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© 2014 IBM Corporation

The Power is in the Hands of Human

Resources

Luis Aguilar Cantarino - Smarter Workforce

© 2014 IBM Corporation2

IBM Smarter Workforce

of CEOs surveyed cited human capital as their greatest source of sustained economic value

71%Source: IBM Institute of Business Value CEO Study



CEO concerns: business is changing, creating workforce challenges in a customer-activated world

Rethink the critical talent

needed to support the customer-activated

enterprise

Identify pivotal roles that create unique physical and digital customer experiences within your industry

Build the need for greater customer interaction into HR programs and development efforts

Develop a deeper understanding of employee engagement and what motivates individuals in customer-facing roles

Use analytics to enhance customer

value

Apply workforce analytics to better source, allocate and develop employees that deliver customer experiences

Foster a culture that drives analytics-based decision making

Make it easier for line managers to access and act upon workforce insights

Address emerging digital challenges

Determine impact of mobile technologies on work design and flexibility

Developing guidelines for managing digital reputation

Collaborate with internal and external parties

Source: IBM Institute of Business Value CEO Study



CEOs are not turning to CHROs for strategic guidance

Involvement in organization’s business strategy according to the CEO

Source: Question CEO2–Which senior executives are involved in formulating the organization’s business strategy?; n=701 CEOs

CFO CMO CIO CSCO CHROCEO/SPL

96%

72%

63%

42%

37%35%



For CHROs, Collaboration and rapid skill development as an increasing focus over the next three to five years

Percentage change in importance of workforce challenges: today vs. 3–5 years

Source: CHRO1-How important is it for your organization to address the following workforce challenges today and in next 3 to 5 years?; n=320 [CHRO only]

Employeeengagementandcommitment

Talentretention

Workforce productivity

Talentdevelopment

Sourcingand recruiting

Performancemanagementevaluation

Collaborationandknowledgesharing

Talent management

Rapiddevelopmentof workforceskills

68%

55% 54%

44%

35% 32%

22%

14% 12%



While Talent development and employee engagement are today on CHROs’ radar…

Importance of workforce challenges today

Employeeengagementandcommitment

Talentretention


Talentdevelopment

Sourcingand recruiting

Performancemanagementevaluation

Collaborationandknowledgesharing

Talent management

Rapiddevelopmentof workforceskills

87%

80%

68% 65%60% 60% 58% 57% 55%

Source: CHRO1-How important is it for your organization to address the following workforce challenges today and in next 3 to 5 years?; n=320 [CHRO only]



Half of organizations are tackling workforce analytics

Source: Question CHRO3–Which statement best describes your enterprise’s use of analytics within each of these human capital areas?; n=321 [CHRO only]; numbers may not sum to 100 percent due to rounding

Use of analytics today


Sourcing and recruiting

Talent retention

Performance management evaluation

Employee engagement and commitment 9%29%13% 50%

8%48%36%9%

12% 13%40%35%

35%16% 34% 16%

38% 7%39%16%

Do not use Produce reports Historical trends and patterns

Predict future outcomes



Smarter Workforce Areas

How can I attract and hire more people

just like my top performers?

How do I foster knowledge sharing and collaboration to

drive more innovation?

How do I develop the next generation of

leaders for a more global, flexible, and diverse

workforce?

How can I rapidly develop, deploy and optimize

skills and capabilities to match emerging opportunities?

How do I know if I’m recognizing and

rewarding my employees optimally?

How can I predict what different segments of my

employees need and what actions to take to optimize business

outcomes?

How do I find real-time, hidden, game-

changing insights from data available inside and outside my

organization?

How can I bring people into the organization so

they’re productive from Day 1?

How do I gain continuous insight

into what my employees think of

the organization?

How do I know salary planning is aligned with our business

strategy?



Talent Analytics

Advanced analytics capitalizes on data-integration and advanced research (including cognitive computing) that allows interventions to be developed that maximise workforce capabilities and business results

Descriptive reporting and analytics provides historical visibility into process efficiency and workforce performance within a talent practice or solution

Integrated reporting enables data based insights from trends and relationships across different people solutions that define probabilities of what might happen

1

3

4

Descriptive (by solution

)

Integrated Reporting

(Dashboard)

Predictive

Prescriptive

UNIT LEVEL cash Flow -9 %

UNIT LEVEL cash Flow +1 8 %


CONCESSION productivity$ 1 3 0


CONCESSION productivity$ 1 5 0

BEFORE

CREW engagement

5 8 %

CREW engagement

NOW 7 0 %

l t m g r o s s /s c r e e n c h a n g e v s . a p r i l ’1 1 b a s e l in e

12%

10%

8%

6%

4%

2%

1000

800

600

400

200

900

700

500

300

100

6/2/11 9/2/11 12/2/11 3/2/12

diff bps

20-mi proximal competitors

AMC



Are you prepared for success?

1. What are the key metrics the clients CEO or operators looking at on a daily basis (other than sales/profit)?

2. What is the most critical job family that impacts the numbers behind the key metric?

3. Who are the top people within that job family?

4. How do you attract the very best people for those jobs?

5. What motivates or demotivates your best talent?

6. What tools and technology do you need to empower your workforce and replicate success?

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