executive health system: performance management for the ... · four barriers to strategy...

Copyright © 2006, SAS Institute. Tutti i diritti riservati.

Executive Health System: Performance Management for the Planning of Human Resources and Health Expenses Policies

Pietro Betto – BD Manager HR Applications SAS Italy

Stockholm, May 23th 2007


Agenda

The new directions for the Corporate Strategy

HR Performance Management

Regione Umbria project

Application Areas for Public Sector


(*) October 2005, James Holincheck “Exploit the next generation of Workforce Analytics to Manage Human Capital”Gartner

Next-generation workforce analytics will help companies gain more insight into how they derive business value from human capital…

..however, HR organizations will be challenged to build and implement new skills and use tools and techniques to be successful.(*)

Analysts continue to stress the importance of using existing Analysts continue to stress the importance of using existing transactional data to measure the impact of initiatives transactional data to measure the impact of initiatives


Human Capital Management - Strategy

Manage HR as an asset by itself

Manage HC contribution • Performance Management

• Profitability, Revenues

• Shareholder value

Corporate

StrategyHCM

Strategy


Four Barriers to Strategy Implementation

Only 5% of the workforce understands the strategy

60% of organizations don’t link budgets to strategy

Only 25% of managers have incentives linked to strategy

85% of executive teams spend less than one hour per

month discussing strategy

9 companies out of 10 fail to execute

strategy

The People Barrier

The Vision Barrier

The Management Barrier

The Resource Barrier

Source: The Balanced Scorecard Collaborative


Human Capital Intelligence

Unique Vision of Human Resources Management


SAS for Performance ManagementHuman Capital Intelligence


Anticipate, predict and forecast workforce changes

Analyze trends while they are still current

Deploy and leverage human capital using objective evidence

Design human capital strategies which increase the shareholder value

Why use B.I.? Why Human Capital Intelligence?


Questions Answered with Information

How many employees were hired last year?

How many employees are nearing retirement age?

How many absences took place last year? Last quarter? Last week?

Lists of employees by organizational hierarchy.

How many employees were “Top Performers”?


Questions Answered with IntelligenceAre merit increases and bonuses having a direct impact on performance and employee satisfaction?

Which are the competencies within my organization and how do I build upon those competencies to succeed in the future?

For which reasons do the employees leave?

Would it be less expensive to incent some of those employees to stay on? Or encourage them to retire sooner?

Which reasons have the most statistical significance to why employees leave?

What is the risk to the organization if employees leave?

Are the “Top Performers” leaving?


Questions Answered through Predictability

Which employees are likely to retire in the next 5 years?

Which skill sets will need to be replaced?

Which employees are at the highest risk of voluntarily leaving the organization?

What is the profile of employees most likely to leave?

What is the profile of employees having a higher than average rate of absenteeism?

What will be my salary budget for next year, including leavers, new hires and promotions?


Why it is difficult to obtain Intelligence Challenges?

“Input driven” ≠ “Output focused”

Technology Infrastructure

Inadequate human capital strategies

Measurement


Skill Analysis

HR Analytics Intelligence

Predictive ModelsWhat-IfForecasting

KPIHR ScorecardMBO

HR BenchMarking

HCMIntelligence

Access DBHR Access Oracle SAP Meta4 PeopleSoft

CLEANING, TRANSFORMATION, EXTRACTION & LOADING

DataWarehouse


Intelligent Reporting on Human Capital

Predictive modeling

Indicator A

Indicator A

Indicator C

HCM Key Performance Indicators

The Human Capital Intelligence offer…


Regione Umbria

Superficie 8.456 kmq

Popolazione 867.878

2 Province


Sistema Sanitario Regione Umbria

• 4 Aziende Usl• 2 Aziende Ospedaliere • 22 Strutture di ricovero• 800 Medici di medicina generale• 11,000 dipendenti

Azienda USL 1

Azienda USL 2Azienda USL 3

Azienda USL 4

Azienda Ospedaliera di Terni

Azienda Ospedaliera di Perugia


Executive health systemCreate health regional data warehouse with certifieddata

Based on common data used by different regionalstructures (eg. data on hospitals, patients, doctors, nurses)

