Measurement to Analytics: Methods for Applying Evidence-Based Management and Advanced Analytics to Assessment Centre Programmes Scott Erker, PhD March 14, 2013 33rd International Congress on Assessment Centre Methods 1 © Development Dimensions Int’l, Inc., MMX. All rights reserved. 2 © Development Dimensions Int’l, Inc., MMX. All rights reserved. HR Analytics Assumed as Part of Big Data 3 © Development Dimensions Int’l, Inc., MMX. All rights reserved. What is HR Analytics…?!? Business intelligence (BI): 1. BI is a set of theories, methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information. 2. BI can handle large amounts of information to help identify and develop new opportunities. 3. Making use of new opportunities and implementing an effective strategy can provide a competitive market advantage and long-term stability. 4 © Development Dimensions Int’l, Inc., MMX. All rights reserved. Purpose of HR Analytics • Support decision making for HR systems, business operations, and organizational strategy. • Help us to understand talent capability, capacity, and trajectory. • Aid in our ability to analyze, predict and control our talent programs. • Drive simplification through common language of what is important. • Contribute to transparency of HR results to drive both action and accountability. • Create foundation for predictive analytics and scenario planning to answer “what-if” questions. • Support efforts to make HR efforts transformational instead of transactional . 5 © Development Dimensions Int’l, Inc., MMX. All rights reserved. What analytic value can Assessment Centres Provide? • By definition, ACs provide accurate, objective, reliable data. • Most ACs provide many data points about an individual at a moment in time. • Aggregation of data can be interpreted at a group level – by region, by business unit, by... • Benchmarking capability is perceived to have high value. • When combined with other information, AC data patterns can reveal great insight into our interventions and decisions. 6 © Development Dimensions Int’l, Inc., MMX. All rights reserved. Analytic Framework 7 © Development Dimensions Int’l, Inc., MMX. All rights reserved. Analytic Development Process What Critical Business Questions Need to be Answered? 8 What Data Are Required to Answer the Business Questions? Do We Have the Data? Are We Confident in the Data? What Analyses Will Yield the Insights to the Questions? Repeatable and Scalable Governing Policies How Will We Present Results to Those Asking Questions? Simple, Intuitive, Informative Compels Action © Development Dimensions Int’l, Inc., MMX. All rights reserved. Basic Talent Questions: AC has a role to contribute Summarize • How many assessment have been conducted? • How do participants feel about the process? • What does the performance profile look like for my leaders? Development needs? How do they differ by region, dept., etc. • Where do high performing people come from? • What differences exist between departments in my organization? Benchmark 9 • How does my organization’s performance profile compare to industry norms? © Development Dimensions Int’l, Inc., MMX. All rights reserved. 10 © Development Dimensions Int’l, Inc., MMX. All rights reserved. 11 © Development Dimensions Int’l, Inc., MMX. All rights reserved. 12 © Development Dimensions Int’l, Inc., MMX. All rights reserved. Future-focused Talent Questions: AC has a role to contribute Predict Forecast Extrapolate 13 • Are strong performers in the assessment more likely to help the business achieve key outcomes? • Does performance on the assessment predict employee engagement? • How long will it take to develop ‘ready-now leaders’ given current trajectory? • What challenges might we face in filling leadership roles in a region we want to expand into? • What financial impact would there be if we promoted all leaders vs. ready now leaders? • How are assessment results changing over time? What does this mean for my business? • Are we wasting assessment results by not providing timely feedback? © Development Dimensions Int’l, Inc., MMX. All rights reserved. From Data Capture to Data Analysis FIRMENLOGO 14 © Development Dimensions Int’l, Inc., MMX. All rights reserved. A New Approach Assessment Centre Analytics Data Collection is predictable and on-going Automate as much as possible Use triggers instead of manual surveys Provide feedback to encourage participation FIRMENLOGO 15 © Development Dimensions Int’l, Inc., MMX. All rights reserved. Assessment Centre Analytics Model Participant: Assessment & Reactions Survey Participant: Process Evaluation Survey Feedback & Development Planning 1 week Manager Process Evaluation Survey (Micro/Macro) Participant: Development Process Survey 3 month Participant: Work Performance Survey Business Outcome Measures 1 year 6 month Manager: Work Performance Survey FIRMENLOGO 16 © Development Dimensions Int’l, Inc., MMX. All rights reserved. Event Analysis January March May July September November Event New Competency Model Identified. Event New Assessment System Launched. Event Event Jan Feb Apr May Jun Aug Sep Nov Dec February April June August October December Event Event Event Event New Training Courses Offered for Entry-Level Leaders. Event 17 © Development Dimensions Int’l, Inc., MMX. All rights reserved. Event Analysis July New Assessment System Launched. Jan Feb 18 Apr May Jun Aug Sep © Development Dimensions Int’l, Inc., MMX. All rights reserved. Nov Dec A connecting theme of our observations is that analytic projects are often stymied because of failures to appreciate that - Both data-driven analytics and expert decision making have strengths as well as limitations - and that the strengths and limitations of each must be counterbalanced with those of the other. A Delicate Balance: Organizational Barriers to Evidence-based Management Guszcza & Lucker – Deloitte Review Issue 10, 2012 19 © Development Dimensions Int’l, Inc., MMX. All rights reserved. Thank you! scott.erker@ddiworld.co m 20 © Development Dimensions Int’l, Inc., MMX. 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