Post on 30-Mar-2018
8 October 2015
Analytic Impact: Using Talent Insights to Enhance Business Performance
Lee-Anne Vallée
CEB enables more precise talent management by delivering insights and solutions to drive your business performance.
CEB Talent Management
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Metrics That Matter™ Metrics, external benchmarking, and insights enabled through cloud-based talent analytics software to improve the business impact of talent development programs.
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CEB’s Performance Impact Solutions Performance management and development strategy audit, redesign, and change management to improve efficiency, line satisfaction, and outcomes.
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CEB Leadership Councils CEB’s Leadership Councils provide on-demand access to best practices, easy-to-use analytic and implementation tools, and tailored advisory support so functional leadership teams can benchmark their performance and execute effectively by applying insights from peer companies.
CEB HR Consulting CEB’s HR Consulting services offer road maps and strategic and implementation support across all critical HR activities.
3
Focus For Today
Analytic Impact Leads to Talent Outcomes
Example: Reducing Risk and Realising Value From Your HIPO Programme
From Talent Reporting to Talent Analytics
4
2015
An Explosion of Talent Data
1980 Administrative and Compliance Data
Talent Management Data Social Technology and Behavioral Data
■ Employee Demographics
■ Payroll Data
■ Compliance Tracking
■ Hire Dates
■ Performance Evaluations
■ Employee Engagement Survey Results
■ Talent Assessment Results
■ Employee Demographics
■ Payroll Data
■ Compliance Tracking
■ Hire Dates
■ Real Time Behavioral Data (e.g., e-mail habits)
■ Passive Candidate Employment and Personal Preferences
■ Past Experiences, Skills, Languages
■ Professional and Social Networks
■ Performance Evaluations
■ Employee Engagement Survey Results
■ Talent Assessment Results
■ Employee Demographics
■ Payroll Data
■ Compliance Tracking
■ Hire Dates
Volume of Data
5
Pressure on HR to Capitalise on Data Assets
95% Agree
n = 108.
Source: CEB, CEB Corporate Leadership Council, Analytics Survey 2013.
Information is Important
Receives Sufficient Information
Source: PWC 15th Annual Global CEO Survey, 2012. n = 1,258.
Percentage of CEOs
Costs of Employee Turnover
Return on Investment in
Human Capital
Assessments of Internal Advancement
Labor Costs
Employees’ Views and Needs
Staff Productivity
CEOs Want More Talent Data from HR Percentage of CEOs Who Believe Information is Important and Comprehensive
0% 50% 100%
HR Plans to Increase Investments in HR Data and Analytics in the Next Two Years Percentage of Senior HR Leaders
6
From Reporting to Analytics
HR Using Data to Provide Talent Reports
Defining Terms
HR Using Analytics to Improve Business Decisions
Talent Analytics—the discovery and communication of meaningful patterns in talent data Talent Metrics—units of measurement for talent data Talent Dashboards and Reports—tools to communicate talent data
Purpose of Reports is to Provide Talent Information
Purpose of Analytics is to Improve Business Decisions
Information Provided Is Driven By Leader Requests and Data Availability
Analysis and Insights Link Explicitly to Evolving Business Challenges
Reports Provide Leaders with Talent Metrics
Insights Provide Implications for Business Outcomes
7
Analytics Central to The Future of HR
Trend
Degree of Change
Required in HR Small
Need for Talent
Analytics
Talent Shortage and Skills Scarcity
The New (Networked) Work Environment
Globalized and Multigenerational Workforce
Trend Implications for the HR Function
Degree of Change
Required in HR Small to Large
Need for Talent
Analytics Low High
Talent Shortage and Skills Scarcity
Succession Planning Deeper into the Organization—cascade succession planning deeper into organizations to address pipeline challenges further upstream
Intelligent Sourcing and Attraction—targeted use of social media to gain better insight into candidates
Personalization of EVPs—driven by deeper understanding of individual employee preferences
Globalized and Multi- generational Workfoce
Multi-Generational Management—segmented approach to managing multiple generations in the workforce
Shift from Expat to Local Talent Investments—deeper development of (and reliance on) local talent markets
Knowledge Transfer from Retiring Workers—new knowledge management capabilities to reduce knowledge loss
Convergence of Talent Management and Business Management
Heightened Talent Scrutiny by Board/CEO—talent as key to business growth; Board and CEO more focused on talent risks
Migration of HR Transaction Processing to Multi-Function Shared Services—HR transactional activities centralized in shared services organizations
8
For Most, Data Is Not Leading to Insights or Impact
Lots of Data, Minimal Insight
“There’s a lot of data out there, but not a lot of information.” VP, HR Mining Company
Few HR Leaders Believe They Are Getting Significant Returns on Analytics Investments Percentage of Senior HR Leaders
8% Agree
Source: CEB, CEB Corporate Leadership Council Analytics Survey, 2013. n = 108.
