analytic impact: using talent insights to enhance business · pdf filemetrics, external...

8 October 2015

Analytic Impact: Using Talent Insights to Enhance Business Performance

Lee-Anne Vallée

CEB enables more precise talent management by delivering insights and solutions to drive your business performance.

CEB Talent Management

Contact Us to Learn More +1-866-913-2638 | [email protected] | executiveboard.com © 2015 CEB. All rights reserved. CEB150448GD

Metrics That Matter™ Metrics, external benchmarking, and insights enabled through cloud-based talent analytics software to improve the business impact of talent development programs.

SHL Talent Measurement™ Selection and employee development assessments pre-hire and post-hire to measure competencies and improve performance in the areas of: •?Predict Hiring Success •?Maximize Leadership Impact •?Unlock Talent Potential •?Harness Team Effectiveness

Leadership Academies Dynamic learning experiences that build the key competencies required for mid-management professionals to shift from “functional operators” to truly strategic business contributors.

Workforce Surveys Survey offerings based on CEB’s best practices research that generate workforce insights that align employees with corporate strategy and drive business performance.

CEB’s Performance Impact Solutions Performance management and development strategy audit, redesign, and change management to improve efficiency, line satisfaction, and outcomes.

CEB TalentNeuron Talent supply-demand and cost data, predictive analytics, and decision support to improve talent investments and deployment decisions.

Plan Recruit Assess Develop Engage Perform | | | | |

CEB Leadership Councils CEB’s Leadership Councils provide on-demand access to best practices, easy-to-use analytic and implementation tools, and tailored advisory support so functional leadership teams can benchmark their performance and execute effectively by applying insights from peer companies.

CEB HR Consulting CEB’s HR Consulting services offer road maps and strategic and implementation support across all critical HR activities.

3

Focus For Today

Analytic Impact Leads to Talent Outcomes

Example: Reducing Risk and Realising Value From Your HIPO Programme

From Talent Reporting to Talent Analytics

4

2015

An Explosion of Talent Data

1980 Administrative and Compliance Data

Talent Management Data Social Technology and Behavioral Data

■ Employee Demographics

■ Payroll Data

■ Compliance Tracking

■ Hire Dates

■ Performance Evaluations

■ Employee Engagement Survey Results

■ Talent Assessment Results


■ Payroll Data


■ Hire Dates

■ Real Time Behavioral Data (e.g., e-mail habits)

■ Passive Candidate Employment and Personal Preferences

■ Past Experiences, Skills, Languages

■ Professional and Social Networks

■ Performance Evaluations

■ Employee Engagement Survey Results

■ Talent Assessment Results


■ Payroll Data


■ Hire Dates

Volume of Data

5

Pressure on HR to Capitalise on Data Assets

95% Agree

n = 108.

Source: CEB, CEB Corporate Leadership Council, Analytics Survey 2013.

Information is Important

Receives Sufficient Information

Source: PWC 15th Annual Global CEO Survey, 2012. n = 1,258.

Percentage of CEOs

Costs of Employee Turnover

Return on Investment in

Human Capital

Assessments of Internal Advancement

Labor Costs

Employees’ Views and Needs

Staff Productivity

CEOs Want More Talent Data from HR Percentage of CEOs Who Believe Information is Important and Comprehensive

0% 50% 100%

HR Plans to Increase Investments in HR Data and Analytics in the Next Two Years Percentage of Senior HR Leaders

6

From Reporting to Analytics

HR Using Data to Provide Talent Reports

Defining Terms

HR Using Analytics to Improve Business Decisions

Talent Analytics—the discovery and communication of meaningful patterns in talent data Talent Metrics—units of measurement for talent data Talent Dashboards and Reports—tools to communicate talent data

Purpose of Reports is to Provide Talent Information

Purpose of Analytics is to Improve Business Decisions

Information Provided Is Driven By Leader Requests and Data Availability

Analysis and Insights Link Explicitly to Evolving Business Challenges

Reports Provide Leaders with Talent Metrics

Insights Provide Implications for Business Outcomes

7

Analytics Central to The Future of HR

Trend

Degree of Change

Required in HR Small

Need for Talent

Analytics

Talent Shortage and Skills Scarcity

The New (Networked) Work Environment

Globalized and Multigenerational Workforce

Trend Implications for the HR Function

Degree of Change

Required in HR Small to Large

Need for Talent

Analytics Low High

Talent Shortage and Skills Scarcity

Succession Planning Deeper into the Organization—cascade succession planning deeper into organizations to address pipeline challenges further upstream

Intelligent Sourcing and Attraction—targeted use of social media to gain better insight into candidates

