nationwide insurance adopts analytics as part of its talent management strategy

2

S14518 – Nationwide Insurance Adopts Analytics as Part of Talent Management Strategy

Ling Xiang – HR Analytics Product Manager Les Vandermark –Nationwide HRIT Solution Architect

3

Program Agenda

•  Oracle HR Analytics Overview

•  Oracle HR Analytics Roadmap

•  Oracle BI Application in Fusion

•  Nationwide HR Analytics Project

•  Q&A

4

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.

The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statements

5

Oracle’s BI and EPM Today Comprehensive, Open, and Integrated

OLTP & ODS Systems

Data Warehouses Data Marts

Packaged Applications

(Oracle, SAP, Others) Excel

XML/Office Business

Processes OLAP Sources

Exadata Unstructured & Semi-

Structured

ERP Analytics

Planning & Forecasting

Financial Close & Reporting

Strategy Management Profitability Management

CRM Analytics

Industry Analytics

BI Server

Common Enterprise Information Model

Essbase Dimension Management Predictive Analytics

Interactive Dashboards Reporting & Publishing Query & Analysis Detect & Alert Office Search Embedded Mobile Scorecards

Dat

a So

urce

s B

I/EPM

Pl

atfo

rm

BI /

EPM

A

pps

6

Oracle BI Applications Analysis Spanning Heterogeneous Sources in a Conformed Model

CRM ANALYTICS

ERP ANALYTICS

ORACLE BI FOUNDATION

Sales Marketing

Service and Contact Center

Price

Loyalty

Financials Procurement and Spend

Supply Chain & Order

Management

Projects Human Resources

Customer Data Management*

Product Information

Management*

AND OTHER OPERATIONAL AND ANALYTIC SOURCES * New for Fusion Applications

7

Customers

Suppliers

Projects

Product Information Management

Financials

Supply Chain & Order Management

Procurement and Spend

Human Resources

Back Office Front Office

Service and Contact Center

Loyalty

Price

Customer Data Management

Marketing

Sales

Impact of product mix and discounts on revenue and

margins

Correlation between training & compensation and worker productivity

Visibility into supply chain enabling delivery of the

perfect order Complete visibility across

value chain to better manage supply and demand fluctuations

Alignment across the Enterprise Integrated Best Practice Analytics

Employees

8

Oracle Human Resource Analytics Prepackaged HR Analytics

Role-Based Dashboard

Workforce Performance •  Compliance Workforce Performance •  Compliance

Pay for Performance •  Compensation Trend Pay for Performance •  Compensation Trend

Employee Performance Demographics Trend •  Employee Performance

Retention Hotspot •  Employee Performance •  Learning Development Employee Performance •  Learning Development

HR Performance Operations Compensation

Recruitment Learning Leave & Absence

Finance Managers •  Headcount budget •  Workforce Cost •  Absences Cost

Recruiting Mgr •  Vacancy Analysis •  Quality of Hire •  Recruitment Cost

9

What’s in Human Resources Analytics

•  Retention – •  Overview

Retention HotspotsTop PerformersTrends

Absence – •  Overview

Absence TrendsAbsence DetailsAbsence Calendar

Compensation – • 

Compensation AnalysisTrendsPay for Performance

US Statutory Compliance • 

–  EEO ComplianceEEO AuditVETS 100

•  No. of dashboards 9 • •  No. of dashboard pages 47

No. of dashboards 9 • No. of dashboard pages 47 • 

•  Recruitment – •  Overview

RequisitionsVacancy AnalysisRecruitment PipelineOffer AnalysisNew HiresApplicant PoolQuality of HireRecruiter EffectivenessRequisition Recruitment

– ActivitiesRecruitment Event DetailsCandidate Sourcing

Learning – •  Overview

Manage EnrollmentsTraining Results

– –  Training ResultsDelivered Training

•  Human Resource Performance • –  Human Resource Performance Corporate Contribution–  Effectiveness–  Trends

•  •  Workforce Profile –  –  Demographics–  Trends

•  •  Workforce Development – 

Supervisor–  Employee Performance–  Supervisor Performance–  Internal Mobility–  Top Performers–  Under Performers

