Workforce Analytics in Media and Technology - CTHRA workforce analytics in... · Workforce...

Workforce Analytics in Media and Technology

David White, Director, Deloitte Consulting LLPRob Eidson, Specialist Leader, Deloitte Consulting LLP

May 2, 2013

Copyright © 2013 Deloitte Development LLC. All rights reserved.

• Overview of the HR information challenge

• The journey from HR Reporting to Workforce Analytics

• How disruptions drive needs for analytics

• Using visualization techniques to drive to decisions

• Building analytic skills and capabilities

Topics


• HR Leadership

• HR Business Partner / Generalists

• HR Administration

• HR Reporting

• HR IT

• Other

Discussion: Roles and Areas of Focus

Overview


What’s the HR information delivery challenge?

• A major component of business alignment is the ability for HR to provide improved information to business leadership

• HR has traditionally focused on providing improved information to drive improved HR

• Need to provide HR-owned workforce information to business, based on strategic priorities and issues

In addressing this information need, HR is often faced with challenges such as:

• Limited capabilities of existing tools and shrinking budgets to buy/use improved tools

• Lack of available standard, trustworthy data

• Gaining strategic alignment with business to impact top line

• Analytical skill set often not found within existing HR organizations

• AND, challenging economic and business environment in which we “live”

The “Journey”


HR Reporting and Analytics are part of a journey: You don’t get from “basics” to “sophisticated” in a single step

Increasing Business ValueTransactional

HR

Info

rmat

ion

Mat

urity

Strategic

ü Data integrity & qualityü Basic employee lists & extractsü Compliance reporting

ü Process specific analyticsü Single source of data

ü Integrated analyticsü Multiple sources of data

ü Organization, job, and workforce predictive analysis

ü Cause & effect

Data & Basic Reporting

ConsolidatedReporting

BasicAnalytics

Predictive Analytics

Cross Process &

FunctionalAnalytics

What is happening?

Why is it happening?

What might be happening?


… built on a process-oriented and tool-agnostic approachReportingStrategy

BusinessResults

Data Needs & Governance

What workforce data is required to

deal with my issue(s)?

Understanding

What is currently happening related to our

workforce and why?

Future Analytical Needs

Build a platform for the issue and future issues

Report Inventory

What reports/data do

I have?

WHAT? WHO? WHY?

Delivery enabled by Technology, and ‘used’ by analysis-capable users

On Going Data & Reporting Governance

The catalyst for Workforce Analytics


The traditional view

For the last 10 years, Workforce Analytics has often been proposed, suggested, marketed, positioned as:

• The next “great frontier”

• The “latest & greatest”

• Something everyone needs to do to “keep up”

• Critical for cost savings

• A component of “operational life” (i.e., dashboards, scorecards, metrics)

• Something IT/the CIO/Leadership is pushing

However…there is a different point-of-view…


We have found that disruptions are often the catalysts for requiring truly impactful Workforce Analytics

Changing Technology

Mother Nature

High turnover

Specific jobs cannot

be filled

Employee Survey results

Changing Products

Cost of doing

business

Bad Economy

Worker shortage

Merger/ Acquisition

Good Economy

Workforce Issues

HR Operational

Issues

TalentIssues

Disruption


Practical realityThe real catalyst for meaningful workforce analytics are generally not day-to-day operations, nor IT cost savings, nor academic/theoretical requirements.

Rather they are often the significant disruptions which occur to businesses… but not on a schedule…

Workforce Issues

HR Operational

Issues

TalentIssues

Workforce Analytics

Advanced Analytics Modeling

Data Mining & Reporting

Big Data Visualization Applications

Economic & ExternalIssues


Are you ready?… And do you have the people to do the work?

Your strategic plans are to expand into new markets…


You have 100 critical employees, performing network and software development. Which your revenue for the next 2 years will be driven by…

Do you have any idea that they are applying for jobs in other places?

Workforce Analytics…because disruption happens!


• High-growth commercial business (scale)

• Changing customer and product mix (capabilities)

• New technology (resources)

• Cost containment (optimization)

• Regulatory (compliance)

• Safety (risk)

• Other?

