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Using Analytics to Integrate and Drive Talent Management
1.
Using Analytics to
Integrate and Drive Talent Management Presentation Title Candy Knowles, FACHE, SPHR Presenter’s Name • Date & Scott Mondore, PhD 10/5/12 1 ©SHRM 2012
2.
Learning Objectives •
Link Talent Management processes to key business outcomes > Succession Planning, 360, Survey, Full Integration • Calculate an ROI for Talent Management processes • Demonstrate the value of Integrated Talent Management for organizations of all sizes • Integrate the key Talent Management drivers of business outcomes into one dashboard for Sr. Leadership, front-line managers • Build a business case for investing in talent/employees – treat HR like a profit center! ©SHRM 2012
3.
Guiding Principles •
Analytics means directly connecting what we do to real business outcomes—it does not mean running more reports! • Analytics must be made practical & actionable for senior leaders and front-line leaders • Integration does not mean fewer logins/passwords—it means connecting talent management data to make better talent decisions. It also means that talent management processes work together (e.g. employee survey is connected to LMS) • Employee engagement, by itself, is not a business outcome 3 ©SHRM 2012
4.
SMD Publications
#3 Bestseller for 2011 Published Published by by SHRM SHRM (2009) (2011) HR People & Strategy has awarded SMD The Walker Award for their article on Talent Management Analytics. “The Walker Award is given to the article that ‘best advances state-of-the-art thinking and practices in human resources.’" ©SHRM 2012
5.
About SMD:
Driving Business Results Through Talent Management Our Platform • Implement Talent Management processes based on analytics, linking people to critical business outcomes • Partner with our clients to create and execute people strategies that drive business outcomes and maximize ROI Our Results • Linkage of Talent Management (e.g., engagement survey results, training, performance ratings, competency assessments) to a variety of business outcomes: ▫ Operations Metrics (e.g., operating margin) ▫ Financial Metrics (e.g., sales dollars, productivity) Connecting Employees ▫ Customer Satisfaction to Business Results ▫ Turnover/Retention • HR Strategy & Planning • Human Capital Measurement ▫ Employee Safety • Talent Management • Significant bottom-line improvements and • Leadership Development • Executive Assessment & Coaching return-on-investment for our clients. • Organizational Effectiveness ©SHRM 2012
6.
RETHINK Your Approach
to HR! Make HR a Profit Center • Quantify the impact of employees on business outcomes • Calculate an expected ROI for investments in employees • Define the relationship between HR processes and business outcomes Connect Key HR Processes • Provide a single, integrated view of key HR processes • Reduce your HR related costs through integration and strategic alignment • Connect HR processes to business results Spend More Time Driving Results • Align HR professionals, organizational leaders, & employees to focus on actions that drive results • Provide customized analytics and simplified reporting through business- focused scorecards ©SHRM 2012
7.
i4cp Study of
SaaS Customer Satisfaction • i4cp's latest research HR Technology: The State of SaaS HCM concluded: > Very few SaaS (Software as a Service) vendors meet or exceed their customer's expectations (a satisfaction rating of >4.0 on scale of 1 -5). > Dissatisfaction was highest in two key areas: 1) robust reporting/analytics and 2) integration tools. ©SHRM 2012
8.
Talent Link Key
HR Processes Performance Examples of Management Business Outcomes People Training Selection • Turnover • Employee engagement Service • Customer satisfaction • Wait times Quality Career Business Employee Development Outcomes Survey • Clinical outcomes • Product Defects Finance • % to budget • Revenues Growth Competency 360 Feedback • Sales growth Builder • Margin growth Succession Planning ©SHRM 2012
9.
Assess Business Impact: Analytic
Approach – Structural Equation Modeling • Traditional data analysis includes: • Qualitative analysis or gap analysis (strengths/weaknesses) • Correlation • Regression • Advantages of SEM: • Consider multiple independent & dependent measures concurrently • Imply causality • Calculate ROI • Correct for measurement errors • SEM is commonly used in other industries (econometrics, market research) ©SHRM 2012
10.
Case Study Large Healthcare
Organization 7,500 Employees Key Issues: HCAHPS Reimbursements, Turnover Risk ©SHRM 2012
11.
