1. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Using Analytics to
Increase RoI
What we can learn from how
Netflix and other
non-HR applications work
2. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Let’s Get Clear on Terminology
Costs vs Investments
Is it a smart buy and how do we
make the most of it?
What is our risk versus
return?
3. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Rethinking Refocuses
Let’s stop talking investment,
and start talking costs.
Why?
Because when we talk costs we can change our thinking to:
1. How do we optimize sunk costs
2. How do we get smart about future spend
4. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Managing Sunk Costs
You’ve bought a non-refundable
airline ticket but now you don’t
want to go.
Do you go anyway?
Is your choice rational
or emotional?
Are you still making decisions
based on what you have spent,
even if those decisions are not in
your best interests?
5. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Making Smarter Spend Decisions
Buying Home Gym
Equipment
Convenience
I’ll use it if it’s easy to
access
Convenient place to
hang your clothes
Cost Effective
I don’t have to pay for a
fitness club
Cost R10,000 and I
only used it twice
Better Quality
It’s got all these cool
features and tech
I could get the same
benefit if I went for a walk
Justification Reality
6. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Using Analytics to
Manage Costs and
Spend Smarter
What we can learn from how
Netflix and other
non-HR applications work
7. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Managing Sunk Costs
Lesson 1: If you bought it, use it
Cost: $9,99
High Value
I watch 10 movies a month
$9,99/10 = 99c/movie
Low Value
I watch 1 movie a month
$9,99/1 = $9,99/movie
If most Netflix clients experienced low value,
Netflix would be out of business
8. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Managing Sunk Costs
How do Netflix create High Value users?
They get to know me, what I
like and want,
then they make sure there
is ALWAYS something for
me to watch
They proactively drive demand
9. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Managing Sunk Costs
Compare your LMS/Content Platform
Our employees experience our LMS as a high
value resource and we proactively drive demand to
get the most out of it
YOUR LMS HERE
10. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Managing Sunk Costs
Why is it so difficult to maximize the value of digital assets?
Quick Demonstration
Take out your phone and open the
picture app
Go to the first picture on your phone
When was the last time you looked
at that picture?
11. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Managing Sunk Costs
Why is it so difficult to maximize the value of digital assets?
We don’t think like
product designers
Digital assets are
“invisible”
We don’t really
understand our users
13. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Making Smarter Spend Decisions
What data do you need?
Do we know who
needs it?
350 people
Do we know who
wants it?
220 people
Do we know who will
have access to it?
110 people
Do we know who will
be able to apply it?
12 people
14. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Making Smarter Spend Decisions
Why do we struggle with data?
If Facebook was run by HR
•  You’d get a spreadsheet once a year asking you to list all your friends
•  You’d be asked which events you would be attending 8 months from now
•  You’d be asked for one passport sized photo
•  You’d have to list the same qualifications you gave them last year
•  It would take you an hour to read the list of instructions
•  None of this information would be available to you after submitting it
•  You’d only hear from them again next year when they asked for the same
information again
15. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Making Smarter Spend Decisions
Why doesn’t Facebook struggle to collect data?
•  It’s easy to use and intuitive
•  It’s useful and keeps you informed
•  It anticipates what you want to see and do
•  It sends you constant notifications to keep you engaged
16. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Making Smarter Spend Decisions
Why doesn’t Facebook struggle to collect data?
•  It’s easy to use and intuitive
•  It’s useful and keeps you informed
•  It anticipates what you want to see and do
•  It sends you constant notifications to keep you engaged
YOUR LMS HERE
19. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
A 4,000 employee multi-national logistics company
Useful: Provided everyone with a self-directed
career exploration application
A Practical Case Study
https://vimeo.com/136595625
20. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
A 4,000 employee multi-national logistics company
Scalable: 2198 people accessed the application
A Practical Case Study
28. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Making Smarter Spend Decisions
Substituting a two day interpersonal communications skills
course with an 11 minute video
https://www.ted.com/talks/celeste_headlee_10_ways_to_have_a_better_conversation?
language=en#t-166095
Lesson 3: There is a lot a FREE stuff, use it
29. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
3 New Capabilities
Connect
People and learning resources
Curate
The best learning resources
Customize
Hyper-personalized learning experiences
30. Martin Sutherland
Email martin@peopletreegroup.com website www.peopletreegroup.com
Conclusion
Let’s stop talking investment,
and start talking costs.
Why?
Because when we talk costs we can change our thinking to:
1. How do we optimize sunk costs
2. How do we get smart about future spend
www.talentprint.com