Transcript Cognos Workforce Analytics Bill Maloomian – Regional Manager Performance Applications Cognos Leadership • • • • • • • Leader in Performance Management $825.5 million annual revenue (FY2005) $522.9 million in.

Cognos Workforce Analytics
Bill Maloomian – Regional Manager Performance Applications
Cognos Leadership
•
•
•
•
•
•
•
Leader in Performance Management
$825.5 million annual revenue (FY2005)
$522.9 million in cash, no debt
23,000+ customers in 135+ countries
80% of Fortune 1000; target Global 3500
Strong channel: 3,000+ channel partners
Competitive advantage:
- 3,300+ employees
- 850+ strong R&D team
- 2,000+ customer-facing field force
HR Industry Footprint
 Cognos Performance Management solutions have helped
many leading organizations make strategic decisions
around staffing, planning, and HR budgeting that support
company goals
For success stories, see www.cognos.com/solutions/department/human-resources/customers.html
The Experience to Help You Succeed
 Cognos Applications
 Over 300 Customers
 Over 7 Years of Wisdom
“I wish we had this 10 years ago. We
would’ve been so much further ahead.”
— Keith Lewis, Vice-President, Business
Development Advantis Technologies, inc.
Reflections on the Value of Human Capital
“We spend all our time on people. The day we screw
up the people thing, this company is over.”
-
Jack Welch – Chairman & CEO General Electric
Workforce Management Landscape


CEOs Need HR to Act Strategically

Corporate success does not match corporate goals

Poor alignment between business strategy and HR strategy

67% of HR & IT functions do not align with corporate or
business unit strategies *

HR Practitioners cannot get timely, actionable insights into
their workforce
Other Industry Challenges

Graying workforce/looming skills shortage

Increasingly competitive labor market
Need: timely visibility into workforce measures to optimize planning, decisions

More fluid workforce
* The Office of Strategy Management, Robert S. Kaplan & David P. Norton, Harvard BusinessReview, October 2005.
HR: Impact on Bottom Line
 HR costs are a significant % of
total operating costs!
60% of HR Executives cite
better alignment of HR
metrics with corporate
strategy as a top priority
30% Compensation
1% HR Admin
8% Benefits
71% agree that providing
tools to analyze HR
metrics is their biggest
challenge
4% Staffing
57% Other
Operating Expense
43% People costs
2% report having a fully
automated HR Metrics
system
Source: Saratoga Institute, Talent Market Group
Source: Corporate Leadership Council
Challenges in Human Resources: Retaining Key
Employees and Cultivating Talent

Financial Services: More Than Half of Customer Defectors
Switched Firms Because Their Broker Switched.


Public Sector: By the End of 2005, 40% of All Federal Workers,
and 71 % of Senior Executives, Will be Eligible to Retire.


Source: Strategic Recruitment for Government, The Performance Institute, February 2003
Manufacturing: 80% of US Manufacturers have Serious
Shortage of Qualified Workers.


Source: The Loyalty Effect, Frederick F. Reichheld, HBS Press 1996
Source: 2005 Skills Gap Report – A Survey of the American Manufacturing Workforce,
National Association of Manufacturers, Deloitte Consulting
Utilities: 40% of Senior Engineers and 43% of Shift
Supervisors Eligible for Retirement by 2008

Source: Workforce Trends to Deliver Utility Industry a Knock-Out Blow, Hay Consulting
Challenges in Human Resources: Disconnect
Between Corporate Strategy and HR Practices
"To what extent does your HR
organization have the capacity to
effectively respond to the CEO’s
priorities?"
100%
80%
“Growth. Responsiveness. People.
The three top issues on the
CEO’s agenda.”

Can’t achieve “Growth” and
“Responsiveness” without
“People”

Most Chief HR Officer’s don’t
feel they have the resources
necessary to address the
CEO’s priorities
60%
40%
20%
0%
Less Then Required
Moderate
Relatively Responsive
Very Responsive
Source: IBM Global Human Capital Management Study
So What? Retention and Workforce Performance
Management Have a HUGE Impact on Profitability
$27,044
High Performance Work
Practices* Lead To…
$18,641
$3,841
Increased Profit per
Employee
Increased Value per
Employee
Increased Sales per
Employee
* “High Performance Work Practices” include comprehensive employee recruiting and selection, incentive compensation and
performance management, and extensive employee involvement and training.
Source: Mark A. Huselid, “The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial
Performance,” Academy of Management Journal
Does HR Align with the Business?
"Do You Use Now - and Would You Like to Use in the Future - Proft
per Employee as a Key Metric for HR Effectiveness?"
76%
40%
41%
32%
Use Now
Use in the Future
SVP & Below
Source: Veritude, 2005
C-Level
What is Cognos 8 Workforce Performance ?

A next-generation packaged analytic application that :
1. Provides HR, executives and line managers with timely
insight on key workforce measures

Reporting, Analysis, Metrics

Headcount, turnover, workforce demographics, retention,
employee performance, etc.