Process for Driving
Results • Link survey data to business outcomes (e.g., HCAHPS, turnover) Analysis & • Produce HeatMaps for work units to prioritize interventions Reporting • Review linkage analysis results with HR partners and leaders Review • Leaders review results with staff; focus on priorities based on Results HeatMaps • Work with local HR partners and leaders to identify appropriate actions Action Planning • Build action plans in Talent Link focused on HeatMap priorities • Provide coaching and support to HR partners and leaders to implement action plans Coach & Monitor • Monitor action plan progress and completion rates ©SHRM 2012
12.
Analyzing Your Report:
Key Drivers of Business Outcomes What is a HeatMap? • A graphical plot that shows the impact of employees’ attitudes on a key business outcome. • Allows leaders to identify attitudes that are key drivers of business results and prioritize improvement efforts in these areas. HeatMap Interpretation 1. Focus: Low Performing AND Key Driver (Average Rating) Performance Maintain Promote 2. Monitor: Low Performing, Not Key Driver 3. Promote: High Performing, Key Driver Monitor Focus 4. Maintain: High Performing, Not Key Level of Impact Driver ANALYZE REVIEW PLAN IMPLEMENT ©SHRM 2012
13.
HCAHPS HeatMap
Linked to LMS ©SHRM 2012
14.
Turnover Risk HeatMap
©SHRM 2012
15.
Key Priorities HCAHPS
Turnover Engagement Union Risk 1. Sr. Mgmt. 1. Sr. Mgmt. 1. Sr. Mgmt. 1. Sr. Mgmt. 2. Development 2. Teamwork 2. Participation 2. Development 3. Participation 3. Work 3. Supervision 3. Pay Demands 4. Teamwork 4. Benefits 5. Perf. Mgmt. 5. Role Clarity 6. Supervision Dimension Item Senior Mgmt. Communicates Objectives Senior Mgmt. Genuinely Interested in Employees Senior Mgmt. Will Use the Survey to Make Improvements Participation Opportunities to Participate in Hospital Decisions Participation Opportunities to Participate in Department Decisions Teamwork Good Communication within the Department Teamwork Employees Treat Each other with Respect Development Adequate Opportunity to Grow in My Position ©SHRM 2012
16.
Case Study
©SHRM 2012
17.
Case Study–Mid-size Pharmaceutical
Company • Pharmaceutical company with 23% market share facing new competitors and recent stagnant growth • Sales training is a big investment, but not sure of ROI • Need to conduct skills assessment and ROI study to create company-wide training strategy ©SHRM 2012
18.
Selling Skills Assessment
Content Sales Force Evidence-Based Selling Skills Differentiators Managed Care Expertise 25 competency items 4 overall ratings Needed Relationship Building 1 open-ended item to be Successful Advanced-Level Selling Skills 7-point response scale Product & Disease State Expertise Must have Account Management to do the Job Consultative Selling Skills ©SHRM 2012
19.
Selling Skills 360
Sample Items Competency Sample Item Account Management Responds with appropriate urgency to requests that require follow up Advanced-Level Selling Engages in discussions with healthcare providers that are relevant and interactive Skills Evidence-Based Easily discusses concerns about bias in XYZ’s clinical studies Selling Skills Accurately answers questions about clinical study methodology Product & Disease Articulates all potential effects that XYZ can have on patients depending on State Expertise therapy paradigm and patient profile Managed Care Effectively finds solutions to managed care challenges and restrictions Expertise Relationship Building Comfortably builds rapport with healthcare provider’s office staff Consultative Selling Asks pertinent and insightful questions during interactions to identify customer Skills needs ©SHRM 2012
20.
Competency-Level Results by
Region Product & Sales Account Advanced-Level Consultative Evidence-Based Managed Care Relationship Region Disease-State Representative Management Selling Skills Selling Skills* Selling Skills* Expertise* Building Expertise* Overall 201 6.55 6.43 6.49 6.49 6.34 6.48 6.63 6.36 202 6.81 6.69 6.70 6.70 6.67 6.81 6.81 6.69 203 6.66 6.41 6.51 6.51 6.35 6.60 6.62 6.56 204 6.73 6.65 6.65 6.65 6.55 6.66 6.65 6.66 205 6.50 6.35 6.55 6.55 6.38 6.61 6.65 6.52 206 6.49 6.55 6.65 6.65 6.68 6.71 6.66 6.46 207 6.73 6.54 6.53 6.53 6.51 6.52 6.65 6.48 301 6.59 6.47 6.42 6.42 6.56 6.45 6.62 6.47 302 6.75 6.57 6.50 6.50 6.49 6.57 6.77 6.59 303 6.68 6.53 6.61 6.61 6.52 6.63 6.76 6.59 304 6.79 6.64 6.74 6.74 6.65 6.75 6.82 6.72 305 6.48 6.38 6.29 6.29 6.37 6.46 6.55 6.41 306 6.68 6.71 6.64 6.64 6.68 6.68 6.73 6.65 307 6.68 6.63 6.58 6.58 6.46 6.57 6.59 6.51 308 6.53 6.48 6.63 6.63 6.57 6.57 6.67 6.54 Overall 6.64 6.53 6.56 6.62 6.51 6.60 6.68 6.55 Rating Scale: 1 = Strongly Disagree; 2 = Disagree; 3 = Somewhat Disagree; 4 = Neither Agree nor Disagree; 5 = Somewhat Agree; 6 = Agree; 7 = Strongly Agree *Denotes key drivers of Script Writing and Market Share Performance; Averages Exclude Self Ratings. Green and Red Shading denote differences of +/- 0.10 from the Overall Competency Average.. ©SHRM 2012
21.