Personalization of EVPs—driven by deeper understanding of individual employee preferences

Globalized and Multi- generational Workfoce

Multi-Generational Management—segmented approach to managing multiple generations in the workforce

Shift from Expat to Local Talent Investments—deeper development of (and reliance on) local talent markets

Knowledge Transfer from Retiring Workers—new knowledge management capabilities to reduce knowledge loss

Convergence of Talent Management and Business Management

Heightened Talent Scrutiny by Board/CEO—talent as key to business growth; Board and CEO more focused on talent risks

Migration of HR Transaction Processing to Multi-Function Shared Services—HR transactional activities centralized in shared services organizations

8

For Most, Data Is Not Leading to Insights or Impact

Lots of Data, Minimal Insight

“There’s a lot of data out there, but not a lot of information.” VP, HR Mining Company

Few HR Leaders Believe They Are Getting Significant Returns on Analytics Investments Percentage of Senior HR Leaders

8% Agree

Source: CEB, CEB Corporate Leadership Council Analytics Survey, 2013. n = 108.

HR Analytics Has Led Me to Change a Business Decision in the Past Year Percentage of Senior Business Leaders

15% Agree

Source: CEB, Business Barometer, 2013. n = 1,590.

9

Focus For Today



From Reporting to Talent Analytics

10

Analytic Impact Leads to Talent and Business Outcomes

1. 00 1. 17

1. 00 1. 12

1. 00 1. 10 1. 00 1. 09

Analytic Impact The extent to which talent analytics improves decisions and provides actionable support to key stakeholders.

Decision Improvement “Analytics Support From the HR Function Improves Talent Decisions”

Improvement of Decisions Made By: ■ CEO ■ Board of Directors ■ Business Leaders ■ Line Managers

Actionable Support “HR is Effective at Providing Actionable Data- Based Guidance on Key Talent Areas”

Key Talent Areas Include: ■ Sourcing ■ Performance Evaluation ■ HIPO Selection ■ Leadership Development ■ Employee Engagement ■ Succession Planning ■ Compensation and Benefits

+

Analytic Impact Improves Key Talent Outcomes

Difference in Analytic Impact between Leading Analytic Organizations and the Average Organization

Bench Strength Employee Performance Quality of Hire Employee

Engagement

Average Organization

Leading Analytic Organizations

Source: CEB, CEB Corporate Leadership Council, Analytics Survey 2013.

n = 108.

1

Average Improvement in Key Talent Outcomes by Leading Analytic Organizations = 12%

11

The Business Application Gap

Business Application is the ability to take specific actions from talent analytics.

Source: CEB, CEB Corporate Leadership Council Analytics Survey, 2013.

High

Low Low High

Bus

ines

s Ap

plic

atio

n

Sophistication

High Application, Low Sophistication

Average Analytic Impact: 1.14x 3% of organizations

Leading Analytic Organizations


Low Application, Low Sophistication


Low Application, High Sophistication


Best Path to Impact

Only 17% of organizations match high sophistication with business application of insights.

Analytic Sophistication is measured by effectiveness at complex analyses

12

Three Challenges to Improving Impact

1

3 2 1

17% Agree

80% Agree

Source: CEB, CEB Global Labor Market Survey, 2013. Source: CEB, CEB Corporate Leadership Council Analytic Survey, 2013

n = 9,528. n = 108.

Few Business Leaders Believe HR Analytics Focuses on the Right Business Questions Percentage of Business Leaders

Most HR Leaders Believe HR Staff Capabilities is a Barrier to Improving HR Analytics Percentage of Senior HR Leaders

18% Agree

“Criticality” Where Should I Focus Talent Analytics?

“Capability” How Do I Upskill My HR Function?

“Credibility” How Can I Increase Credibility of HR Data?

n = 9,528.

Source: CEB, CEB Global Labor Market Survey, 2013.

Few Business Leaders Trust Talent Data and Insights from HR Percentage of Senior Business Leaders who trust talent data

13

Engage With The Business to Identify Key Talent Risks

Critical Talent Topics for Business Leaders Sample Discussion Guide

Talent Attraction

Succession Risk

Business Strategy

Employee Performance

Business and Financial Performance

Talent Identification,

Engagement and Development

What are the talent risks to executing our business strategy?

How should we scale talent with business growth?

What are the highest- return interventions to boost employee performance?

How can we compete more effectively for top talent?

How can we identify and accelerate the development of our high-potential staff?

How strong is our leadership bench?