10 10

HR Analytics Components 1 Pre-built warehouse with 5 star-schemas

designed for analysis and reporting on HR data

3 Pre-mapped metadata, defining real-time access to analytical and operational sources, embedded best practice metrics for the HCM practitioner

2 Pre-built ETL to extract data from over 3,000 operational tables and load it into the DW, sourced from HCM systems and other sources

4 A “best practice” library of over 230 role-based dashboards, reports and alerts for HR Managers. Analysts and Business Executives

model

•  Physical sources

Workforce Profile Payroll Absence

Recruitment Learning

11 11

Analytic Workflows – Human Resources Analytics

Drill to D

etail Business

Objectives/ Issues

Gain Insights

Take Action Proactively Manage

At-Risk Top Performers

Why are people leaving?

Is voluntary turnover increasing?

Ensure human capital leveraged properly

Is turnover within manageable limits?

Which groups are Affected?

12

Leverage OBIEE 11g Mobile Analytics

•  Available with Oracle Business Intelligence Enterprise Edition (OBIEE) 11g

•  Zero deployment effort •  Entire BI catalog can be accessed

on the mobile device

13


Entire Catalog Available for

Mobile BI

14


15


7.9.6.1

HR Analytics Roadmap

7.9.6 • Certify PSFT 9.1 • Certify EBS 12.1.2

•  Fusion v1 Adaptor •  Uptake OBIEE 11g

• Benefits • Talent Manage-ment

7.9.5 11g PS1 11g PS2

Fusion Applications

11gR1

• One code line for Fusion, PSFT, EBS & Siebel

• Dual INFA & ODI Support

• Certify PSFT 8.9 & 9.0

• New architecture • Major content enhancement • PSFT 8.9, 9.0 • EBS 11i10, r12

2008 2009 2010

This roadmap is not a commitment to product delivery and is subject to change without notice and can not be written into any contract.

7.8.x

2006

• Branded Oracle BI Apps

7.9.6.2 7.9.6.3

•  Certify OBIA w/h OBIEE 11g

HR Analytics 2-Year Development Plan •  New Subject Areas to be Added:

•  Time & Labor Analytics •  Benefits Analytics •  Talent Management (performance mgt, competencies, succession

planning) •  Surveys and Benchmark

•  Cross-Functional Analytical content – align Fin/HR Analytics for better cost & budget analysis

•  Essbase Integration – Leverage OBIEE and Essbase with HR Analytics data store for better workforce planning

1.  Add insight layer over existing IT assets •  Use prebuilt BI Apps to implement

quickly and follow best practices •  Start with a single area or tackle

several in parallel •  Also build custom analytic apps as

necessary

Oracle BI Applications Implementation Strategy Insight for Today’s Applications and for Fusion

Oracle BI Applications

Oracle EBS HR

PeopleSoft HCM

Oracle Financials

Other Apps

2.  Benefit from enterprise-wide analysis as you broaden your

implementation

Oracle Fusion Applications

3.  Incorporate Fusion Apps using same architecture and

technology

Fusion Coexistence

OBIA Data Warehouse

BI Common Semantic Model

ETL

OBIA

Pre-Packaged Reports &

Dashboards

Customer Reports &

Dashboards

PSFT HR

Other Sources

Before Fusion

•  Get faster time to value with prebuilt

adapters for CRM and ERP applications •  Gain visibility to

employee performance and

internal mobility to engage and develop

key talents • Lower costs through reduced turnover and

more targeted recruiting • Optimize

compensation plans to meet goals while

managing costs

OTBI

Fusion Embedded Analytics

Fusion Talent Management

Real Time

Query

With Fusion •  Embed analytics directly into key

business processes •  Deliver real-time

and analytical reporting in a single

user interface •  Provide new

analytical reporting content for Payroll, Leave Accrual and

Headcount Gain/Loss •  Tightly integrated with Oracle’s next-generation Fusion

Human Capital Management system

BI View Objects EBS HR

CTO Enterprise Applica.ons

Les Vandermark – HR IT Solu;on Architect

Na;onwide Insurance Adopts Analy;cs as Part of Its Talent Management Strategy


10/6/11

Na;onwide HR Analy;cs

Agenda

10/6/11 21

§  Company Overview §  Talent Management Program & HR Analy.cs §  Project Overview §  Business Benefits §  Lessons Learned §  Roadmap


