MERCER WEBCAST TELLING STORY WITH DATA: GAINING …€¦ · Impact: Business Performance •...
Transcript of MERCER WEBCAST TELLING STORY WITH DATA: GAINING …€¦ · Impact: Business Performance •...
Astik Ranade, PrincipalJulia Howes, Principal
TELLING STORY WITH DATA: GAINING SENIOR-LEVEL SUPPORT FOR ANALYTICS AND PLANNING24 September 2013
MERCER WEBCAST
MERCER September 27, 2013 1September 27, 2013 1September 27, 2013
Today’s Presenters
Julia HowesPrincipal, Product Line Leader,Workforce Analytics & Planning PracticeMercer+44 207 178 [email protected]
Astik RanadePrincipal, Workforce Analytics andPlanning Leader – Asia, Middle East &AfricaMercer+65 6398 [email protected]
MERCER September 27, 2013
Today’s Discussion
2
Introduction and Setting the Context
Good story development
Story 1: A case in point
Story 2: Data driving business results
Lessons learned and getting started as a power storyteller
Q&A
MERCER September 27, 2013
Storyboard: Patty’s Pitfalls
Patty reads a great article on metricsand decides to assign her two newlyhired HR generalists to staff a newmetrics and analytics function in HR.
She directs the new function toresearch benchmarks and bestpractices in what they shouldmeasure.
BEST PRACTICES IN METRICS & DASHBOARDS
Based on her employees’recommendations, Patty purchasessome software that allows her topush monthly HR reports featuringthe dashboard’s standardized 25+HR metrics to senior leaders’inboxes, and collects data from 10disparate data sources, such asvacancy rates and time to fill. Shesends tables and pie charts.
MERCER September 27, 2013
Storyboard: Patty’s Pitfalls
Patty sends monthly reports on thesame 25+ metrics to senior leadersfor over a year.
BEST PRACTICES IN METRICS & DASHBOARDS
Patty’s supervisor informs her thatsenior leadership wants data andthey want her to design an employeesurvey.
Patty feels like she’s not gettingthrough to her senior leaders andthey don’t understand the value ofthe data they are already collectingin the dashboard.
MERCER September 24th, 2013
CEO’s are gaining awareness on the impact of theorganizations’ talent on business performance
1 Innovation
2 Human Capital
3 Global Political /Economic Risk
4 Government Regulation
5 Global Expansion
2012 CEOTop 5 Challenges
1
2
3
4
5 Global Political /Economic Risk
2013 CEOTop 5 Challenges
Source: 2012 and 2013 The Conference Board CEO Challenge
Innovation
Human Capital
Operational Excellence
Customer Relationship
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Level 1Budget-drivenheadcount planning
Stra
tegi
c
Impact: Business Performance
• Spreadsheet driven• Manual processes
• Track and understand workforce flows• Use technology to leverage data
• Identify key segments• Model gaps and “what if” scenarios• Close gaps through buy/build talent strategies
• Optimize strategies to close gaps• Create analytics and planning
centers of expertise
Ope
ratio
nal Level 2
Workforce analysis anddashboards
Level 3Strategic workforceplanning
Level 4Human capitalorganization
Your Journey: Maturity Curve
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Before you can begin interpreting a report, you mustbe able to identify and understand
Time Context
Structural Context
Measure
Attributes (Comparison)
Attributes (Filters)
Required
Optional
BEST PRACTICES IN METRICS & DASHBOARDS
Base MeasuresBase Measures
Calculated MeasuresCalculated Measures
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Polling QuestionExercise: Demonstration Data
Q: Based on the visual on the screen, do you think more highperformers have terminated in 2012 than medium performers?
a) True b) False c) Neither
Q: Based on the visual on the screen, do you think more highperformers have terminated in 2012 than medium performers?
a) True b) False c) Neither
Terminations Voluntary (High Performer)Average Headcount (High Performer)
x 100%
Terminations Voluntary (Medium Performer)Average Headcount (Medium Performer)
x 100%
Terminations Voluntary (Low Performer)Average Headcount (Low Performer) x 100%
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Polling QuestionResults
Q: Based on the visual on the screen, do you think more highperformers have terminated in 2012 than medium performers?
a) True b) False c) Neither
Q: Based on the visual on the screen, do you think more highperformers have terminated in 2012 than medium performers?
a) True b) False c) Neither
48%
32%
21%
TRUE
FALSE
Neither
MERCER September 24th, 2013
Today’s Discussion
Introduction and Setting the Context
Good story development
Story 1: A case in point
Story 2: Data Driving Business Results
Lessons learned and getting started as a power storyteller
Q&A
MERCER September 24th, 2013
Overcome Data Analysis Paralysis
Blend the art of storytelling with the scienceof data analysis andresearch =
Power Story Telling
“A detailed character-based narrative of a character’sstruggles to overcome obstacles and reach an important
goal.”
MERCER September 24th, 2013
Good Story Development
• Beginning - introduce the reader to the setting, the characters and thesituation (conflict).
• Plot point - situation that drives the main character from “normal” lifetoward some different conflicting situation that the story is about.
• Middle - series of complications and obstacles, each leading to a minicrisis.
• Climax – the ultimate crisis.
• Resolution of the climax – saving the day, feeling happy, celebrate.
• End - tie up the lose ends; share the morale of the story.
Finish your story and get out!
MERCER September 24th, 2013
Typical Data Story Development
Beginning – Introduction to the study.
Plot Point 1 - Discuss the variables studied.
