Competing on Talent Analytics
Jeremy Shapiro
Executive Director, HR
Morgan Stanley
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
What are Talent Analytics?
Talent Analytics makes use
of data about your
employees to find new
insights that links people
decisions to organizational
performance.
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
2
Caesars Entertainment Example
•
•
Caesars links talent decisions to customer satisfaction.
Customer satisfaction scores are a leading indicator of the number of
visits it can expect from regular customers. Scores are linked to talent
management practices:
– Measuring “Smile Frequency” of client facing teams
– Forecasting staffing needs using analytics
– Optimizing HR practices that lift performance
– Increase Wellness  Increase Attendance & Engagement  Increase Customer Sat &
Revenue
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
3
JetBlue Example
• The Problem with HR Facts
– Not focused on assisting a manager
in making a decision.
– Frequently a subjective evaluation
(i.e. “Our turnover is too high.”)
• JetBlue’s Solution
– Net Promoter Score.
– Would you recommend working at
JetBlue to a friend?
– A meaningful “fact” for their managers
to monitor team health.
– Value chain: Employee Engagement
 Customer Satisfaction  Financial
Performance
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
4
Applying Talent Analytics
Talent Supply Chain
Real Time Optimization
-
How should my workforce
needs adapt to changes in
the business environment?
Talent Value Model
Institutional Action
How do I know when to
staff up or cut back?
Workforce Forecasts
Predictive Action
HC Investment Analysis
Differentiated Action
Which units,
departments or
individuals need
attention?
Why do employees
choose to stay with or
leave my company?
Analytical HR
Which actions have
the greatest impact
on my business?
Key Targets/Segments
Human Capital Facts
Data in Order
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
What are key indicators
of my organization’s
overall health?
5
Applying Talent Analytics
Talent Supply Chain
Real Time Optimization
-
Talent Value Model
Institutional Action
Workforce Forecasts
Predictive Action
HC Investment Analysis
Differentiated Action
Analytical HR
Key Targets/Segments
Human Capital Facts
Data in Order
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
6
Ketchum / Kodak Example
Bridging silos where
collaboration
matters
Leveraging the
network’s edge
Knowing and
utilizing the
network’s center
Source: Rob Cross, University of Virginia, Driving Results through Social Networks
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
© 2011 The Network Roundtable LLC
Google Example
•
Employee performance data used to
determine interventions for high and low
performers
– Hypothesis: Google hires talented people
so low performers may be misplaced or
poorly managed
– Outcome: Detailed analysis confirmed
their hypothesis and a number of difficult
situations were subsequently addressed
Managers have the option of exposing their own
performance to other managers
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
8
The DELTA Model and Talent Analytics
DELTA Model
Organization
Data
• Right HR Metrics
• Augment existing with new
Enterprise
• Broad access to employee data
• Important statistical relationship
between employee satisfaction
and company performance
Leadership
• Belief that human-capital insights
should be used to solve business
problems
Targets
• Based on priority talent challenges
combined with business priorities
Analysts
• Combination HR and statistical
analysis expertise
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
Talent Analytics
Smile frequency among
customer—facing staff
Quarterly employee
engagement surveys
Manager adoption crucial –
analytics in company language
Initial priority – hire the right
people. Shifted to gaining
insight into employee attrition
over a two year period
Established HR analytics
groups to gain deeper insights
into people practices
9
Learn Wisely – Mistakes to Avoid
1. Treating people like interchangeable widgets
2. Waiting for 100% accurate data
3. Ignoring factors that can’t easily be translated into measures
4. Working in silos – getting cross functional help
5. Failure to monitor organizational priorities; creating irrelevant analyses
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
10
Final Thought: Talent Data vs. Performance
Each bar represents a pair of companies in the same industry with Good Company score differences
of 3 points or more. The bar represents the stock performance of the company with the
higher Good Company score, minus the stock performance of the company with the lower score.
SOURCE: Bassi, et al., Good Company: Business Success in the Worthiness Era (Berrett-Koehler, 2011).
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
11
To Learn More . . .
• Competing on Talent Analytics, Harvard
Business Review, October 2010
• Competing on Analytics: The New
Science of Winning (HBP, 2007)
• Analytics at Work: Smarter Decisions,
Better Results (HBP, 2010)
• Good Company: Business Success in the
Worthiness Era (BK, 2011)
• Counting on Analytical Talent, Accenture
Institute for High Performance, Mar 2010
Copyright © 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
12