Linkage Analysis Results:
Overview of the Full Model Circled numbers indicate the development priority based on the Product & 2 magnitude of the relationship with script writing & market share. Disease-State Expertise XYZ Script 0.54* Writing 3 1 0.16* Managed Care 0.29* Evidence-Based 0.60* Expertise Selling Skills 0.19* 0.10* 4 Market Share Consultative Selling Skills *Higher path values indicate a stronger impact based on a 0.0 to 1.0 scale. Findings & Implications: • Evidence-Based Selling Skills are a significant, cause-effect driver of Script Writing and Market Share. • Evidence-Based Selling Skills, in turn, are driven by Product & Disease State Expertise, Managed Care Expertise, and Consultative Selling Skills. • Prioritizing initiatives that target the key drivers listed above will lead to improvements in sales performance among XYZ Sales Representatives. ©SHRM 2012
22.
Linkage Analysis Results:
Overview of Critical Item-Level Drivers Priority* Competency Item Evidence- Easily discusses concerns about bias in XYZ’s clinical studies 1 Based Selling Accurately answers questions about clinical study methodology Skills Possesses broad knowledge of the therapeutic market Product & 2 Disease State Articulates all potential effects that XYZ can have on patients depending on Expertise therapy paradigm and patient profile Understands the specifics of managed care plans Managed Care 3 Expertise Effectively finds solutions to managed care challenges and restrictions Understands physicians’ unique approaches to treating the disease state and Consultative provides solutions based on needs 4 Selling Skills Asks pertinent and insightful questions during interactions to identify customer needs *Priorities determined based on the magnitude of the relationship with script writing & market share. ©SHRM 2012
23.
Longitudinal Impact on
Sales Performance By focusing on improving Sales Reps’ Evidence-Based Selling Skills, the training team played a key role in improving bottom line sales (i.e., Script Writing and Market Share) performance . Actual Sales Sales Outcome Estimated Impact* Improvement Total Sales Impact (2009 to 2011) Increasing Script Writing 3.2% of Script Writing by .77% equates to XYZ Script Writing +24% +.77% approximately Improvement 3.8% of Market Share $15,400,000 Market Share +1.0% +.04% Improvement in additional revenue. Product & Disease-State Expertise XYZ Script Writing Change in Mean from 0.54* 2009 to 2011 of +.14 299Scripts 371 Scripts 0.16* 2009 2011 Evidence-Based Selling Managed Care Expertise 0.29* Skills 0.60* Change in Mean from Change in Mean from 0.19* 2009 to 2011 of +.22 2009 to 2011 of +.22 Market Share 0.10* 23% 24% Consultative Selling Skills 2009 2011 Change in Mean from 2009 to 2011 of +.12 *Impact based on 0.2 change in Evidence-Based Selling Skills Mean; Results based on the average Script Writing and Market Share performance of XYZ Sales Representatives who participated in the Sales Assessment and remained in the same sales territory between 2009 and 2011 (N=54). 23 ©SHRM 2012
24.
Prioritizing Interventions:
360 HeatMap: Market Share/Script Writing Performance Linked to LMS Impact on Revenue (Beta Weight) ©SHRM 2012
25.