10/6/11


Company Overview

10/6/11 22

Founded in 1926 as a mutual company to serve the needs of our customers §  No. 1 provider of public-sector retirement plans §  No. 1 writer of farm owner insurance §  4th largest excess and surplus lines insurer §  6th largest auto insurer in the United States §  7th largest homeowner insurer in the United States §  9th largest variable annuities provider §  127 on the Fortune 500 list §  33,000 employees, largely salaried workforce based in North America §  Home office, Columbus OH

We help our customers do together what they cannot do alone, and we keep this commitment through capital strength and financial stability


10/6/11


Talent Management Program & HR Analy;cs

§  Talent Management Program Ini.ated in 2009 §  Create predictable & consistent processes enabled by a talent management system §  Replace outdated TM applica.ons with one solu.on that enables access to cri.cal

talent data §  Analy.cs/BI not in the ini.al scope of the program §  Plan to handle with low tech solu.on outside of the TM program

§  Selected niche SaaS Talent Management System §  Integra.on & func.onal challenges §  System performance concerns §  Large development & ongoing integra.on cost

§  New IT Leadership (Strategy) + Challenges = New Direc.on §  Implement PeopleSoR 9.1 for Talent Management §  Inclusion of HR Analy.cs in the program scope

10/6/11 23


10/6/11


Talent Management Program & HR Analy;cs

10/6/11 24

Guiding Principals

We value enterprise consistency of process over business unit uniqueness

We value the configuration of package solutions over the development of customizations

We value breadth of integration over depth of functionality

We value insights from analytics over efficiency of transactions

We value in-sourcing of critical skills over outsourcing

* Based on the understanding that Enterprise Applications are critical but not differentiating


10/6/11


Program/Project Overview – Ini;al Timeline

10/6/11 25

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011

A M J J A S O N D J F M A M J J A S O N D

HCM v9.1 Upgrade

PeopleSoft v9.1 Talent Management Initiatives

Profile Management

Recruiting Solutions

Succession Planning

Compensation

Performance and Development

HR Analytics


10/6/11


Program/Project Overview – Original Scope

10/6/11 26

§  Analy.cs Goals §  Deliver Analy.cs first à Forces TM business decisions based on integra.on §  Implement Workforce Profile subject area §  Replace current manual repor.ng process

§ Monthly, Excel based, 4 – 5 FTE over 15 work days §  Implement other subject areas with components of Talent Management

§  i.e. Recrui.ng & Compensa.on § Con.nue to implement new content delivered from Oracle


10/6/11


Program/Project Overview – Actual Scope

10/6/11 27

BI

Strategic HCM - TM

Workforce Mgmt

Service Delivery

Core HRMS

Data Governance

Organization Hierarchy (Define, Convert, Maintain)

Position Mgmt Leader Name

Position Change Mgr Self Service

Org Hierarchy Usage

Leader Name

Leader Level

Quick terms, starts, DNS

Posi

tion

Cle

an U

pPo

sitio

n D

eact

ivat

ion

Posi

tion

Audi

t

Org

/Rep

orts

To

Alig

nmen

t


10/6/11


Program/Project Overview – Actual Scope

10/6/11 28

§  Organiza.on Hierarchy §  Defined – 3600 plus departments/nodes (PS department table/tree) §  Converted – 1 Million plus PS_JOB rows (History back to 12/31/2007) §  Maintain – Business processes & ongoing data governance processes

§  Posi.on clean up §  Inac.vated 80,000 plus posi.ons §  Business process changes and audi.ng to keep clean

§  Customiza.ons to HR Analy.cs §  Leader Level – Data clean up/governance issue §  Leader Name – Organiza.on hierarchy change management §  Quick Terms/Did Not Starts

§  7.9.6.2 Upgrade §  Lessen risk for other subject areas


10/6/11


Program/Project Overview – Revised Timeline

10/6/11 29

HCM v9.1 Upgrade

PeopleSoft v9.1 Talent Management Initiatives

Profile Mgmt

Recruiting Solutions

Succession Planning

Compensation

Performance and Development

Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011

A M J J A S O N D J F M A M J J A S O N D

HR Analytics (Data Governance & Clean Up)

2012


10/6/11


Project Perspec;ve -‐ Lessons Learned

10/6/11 30

Perspective Initial Thoughts

•  Our data is a mess, no organization structure •  How are we going to explain to our sponsors •  We need data governance

