From Big Data to Big Insight - Dave Edwards, SHL/CEB

From Big Data To Big Insight
David Edwards, Head of Professional Services, CEB

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© 2013 SHL, a part of CEB. All rights reserved.
Version 1.0 Last modified 20 September2013
Commercially confidential

Solutions Overview
Who We Are

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CEB is the leading member-based advisory company. We give senior leaders and their
teams insight into how the most successful organizations operate, equipping them with
actionable solutions to transform operations.

110+

CEB’s Integrated Talent Management Services help executives improve business
performance by realizing the value and potential of people. We offer support across the
entire employee life cycle, engaging HR and leaders from Finance, IT, Sales and other
organizational teams. Our SHL Talent Measurement Solutions offer science-based
assessments, benchmark data, technologies and consultancy services to help
organizations assess, select and develop the right people for the right roles.

10,000+

Years of Experience

Countries Represented

Participating Organizations

300,000+

Business Professionals

87% of the Fortune 500
80% of the FTSE 100
62% of the Dow Jones Asian Titans 50

Best Practices & Decision Support

Leadership
Councils

Market Insights

Tools & Solutions

Analytics &
Planning

Best Practice
Implementation

2

Integrated Talent Management Services

SHL Talent
Measurement
Solutions

Learning &
Development

Workforce Surveys
& Analytics


Problem in the World of Big Data……
Size isn’t the issue……
• 2013 CEB Study – 85% Executives Surveyed stated that more data
was not adding up to better decisions
• For people in HR and Talent Management Functions this is a problem
• Business Leaders recognize the need to identify, develop and retain
future managers. But…..

What’s the ROI?

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4

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Moving from Big Data to Big Insights
Need to address fundamental questions
• Do I have the people to drive my business forward? (Present – Future)
• Am I confident that the people investments I make today are going to pay
off tomorrow?

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What is a Big Insight?
A big insight tells an organisation whether an issue is truly an issue or
not….
….and, if it is, what actions need to be taken to resolve it and improve
organisational performance.
It is the value of the insight and not just the size of the data that makes it
big.

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How do I achieve Big Insight?
4 key principles can be applied to deploy talent analytics that deliver the
value of big insights:

1.Relevance
CEB Study – Only 14% of executives believed that Talent Analytics were
being used to explore the right issues.
So….best practice in talent analytics…must have relevance

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HIPO programmes deliver worrying low ROI
HIPO programmes target future leaders, yet
struggle to do so effectively
The top objective of most HIPO programmes (81%) is
to build a pipeline for succession management
36%

But few HIPO programmes deliver expected talent
outcomes

Effective
Ineffective

64%

Only 36% of HIPO programmes are effective at
building a pipeline succession management
Refers to percentage of respondents who choose Very Effective
or Effective on a 7 point scale
Source: HIPO Program Operations and Outcomes Survey 2012

With dangerous consequences
Nearly 40% of internal job moves made
by people identified as “high potentials”
end in failure.

40%

Failure
Success

60%

Percentage of internal job moves made by High Potentials that
end in failure.

Source: CLC HIPO Program Operations and Outcomes Survey, 2012

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2.Impact
Talent investments are long term….
Need to manage the odds of a positive return on investment

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3.Action
Shouldn’t just describe where we are now and where we want to be
tomorrow…..
Should set a prescription for tomorrow…..

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4.Perspective
The most fundamental of the principles…..
Are the right questions being asked?
Is the right data being used?

“If you do not know how to ask the right question, you discover nothing.”
William Edwards Deming (TQM)

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Challenges we hear
“We don’t know if we are bringing the
right people into our talent pools.”

“We are concerned about the strength of
our leadership pipeline.”

Only

1/15

Only
have the potential to be
effective leaders in the near
term

Source: The SHL Talent Report 2012

29%

of high performers currently
have the potential to rise and
succeed in more senior critical
positions

Source: CLC Realising the full potential of rising talent 2005

“Our HIPO programmes are not delivering a
return for the business. ”

“The failure rate of transitioning leaders
is high.”

Nearly

46%

40%

of all transitioning
leaders underperform

Source: CLC High Impact leadership Transitions, 2012

of internal job moves made by
people identified as “high
potentials” end in failure

Source: CLC HIPO Program Operations and Outcomes Survey, 2012

The vast majority of executives believe their organisations' succession management
systems fail to produce a sufficient supply of leaders.
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Key Questions
1. What is it that people need to have to rise to a more senior position?
2. Will they be successful when they get there?
3. Will the employee you have nominated as high potential be with you
when they get there?
Note: Between 14% and 33% of high potential candidates reporting that they are looking outside their sponsoring organisation for
employment.

13


Results
(Lag)

What are the outcomes we want to achieve?

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Behaviour

Results
(Lag)

What behaviours drive those outcomes?

15

15

Potential
(Predictive)

Results
(Lag)

Behaviour

What are the characteristics of people
that drive those behaviours?