Based on a single data base to support different kindof analysis (admissions to hospital, drugs use and prescriptions, specialistic medical services) and different sw tools (static report, olap report, …)

Manage historical information on detailed data

Build sw components able to switch from a sinteticalrepresentation to a detailed one

Support periphery in sending data

Copyright © 2006, SAS Institute. Tutti i diritti riservati.Estrattori

Architecture

Controlli e

Om

ogeneizzazione

FlussiRegionali

Anagrafiche

Data Warehouse II Livello

Analisi

FASE E FASE T FASE L

Data Warehouse I Livello

Risorse UmaneRisorse Umane

FF33

AppropriatezzaAppropriatezza

FarmaceuticaFarmaceutica

SpecialisticaSpecialistica

OspedalieraOspedaliera

……


The HCM Projects: RequirementsStrategic control of data

Systematic organization of data

Data analysis creation of information

Creation of the internal information network information circulation communication

SUPPORT SYSTEM FOR STRATEGIC DECISIONS

Creation of updated and complete data basesIndicators for the monitoring of the employee management policiesReports at multiple levels


SAS Choice

Short project times and limited workgroup

Skills and metodology specific for the HR area

Product oriented on DW tasks

Integration of multiple data sources

Friendly WEB interface


Project Goals

Clean snapshot about the usage status of human resources within the healthenvironment

Simulations based on new decisionassumptions.

Quick highlighting of critical aspects and search for adequate answers.


For example

OrganizationOrganization and personal dataand personal dataHistorical dimensional trendBenchmarking between departmentsEvents (promotions, career plan, hiring, termination, etc.)

CostsCostsBudget analysis and benchmark

TFR analysis and impact about retirements

Funds distributions for contracts


For example

WhatWhat –– IFIFIf increase RAL or change organization.

Impact analysis in real time

AbsencesAbsences analysisanalysisFor reasons and for activities

Abscence trend for job descrption

….


Benefits

Data managementAnalysis system

Informations

Benchmark between Departments

Datawarehouse

Resources control

Costs analysis

Speed delivery


Agenda

The new directions for the Corporate Strategy

HR Performance Management

Regione Umbria project

Application Areas for Public Sector


Human Capital Intelligence: Some Application Areas

Career Paths

Predictive Analyses

Simulations and What-If Scenarios

Employee Browser

HR Scorecard

Solutions involved: SAS® Human Capital Management


WorkforceWorkforce analysisanalysis

Hiring / Terminations

Acquisition processes

Transfers / Grade increases

How many employees were in the company on dd/mm/yyyy?


Career Career pathspaths

Minimal seniority in position is?

Minimal educational requirements are?

How many changes in position will we have in the next years? And who will be interested?


Career Career pathpath


PredictivePredictive Model Model forfor retirementsretirements

Retirement regulations (05-01-1998)

Age, years of service and redemptions

Forecast window: 3 years

Considered impact of Dini’s law for 2008

How many likely retired people will we have in our company during the next years?


RetirementsRetirements ForecastForecast


SkillSkill AssessmentAssessment

Web Interface for a quick and efficient survey

How does the technical/administrative staff assess his/her skills?

Are the results comparable to the assessmentof their managers?

How to boost the skills and how to optimize the employee performance?


Skill Analysis: Self-assessment


Skill Analysis: Assessment


WhatWhat--IfIf

New Salary policy

New Organization

Career & succession plan

What happens if …


What-if Analysis: New Salary Policies


Organizational Simulation


HR Performance ManagementHR Performance Management

Compensation Tool

Skill Evaluation

Career & succession plan

How well are my employees performing? And howmuch do they cost?


One of the needs of a HR director is to have a feedback mechanism in order to optimize the investments on the human capital.

This is due to the fact that the human capital is one of the main assets of the company, both from a strategical and economic point of view.

The extent of a strategy gives value to the strategy itself

ScorecardScorecard and KPI and KPI forfor the the HumanHuman CapitalCapital

executive health system: performance management for the ... · four barriers to strategy...

Documents