High-Impact People Analytics - · PDF fileThe ‘Recalculated Route’ to Maturity May...

The ‘Recalculated Route’ to Maturity

May 22, 2017

High-Impact People Analytics

R J MilnorHead of Talent Analytics, Chevron

Madhura Chakrabarti, PhDPeople Analytics Research Leader, Bersin by Deloitte, Deloitte Consulting LLP.

High-Impact People Analytics: The ‘Recalculated Route’ to Maturity Copyright © 2017 Deloitte Development LLC. All rights reserved. 1

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Copyright © 2017 Deloitte Development LLC. All rights reserved. High-Impact People Analytics: The ‘Recalculated Route’ to Maturity 2

Making People Analytics Part of the Organizational DNA

Connecting with the Business

What Predicts High-Impact People Analytics?


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Contents

Topic

Research Finding #1: Connecting with the BusinessPractical Implications: Chevron’s Journey Towards Business Focused People Analytics

4-89-14

Research Finding #2: Making People Analytics Part of the Organizational DNAPractical Implications: Chevron’s Journey Towards Scaling People Analytics Globally

15-2223-28

Audience Q&A 29

@madhura_chak#IMPACTHR

“Base” or “Core” Technologies

• Partner with business units and corporate functions

• Embed People Analytics in business decisions

Connecting with the Business


51% 43%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

CorporateFunctions BusinessUnits

LowAnalyticsMaturity

51% and 43% of

low analytics maturity organizations surveyed frequently partner with corporate functions and business units to understand and solve problems.

Partner with business units and corporate functions.Connecting with the Business

How often does the People Analytics team partner with the

following groups to understand & solve problems?

Source: High Impact People Analytics Survey, Bersin by Deloitte, Deloitte Consulting LLP, 2017


51% 43%

69% 77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CorporateFunctions BusinessUnits

LowAnalyticsMaturity HighAnalyticsMaturity

69% and 77% of high analytics maturity organizations surveyed frequently partner with corporate functions and business units to understand and solve problems.

51% and 43% of low analytics maturity organizations surveyed frequently partner with corporate functions and business units to understand and solve problems.

How often does the People Analytics team partner with the

following groups to understand & solve problems?

Partner with business units and corporate functions.Connecting with the Business



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

Connecting with the BusinessPartner with business units and corporate functions.


Business Challenge How People Analytics Can Help

• Predict talent requirements, focus attention on highest-value current talent sources, and identify potential new sources to support growth

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

• Hire sales professionals based on traits and behaviors associated with top sales performers of the organization

Connecting with the BusinessEmbed People Analytics in business decisions.

Sales Productivity

Growth in Emerging Markets

© 2017 Chevron. All rights reserved. IMPACT 2017

Practical Implications

RJ Milnor Head of Talent Analytics

10© 2017 Chevron. All rights reserved. IMPACT 2017

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


Set a clear tone and direction through departmental

mission statement

Focus on the businessWhat business problem does this solve?

Develop metrics and dashboards based on business strategy

Prioritize projects based on business impact

Strategic metrics cascade process

Identify business strategy

Determine HR deliverables

Convert deliverables to HR strategy

Identify detailed metrics

Workforce analytics research agenda

Reject Wish list

Avoid PrioritizeCost

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.

To support Chevron’s business strategies

with better, faster workforce decisions informed by data.


Business problem: project delays increasingTalent availability is a key contributor to costly delays

E&P companies spending > $5 billion (2011 US$) CAPEX per year and mega-projects1 delaysNumber of companies, years of delay

* 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.