Individual Prioritization
2011 Selling Skills Assessment: Individual Development Priorities and Action Plan to Drive Market Share/Scripts MSC NAME: John Doe REGION: 304 Individual Development Priorities* Performance/ Competency Item Priority Level** Evidence Based Selling Accurately answers questions about clinical study methodology 1 Evidence Based Selling Easily discusses concerns about bias in XYZs clinical studies 1 Consultative Selling Asks pertinent and insightful questions during interactions to identify customer needs 2 Provides education and clinical information and is viewed as a trusted pharmaceutical Consultative Selling 2 representative Gains commitment from stakeholders across the healthcare provider's office to take specific Consultative Selling 2 action (e.g. try XYZ) Understands physicians' unique approaches to treating the disease state and provides Consultative Selling 2 solutions based on needs *Priority competencies/items identified based on the magnitude of their relationship with XYZScript Writing and Market Share; Focusing on development actions that target the competencies/items listed above will contribute directly to improvements in bottom line sales performance. **Performance/priority based on Rep's performance on the 2011 Selling Skills Assessment; Red = Low Performance; Yellow = Average Performance; Green = High Performance. Development Action Plan Competency/Item Development Action Target Date 1. ©SHRM 2012
26.
Case Study
©SHRM 2012
27.
What is Succession
Planning? Succession Planning *Succession Planning should not occur in a vacuum* Career Leadership Assessment/ Development Development ©SHRM 2012
28.
Integrated Succession Planning
based on Business Drivers Employee Individual District Region Current Personality Ready Now Scorecard Critical Competencies2 Critical Experiences3 Survey Potential Talent Performance Trait Key Drivers Health6 Business Outcomes Critical Exp. #1 Critical Exp. #2 Assessment Ready Now Employee Communication Leadership Execution 5 year Average (% Effective) (Supervisor) (Manager) Score Joe Blow 1 20 67% 67% 71% 75% 43% 73% 63% 29% 25% 57% Jane Smith 1 20 67% 93% 100% 53% 80% 60% 75% 33% 25% 65% Beverly Jones 1 20 69% 80% 84% 69% 86% 70% 50% 48% 25% 64% Anne Johnson 2 21 71% 91% 90% 83% 90% 88% 84% 58% 33% 76% Steve Simmons 2 21 75% 100% 100% 83% 69% 95% 88% 92% 50% 83% Bill Norder 2 21 77% 93% 88% 86% 94% 88% 77% 23% 33% 73% Paul Monroe 3 22 80% 97% 90% 87% 88% 100% 75% 27% 75% 80% Jill Stevenson 3 22 83% 94% 93% 93% 84% 87% 89% 76% 75% 86% Ben Stevens 3 22 83% 95% 94% 86% 94% 92% 82% 79% 67% 86% Ken Mowen 4 23 85% 100% 98% 100% 96% 97% 93% 79% 100% 94% Jack Jameson 4 23 88% 96% 97% 96% 90% 85% 64% 50% 100% 85% John Jackson 4 23 96% 98% 100% 100% 97% 100% 83% 93% 80% 94% Gary Stepsin 5 24 100% 100% 100% 100% 100% 100% 100% 75% 100% 97% Janice Norris 5 24 100% 100% 100% 100% 100% 100% 100% 80% 75% 95% Stacy Simpkins 5 24 100% 80% 98% 70% 90% 82% 15% 30% 80% 72% Average Element Score7 83% 92% 94% 85% 87% 88% 76% 58% 63% Overall Ready Now Health8 81% 28 ©SHRM 2012
29.
Integrating Succession Planning
and Compensation Potential and Position in Pay Range Director Level Employees 0-20% 20-40% 40-60% 60-80% 80-100% John Doe Matt Madson Mary Matlock Steve Daniels Meggin Gowen Jane Doe High Potential Carol Johnson Scott Donovan Billy Ryan Tom Tuberville Sam Smith Amy Andrews Jill Rogers Jim Johnson Katie Bradford Sasha McDonald Julie Jones Promoteable Shane Donovan Carter Smith John Mondore Sam Bradford Jason Kidd Erin Dry Grow in Ricky Bobby Marc Ward Tommy Timmons Chris Payer Jason Murry Position Brett Favre Gena Vantuyl Sherry Hartnet Bobby Bean Jerry Jones Billy Simmons Placement Issue Mike Roberson Janice Smill Mike Kelly Kim Klover Jodie Johnson Jill Vantuyl Performance ratings are integrated with your compensation philosophy to pre-populate merit, incentive and equity recommendations ©SHRM 2012
30.
Case Study
©SHRM 2012
31.
Case Study –
Large Retail Organization • $93 million annual shrink problem • Create a business-focused TM Strategy: > Empirically link employee data to meaningful business outcomes > Identify ‘invisible levers’ in employee attitudes, skills and behaviors that will drive outcomes > Leverage existing data to create the strategic framework > Prioritize employee-focused interventions to drive business outcomes > Provide customized solutions to drive business outcomes ©SHRM 2012
32.
