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The Power of People

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Table of Contents

Foreword by John Boudreau xv About the Authors xix Interviewees xxi Vignettes xxv Preface xxvii PART I: UNDERSTANDING THE FUNDAMENTALS 1 Chapter 1 Why Workforce Analytics? 3 Adoption of Analytics 4 HR's Contribution to Business Value 4 The Changing Nature of HR 7 The Future of Work 11 Summary 13 Chapter 2 What's in a Name? 15 Focus of the Function 16 Activities of the Function 17 A Name Fit for the Future 18 Summary 18 Chapter 3 The Workforce Analytics Leader 19 Reporting to the Chief Human Resources Officer 20 Responsibilities of the Workforce Analytics Leader 20 Business Acumen 22 Leadership Attributes 23 Summary 26 Chapter 4 Purposeful Analytics 27 A Model for Purposeful Analytics 28 Project Sponsors 38 Why Do Analytics Projects Fail? 40 Summary 42 Chapter 5 Basics of Data Analysis 43 Research Design 44 Objectives of Analysis 47 Unstructured Data 52 Traditional Statistics versus Machine Learning 53 Social Consequences of Algorithms 54 More on Design and Analysis 56 Summary 56 Chapter 6 Case Studies 57 Eight-Step Methodology 58 Case Study: Improving Careers Through Retention Analytics at Nielsen 59 Case Study: From Employee Engagement to Profitability at ISS Group 65 Case Study: Growing Sales Using Workforce Analytics at Rentokil Initial 71 Case Study: Increasing Value to the Taxpayer at the Metropolitan Police 76 Case Study: Predictive Analytics Improves Employee Well-Being at Westpac 80 Summary 83 PART II: GETTING STARTED 85 Chapter 7 Set Your Direction 87 You Have the Job! Now What? 88 Listening to Prospective Project Sponsors 90 The Seven Forces of Demand 91 Agreeing on the Scope of Analytics 95 Developing a Vision and Mission Statement 95 Summary 97 Chapter 8 Engage with Stakeholders 99 Who Are Stakeholders? 100 Stakeholders Served 101 Stakeholders Depended Upon 106 Stakeholders Impacted 113 Working Effectively with Stakeholders 118 Summary 121 Chapter 9 Get a Quick Win 123 Identifying Potential Projects 125 Complexity-Impact Matrix 125 Assessing Complexity and Impact 129 Summary 133 PART III: BUILDING YOUR CAPABILITY 135 Chapter 10 Know Your Data 137 A Pragmatic View of Data 138 Solving Data Quality Challenges 138 Data Types and Sources 147 Data Governance 152 Remember the Basics 152 Summary 155 Chapter 11 Know Your Technology 157 Starting with Vision and Mission 158 Components of Workforce Analytics Technology 159 On-Premise Versus Cloud 164 Technology Vendor Relationships 165 Summary 167 Chapter 12 Build the Analytics Team 169 Six Skills for Success 170 Configuring Team Roles 181 Remember the Fundamentals! 184 Summary 185 Chapter 13 Partner for Skills 187 Why Consider Partners? 188 Options for Building the Team 188 Choosing Among the Options 197 Summary 200 Chapter 14 Establish an Operating Model 203 Defining Your Operating Model 204 Strategy 205 Governance 205 Implementation 212 Accountability 221 Summary 224 PART IV: ESTABLISHING AN ANALYTICS CULTURE 225 Chapter 15 Enable Analytical Thinking 227 Perspectives of Analytics in HR 228 The Translator Role 234 The Importance of Leadership 236 Summary 237 Chapter 16 Overcome Resistance 239 Resistance to Workforce Analytics 240 Stakeholder Skepticism 240 Financial Frugality 245 HR Hesitancy 246 Summary 252 Chapter 17 Communicate with Storytelling and Visualization 253 What Is Storytelling? 254 Effective Visualization 263 Knowing Your Audience 269 Keeping It Simple 273 Summary 275 Chapter 18 The Road Ahead 277 Analytics Provides New Opportunities for HR 278 Emerging Data Sources 278 Considering New Data Sources 280 Evolving Technology 282 The Workforce Analytics Function 283 Summary 286 Glossary 287 References 295 Index 301