79

11 10

1518

23

27

31 3132 33

37

0.0

0.5

1.0

1.5

2.0

2.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Majors Independents

Years of delay

Main challenges faced by companyNormalized % of survey replies

30%

20% 28%

8% 8%

6% People & organization

GovernanceSupply chain

External stakeholders

Technical & economic challenges

Safety & environmental


Business problem: hiring for current needsCritical skill positions require time to become proficient

Hire

s

Time

• Hiring based on current project and base business demand• Impacts capability development, demographics and costs


Solution: strategic workforce planningIntegrating people with business decisions

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

• 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

• 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

• 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

Taking actionAnalyticsFoundational principles(getting the numbers right)

“Base” or “Core” Technologies

• Enhance basic data literacy among HR

• Make People Analytics more accessible

• Foster an overall data culture

Making People Analytics Part of the Org DNA


Enhance basic data literacy among HR. Making People Analytics Part of the Org DNA

Percentage of organizations surveyed reporting ‘good’ or ‘very good’ levels of

proficiency in basic data literacy skills among the HR population 28%

Basic data literacy skills among the HR populationis a strong predictor of High-Impact People Analytics.




20% 27%

34%

63%

LowAnalyticsMaturity

HighAnalyticsMaturity

HR

Percentage of organizations reporting ‘good’ or ‘very good’

levels of proficiency in basic data literacy skills



42%

60%

20%


22

33

40

22 The gap between HR and PA functions in basic data literacy skills is important.

As organizations mature, rank-in-file HR needs to catch up and help close the gap.

Percentage of organizations reporting

‘good’ or ‘very good’ levels of proficiency in

basic data literacy skills


Low Analytics Maturity

High Analytics Maturity

74%85%

27%

63%

34%

HRPeople Analytics


Make People Analytics more accessible.Making People Analytics Part of the Org DNA

Deliver People Analytics

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PAteams Sharedservices Self-service Automateddashboards

Low Analytics Maturity High Analytics Maturity


Does your organization tend to make decisions based on

experience or data?

Experience Data

Foster an overall data culture.Making People Analytics Part of the Org DNA


Experience Data

3% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



∆3%

Making People Analytics Part of the Org DNAFoster an overall data culture.


Does your organization tend to make decisions based on experience or data?


3% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



Experience Data

51%

78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Low Analytics Maturity High Analytics Maturity

∆27%

∆3%

Making People Analytics Part of the Org DNAFoster an overall data culture…. Inclusive of data and experience.


Does your organization tend to make decisions based on experience or data?


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


Peer-assist workgroupsLearners join together to solve a business problem, project or activity.

Build organizational capabilityPeople analytics learning framework

Quarterly sessions for each curriculum levelLearners from same curriculum level share learning experiences and on-the-job applications.

WFA 101 (Basic), 201 (Intermediate) and 301 (Advanced) curriculumsSelf-paced and based on course availability, each level to be completed within a 2-year time period.

Monthly meetingsCoP members share best practices and leverage expertise across the enterprise.

Open forum for ongoing dialogue and sharingCommunication builds up to and extends out from monthly CoP meetings.

Information, tools and resourcesTools and templates, self-directed learning, general information, announcements, FAQs, etc.

Community learning sessions

Structured training & development

Community of practice meetings

Yammer online social group

SharePoint intranet site

Action learning


Create a community of learningThe people analytics community of practice

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 2015.

Employees doing people analytics workand…others interested in making business decisions with people data

Who is in the CoP?

Build skills and capability around people analytics

What does the CoP do?How?

• Network building

• Best practice sharing

• Action learning

• Structured training and development


Develop analytics skillsPeople analytics curriculum

Lessons learned

• Take a top-down approach to curriculum design.• Make it scalable to accelerate early adoption.

• Business Analytics• Statistics• Business & Financial Acumen• Workforce Planning• Storytelling

• Problem Solving• Advanced Statistics• Strategic Planning• Storytelling

• Analytical Thinking• Data Gathering & Reporting• Effective Communications• Business & Financial Acumen

WFA 101

WFA 201

WFA 301

Competencies

Skills

Behavior change

Curriculum design


What we learnedBigger 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 101-301)

Research Leader, People AnalyticsBersin by Deloitte, Deloitte Consulting [email protected]@madhura_chak

MadhuraChakrabarti

Questions?

Head of Talent Analytics Chevron Corporation

RJ Milnor

About DeloitteAs used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about 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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