hr analytics

Applied Analytics for HCMHenner SchliebsSeptember 2012

© 2011 SAP AG. All rights reserved. 2

Predictions

Global Trends and Their Impact on Human Capital Analytics

Big DataMobility

Velocity of decision makingInformation explosion Explosion of employee data with no end in

sight Information is everywhere but trapped in

organizational silos or unstructured in the web

Harder to filter valuable insights out from all the noise

End of the gut decision – fact based business decisions are now expected

Enterprise in your pocket Revolution in user experience raises the bar

for professional applications on mobile devices

Ubiquitous access on any device is the expectation among business users

Fact-based decision making takes place everywhere, information must be available at the point of interaction to support every decision

Need for speed User perceptions change at the speed of

thought – how can I capture that knowledge and react now

Conditions can change on a dime, need to adapt and respond instantly

Must make real-time course corrections to influence the outcome of in-flight activities


Successful Human Capital Centric Organizations

Provide each role in your organization with relevant information that enable the workforce to better support sustainable growth

They do it by:

Providing deep HR metrics insights

Placing analytics in context with business processes

Aligning strategic decisions with the overall business plan

Result:

Efficient “use” of the workforce

Better business decisions

Exceptional employee / manager service experience


Workforce Analytics (Data for HR)


Talent Analytics (Data for the Business)*

1.Expanded definition of Talent Analytics. Acknowledging the pivotal October 2010 HBR article, “Competing on Talent Analytics,” the definition of ‘talent analytics’ can be expanded to include innate characteristics about the people doing the work.

2.Analyze Talent with Performance Data. For people analytics to yield the greatest insight for the business, talent data should be analyzed in conjunction with all other enterprise performance data. Instead of bringing analytic talent into HR (as Google does), the IIA advocated for bringing talent analytics to the business.

3.People are Both People and Numbers. While the concept of viewing employees as a number had been taboo; Greta pointed out everyone has a height and a weight. Employees can be both a person AND a number.

*Greta Roberts, Faculty IIA

http://hbr.org/2010/10/competing-on-talent-analytics/ar/1

http://www.talentanalytics.com/blog/why-googles-employee-engagement-programs-are-bad-for-your-business/

http://www.talentanalytics.com/blog/combining-talent-with-business-outcomes-suitcase-on-wheels/


$10.66

Analytics - payback

High Performance Appliance

GRC EPM

BI

Predictive

Mobility Cloud

Collaboration

Predictive

0.1 increase in engagement among employees

100,000 in the store’s annual operating income

Nucleus Research

HBR – Tom Davenport “competing on Talent Analytics

http://nucleusresearch.com/research/notes-and-reports/analytics-pays-back-10-dot-66-for-every-dollar-spent/

http://hbr.org/2010/10/competing-on-talent-analytics/ar/1


“Our executives want to see line charts, pie charts, and bar charts. They will not look at anything more fancy.”

Oil and gas, Brazil

“Less is more as it goes to UI. This means that there should not be an info overload, or busy screens”

Services, Germany

“Trending is more important than values.” High tech, Canada

“The starting point of an analytical task must be a business question.”

Food processing, USA

“Give me more intelligence so that it is predictive and contextual.”

Consumer goods, USA

“We plan to hire 600 employees in China but we didn’t realize we lack managers to onboard all of them.”

Consumer goods, USA

“External benchmarks only add value if they are correct and flexible.”

Services, Germany

“Our Regional Vice Presidents need to compare to each other.”

Food processing, USA

What we hear from customers


Analytics: asking questions which provide better insight into how people strategy leads to better business results

Lack credibledata that businesstrustsDon’t know how to

measure workforceefficiency andbusiness impact

HR lacks analytics skills& culture

Businessmanagers don’tuse workforceanalytics

HR OPERATIONAL HR STRATEGIC BUSINESS STRATEGIC

BU

SIN

ESS IM

PAC

T


Data Scientist – the sexiest job of the 21st century*?

...the most important qualifications for these positions are not academic degrees, certifications, job experience or titles. Rather, they seem to be the soft skills:

a curious mind, the ability to communicate with non-technical people, a persistent -- even stubborn -- character and a strong creative bent....

