cfo vision 2014 navigate your world...•2 people •focus: same as previous plus global hr...

November 19–21 | Washington, D.C.

CFO VISION 2014

Navigate your world

Vice President, Talent and HR Research

Bersin by Deloitte

Deloitte Consulting LLP

Stacia Sherman Garr

Talent analytics: Leveraging data

to develop critical staff, reduce costs,

and increase productivity

Tina Witney Finance Transformation Practice Leader

Human Capital


Copyright © 2014 Deloitte Development LLC. All rights reserved.

• Welcome

• Setting the context

• Talent Analytics Maturity Model

• How organizations increase their maturity

• Partnering with HR for better analytics

• Key takeaways

Agenda

3 3


Ninety-three percent of finance leaders agree that talent

is important to their finance strategy

It is my top concern 34% Somewhat

important 58%

Neutral 6%

Unimportant 2%

“How important is finance talent management to your finance strategy?”

Source: “Business Partners Needed: Results of Deloitte’s 2013

Global Finance Talent Survey,” Deloitte, 2013

4 4


Yet, at least four out of 10 finance leaders don’t believe their

organization manages talent well

40%

42%

54%

54%

54%

55%

56%

59%

Deploys finance talent to key opportunities(outside the finance organization)

Plans in advance for talent needs

Recruits the right talent

Connects finance talent with otherprofessionals within the company

Develops future finance leaders

Retains the right finance talent

Deploys finance talent to key opportunities(in the finance organization)

Hires the right talent

“Indicate your agreement with the following statements about your finance organization's approach to talent management.”

Source: “Business Partners Needed: Results of Deloitte’s 2013 Global Finance Talent Survey,” Deloitte, 2013

Talent analytics can help the finance function, and all of the business,

address these critical talent challenges

5

Copyright © 2014 Deloitte Development LLC. All rights reserved. 6 Talent Analytics

The hype


Which functions have strong analytics capabilities?

The reality

15%

56%

58%

77%

81%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

HR

Marketing

Sales

Operations

Finance

Source: High-Impact Talent Analytics, Bersin by Deloitte, 2013

7


Operational reporting Reactive reporting of operational and compliance measures •

Focus on data accuracy, consistency, timeliness

Advanced reporting Proactive reporting for decision making • Analysis of trends

and benchmarks • Customizable, self-service dashboards

Advanced analytics Statistical analysis to solve business problems • Identification of issues

and actionable solutions • Centralized staffing and integrated data

Predictive analytics Development of predictive models • Scenario planning • Integration

with business and workforce planning • Data governance model

Level 1

Level 2

Level 3

Level 4


4%

10%

30%

56%

Bersin’s Talent Analytics Maturity Model

8

Where do you think your overall organization is currently

on the Talent Analytics Maturity Model?

What about your finance organization?

Questions for the room


The value of mature talent analytics

Today, just 4 percent of HR organizations have a mature talent analytics function,

and yet these organizations are…

2X more likely to

improve their

recruiting

efforts

2X more likely to

improve their

leadership

pipelines

3X more likely to

realize cost

savings and

efficiency

gains

generating

30% higher stock

returns than

the S&P 500

over the past

three years

Source: “High-Impact Talent Analytics,” Bersin by Deloitte, 2013

10


Case in point: Reducing turnover in a large global pharmaceutical

company’s China operations using predictive analytics

Rank Variable Relationship with voluntary attrition Individuals

affected

1 Length of time in the

position

If an individual spends more than two years in a

position, the likelihood of voluntary attrition

increases considerably.

1,630

2 Marital status is single Individuals who have a marital status of “single”

have a higher likelihood of voluntary attrition.

2,363

3 Rehire status Individuals who were previously employed with

the company and were rehired have a higher

likelihood of voluntary attrition.

94

4 Low supervisor tenure Individuals with supervisors who have been with

the company for a shorter amount of time have a

higher likelihood of voluntary attrition.

1,058

5 Low performance/

bonus

Individuals who have lower performance ratings

and lower bonuses have a higher likelihood of

voluntary attrition.

