Workforce Planning & Analytics: Advancing Your Organization s Capability

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1 Workforce Planning & Analytics: How to Create or Advance Your Organization s Ability to Generate Actionable Workforce Insight Presented by Al Adamsen LinkedIn: Al Adamsen Al Adamsen and The 1

2 Analytics Maturity Progression Value/ Impact Analytics Hopeful Analytics Doer Analytics User Analytics Competitor Stage 1: Get Data Right Stage 2: Create Context Stage 3: Use Insight Stage 4: Operationalize Insight When Yes 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 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 Do we have an ondemand analytics platform? Are those doing analytics influencing change? Are insights being used in the field? Are dashboards w/ meaningful metrics (KPIs) being used? 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. Time Al Adamsen and The 2

3 Important to Millennials Fairness Respect Significance Growth Al Adamsen and The 3

4 Are our people our talent our most important asset? If so, what s our talent strategy? If we have one, how is it formulated, measured, & managed over time? Are we in integrity with our words? Al Adamsen and The 4

5 Aligning Formerly Disparate Processes Knowledge Transfer Exit HR Analytics Career Development Performance Management Alumni Networks Employment Branding Workforce Planning Applicant Tracking Candidate Integrated Assessment Talent Hiring Management Learning Recruiting Total Rewards Onboarding Organizational Effectiveness Succession Planning Internal Communications Al Adamsen and The 5

6 Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty lies opportunity." - Albert Einstein Al Adamsen and The 6

7 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? Al Adamsen and The 7

8 What would this look like? What would AWESOME look like? What would it feel like? How would we make it happen? Al Adamsen and The 8

9 We have a crisis of Creativity Clarity Confidence Al Adamsen and The 9

10 We are Explorers Creators Al Adamsen and The 10

11 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 is the structure and what are the roles that make up an effective CoE? Al Adamsen and The 11

12 The beginning of wisdom is calling things by their right names. - Chinese proverb Al Adamsen and The 12

13 What s all this About? Improving Performance individual, team, & organizational Improving The Work Experience job satisfaction, purpose, wellness, organizational culture, etc. Reducing Risk Business continuity, people investments, hiring, retention, etc Al Adamsen and The 13

14 Supplier Partner Customer 1) Information & Insight Context & Communication Consumption & Decisions 2) 3) Confidence The feeling or belief that you can rely on someone or something to perform in a certain way at a known time in the future; firm trust Al Adamsen and The 14

15 Research Agenda To-Do List Not To-Do List 1. Project A 2. Project B 3. Project C 1. Project D 2. Project E 3. Project F 4. Project G 5. Project H 6. Project I 7. Project J Talent Governance: A Multi-Disciplinary Steering Committee (e.g., Talent Strategy Team) that reviews potential projects, sets the research agenda, commissions projects, resources projects, consumes the resulting insight, makes decisions, and facilitates change Al Adamsen and The 15

16 Analytics Maturity Model People: Capability & Capacity Governance Your Co.? Process/ Structure Technology Al Adamsen and The 16

17 Habit 2: Begin with the End in Mind. - Stephen Covey Al Adamsen and The 17

18 Workforce Planning & Analytics: Advancing Your Organization s Capability October 29th, Al Adamsen and The 18

19 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 Al Adamsen and The 19

20 The Value Proposition at 3 Key Levels 2014 Workforce related decisions based on lagging indicators such as turnover and tenure Perception of HR and related functions is lukewarm as its unique value is suspect Not delivering workforce insights that guides decisions doing basic reporting Decision-making is based largely on experience and gut feel, not data-based insight Generating basic metrics most are lagging indicators Challenging to generate meaningful workforce insight Basic systems for planning, analytics, and reporting 2016 Have easily obtainable insight that informs strategic workforce decisions HR offers 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 metrics/reports Generate recurring reports that are eagerly anticipated Produce insight that s valued at all levels and functions Manage an analytics toolset that enables the above Al Adamsen and The 20

21 Workforce Intelligence: 3 Workstreams Strategic People Process People: Who s involved in doing the work? Process: How is information acquired? Tech Technology: What will be seen and used? Operational People Tech Process Technical People Tech Process Al Adamsen and The 21

22 2016 Find the Feeling! What it looks like... Have easily obtainable insight that informs strategic workforce decisions HR offers 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 metrics/reports Generate recurring reports that are eagerly anticipated Produce insight that s valued at all levels and functions Manage an analytics toolset that enables the above 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 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 Al Adamsen and The 22

