Inspirational approaches to HR data to drive better management and decision-making. On Friday 23 September 2016 we hosted a morning seminar for senior HR managers and executives on how to create business impact through HR & People analytics.

1. SEPTEMBER 2016
HR and People analytics
How to ensure impact and derive value from people insights

2. From analytics to Change with Impact
DATA MEANING BEHAVIOUR IMPACT
The issue in a nutshell

3. 3
Why is HR and People analytics important?
Is HR able and ready to deliver the business benefits?
INGOING DRIVERS
HR’s CHALLENGE
Technology drive
and Big Data
» Data amounts are growing
enormously
» Speed of change to HR data
and surveys
» Technology offers solutions
Agile business-
handling of complexity
» Data insights are a cross-
functional innovation enabler
» Data analytics linked to new
flexible organisational models
» The new business wave like
Lean and outsourcing
HR’s needs/interest
in changing focus
» Value of data, numbers and
technology
» HR analytics and tracking of
metrics
» HR’s lack of trust in the
business
HR’s capability
challenge
» Build skills, competences and
organisation
» Trust can be built from data
forming cultural meaning,
transparency and thereby
structure to free dataflow
» Ability to execute

4. 4
Key elements
People Analytics framework
Overview of our suggested approach and process
Inputs and Impact measurements
Change journey with impact
» Building organisational capabilities – centrally and linkage to local context as a connected network
» Priority of analytics, mindset and trust in data
» Changing human behaviour requires involvement and meaning of HR data created in teams and individuals
Vision and purpose
» Impact map, business
drivers and ingoing
hypothesis
» Ensure business
ownership
» Set focus and plan
journey
Data management
» The right KPIs
» Data quality in focus
» Ongoing data
ownership and drive
integral to impactful
analytics
HR analytics tools
» Data capturing
systems and tools
» Reporting, analytics
and planning tools
» Embed in processes
Analytical capabilities
» Statistical and
analytical skills
» Hypothesis and
causality logic
» Mastering of analytics
tools
Engage the business
» Engage network and
build scenarios
» Create transparency
and understand
business impact
» Learn, adjust and
continuous effort
HR and
talent KPIs Organisation,
network and
culture
Key business
data (sales,
customers) Growth,
speed and
earnings
External data
(recruitment,
comparisons)
Individual and
mood
measurements

5. 5
Vision and purpose
Essential for driving impact through People analytics
PEOPLE ANALYTICS
» Clear business drive and anchoring
» HR data linked to business context
» Focus and hypothesis-driven
IMPACT CASE
PEOPLE ANALYTICS
VALUE PROPOSITION

6. 6
Data governance and ownership
But do the business (and top management) really bother?
DATA FOCUS
Data administrators care about data – HR and business executives do not. It has been this way for a long time, but the increased focus on analytics
and compliance creates momentum for changing this, if HR is able to tell the story and execute.
DATA QUALITY
» Most organisations still have
several system of records for
various HR data contributing to
inconsistencies
» HR must foster basic business
ownership of HR as “our data” and
manage a number of iterative steps
(definitions, collection, cleaning)
DATA MANAGEMENT AND DATA ANALYTICS
» The quality and trust in analytics is dependent on the data foundation and quality
» The ability to drive and maintain high data quality interdependent on its usage and accessibility to the
business
Deployment
and feedback
Evaluation
Data analytics
approach
Business
understanding
Modelling
Data
preparation
Data
ownership
Data
requirements
Data
definitions
Data
collection
Data cleaning
DATA COMPLIANCE
» HR data contains sensitive data
and your analytics approach must
build trust in how the data is used
» EU regulation and work councils
place strong demands on
organisations and their
management to ensure data
compliance ownership
» HR should use this focus and
deliver on the promises in the
delivery of HR analytics
Data management
Data analytics

