Human Capital Intelligence, Requirements and Strategy
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1 Stockholm, May 23 th 2007 Executive Health System: Performance Management for the Planning of Human Resources and Health Expenses Policies Pietro Betto BD Manager HR Applications SAS Italy
2 Agenda The new directions for the Corporate Strategy HR Performance Management Regione Umbria project Application Areas for Public Sector
3 Agenda The new directions for the Corporate Strategy HR Performance Management Regione Umbria project Application Areas for Public Sector
4 Analysts continue to stress the importance of using existing transactional data to measure the impact of initiatives Next-generation workforce analytics will help companies gain more insight into how they derive business value from human capital..however, HR organizations will be challenged to build and implement new skills and use tools and techniques to be successful.(*) (*) October 2005, James Holincheck Exploit the next generation of Workforce Analytics to Manage Human Capital Gartner
5 Human Capital Management - Strategy Corporate Strategy HCM Strategy Manage HR as an asset by itself Manage HC contribution Performance Management Profitability, Revenues Shareholder value
6 Four Barriers to Strategy Implementation The Vision Barrier Only 5% of the workforce understands the strategy The People Barrier Only 25% of managers have incentives linked to strategy 9 companies out of 10 fail to execute strategy 60% of organizations don t link budgets to strategy The Resource Barrier The Management Barrier 85% of executive teams spend less than one hour per month discussing strategy Source: The Balanced Scorecard Collaborative
7 Unique Vision of Human Resources Management Human Capital Intelligence
8 SAS for Performance Management Human Capital Intelligence
9 Why use B.I.? Why Human Capital Intelligence? Anticipate, predict and forecast workforce changes Analyze trends while they are still current Deploy and leverage human capital using objective evidence Design human capital strategies which increase the shareholder value
10 Questions Answered with Information How many employees were hired last year? How many employees are nearing retirement age? How many absences took place last year? Last quarter? Last week? Lists of employees by organizational hierarchy. How many employees were Top Performers?
11 Questions Answered with Intelligence Are merit increases and bonuses having a direct impact on performance and employee satisfaction? Which are the competencies within my organization and how do I build upon those competencies to succeed in the future? For which reasons do the employees leave? Would it be less expensive to incent some of those employees to stay on? Or encourage them to retire sooner? Which reasons have the most statistical significance to why employees leave? What is the risk to the organization if employees leave? Are the Top Performers leaving?
12 Questions Answered through Predictability Which employees are likely to retire in the next 5 years? Which skill sets will need to be replaced? Which employees are at the highest risk of voluntarily leaving the organization? What is the profile of employees most likely to leave? What is the profile of employees having a higher than average rate of absenteeism? What will be my salary budget for next year, including leavers, new hires and promotions?
13 Why it is difficult to obtain Intelligence Challenges? Input driven Output focused Technology Infrastructure Inadequate human capital strategies Measurement
14 HR Analytics Intelligence KPI HR Scorecard MBO HCM Intelligence Predictive Models What-If Forecasting HR BenchMarking Skill Analysis DataWarehouse CLEANING, TRANSFORMATION, EXTRACTION & LOADING HR Access Oracle SAP Meta4 Access DB PeopleSoft
15 The Human Capital Intelligence offer Intelligent Reporting on Human Capital Predictive modeling Indicator A Indicator A HCM Key Performance Indicators Indicator C
16 Regione Umbria Superficie kmq Popolazione Province
17 Sistema Sanitario Regione Umbria Azienda USL 1 Azienda Ospedaliera di Perugia Azienda USL 2 Azienda USL 3 4 Aziende Usl 2 Aziende Ospedaliere 22 Strutture di ricovero 800 Medici di medicina generale 11,000 dipendenti Azienda USL 4 Azienda Ospedaliera di Terni
18 Executive health system Create health regional data warehouse with certified data Based on common data used by different regional structures (eg. data on hospitals, patients, doctors, nurses) Based on a single data base to support different kind of analysis (admissions to hospital, drugs use and prescriptions, specialistic medical services) and different sw tools (static report, olap report, ) Manage historical information on detailed data Build sw components able to switch from a sintetical representation to a detailed one Support periphery in sending data
19 Architecture FASE E FASE T FASE L Risorse Umane Anagrafiche Flussi Regionali Estrattori Controlli e Omogeneizzazione Data Warehouse I Livello Data Warehouse II Livello F 3 Appropriatezza Analisi Farmaceutica Specialistica Ospedaliera
20 The HCM Projects: Requirements Strategic control of data Systematic organization of data Data analysis creation of information Creation of the internal information network information circulation communication Creation of updated and complete data bases Indicators for the monitoring of the employee management policies Reports at multiple levels SUPPORT SYSTEM FOR STRATEGIC DECISIONS
21 SAS Choice Short project times and limited workgroup Skills and metodology specific for the HR area Product oriented on DW tasks Integration of multiple data sources Friendly WEB interface
22 Project Goals Clean snapshot about the usage status of human resources within the health environment Simulations based on new decision assumptions. Quick highlighting of critical aspects and search for adequate answers.
23 For example Organization and personal data Historical dimensional trend Benchmarking between departments Events (promotions, career plan, hiring, termination, etc.) Costs Budget analysis and benchmark TFR analysis and impact about retirements Funds distributions for contracts
24 For example Absences analysis For reasons and for activities Abscence trend for job descrption. What IF If increase RAL or change organization. Impact analysis in real time
25 Benefits Datawarehouse Informations Data management Analysis system Benchmark between Departments Speed delivery Resources control Costs analysis
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32 Agenda The new directions for the Corporate Strategy HR Performance Management Regione Umbria project Application Areas for Public Sector
33 Human Capital Intelligence: Some Application Areas Career Paths Predictive Analyses Simulations and What-If Scenarios Employee Browser HR Scorecard Solutions involved: SAS Human Capital Management
34 Workforce analysis How many employees were in the company on dd/mm/yyyy? Hiring / Terminations Acquisition processes Transfers / Grade increases
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36 Career paths How many changes in position will we have in the next years? And who will be interested? Minimal seniority in position is? Minimal educational requirements are?
37 Career path
38 Predictive Model for retirements How many likely retired people will we have in our company during the next years? Retirement regulations ( ) Age, years of service and redemptions Forecast window: 3 years Considered impact of Dini s law for 2008
39 Retirements Forecast
40 Skill Assessment Web Interface for a quick and efficient survey How does the technical/administrative staff assess his/her skills? Are the results comparable to the assessment of their managers? How to boost the skills and how to optimize the employee performance?
41 Skill Analysis: Self-assessment
42 Skill Analysis: Self-assessment
43 Skill Analysis: Self-assessment
44 Skill Analysis: Self-assessment
45 Skill Analysis: Assessment
46 Skill Analysis: Assessment
47 Skill Analysis: Assessment
48 What-If What happens if New Salary policy New Organization Career & succession plan
49 What-if Analysis: New Salary Policies
50 Organizational Simulation
51 HR Performance Management How well are my employees performing? And how much do they cost? Compensation Tool Skill Evaluation Career & succession plan
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56 Scorecard and KPI for the Human Capital One of the needs of a HR director is to have a feedback mechanism in order to optimize the investments on the human capital. This is due to the fact that the human capital is one of the main assets of the company, both from a strategical and economic point of view. The extent of a strategy gives value to the strategy itself
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61 THANK YOU FOR YOUR ATTENTION Pietro Betto Mail to: Copyright 2006, SAS Institute. Inc. Tutti All i diritti rights riservati. reserved.
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