Discussion: Disruptions you are encountering?


How to approach a “Disruption”: Important questions to ask

1 What is the business issue? What are related workforce / talent challenges at hand?

2 Which Workforce Analytics solutions do I need to address this business issue? (e.g. Demand modelling, predictive analytics, etc.)

3 What data/information is needed to answer the business issue in your selected WFA solution? Internal data?? External data?

4 What kind of decisions am I looking to make once I have the data? Validation? Recommendation?

5 What is the value for the business in your selected solution scenario?


“Workforce data exists in multiple formats, and I sometimes feel like I can’t trust the numbers. How can I better make strategic decisions using the data that I have today?”

“Attrition is more complicated than just termination rates or voluntary vs. involuntary. How can I use attrition data to better understand the inflows and outflows of my workforce and run a more efficient organization?”

“Now that I understand planned vs. unplanned attrition, how can I dig a bit deeper to better understand if my organization was effective at retaining the right people while transitioning the wrong people out? How can I create transparency and accountability for driving this type of quality?”

“How can I start to model and anticipate attrition ahead of time so I don’t have any surprises and can better plan for future workforce needs?”

“Instead of just reacting to attrition after the fact, how can I proactively address attrition within my organization?”

Data, Governance, Reporting

• Single data warehouse• Reporting tool• Governance / BICC• Evolve reporting capabilities to a higher level

Planned vs. Unplanned Attrition

• Get in front of planning and execution for attrition

• Make healthy attrition part of the workforce planning strategy

• Avoid surprises in separations rates

Attrition Performance Ratio

• Low Performance : High Performance Attrition

• Tracks “Quality of Attrition” over time

• Allows for ‘apples to apples’ comparisons across segments/ functions

• Drive accountability

Unplanned Top Performer Attrition Risk

Profile

• Integrate engagement survey and exit interviews with 3rd party data to predict supply and demand for critical workforce segments

• Model attrition risk by specific employee

Attrition Risk Profile by New Hire Candidate

• Attack attrition where it really starts: recruitment

• Improve hiring practices through use of data to proactively keep attrition rates low

Sample Solution Framework: “How do I use attrition data to better understand my retention challenges and create business value for my organization?”

Data & Basic Reporting ConsolidatedReporting Basic Analytics Functional Analytics Predictive Analytics

Bus

ines

s Va

lue

WFA

Sol

utio

n

Planned/Unplanned Calculation

AttritionPerformance

RatioEngagement

Survey Exit Interview 3rd Party / Labor Market Data

Recruiting ProcessD

ata

ERP BW

Data Source Calculation / Metric

1

2

5

4

3


Sample Disruption: The maturing market for physical home video products requires media companies to rethink the way they operate in the physical and digital markets

¡ Revenues and profits are declining due to volume decreases, price pressure, and increased unit costs

¡ Changing consumption behaviors will continue to cause customers to purchase less physical product(2)

¡ Average sales price per DVD will remain flat or decline in response to promotional campaigns, loss leaders and price competition for shelf space

¡ Blu-ray and digital revenues – while increasing steadily – will not make up for the steep projected drop-off in DVD revenues in the near future

Guiding Question

¡ How to transform the media supply chain operations together with vendors to react to the ongoing decline in physical volumes and the growth in the digital market?

Key Projections / Impacts

Sources: (1) The Digital Entertainment Group (DEG) Home Entertainment Results (2) Deloitte State of the Media Democracy Survey, http://www.deloitte.com/us/realitycheck

0

5

10

15

20

25

Spe

ndin

g ($

Billi

ons)

YearVHS/UMD DVDBD/Hi-Def Digital10% Annual Decline 20% Annual Decline

US Home Entertainment Spending by Format, 1999-2010 (1)

http://www.deloitte.com/us/realitycheck


Metric Dashboard

Helping functional VP’s analyze how the workforce performing across roles, incorporating the metric map,

metric scoring and predictive forecasting where relevant

Function Dashboard

Helping functional VP’s analyze how the workforce is performing across functions,

incorporating the metric map, metric scoring and predictive forecasting where relevant

