TELLING STORY WITH DATA: GAINING SENIOR- LEVEL SUPPORT FOR ANALYTICS AND PLANNING

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1 MERCER WEBCAST TELLING STORY WITH DATA: GAINING SENIOR- LEVEL SUPPORT FOR ANALYTICS AND PLANNING 24 September 2013 Astik Ranade, Principal Julia Howes, Principal

2 Today s Presenters Julia Howes Principal, Product Line Leader, Workforce Analytics & Planning Practice Mercer Astik Ranade Principal, Workforce Analytics and Planning Leader Asia, Middle East & Africa Mercer September 27, MERCER September 27,

3 Today s Discussion Introduction and Setting the Context Good story development Story 1: A case in point Story 2: Data driving business results Q&A Lessons learned and getting started as a power story teller MERCER September 27,

4 Storyboard: Patty s Pitfalls Patty reads a great article on metrics and decides to assign her two newly hired HR generalists to staff a new metrics and analytics function in HR. She directs the new function to research benchmarks and best practices in what they should measure. Based on her employees recommendations, Patty purchases some software that allows her to push monthly HR reports featuring the dashboard s standardized 25+ HR metrics to senior leaders inboxes, and collects data from 10 disparate data sources, such as vacancy rates and time to fill. She sends tables and pie charts. MERCER September 27, 2013 BEST PRACTICES IN METRICS & DASHBOARDS

5 Storyboard: Patty s Pitfalls Patty sends monthly reports on the same 25+ metrics to senior leaders for over a year. Patty s supervisor informs her that senior leadership wants data and they want her to design an employee survey. Patty feels like she s not getting through to her senior leaders and they don t understand the value of the data they are already collecting in the dashboard. MERCER September 27, 2013 BEST PRACTICES IN METRICS & DASHBOARDS

6 CEO s are gaining awareness on the impact of the organizations talent on business performance 2012 CEO Top 5 Challenges 1 Innovation 2 Human Capital CEO Top 5 Challenges Human Capital Operational Excellence 3 Global Political / Economic Risk 3 Innovation 4 Government Regulation 5 Global Expansion 4 5 Customer Relationship Global Political / Economic Risk MERCER September 24 th, 2013 Source: 2012 and 2013 The Conference Board CEO Challenge

7 Your Journey: Maturity Curve Impact: Business Performance Strategic Level 4 Human capital organization Level 3 Strategic workforce planning Optimize strategies to close gaps Create analytics and planning centers of expertise Identify key segments Model gaps and what if scenarios Close gaps through buy/build talent strategies Operational Level 2 Workforce analysis and dashboards Level 1 Budget-driven headcount planning Track and understand workforce flows Use technology to leverage data Spreadsheet driven Manual processes MERCER

8 Before you can begin interpreting a report, you must be able to identify and understand Required Measure Time Context Base Measures Calculated Measures Structural Context Optional Attributes (Comparison) Attributes (Filters) MERCER BEST PRACTICES IN METRICS & DASHBOARDS

9 Polling Question Exercise: Demonstration Data Q: Based on the visual on the screen, do you think more high performers have terminated in 2012 than medium performers? a) True b) False c) Neither Terminations Voluntary (High Performer) Average Headcount (High Performer) x 100% Terminations Voluntary (Low Performer) Average Headcount (Low Performer) x 100% Terminations Voluntary (Medium Performer) Average Headcount (Medium Performer) x 100% MERCER

10 Polling Question Results Q: Based on the visual on the screen, do you think more high performers have terminated in 2012 than medium performers? a) True b) False c) Neither 21% 48% 32% TRUE FALSE Neither MERCER

11 Today s Discussion Introduction and Setting the Context Good story development Story 1: A case in point Story 2: Data Driving Business Results Q&A Lessons learned and getting started as a power story teller MERCER September 24 th, 2013

12 Overcome Data Analysis Paralysis A detailed character-based narrative of a character s struggles to overcome obstacles and reach an important goal. Blend the art of story telling with the science of data analysis and research = Power Story Telling MERCER September 24 th, 2013

13 Good Story Development Beginning - introduce the reader to the setting, the characters and the situation (conflict). Plot point - situation that drives the main character from normal life toward some different conflicting situation that the story is about. Middle - series of complications and obstacles, each leading to a mini crisis. Climax the ultimate crisis. Resolution of the climax saving the day, feeling happy, celebrate. End - tie up the lose ends; share the morale of the story. Finish your story and get out! MERCER September 24 th, 2013

14 Typical Data Story Development Beginning Introduction to the study. Plot Point 1 - Discuss the variables studied. Middle - series of complications and obstacles, each leading to a mini crisis. Climax the ultimate crisis. Resolution - of the Climax, saving the day, feeling happy, celebrate. End - Present the results of the data analysis. Get out before the audience wakes up! MERCER September 24 th, 2013