7. 7
HR and analytics tools
Technology is rapidly changing the game
HR-FOCUSED TOOLS
» Analytics are embedded in integrated cloud HR solutions and are, in
some cases, built into processes
» Built-in functionality ranges from simple reporting over strategic
insights to predictive analytics and planning functionality
» Basics are most often plug-and-play and included in paid fee
» Advanced capabilities only for top-tier vendors and typically with
some cost and potential extra effort
ANALYTICS-FOCUSED TOOLS
» In-memory database technology with predictive and even prescriptive
machine learning capabilities
» Best tools are user-friendly, visual, mobile and collaborative
– designed for business users, not (only) specialists
» High cost and complexity of handling the preferred tools of the
company
» No tool for all purposes, but great promises in fast technology
innovations
Analytics data
functions
Usability and
accessibility
Integration and
platform
Collaboration and
broadcasting
HR specifics Vendor
HR core applications
» Operational/transactional
metrics and reports
» Standardised
» Self-service options
» Application-specific data
Workforce analytics
» Purpose-built for
workforce analytics
» Short implementation
» Possibly skip data
warehouse
» Designed for HR and the
business
Business intelligence
» Expensive and lengthy to
implement and update
» IT expertise, data
warehouse, complexity
» Designed for technical
user rather than business
user
Explorative analytics
» SaaS, often a costly fee,
easy implementation
» General tools designed for
business users
» Some data extraction and
transformation effort
» Exploration and
capabilities
HRtools
Analytics tools
EVALUATION CRITERIA
Evaluating what fits your purpose and organisation based on:

8. 8
KEY ROLES
Building analytical capabilities in HR
… is the key to sustainable value
Buy-and-borrow strategies are great ways of accelerating skills and competencies, but only in the short term.
Evidence argue that long-term value comes from committing to analytics (build):
SUCCESSFUL
STRATEGIES
1. Giving preference
to people with
analytical skills
when hiring and
promoting.
2. Developing
analytical skills
through formal
and on-the-job
training.
3. Integrating new
talent with more
traditional data
workers (buddy,
mentoring…).
Data engineer
Breaking data leaks, creating linkages
Data scientist
Mathematicians, data modelling
Business translators
Business understanding and impact

9. 9
Engage the business
Organise and make the interaction for local use of People insights
KEY ELEMENTS
Communicate value proposition of
People analytics and apply and
adapt to local context
Analytics team
» Central HR drive of
analytics effort
» Statistical, analytical, HR
and communication skills
required
Train and educate managers
» Basic analytics language
» Tools and usage
» Local adoption
HRBP
» Understand the business
and cultural prerequisites
» Lift HRBP’s capabilities
and build trust
Analytics team
HRBP
Managers

10. 10
How to get from the right diagnose to business impact
We recommend using a simple diagnostics tool to assess where your organisation is on the analytics journey, and then identify the key business
challenges where HR insights can improve decision-making.
DIAGNOSTICS TOOL
One tool is offered by CBS HCA Group focusing on identifying your
company’s strengths and weaknesses.
http://cssl.cbs.dk/hcaprofile/HCABenchMarking.aspx
IMPACTFUL IMPLEMENTATION
Implement Consulting Group can help set the right focus and approach
for your company’s People analytics.

11. Managing the change in the interaction
between technology and people
is the key to success with HR analytics.

12. 12
From data to sustainable impact and value
What are the three most critical levers to
consider when transforming data into impact
in your organisation?
THE BIG PICTURE OF HR ANALYTICS’ VALUE GENERATION SOMETHING TO CONSIDER
IMPACT CASE
DATA VALUE
PROPOSITION
?
_________________________
_________________________
_________________________
Try to build on those levers when qualifying
the desired impact and behavioural change in
your own People analytics impact case!

13. 13
The project aims to improve performance in <business impact> and
build the organisation’s capability and practices in <key behaviour>
IMPACT CASE SUCCESS CRITERIA
<The top-level impact case
of the initiative is often
related directly to increasing
growth or profitability or
reducing costs.
State the project’s success
criteria in this perspective .
(You may also add a
statement such as ”Specific
success criteria and
measurements for the
project will be defined during
the initial work”.)>
PROJECT VISION
<State the overall project vision>
• <State the ultimate impact targeted>
• …
<State desired impacts on relevant dimensions, e.g.:
• Customer performance
• Financial performance
• Process performance
• Compliance with external requirements
• Intangibles and other benefits>
<State the desired impacts along relevant dimensions, e.g.:
• Behaviours, such as specific practices applied
• Organisational capabilities demonstrated
• Technological capabilities demonstrated
• Competence, knowledge and abilities of employees>
<Behaviour impact 3>
<Behaviour
impact 1>
<Behaviour
impact 2>
<Business
impact A>
<Business
impact C>
<Overall impact>
<Business
impact B>
BUSINESS IMPACT
BEHAVIOUR IMPACT

14. Change with Impact.