Human Capital Metrics

Human Capital Metrics Stephanie Pittman, Director Global HR Services

Boston Scientific Corporation March 2012

Boston Scientific Confidential -- For Internal Use Only. Do Not Copy, Display or Distribute Externally

Agenda

2

Boston Scientific Company Overview

Problem Statement

Human Capital Metrics to gain competitive

advantage

Global Roll out of Human Capital Metrics – 10

Keys to Success

Wrap Up/Q&A


Boston Scientific’s mission is to improve the

quality of patient care and the productivity of

health care delivery through the development

and advocacy of less-invasive medical devices

and procedures.

MISSION STATEMENT

This is accomplished through the continuing

refinement of existing products and

procedures and the investigation and

development of new technologies that can

reduce risk, trauma, cost, procedure time and

the need for aftercare.


BOSTON SCIENTIFIC CORPORATION PROFILE

GENERAL FACTS:

• Founded in 1979 with 38 employees and

$2 million in sales

• Now one of the world’s largest medical

device companies

• Portfolio of more than 13,000 products

• Added Cardiac Rhythm Management

through acquisition of Guidant Corporation

in 2006

• Corporate HQ: Natick, MA

• Regional HQs: Paris, Tokyo

• Website: www.bostonscientific.com

PRODUCT INNOVATION:

• More than 15,000 Patents issued

worldwide

• $1.0 Billion invested in R&D (’09)

FINANCIALS:

• $8.2 Billion Revenue (’09)

• $1.2 Billion Net Income1 (’09)

• 15% CAGR2 (’03-’09)

• NYSE: BSX

DEMOGRAPHICS:

• 25,000 Employees

• Sales forces in more than 40 countries

• 17 manufacturing facilities worldwide

1. Excluding acquisition, litigation,

divestiture, restructuring and

other charges

2. Compound Annual Growth Rate

BOSTON SCIENTIFIC IS A GLOBAL COMPANY FOCUSED ON INNOVATIVE MEDICAL DEVICES AND PROCEDURES


OUR BUSINESS HAS 4 FOCUS AREAS

5

NUEUROMODULATION

UROLOGY AND WOMEN’S HEALTH

ENDOSCOPY

CARDIOLOGY, RHYTHM AND VASCULAR


BOSTON SCIENTIFIC IS ADVANCING PATIENT CARE ACROSS A BROAD RANGE OF MEDICAL SPECIALTIES

INTERVENTIONAL

RADIOLOGY

PERIPHERAL VASCULAR

PAIN MANAGEMENT

ELECTROPHYSIOLOGY

WOMEN’S HEALTH

NEUROVASCULAR

UROLOGY

CARDIAC RHYTHM

MANAGEMENT

ONCOLOGY

INTERVENTIONAL

CARDIOLOGY

INTERVENTIONAL

RADIOLOGY

GASTROENTEROLOGY

INTERVENTIONAL

BRONCHOSCOPY


SAMPLING OF BOSTON SCIENTIFIC’S PRODUCT PORTFOLIO

THREE DECADES OF INNOVATION HAVE LED TO A BROAD AND DEEP PORTFOLIO OF MORE THAN 13,000 PRODUCTS

STENTS EMBOLIC PROTECTION BALLOONS CATHETERS/GUIDEWIRES ULTRASOUND IMAGING

LITHOTRIPSY SYSTEMS STONE RETRIEVAL PELVIC FLOOR REPAIR EMBOLICS BIOPSY SYSTEMS

PACEMAKERS/ICDs/CRTs DETACHABLE COILS ABLATION PERIPHERAL DILATATION NEUROSTIMULATION


Agenda

8


Business Problem Statement


advantage


Keys to Success

Wrap Up/Q&A


The Business Context - A Changing Global Economy

9

Economic Landscape

• Multi Speed Recovery

• Currency Wars

• Emerging Customers

• Changing Customer attitudes in Developed World

• Higher Inflation

• Information Technology

Organizational Challenges

• Adjusting to growth in developing markets

• Coping with inflation and resource constraints

• War for Talent

• Focus on Cost

• Global and Diverse Workforce

• Multi Technology

Human Capital Challenges

• Focus on Management adding value

• Defining what behaviours, systems, processes create greatest ROI

• Establishing measures

• Linking to strategy

Boston Scientific Confidential -- For Internal Use Only. Do Not Copy, Display or Distribute Externally 10

Business Problem Statement

We have insufficient Human Capital data and analytics to drive data based business decisions across a global organization potentially resulting in:

• Increased costs from turnover

• Increased costs due to lower productivity

• Costs associated with interventions that may not have return on investment and may not result in desired business outcomes

• Loss of revenue

The root causes of our lack of sufficient data are:

• Lack of integrated data model and data quality governance program

• Inability to access data and analytics in efficient and effective manner

• Lack of business focus and competency in HR analytics


Quick Audience Poll

How many of you/your organizations identified the

same/similar problem statement?