HR Analytics Has Led Me to Change a Business Decision in the Past Year Percentage of Senior Business Leaders
15% Agree
Source: CEB, Business Barometer, 2013. n = 1,590.
9
Focus For Today
Analytic Impact Leads to Talent Outcomes
Example: Reducing Risk and Realising Value From Your HIPO Programme
From Reporting to Talent Analytics
10
Analytic Impact Leads to Talent and Business Outcomes
1. 00 1. 17
1. 00 1. 12
1. 00 1. 10 1. 00 1. 09
Analytic Impact The extent to which talent analytics improves decisions and provides actionable support to key stakeholders.
Decision Improvement “Analytics Support From the HR Function Improves Talent Decisions”
Improvement of Decisions Made By: ■ CEO ■ Board of Directors ■ Business Leaders ■ Line Managers
Actionable Support “HR is Effective at Providing Actionable Data- Based Guidance on Key Talent Areas”
Key Talent Areas Include: ■ Sourcing ■ Performance Evaluation ■ HIPO Selection ■ Leadership Development ■ Employee Engagement ■ Succession Planning ■ Compensation and Benefits
+
Analytic Impact Improves Key Talent Outcomes
Difference in Analytic Impact between Leading Analytic Organizations and the Average Organization
Bench Strength Employee Performance Quality of Hire Employee
Engagement
Average Organization
Leading Analytic Organizations
Source: CEB, CEB Corporate Leadership Council, Analytics Survey 2013.
n = 108.
1
Average Improvement in Key Talent Outcomes by Leading Analytic Organizations = 12%
11
The Business Application Gap
Business Application is the ability to take specific actions from talent analytics.
Source: CEB, CEB Corporate Leadership Council Analytics Survey, 2013.
High
Low Low High
Bus
ines
s Ap
plic
atio
n
Sophistication
High Application, Low Sophistication
Average Analytic Impact: 1.14x 3% of organizations
Leading Analytic Organizations
Average Analytic Impact: 1.22x 17% of organizations
Low Application, Low Sophistication
Average Analytic Impact: 1.00x 60% of organizations
Low Application, High Sophistication
Average Analytic Impact: 1.05x 20% of organizations
Best Path to Impact
Only 17% of organizations match high sophistication with business application of insights.
Analytic Sophistication is measured by effectiveness at complex analyses
12
Three Challenges to Improving Impact
1
3 2 1
17% Agree
80% Agree
Source: CEB, CEB Global Labor Market Survey, 2013. Source: CEB, CEB Corporate Leadership Council Analytic Survey, 2013
n = 9,528. n = 108.
Few Business Leaders Believe HR Analytics Focuses on the Right Business Questions Percentage of Business Leaders
Most HR Leaders Believe HR Staff Capabilities is a Barrier to Improving HR Analytics Percentage of Senior HR Leaders
18% Agree
“Criticality” Where Should I Focus Talent Analytics?
“Capability” How Do I Upskill My HR Function?
“Credibility” How Can I Increase Credibility of HR Data?
n = 9,528.
Source: CEB, CEB Global Labor Market Survey, 2013.
Few Business Leaders Trust Talent Data and Insights from HR Percentage of Senior Business Leaders who trust talent data
13
Engage With The Business to Identify Key Talent Risks
Critical Talent Topics for Business Leaders Sample Discussion Guide
Talent Attraction
Succession Risk
Business Strategy
Employee Performance
Business and Financial Performance
Talent Identification,
Engagement and Development
What are the talent risks to executing our business strategy?
How should we scale talent with business growth?
What are the highest- return interventions to boost employee performance?
How can we compete more effectively for top talent?
How can we identify and accelerate the development of our high-potential staff?
How strong is our leadership bench?
14
Focus For Today
Analytic Impact Leads to Talent Outcomes
Example: Reducing Risk and Realising Value From Your HIPO Programme
From Reporting to Talent Analytics
© 2015 CEB. All rights reserved 15
Realise the Promise of Your High-Potentials (HIPOs)
HIPOs are 91% more valuable to organisations than non-HIPOs
Source: CEB The Disengaged Star: Four Imperatives to Reengage High-Potential Employees,
© 2015 CEB. All rights reserved 16
“I’m hungry to take on more - as much as possible, as soon as possible.”
“What matters to me is a company that takes my development
seriously - really invests in me.”
“I look forward to a long career here but I’ll leave if they don’t give me the
opportunities I deserve.”