“

“ Computerworld – big data, big jobs? -

*HBR – Tom Davenport

?

http://www.computerworld.com/s/article/9231445/Big_data_big_jobs_?taxonomyId=221&pageNumber=1

http://hbr.org/2012/10/data-scientist-the-sexiest-job-of-the-21st-century/ar/1


Supply of analysts

2018** 140,000 – 190,000** people with “deep analytical talent”

1,500,000** people capable of analyzing data in ways that enable business decisions

**McKinsey Global Institute research

…the professionals we see that are successful come from the quantitative side," he says. "They know enough about the technology but they aren't running the technology. They rely on IT to give them the tools…

according to Jack Phillips, CEO of the IIA.

““

http://www.mckinsey.com/insights/mgi/research/technology_and_innovation/big_data_the_next_frontier_for_innovation


Achieving competitive advantage through analytics

Source: “The Digital Transformation of People Management, Oxford Econoimics, Spring 2012

Embrace the transition to strategic thinking and driving business results. Says Bob Bennett of FedEx Express, “If our HR strategies do not link to that business strategy, then we’re not supporting the company the way we need to be supporting it.”

0 10 20 30 40 50 60

HR does not perform dataanalytics.

HR analytics are not sharedbroadly outside the HR department.

HR provides key analytics acrossthe enterprise that support and

drive the business forward.

HR provides analytics to a fewdepartments as requested.

Industrial

Emerging

Source: Oxford Economics, Q11 % of respondents

Which of the following statements best describes the use of HR analytics at your firm?

“

”


Executives; Corporate StrategyCraft and guide long term

workforce plan based on given information

Finance; Controlling; BudgetingGive input regarding financial figures and receives insights for midterm financial planning regarding the workforce

€$¥

HR

BP

HR Business PartnerConsult with Business Units based on

workforce intelligence and drives action plans as final deliverable from

the process

HR HR HR

HR Administration; HR FunctionsRecruiting, Staffing, Talent Management and other HR functions support fulfillment of workforce action plans

HCM Analytics consumers by roleStakeholders across the organization

√x

Middle Managers; Line ManagersExecute on strategic plans and manage organizational performance to assure strategic objectives arereached timely and efficiently

MG

R

EmployeeNeeds contextual HR data to better perform

HR AnalystNeeds ad-hoc capabilities to do sophisticated analysis and planning


Extend your analytics capabilities where you want to be…

Sense & Respond Predict & Act

RawData

CleanedData

Standard Reports

Ad Hoc Reports &

OLAP

Generic Predictive Analytics

Predictive Modeling

Optimization

What happened?

Why did it happen?

What will happen?

What is the best that could happen?

Com

petit

ive

Adv

anta

ge

Analytics Maturity

The key is unlocking data to move decision making from sense & respond to predict & act




RawData

CleanedData

Standard Reports

Ad Hoc Reports &

OLAP


Predictive Modeling

Optimization

What happened?

Why did it happen?

What will happen?


Com

petit

ive

Adv

anta

ge

Analytics Maturity


SAP HCM Suite and embedded Analytics

SAP BusinessObjects Business Intelligence Suite




RawData

CleanedData

Standard Reports

Ad Hoc Reports &

OLAP


Predictive Modeling

Optimization

What happened?

Why did it happen?

What will happen?


Com

petit

ive

Adv

anta

ge

Analytics Maturity


SAP Executive HR Reporting / Advanced HR Reporting

SuccessFactors Workforce Analytics

SAP BusinessObjects Business Intelligence Suite

SAP Visual Intelligence




RawData

CleanedData

Standard Reports

Ad Hoc Reports &

OLAP


Predictive Modeling

Optimization

What happened?

Why did it happen?

What will happen?


Com

petit

ive

Adv

anta

ge

Analytics Maturity


SuccessFactors Workforce Analytics

SAP Predictive Analysis

Thank You!

Contact information:

Henner SchliebsAnalytics Solution [email protected]@hschliebs

mailto:[email protected]

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