from big data to big insight - dave edwards, shl/ceb
DESCRIPTION
There has been a lot of talk about big data but the conversation has now moved onto big insight. Our research shows “For 85% of business leaders, more data is not adding up to better business decisions”. How can you turn talent analytics data into insight? And how can you turn this insight into a strategic advantage? Find out how you can use data to answer questions such as: • Are we attracting and retaining top talent? • How strong is our pipeline of future leaders? • Do we have the right talent on board to drive the next phase of business growth?TRANSCRIPT
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From Big Data To Big InsightDavid Edwards, Head of Professional Services, CEB
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Who We Are
CEB is the leading member-based advisory company. We give senior leaders and theirteams insight into how the most successful organizations operate, equipping them withactionable solutions to transform operations.
CEB’s Integrated Talent Management Services help executives improve businessperformance by realizing the value and potential of people. We offer support across theentire employee life cycle, engaging HR and leaders from Finance, IT, Sales and otherorganizational teams. Our SHL Talent Measurement Solutions offer science-basedassessments, benchmark data, technologies and consultancy services to helporganizations assess, select and develop the right people for the right roles.
30 Years of Experience
110+ Countries Represented
10,000+ Participating Organizations
300,000+ Business Professionals
Solutions Overview
87% of the Fortune 500
80% of the FTSE 100
62% of the Dow Jones Asian Titans 50
Tools & Solutions Integrated Talent Management ServicesBest Practices & Decision Support
Analytics &Planning
Market Insights Best PracticeImplementation
Learning &Development
Workforce Surveys& Analytics
SHL TalentMeasurement
Solutions
LeadershipCouncils
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Problem in the World of Big Data……Size isn’t the issue……• 2013 CEB Study – 85% Executives Surveyed stated that more data
was not adding up to better decisions
• For people in HR and Talent Management Functions this is a problem
• Business Leaders recognize the need to identify, develop and retainfuture managers. But…..
What’s the ROI?
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Moving from Big Data to Big InsightsNeed to address fundamental questions
• Do I have the people to drive my business forward? (Present – Future)
• Am I confident that the people investments I make today are going to payoff tomorrow?
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What is a Big Insight?A big insight tells an organisation whether an issue is truly an issue ornot….
….and, if it is, what actions need to be taken to resolve it and improveorganisational performance.
It is the value of the insight and not just the size of the data that makes itbig.
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How do I achieve Big Insight?4 key principles can be applied to deploy talent analytics that deliver thevalue of big insights:
1.RelevanceCEB Study – Only 14% of executives believed that Talent Analytics werebeing used to explore the right issues.
So….best practice in talent analytics…must have relevance
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HIPO programmes deliver worrying low ROI
36%
64%
EffectiveIneffective
Source: HIPO Program Operations and Outcomes Survey 2012
HIPO programmes target future leaders, yetstruggle to do so effectively
The top objective of most HIPO programmes (81%) isto build a pipeline for succession management
But few HIPO programmes deliver expected talentoutcomes
Only 36% of HIPO programmes are effective atbuilding a pipeline succession management
Refers to percentage of respondents who choose Very Effectiveor Effective on a 7 point scale
Percentage of internal job moves made by High Potentials thatend in failure.
40%
60%
FailureSuccess
With dangerous consequences
Nearly 40% of internal job moves madeby people identified as “high potentials”end in failure.
Source: CLC HIPO Program Operations and Outcomes Survey, 2012
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How do I achieve Big Insight?2.Impact
Talent investments are long term….
Need to manage the odds of a positive return on investment
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How do I achieve Big Insight?3.Action
Shouldn’t just describe where we are now and where we want to betomorrow…..
Should set a prescription for tomorrow…..
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How do I achieve Big Insight?4.Perspective
The most fundamental of the principles…..
Are the right questions being asked?
Is the right data being used?
“If you do not know how to ask the right question, you discover nothing.”William Edwards Deming (TQM)
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Challenges we hear
Source: CLC High Impact leadership Transitions, 2012
Source: The SHL Talent Report 2012 Source: CLC Realising the full potential of rising talent 2005
“We are concerned about the strength ofour leadership pipeline.”
“The failure rate of transitioning leadersis high.”
“We don’t know if we are bringing theright people into our talent pools.”
“Our HIPO programmes are not delivering areturn for the business. ”
of high performers currentlyhave the potential to rise andsucceed in more senior criticalpositions
of all transitioningleaders underperform
have the potential to beeffective leaders in the nearterm
Only
29%1/15
46% of internal job moves made bypeople identified as “highpotentials” end in failure40%
Only
Nearly
Source: CLC HIPO Program Operations and Outcomes Survey, 2012
The vast majority of executives believe their organisations' succession managementsystems fail to produce a sufficient supply of leaders.
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Key Questions1. What is it that people need to have to rise to a more senior position?
2. Will they be successful when they get there?
3. Will the employee you have nominated as high potential be with youwhen they get there?
Note: Between 14% and 33% of high potential candidates reporting that they are looking outside their sponsoring organisation foremployment.