907


11


Advancing maturity requires a long-term investment mindset

Level 2

Advanced reporting

Level 3

Advanced analytics

Level 4

Predictive analytics

Level 1

Operational reporting

Level of Effort

Level of Value

Choke point

Source: Bersin by Deloitte, 2014

12


Capabilities and analytics staff size increase with higher

levels of maturity

Level 1:

Operational

reporting

Level 2:

Advanced

reporting

Level 3:

Advanced

analytics

Level 4:

Predictive

analytics

• Knowledge of data

sources and systems

• Understanding of

stakeholder requests

• Ability to create

reports and access

data for requests

• Deep knowledge of

data sources and

systems

• Ability to create

customizable

reports and

dashboards

• Ability to draw

insights from trends

and benchmarks

Background in:

• Statistics

• Database

• IT/systems

• Consulting

• Telling the story

• Business

• HR

Background in:

• Advanced modeling

• Data visualization

• Statistics

• Database

• IT/systems

• Consulting

• Telling the story

• Business

• HR

Source: “High-Impact Talent Analytics: Staffing & Organizing Your Talent Analytics Function,” Bersin by Deloitte, 2014

An

aly

tics T

eam

Siz

e

Cri

tical C

ap

ab

ilit

ies

13


• 1 person

• Focus:

advanced HR

studies and

corporate HR

scorecard

• Goals from Chief

Human

Resources

Officer (CHRO)

• Audience:

CHRO

• 2 people

• Focus: same as

previous plus job

analysis,

competency

assessment, and

the organization

culture

• Goals from

CHRO

• Audience: CHRO

• 2 people

• Focus: same as

previous plus

global HR

scorecard,

workforce

forecasting, project

management, and

training

effectiveness

• Goals from CHRO

and HR staff

• Audience: mostly

HR, some

business and

functional leaders

• 1 person, plus 2

people in India

• Focus: same as

previous plus

talent acquisition

• Goals from CHRO,

business and

functional leaders


HR, some

business and

functional leaders

• 8 people, including

its own vice

president

• Focus: same as

previous plus

predictions,

scenario planning,

succession

planning, root-

cause analysis

• Goals from same

• Audience: same,

but down to

plant/facility level

• 14 people

• Focus: same as

previous plus

predictions and

scenario planning

• Goals from same

• Audience: same,

but down to


Case in point: A global manufacturer’s multiyear journey to

advanced analytics

14

Source: “Talent Analytics: A Multiyear Journey,” Bersin by Deloitte, 2014

Explore 10/

2006 Strategize 2007 Execute 2008 Operate 2009 Implement 2010 Impress 2011


• 1 person

• Focus:

advanced HR

studies and

corporate HR

scorecard

• Goals from Chief

Human

Resources

Officer (CHRO)

• Audience:

CHRO

• 2 people

• Focus: same as

previous plus job

analysis,

competency

assessment, and

the organization

culture

• Goals from

CHRO

• Audience: CHRO

• 2 people

• Focus: same as

previous plus

global HR

scorecard,

workforce

forecasting, project

management, and

training

effectiveness

• Goals from CHRO

and HR staff


HR, some

business and

functional leaders

• 1 person, plus 2

people in India

• Focus: same as

previous plus

talent acquisition

• Goals from CHRO,

business and

functional leaders


HR, some

business and

functional leaders

• 8 people, including

its own vice

president

• Focus: same as

previous plus

predictions,

scenario planning,

succession

planning, root-

cause analysis

• Goals from same

• Audience: same,

but down to


• 14 people

• Focus: same as

previous plus

predictions and

scenario planning

• Goals from same

• Audience: same,

but down to


Case in point: A global manufacturer’s multiyear journey to

advanced analytics

15

Source: “Talent Analytics: A Multiyear Journey,” Bersin by Deloitte, 2014

Explore 10/

2006 Strategize 2007 Execute 2008 Operate 2009 Implement 2010 Impress 2011


Partnering for analytics:

Support investments in new technology

In 2013, approximately one-third of organizations made analytics technology

investments


BUILT OR

IMPROVED

DATA

WAREHOUSES

31% PURCHASED

ANALYSIS

TOOLS OR

APPLICATIONS

33%

16



Support investments in additional talent

In 2013, approximately one-third of organizations dedicated staff to analytics

33% 31% Hired or transferred

staff for analytics

161,000+ data analyst jobs posted on Indeed

91,000+ data analyst jobs posted on Glassdoor – July 2, 2014


17



Create a stronger partnership with HR

Three approaches finance can take to support analytics maturity

Share finance approaches and knowledge

with HR professionals

Partner with HR to provide finance information

that ties HR efforts to business outcomes $$

Volunteer to be a pilot for future analytics

initiatives or projects

Source: Bersin by Deloitte, 2014

18

Q&A/Discussion


Stacia Garr

Vice President, Talent Management and Human Resources Research

Bersin by Deloitte


[email protected]

Tina Witney

Finance Transformation Practice Leader

Human Capital


[email protected]

Contact info

20

mailto:[email protected]

mailto:[email protected]

This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

About Deloitte As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2014 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

Appendix


Three factors to move from reporting to analytics

Implementing self-service reporting

Acquiring the right skills and

resources

Implementing a breakthrough

project

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