Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.

Competing on Talent Analytics

J eremy Shapiro
Executive Director, HR
Morgan Stanley
Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved. 2
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. 3
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

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Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
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.)
J etBlues Solution
Net Promoter Score.
Would you recommend working at
J etBlue to a friend?
A meaningful fact for their managers
to monitor team health.
Value chain: Employee Engagement
Customer Satisfaction Financial
Performance
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Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
Applying Talent Analytics
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Human Capital Facts
Analytical HR
HC Investment Analysis
Talent Value Model
Talent Supply Chain
Workforce Forecasts
How should my workforce
needs adapt to changes in
the business environment?
Why do employees
choose to stay with or
leave my company?
Which actions have
the greatest impact
on my business?
What are key indicators
of my organizations
overall health?
Data in Order
Key Targets/Segments
Differentiated Action
Institutional Action
Real
-
Time Optimization
Predictive Action
Which units,
departments or
individuals need
attention?
How do I know when to
staff up or cut back?
Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved. 6
Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
Applying Talent Analytics
7
Human Capital Facts
Analytical HR
HC Investment Analysis
Talent Value Model
Talent Supply Chain
Workforce Forecasts
Data in Order
Key Targets/Segments
Differentiated Action
Institutional Action
Real
-
Time Optimization
Predictive Action
Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
United Technologies Example
Knowing and
utilizing the
networks center

Leveraging the
networks edge
Bridging silos where
collaboration
matters
2011 The Network Roundtable LLC
Source: Rob Cross, University of Virginia, Driving Results through Social Networks
Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved. 9
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. 10
The DELTA Model and Talent Analytics
DELTA Model Organization Talent Analytics
Data
Right HR Metrics
Augment existing with new
Smile frequency among
customerfacing staff
Enterprise
Broad access to employee data
Important statistical relationship
between employee satisfaction
and company performance
Quarterly employee
engagement surveys
Leadership
Belief that human-capital insights
should be used to solve business
problems
Manager adoption crucial
analytics in company language
Targets
Based on priority talent challenges
combined with business priorities
Initial priority hire the right
people. Shifted to gaining
insight into employee attrition
over a two year period
Analysts
Combination HR and statistical
analysis expertise
Established HR analytics
groups to gain deeper insights
into people practices
Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.
Learn Wisely Mistakes to Avoid
1. Treating people like interchangeable widgets
2. Waiting for 100% accurate data
3. Ignoring factors that cant easily be translated into measures
4. Working in silos getting cross functional help
5. Failure to monitor organizational priorities; creating irrelevant analyses
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Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved. 12
Final Thought: Talent Data vs. Performance
SOURCE: Bassi, et al., Good Company: Business Success in the Worthiness Era (Berrett-Koehler, 2011).
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.
Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved. 13
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)
Transformative HR, Boudreau,
J esuthasan, (J B, 2011)


Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved. 14
Thank You
Contact Info

shapirojeremy@gmail.com
212.762.9829
LinkedIn: Measuring Human Capital