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What are the outcomes we want to achieve?
Results(Lag)
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Behaviour Results(Lag)
What behaviours drive those outcomes?
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Behaviour Results(Lag)
Potential(Predictive)
What are the characteristics of peoplethat drive those behaviours?
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Behaviour Results(Lag)
Our organising structure
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Potential(Predictive)
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SalesQualitySafety
ProductivityLeadership
Cognitive AbilityBehavioral Style
MotivationJudgment
Predictive analytics aboutpeople, behaviour and results
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What is CEB Talent Analytics?
CEB Talent Analytics benchmarks your criticaltalent pools against the best in yourmarketplace and is built upon the largestglobal database on the potential of to deliverorganisational success.
CEB Talent Analytics is benchmarking to gain the People Insight thatdrives business results
CEB Talent Analytics provides data-driven talentinsights that improve business performance
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Applying Talent Analytics
Talent Analytics provides data to drive talent decisions:
Talent Audit – Enhances internal talent benchmarks
Recruitment – Directs recruitment spend effectively
Leadership Development – Provides critical insights forleadership effectiveness programs
High Potential Programmes – Ensures high potentialprogrammes are best-in-class
High Volume Programmes – Drives decisions on criticalroles (e.g. customer contact) using market-competitive data
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In summary
• Moves predictive analytics from focusing on the individual to aview of the entire organisation
• Provides actionable competitive talent data for improving theacquisition and internal deployment of employee talent
• Gives an organisation metrics on people effectiveness,not just efficiency
• Is a new dimension in corporate analytics that drives businesssuccess
“CEB is looking to change the game by givingemployers new avenues of insight to powerdecision-making”
Aberdeen Group
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For Example:
Function, geography and job level− An organisation may be attracting great marketing talent but poor sales talent,
or strong graduates and weak leaders, or weaker graduates in a particularcountry
− Each function, geography or job level requires a different benchmark forcomparison to reveal this insight
Candidate source− From which source is the organisation attracting the strongest/weakest
candidates?− We compare each population to the same benchmark to reveal this
Stages through the recruitment process− The process may be selecting more or less of any given top talent− We compare the populations progressing to the same benchmark to reveal this
Real insight comes when we look at more granularpopulations
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0
25
50
Leading &Deciding
Supporting &Cooperating
Interacting &Presenting
Analysing &Interpreting
Creating &Conceptualising
Organising &Executing
Adapting &Coping
Enterprising &Performing
Applicants
Invited to Assessment Centre
Interviewed
Hired
SHL Banking & Finance Benchmark
Your recruitment process is screening out Leading & Deciding and Enterprising & Performingstrength…
Is the focus on acquiring talent that “delivers” high enough among recruitment decision-makers?1
The biggest step change is occurring in your assessment centres; look here first
Overall process effectiveness: Competency
Notes: Benchmark for all applicants reaching eachstage in the recruitment process against the bankingand finance industry globally. Where bars increaseacross stages, stronger talent is being acquired.Where the bars decrease across stages, the levelof talent is being reduced at successive stages.
% Top talent
11
Capability profile through the recruitment process
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0
25
50
Leading &Deciding
Supporting &Cooperating
Interacting &Presenting
Analyzing &Interpreting
Creating &Conceptualizing
Organizing &Executing
Adapting &Coping
Enterprising &Performing
Direct Applicants
Agency Sourced Applicants
Evaluating effectiveness by candidate source
Direct candidates appear stronger on five dimensions1
Candidates supplied by agencies fall short of thebenchmarks for Creating and Conceptualizing andEnterprising and Performing2
Note: Benchmark for all applicants againstthe banking and finance industry globally.
% Top talent
1
11 1
1
2
2
CEB TalentAnalytics
can be used tocompare recruiting
sources orrecruiting stage
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Evaluating the depth of the leadership pool
Overall leadership potential
Notes: Benchmark for all hires against the bankingand finance industry globally.
At their best when working ina well defined role with clearresponsibilities and expectations
At their best in a high profile rolewhere they can drive innovationand change
At their best in a role responsible forthe implementation of processes andthe delivery of targets
At their best in a role where they canframe, lead and deliver company widestrategy, working closely with andinfluencing key stakeholders
Transactional
Tran
sfor
mat
iona
l 8%
16%
18%
9%
3%
19%
12%
6%
8%
11
1
CEB Banking and Finance BenchmarkYour hires%
Overall, this organisation’s hires outperform the benchmark atthe High and Very High levels of leadership potential1
They might have some challenges in managing processeseffectively and delivering against targets
CEB TalentAnalytics
can be used tocompare
leadershipeffectiveness
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Real World Application of CEB Talent Analytics
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How do our junior managers compare to the global benchmarkpopulation?”
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How do your junior managers compare to the global benchmarkfrom a competency perspective?