Helping HR model and visually analyze the impact of FTE changes using key scenarios

Helping HR understand what activities and roles have the necessary skills and where

there are other roles capable of performing the activity

Role Dashboard

Helping functional VP’s analyze how the workforce is performing across roles,

incorporating the metric map, metric scoring and predictive forecasting where relevant

Workforce Planning Workforce Monitoring

Competency Analysis

Impact Analysis

Sample Solution: Workforce Analytics provides the visibility for labor optimization and better decision-making as the digital marketplace continues to grow


Sample: optimize the Talent pipeline

Interviews Completed1,930

Offers Extended413

Offers Accepted353

16,080 Total Resumes Screened

Interview Rate

Offer Rate

Accept Rate

Yield


Offers Extended390

Offers Accepted353

16,080 Resumes Screened

30%

21.4%

85.5%

18.3%

23.1%

26.3%

90.5%

23.8%

Current Process Using a Predictive Recruiting Model

Time to Hire (days)

Recruiter Capacity (CWS Hires / Year)

Recruiters needed to hire 1k CWS EE’s / Year

81 57

5.5 7.1

183 141

6,432 for Sales or Engineering 6,432 for Sales or Engineering


Sample: benefits of using a predictive recruiting model

Footer


Offers Extended390

Offers Accepted353

Speed of Hire

Accelerate the organization’s ability to quickly identify, interview, offer and hire top candidates

through data-driven resume triage, fewer required interviews, and improved yields.

Sample Metrics: Offer Rate, Accept Rate, Yield, Time to Hire

Quality of Hire

Cut through the noise and uncertainty of resume reviews and interviews by using internal and external data to predict which candidates will

make the most effective employees

Sample Metrics: New Hire Average Perf. Rating, Year 1 Average Sales

Cost per Hire

Lower the costs associated with each hire by using a data-driven approach to add efficiency to recruiting processes: from enabling recruiters to

focus on higher-value activities to minimizing opportunity costs from open positions.

Sample Metrics: Cost per Hire, Recruiter Capacity


Sample: key questions organizations are trying to address

Talent Acquisition

• Do we understand what makes candidates successful? • Are we hiring the right candidates?• How do we ensure alignment between functional recruiting performance and business

unit expectations?• What percentage of our workforce moves internally each year?

Career and Succession

Planning

• What percentage of our workforce will retire within 5, 10 and 20 years?• What is the pipeline readiness to fill critical workforce segments?• What percentage of our key positions has identified successors?• What is the depth and quality of the successor pool for key positions?• What percentage of our workforce is promoted annually and how does this compare

across demographic segments and lines of businesses?

Performance Management

• Who are the best performers and why?• What is the correlation between supervisor performance and employee performance?• What percentage of our high performers is at risk for departure? • What percentage of our high performers left by geo/business/function/manager?

Retention

• Is turnover a persistent or recent phenomena?• What percentage of involuntary turnovers is due to poor performance?• What is the impact of forced distribution performance management? (Do we lose too

many good people?)• Which lines of business or managers have the highest voluntary turnover?

Tale

nt a

nd C

apab

ility

Bui

ldin

gH

igh-

Perf

orm

ance

B

usin

ess

HR Effectiveness

• How do we enable sustainable labor cost containment, including contractor workforce?• How do we better manage workforce supply/demand to support of business changes?• Can we better manage transformation change and risk with analytics? • How do we help the broader organization build advance analytic capabilities?

Visualization


What is visualization… & why?

Visualization tools:

• go beyond the standard charts and graphs used in spreadsheets,

• display data in sophisticated ways such as dials and gauges, geographic maps, time-series charts, spark lines, heat maps, tree maps and detailed bar, pie and fever charts.

• Patterns, trends and correlations that might go undetected in text-based data can be exposed and recognized easier with data visualization software.

