Download - Jonathan Ferrar Keynote London
Analytics Driving Action
Jonathan FerrarVP, Smarter WorkforceIBM
IBM Smarter Workforce : © 2013 IBM Corporation2 19 March 2013
Agenda
► IBM – Who we are and what we do
► Workforce Analytics - Background
► Analytics in Action – Prediction and Forecasting
► The Ultimate ‘Big Data’ – Social Analytics
► Getting Started
2
IBM Smarter Workforce : © 2013 IBM Corporation3 19 March 2013
IBM’s Transformation: An Ongoing Journey
Gerstner era (‘93 thru 2002)
1993 1995 1997 1999 2001 2003 2005 2007 2009 20122011
Palmisano era (‘03 thru 2011)
Rometty era (’12 to present)
IBM Smarter Workforce : © 2013 IBM Corporation4 19 March 2013
The IBM - a virtual social community
► 72% of us outside Americas
► 64% workforce in Services business
► 55% workforce has less than 5 years service
► 36% of employees work remotely
► 12% from acquisitions & outsourcing deals
► 1% on global assignments
IBM Smarter Workforce : © 2013 IBM Corporation5 19 March 2013
Agenda
► IBM – Who we are and what we do
► Workforce Analytics - Background
► Analytics in Action – Prediction and Forecasting
► The Ultimate ‘Big Data’ – Social Analytics
► Getting Started
5
IBM Smarter Workforce : © 2013 IBM Corporation6 19 March 2013
Source 1: 2012 IBM CEO study: Q24 “What do you see as the key sources of sustained economic value in your organization?”Source 2: SHRM Human Capital Benchmarking Database, 2011
Products / services innovation
Human capital
Customer relationships
Brand(s)
Business model innovation
Technology
71%
66%
52%
43%
33%
30%
Human capital is the leading cited source of economic value...
...but, CEOs face significant workforce challenges.
The average turnover in the
U.S. is 15% per fiscal year.2
Total costs of replacement can reach 200% of an employee’s annual salary.2
Key sources of sustained economic value1
CEO Study
IBM Smarter Workforce : © 2013 IBM Corporation7 19 March 2013
Can identify historical trends and patterns
Can develop scenarios and predict future outcomes
Developing workforce strategy linked to business strategy
14%39%
Developing future leaders
5%14%
Allocating the workforce across the organization
15%40%
Developing workforce skills and capabilities
19%38%
Sourcing, recruiting and onboarding individuals from outside the organization
20%40%
Retaining valued talent within the organization
22%30%
Evaluating workforce performance
23%35%
Enhancing workforce productivity
25%28%
Measuring collaboration and knowledge sharing across the organization
26%29%
Application of workforce analytics
Less than one-quarter of CHROs are using analytics to make future workforce decisions.
Source: IBM CHRO Study 2010
IBM Smarter Workforce : © 2013 IBM Corporation8 19 March 2013
Analytics are critical to HR operations and workforce effectiveness.
HR Value
$
$
Strategic
Operational
Smarter Workforce
Smarter HR Operations
SuccessionManagement
Learning &DevelopmentCompensation
Management
Performance Review
PerformancePlanning
TalentAcquisition
Workforce Planning
Global HR
Absence
Management
Payroll
Benefits
Time &Attendance
Scheduling& Staffing
IBM Smarter Workforce : © 2013 IBM Corporation9 19 March 2013
Time and Resources
Val
ue a
nd Im
pact
Based on : Competing on Analytics, Davenport and Harris, 2007
Data Managemento Consolidation of datao Data quality and accuracy
Basic Reportingo Standard reporting that is reasonably automatedo Slice and dice’ data based on standard variables
BenchmarkingoKey Performance Indicators (KPIs) oPerformance Measured against Best Practices
Analysiso Multi-dimensional analysis to better understand business challenges
Advanced Analyticso Segmentation, Predictive modeling
and Optimization
Efficiency
Effectiveness
Business Impact
Business Analytics Model
IBM Smarter Workforce : © 2013 IBM Corporation10 19 March 2013
En
terp
rise
-wid
e R
epo
rtin
g
Pre
dic
tive
An
alyt
ics
Inte
rnal
Su
rvey
s
Ext
ern
al A
nal
ytic
s
IBM Workforce Analytics - a clear purpose…
• Integrate BI into HR as an ‘everyday’ tool
• Develop deeper analytic and predictive modelling skills
• Develop key enterprise-wide reports and scorecards
• Provide better insights from analytics to inform strategy
• Grow analytic skills in emerging countries
Objectives
Purpose: To embed a culture of analytics within the HR organization
So
cial
An
alyt
ics
IBM Smarter Workforce : © 2013 IBM Corporation11 19 March 2013
Methodology : deep statistics
TestGroupTest
Group
PostPerformance
PostPerformance
ControlGroup
ControlGroup
PriorPerformance
PriorPerformance
TimeTime
Y = a1x1 + a2x2……+ eY = a1x1 + a2x2……+ e
GeographyBrand
Type ofHire
EducationType
Other
Horizontal IntegrationSegment and sub segment of population
IBM Smarter Workforce : © 2013 IBM Corporation12 19 March 2013
Agenda
► IBM – Who we are and what we do
► Workforce Analytics - Background
► Analytics in Action – Prediction and Forecasting
► The Ultimate ‘Big Data’ – Social Analytics
► Getting Started
12
IBM Smarter Workforce : © 2013 IBM Corporation13 19 March 2013
Employee segments that leave most frequently
Appraisal : 2 Grade : 7Higher Education Service : 1 year
Predictive Analytics – Attrition ‘Heat Maps’
IBM Smarter Workforce : © 2013 IBM Corporation14 19 March 2013
Predicting Value - Attrition & Compensation Analytics Combined
Attrition Reduction
Ben
efi
t ($
k)
2.7pts
Cumulative Net Benefit is maximized at $9M . . .
