Transcript Document

Proactively Discovering and Diagnosing Business Opportunities and Risks
Special Thanks to Workforce Management
©Copyright OrcaEyes Inc. 2007-2011
1)
2)
Feedback , questions and concerns from workshop
participants
Dr. Jac Fitzenz on Integrated Reporting and
Predictors
3)
The Science of Data Analysis
4)
Key Workforce Drivers in Delivering Business Value
5)
Transform Business Risk into Unprecedented HR
Opportunities
Please send in questions, comments, problems or successes
throughput this session!!! We will not mention names. Please include
your industry if possible on your notes

You will deliver real world strategic business value to leadership
using your own data during this workshop series
◦ Can upload data for a single business unit or department
◦ Pick “Friendlies” with Problems for increasing success
 Whether uploading all company data or an individual business department or
business unit

If you have no actual company data, use OrcaEyes demo data for
workshop series
◦ [email protected], password is “hospital”

You can catch-up at any time
◦ All Previous sessions are recorded at:
 http://www.orcaeyes.com/InsightsWebinarArchives.html

Utilities
◦ “We finally have the COOs attention to the severity
of our aging demographic problems. In the past, he
just dismissed it. All we had to do is show the
charts with supporting data for 3 key positions and
he is fully engaged in solutions. With less than 3.5%
turnover the last two years and no growth planned,
leadership was confident we didn’t have any real
Human Capital problems. One of these groups is
billable. Just being able to have the conversation
regarding potential revenue at risk due to gaps
from aging demographics appears to have altered
our relationship with the COO.”

Insurance
◦ “We showed our President PerformanceTurnover™ by
business unit. It was really bad in 2 departments. He
immediately went off and said, ‘I knew I had poor
leadership in those 2 units and frankly I neglected
dealing with it because their numbers were decent.
However, running out top talent from the company
ensures long term under performance. This is
interesting. Do you have anything else to show me?’
◦ We were not ready for that response so the President
asked us to get our ducks in order and present more on
potential business risk in 2 weeks.”

Technology
◦ “I set a meeting with the Controller and shared that HR
may be able to add $.04 - $.05 to earnings this year
with minimal investment by handling overtime positions
with higher levels of importance. She was very interested
and started to drill down on details. I was pretty
uncomfortable.
◦ I didn’t have her answers. She was interested enough to
tell me that I could come back when fully prepared, but I
really don’t know how to have that conversation yet. I
don’t get many chances to speak with our Controller.
What do I need to do?”

Healthcare
◦ “I must admit that I am a neophyte at strategic
analytics. But this is really cool stuff. My boss
seems to have a better understanding of this.
◦ Many people do not understand that we in
healthcare are still dealing with high turnover and
shortages, even in these bad economic times,
including much of our leadership. Do you really
think our leaders will listen to us? They view us as a
cost center and budgets are set for 2011.”
HC Source
INTEGRATED REPORTING
STRATEGIC
Human Capital
Process Management
Customer Response
Financial Outcomes
OPERATIONS
Costs
Time Cycles
Quantity
Quality
LEADING
Skills
Commitment
Trends
Investment
HC Source
STRATEGIC METRICS
Revenue per FTE
Human Capital Value Added
Human Capital ROI
Pay as Percent of Revenue
Benefit Cost Trends
MC Turnover
HC Source
OPERATIONAL METRICS (Lagging)
Cost of Hire, Train, Retain, HR Budget/Ratio
Time to Hire, Train, Process
Quantity Hired, Trained, Processed
Quality: Turnover Percentage: MC & Total
Reaction: Employee & Manager Attitudes
HC Source
LEADING INDICATORS & PREDICTORS
Readiness
Leadership
Engagement
MC Retention
L&D ROI
Branding
Capabilities
Absenteeism
HC Source
THANK YOU
DR JAC FITZ-ENZ
[email protected]
408 223 7750
◦ Data Overload
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Too much data
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Non-correlated data
◦ Start with understanding your primary business objectives
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Read and make notes of 10k and listen to quarterly analyst
calls (if public)
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Read Mission Statements and financial/operational
disclosures in the public sector
◦ Sound transparent formulas are essential
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Ask “Friendly” finance contacts to review formulas
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And ask for advice on additions she/he can think of
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It’s not true that Finance people are not friendly 
◦ The criticality of color-coded dashboards
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ERP, Networks, Supply Chains, Plants and Fabs, Load
Balancing, Financial Forecasting, KPI presentations to Board of
Directors and on
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Key drivers and trends at a a glance
◦ Correlation – Understanding Critical Relationships:
 Starting from the Business or Organization to
 HC-Business Risks and Opportunities to
 Human Capital Drivers to
 HR Functions
Strategic KPIs
HC-Business Risks
Additional HR Resources
HC Drivers
HR Functions
Strategic Business KPIs
Risk & Opportunity Indices
Human Capital Drivers
HR Functions
FINANCIAL
OT Costs
Lost Revenue
Board Risk
Financial
Strategic Plans
Missions
Lost Opportunity Costs
 Sales & Billable Revenue
Severance/Excess Payroll Costs
Total Labor Costs
 EFTs
 Contract/Temp
 Outsource
 Vendor Contracts
 Consultants
Downsizing Costs
Hiring Costs
Training Costs
Benefit Costs
Insurance Costs
OPERATIONAL
Intellectual Capital
Operational Productivity
Operational Efficiency
Customer Satisfaction
Accidents/Errors
Procedures
Thefts
Project Effectiveness
 Time
 Cost
 Overruns
Organizational Readiness
 Position Gaps
 Skill Gaps
 Position Surplus
 Skill Surplus
Time-to-Fill
Attrition
 Reasons
Performance Turnover
Aging Demographics
Retirement
Leave
Engagement
Manager Satisfaction
Top Performer Flight Risk
External Talent Supply
External Talent Cost
Recruiting
Training and Development
Retention
Compensation
 Base
 Bonus
 Stock Options
 OT
Manager Training
Diversity Programs
Mentor Programs
Strategic Business KPIs
Risk & Opportunity Indices
Human Capital Drivers
HR Functions
◦ Potential HC-Business Risk is HR’s Friend
 You are now strategic to the Business or Mission
 You can now increase executive bonuses and stock options
 “Potential and Directional” Business Risk
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That must be reviewed and accepted by leadership
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Or modified which means immediate BUY-IN
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This eliminates risk to HR
◦ Data-backed Correlations
 Translated into the language of business
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Board and Mission KPIs for each company/organization
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Specific language in terms of business risks and business drivers for your
organization
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Build custom Correlation Template for each Leader or Business Head and continue to
show trends of the HC-Drivers impacting the specific KPIs of each leader, either
monthly or quarterly

Each leader knows their KPIs. HR knows the HC Drivers
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You are now teaching leadership the business of HR - Cooperatively
#
4: Taking it to the C-Suite: Delivering Measureable Human Capital
Value through Specific HR Solutions, January 27, 2011
Building a business case around key programs that is fundamentally grounded in workforce
planning enables you to present risks and opportunities based on sound data and financial
consequences. In part 4 of Workforce Planning Demystified, we'll present a method for using
your metrics and analytics as supporting evidence for why your HR organizations requires
funding and support to begin taking action today. We'll discuss:
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How to convey the Value Proposition to Leadership and Gain their Buy-In
How Workforce Planning will transform the HR function and how you'll be impacted in your
new role as strategic HR
How to design a unified HR solution to solve business problems
How to design Human Capital metrics for leadership in business terms and speak the
leadership language
The specifics of designing Board of Director reports to meet the new SEC Board risk
management regulations