DATA DRIVEN DECISION MAKING. Turning HR s seat at the table into a strategic voice

Transcription

1 DATA DRIVEN DECISION MAKING Turning HR s seat at the table into a strategic voice

2 LET S START WITH A STORY

3 BIG DATA ISN T SUPERMAN Big data is high-volume, high-velocity and high-variety information assets that demand cost-effective, innovative forms of information processing for enhanced insight and decision making. ~ Gartner IT Glossary Big Data = (high-volume or high-velocity or high-variety information sets) + cost-effective, innovative forms of information processing Volume: large, or rapidly increasing, amounts of data Velocity: rapid response or movement of data in and out of the system Variety: large differences in types or sources of data

4 HOW WE MAKE DECISIONS Anecdote and gut decisions Data-In formed Data-D riven

5 WHY IS DATA IMPORTANT? Our colleagues in finance, IT, assessment and planning, institutional research, and our faculty speak in this language People 160M+ workers in the U.S. Payroll = largest expense for most orgs (40+% of revenue) BIG Turnover = unplanned costs, up to 150%/position expenses are

6 WE DON T KNOW WHAT WE DON T KNOW Most employers, including those in higher education, don t have a strong grasp on what drives and affects performance

7 WHY HR NEEDS DATA According to recent surveys: 77% 44% 75+% of HR pros cannot determine how their workforce's potential affects the bottom line Less than 50% use objective data to guide decisions 66%+ More than 2/3 of organizations misidentify high potential employees

8 WHERE IS THIS SO CALLED DATA? SURVE YS IPED S IPUMS CUPA-HR ERI? ERP SYSTE MS IR BLS

9 DATA IS TIMELY AND TIMELESS Data, data stewardship, analysis, and storytelling allow us to measure the past, understand the present, and predict ranking s the future. ROI BIG DATA INSIGHTS PRODUCTIVITY DECISIONS tomorrow FORECASTING RESOURCES THROUGHPUT & MORE

10 TECHNOLOGY ISN T STATIC Journals, news sites, and others continue to clamor about big data, AI, and the workforce of the future ranking s ROI 400 companies surveyed most with revenues of $1B+ only 4% are really good at analytics An elite group that puts into play the right people, tools, data & intentional focus

11 THERE IS NO ONE APPROACH Many organizations use one of four common models to integrate data into their operations:

12 WHAT TACT SHOULD WE TAKE? Establish an organizational commitment to consistent data Identify data sources, collect new data, steward the data Listen to leadership and stakeholders to understand what they want, need, and how they best digest information Identify benchmarks and trends and begin to measure Assess past and present decisions against the data DEFINED DATA + MANAGED DATA + ANALYSIS = USEFUL HR DATA Evaluate, predict, and being to anticipate how future

13 HOW SHOULD WE THINK ABOUT DATA? strategi c Data, data narratives, and the decisions they drive AND the change they may initiate are either: operation al tactical transactional informational

14 PRESENT, PROVIDE, AND NARRATE! There are different, growingly complex ways to present data Raw data Method s Tables and charts Pivots and queries Scans and whitepapers Data visualizations And more Types Raw data Metrics Benchmarks Trends Projections and models Causal analysis Just as there are many types of data to consider

15 UNDERSTANDING THE POWER OF DATA Predictive analytics complex How do we drive performance? How do we predict performance? analytical sophistication How are we performing over time? How are we performing relative to benchmarks? Trending Projections; Future-state modeling Causal analysis; Controlled evaluation foundational How are we performing today? How do we access data to monitor performance? Global data warehouse Dashboard; Metrics reporting Bench-marki ng Data management Internal tracking External ref. point Directional insight Future risk management Outcome optimization

16 A REAL WORLD EXAMPLE: PREPARING FOR A CHANGING WORKFORCE THROUGH PREDICTIVE ANALYTICS

17 MAKING DECISIONS WITH DATA Aging Workforce + Budgetary Challenges + Pension Risk = Data Crisis

18 MAKING DECISIONS WITH DATA Aging Workforce + Budgetary Challenges + Pension Risk = Data Crisis

19 MAKING DECISIONS WITH DATA Data Crisis Predictive Analytics

20 MAKING DECISIONS WITH DATA Strategic Decision Making

21 THANK YOU! Erik Smetana :: :: Companies are loaded with employee, HR and performance data. Are we using this data scientifically to make people decisions? Not yet. This, to me, is the single biggest BigData opportunity in business. If we can apply science to improving the selection, management, and alignment of people, the returns can be tremendous. ~ Josh Bersin, Founder and Principal at Bersin by Deloitte