Data Utilized in
the Study • Shrink data at store level—as an example (used multiple business outcomes in the full study) • Employee opinion survey results • Performance Mgmt/Competency ratings • LMS training data • HRIS data – dishonesty terminations • Store turnover data • Customer satisfaction results ©SHRM 2012
33.
Talent Link Key
HR Processes Performance Management Business Outcomes Training Selection People • Turnover Service • Customer satisfaction Quality • Shrink Employee HRIS Data Finance Survey Business • Cost reduction Outcomes Career 360 Feedback Development Competency Succession Builder Planning ©SHRM 2012
34.
Drivers of Shrink
Job-Person 1a Match Engagement Manager 1b Effectiveness 3 Ethics Course 2 Participation 2 Shrink Course Shrink Participation 2 Legend Dishonesty Terminations 1 Employee Survey Training Participation Terminations Achieve Results Competency Ratings Numbers in paths indicate the intervention priority based on the magnitude of the relationship 2012 shrink. ©SHRM with
35.
Planned Interventions &
Cost • Build optional shrink training courses for Training specific roles • $300k Recognition & • Deploy a store-level incentive program for meeting quarterly shrink goals Reward • $5 million Selection • Nothing planned • Insert shrink focused messaging in a larger OD & Leadership “customer experience” initiative Development • $250k ©SHRM 2012
36.
Recommended Actions to
Reduce Shrink TRAINING: • Code of Ethics Course > Has a direct, significant impact on shrink > Opportunity to re-train or conduct refresher courses with managers and employees > Senior leaders regularly re-communicate the key messages from the Code of Ethics • Sales and Shrink Course > Has a direct, significant impact on shrink > Currently not mandatory > Opportunity to make the course mandatory and re-train managers and employees ©SHRM 2012
37.
Revised Interventions &
Cost • Enhance and update ethics and shrink course – Training make both mandatory • $50k Recognition & • Nothing planned Reward • Improve selection process for front-line employees Selection – background checks & integrity testing • $2 million • Develop shrink management routines OD & Leadership • Develop shrink partnering program Development • $50k ©SHRM 2012
38.
Actions Taken and
Actions Cut • Initial budget was $5.55 million • Revised budget was $2.1 million • Cut incentive plan • Cut major training build • Cut “shrink focused” customer experience programs • Data analysis • Did not identify pay/benefits as a major driver of shrink • Showed the existing training courses were having an impact • Did not identify “customer focus” as a major driver of shrink • Showed that “dishonesty terminations” were a significant driver of shrink • Created an HR Strategy with a known impact on shrink ©SHRM 2012
39.
Calculating Impact &
ROI Intervention Beta Potential Shrink Level of Impact Investment Manager Competency .14 $13.0 million Under-investing Ethics Course .10 $9.3 million Under-investing Shrink Course .09 $8.4 million Under-investing Dishonesty Terminations -.08 $7.4 million Under-investing Engagement .04 $3.7 million Appropriate Reward & Recognition ns ns Over-investing Customer Satisfaction ns ns Over-investing • $93 million in annualized shrink • Example – average Manager Competency score of 3.92 • Moving 0.30 could result in additional savings of $984,897 • Approximate cost of $200,000 (build, employee time) • Expected ROI: 497% • Reduced annual shrink to $13 million in 1.5 years ©SHRM 2012
40.
40 ©SHRM 2012
41.
Key HR Processes
in One Place ©SHRM 2012
42.
Analytics and Integration •
Analytics means connecting key HR processes to real business outcomes • Analytics does not mean running numerous reports around one key HR process at a time • Analytics must be strategic and practical for the C-suite and front- line managers • Integration does not mean having key talent management processes on one platform • Integration means TM processes work together (360 and LMS) • Integration means TM processes come together to show the full story on your talent (succession planning) • Analytics and Integration allow you to show your CEO (and all leaders) what you are doing, why you are doing it and the direct business impact that it will have 42 ©SHRM 2012
43.
To Contact Us:
Candy Knowles, FACHE, SPHR Chief HR Officer-University of Maryland Medical System cknowles@umm.edu 410-328-2885 Scott Mondore, Ph.D. Managing Partner Strategic Management Decisions smondore@smdhr.com 404.808.4730 www.smdhr.com ©SHRM 2012