14

Focus For Today



From Reporting to Talent Analytics

© 2015 CEB. All rights reserved 15

Realise the Promise of Your High-Potentials (HIPOs)

HIPOs are 91% more valuable to organisations than non-HIPOs

Source: CEB The Disengaged Star: Four Imperatives to Reengage High-Potential Employees,


“I’m hungry to take on more - as much as possible, as soon as possible.”

“What matters to me is a company that takes my development

seriously - really invests in me.”

“I look forward to a long career here but I’ll leave if they don’t give me the

opportunities I deserve.”

What Matters to Your Critical Talent


Current Challenges of Managing High-Potential Programmes

HIPO Programme Manager Perspectives

95% of organisations fail to follow-through on HIPO development plans

“When our HIPOs come back from the formal training programme, they don’t seem to succeed in converting their learning into improved behaviours in their daily activities”

“I have to show the management team a return on investment with my HIPO programmes or risk losing my budget and future learning development opportunities”

73% of HIPO programmes show neither business outcome nor ROI

HIPO Programme Challenges

15%

95%

73%

Only 15% of high performers are likely to be high-potential

“I struggle to identify who the true high-potential employees in the business are. I know managers often get it wrong.”

Source: 1. CEB (2010) The Disengaged Star: Four Imperatives to Reengage High-Potential Employees 2. CEB Succession Strategies for the New Work Environment 3. CEB (2012) HIPO programme Operations and Outcomes Survey


Two Distinct Root Causes for HIPO Programme Failure

Why? • Currently HIPO programmes are not

effective in developing the skills the business needs

• Formal training alone is insufficient to develop HIPOs

ROOT CAUSE 2

Failing to develop HIPOs effectively to reach their full potential

ROOT CAUSE 1

Misidentifying who the HIPOs are within an organisation

Why? • High performance is not an indicator of

high-potential

• Most assessments miss critical drivers of future success

Surfaced by CEB Leadership Council data-driven insights on HIPO initiatives


What Needs to Change to Achieve HIPO Success

Apply best practice insights and tools to manage your HIPO programme

HIPO Development Employ relevant and structured on-the-job learning

HIPO Identification Use objective and predictive measures of potential to identify and validate true

high-potential employees against a proven HIPO model

Présentateur

Commentaires de présentation

© 2015 CEB. All rights reserved © 2015 CEB. All rights reserved

HIPO Path To Success

© 2015 CEB. All rights reserved

DEVELOP Provides easy, efficient,

and scalable development with real performance

impact

IDENTIFY Measures factors critical to HIPO success to accurately

identify HIPOs and benchmark your competitive

positioning

MANAGE Apply best practice insights and tools to manage your

HIPO programme

Présentateur

Commentaires de présentation


Current Performance Does Not Equal Potential

Only 15% of High Performers Are High-Potential

High-Potentials

High Performers

46% of Leaders Lack a Systematic Process for

Identifying HIPOs

Systematic Process

HIPO Identification

Source: 1. CEB The Disengaged Star: Four Imperatives to Reengage High-Potential Employees, 2. Edwards, S. (2012) Maintaining the Delicate Balance When Developing High- Potential programmes. T+D Magazine.

2

1


CEB HIPO Model: Identifying the High-Potential

Three Distinguishing Attributes Are Critical:

HIPO

Aspiration

Ability Engagement

High Aspiration: yields 11x higher probability to achieve executive position. Will they get there? 1

3 High Engagement: yields 2x higher probability to stay, put in extra effort and meet performance goals. Will they remain with your company?

2 High Ability: yields 12x higher likelihood of being effective in senior roles. Will they be effective?

The Challenge: organisations need to assess for ALL of these distinguishing characteristics to accurately identify their true HIPOs.

Source: CEB The Disengaged Star: Four Imperatives to Reengage High-Potential Employees, 2010


All Three Attributes are Critical

Source: CEB The Disengaged Star: Four Imperatives to Reengage High-Potential Employees, 2010

Misaligned Stars

Characteristics:

• Lack the drive and ambition to succeed at the next level

• Simply don’t “want it” enough

Ability Engagement

Aspiration

Engaged Dreamers

Characteristics:

• High engagement and aspiration but lacking ability

• Hard to develop to be successful

Ability

Engagement

Aspiration

Unengaged Stars

Characteristics:

• High aspiration and ability • They don’t believe in the

organisation and its future

Aspiration

Ability

Engagement


Structured interview or online engagement survey

• Cognitive Capabilities

• Competency Potential

• Motivations

• Behavioural Styles

CEB’s Robust Assessments Accurately Identify HIPOs

Aspiration To rise to

senior roles

Ability To be effective in more

responsible and senior roles

Engagement To commit to the

organisation and remain in challenging roles


External Benchmarks For Competitive Positioning

• Benchmarking against best-in-class peers • Strategic guidance informed by assessment and external talent benchmarks • Rank-order report provides precise HIPO identification and trends across the pool • Engagement is captured to inform investment decisions

