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’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)


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


Agenda





► Getting Started

5


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


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


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


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


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


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


Agenda





► Getting Started

12


Employee segments that leave most frequently

Appraisal : 2 Grade : 7Higher Education Service : 1 year

Predictive Analytics – Attrition ‘Heat Maps’


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%.


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


Employee / Labour Relations ‘hotspots’

Provides a view across

the world at a quick glance


Provides a view of internal / external

volatility relative to employee size

across time periods

Bubble Chart


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


Agenda





► Getting Started

19


Analyzing Big Data created by social interactions

Dynamic Recommendations

Community Metrics Sentiment Analysis

Social Influence Analysis

Social Network Building


IBM Social Pulse


Agenda





► Getting Started

22


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]

http://www-935.ibm.com/services/us/gbs/thoughtleadership/ibv-embedding-analytics.html

http://www-935.ibm.com/services/us/gbs/thoughtleadership/ibv-embedding-analytics.html


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


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


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!

Download - Jonathan Ferrar Keynote London

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