. . . yielding an attrition reduction of 2.7%.
IBM Smarter Workforce : © 2013 IBM Corporation15 19 March 2013
Building a ‘Risk’ Index
Environment Definition Variables Tested
External
Economic The state of the overall economy; The labor market e.g. Inflation; Unemployment
Legal Labor law trends e.g. Employment regulations
Political Political trends beyond the law and legal environment e.g. Political instability
Social Demographic change e.g. Quality of life
Internal
Technical Workforce & workplace stability; size of workforce e.g. Voluntary resignations; headcount
Legal Voice behaviors e.g. Employee complaints
Social Corporate/Organizational culture e.g. Surveys
Demographics Demographic trends e.g. Tenure, band, PBC
Attitude Employee satisfaction/dissatisfaction e.g. Surveys
Cognition Rational choice; Individuals fully process all relevant information to maximize their personal welfare
e.g. Cultural values (e.g. Hofstede, World Value Survey)
Affect Moods and emotions e.g. Cultural diff. in emotional expression
IBM Smarter Workforce : © 2013 IBM Corporation16 19 March 2013
Employee / Labour Relations ‘hotspots’
Provides a view across
the world at a quick glance
IBM Smarter Workforce : © 2013 IBM Corporation17 19 March 2013
Provides a view of internal / external
volatility relative to employee size
across time periods
Bubble Chart
IBM Smarter Workforce : © 2013 IBM Corporation18 19 March 2013
Country Level
BU Level
City Level
Sorted in numerous ways
Heat Map - At Multiple Levels of Analysis Provides a view of focus areas based on
rankings across Countries/ Business
Units/ Cities
Total/Internal/External Internal Volatility Components 1-7 External Volatility Components 1-5
IBM Smarter Workforce : © 2013 IBM Corporation19 19 March 2013
Agenda
► IBM – Who we are and what we do
► Workforce Analytics - Background
► Analytics in Action – Prediction and Forecasting
► The Ultimate ‘Big Data’ – Social Analytics
► Getting Started
19
IBM Smarter Workforce : © 2013 IBM Corporation20 19 March 2013
Analyzing Big Data created by social interactions
Dynamic Recommendations
Community Metrics Sentiment Analysis
Social Influence Analysis
Social Network Building
IBM Smarter Workforce : © 2013 IBM Corporation21 19 March 2013
IBM Social Pulse
IBM Smarter Workforce : © 2013 IBM Corporation22 19 March 2013
Agenda
► IBM – Who we are and what we do
► Workforce Analytics - Background
► Analytics in Action – Prediction and Forecasting
► The Ultimate ‘Big Data’ – Social Analytics
► Getting Started
22
IBM Smarter Workforce : © 2013 IBM Corporation23 19 March 2013
IBM Institute for Business Value
+
• Surveyed 3,000 executives, managers and analysts plus extensive interviews
• Respondents represent more than 30 industries in 108 countries
• Interviews with IBM and MIT thought leaders
• Analysis by IBM and MIT SMR team
BAO Analytics: The New Path to Value Landing Page: External Links to the full study and a 22 minute video and presentation highlighting the key findings [http://www-935.ibm.com/services/us/gbs/thoughtleadership/ibv-embedding-analytics.html]
IBM Smarter Workforce : © 2013 IBM Corporation24 19 March 2013
Organizational obstacles, not data or financial concerns, are holding back adoption
Ability to get the data
Lack of management bandwidth due to competing priorities
Lack of skills internally in the line of business
Lack of understanding how to use analytics to improve the business
Culture does not encourage sharing information
Ownership of the data is unclear or governance is ineffective
Lack of executive sponsorship
Concerns with the data
Perceived costs outweigh the projected benefits
No case for change
38%
34%
28%
24%
23%
23%
22%
21%
21%
15%
Primary obstacles to widespread analytics adoption
Organizational
Data
Financial
IBM Smarter Workforce : © 2013 IBM Corporation25 19 March 2013
Cultural shift from data extraction to business analytics
Stakeholders need to set clear priorities for data and analytics
Need a broad range of skills
Simplicity and elegance outweighs “bells and whistles”
Take some risks with new tools – open people’s minds to the opportunity
If you do what you’ve always done, you’ll get what you’ve always got
Lessons learned
1
2
3
4
5
6
IBM Smarter Workforce : © 2013 IBM Corporation26 19 March 2013
Getting Started - Recommendations
Recommendation 1:
Focus on the biggest and highest value opportunities
Recommendation 2:
Within each opportunity, start with questions, not data
Recommendation 5:
Use an information agenda to plan for
the future
Recommendation 3:
Embed insights to drive actions and deliver value
Recommendation 4:
Keep existing capabilities while adding new ones
Thank you!