16

16

Potential
(Predictive)

Results
(Lag)

Behaviour

Our organising structure

17

17

18

18

Sales
Quality
Safety
Productivity
Leadership

Cognitive Ability
Behavioral Style
Motivation
Judgment

Predictive analytics about
people, behaviour and results

19

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What is CEB Talent Analytics?
CEB Talent Analytics is benchmarking to gain the People Insight that
drives business results

CEB Talent Analytics benchmarks your critical
talent pools against the best in your
marketplace and is built upon the largest
global database on the potential of to deliver
organisational success.

CEB Talent Analytics provides data-driven talent
insights that improve business performance

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Applying Talent Analytics

Talent Analytics provides data to drive talent decisions:
 Talent Audit – Enhances internal talent benchmarks
 Recruitment – Directs recruitment spend effectively
 Leadership Development – Provides critical insights for
leadership effectiveness programs
 High Potential Programmes – Ensures high potential
programmes are best-in-class
 High Volume Programmes – Drives decisions on critical
roles (e.g. customer contact) using market-competitive data

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In summary
• Moves predictive analytics from focusing on the individual to a
view of the entire organisation
• Provides actionable competitive talent data for improving the
acquisition and internal deployment of employee talent
• Gives an organisation metrics on people effectiveness,
not just efficiency
• Is a new dimension in corporate analytics that drives business
success

“CEB is looking to change the game by giving
employers new avenues of insight to power
decision-making”
Aberdeen Group
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Real insight comes when we look at more granular
populations
For Example:
 Function, geography and job level
− An organisation may be attracting great marketing talent but poor sales talent,
or strong graduates and weak leaders, or weaker graduates in a particular
country
− Each function, geography or job level requires a different benchmark for
comparison to reveal this insight
 Candidate source
− From which source is the organisation attracting the strongest/weakest
candidates?
− We compare each population to the same benchmark to reveal this
 Stages through the recruitment process
− The process may be selecting more or less of any given top talent
− We compare the populations progressing to the same benchmark to reveal this

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Capability profile through the recruitment process
Your recruitment process is screening out Leading & Deciding and Enterprising & Performing
strength…
 Is the focus on acquiring talent that “delivers” high enough among recruitment decisionmakers?1
 The biggest step change is occurring in your assessment centres; look here first

Overall process effectiveness: Competency

Applicants
Invited to Assessment Centre
Interviewed

% Top talent

Hired

50

SHL Banking & Finance Benchmark

1

25

1

0
Leading &
Deciding

Supporting &
Cooperating

Interacting &
Presenting

Analysing &
Interpreting

Creating &
Conceptualising

Organising &
Executing

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Adapting &
Coping

Enterprising &
Performing

Notes: Benchmark for all applicants reaching each
stage in the recruitment process against the banking
and finance industry globally. Where bars increase
across stages, stronger talent is being acquired.
Where the bars decrease across stages, the level
of talent is being reduced at successive stages.


Evaluating effectiveness by candidate source
 Direct candidates appear stronger on five dimensions 1
 Candidates supplied by agencies fall short of the
benchmarks for Creating and Conceptualizing and
Enterprising and Performing2

CEB Talent
Analytics
can be used to
compare recruiting
sources or
recruiting stage

Direct Applicants
% Top talent

Agency Sourced Applicants
1

1

50

1

1
2

1
2
25

Note: Benchmark for all applicants against
the banking and finance industry globally.

0
Leading &
Deciding

Supporting &
Cooperating

Interacting &
Presenting

Analyzing &
Interpreting

Creating &
Conceptualizing

Organizing &
Executing

25

Adapting &
Coping

Enterprising &
Performing


Evaluating the depth of the leadership pool
 Overall, this organisation’s hires outperform the benchmark at
the High and Very High levels of leadership potential 1

CEB Talent
Analytics
can be used to
compare
leadership
effectiveness

 They might have some challenges in managing processes
effectively and delivering against targets

Overall leadership potential

At their best when working in
a well defined role with clear
responsibilities and expectations

1

1

Transformational

At their best in a high profile role
where they can drive innovation
and change

CEB Banking and Finance Benchmark
% Your hires

8%

18%

19%

8%

9%

12%

16%

3%

6%

At their best in a role where they can
frame, lead and deliver company wide
strategy, working closely with and
influencing key stakeholders

1

At their best in a role responsible for
the implementation of processes and
the delivery of targets
Notes: Benchmark for all hires against the banking
and finance industry globally.

Transactional

26


Real World Application of CEB Talent Analytics

27


How do our junior managers compare to the global benchmark
population?”