Ask yourself, “if I have one minute with a key leader to discuss this business-critical information, how am I going to:

1. Get his or her attention?”

2. Focus on the critical components?”

3. Move forward with action?”


Name Dept Date Rating Level ReasonAudrey Huff Accounting 17-Jun B N RetiredAl Stanek Accounting 24-Jun B N MisconductRay Ktt Accounting 1-Jun C Career Opportunity

Mike Sadek Customer Service 30-Jun A E Went to CompetitorTom Haller Customer Service 30-Jun A X Went to CompetitorHal Lanier Executive 17-Jun B X Went to CompetitorGil Garrido Facilities 10-Jun B E Back to SchoolLarry Jansen Facilities 14-Jun C N MisconductDon Mueller Finance 17-Jun F E Poor PerformanceRay Jablonski HR 2-Jun B Went to CompetitorRon Hunt HR 9-Jun B N Family issuesBob Garibaldi HR 24-Jun B E Career OpportunityRandy Moffitt IT 24-Jun B E Family issuesDolphe Luque IT 24-Jun B E RetiredRuben Gomez IT 24-Jun C E Career OpportunityRyan Garko Manufacturing 10-Jun C N Manager issuesJim King Manufacturing 14-Jun C N Manager issuesScott Garrelts Manufacturing 10-Jun D E Family issuesRamon Monzant Marketing 24-Jun B E Back to SchoolBilly Pierce Marketing 27-Jun A E Career OpportunityTravis Jackson R&D 3-Jun A E Went to CompetitorAlvin Dark R&D 17-Jun A E RetiredRandy Hundley R&D 3-Jun B E Went to CompetitorWes Westrum R&D 27-Jun B E Career OpportunityAl Gettel Sales 13-Jun B E Manager issuesDanny O'Connell Sales 20-Jun B E DeceasedMonte Irvin Sales 20-Jun C E Family issuesBill Taylor sales 28-Jun D E Poor PerformanceWarren Spahn Sales 28-Jun A E Manager issuesJohn Cumberland Shipping 1-Jun C N Back to SchoolRobby Thompson Sales 3-Jun B E Manager issuesRay Noble R&D 7-Jun C N Career OpportunityJohn Mize Manufacturing 10-Jun D E Family issuesWalker Cooper Marketing 11-Jun C N Went to CompetitorBob Bolin HR 15-Jun B E Career OpportunityMike Ivie IT 17-Jun B E Career OpportunityDave Radar IT 17-Jun A E Went to CompetitorRobert Brenly IT 18-Jun A E Manager issuesBuster Posey IT 20-Jun B E Went to CompetitorEd Bailey IT 25-Jun B E Manager issuesGus Mancuso IT 30-Jun C E Family issues

Without visualization

Row LabelsAttrits during JuneJune starting Org Population%Sales 5 200 2.5%R&D 4 20 20.0%Manufacturing 3 300 1.0%Accounting 3 50 6.0%IT 3 75 4.0%HR 3 30 10.0%Facilities 2 60 3.3%Customer Service 2 60 3.3%Marketing 2 35 5.7%Finance 1 20 5.0%Shipping 1 50 2.0%Executive 1 15 6.7%Grand Total 30 915 3.3%

Note: Data was fabricated & is not representative of any organization or any group of people


Lot of data, lots of information, but what are the takeaways?The Power Point “assault”


With visualization

Note: Data was fabricated & is not representative of any organization or any group of people, Additional charts are from Pinterest


Sample: Predictive workforce retention analytics – Data visualization

The map below segments the workforce into three predicted risk profiles by home office, and displays the corresponding voluntary attrition. The size of each bubble is proportional to the workforce headcount in each office, and the color represents the office’s relative attrition risk.


Sample: Retention Analytics Model provides key organizational insights

Executive Reporting

Attrition Risk Distribution

Attrition Drivers

Employee Level Drill-down


• We’re not there yet.

• We’re just doing very elementary basics

• We’re using an outside package or service

• IT is building capability for us

• We’re still trying to figure it out….

Discussion: How are you enabling Visualization?


