Vlerick HRday 2013: Performance Management. Prof. Koen Dewettinck
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- 1.VLERICK HR DAY!HR PRACTITIONERS MEET HR ACADEMY12 JUNE 2013Welcome in the trackPerformance management!
2. HR ANALYTICS:BREAKING THROUGH THE WALLHR DAYJUNE 12 2013PROF DR KOEN DEWETTINCK 3. HR ANALYTICS: BREAKING THROUGH THE WALL WHY WHAT HOW CURRENT STATUS IN BELGIUM 4. Vlerick Business SchoolWHy 5. Vlerick Business SchoolTIME FOR CHANGE Global Economic Crisis Need for justification HR ill prepared Characteristics of Human Capital Important asset Large costOrganizations have not applied the same rigor to understand thiscritical asset. Compared to functions such as finance and supplychain management, HR has not had a traditional depth ofexperience in making fact-based decisions. 6. Vlerick Business SchoolCHARACTERISTICS OF HUMAN CAPITAL8%13%15%19%22%25%28%30%33%43%52%66%71%Acces to raw materialsCorporate social responsibilityAssets (physical)Price/revenu innovationR&D, intellectual propertyData access, data-drivenPartnership networksTechnologyBusiness model innovationBrand(s)Products/services innovationCustomer relationshipsHuman capitalFactors in Maintaining Competitive advantageLeading Through Connections, IBM 2012 CEO Study 7. Vlerick Business SchoolIn God we trust,all others must bring data.W. Edwards Demming 8. Vlerick Business SchoolCURRENT MEASURES80%77%66%56%56%51%37%34%20%HRISBenchmark DataCost EfficiencyImpact on WorkforceTrack Outsourced ActivitiesCost of ServicesDash Board/ScorecardBusiness ImpactCost/BenefitHR Measures Available in OrganizationsCentre for Effective Organizations Survey% Yes on a Yes/No Scale 9. Vlerick Business SchoolWHat 10. Vlerick Business SchoolHR ANALYTICS: BREAKING THROUGH THE WALLTrue strategic value comes from metrics that go beyond themeasurement of typical task-based activities and combine HR data withother business data.AsselmanShowing the actual cause-effect relationship among what you do andbusiness outcomes and building a strategy based on that informationmakes HR analytics a reality.MondoreGetting the numbers right is just the beginning. Value is added whenmeasures and analysis are combined with the logic to know where tolook for the important connections. A story is better than a number!Boudreau10 11. Vlerick Business SchoolHR ANALYTICS11EfficiencyEffectivenessImpactResourcesEffect on talentpoolsEffect on strategicsuccess 12. Vlerick Business School?HITTING THE WALL IN HR MEASUREMENT12ValueAd hoc HRmeasuresBenchmarksDatasystemsandportalsScorecardsand drill-downs BusinessImpact Causation Leadingindicators Multipledatasources 13. Vlerick Business SchoolHOW 14. Vlerick Business SchoolCURRENT ISSUES Excess of data Lack of expertise Internal view Process data Everything measured equals reality Prediction of a certain future Bread spread approach 15. Vlerick Business SchoolLIGHTNING THE LAMPBeyond HR, Boudreau & Ramstad, 2007The Right AnalyticsValid Questions andResultsThe RightMeasuresSufficient DataThe Right ProcessEffective KnowledgeManagementThe Right LogicRational TalentStrategyHR Metrics andAnalytics: a force forstrategic change 16. Vlerick Business SchoolLOOK INTO THE MIRROR 17. Vlerick Business SchoolHR ANALYTICS CYCLE1. DetermineCriticalOutcomes2. CreateCross-functional DataTeam3. AssessOutcomeMeasures4. AnalyseData5. Build,Program &Execute6. Measure &AdjustBeyond HR, Boudreau & Ramstad, 2007 18. Vlerick Business SchoolCASE: GOOGLEWay to succesAll people decisions at Google are based on dataAnalytics as separate unitPoints of contact for other units of HRTake HR seriously!HR must speak language of data 19. Vlerick Business SchoolCASE GOOGLE: ANALYTICS VALUE CHAINOpinion:Gut feelingbased onexperienceData:Structuredinformation,but rawMetrics:Ratio countsAnalysis:Drawcorrelationsand showrelationshipsInsight:Leads toaction, anddecisionmakingAction:Process orpolicychangeGoogle figure: googles analytics value chain 20. Vlerick Business School1. PROJECT OXYGEN: DO MANAGERS MATTER? Performancereviews EmployeesurveysAvailabledata One cluster Cut data intobottom and top Big differencesChart Great manageraward Double blindinterviewsQualitativestudies 21. Vlerick Business School1. PROJECT OXYGEN: DO MANAGERS MATTER?3pitfalls8waystosuccess- Coach- Empower- Express concern- Be productive- Communicate- Develop careers- Have a vision- Have technical skills- Tough Transition- No consistent approach- Too little communication 22. Vlerick Business School1. PROJECT OXYGEN: HITTING THE WALLManagersdont impactgooglerperformance1000s ofpeoplemanagersFavorablerating ofmanagersGoodmanagershave a betterperformingteam8 bestpracticesand 3 pitfallsUpwardfeedbacksurveysGoogle figure: googles analytics value chain 23. Vlerick Business SchoolCURRENTSTATUS 24. Vlerick Business School2013 STUDY ON USE OF DATA IN HR INBELGIUM Three focal questions: WHAT do organisations measure? HOW do they use these measures? WHY do organisations measure? 5 domains Recruitment & selection Engagement Training & development Comp & ben Turnover24 25. Vlerick Business SchoolMETHODOLOGY 15 Belgian companies 10 members of BEL20 Large companies of varying sectors (1,750 to200,000 employees) Interviews with HR-professionals25Sector % organizationsFinancial activities 20%Information & Communication 13%Industry 27%Production & Distribution of electricity* 13%Other commercial services 27% 26. Vlerick Business SchoolEFFICIENCY!!R&ST&Dev.EngagementComp & BenTurnover26Measurement % organizations# training hours per employeeTraining evaluation form100%86%Number of participants 71%Number of coursesType of the course54%54%Measurement % organizationsTime to fill 100 %Number of candidates 66%Number of starters 66%Number of vacancies 60%Recruitment channels 60%Measurement % organizationsNumber of leavers 93%Exit interview 86%Reason of resignation 64%Profile of leaver 43%Demographical characteristics 29% All do engagement surveys Often linked to other HR-data No systematic action plan implementation External and internal benchmarking Often linked to other HR-data Use of simulation tools 27. Vlerick Business SchoolONE STEP FURTHER.R&ST&Dev.EngagementComp & BenTurnover27 Link to absenteeism / turnover Link to productivity Use of quick scans Simulations for cost of promotion Simulations for changed comp-scheme Often trigger to analyses inother domains Region specific benchmarking Learning penetration linkedto engagement, turnover Usefulness of training somemonths after programme Supervisor rating oftraining effectiveness Turnover of starters Supervisor performance evaluation Measure of quality external partners Evaluation recruitment channels (inflow not quality) 28. Vlerick Business SchoolDATA IN HR: VALUE & FUTURE Overall enthusiasm about the use of data in HR But need for alignment with organisationalstrategy and targets Benefits More credibility for HR HR is seen as a strategic partner Further professionalisation of HR Opportunity for HR to be innovative28 29. Vlerick Business SchoolDATA IN HR: VALUE & FUTURE Problems Quality of data cannot be guaranteed Too much data Lack of integrated system HR-professionals often miss competencies to dealwith data and lack of insight in the business Expensive and time consuming Lack of audience29 30. THANK YOU!