What Matters to Your Critical Talent
© 2015 CEB. All rights reserved 17
Current Challenges of Managing High-Potential Programmes
HIPO Programme Manager Perspectives
95% of organisations fail to follow-through on HIPO development plans
“When our HIPOs come back from the formal training programme, they don’t seem to succeed in converting their learning into improved behaviours in their daily activities”
“I have to show the management team a return on investment with my HIPO programmes or risk losing my budget and future learning development opportunities”
73% of HIPO programmes show neither business outcome nor ROI
HIPO Programme Challenges
15%
95%
73%
Only 15% of high performers are likely to be high-potential
“I struggle to identify who the true high-potential employees in the business are. I know managers often get it wrong.”
Source: 1. CEB (2010) The Disengaged Star: Four Imperatives to Reengage High-Potential Employees 2. CEB Succession Strategies for the New Work Environment 3. CEB (2012) HIPO programme Operations and Outcomes Survey
© 2015 CEB. All rights reserved 18
Two Distinct Root Causes for HIPO Programme Failure
Why? • Currently HIPO programmes are not
effective in developing the skills the business needs
• Formal training alone is insufficient to develop HIPOs
ROOT CAUSE 2
Failing to develop HIPOs effectively to reach their full potential
ROOT CAUSE 1
Misidentifying who the HIPOs are within an organisation
Why? • High performance is not an indicator of
high-potential
• Most assessments miss critical drivers of future success
Surfaced by CEB Leadership Council data-driven insights on HIPO initiatives
© 2015 CEB. All rights reserved 19
What Needs to Change to Achieve HIPO Success
Apply best practice insights and tools to manage your HIPO programme
HIPO Development Employ relevant and structured on-the-job learning
HIPO Identification Use objective and predictive measures of potential to identify and validate true
high-potential employees against a proven HIPO model
© 2015 CEB. All rights reserved © 2015 CEB. All rights reserved
HIPO Path To Success
© 2015 CEB. All rights reserved
DEVELOP Provides easy, efficient,
and scalable development with real performance
impact
IDENTIFY Measures factors critical to HIPO success to accurately
identify HIPOs and benchmark your competitive
positioning
MANAGE Apply best practice insights and tools to manage your
HIPO programme
© 2015 CEB. All rights reserved 21
Current Performance Does Not Equal Potential
Only 15% of High Performers Are High-Potential
High-Potentials
High Performers
46% of Leaders Lack a Systematic Process for
Identifying HIPOs
Systematic Process
HIPO Identification
Source: 1. CEB The Disengaged Star: Four Imperatives to Reengage High-Potential Employees, 2. Edwards, S. (2012) Maintaining the Delicate Balance When Developing High- Potential programmes. T+D Magazine.
2
1
© 2015 CEB. All rights reserved 22
CEB HIPO Model: Identifying the High-Potential
Three Distinguishing Attributes Are Critical:
HIPO
Aspiration
Ability Engagement
High Aspiration: yields 11x higher probability to achieve executive position. Will they get there? 1
3 High Engagement: yields 2x higher probability to stay, put in extra effort and meet performance goals. Will they remain with your company?
2 High Ability: yields 12x higher likelihood of being effective in senior roles. Will they be effective?
The Challenge: organisations need to assess for ALL of these distinguishing characteristics to accurately identify their true HIPOs.
Source: CEB The Disengaged Star: Four Imperatives to Reengage High-Potential Employees, 2010
© 2015 CEB. All rights reserved 23
All Three Attributes are Critical
Source: CEB The Disengaged Star: Four Imperatives to Reengage High-Potential Employees, 2010
Misaligned Stars
Characteristics:
• Lack the drive and ambition to succeed at the next level
• Simply don’t “want it” enough
Ability Engagement
Aspiration
Engaged Dreamers
Characteristics:
• High engagement and aspiration but lacking ability
• Hard to develop to be successful
Ability
Engagement
Aspiration
Unengaged Stars
Characteristics:
• High aspiration and ability • They don’t believe in the
organisation and its future
Aspiration
Ability
Engagement
© 2015 CEB. All rights reserved 24
Structured interview or online engagement survey
• Cognitive Capabilities
• Competency Potential
• Motivations
• Behavioural Styles
CEB’s Robust Assessments Accurately Identify HIPOs
Aspiration To rise to
senior roles
Ability To be effective in more
responsible and senior roles
Engagement To commit to the
organisation and remain in challenging roles
© 2015 CEB. All rights reserved 25
External Benchmarks For Competitive Positioning
• Benchmarking against best-in-class peers • Strategic guidance informed by assessment and external talent benchmarks • Rank-order report provides precise HIPO identification and trends across the pool • Engagement is captured to inform investment decisions
0102030405060708090
100
Gaining Support Working withPeople
Adhering toPrinciples
Deciding andInitiating Action
Leading andSupervising
% Top Talent
A detailed breakdown of results highlights where development efforts should be focused to outperform competitors
Unique to CEB’s solution….
