High-Impact People Analytics
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1 High-Impact People Analytics The Recalculated Route to Maturity May 22, 2017 Madhura Chakrabarti, PhD People Analytics Research Leader, Bersin by Deloitte, Deloitte Consulting LLP. R J Milnor Head of Talent Analytics, Chevron
2 Download the IMPACT Conference App 1. Head to the Google Play or App Store and search 'Bersin by Deloitte IMPACT 2017.' 2. Sign in with the you used to register and the app password: IMPACT2017. See our full list of attendees, and begin digging into the week s content. The app features the complete schedule of events, site map, speaker bios and more! IMPACTreg@deloitte.com with any app questions. Join Follow the #IMPACTHR conversation on Twitter to stay in the know on all things IMPACT. Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 1
3 What Predicts High-Impact People Analytics? Making People Analytics Part of the Organizational DNA Connecting with the Business Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 2
4 Contents Topic Research Finding #1: Connecting with the Business Practical Implications: Chevron s Journey Towards Business Focused People Analytics Research Finding #2: Making People Analytics Part of the Organizational DNA Practical Implications: Chevron s Journey Towards Scaling People Analytics Globally Audience Q&A 29 Join the conversation on Twitter Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 3
5 Base Connecting or Core with Technologies the Business Partner with business units and corporate functions Embed People Analytics in business decisions
6 Connecting with the Business Partner with business units and corporate functions. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% How often does the People Analytics team partner with the following groups to understand & solve problems? 51% 43% Corporate Functions Low Analytics Maturity Business Units 51% and 43% of low analytics maturity organizations surveyed frequently partner with corporate functions and business units to understand and solve problems. Source: High Impact People Analytics Survey, Bersin by Deloitte, Deloitte Consulting LLP, 2017 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 5
7 Connecting with the Business Partner with business units and corporate functions. 100% 90% 80% 70% 60% 50% How often does the People Analytics team partner with the following groups to understand & solve problems? 77% 51% 69% 43% 51% and 43% of low analytics maturity organizations surveyed frequently partner with corporate functions and business units to understand and solve problems. 40% 30% 20% 10% 0% Corporate Functions Low Analytics Maturity Business Units High Analytics Maturity 69% and 77% of high analytics maturity organizations surveyed frequently partner with corporate functions and business units to understand and solve problems. Source: High Impact People Analytics Survey, Bersin by Deloitte, Deloitte Consulting LLP, 2017 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 6
8 Connecting with the Business Partner with business units and corporate functions. Partnerships come in many forms Dedicated liaison roles in PA teams Communities of Practice Data councils Skill teams Demonstrated Benefits of Partnerships Learn and solve real problems Know what data to track and measure Gain access to different datasets Create data governance Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 7
9 Connecting with the Business Embed People Analytics in business decisions. Business Challenge How People Analytics Can Help Profit Growth & Cost Reduction Retain top talent by proactively predicting attrition risk Identify key roles to help build and maintain strong pipeline in critical areas Sales Productivity Hire sales professionals based on traits and behaviors associated with top sales performers of the organization Growth in Emerging Markets Predict talent requirements, focus attention on highest-value current talent sources, and identify potential new sources to support growth Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 8
10 Practical Implications RJ Milnor Head of Talent Analytics 2017 Chevron. All rights reserved. IMPACT 2017
11 About Chevron ~52,000 people in 60 countries $110.2 billion in revenue 2.6 million BOED net production $233 million in social investments Glassdoor Best Places to Work 2016 #1, Business Insider 25 Best Energy Companies to Work For in America Catalyst Award 2015 The Economist, Global Diversity List Top 10 LGBT Employee Networks 100%, Human Rights Campaign Corporate Equality Index Corporate Responsibility Magazine 100 Best Corporate Citizens 2017 Chevron. All rights reserved. IMPACT
