the role of hr in reinventing organisations: embracing people analytics

#wfas2016 @AndySpence

Andy Spence, HR Transformation Director, Glass Bead Consulting

The Role of HR in Reinventing Organisations: Embracing People Analytics

#wfas2016 @AndySpence

“Without data you are just another

person with an opinion”

W. Edwards Deming

“Without questions, you are just another

person with data”

THE SCIENTIFIC METHOD AS AN ONGOING PROCESS

MAKE OBSERVATIONS

DEVELOP TESTABLE PREDICTIONS

THINK OF INTERESTING QUESTIONS

FORMULATE HYPOTHESES

GATHER DATA TO TEST PREDICTIONS

DEVELOP GENERAL THEORIES

REFINE, ALTER, EXPAND, OR REJECT

HYPOTHESES

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1. What features will successful organisations have in the future? 2. What impact will this have on HR and People Management?3. What are the main opportunities of the Quantified Workplace?4. Why has HR struggled with transforming itself?5. What are the main challenges with our current HR Operating

models?6. What are challenges of People Analytics and how do we

overcome them?7. How can People Analytics help transform HR?

“Interesting” Questions ?

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REINVENTION OF ORGANISATIONS

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STRATEGY EATS EVERYTHING FOR LUNCH

STRATEGY CULTURE

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TECHNOLOGY IS EATING THE WORLD

TECHNOLOGY

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“Robot and Frank”

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“The majority of children born in rich countries today can expect to

live to more than a 100”

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Here are 25 million global freelancers to add to your

#talent pool. 9m @Upwork 16m @freelancer #GigEconomy

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37% of British workers think their jobs are meaningless

YouGov

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Cognitive Diversity

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“92 percent of companies believe that redesigning the organization is very

important or important, making it No. 1 in ranked importance.” Josh Bersin

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“Management 1.0 at its core is a mash-up of military command structures that

go back thousands of years layered with the discipline of industrial

engineering, which goes back maybe 120 years” Gary Hamel

MANAGEMENT 1.0

FormalisationStandardisationSpecialisationHierarchyUnity of commandConformanceExtrinsic rewards

MANAGEMENT 2.0

ExperimentationDisaggregationMeritocracyCommunitiesMarketsOpennessFreedom

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• Annual performance reviews • Employee Engagement Surveys• The Bonus • Change Management • Project Management• Command and Control• Best Practice• MBTI• Others ?

EVERYTHING MUST GO…?

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PRE SCIENCE

MODEL CRISIS

NORMAL SCIENCE

MODEL DRFITMODEL

REVOLUTION

PARADIGM CHANGE

THE KUHN CYCLE

Are we in a “Model Crisis” ?

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HR and People Analytics need to be involved in all of these

• Challenge existing frameworks, assumptions and ways of working• Evolve their strategy and business models• Have a broad “work” strategy and plan• Will use insights from behavioural science• Adopt better management & organisation structures

Successful organisations in the future?

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THE QUANTIFIED WORKPLACE

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Your Virtual Workplace ?

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Co-occurence -> people who “say X also say Y” in employee feedback

from Workometry

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Who will lead change in your organisation?

Identifying influential employees @TrustSphere

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DIGITAL TAYLORISM

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HR TRANSFORMATION

25%

5

70% 40%

40%

20%

*Percentage are for illustrative purposes only

% = RESOURCES

HR TRANSFORMATION

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HR Operating Model

TECHNOLOGY EMPLOYEES

HR Strategy

Business Partners

Centres of expertise

Vendor Management

People Analytics

Programme Management

HR Service Centres

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Has the amount of time spent by HR as a Strategic Partner increased

OR decreased since 1995?

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Critique of current HR Operating Models

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"I did not create it, but observed, researched and wrote about it“

Ulrich on the HR Ulrich Model

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HR Transformation – Lessons Learnt

1. Ignore Best Practice -> Do your own Organisation Design from first principles

2. Look at future trends to make sure model is “fit for the future”3. Don’t start with the end state in mind – start the journey with

the right questions 4. HR need to be workforce “Technology Champions”5. Watch out for Silo’s in delivering HR Strategy6. Design thinking – think of managers perspective 7. Don't transform stuff that should not be done at all HT #Drucker

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Some challenges HR Analytics needs to overcome…

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We prefer “gut feelings” to make people-based decisions

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The Peak of inflated expectations

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HR does not need Big Data, or Big Pants,

It needs BIG QUESTIONS

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We need the right TOOLS for the job

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Low confidence in the underlying frameworks

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What causes employee productivity ?

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Challenges with HR Analytics

Challenge Possible solutions ?

1 We prefer “gut feelings” to make people-based decisions Find the middle ground

2 The Peak of Inflated Expectations Set realistic expectations

3 HR doesn’t need big data, it needs big questions Cast your net widely, coach HR on hypothesis testing

4 HR Systems, Data quality and scope of People Analytics tools

Keep sharing requirements with technology vendors

5 No confidence in the underlying frameworks Collaborate with academia and peers in other organisations

6 Show me the Money All paths lead to productivity

7 Structural issues with HR Operating Models Use data and evidence to work out which practices work best

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HOW HR ANALYTICS CAN TRANSFORM HR AND ORGANISATIONS

HR

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1. Challenge existing frameworks, assumptions and ways of working

2. Look at future trends to make sure model is “fit for the future”3. Sort out the foundations before relying on the “sensors”4. Cast the net widely on questions and test hypotheses5. Continue to develop employee Trust, particularly with new

Technology 6. Ignore Best Practice -> Do your own Organisation Design from

first principles7. Don’t start with the end state in mind – start the journey with

the right questions 8. Become workforce “Technology Champions”

HOW HR CAN REINVENT ORGANISATIONS BY EMBRACING PEOPLE ANALYTICS ?

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HR

@AndySpenceAndy@GlassbeadConsulting.com+44 (0) 1273 888 188www.GlassBeadConsulting.com/hr-transformer-blog

Let’s continue the discussions…