Aligning HR Analytics to Business Objectives 1 4 June 2015
Agenda Identifying what matters in your organisation and tailoring your analyses to add value to the business Finding the link between business problems and workforce trends to produce valuable recommendations How to produce business-focused hypotheses , interpret your results and deliver business-driven insights Human Resources 2 4 June 2015
Michael Cox Highly experienced leader of various HR Departments within Nestle UK & Ireland, including S hared S ervices, Training & Learning, Compliance, International HR and now HR Analytics. HR Background (former HR Business Partner in t he famous Nestle Y ork factory – birthplace of the Kit Kat) Integral in implementing HR Shared S ervices (Centre of S cale) & HR Analyt ics within Nestle UK & Ireland Experienced proj ect implementation strategist and manager. Lives in Y ork, UK Head of HR Analytics & Employee S ervices Qualified Greenbelt (Lean/ S ix S igma) Joined Nestle in 2004 BA (Hons) Human Resource Management Michael Cox Human Resources 3 4 June 2015
We make … Human Resources 4 4 June 2015
We make … World’s largest food and beverage company • CHF 92.2 billion in sales in 2013 • 333,000 employees in over 150 countries • 447 factories in 86 countries • Over 2,000 brands • 1 billion Nestlé products sold every day Human Resources 5 4 June 2015
Nestlé UK and Ireland • £2.6bn turnover in 2013 • 8,000 employees (including our sister companies) • 21 sites including offices (14 manufacturing sites) Human Resources 6 4 June 2015
Our Brands in the UK • £361m worth of exports to over 50 countries in 2013 • Over 84 brands including the UK’s favourites KIT KAT and NESCAFÉ • 97% of UK Households consumed Nestlé products in 2013 • More than two billion Nestlé products are sold every year in the UK Human Resources 7 4 June 2015
Our Products in the UK Human Resources 8 4 June 2015
Human Resources 9 4 June 2015
Deloitte HR Strategy Framework Source: (click here to see Deloitte’s model) Human Resources 10 4 June 2015
Business planning for HR (Alignment) Global HR priorities External Business Operating Strategy Environment Zone priorities Functional People Plan Priorities HR Strategy Sustain Plan Operational Review Focused f ew Process Business as usual Human Resources 11 4 June 2015
Measurement (Strategic, Aligned & Cascaded Measures) These are measured at Mancom level and are t he improvement / st ep change • Annual Development Plan expect ed from t he implement at ion of Qualit y Index t he Market ’ s People S t rat egy • HR Funct ional Measures at HR Leadership Annual Development Plan Team level t hat support Qualit y Index • improvement / compliment t he market % Development S pent on Target people measures Populat ion • A mixt ure of People S t rat egy measures Annual Development Plan and HR Funct ional measures a Business Qualit y Index • Part ner will use wit hin t heir t eam t o % of t arget populat ion using drive improvement coach/ ment or HR Funct ional measures at CoE level • Engagement t hat support improvement / compliment • Development Plan Complet ion t he market people measures and HRLT measures • HR Funct ional measures which monit or Annual Development Plan t he effect iveness and efficiency of t he Complet ion Rat e • people processes t hat relat e t o t he Training Effect iveness (Fill, market people st rat egy measures Cancelat ion, Approval Rat ing) Measure t hat each line manager will be • Annual Development Plan held account able for and cascade from Qualit y (Bonus Hurdle) t he market people measures. Human Resources 12 4 June 2015
Measurement (Strategic, Aligned & Cascaded Measures) Annual Development Plan Quality Index (availability) % of employees who have an Annual Development Plan 67% 95% 2012 2013 Annual Development Plan Quality Index (effectiveness) % of employees having an effective or highly effective Annual Development Plan 47% 83% 2012 2013 Human Resources 13 4 June 2015
HR Analytics Team (Types) S trategic Operational It’s the process of converting data It’s the process of converting into information information into knowledge Descriptive Diagnostic Predictive Prescriptive Hindsight Insight Foresight Simulation What happened What made it happen What will happen What should we do Input: Information Input: Knowledge Input: Understanding Input: Forecast Output: Knowledge Output: Understanding Output: Forecast Output: Optimisation Method: Method: Method: Method: Graphical Statistical Algorithms Models Human Resources 14 4 June 2015
Strategic Focus Without Strategy or Context… Big Data and Analytics are just Data-Mining S T R A T E G Y Use a small number of top priority strategic metrics to drive HR Analytics to provide insights Human Resources 15 4 June 2015
Human Resources 16 4 June 2015
Imagine you are suffering from a deep pain... Would you go to the doctor? But… would you explain to the doctor what’s your problem and expect him to try different random treatments until they find the right one? ( Andrea Dommers-Nilgen , 2013, Using Big Data to Create Value to Your Customers) Human Resources 17 4 June 2015
Data driven approach of Analytics Data Business Business Business S ources Information Problem S olution Typical Question: • I have a lot of data. • What can I do with it? Human Resources 18 4 June 2015
Data driven approach of Analytics Business Business Data Business S olution Problem S ources Information Business Business Data Business S olution S ources Problem Information Business Business Data Business S olution S ources Problem Information Business Data Business S olution S ources Problem Business S olution Typical Outcome Customer: • Expects ready-made solution • Does not understand the logic behind the data • Has other needs • Is not ready to make changes to business processes Human Resources 19 4 June 2015
What a good doctor would do… Asks about pain Understand what is happening S ee the medical history of the patient Makes diagnosis based on: Research Experience Knows medicine and treatments Agrees best approach Asks for later feedback Human Resources 20 4 June 2015
Business problem driven approach of Analytics Business Business Data Business Problem Information S ources S olution Typical Question: • What are the customers’ most aching pain points? • What are the most troublesome business processes? • What are the areas the customer can‘ t cover with own resources? • What part of the HR S trategy needs further insight Human Resources 21 4 June 2015
Business problem driven approach of Analytics Business Business Data Problem Information S ources Business Data S ources Information Business Business Data Big Business Business Problem S olution S ources Insight Data Information Data Business S ources Information Data S ources Clearly defined outcomes: • Focused approach • Knowing what the customer needs most • Easy to implement in a comprehensive platform Human Resources 22 4 June 2015
Human Resources 23 4 June 2015
Use a consistent methodology Problem Problem Problem Problem Problem Problem Problem Problem Purpose Research Conclusion S cientific Method Analysis Hypothesis Experiment ( Kevin Long , 2013, Big Data : A Practical Guide, Teradata) Human Resources 24 4 June 2015
Our consistent methodology The purpose of our methodology is to make HR Analytics’ products be: S ustainable Compliant Measurable S calable Efficient / Effective Visible and Usable Realistic Flexible Business Case Implementation Support the HR Strategy Inquiry / Approval / Follow-up Present Contracting Data Mgmt Results / and / Collection Findings Method and Analysis Human Resources 25 4 June 2015
Business Case Always start from a pain point Be clear about the outputs Have the Business Case clearly defined at the S eparate the ‘ Must haves’ from the ‘ nice to outset of the proj ect haves’ Be clear about what the analysis will drive in It is the requestor who needs to formulate the terms of actions business case Understand the scope of the proj ect Business Case Implementation Support the HR Strategy Inquiry / Approval / Follow-up Present Contracting Data Mgmt Results / and / Collection Findings Method and Analysis Human Resources 26 4 June 2015
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