12 Focus on the business What business problem does this solve? Set a clear tone and direction through departmental mission statement To support Chevron s business strategies with better, faster workforce decisions informed by data. Develop metrics and dashboards based on business strategy Strategic metrics cascade process Identify business strategy Determine HR deliverables Convert deliverables to HR strategy Prioritize projects based on business impact Cost Workforce analytics research agenda Reject Avoid Wish list Prioritize Identify detailed metrics Business impact Lessons learned Most effective path to impact is through business alignment, not analytics sophistication. Help your customers be better consumers of your work Chevron. All rights reserved. IMPACT
13 Business problem: project delays increasing Talent availability is a key contributor to costly delays E&P companies spending > $5 billion (2011 US$) CAPEX per year and mega-projects 1 delays Number of companies, years of delay Years of delay Main challenges faced by company Normalized % of survey replies Technical & economic challenges External stakeholders Supply chain Safety & environmental 8% 8% 28% 6% People & organization 30% 20% Governance Majors Independents * Not Chevron specific data. 1. Projects with budget >$1bn (real 2011$). Source: Schlumberger Business Consulting, 2013; IHS Upstream database, February 2012; Rystad Energy; US PPI Chevron. All rights reserved. IMPACT
14 Business problem: hiring for current needs Critical skill positions require time to become proficient Hires Hiring based on current project and base business demand Impacts capability development, demographics and costs Time 2017 Chevron. All rights reserved. IMPACT
15 Solution: strategic workforce planning Integrating people with business decisions Foundational principles Take a strategic view Focus on the most critical roles Be accurate in the near-term, and directionally correct in the long-term Integrate with business planning process Ensure clear accountability for roles and responsibilities Analytics (getting the numbers right) Developed attrition model (85-93% predictive) Forecast staffing demand based on business plan Developed probabilistic and deterministic scenarios Optimized hiring plans to fill gaps and balance demographics Taking action Checkpoints with functional and executive leadership throughout Plans sent to each business unit with hiring ranges, development and mobility recommendations Enterprise-wide plan informs current and multi-year hiring and retention strategies Lessons learned Create a system that integrates work across disciplines (i.e., Functions, Planning, Analytics, HR) Simplify final Plan into clear story, relatable to business objectives, with decisive actions 2017 Chevron. All rights reserved. IMPACT
16 Base Making or Core People Technologies Analytics Part of the Org DNA Enhance basic data literacy among HR Make People Analytics more accessible Foster an overall data culture
17 Making People Analytics Part of the Org DNA Enhance basic data literacy among HR. Basic data literacy skills among the HR population is a strong predictor of High-Impact People Analytics. Percentage of organizations surveyed reporting good or very good levels of proficiency in basic data literacy skills among the HR population 28% Source: High Impact People Analytics Survey, Bersin by Deloitte, Deloitte Consulting LLP, 2017 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 16
18 Making People Analytics Part of the Org DNA Enhance basic data literacy among HR. Percentage of organizations reporting good or very good levels of proficiency in basic data literacy skills 63% 20% 27% 34% Low Analytics Maturity High Analytics Maturity HR Source: High Impact People Analytics Survey, Bersin by Deloitte, Deloitte Consulting LLP, 2017 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 17
19 Making People Analytics Part of the Org DNA Enhance basic data literacy among HR. Percentage of organizations reporting good or very good levels of proficiency in basic data literacy skills 42% 20% 22 60% 33 27% 74% 40 34% 85% 22 The gap between HR and PA functions in basic data literacy skills 63% is important. As organizations mature, rank-in-file HR needs to catch up and help close the gap. Low Analytics Maturity People Analytics HR High Analytics Maturity Source: High Impact People Analytics Survey, Bersin by Deloitte, Deloitte Consulting LLP, 2017 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 18
20 Making People Analytics Part of the Org DNA Make People Analytics more accessible. Deliver People Analytics 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% PA teams Shared services Low Analytics Maturity Copyright 2017 Deloitte Development LLC. All rights reserved. Self-service Automated dashboards High Analytics Maturity High-Impact People Analytics: The Recalculated Route to Maturity 19