Reality •  Our data is a mess, problems we didn’t know about •  Data clean up and governance took too long to implement •  Learning for many users must be “hands on” •  Focused too much on the current manual dashboards •  Less customization visibility than other TM modules

Technical View

•  No real issues with the product •  HR Analytics is a packaged application •  Need implementation partner with experience with BI apps •  Have dedicated technical resources •  Train before the project starts

Revisions •  Increasing the budget, timeline •  Successfully implemented July 2011


10/6/11


Lessons Learned

§  Learning Curve/Cultural ShiR §  Understanding and accep.ng the data §  May be uncomfortable with the data and the story it tells §  Need a strong data person to tell the story

§  To gain credibility, data accuracy must be built into processes §  We are changing business processes to insure accurate data

§  Don’t underes.mate the amount of work to clean up §  And keep accurate going forward

§  Clear roles & responsibili.es §  Who owns processes, data, system, etc.


10/6/11


Business Benefits

10/6/11 32

§  Efficiencies §  Eliminated 4000 hours/year to produce manual Excel reports §  Reports available first day of the month versus 15th work day

§  Integra.on/Technology Value Proposi.on §  HCRM team is now focusing on strategic ini.a.ves

§  Workforce Analy.cs §  HR Performance Scorecards §  Strategic Workforce Planning

§  Providing views of data never before available (e.g. historical trends, drill-‐down capability, turnover by leader level)

§  Business Process Improvement §  Correc.ng problema.c processes §  Reinforcing data governance


10/6/11


Business Benefits – Moving Forward

§  Today: Much of HR Planning is done by Finance à What can we afford? §  Strategic Workforce Planning

§  Predic.ng and forecas.ng the future based on trend analysis §  Model workforce demand §  Develop HR gap closure plans and interven.ons

§  Supply Side §  Who is our workforce today, who is going to leave and why?

§  Demand Side §  Forecast/model based on workloads & Strategy (pay bands, skills, geography, etc.)

§  Results of planning: Gap closure plans and HR interven.ons: §  Planned moves (hires, transfers, promo.ons, exits, etc.) §  Engagement strategies (e.g. cross-‐func.onal moves) §  Compensa.on, learning and development planning §  Integrated planning that aligns the people strategy to the business strategy and financial budget

10/6/11 33


10/6/11


BI Roadmap

10/6/11 34

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

O N D J F M A M J J A S O N D J F M A M J

Recruitment

Compensation

HR Analytics Upgrade

Workforce Profile Phase II


10/6/11

Na;onwide HR Analy;cs 10/6/11 35

Thank You Les Vandermark

[email protected]

•  Analyze intra-period financial data by department or role •  Maximize efficiency of

collections

Financial Analytics

•  Control cost before they impact profitability

•  Identify at risk projects and initiate corrective actions

Project Analytics

•  Increase visibility into direct and indirect spend

•  Optimize supplier selection and performance

Procurement & Spend Analytics

Alignment Across Functions Optimize profitability and operational

efficiencies

•  Visibility into supply/demand to better manage inventory •  Accelerate order to cash

process

SCM & OM Analytics

•  Analyze workforce performance

•  Reduce cost of compliance reporting

HR Analytics

•  Deliver accurate and consistent product

information •  .Identify gaps and data

quality issues *PIM Analytics

* New for Fusion Applications

Unlocking Back Office Business Insights through BI

Delivering Front Office Business Insights with BI

Alignment Across Functions Optimize customer relationships across

all business processes

•  Optimize staffing for call volumes

•  Monitor CSR performance & drivers

•  Improve customer service •  Drive efficiency, lower costs

•  Enhance partner channel visibility and coordination

•  Increase customer retention and promotion effectiveness.

Contact Center Analytics

Service Analytics

Partner Analytics

Loyalty Analytics

•  Improve pipeline visibility •  Quickly spot opportunities /

threats

•  Discover high potential segments

•  Maximize return on spend

•  Identify customer data gaps •  Optimize customer reach

•  Reduce revenue leakage from Opportunity to Quote to

Order

Marketing Analytics

Sales Analytics

*Customer DM Analytics

Price Analytics

* New for Fusion Applications