Human capital diagnostics and assessments are vital tools for organizations to prevent expensive mistakes in hiring, training, and managing talent. However, few organizations properly analyze and interpret diagnostic results or implement appropriate HR measures. While most track basic people metrics like turnover, few link these metrics to strategic goals or use them to help meet targets. Proper use of tools like engagement surveys, followed by analysis, action, and measurement, can help organizations optimize their human capital and guide strategic execution.

1. Best Practices in Workforce Diagnostics Diagnose, Analyze, Act and Measure

2. Today’s Presenter Allan Schweyer Chairman, EEA With: Bob Heth, Partner, StratACHIEVE & Carol Stevens, Partner, StratACHIEVE

3. The Riskiest Business

4. Human Capital Diagnostics Accurate Human Resources (HR) Diagnostic and Assessment tools are vital to organizations in order to prevent expensive mistakes in hiring, training, deploying and managing the performance of talent.

5. The Business Case for Human Capital Diagnostics and Assessments The ability to implement diagnostics is not the only challenge ─ analyzing and correctly interpreting the results, and then implementing appropriate HR measures can create a true strategic difference in the business.

7. Poll In my organization we use: Employee engagement or satisfaction surveys The Balanced Scorecard ROI analysis More than one of the above None of the above

8. What the Research Says… According to the Conference Board, only 19 percent of HR departments believe their IT systems are worthy of data gathering and of distributing briefings on people measures to all managers. According to USC professors, John W. Boudreau and Peter M. Ramstad in “Talentship and HR Measurement and Analysis,” the evolution of HR and HR measurement requires a sound “decision science” for human capital that truly informs and enhances decisions about human resources wherever they are made.

10. Human Capital Diagnostic Tools

11. Predictive Analysis Predictive Analysis is used to gain insight into potential challenges and opportunities in order to prevent potential problems and seize on potential opportunities. The HR function can guide management to the optimum deployment and development of its human capital through the use of assessments and diagnostics in the PA process.

12. Talentship at FedEx & Disney FedEx knows that one of the top few critical components of its success are shipping time and efficiency. Disney knows that visitor experience in the park is key.

13. Moneyball Avg. cost per win since 1999: $388,000. NY Yankees: $1.23 million 2002 American League West Final Standings Wins Losses Games Behind Payroll Oakland 103 59 --- $42m Anaheim 99 63 4 $63m Seattle 93 69 10 $86m Texas 72 90 31 $107m

14. Sourcing Past Success

15. Leading Indicators in HR Some lagging indicators have the potential to be leading indicators. Retention or turnover is one, employee engagement is another.

16. Poll My organization use data and metrics: Routinely, almost every major decision is data-based, backed by real diagnosis and hard evidence Decisions are data-driven in most parts of the organization but not in HR Few decisions appear to be data-driven or backed by diagnosis No decisions in the organization are made on the basis of data, diagnostics or hard evidence.

17. Employee Engagement Survey & Analysis Whatever the tool, employee engagement assessments and diagnostics must be properly implemented, assessed afterward, and most importantly, acted upon and then measured. Organizations should use the tools to classify employees into at least four major groupings: “Fully Engaged”, “Engaged”, “Somewhat Disengaged” and “Fully Disengaged”, are common labels. Web-based strategic engagement assessments, such as the SEGA diagnostic, can highlight areas of strength, challenges, and opportunities that guide the company toward strategic execution. This type of assessment also acts as a check up to determine where the company agrees and disagrees in the key areas that drive the business. “Strategic Engagement Gap Analysis”, Bob Heth and Carol Stevens, www.stratachieve.com

18. Formal Structure Social Network Analysis Informal Structure Exploration & Production Zaheer Schultz Mitchell Klimchuck Angelo Keller Smith Geology Dhillon Myers Petrophysical Crossley Exploration Avery Cordoza Sutherland Ramirez Drilling McWatters Waring Production Hassan Reservoir Hopper Production Milavec Senior Vice President Mares

19. Deployment Decisions Overloaded Leaders, Experts or Gateway Roles I am working to my limits but still can’t respond to everyone. Solution: Re-allocate information, decision rights and portions of role. Political Players I control the information tightly; my position is secure. Solution: Build connectivity to break stranglehold. Rising Stars/Flight Risks I am rising through the company rapidly and am being solicited at other companies. Solution: Recognize expertise, succession planning. Central Connectors Removed By removing 5% of the people (central connectors), the number of connections drops by a disproportionate 33%.

21. SEGA Diagnostic SEGA Sample Reports

22. SEGA Diagnostic

23. Gallup: Human Sigma

24. Gallup: Human Sigma

25. ROI Assessment The ROI Methodology, developed over the past several decades by Jack and Patti Phillips and applied in thousands of organizations worldwide, offers a standard and structured approach to HR ROI measurement

26. ROI Assessment

27. ROI Assessment