21 Making People Analytics Part of the Org DNA Foster an overall data culture. Does your organization tend to make decisions based on experience or data? Experience Copyright 2017 Deloitte Development LLC. All rights reserved. Data High-Impact People Analytics: The Recalculated Route to Maturity 20
22 Making People Analytics Part of the Org DNA Foster an overall data culture. Does your organization tend to make decisions based on experience or data? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 3% Low Analytics Maturity 3% 6% High Analytics Maturity Experience Data Source: High Impact People Analytics Survey, Bersin by Deloitte, Deloitte Consulting LLP, 2017 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 21
23 Making People Analytics Part of the Org DNA Foster an overall data culture. Inclusive of data and experience. Does your organization tend to make decisions based on experience or data? 100% 90% 80% 27% 78% 100% 90% 80% 70% 70% 60% 50% 51% 60% 50% 40% 30% 20% 10% 40% 30% 20% 10% 3% 3% 6% 0% Low Analytics Maturity High Analytics Maturity 0% Low Analytics Maturity High Analytics Maturity Experience Data Source: High Impact People Analytics Survey, Bersin by Deloitte, Deloitte Consulting LLP, 2017 Copyright 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The Recalculated Route to Maturity 22
24 Practical Implications RJ Milnor Head of Talent Analytics 2017 Chevron. All rights reserved. IMPACT 2017
25 Make people analytics part of the organizational DNA How do we leverage people strategy to support business strategies? How do employees affect profitability? How can we measure this? Demand for more data-driven insights and decision making Required a stronger analytics culture and more data fluency in HR 2017 Chevron. All rights reserved. IMPACT
26 Build organizational capability People analytics learning framework Action learning Peer-assist workgroups Learners join together to solve a business problem, project or activity. Community learning sessions Structured training & development Quarterly sessions for each curriculum level Learners from same curriculum level share learning experiences and on-the-job applications. WFA 101 (Basic), 201 (Intermediate) and 301 (Advanced) curriculums Self-paced and based on course availability, each level to be completed within a 2-year time period. Community of practice meetings Yammer online social group SharePoint intranet site Monthly meetings CoP members share best practices and leverage expertise across the enterprise. Open forum for ongoing dialogue and sharing Communication builds up to and extends out from monthly CoP meetings. Information, tools and resources Tools and templates, self-directed learning, general information, announcements, FAQs, etc Chevron. All rights reserved. IMPACT
27 Create a community of learning The people analytics community of practice Who is in the CoP? Employees doing people analytics work and others interested in making business decisions with people data What does the CoP do? Build skills and capability around people analytics How? Network building Best practice sharing Action learning Structured training and development To support Chevron s business strategies with better, faster workforce decisions informed by data 340+ participants (spanning multiple functions) in about 20 countries. Membership has grown by over 170% since launch in Chevron. All rights reserved. IMPACT
28 Develop analytics skills People analytics curriculum Curriculum design Competencies WFA 201 WFA 301 Problem Solving Advanced Statistics Strategic Planning Storytelling Skills WFA 101 Business Analytics Statistics Business & Financial Acumen Workforce Planning Storytelling Behavior change Analytical Thinking Data Gathering & Reporting Effective Communications Business & Financial Acumen Lessons learned Take a top-down approach to curriculum design. Make it scalable to accelerate early adoption Chevron. All rights reserved. IMPACT
29 What we learned Bigger opportunity is creating an analytics culture throughout HR Capability-building was focused on people analysts Greater opportunity may be across HR function as a whole Learning framework largely the same Objectives and content for HR are very different than for people analytics Analytical thinking and data-driven decision-making in HR Problem identification Root cause analysis Using and applying metrics Interpreting statistics Problem solving Consulting skills Half-day seminars Developing HR Track for analytics curriculum (WFA ) 2017 Chevron. All rights reserved. IMPACT
30 Questions? Madhura Chakrabarti Research Leader, People Analytics Bersin by Deloitte, Deloitte Consulting RJ Milnor Head of Talent Analytics Chevron Corporation
31 About Deloitte As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. Copyright 2017 Deloitte Development LLC. All rights reserved.
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