103 HR Metrics for HR Strategists

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103HR Metrics forHR Strategists

• Theresa M. Welbourne, Ph.D.
• President and CEO, eePulse, Inc.
• Adjunct Professor, Michigan Business School
  Executive Education

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Agenda

• Process notes
• Handout on IHRIM CD
• If want articles
• For these slides www.eepulse.com

• Big Myths, Big Opportunities
• Real-Time Research
• Metrics in Action Case Study
• QA Talk About Possibility

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Big Myth 1

• HR Metrics
• Crystal Ball Gazing

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Big Myth 2

• HR Metrics
• Somewhere Over the Rainbow
• Truth
• Respect
• Real answers
• Nirvana

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Big Opportunity 1 People

• Agency theory perspective
• Organization suffers when information not in
  hands of owner
• Information asymmetry problem
• Management can solve problem and increase
  performance
• By giving employees VOICE
• Accelerate knowledge management

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Big Opportunity 2 Performance
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Big Opportunity 3 Profits

• Clients Have . . .
• Changed Courier delivery
• vs. overnight shipping
• Saved 4,500
• Replaced Conference calls
• instead of regional meetings
• Saved 24,000
• Improved Customer service call process
• Saved 700,000

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HR Bonus Professional Stature
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Where To Start?

• Where to begin?

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My choice Research

• Search for a
• systematic
• model of
• HR Metrics

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Research Starting Point

• Organize the known
• Research the unknown

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The Known
Succession
Movement
Productivity
Training
Compensation
Benefits
Turnover
Absenteeism
Traditional Measures
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Add the Unknown
Data about people
Data from people
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eePulse Asked . . .

• Users of HR Metrics
• CEOs
• VPs
• Senior Executives
• Data ABOUT people
• Data FROM people

Info. You Need to Successfully Run Your
Organization?
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Results Data About People

• 985 data types
• Skills
• Financial
• Performance

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Distribution
Skills Education Age Math skills
Financial
Financial Count of ees Sum pay levels, Cost of
benefits, etc.
Performance
Skills
Performance Output Safety Productivity
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Type of data being used
Examples of ratio data Revenue per
employee Support personnel to total
population Direct to indirect FTEs Gross profit
per employee
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Results Data From People

• 1,041 data types, including
• Continuous improvement
• Customer-related data
• External environment

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Distribution
Continuous improvement Process change Ideas
Knowledge
Environment
Customer Needs and wants Experience Ideas
Continuous Improvement
Customer
Environment Competition Trends
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Quantitative vs. Qualitative Data

• Qualitative data examples
• Client hot issues
• Work processes
• Strategic partnerships
• Anticipated problems
• Decisions impact operations
• Product failures
• Reasons not meeting deadlines
• Obstacles to peak performance

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HR Implications
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Leveraging the Framework
Data about people
Data from people
Add data FROM people (not about feelings) BUT
ABOUT THE BUSINESS PROBLEMS TO BE SOLVED AND
OPPORTUNITIES TO BE PURSUED
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Leverage Both Data Sets
Data about people
Data from people
Provide data to ALL managers so they can take
action WHEN needed
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Case Studies

• Washington Mutual Video Clips
• ROI Story For Financial Services Firm

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Manager Voice Washington Mutual
Click Here To View Video Approx 15 megabytes
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Case Study 2 Financial Services

• Business landscape
• Leader profile
• Technology solution

• Their experience
• Pulse survey engine 20,000 employees
• 10-month experience (2003 data)
• 500 managers receiving data
• 500 managers trained in the art and science
  of Data and Dialogue-driven management
• Weekly, monthly and quarterly reports

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Metrics in Action Overall Results

• People wins
• Engaged and energized employees
• Work environment improved
• Managers skills improved
• Performance wins
• Key problems prioritized big wins quickly
• Shared best practices (knowledge management)
• Customer opportunities pursued immediately
• Profit wins
• 1MM saved in first month of data use
• Conservative estimate 17MM saved in first 10
  months

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Metrics in Action Savings Specifics

• Improving communications reduced turnover
• 33 of managers saved up to 50k each
• Clarifying roles, resources improved productivity
• 24 of managers saved up to 500 hours
• Resolving facility, environment issues reduced
  operating costs
• 32 of managers saved up to 50K

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A Caveat
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Management Barriers

• What business have you with the Great Oz?

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HR Barriers Old Habits

• In many organizations, existing HR systems are
  major impediments to creating agile workforces.
  For the most part, HR systems are designed to
  reduce variability and to standardize behavior,
  not to promote flexibility and adaptive
  behavior.
• Richard A. Shafer, Associate Dean
• Exec. Director, Center for Leadership in Dynamic
  Organizations
• Johnson Graduate School of Management, Cornell
  University

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Transform How Data Is Used
INTER-ACT with DATA vs. RE-ACT to DATA
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Transformation Your Role
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Change Your Organization
Click Here To View Video Approx 4 megabytes
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Making Myths A Reality
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Lets Talk About PossibilityFirst with person
next to youSecond share with rest of group
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IHRIM needs your feedback!Please complete a
session evaluation for 103 HR Metrics for HR
Strategists

• Theresa M. Welbourne
• Thank You!