Visualization Tips

• What makes a good visualization– “Hooks” the user in five seconds or less– Moves the eye quickly from topic & data to issue.– Is “contagious”– Good design which works for the consumer/decision maker – Hard data (back up detail is available)– Goes beyond standard charts– Has a clear & obvious purpose

• Where do I start– Understand the data & Understand the audience– Develop presentation “medium” which can “grab” the key consumer– Change the language from “HR” or “tool” to “Consumer and Decision

Maker”– Don’t do too many…. Focus on important points, not all points

Building capability


Capability Development Case ExampleScenario

• 150,000 employees worldwide• Historically invested in Enterprise applications to separately support functional

requirements• HR applications are loosely integrated -- each with its own reporting tool• Systems enable answers to simple, targeted questions focused on siloed HR

areas• Limited value – difficult and/or costly to answer strategic questions that require a

comprehensive view of data• Manual reconciling of multiple databases required to answer the strategic

business questions

• Establish an WFA Competency Center: A cross-operating unit COE to manage enterprise programs and evolve Workforce Analytics capabilities

• Define a comprehensive HR Data Governance Organization: Develop Workforce Analytics data definitions and data quality measures within a cross-functional data governance organization

• Support and Drive Adoption: Develop a change management strategy to drive engagement and enable the shift from siloed reporting to sophisticated analytics

• WFA Solution Framework: Solution design framework to collect business requirements, data sources, and solution value/outputs

• WFA Prototypes: Starter solution sets based on business issues, helped to showcase the opportunities and drive adoption

• PMO: Manage an integrated set of Workforce Analytics projects to effectively leverage resources, mitigate risks, drive progress, and enable short- and long-term success.

Approach to Building Capability

WFA Vision

HR CoE Structure

WFA Capability Model

WFA Solutions

Data Governance

WFA Adoption Strategy

WFA Prototypes

WFA COE


Build your skills

• Re-vitalize Math & Statistical skills• Learn Excel, beyond lists & arithmetic e.g. graphs,

charts, formulas, tables• Read up on Fitz-Enz, Boudreau, Davenport

• Leverage the metrics and language of your industry(e.g., tiers of service, commercial, subscribers)

• Learn the current numbers your company is dealing with now (e.g., Annual Reports, Investor Comments)

Statistical Analysis

Business Analysis

What else would I need to address

the businessissue?

• Speak to what HR is doing now• Speak to impact of metrics what gets measured,

gets managed• Financials vs. HR


• Sponsorship & Leadership• Customer Awareness: Know your customers and what they

value• Start Small & Iterate… No Big Bang approach • Implement a governance structure• Change management & competency development• Manage dependencies

Our experience has shown that there are a set of key factors that influence success in accomplishing Workforce Analytics work.

Keys to success


Workforce analytics resources

Websites:• Visier: http://www.visier.com/resources/• Pinterest: Human Capital Analytics, Human Capital Metrics, Workforce Analytics,

infographix• LinkedIn: Workforce Analytics, Predictive Analytics, HR Metrics, Real Analytics• IHRIM: Workforce Analytics in “CORE” (their social media tool)• Deloitte Analytics: www.deloitte.com search on “Deloitte Analytics”Books: • Hoffman/Lesser/Ringo – Calculating Success, How The New Workforce Analytics Will

Revitalize Your Organization• Burkholder/Golas/Shapiro – Ultimate Performance, Measuring Human Resources at

Work• Dr. Jac Fitz-Enz – The New HR Analytics • Thomas H. Davenport – Competing on Analytics• John Boudreau/Wayne Cascio – Investing in People • John Boudreau/Ravin Jesuthasan – Transformative HR• Darrell Huff – How to Lie with Statistics

http://www.visier.com/resources/

www.deloitte.com

Thank you!


David WhiteDirector, Deloitte Consulting [email protected]

Rob EidsonSpecialist Leader, Deloitte Consulting [email protected]

Contact info

mailto:[email protected]

mailto:[email protected]


This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation.

About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/aboutfor a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2013 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu Limited

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Workforce Analytics in Media and Technology - CTHRA workforce analytics in... · Workforce...

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