People Analytics - Making it a Sustainable Practice (Live it.)

We continue our look at the ways we can make data driven HR a sustainable capability - one that is ongoing and evolving. We take a look at component 3 of our change management approach: Live It.  Here we look at the tools required to continually execute on your analytics plan. We also look at the important steps of measuring and reinforcing success so that the momentum is not lost. We offer a example of calculating ROI from one of our clients.   [This is an excerpt from our Playbook 4 – A Practical Guide to Becoming Data Driven.]

Change Management for People Analytics

Live It: Tools in Place

Part of developing your plan will be to understand and define the requirements for the tools, resources and support mechanisms which need to be in place for implementation to be a success.

“Tools” which might be considered:

  • Communications and Training Plans
  • Briefing, working or training sessions to introduce and instruct impacted employees on what data driven HR should mean to them
  • These 4 Playbooks
  • Cheat sheets on the new reports, analytics, data points and metrics they will start to see
  • Interpretations and instructions on thresholds and triggers - and how to respond
  • Access to the reporting and analytical tools/platform
  • Checklists, processes or standard approaches for sharing insights, obtaining input and contextual understanding
  • Checklists, processes or standard approaches to driving a decision, implementing change and tracking benefits

Live It: Reinforcement

This final component to this simple change management methodology is Reinforcement.

Reinforcement should be extended to include defining success criteria, measuring results, harvesting benefits, and celebrating success.

While the artform of reinforcement will be unique for you, your business and clients, there are five fundamentals you shouldn’t forget.

  1. Defining success criteria should not be done in a vacuum - you must engage stakeholders (senior level and the front-lines) in defining a jointly agreed picture of success.
  2. At the individual and team level, the recipient of reinforcement and recognition has a personal and preferred style - use the approach which will elicit the best response to your recognition.
  3. Reinforcement is about managing performance and ensuring you are accomplishing the goals you set out to accomplish. This might mean a course correction - a rescoping activity - or a redefinition of what is achievable. Just be timely, honest and upfront with your governance committee (See Playbook 3).
  4. Remarkably, “Business Case Realization” is incredibly easy to ignore - in fact, we are often systematically forced to move onto the next activity before we have captured results - and metaphorically “banked the winnings”. You must try and avoid this pitfall at all costs:
    1. Remember, the only reason why you’ve been trusted to invest in data driven HR is to chase juicy business outcomes.
    2. You’ve sold this initiative on a business case - so you must spend some time quantifying and counting your accomplishments and success - and sharing that with those that matter.
    3. Simply determine the ROI of your initiative
      1. On one side of the ROI equation you will articulate the “New Value” you have created through this initiative.
      2. On the other side of the equation, articulate the Cost of the initiative (days effort in working this project can be converted to a daily internal loaded cost rate). You will use this as your denominator.
      3. Subtract the Cost from the New Value and call the result your “Net New Value” - use this as your numerator.
      4. Divide the Net New Value by Cost and multiply by 100.
      5. You now have your Return on Investment for this data driven HR project.

ROI Calculation - Example

  • Here’s an example from a technology client of ours at PeopleInsight:
    • The turnover of one specific Key Technical Role decreased by 25% in the first year after implementing analytics tools which gave managers deep visibility into their turnover – enabling them to segment on-the-fly.
    • The VPHR directly attributed the impacts to having increased visibility.
    • This resulted in a cost avoidance of approximately $750k for this year.
    • The cost of investment was less than $25k.
    • The Net New Value is $750k-$25k = $725k
    • The ROI of this investment in data driven HR was:
      • ($725k divided by $25k) x 100 = 2,900%
      • Yes, 2,900% :)

And don't forget to  Celebrate your Success - however that looks in your organization.  


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