28


How do your junior managers compare to the global benchmark
from a competency perspective?
 The graph below shows the proportion of your junior managers (pink bars) who fall into the
upper quartile of talent (top 25%) on the global SHL Competency Benchmark (horizontal blue
lines)
 Your junior managers match the global benchmark on Organising & Executing and
Enterprising & Performing
 They lack bench strength on the other six competencies particularly on Interacting &
Presenting
 They show higher bench strength on Creating & Conceptualising, Organising & Executing
and Enterprising & Performing in comparison to the other competencies
SHL Competency Benchmark: ME Retail Organisation Overall Profile
ME Retail Org

SHL Global Benchmark

% Top talent
50
40
30
20
10
0
Leading &
Deciding

Supporting &
Cooperating

Interacting &
Presenting

Analysing &
Interpreting

Creating &
Conceptualising

Organising &
Executing

29

Adapting &
Coping

Enterprising &
Performing


What do they look like in terms of Verbal and Numerical
Reasoning Ability...
 In comparison to the global benchmark your junior managers underperform at Levels 3
through 5 where talent is strongest for Verbal Reasoning Ability
 More than half of your junior managers fall into Level 1 on Verbal Reasoning Ability
 For Numerical Reasoning Ability, your junior managers also lack benchstrength at Levels 3
through 5
 Around 4 in 5 of your junior managers fall into Levels 1 and 2 on this ability
 What do your junior managers look like in terms of Inductive Reasoning Ability?

Overall profile:
ME Retail Org

Numerical Reasoning Ability

Verbal Reasoning Ability

70

70

60

60

50

50

40

40

30

30

20

20

10

10
0

0
Level 1

Level 2

Level 3

Level 4

Level 5

Level 1

Level 2

30

Level 3

Level 4

Level 5


...and on Inductive Reasoning Ability?
•

For Inductive Reasoning Ability, your junior managers underperform the global benchmark at Levels
3 through 5 where talent is strongest

•

You have some junior managers at Level 4 on this ability

•

Nearly half of your junior managers fall into Level 1

•

How do your junior managers compare to the Middle East region?

Overall profile:

ME Retail Org

Inductive Reasoning Ability
50

70
60
50
40

25
30
20
10
0

0
Level 1

Level 2

Level 3

Level 4

Level 5

Level 1

Level 2

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Level 3

Level 4

Level 5


How do our junior managers compare to the Middle East
benchmark population?"

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How do your junior managers compare to the Middle East
from a competency perspective?


Your junior managers lack bench strength across the competencies in comparison to the Middle East
(horizontal blue lines)



This lack of bench strength is less significant for Supporting & Cooperating, Organising & Executing
and Adapting & Coping



They show higher bench strength on Creating & Conceptualising, Organising & Executing and
Enterprising & Performing in comparison to the other competencies



Why is bench strength lower on certain competencies, in particular Interacting & Presenting?

SHL Competency Benchmark: ME Retail Organisation Overall Profile

ME Retail Org

SHL Middle East Benchmark

% Top talent
50
40
30
20
10
0
Leading &
Deciding

Supporting &
Cooperating

Interacting &
Presenting

Analysing &
Interpreting

Creating &
Conceptualising

Organising &
Executing

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Adapting &
Coping

Enterprising &
Performing


How do your junior managers compare to the Middle East on Verbal and
Numerical Reasoning Ability...
 For Verbal Reasoning Ability, your junior managers underperform the Middle
East on Levels 3 through 5 where talent is strongest
 They also lack bench strength at Levels 3 through 5 on Numerical Reasoning
Ability in comparison to the Middle East
 How do your junior managers compare to the Middle East on Inductive
Reasoning Ability?

Overall profile:

ME Retail Org

Numerical Reasoning Ability

Verbal Reasoning Ability

70

70

60

60

50

50

40

40

30

30

20

20

10

10
0

0
Level 1

Level 2

Level 3

Level 4

Level 5

Level 1

Level 2

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Level 3

Level 4

Level 5


...and on Inductive Reasoning Ability?
• For Inductive Reasoning Ability, your junior managers underperform the Middle
East at Levels 3 through 5 where talent is strongest
• You have some junior managers at Level 4 on this ability
• How can these abilities be developed among your junior managers?

Overall profile:

ME Retail Org

Inductive Reasoning Ability
50

70
60
50
40

25
30
20
10
0

0
Level 1

Level 2

Level 3

Level 4

Level 5

Level 1

Level 2

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Level 3

Level 4

Level 5


Summary of findings and recommendations
• Overall, your junior managers show bench strength but this varies across the eight
competencies
• Bench strength is higher for Creating & Conceptualising, Organising & Executing and
Enterprising & Performing in relation to the other competencies
• A key development need has been identified as Interacting & Presenting
• Your junior managers match the global benchmark on Organising & Executing and
Enterprising & Performing
• They lack bench strength when compared to the Middle East region
• Why is bench strength lower for certain competencies?
• Which competencies are essential for effectiveness in the junior manager role?
• From a Reasoning Ability perspective, your junior managers underperform against the
global and Middle East benchmark populations
• For Inductive Reasoning Ability, you have some junior managers at Level 4
• How can you develop these talent gaps and abilities among your junior managers?

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1.Relevance
2. Impact
3. Action
4. Perspective

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Thank you
David Edwards
Head of Professional Services, CEB
David.edwards@shl.com
Come and see us on stand B30

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From Big Data to Big Insight - Dave Edwards, SHL/CEB

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