Middle - series of complications and obstacles, each leading to a mini crisis.
Climax – the ultimate crisis.
Resolution - of the Climax, saving the day, feeling happy, celebrate.
End - Present the results of the data analysis.
Get out before the audience wakes up!
MERCER September 24th, 2013
Story Arc
BeginningSetup, CharactersBackground, Who,
What, Where
MiddleObstaclesConflict
EndResolution
Understanding
MERCER September 24th, 2013
Evolving Story From Data
Next, go to a case study to see impact of adding the ‘middle’
MERCER September 24th, 2013
Today’s Discussion
Introduction and Setting the Context
Good story development
Story 1: A case in point
Story 2: Data Driving Business Results
Lessons learned and getting started as a power storyteller
Q&A
MERCER September 24th, 2013
• Large regional bank with more than 20,000 employees experienced asurge in voluntary turnover, exceeding 40% among some occupationalgroups.
• Upward trend was imposing significant cost on the organization.
Improving Retention Through The Power ofDisciplined Measurement
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Turnover had more to do with career opportunity andthe stability of management than with pay
Analysis of actual turnover behavior
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Turnover Had More To Do With Career OpportunityAnd The Stability Of Management Than With Pay
Analysis of actual turnover behavior
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Calculations are based on turnover elasticity at the metropolitan area level.
To achieve a 10% reduction inturnover requires very
different amounts of payincreases in different labor
markets.
The bank could use money to solve turnover, but it would bemisspent in some locations and ineffective in others.
A Dollar Is Not Always A Dollar . . .
City G
City F
City E
City D
City C
City B
City A
$5.20
$3.14
$2.85
$2.37
$1.87
$1.63
$1.09
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What Was The Story?
BeginningMoney
Workload
MiddleCareers
Supervision
EndRetention
Data helped themconfront and slay the
real villain
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Business Results Achieved
• Re-directed focus from “just pay”
• Actions included:– Strengthening of career paths– Enhancing internal mobility– Focusing on career rewards and cash incentives for top-performing
managers
• $50 + million in annual savings– Turnover among non-exempts down by 40% in eight months– Turnover among exempts down by about 25% in the same period
MERCER September 24th, 2013
Today’s Discussion
Introduction and Setting the Context
Good story development
Story 1: A case in point
Story 2: Data Driving Business Results
Lessons learned and getting started as a power storyteller
Q&A
MERCER
What Is The Business Case?
What jobsand skills are
critical tobusinesssuccess?Where, andhow many?
What is theright cost
structure?
What are thetalent plansrequired to buy
andbuild the
right capacity?
• Growth concerns or aweak pipeline for thefuture
TalentRisk
• Lost revenue fromhaving to slowoperations or put themon hold
Financial / OperationalRisk
• Investments in thewrong people
• Overspending that canresult fromunpreparedness
HR PracticeRisk
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How Does theWorkforce
Impact
and ProfitabilityStore Revenue
More Sophisticated AnalyticsRetailCo: Advanced Analytics
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How Does theWorkforce
Impact
and ProfitabilityStore Revenue
• Local unemployment rates• Distance to work• Local labor pool (diversity, education, age, income)
• Diversity• Prior year’s sales trends• Supervisor promotion rates,
turnover rates, age, tenure• Non-supervisor promotion rates,
turnover rates, age, tenure
• Size• Supervisor spans of
control• Promotion rates• Turnover rates• Age• Tenure
• Job status• Participation in training• Internal mobility• Employment status• Hire source• Location
• Age• Gender• Ethnicity• Tenure• Performance ratings• Compensation
OrganizationalPractices
ExternalInfluences
IndividualAttributes
RetailCo: Advanced AnalyticsRetailCo: Statistical Analyses Focused on Three BroadCategories of Drivers of Both Turnover and Sales
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RetailCo: What Internal Factors Drove the Sales ofGoods?
The models on which these results arebased control for individual attributes,organizational factors and externalinfluences.
Influ
ence
Performance
The Optimal Model
Full TimeEmployees
Location
HighUnemployment Rate
Part TimeEmployees
OvertimeCompensation
ExperiencedFull Time Manager
HighTenure
MERCER September 27, 2013
Today’s Discussion
Introduction and Setting the Context
Good story development
Story 1: A case in point
Story 2: Data Driving Business Results
Lessons learned and getting started as a power storyteller
Q&A
MERCER September 24th, 2013
Data – Dialogue – Action – Results
Data
Dialogue
Action
Results
The “magic” is in thedialogue phase; howyou transform your“big data” to a storythat evokes emotion
and dialogue
Multiplicative effectEvoke emotionDrive action and results
MERCER September 24th, 2013
Caveat
Match people to data levels
Data people Dialogue people
Good stories come from all levels of data
MERCER September 24th, 2013
• Great story tellers first FIND GOOD STORIES.
• Document stories; keep journals.
• Learn to create your own story by diagnosing the stories you discover:
Find the beginning, middle and end; study how the stories are told.
• GREAT data coaches find good data stories; the place to start.
Starting point
MERCER September 27, 2013
What’s Coming Up NextWorkforce Analytics And Planning Webcast andWorkshop Series
Predictive analytics: How thepower of analytics can helpdrive business successNovember 6, 2:00 PM-3:00 PMwww.mercer.com/webcasts/predictive-analytics
STRATEGIC WORKFORCEPLANNING:Defining and FulfillingBusiness RequirementsOctober 30, 2013
WEBCAST
For more details, visit www.mercer.com/analytics-and-planning-workshops-amea