0102030405060708090

100

Gaining Support Working withPeople

Adhering toPrinciples

Deciding andInitiating Action

Leading andSupervising

% Top Talent

A detailed breakdown of results highlights where development efforts should be focused to outperform competitors

Unique to CEB’s solution….




and scalable development with real performance impact

IDENTIFY Measures factors critical to HIPO

success to accurately identify HIPOs and benchmark your

competitive positioning


MANAGE Apply best practice insights and tools to manage your

HIPO programme


Nurture For Today and Tomorrow: Where Should You Focus Your Learning and Development Investments?

Although your Nurture for Today and Tomorrow are on par with the benchmark, they are not performing as strongly on these competencies as the Strongest Potential group.

These are your strengths… To leverage these, provide this group with exposure to work situations where these behaviours can be demonstrated and practiced.

These are the potential development areas… Focusing on these will be important for the long term to ensure your future leaders create cohesive teams and approach tasks and opportunities with a view to commercial and financial factors.

These are your critical development areas… Development here is crucial to ensure your future leaders analyse and present well ordered information and are able to make swift decisions.


Redefining High-Potential Development

Extract learning from experience

75% of ability to apply

learning

High-quality learning experiences

25% of ability to apply

learning

30% in increased performance

Up to

Extraction

Performance

Exposure

From WHAT to Learn to HOW We Learn

Source: CEB L&D Leadership Council™. On-the-Job Learning Survey


How We Learn

Stop to think about what went well and what didn’t REFLECT

Ask for feedback on your performance and impact GET FEEDBACK

PRACTICE Intentionally practice until you can perform well


Evolve the 70:20:10 Learning Model

How we traditionally focus our effort:

Experience Formal Training Learning from Others

Where we need to focus our effort to improve performance:

Start End

Get Feedback

Reflect Practice Get Feedback

Reflect Practice Reflect Practice Set Foundation

More on 70:20:10: Jennings. C (2013) A Framework for High Performance Development Practices


Providing Customised Development Experiences

Action Roadmaps Work Activities Competencies Assessed

Writing and Reporting

Relating and Networking

Persuading and Influencing

Leading and Supervising

Lead a cross-functional project that requires

collaboration from many teams/groups with

competing goals and priorities

Represent your organisation at a high-profile community or

industry leading event that would ordinarily be

handled by a more senior leader

Collaborate Effectively

Communicate with Impact

Provide Informal Feedback










Outcomes

Very Significant Positive Change

50% No Change 3%

Some Positive Change 7%

Significant Positive Change 30%

Start End

Get Feedback

Reflect Practice Get Feedback

Reflect Practice Reflect Practice Set Foundation

What you have done:

What you have achieved:





and scalable development with real performance

impact

IDENTIFY Measures factors critical to HIPO

success to accurately identify HIPOs and benchmark your

competitive positioning

MANAGE Apply best practice insights and tools to manage your HIPO

programme


HIPO Programmes Could be More Impactful

Do you understand all of the pros and cons related to transparency of high-potential status?

Are you providing adequate guidance to managers to facilitate discussions with those who are not selected as HIPOs?

Do you know how to effectively create a “talent deal” with your HIPOs to clarify expectations and accountabilities?

Are you doing all that you can to retain your HIPOs, to ensure a return on investment?

Are you formally tracking the impact and success of your high-potential programme?


Making Your HIPO Initiatives More Effective

ROOT CAUSE 1

SOLUTION

Assess the 3 critical components using predictive and objective measures

SOLUTION

Develop by translating assessment results into critical learning experiences

ROOT CAUSE 2

Aspiration

Ability Engagement

HIPO

Practice Reflect Get Feedback

Misidentifying who the HIPOs are within

an organisation

Failing to develop HIPOs effectively to reach

their full potential

Ongoing Management

Maximise your HIPO initiatives by leveraging proven best practices and decision support


Key Takeaways

VP, HR Mining Company

1. Few organisations are realising the value from their investments in talent analytics due to ineffective application of talent analytics insights.

2. Leading analytic organisations – those that use talent analytics to improve decisions and provide actionable support to key stakeholders – achieve up to 23% higher talent outcomes

3. Progressive organisations leverage talent insights to reduce talent risks and realise more value from talent investments e.g. HIPO programmes

Thank You

Lee-Anne Vallée Senior Executive Advisor, CEB

[email protected]

analytic impact: using talent insights to enhance business · pdf filemetrics, external...

Documents