© 2015 CEB. All rights reserved © 2015 CEB. All rights reserved
HIPO Path To Success
DEVELOP Provides easy, efficient,
and scalable development with real performance impact
IDENTIFY Measures factors critical to HIPO
success to accurately identify HIPOs and benchmark your
competitive positioning
© 2015 CEB. All rights reserved
MANAGE Apply best practice insights and tools to manage your
HIPO programme
© 2015 CEB. All rights reserved 27
Nurture For Today and Tomorrow: Where Should You Focus Your Learning and Development Investments?
Although your Nurture for Today and Tomorrow are on par with the benchmark, they are not performing as strongly on these competencies as the Strongest Potential group.
These are your strengths… To leverage these, provide this group with exposure to work situations where these behaviours can be demonstrated and practiced.
These are the potential development areas… Focusing on these will be important for the long term to ensure your future leaders create cohesive teams and approach tasks and opportunities with a view to commercial and financial factors.
These are your critical development areas… Development here is crucial to ensure your future leaders analyse and present well ordered information and are able to make swift decisions.
© 2015 CEB. All rights reserved 28
Redefining High-Potential Development
Extract learning from experience
75% of ability to apply
learning
High-quality learning experiences
25% of ability to apply
learning
30% in increased performance
Up to
Extraction
Performance
Exposure
From WHAT to Learn to HOW We Learn
Source: CEB L&D Leadership Council™. On-the-Job Learning Survey
© 2015 CEB. All rights reserved 29
How We Learn
Stop to think about what went well and what didn’t REFLECT
Ask for feedback on your performance and impact GET FEEDBACK
PRACTICE Intentionally practice until you can perform well
© 2015 CEB. All rights reserved 30
Evolve the 70:20:10 Learning Model
How we traditionally focus our effort:
Experience Formal Training Learning from Others
Where we need to focus our effort to improve performance:
Start End
Get Feedback
Reflect Practice Get Feedback
Reflect Practice Reflect Practice Set Foundation
More on 70:20:10: Jennings. C (2013) A Framework for High Performance Development Practices
© 2015 CEB. All rights reserved 31
Providing Customised Development Experiences
Action Roadmaps Work Activities Competencies Assessed
Writing and Reporting
Relating and Networking
Persuading and Influencing
Leading and Supervising
Lead a cross-functional project that requires
collaboration from many teams/groups with
competing goals and priorities
Represent your organisation at a high-profile community or
industry leading event that would ordinarily be
handled by a more senior leader
Collaborate Effectively
Communicate with Impact
Provide Informal Feedback
Writing and Reporting
Relating and Networking
Persuading and Influencing
Leading and Supervising
Writing and Reporting
Relating and Networking
Persuading and Influencing
Leading and Supervising
© 2015 CEB. All rights reserved 32
Outcomes
Very Significant Positive Change
50% No Change 3%
Some Positive Change 7%
Significant Positive Change 30%
Start End
Get Feedback
Reflect Practice Get Feedback
Reflect Practice Reflect Practice Set Foundation
What you have done:
What you have achieved:
© 2015 CEB. All rights reserved © 2015 CEB. All rights reserved
HIPO Path To Success
© 2015 CEB. All rights reserved
DEVELOP Provides easy, efficient,
and scalable development with real performance
impact
IDENTIFY Measures factors critical to HIPO
success to accurately identify HIPOs and benchmark your
competitive positioning
MANAGE Apply best practice insights and tools to manage your HIPO
programme
© 2015 CEB. All rights reserved 34
HIPO Programmes Could be More Impactful
Do you understand all of the pros and cons related to transparency of high-potential status?
Are you providing adequate guidance to managers to facilitate discussions with those who are not selected as HIPOs?
Do you know how to effectively create a “talent deal” with your HIPOs to clarify expectations and accountabilities?
Are you doing all that you can to retain your HIPOs, to ensure a return on investment?
Are you formally tracking the impact and success of your high-potential programme?
© 2015 CEB. All rights reserved 35
Making Your HIPO Initiatives More Effective
ROOT CAUSE 1
SOLUTION
Assess the 3 critical components using predictive and objective measures
SOLUTION
Develop by translating assessment results into critical learning experiences
ROOT CAUSE 2
Aspiration
Ability Engagement
HIPO
Practice Reflect Get Feedback
Misidentifying who the HIPOs are within
an organisation
Failing to develop HIPOs effectively to reach
their full potential
Ongoing Management
Maximise your HIPO initiatives by leveraging proven best practices and decision support
© 2015 CEB. All rights reserved 36
Key Takeaways
VP, HR Mining Company
1. Few organisations are realising the value from their investments in talent analytics due to ineffective application of talent analytics insights.
2. Leading analytic organisations – those that use talent analytics to improve decisions and provide actionable support to key stakeholders – achieve up to 23% higher talent outcomes
3. Progressive organisations leverage talent insights to reduce talent risks and realise more value from talent investments e.g. HIPO programmes