23 The Workforce Intelligence Roadmap Phase 1 Launch Phase 2 Launch Iterative Phases Using Agile Development Principles Phase 3 Launch QTR 1 QTR 2 QTR 3 QTR 4 QTR 5 QTR 6 QTR 7 QTR 8 Phase 1 Phase 2 Phase 3 Strategic Decision- Making Educate Executives & Partners Integrate into Decision-Making Processes namely Operating Strategy, Budgeting, & Marketing Integrate into Strategic Planning Integrate into ongoing Decision- Making Scale leading practices WP&A Center of Expertise (CoE) Build Learning Agenda and the Capability & Capacity to Pilot Analytical Projects & Create Supporting Metrics/Reports Create CoE approach & apply to all analytics Accelerate speed of doing analytics Expand Capability & Capacity Systems & Data Management Concept Solution & Data Model Build Analytics foundational infrastructure, environments, processes, capabilities, monitoring and compliance Improve scalability, reliability, lower cost to maintain Cost of changes and O&M should decline Rapid Evolving Span of Analytics Phase 1 Phase 2 Phase 3 Strategic CoE Systems & Data Mgt Al Adamsen and The 23

24 Aggregating & Analyzing Data 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. Decisions are now based on what we know not what we think we know. Workforce Insight context HR Metrics & Reports Aggregate External Data Finance Operations HRMS Survey Learning Performance Management Applicant Tracking Al Adamsen and The 24

25 Workforce Intelligence Services Enablers of Operational Excellence 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 Al Adamsen and The 25

26 Workforce Analytics vs. Workforce Planning Workforce Analytics Looking at the past (turnover trends, etc.) or very recent past (survey, performance management, etc.) to uncover what leaders should do relative to other possible investments to positively affect desired business outcomes. Deliverable: Insight into what likely drives key performance indicators (employee engagement, retention, customer satisfaction, etc.) Analogous to Market Research Workforce Planning Looking at past group or organizational growth rates to anticipate the future supply of labor. This is reconciled against the human resource needs required to execute business strategies (labor demand). The resulting gap informs the HR strategy. Deliverable: Insight into the gap for labor at a future point in time along with strategies to fill that gap (FTEs, contingent labor, etc.): external: who to hire and when internal: who to develop and when Analogous to Supply Chain Management Present Time Present Time Al Adamsen and The 26

27 Workforce Planning & Analytics Together Talent Entering the Organization Talent Exiting the Organization > 1, growing organization < 1, shrinking organization Quantity of Talent Talent Gap: How to fill? Internally & Externally? Workforce Analytics can help improve retention which, in turn, will positively affect the internal supply of talent. Workforce Planning helps determine recruiting needs, development needs, contingent/full-time/part-time mix, etc. 12 months 24 months Time Al Adamsen and The 27

28 What Can Be Done Now? Value/Impact Predictive Analytics Optimization/ Machine Learning Scenario Planning/ Simulation Correlation/ Regression Dashboards/ Scorecard Reports Time/Effort Al Adamsen and The 28

29 What Can Be Done Now? Value/Impact Advanced Analytics What can be leveraged? Risk? What s the probability of success? Predictive Modeling/ROI Linkage Research Workforce Planning/Analytics Who do we need, when, & where? What is affecting staff and why? Forecasting, Scenario Planning Cluster Analysis, Data Mining HR Metrics & Reporting HR Metrics & Reporting What is happening? What is happening? Where is it happening? Where is it happening? Scorecards, Recurring Scorecards, Reports Recurring Reports Ad hoc Reports Ad hoc Reports Time/Effort Al Adamsen and The 29

30 Optimize the Quantity & Quality of Information Value Competitive Advantage (just right) Optimal Quantity of Information Competitive Disadvantage (too little) Competitive Disadvantage (too much) Quantity of Information Al Adamsen and The 30

31 Approaches to Analytics Deductive Reasoning e.g., Hypothesis Testing Inductive Reasoning e.g., Data Mining Al Adamsen and The 31

32 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 Insight A Volume BIG DATA Insight B The Story Velocity Insight C Variety Al Adamsen and The 32

33 The Data-to-Change TM Process: Do Actions Reflect Data-Driven Insight? Systems/ Data Data Staging/ Aggregation Analysis/ Reporting Analytics/ Insight Packaging/ Story Telling Communication/ Facilitation Action/ Positive Change Creating Knowledge Bridging the Gap between Knowledge and Action Action Al Adamsen and The 33

34 The Data-to-Change TM Process: Do Actions Reflect Data-Driven Insight? Systems/ Data Data Staging/ Aggregation Analysis/ Reporting Analytics/ Insight Packaging/ Story Telling Communication/ Facilitation Action/ Positive Change STRATEGIC OPERATIONAL TECHNOLOGICAL Governance Al Adamsen and The 34

35 A measurement strategy works in conjunction with an analytics strategy. Measurement Analytics Change Strategists Research Agenda, Process Improvements, System Decisions, Measurement Strategy Strategists ( ) Al Adamsen and The 35