15 Story Arc Middle Obstacles Conflict Beginning Setup, Characters Background, Who, What, Where End Resolution Understanding MERCER September 24 th, 2013

16 Evolving Story From Data Next, go to a case study to see impact of adding the middle MERCER September 24 th, 2013

17 Today s Discussion Introduction and Setting the Context Good story development Story 1: A case in point Story 2: Data Driving Business Results Q&A Lessons learned and getting started as a power story teller MERCER September 24 th, 2013

18 Improving Retention Through The Power of Disciplined Measurement Large regional bank with more than 20,000 employees experienced a surge in voluntary turnover, exceeding 40% among some occupational groups. Upward trend was imposing significant cost on the organization. MERCER September 24 th, 2013

19 What Was The Original Story? Beginning Money Workload End Retention MERCER

20 Turnover had more to do with career opportunity and the stability of management than with pay MERCER Analysis of actual turnover behavior

21 Turnover Had More To Do With Career Opportunity And The Stability Of Management Than With Pay MERCER Analysis of actual turnover behavior

22 A Dollar Is Not Always A Dollar... The bank could use money to solve turnover, but it would be misspent in some locations and ineffective in others. City G $5.20 City F $3.14 City E $2.85 City D $2.37 City C City B $1.87 $1.63 To achieve a 10% reduction in turnover requires very different amounts of pay increases in different labor markets. City A $1.09 Calculations are based on turnover elasticity at the metropolitan area level. MERCER

23 What Was The Story? Middle Careers Supervision Beginning Money Workload Data helped them confront and slay the real villain End Retention MERCER

24 Business Results Achieved Re-directed focus from just pay Actions included: Strengthening of career paths Enhancing internal mobility Focusing on career rewards and cash incentives for top-performing managers $50 + million in annual savings Turnover among non-exempts down by 40% in eight months Turnover among exempts down by about 25% in the same period MERCER

25 Today s Discussion Introduction and Setting the Context Good story development Story 1: A case in point Story 2: Data Driving Business Results Q&A Lessons learned and getting started as a power story teller MERCER September 24 th, 2013

26 What Is The Business Case? What jobs and skills are critical to business success? Where, and how many? What is the right cost structure? What are the talent plans required to buy and build the right capacity? Talent Risk Growth concerns or a weak pipeline for the future Financial / Operational Risk Lost revenue from having to slow operations or put them on hold HR Practice Risk Investments in the wrong people Overspending that can result from unpreparedness MERCER

27 More Sophisticated Analytics RetailCo: Advanced Analytics How Does the Workforce Impact Store Revenue and Profitability MERCER

28 RetailCo: Advanced Analytics RetailCo: Statistical Analyses Focused on Three Broad Categories of Drivers of Both Turnover and Sales External Influences Organizational Practices Individual Attributes Local unemployment rates Distance to work Local labor pool (diversity, education, age, income) How Does the Workforce Size Supervisor spans of control Promotion rates Turnover rates Age Impact Store Revenue Tenure Age and Profitability Gender Ethnicity Tenure Performance ratings Compensation Diversity Prior year s sales trends Supervisor promotion rates, turnover rates, age, tenure Non-supervisor promotion rates, turnover rates, age, tenure Job status Participation in training Internal mobility Employment status Hire source Location MERCER

29 RetailCo: What Internal Factors Drove the Sales of Goods? The Optimal Model Full Time Employees Location Influence Part Time Employees Overtime Compensation Experienced Full Time Manager High Unemployment Rate Performance High Tenure The models on which these results are based control for individual attributes, organizational factors and external influences. MERCER

30 Q&A MERCER September 27, 2013

31 Today s Discussion Introduction and Setting the Context Good story development Story 1: A case in point Story 2: Data Driving Business Results Q&A Lessons learned and getting started as a power story teller MERCER September 27, 2013

32 Data Dialogue Action Results The magic is in the dialogue phase; how you transform your big data to a story that evokes emotion and dialogue Dialogue Action Results Data Multiplicative effect Evoke emotion Drive action and results MERCER September 24 th, 2013

33 Caveat Match people to data levels Data people Dialogue people Good stories come from all levels of data MERCER September 24 th, 2013

34 Starting point Great story tellers first FIND GOOD STORIES. Document stories; keep journals. Learn to create your own story by diagnosing the stories you discover: Find the beginning, middle and end; study how the stories are told. GREAT data coaches find good data stories; the place to start. MERCER September 24 th, 2013

35 What s Coming Up Next Workforce Analytics And Planning Webcast and Workshop Series STRATEGIC WORKFORCE PLANNING: Defining and Fulfilling Business Requirements October 30, 2013 WEBCAST Predictive analytics: How the power of analytics can help drive business success November 6, 2:00 PM-3:00 PM edictive-analytics For more details, visit MERCER September 27, 2013

36 MERCER September 27, 2013

MERCER WEBCAST PREDICTIVE ANALYTICS How analytics can drive business success

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