Scaling People Analytics Globally: Chevron Takes a Multipronged Approach to Building Organizationwide Analytics Capabilities

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1 Scaling People Analytics Globally: Chevron Takes a Multipronged Approach to Building Organizationwide Analytics Capabilities January 26, 2017

2 High-Impact People Analytics Survey Where is your organization in the people analytics journey? Tell us about it now through Feb 10, The survey is live! Take the survey and receive: Invitation to a webinar sharing survey results Executive summary of the key findings Instant snapshot of where organizations are investing resources to improve people analytics As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte USA LLP, Deloitte LLP and their respective subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright 2017 Deloitte Development LLC. All rights reserved. 2

3 Today s Agenda & Presenters Madhura Chakrabarti, PhD Research Leader People Analytics and Employee Engagement Bersin by Deloitte, Deloitte Consulting LLP R J Milnor Head of Talent Analytics Chevron Corporation Copyright 2017 Deloitte Development LLC. All rights reserved. 3

4 Taking it to The Next Level: Scalability of People Analytics Differentiating Factors Data quality Dashboard capabilities Q) What makes it scalable? Team capabilities IT support Culture of data-driven decision-making A) Build capability across the enterprise. Source: High-Impact Talent Analytics: Building a World-Class HR Measurement and Analytics Function, Bersin by Deloitte, Deloitte Consulting LLP / Josh Bersin, Karen O Leonard, and Wendy Wang-Audia, Copyright 2017 Deloitte Development LLC. All rights reserved. 4

5 Scaling People Analytics Globally Building an effective & sustainable People Analytics function RJ Milnor

6 About Chevron 7

7 Importance of People Analytics Top 10 global human capital trends People Analytics continues to be a top challenge for business and HR leaders. Source: Global Human Capital Trends 2016, Deloitte University Press, DUPress.com. 8

8 The Capability Gap Building organizational capability in Analytics is a key to results Across organizations, Talent Analytics is one of the Top 3 Capabilities Gaps Capability Gaps in Selected Areas 2014 & 2015 Source: Global Human Capital Trends 2015, Deloitte University Press, DUPress.com. 9

9 Obstacles to Success Chevron faced 3 challenges to effectively leverage people analytics Focus Capability Credibility How do we build a People Analytics function that can support and inform the business? 10

10 Talent Outcomes Organizational Average Talent Outcomes Step 1: Focus on the Business Most effective path to analytics impact through business application Improvement in Talent Outcomes by Analytic Sophistication Analytic Impact by Business Application and Sophistication High Although a basic level of analytic sophistication is necessary for impact further investments in sophistication alone yield low additional benefits. High High Application, Low Sophistication Leading Analytic Organizations Average Analytic Impact: 1.14x 3% of organizations Average Analytic Impact: 1.22x 17% of organizations High Best Path to Impact Low Application, Low Sophistication Average Analytic Impact: 1.00x 60% of organizations Low Application, High Sophistication Average Analytic Impact: 1.05x 20% of organizations Low Low Analytic Sophistication High Low Low Analytic Sophistication High Source: CEB Corporate Leadership Council, The Analytics Era: Transforming HR s Impact on the Business (CEB, 2013). N = Business application is measured by effectiveness at identifying the right business problems, applying business judgment to data, and engaging leaders to take action. 2 Sophistication is measured by effectiveness at complex analyses (e.g., predictive modeling). 11

11 Step 1: Focus on the Business What business problem does this solve? 1 Set a clear tone and direction through departmental Mission Statement 2 Develop metrics & dashboards 3 Prioritize projects based on based on business strategy business impact Strategic Metrics Cascade Process Workforce Analytics Research Agenda REJECT WISH LIST Cost AVOID PRIORITIZE Source: Verizon Communications Inc.; CEB Corporate Leadership Council. Business Impact 12

12 Step 2: Build Organizational Capability The Workforce Analytics Community of Practice Who 300+ Members 17 Countries 23 Business Units What Build skills & capability around workforce analytics How Network building Best practice sharing Action learning Structured training & development To support Chevron s business strategies with better, faster workforce decisions informed by data. The CoP launched in February Membership has grown by 140% since launch, and continues to expand its scope of learning and development opportunities. 13

13 Step 2: Build Organizational Capability Workforce Analytics Curriculum Competencies Skills Behavior Change WFA 101 WFA 201 Analytical Thinking Data Gathering & Reporting Effective Communications Business & Financial Acumen WFA 301 Problem Solving Advanced Statistics Strategic Planning Business Analytics Storytelling Statistics Business & Financial Acumen Planning Storytelling 14

14 Step 2: Build Organizational Capability Workforce 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 onthe-job applications. WFA 101 (Basic), 201 (Intermediate) & 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 & Sharing Communication builds up to and extends out from monthly CoP meetings. Information, Tools & Resources Tools & templates, self-directed learning, general information, announcements, FAQs, etc. 15

15 Step 3: Optimize Organizational Structure Design Center of Expertise (COE) to maximize effectiveness Single source of truth Enterprise governance Eliminates redundancy Improved timeliness Accelerates development by co-locating talent COE creates single source of truth for workforce data and analytics, while eliminating redundant work. 16

16 Value Step 3: Optimize Organizational Structure Focus on areas of competitive advantage What are our core competencies? Consider outsourcing less differentiated activities Focus COE on highvalue activities unique to our business Current Workforce Analytics Activities Knowledge of external best practices & trends Data cleansing Data crunching Data validation Model building Report/template creation Collaborate, influence, and build relationships Understanding of systems and processes ~40% of analyst time according to recent survey Differentiation Knowledge of business and strategies Link strategies to people process/results Design research approaches & models to address needs 17

17 Step 4: Leverage Talent Across Enterprise 18

18 Step 4: Leverage Talent Across Enterprise Identify exceptional analytics talent from across enterprise Introduce deep technical skill and business expertise to COE Provide business functions with insight into global talent management processes Workforce Analytics COE Data Science?? Engineering Information Technology? 19

19 Looking back.. What would you have done differently? What are the lessons learned? Copyright 2017 Deloitte Development LLC. All rights reserved. 20

20 Lessons Learned 21

21 Available to Bersin by Deloitte Members Scaling People Analytics Globally: Chevron Takes a Multipronged Approach to Building Organizationwide Analytics Capabilities Part I November, 2016 Scaling People Analytics Globally: Chevron Takes a Multipronged Approach to Building Organizationwide Analytics Capabilities Part II December, 2016 Copyright 2017 Deloitte Development LLC. All rights reserved. 22

22 Audience Questions? Copyright 2017 Deloitte Development LLC. All rights reserved. 23