Predictive Analytics Worksheet
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1 A PeopleFluent Worksheet Predictive Analytics Worksheet Using Data to Reveal Opportunities
2 Analyze Past Performance to Predict Future Outcomes What do you know about predicting the future? In sports, winners and losers are predicted all the time. For example, in 2002, Billy Beane, the general manager for the Oakland Athletics, used analytics tools to create a winning baseball team out of what others considered to be subpar players. In the wine country, factors like rainfall and temperatures are analyzed to predict the future quality of wine. What if you could use the same predictive tools to determine impact to your workforce? This predictive analytics worksheet from the workforce planning and analytics division of Peoplefluent will help you identify key metrics and look for correlations and trends to predict future outcomes. To get started, you ll need to identify what you want to predict and why. Then you ll determine the type of research model data available, the correlation between data sets and how to use filters or variables when graphing trends. This worksheet also helps you determine forecasting models, testing methods and how measure the performance comparison of groups as well as hypothesis testing for predictive measurement of decisions. By taking a data-driven approach to workforce planning, you ll achieve a new view of old challenges and identify opportunities that were not apparent before. Predictive Analytics Worksheet 2
3 Predictive Analytics Worksheet Predictive analytics isn t useful just because it gives you an idea of what will happen in the future. It is useful because, once you can reliably predict what will happen; you will have gained an understanding of what drives success. With that knowledge we can work to optimize our success and make our organizations achieve the most possible. What is Analytics? Analytics is the analysis of data to solve problems. What about Predictive? Foretell on the basis of observation, experience or scientific reason. Define Predictive Analytics: A variety of techniques that analyze current and historical facts to make predictions about future events. What do you want to predict? Why do we want to predict? What is the business value of doing predictive analytics? Predictive Analytics Worksheet 3
4 The Clarification Chain helps us understand what we need to be measuring and predicting and optimizing. Models for Research: Inductive and Deductive. Which is best? What is statistical regression? Why is it called that? What is a correlation? How is it measured? What do I say if someone says Correlation doesn t prove causation? Predictive Analytics Worksheet 4
5 Selected forecasting/predictive methods and how to calculate them: Average Straight Line Historical Trend Line Single Variable Regression Multi-variate Regression Time Series Forecasting A/B or Split Testing Is my organization a system? What is the value in thinking systems? How can we deal with uncertainty? What if my prediction is wrong? Data distributions How does this help us visualize the situation? Predictive Analytics Worksheet 5
6 More Predictive Analytics Lessons: Through experimentation, find those factors that can be used to reliably predict success. With this new ability to predict success, go recruit/procure/develop those success factors in the most affordable way possible. Put the pieces together to form a winning team. Challenge established thinking. You can t create a competitive advantage if you do things the same way everybody else does. Use the scientific method to test what works best. The time for gut-feel management has passed. If you are successful, others will copy you. But when you build your competitive advantage through people, it is much harder to copy. Workforce analytics are successful when you use the right tools. It s also important to have the right team of people in place team members who understand the cost structure or operational impact of opportunities. By following these best practices in workforce analytics, you ll be able to capture and quantify workforce trends and analyze those trends to predict future opportunities for your business. Peoplefluent s solutions give you the wisdom to strategically address critical business issues. Learn more at Predictive Analytics Worksheet 6
7 About PeopleFluent PeopleFluent, the leading total workforce HCM technology company, redefines Talent Management with an innovative Talent Engagement Cloud that is built around people and not HR processes. By deeply integrating pervasive video, strategic analytics and collaborative social technologies into its complete suite of Talent Management applications, PeopleFluent redefines employee engagement to address productivity loss and diminished financial results due to an increasingly disengaged workforce. With PeopleFluent, companies can change at the speed of business without costly IT interventions through intuitive, highly configurable software that is built upon the right data. Spanning across an organization s entire global workforce with one talent cloud, PeopleFluent equips leaders with the meaningful talent data and strategic analytics necessary to make better business decisions. PeopleFluent has worked with over 5,100 organizations in 214 countries and territories to engage employees to drive better business results. Today, 80% of the Fortune 100 relies on PeopleFluent as part of their talent management delivery strategy, helping them successfully achieve their talent aspirations. Irving, Texas 400 East Las Colinas Blvd., Suite 500 Irving, TX USA Toll-free: (888) Tel: Waltham, Massachusetts 300 Fifth Avenue Waltham, MA USA Tel: Raleigh, North Carolina 434 Fayetteville Street, 9th Floor Raleigh, NC USA Toll-Free: (877) Tel: London, United Kingdom 15 Fetter Lane London EC4A 1BW United Kingdom Tel: +44 (0) Copyright 2014, PeopleFluent. All rights reserved. This document contains registered trademarks and trademarks of PeopleFluent Holdings Corp. or one of its subsidiaries. All other brand and product names are trademarks or registered trademarks of their respective holders.
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