Morgan Stanley Report on Talent Analytics

8/12/2019 Morgan Stanley Report on Talent Analytics

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Copyrigh t 2010 Accentur e, Thomas H. Davenport , and Jeremy Shapiro. All Right s Reserved.

Competing on Talent AnalyticsJeremy ShapiroExecutive Director, HRMorgan Stanley


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Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved. 2

What are Talent Analytics?

Talent Analytics makes useof data about youremployees to find new

insights that links peopledecisions to organizationalperformance.


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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 talentmanagement 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.)

JetBlues 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

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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

Analyt ical HR

HC Investment Analysis

Talent Value Model

Talent Supply Chain

Workforce Forecasts

How should my workforceneeds adapt to changes inthe business environment?

Why do employeeschoose to stay with orleave my company?

Which actions havethe greatest impacton my business?

What are key indicatorsof my organizations

overall health?Data in Order

Key Targets/Segments

Differentiated Action

Institutional Action

Real -Time Optimization

Predictive Action

Which units,departments orindividuals need

attention?

How do I know when tostaff up or cut back?


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7/14Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved.

Applying Talent Analytics

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Human Capital Facts

Analyt ical 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
http://www.jetblue.com/



United Technologies Example

Knowing andutil izing thenetworks center

Leveraging thenetworks edge

Bridging si los w herecollaborationmatters

2011 The Netwo rk Round table LLC

Source: Rob Cross, University of Virginia, Driving Results through Social Networks


9/14Copyright 2010 Accenture, Thomas H. Davenport, and Jeremy Shapiro. All Rights Reserved. 9

Google Example

Employee performance data used todetermine interventions for high and lowperformers Hypothesis: Google hires talented people

so low performers may be misplaced orpoorly managed

Outcome: Detailed analysis confirmedtheir hypothesis and a number of difficultsituations were subsequently addressed

Managers have the option of exposing their ownperformance to other managers



The DELTA Model and Talent Analytics

DELTA Model Organization Talent AnalyticsData Right HR Metrics Augment existing with new

Smile frequency amongcustomerfacing staff

Enterprise Broad access to employee data

Important statistical relationshipbetween employee satisfactionand company performance

Quarterly employeeengagement surveys

Leadership Belief that human-capital insights

should be used to solve businessproblems

Manager adoption crucial analytics in company language

Targets Based on priority talent challenges

combined with business priorities

Initial priority hire the rightpeople. Shifted to gaininginsight into employee attritionover a two year period

Analysts Combination HR and statistical

analysis expertise

Established HR analyticsgroups to gain deeper insightsinto people practices



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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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 differencesof 3 points or mo re. The bar represents the stock performance of the company with thehigher Good Company sco re, minus the stock performance of the company with the lower score.


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To Learn More . . .

Competing on Talent Analytics

, HarvardBusiness Review, October 2010

Competing on Analytics: The NewScience 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,

Jesuthasan, (JB, 2011)


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Thank You

Contact Info

[email protected] 212.762.9829 LinkedIn: Measuring Human Capital

Morgan Stanley Report on Talent Analytics

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