36 Sample CoE Leader Workforce Insight Skills: Leadership and learning skills Packaging & Story-telling: Communications Influencing and affecting change HR Metrics & Reporting Employee Surveys Workforce Analytics Workforce Planning Recurring Reports Scorecards Ad hoc Reports Onboarding Engagement Retention Culture 360-degree Exit Cluster Analysis Linkage Research Cost of Turnover Return on Investment Supply Forecasting Demand Forecasting Gap Analysis Scenario Planning 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 Al Adamsen and The 36

37 Analytics Maturity Progression Value/ Impact Analytics Hopeful Analytics Doer Analytics User Analytics Competitor Stage 1: Get Data Right Stage 2: Create Context Stage 3: Use Insight Stage 4: Operationalize Insight When Yes 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 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 Do we have an ondemand analytics platform? Are those doing analytics influencing change? Are insights being used in the field? Are dashboards w/ meaningful metrics (KPIs) being used? 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. Time Al Adamsen and The 37

38 Analytics Maturity Progression Value/ Impact Analytics Hopeful Analytics Doer Analytics User Analytics Competitor Stage 1: Get Data Right Stage 2: Create Context Stage 3: Use Insight Stage 4: Operationalize Insight 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? LEARNING PRACTICE! 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. Time Al Adamsen and The 38

39 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 is the structure and what are the roles that make up an effective CoE? Al Adamsen and The 39

40 Workforce Planning & Analytics: How to Create or Advance Your Organization s Ability to Generate Actionable Workforce Insight To makin great things happen! Thank you! Presented by Al Adamsen LinkedIn: Al Adamsen Al Adamsen and The 40

41 Existing Models for Workforce Intelligence Large Box Retailer(s), Energy Companies Electronics Retailer, Beverage Company Small Box Retailer, Retail Bank(s) In-House Outsourced In-House Outsourced In-House Outsourced Ad Hoc/One-Time Advanced Analytics Ongoing, Recurring Advanced Analytics A Ongoing, Recurring Analytics & Advanced Analytics Analytics Capability Nearly all data is staged and analyzed in-house. Only some advanced analytics are done by vendors, usually due to a lack of internal capacity, not capability. Some data is staged and analyzed inhouse, and some data is staged and analyzed by a vendor, usually for advanced analytics. All other analyses are done in-house. Most data is staged and analyzed by a vendor, although some analytical capability exists internally. In this model the focus is almost exclusively on change, not insight generation Al Adamsen and The 41

42 Critical Attributes of Modern Analysts Learning Mindset Systematic Thinking Probabilistic Scenarios Expert Communicators/Facilitators Intake Express Al Adamsen and The 42

43 The 4 C s of Workforce Planning Workforce Planning & Analytics: Advancing Your Organization s Capability Capability Capacity Cost Construct Al Adamsen and The 43

44 The Workforce Planning Process Current State Assessment Future State Visioning Strategy Formulation Execute and Adjust (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? (b) Talent Demand: What will we need? (c) Forecasted Internal Supply (d) Forecasted External Supply (e) Gap Analysis: (Δb + Δd = c) How big is the gap? What can/should be done to fill it? Development strategies Recruiting strategies (f) Take Action & Adjust: Implement Development strategies Recruiting strategies Current Headcount Attrition Talent Demand Talent Gap Internal Development Strategy Workforce Plan External Recruiting Strategy Organization Design/ Restructuring ???? External Help Al Adamsen and The 44

45 The Workforce Planning Model Talent Planning Business & Financial Planning Internal View Audit Internal Supply Development Strategy Business Strategy & Budget See the TAD Framework that follows Forecast Internal Supply Gap Talent Demand (Quantity of Capability) Attributes of Successful Employees Assessment Strategy Org. Design, Contingent Labor, FT-PT Mix, etc. Talent Capacity & Labor Modeling Forecast Applicant Pool External View Audit Labor Pools Recruiting Strategy Al Adamsen and The

46 The Workforce Analytics Model Talent Mgmt. Activities Workforce Attributes Balanced Scorecard External Customers Financial Outcomes Leaders, Managers, & the Workforce Internal Operations HR & Talent Management Leadership Al Adamsen and The 46

47 The Power of Story Onboarding Associate Engagement Customer Satisfaction Sales $1M 3pt. 2.5pt. 6%** A $1M annual investment in onboarding programs decreased 1 st 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 Al Adamsen and The 47

48 Bayes Theorem What s the likelihood Joe will be promotion-ready in 12 months? The Prior Probability of an Event (%) Apply Bayes Theorem New Data/ Information The Likelihood of an Event Now given all available Data/Information (%) The Probability of a Related Event Posterior Probability Al Adamsen and The 48

49 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 Al Adamsen and The 49

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