Transcript HR Metrics-Driven HR Strategic Command Center

HR Metrics-Driven
HR Strategic Command Center
HR Specialty Products & Services Catalogue Executive Summary
A No Frills Distillation of Vendor’s Marketing Collateral
Thomas A Ference
President & CEO
Human Resources Mining & Distribution Co
Locating, Validating and Accelerating HR Innovation
Office: 219-662-0201
Cell: 630-240-2583
Fax: 219-661-0236
e-mail: [email protected]
Website: www.hrmdco.com
HR Strategic Command Center
• Developed under guidance from the “Father of HR Metrics”
• Vendors’ state-of-the art Data Management Center incorporates
employers data related to workforce, business, customer and
company financials
• Proprietary and statistically valid formulae use data to calculate 600
powerful HC metrics and KPI’s
• Metrics portfolio gets culled down to only those that are relevant to
the client given its industry, business goals, HR tactics, etc.
• Powerful dashboards and graphics and can be manipulated using
built-in analytics such as quantifiers, calculators, mapping tools,
wizards, etc.
• Optionally, metrics can be used by vendor to develop an initial and
visual Process Roadmap for employer showing specific steps and
activities required to get HR from the Current State to a Future State.
• Future State effectively links the talent and workforce planning
strategies with the business strategy
• ROI typically 10 to 1
Strategic Differentiators
• Two-way database facilitates real-time HR scenario modeling linked
to financial forecasting under most likely, least likely and optimistic
scenarios with flexibility to adjust HR levers
HR Functions
Financial Forecasts
-Compensation and Benefits
-Workforce Productivity
-Recruiting and Hiring
-Total Cost of Workforce
-Engagement and Performance
-Financial Performance
-Training and Development
-Workforce Planning Scenarios
-Mobility and Career Paths
-Predictive Workforce Modeling
-Leadership and Management
-Data-Driven Decision Making
-Turnover and Retention
-All metrics and scenarios are converted to ROI and dollars
-A complete set of HC Financial Statements related to HC Impact, HC
Assets and HC Flow statements
Enabling Rapid Process Improvement
Inputs
Process
Outputs
Current State
Assessment
Workforce Strategy
Transformation
Future State
Solid Data Quality
Marginal Data
Quality
No
Standards
Standard Metrics
Workforce Standards
and Measurement
No Metrics
Consistency
Not
Predictive
Unstable
Foundation
Analytic
Capability
Skill
Gaps
No Data
Integration
Lack of
Insight
Need Workforce
Planning Visibility
Workforce Standards
Analytic Skills
Training
Workshops
Assessment and
Analysis
Critical Job Roles
Productivity Measures
$ ROI Opportunities
Advanced Tools
and Reports
Workforce Analytic
Power Tools
Workforce Planning
4
Human Capital Financial Statements
Source Systems
Metrics
Handbook
Job
Framework
Standards
Standards
Standards
HR Data
150.0%
140.0%
Performer
over Rewarded
Under Performer
over Rewarded
Critical Job Roles
High P erformer
High Reward
1. Workforce Strategy
2. Governance
3. Best Practices
130.0%
120.0%
110.0%
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
62.0
Under Performer
not Rewarded
64.0
66.0
"Below"
68.0
High Performer
under Rewarded
Performer
under Rewarded
70.0
72.0
74.0
76.0
78.0
80.0
82.0
"Meets"
1.
84.0
86.0
88.0
90.0
92.0
94.0
96.0
2
R = 0.3084
98.0
"Above"
Flow Statement
Standards
5
2. Asset Statement
3. Impact Statement
Sample Visuals
6
$600
-At all tenure levels, salespeople completing all XYZ
Course training have higher annual sales production.
$500
-Sales Staff with at least 36 months tenure completing
all modules produce $250k more per year than those
with similar tenure completing no modules*
$400
(Thousands)
Average Annual Production
Advanced Analytics Example
Average Annual Revenue by Tenure and Training Module Completion
$601
$530
$482
$403
-The potential ROI of training remaining employees
between 12 and 36 months of tenure
is just over $180M in the first year
$318
after training is completed**.
$407
$351
$307
$300
$263
$259
$249
$201
$200
$179
$197
$142
$100
$170
$153
$121
$203
$222
12 - 24 Months
24 - 36 Months
$250
$148
$110
$58
$0
< 3 Months
3 - 6 Months
6 - 12 Months
36+ Months
Employee Tenure
Annual Difference Between All and No Courses
No Courses
Some Courses
All Courses
Example Human Capital Analytics Journey
Data
Driven Decision
Making!
Advanced
Analytic
Studies
Integrated HR
Databases
HR Data Warehouse
Drill-down, standard reports
Scenario Analysis
First Good
Metrics
Turnover,
Initial Reports
Headcount,
Hiring&
Data Errors
Analysis
Lost HR
Credibility
HRIS system data
Data Gathering
HR Analytics
Mandate
COE Launches
Training
Courses
1st Analytics Study
Bus. Units
Reject
Analysis
Bus. Units
HR Analysis Demand
more
Validated
HR Data Cleansed
historical data scrubbed
External
Benchmarking
Context for decisions
HR Standards
Established
HR data/systems
Assessed
COE Formation
Data Errors
Historical data
still bad
Analytics journey steps
Setbacks along the way
Journey path and goal
Next Steps
• This product/service is contained in the HR Specialty
Products & Services Catalogue™
• Operational level details about this particular service
provider can be obtained in conference with the vendor
• The HR Mining &Distribution Co. is an independent and
contracted representative of the vendor
• Upon your request, we will arrange for an introduction
that can range from a simple, quick conference call to a
services overview / system demo
• Tom Ference 219-662-0201 (Chicagoland area) or
[email protected]
• Thank you for your potential interest in this fresh
thinking