The graph below shows the proportion of your junior managers (pink bars) who fall into theupper quartile of talent (top 25%) on the global SHL Competency Benchmark (horizontal bluelines)
Your junior managers match the global benchmark on Organising & Executing andEnterprising & Performing
They lack bench strength on the other six competencies particularly on Interacting &Presenting
They show higher bench strength on Creating & Conceptualising, Organising & Executingand Enterprising & Performing in comparison to the other competencies
SHL Competency Benchmark: ME Retail Organisation Overall Profile
0
10
20
30
40
50
Leading &Deciding
Supporting &Cooperating
Interacting &Presenting
Analysing &Interpreting
Creating &Conceptualising
Organising &Executing
Adapting &Coping
Enterprising &Performing
ME Retail Org
SHL Global Benchmark% Top talent
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10
20
30
40
50
60
70
Level 1 Level 2 Level 3 Level 4 Level 50
10
20
30
40
50
60
70
Level 1 Level 2 Level 3 Level 4 Level 5
ME Retail Org
SHL Global Benchmark
What do they look like in terms of Verbal and NumericalReasoning Ability...
In comparison to the global benchmark your junior managers underperform at Levels 3through 5 where talent is strongest for Verbal Reasoning Ability
More than half of your junior managers fall into Level 1 on Verbal Reasoning Ability
For Numerical Reasoning Ability, your junior managers also lack benchstrength at Levels 3through 5
Around 4 in 5 of your junior managers fall into Levels 1 and 2 on this ability
What do your junior managers look like in terms of Inductive Reasoning Ability?
Overall profile:Verbal Reasoning Ability Numerical Reasoning Ability
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...and on Inductive Reasoning Ability?
0
25
50
Level 1 Level 2 Level 3 Level 4 Level 5
ME Retail Org
SHL Global Benchmark
Overall profile:Inductive Reasoning Ability
0
10
20
30
40
50
60
70
Level 1 Level 2 Level 3 Level 4 Level 5
• For Inductive Reasoning Ability, your junior managers underperform the global benchmark at Levels3 through 5 where talent is strongest
• You have some junior managers at Level 4 on this ability
• Nearly half of your junior managers fall into Level 1
• How do your junior managers compare to the Middle East region?
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How do our junior managers compare to the Middle Eastbenchmark population?"
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How do your junior managers compare to the Middle Eastfrom a competency perspective?
Your junior managers lack bench strength across the competencies in comparison to the Middle East(horizontal blue lines)
This lack of bench strength is less significant for Supporting & Cooperating, Organising & Executingand Adapting & Coping
They show higher bench strength on Creating & Conceptualising, Organising & Executing andEnterprising & Performing in comparison to the other competencies
Why is bench strength lower on certain competencies, in particular Interacting & Presenting?
SHL Competency Benchmark: ME Retail Organisation Overall Profile
0
10
20
30
40
50
Leading &Deciding
Supporting &Cooperating
Interacting &Presenting
Analysing &Interpreting
Creating &Conceptualising
Organising &Executing
Adapting &Coping
Enterprising &Performing
ME Retail Org
SHL Middle East Benchmark% Top talent
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0
10
20
30
40
50
60
70
Level 1 Level 2 Level 3 Level 4 Level 50
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20
30
40
50
60
70
Level 1 Level 2 Level 3 Level 4 Level 5
ME Retail Org
SHL Middle East Benchmark
How do your junior managers compare to the Middle East on Verbal andNumerical Reasoning Ability...
For Verbal Reasoning Ability, your junior managers underperform the MiddleEast on Levels 3 through 5 where talent is strongest
They also lack bench strength at Levels 3 through 5 on Numerical ReasoningAbility in comparison to the Middle East
How do your junior managers compare to the Middle East on InductiveReasoning Ability?
Overall profile:Verbal Reasoning Ability Numerical Reasoning Ability
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...and on Inductive Reasoning Ability?
0
25
50
Level 1 Level 2 Level 3 Level 4 Level 5
ME Retail Org
SHL Middle East Benchmark
Overall profile:Inductive Reasoning Ability
0
10
20
30
40
50
60
70
Level 1 Level 2 Level 3 Level 4 Level 5
• For Inductive Reasoning Ability, your junior managers underperform the MiddleEast at Levels 3 through 5 where talent is strongest
• You have some junior managers at Level 4 on this ability
• How can these abilities be developed among your junior managers?
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• Overall, your junior managers show bench strength but this varies across the eightcompetencies
• Bench strength is higher for Creating & Conceptualising, Organising & Executing andEnterprising & Performing in relation to the other competencies
• A key development need has been identified as Interacting & Presenting
• Your junior managers match the global benchmark on Organising & Executing andEnterprising & Performing
• They lack bench strength when compared to the Middle East region
• Why is bench strength lower for certain competencies?
• Which competencies are essential for effectiveness in the junior manager role?
• From a Reasoning Ability perspective, your junior managers underperform against theglobal and Middle East benchmark populations
• For Inductive Reasoning Ability, you have some junior managers at Level 4
• How can you develop these talent gaps and abilities among your junior managers?
Summary of findings and recommendations
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How do I achieve Big Insight?1.Relevance
2. Impact
3. Action
4. Perspective
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Thank you
David EdwardsHead of Professional Services, [email protected]
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