BEST PRACTICES FOR PREDICTIVE ANALYTICS IN WORKFORCE ANALYTICS
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1 BEST PRACTICES FOR PREDICTIVE ANALYTICS IN WORKFORCE ANALYTICS Complimentary Webinar sponsored by Visier Inc. When Tuesday, April 3rd, 11am ET / 8am PT Presenters: Dave Weisbeck, CSO Visier visier Visier l l analy&c analytic applica&ons applications for for people people Page 1
2 PRESENTER Dave Weisbeck, CSO Visier Dave Weisbeck leads the overall solu&ons success and strategy at Visier. Prior to joining Visier, Dave spent over 15 years in the informa&on management and analy&cs industry, which included &me spent helping to build Crystal Decisions and Business Objects products and product strategy. Most recently Dave was the senior vice president and general manager responsible for Business Intelligence, Enterprise Informa&on Management and Data Warehousing at SAP. Page 2
3 PREDICTIVE ANALYTICS ON TALENT Where are we today? When asked, only 9% of respondents highlighted predictive analytics as where they ll be expanding their workforce analytics investments. In what areas are you interested in expanding your workforce analy&cs capabili&es? 9% Source: Visier WFA Usage Survey, 2012 However, TDWI research showed within 3 years that 50% of companies using analytics intended to have predictive analytics capabilities in place. Page 3
4 POLL Where are you in usage of predictive workforce analytics? 1. Predictive already used in analytics shared with business 2. We have a predictive tool, but not using it 3. Predictive is something we want to try in Predictive is on the radar for next year 5. Still researching Page 4
5 AGENDA 1. Predictive Primer 2. Predictive and Talent Management 3. Mini-Case Study 4. Example/Demo 5. Questions and Answers Page 5
6 PREDICTIVE PRIMER visier Visier l l analy&c analytic applica&ons applications for for people people Page 6
7 PREDICTIVE Page 7
8 WHERE TO START? Regression Splines Neural Networks Predic&ve Models Naïve Bayes k- means Clustering Machine Learning Survival Analysis Linear Regression Decision Trees Ac&onable Insight Geospa&al Modeling Descrip&ve Models Rough Set Theory Time- series Models Gauss- Markov Data Mining Page 8
9 THREE CATEGORIES OF PREDICTIVE 1. Predictive Models Use past performance, to predict future outcomes Example: Credit Card Fraud. A history of past transactions become predictive of what is a fraudulent transaction. 2. Decision Models Predict most certain, or optimal, outcome for a specific action Example: Product recommendation. If you have a savings account, and investment account then offer life insurance. 3. Descriptive Models Identify common characteristics that classify a group Example: High credit risk. People with these common characteristics represent a high credit risk. Page 9
10 PREDICTIVE MEANS THE FUTURE Belief: Predictive refers to probabilities of future events Reality: Find paferns in the present Model outcomes Generate anicipated behaviors Page 10
11 PREDICTIVE What predicts turnover? Engagement? Tenure? Manager? Compensa&on? Or, what the turnover trend was last year? Page 11
12 PREDICTIVE AND TALENT MANAGEMENT visier Visier l l analy&c analytic applica&ons applications for for people people Page 12
13 TALENT MANAGEMENT OPPORTUNITIES Some of the talent challenges: 1. Developing Existing Talent 2. Identifying Talent Gaps 3. Attracting Talent 4. Retaining Talent 5. Engaging Talent 6. Identifying Top Talent 7. Deploying Talent Effectively 8. Developing Leadership Capabilities 9. Ensuring Diversity in Talent Page 13
14 STEP 0. Some of the talent challenges: 1. Developing Existing Talent 2. Identifying Talent Gaps 3. Attracting Talent 4. Retaining Talent 5. Engaging Talent 6. Identifying Top Talent 7. Deploying Talent Effectively 8. Developing Leadership Capabilities 9. Ensuring Diversity in Talent Step 0. Identify what is important to your business: If you can t use the outcome, the greatest predictive techniques have no value Simple is generally better Can you explain it to others? Will they believe, or trust, the outcome? Page 14