About the Author

Nigel Guenole is an executive consultant with IBM, where he consults with many of the world's most successful organizations about improving organizational performance with psychological science. He is also Director of Research at the Institute of Management at Goldsmiths, University of London. Nigel's consulting, research, and teaching focus on topics in industrial-organizational psychology and statistical modeling. He is an associate fellow of the British Psychological Society (BPS), a member of the Academy of Management (AOM), and a member of the Society for Industrial and Organizational Psychology (SIOP). His work on topics related to workforce analytics has been featured in the media and popular press, as well as in numerous scientific journals, including Frontiers in Quantitative Psychology & Measurement and Industrial and Organizational Psychology: Perspectives on Science and Practice. Jonathan Ferrar is a respected consultant, speaker, and influencer in HR strategy, workforce analytics, and the future of work. He advises clients on how to establish human resources strategies that will improve business performance and make HR more relevant. He was listed as one of the global Top 50 HR Analytics Influencers on LinkedIn in 2014 and as one of the 15 HR and People Analytics Experts to Follow for 2017 by Jibe. Before he started his own consultancy business, Jonathan worked for more than 25 years in corporate business in IBM, Andersen Consulting (now Accenture), and Lloyds Bank, for many of those years in senior executive management roles in both the United Kingdom and the United States. Jonathan has worked with C-suite clients and business leaders across the globe on human resources management and workforce analytics. He holds a bachelor of arts degree and a master of arts degree from the University of Cambridge and a postgraduate diploma in human resources management from Kingston Business School. He is a Chartered Fellow of the Chartered Institute of Personnel and Development (Chartered FCIPD). Sheri Feinzig is a director at IBM, where she leads a global team of consultants, content development experts, and the Smarter Workforce Institute. Sheri has more than 20 years of experience in human resources research, organizational change management, and business transformation. She has applied her analytical and methodological expertise to numerous research-based projects on topics such as employee retention, employee engagement, performance feedback, social network analysis, and organizational culture. Sheri received her Ph.D. in Industrial-Organizational Psychology from the University at Albany, State University of New York. She has presented on numerous occasions at national conferences and has coauthored a number of publications and white papers. She has served as an adjunct professor in the psychology departments of Rensselaer Polytechnic Institute in Troy, New York, and the Illinois Institute of Technology in Chicago, Illinois, where she taught doctoral, masters, and undergraduate courses on performance appraisal, tests, and measures. Sheri is a member of the Society for Industrial and Organizational Psychology (SIOP).


"The Power of People provides an exceptional primer for doing workforce analytics. It includes wonderful insights from thought leaders, and specific and usable tools for performing analytics." -Dave Ulrich, Rensis Likert Professor, Ross School of Business, University of Michigan, and Partner of The RBL Group "Data analytics is a crucial and fast evolving organisational capability. This intriguing and fascinating book demonstrates not only the power of people analytics, but also creates a clear blueprint for building action-taking capability. A must read for any manager determined to add this valuable skill to their portfolio." -Lynda Gratton, Professor of Management Practice, London Business School "Trusting your gut on people issues turns out to be a bad idea. Analytics on your workforce is the most rapidly growing field of analytics. The Power of People is an excellent guide to this important and burgeoning topic." -Thomas H. Davenport, Distinguished Professor, Babson College, and Research Fellow, MIT Initiative on the Digital Economy "I believe you will find, like I did, that the frameworks and insights in The Power of People offer valuable steps toward realizing the potential of your workforce to create sustainable strategic success." -Dr. John Boudreau, Professor, Marshall School of Business; and Research Director, Center for Effective Organizations, University of Southern California "This is quite an exceptional book. Extremely well-researched, it constitutes essential reading for those involved in the burgeoning field of Big Data, giving first-rate advice on good practices for all those involved in Workforce Analytics." -Professor Peter Saville, Chairman 10X Psychology and Founder SHL and Saville Consulting "To build an extraordinary workplace, you need to harness the power of analytics. The Power of People provides a comprehensive look at latest research, offering best practices for leveraging the wealth of data now within our reach. If you want to master HR, you need to read this book." -Ron Friedman, Author of "The Best Place to Work: The Art and Science of Creating an Extraordinary Workplace" "Today's business executives are applying pressure to all aspects of their business (including HR and workforce areas) to use analytics to improve their bottom line. Despite this pressure there remain few resources for those looking to begin. The Power of People is an excellent primer providing definition and guidance for identifying, framing, and successfully deploying analytics solutions to solve workforce challenges." -Greta Roberts, CEO Talent Analytics, Corp. "We are barreling along toward the collision between Big Data, Analytics, and the successful acquisition, development, and retention of people in our organizations. The Power of People gives data-led comfort and practical guidance to business leaders that shows we not only can survive the collision, we can harness its potential and emerge with a stronger workforce that is motivated for business and personal success." -China Gorman, Board Chair, Universum Americas "Finally! An authoritative, thoroughly researched, clearly written book to help HR professionals be more data-driven. This volume discusses everything you always wanted to know about workforce analytics but were afraid to ask, with answers from top practitioners in the field." -Dr. Tomas Chamorro-Premuzic, Professor of Business Psychology (UCL and Columbia University), CEO of Hogan Assessments, and author of The Talent Delusion "Today Workforce Analytics is an emerging discipline which, in a few years' time, will become mainstream. The Power of People is exceptionally practical and inspiring- essential reading for those executives willing to take on the challenge of transforming their organisations. By leveraging the authors' as well as other leaders' extensive experience, this book is a true compendium for those wishing to navigate their transformation." -Manish Goel, CEO TrustSphere "The Power of People is a great book for those who want to build, refine, or fundamentally improve their HR Analytics offering. The authors have clearly undertaken some extensive research and are drawing on the experience of a wide range of people analytics experts. As a result, their book is full of great advice and can be considered a really good guide for those wanting to realise the full potential of workforce analytics in their organisation." -Dr. Martin Edwards, Kings College London Business School "Listening to what employees tell us and acting on it distinguishes 'average HR' from 'HR excellence.' New analytical capabilities mean we can discern what people are telling us by their actions rather than what they say they would do. The Power of People is an excellent book describing how to harness organizational capabilities using workforce analytics to predict what workers are most likely to do in the future and therefore how to impact business outcomes." -Alan Wild, Vice President Human Resources; Employee Relations and Engagement, IBM

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