionValue/Impact

Time

Stage 4:Operationalize Insight

Analytics Competitor

• Insight is repeatedly used to formulate HR & Business Strategy.

• Insight is repeatedly used by Managers in the field.

• Insight is obtained quickly & accurately from an on-demand platform.

Stage 1:Get Data Right

Analytics Hopeful

• Do I have good data to work with?

• If not, what must I do to improve it? Improve it.

• Do I have the people in place to perform analytics?

• Do I have the necessary technologies?

When Yes

Stage 2:Create Context

Analytics Doer

• Can we aggregate and structure data in a usable way?

• Do we have people experienced in analytics?

• Do key metrics now have a story around them?

• Is there a growing demand for insight?

When Yes

Stage 3:Use Insight

Analytics User

• Do we have an on-demand analytics platform?

• Are those doing analytics influencing change?

• Are insights being used in the field?

• Are dashboards w/ meaningful metrics (KPIs) being used?

When Yes


Value/Impact

Time

Stage 4:Operationalize Insight

Analytics Competitor

• Insight is repeatedly used to formulate HR & Business Strategy.

• Insight is repeatedly used by Managers in the field.

• Insight is obtained quickly & accurately from an on-demand platform.

Stage 1:Get Data Right

Analytics Hopeful

• Do I have good data to work with?

• If not, what must I do to improve it? Improve it.

• Do I have the people in place to perform analytics?

• Do I have the necessary technologies?

Analytics Doer Analytics User

Stage 2:Create Context

Stage 3:Use Insight

LEARNING

“PRACTICE!”

Analytics Maturity Progression


Six Questions:

1. How do I get started or advance my organization’s capability & capacity?

2. How do I create a vision and a roadmap to achieve it?

3. At what point do I bring in a technology enabler and why?

4. What are some of the key attributes of successful organizations?

5. Predictive analytics and big data: When should we start?

6. What will future hold? And what are the risks and opportunities?


October 8th, 2014 TSITalent Strategy Institute

Workforce Planning & Analytics:How Data-based Insight Informs Talent Strategy

Presented by Al AdamsenTalent Strategy Instituteal.adamsen@talentstrategyinstitute.com415-652-2745LinkedIn: Al AdamsenTwitter: @aladamsen

To makin’ great things happen!

Thank you!


Documents

Workforce Planning & Analytics How Data-Based Insight Informs Talent Strategy Presented by: Al Adamsen [email protected] Twitter: