A presentation delivered to the IHRIM MAC and NY Tri-State Chapters to discuss the emerging topic of talent intelligence.

1. Talent Intelligence
Using Measurement to Better Manage
the Workforce and HR
March 19, 2009
Mike Brennan
Principal Consultant
Knowledge Infusion

2. About Knowledge Infusion
Founded in 2004 by Jason Averbook and Heidi Spirgi
History
Leader in HCM and talent management consulting and
advisory services
Total Employees Approximately 35, Across North America
Headquarters & Offices Minneapolis, MN; Offices throughout US
Target Markets Fortune 2000, Mid-market, Public Sector
Number of Customers Over 200
Areas of Expertise HCM and talent management, portals and self-service,
performance, succession, recruitment, learning &
development, talent/workforce planning, analytics,
collaborative technologies
Nordstrom, MetLife, Yahoo!, Turner Broadcasting, Intuit,
Notable Customers
Safeway, Luxottica, Health Net, AAA, Target, US Postal
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3. Agenda
•HR’s Role in Decision Support
•Talent Intelligence: Better
Management of the Workforce
and HR
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4. HR’S ROLE IN DECISION
SUPPORT
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8. quot;Think, Blink or Sleep on It? The Impact of Modes of Thought on
Complex Decision Making,quot; University of New South Wales and the
University of Essex in England, 2008
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10. 2009 HR Needs
Balance of People Management with Lower Cost-to-Serve
What is the role of talent in supporting both short-term
and long-term business goals?
Surviving in the Short-term Planning for the Long-Term
• Short-term Goals • Long-term Goals
• cut costs • grow mindshare/walletshare
• Role of Talent • enter new markets
• provide products • improve operational efficiencies
• execute • Role of Talent
• focus on efficiency • provide products
• execute
• develop and position for growth
• innovate new products and
services
• grow new markets
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11. Key Statistics from New EIU Study
(% Who Agree)
Slowdown presents an opportunity to
59%
streamline by eliminating reduncancy
Becoming increasingly difficult to recruit
53%
and retain talented employees
Will improve training and development in
47%
the next 12 months to retain employees
Expect the organization will actively target
42%
employees made redundant elsewhere
Redeployment of talent will be important
36%
part of recruiting strategy over next 3 years
0% 10% 20% 30% 40% 50% 60% 70%
N = 484 Senior HR and Non-HR Executives
Source: Economist Intelligence Unit, StepStone, 2009
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12. Metrics Not Heavily Utilized
Metrics exist to measure and model
effective workforce management and 35%
deployment decisions
The organization accurately forecasts the
demand for labor (size and skills) over 40%
various time periods
Metrics are used to provide input into
49%
strategic workforce planning decisions
0% 10% 20% 30% 40% 50% 60%
Source: Integrated Talent Management, Part 1 - Understanding the
Opportunities for Success, IBM, HCI, 2008
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13. Why Doesn’t HR Measure?
• “We are not very sophisticated, with no regular metrics in place.
And I don’t think the staff would know what to do with metrics [if
they had them].”
• Talent Management Director
• “In terms of tracking metrics, we don’t do well at all. It’s ad hoc,
manual and burdensome. We have several systems. No two of
them are integrated.”
• HRIT Director
• “We need better metrics, particularly for ID’ing & retaining Hi-Po’s.”
• Manager of Leadership and Succession
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14. TALENT INTELLIGENCE &
ON-THE-MONEY METRICS
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15. Defining Talent Intelligence
The management of workforce and business information to drive
better business decisions in support of organizational goals.
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16. What is a MEASURE? A METRIC?
ANALYTIC? KPI?
• Measure: Single data point indicating the timing or order of
magnitude of a transaction or process.
• Example: Date of hire
• Metric: Meaningful information, derived from data, that
answers a basic question about a process(s) or event(s)
• Example: Number of new hires in 2008
• Analytic: Actionable information that enables business
leaders to arrive at a realistic and/ or optimal decision based
on relationships among metrics and/or measures
• Example: Total cost of undesirable turnover amongst the class of 2008
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17. Intelligence Framework: Types of Metrics & Analytics
Talent Workforce &
People Corporate
HR Strategic
HR
Management Organizational
Departmental Scorecard
Pillars & KPIs
Operations Effectiveness Performance
Metrics
Examples: Examples: Examples:
- Attraction
- Time-to-Hire - Dollars Booked
- Retention
- HR-Staff -per-FTE - # of Deals Assigned
- Bench Strength
- Training Hours -per-FTE - Customer Service
- Mobility
- % On-Time Perf Reviews - # of Errors / 1,000
- Diversity - Average Issue Resolution Time
- HR Cost Revenue Percentage
Analytics
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Data
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18. Analytics that Span Categories
• Dollars booked per advisor
• Impact of billable utilization rate on company profitability
• Cost per vacancy
• New-hire time-to-productivity
• Revenue per total workforce spend
• Level 3 and Level 4 training analytics
• Total cost of ‘Hi-Po / Hi-Per’ voluntary turnover
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19. Application: Metrics & Analytics in Tough Times
Question Examples of Data, Metrics & Analytics
Where can we afford to E.g., Headcount, total compensation, cost of
reduce staff levels? voluntary turnover packages, productivity
measures
Where can we NOT afford E.g., Employee productivity, skills & competencies
to reduce staff levels? data, average manager span of control, average
total compensation across geographies, position
vacancy rate in ‘key’ or ‘critical’ roles
How do we ensure the E.g., percentage of promotable employees in key
organization is able to talent pools, relative compensation, flight risk,
thrive when the economy development plans, development actions and
recovers? Who will lead Kirkpatrick measures
us?
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20. 20
People, Process and Technology
40 – 40 - 20
PEOPLE
PROCESS
TECHNOLOGY
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21. Know Who and What You Have
• Obtain visibility into talent that exists within the
enterprise
• HIPOs, Leaders, Top Performers
In turbulent times more than any
other, there is not only the
• Knowledge, skills, abilities, interests
opportunity, but the need for HR
• Standardize talent review processes to provide leadership to the
business. The ability to attract
• Ask: and retain workers when times
are tough really requires leaders
• Do we have the talent we need? to be at their best.
• Can we mobilize it?
Dave Gartenberg, HR Director
at Microsoft UK
• Can we develop it?
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22. Case Study: Inventorying Internal Talent Supply
• Global Property & Casualty Insurer
transitioning from COE to Geo org structure
• Goal: Inventory talent and enable global
mobility
• Skills, knowledge, prior experience/jobs, career
preferences, relo preferences, languages
• Leveraging core HR system and pieces of
Talent Management suite
• HR and managers able to access data on
internal talent, support business decisions
• Building on success with mobility to better
manage talent in terms of development and
retention
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23. Single View of the Employee/Contractor/Candidate
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24. Single View of the Team
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25. Single View of the Organization (Select Metrics)
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26. Managing Retention Risk
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27. Key Technology Components
•Easy-to-Use Visualization Tool
Accessed via Portal
•Email
•Binder
•Etc.
Data Hub
“Single Source of Truth”
Staffing
Onboarding
Succession
Performance /
Learning
Compensation
HRMS
Non-HR Info
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28. SUMMARY & CONCLUSIONS
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29. Summary
• Think, blink or sleep on it: Data, metrics and analytics help
make tough decisions smart decisions
• Good storytelling also helps; Numbers only part of the picture
• Talent metrics are business metrics
• HR & TM data support business decisions
• Ensure short-term gains do not lead to long-term losses
• Ensure adequate supply of talent, particularly for critical roles
• Talent management is much more effective when
accompanied by an intelligence strategy and capability
• Talent intelligence comprises people, process, technology
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30. Talent Intelligence Check-List
Identify client stakeholders with tough decisions to
make.
Beg, borrow and steal analytic competencies.
Keep HR and non-HR stakeholders appropriately
engaged.
Standardize metrics and analytics definitions and
data sources.
Pick the most cost-effective tools for delivering metrics
and analytics to the stakeholders who need them –
new or existing.
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31. Wrap-Up
Questions and Discussion
Mike.Brennan@KnowledgeInfusion.com
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32. Continue the Conversation
• http://www.knowledgeinfusion.com/coe/groups/talent-intelligence
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