Where is the business imperative coming from?

Is HR positioned to take on this challenge?

Is the business willing to invest money, effort and time?

Is everyone aligned on critical metrics and data?


Agenda

12


Problem Statement


advantage


Keys to Success

Wrap Up/Q&A


What is Human Capital Analytics?

• HR Metrics are measures of performance

• HR Analytics examines the effect of HR

Metrics on performance

• HR Analytics delivers insights from

quantitative metric data to shape decisions

and outcomes for organizations looking to

maximize the value of every investment.

• HR Analytics can help direct investments

toward the people and programs most

essential to driving high performance and

improving business results.

• Descriptive Analytics focus on the Past

and the Present

• Predictive Analytics focus on the Future


Who cares about Human Capital Analytics?

HR Specialists

Do I have efficient processes that create

value for the organization?

Am I making the right investments in people and HR processes to support the strategic

goals HR Director

Senior Leadership

Are the building blocks in place to support the

strategy and ultimately deliver shareholder value?

Line Managers

Do I have access to the right data to enable me to make human capital

decision that will impact the business?

Internal Stakeholders have different roles and interests in Human Capital

Analytics and will require different conversations


Different organizations are at varying states of Analytical Maturity

We are

currently here!

We need

to be here


“Meaningful” Analytics

Accurate, harmonized data and human capital metrics

Data availability

Data integrity

Standard definitions

Harmonized views of the business

Global v. Local

Access to data and metrics

Standard reports & metrics

Automation

Self service

On demand

Ad hoc

Use of Analytics

Trend analysis

Root cause analysis

Action plans

Continuous improvement

Decision making

PS DQM

Core HCM

EE Data Mgmt Global HR

Dashboard

Core HCM

Local metrics &

data

Training for HRBPs &

COEs

Skill & competency

improvement

VIPs & Targets

There is significant work to do across the spectrum &

it is a multi-year journey


Effective HR Analytics…..

• Sets out quantitative and qualitative

information

• Analyzes benchmarking data, ideally

established targets

• Identifies key performance drivers and

demonstrates how HR programs are adding

value

• Reviews how well HR Strategy is

contributing to business performance

• Set out ROIs on investments in

development programs

• Draws conclusions on implications for HR

Strategy and practice

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•What does the data tell me?

•How am I performing against competitors?

•What do I need to improve?

•What are the issues I need to watch?

•Are there any major challenges ahead?

•What investments in my human capital will

generate the greatest return?

In Simpler Terms…


HR Metrics v. Human Capital Metrics

HR metrics

measure

efficiency

Human

capital

metrics

measure

effectiveness


Agenda

20


Problem Statement


advantage

Global Roll out of Human Capital Metrics –

10 Keys to Success

Wrap Up/Q&A


1. Have a well-defined problem statement

• What problem do you need to solve?

• What are the expected business benefits?

2. Establish buy-in early and often

• Engage Senior Leadership Teams

• Engage global stakeholders in requirements gathering

• Establish a Steering Committee

• Provide regular updates

• Establish strong partnerships with IS and Finance

3. Ensure integrity of data

• Conduct data quality assessment

• Conduct data modeling exercise

• Implement employee master data management program

• Provide one version of the truth

4. Leverage technology

• Utilize self service models

• Automate as much as possible

• Customize dashboards for different audiences

5. Tie Human Capital metrics and reporting to business results and outcomes

• Develop scorecard with clear linkages and report monthly

• Establish performance targets

• Link to performance objectives

Global Rollout – 10 Keys to Success


6. Build Human Capital Analytics into the DNA of your organization

• Educate HR and business leaders to access and utilize data effectively

• Include analytics competency and skills into job profiles, competency models & performance evaluations

• Incorporate HCM and analytics in business reviews, strategic planning, and other forums

• Conduct robust change management exercises

7. Plan in phases to avoid stalling progress; let it evolve

• Determine manageable phasing based on availability of data & metrics, scope complexity and change management required

• Implement in phases to show progress, gain support, and evolve competency in the organization

8. Staff HR Analytics function appropriately

• Embed within HR function

• Support organization centrally

• Invest in appropriate # and level of resources

• Focus on analytical skills, consulting skills

9. Don’t measure everything simply because you can; align on key measures

• Identify less than 10 key global measures – most impactful and predictive

10. Establish global standards but allow for local customization

• Align on key global measures; enable additional measures to be tracked locally

Global Rollout – 10 Keys to Success


Wrap Up/Q&A

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Stephanie Pittman

Director, Global HR Services

Boston Scientific Corporation

One Boston Scientific Place

Natick, MA 01760

Office: 508.650.8716

[email protected]

www.bostonscientific.com

mailto:[email protected]

http://www.bostonscientific.com/

Human Capital Metrics

Business

Transcript of Human Capital Metrics