15 STEP 1. Some of the talent challenges: 1. Developing Existing Talent 2. Identifying Talent Gaps 3. Attracting Talent 4. Retaining Talent 5. Engaging Talent 6. Identifying Top Talent 7. Deploying Talent Effectively 8. Developing Leadership Capabilities 9. Ensuring Diversity in Talent Step 1. Decide if you are: 1. Identifying or describing groups of people 2. Determining an optimal action around people 3. Making a prediction of a future outcome Page 15
16 STEP 1. RECOMMENDATIONS Step 1. Decide if you are: 1. Descriptive Model : Identifying or describing groups of people 2. Decision Model : Determining an optimal action around people 3. Predictive Model : Making a prediction of a future outcome Recommendation: 1. Descriptive Model : start here 2. Decision Model : ignore this, unless you are already advanced in predictive usage 3. Predictive Model : Work towards this technique. If you can t describe the present, how can you predict the future? Page 16
17 STEP 1. POTENTIAL ACTIONS By understanding what pa\ern in your talent, decisions by your talent, or sub- groups of your talent would you be able to make decisions to improve your talent? Some of the talent challenges: 1. Developing Existing Talent 2. Identifying Talent Gaps 3. Attracting Talent 4. Retaining Talent 5. Engaging Talent 6. Identifying Top Talent 7. Deploying Talent Effectively 8. Developing Leadership Capabilities 9. Ensuring Diversity in Talent Step 1. Decide if you are: 1. Identifying or describing groups of people 2. Determining an optimal action around people 3. Making a prediction of a future outcome Page 17
18 STEP 2. APPLY THE PREDICTIVE TECHNIQUE For descriptive models, three recommendations: Clustering: List of employees with these characteris&cs List of common characteris&cs for sub- group Subject You have won Meet next Friday? Want some Classification Spam Valid Spam ClassificaIon: What group (top talent, management,..) do new employees belong AssociaIon: Associate a given employee s profile to a best fit job or project Associate characteris&cs of employee with performance Page 18
19 MINI-CASE STUDY visier Visier l l analy&c analytic applica&ons applications for for people people Page 19
20 MINI-CASE STUDY High Technology Company Over 10,000 employees Global operations Challenges: 1. In a war-for-talent to hire the best and the brightest in the industry 2. Compete globally for talent. Talent, and costs, vary greatly across regions 3. How can we improve attaining and retaining the best? Approach: 1. Do you know what makes your top talent, top talent? Can you describe what they have in common? Descriptive model for top talent 2. Do you know the reasons that talent are leaving your organization? Descriptive model for voluntary turnover of top talent 3. Do you know who, or what groups, are likely to leave? 1. Predictive model for voluntary turnover of top talent Page 20
21 EXAMPLE visier Visier l l analy&c analytic applica&ons applications for for people people Page 21
22 RECOMMENDATIONS 1. Always start with what is valuable for your business 2. Look to the present first predictive doesn t have to be about the future 1. Look for actionable patterns in your talent sub-groups of people, their characteristics or their actions 3. Decide if you want to build predictive yourself, or use an offthe-shelf solution 4. Favor simplicity. If users cannot understand conclusions, then they won t trust them Page 22
23 Q&A Visier visier l l analy&c analytic applica&ons applications for for people people Page 23
24 Download these reports and more here: hfp:// Workforce AnalyIcs: The CriIcal Factor to Improve Your Company s Performance, Profitability and Human Capital Investment Research report on the business impact that Workforce Analy7cs is having for organiza7ons. Predict & Plan Your Future Workforce Needs with Advanced AnalyIcs Datasheet on predic7ve capabili7es included with the Visier Workforce Analy7cs solu7on. Page 24
25 THANK YOU Dave Weisbeck Contact us at or Request more informa&on at h\p:// and see first hand how Visier Workforce Analy&cs can help you to make be\er decisions for your workforce star&ng today. Visier visier l l analy&c analytic applica&ons applications for for people people Page 25
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