PSFT 8.3 / 8.9 (SAP v5.0 under development)
2. Transforms transactional workforce data in to actionable
information

Complete consistent, relevant, accurate, auditable

Drill through to detail
3. Enables organizations to manage and optimize their most
costly asset
What is Cognos 8 Workforce Performance ?
Built upon an Adaptive
Application Framework that :
1. Model-driven approach VS
programmatic-driven approach
2. Configures to organizationspecific HR practices
3. Model driven approach reduces
TCO and increases business
agility
The Current Situation
SKILL
LEVEL
HIGH /
MEDIUM
TIME
ERROR
RATE
MEDIUM
HIGH
BI AUTHOR
HIGH /
MEDIUM
MEDIUM
Authored BI
(Reports, Analysis, Metrics)
HIGH
Semantic Layer
BI MODELLER
HIGH
LONG
MEDIUM
Warehouse
WAREHOUSE
DESIGNER
HIGH
LONG
HIGH
ETL Code
ETL
DEVELOPER
HIGH
SOURCE
ANALYST
MEDIUM
MEDIUM
Peoplesoft
HCM
Custom
Source
Cognos 8 Workforce Performance
SKILL
LEVEL
HIGH /
MEDIUM
TIME
ERROR
RATE
MEDIUM
HIGH
BI AUTHOR
HIGH /
MEDIUM
MEDIUM
Authored BI
(Reports, Analysis, Metrics)Configurable
Information
Model
Supplied
HIGH
Semantic Layer
LONG
MEDIUM
Warehouse
WAREHOUSE
DESIGNER
HIGH
LONG
MEDIUM
Metadata
HIGH
ETL
DEVELOPER
SOURCE
ANALYST
Configurable
Warehouse
Model
Supplied
8
ETL Code
HIGH
C
O
G
Data Access
N
&
Integration
O
S
Content
MGMT.
BI MODELLER
HIGH
Portal
MEDIUM
Source Model
Generated
FM
Extension
Peoplesoft
HCM
Custom
Source
Security
ADAPTIVE
APPLICATION
FRAMEWORK
Cognos 8 Workforce Performance
SKILL
LEVEL
HIGH /
MEDIUM
TIME
ERROR
RATE
MEDIUM
HIGH
BI AUTHOR
HIGH /
MEDIUM
MEDIUM
HIGH
BI MODELLER
LONG
MEDIUM
Traditional
Approach :
Long &
Error Prone
BI Generator
Cognos
ROLE-SPECIFIC
(Reports,
Analysis, Metrics)Configurable
Information
:
REPORTS Approach
Model
ANALYSIS
Rapid &Supplied
METRIC TYPES Accurate
Semantic
Layer Generator
GENERATED
ADAPTIVE
ANALYTICS
INFORMATION
MODELLER(S)
HIGH
WAREHOUSE
DESIGNER
HIGH
LONG
HIGH
Configurable
Warehouse
Model
Supplied
ADAPTIVE
WAREHOUSE
HIGH
MEDIUM
MEDIUM
Source Model
Generated
FM
Extension
Peoplesoft
HCM
Custom
Source
C
O
G
Data Access
N
&
Integration
O
S
Content
MGMT.
Metadata
8
ETL Generator
ETL
DEVELOPER
SOURCE
ANALYST
FM MODEL
Warehouse
Generator
WAREHOUSE
ETL/DDL
GENERATED
Portal
Security
ADAPTIVE
APPLICATION
FRAMEWORK
Impact to Organizations
Implementation Time
Skill-sets Required
Best-Practices
Continuous Relevance
Upgradeable
Data Lineage / Auditable
Partner Value
From
To
Quarters/Months
Months/Weeks
Many & Highly
Significantly Reduced
Specialized Technical
Requirement
Complex Coding
Configurable
No
Yes
Hard/Rare
Yes
??
Yes
Low
High
Workforce Analytics v1: Subject Areas
 Headcount and Turnover Analysis
 Headcounts, Workforce Demographics, Hires, Transfers, Terminations
 Detailed granularity with Calendar (e.g. weekly) and Fiscal (e.g. monthly)
Snapshot Summaries
 HR Budget
 Compensation and Incentive Analysis
 All Earnings and Withholdings of All Employees
 Regular pay, overtime pay, incentives, bonus, regular hours, overtime hours
 By Pay Group, Pay Date, Company, Business Unit, Organization, Earnings
Type, Withholding Type, Dates
 Performance Review Analysis
 Employee Reviews, Ratings, Review Points, Total Points
 By Review Type, Employee, Review Status, Review Type, Organization,
Dates,
Cognos Workforce Analytics Helps You Improve
Profitability with Pre-packaged Workforce Management

Provides Timely Insights to Assist Workforce Management and
Stem Employee Attrition

Pre-Packaged HR Information

Analytic Paths Support Best HR Practices

Supports Key HR Process
Acquire
Which Skills Are Key?
Where is our Top
Talent Located?
What is the Right
Compensation for
Open Positions?
Where do we Need to
Hire to Meet the
Corporate Goals?
Deploy
How Do We Reward
Top Performers?
Where Do We Have
Excessive Sickness?
Are Employees
Aligned to the
Business Goals?
Optimize
What Affects
Performance of
Top Performers?
Are Performance
Reviews Timely?
How Many Employees
Are Ready for
Promotion?
How Many Employees
were Promoted
Last Year?
Retain
Where Do We Have
High Turnover?
Which Separations
are Avoidable?
Are We Motivating
Top Performers?
Are Top Performers
Leaving? Where?
Why?
Cognos 8 Workforce Analytics
MEASURES
Headcount & Turnover
Compensation, Incentive
Payroll &
Reconciliation Analysis
Performance,
Succession
Recruiting , Absence &
Accident Analysis
termination rate
FTE count
Human capital ROI
Time to hire
Turnover rate
....
Annual compensation
Benefit plan enrollment
Compensation % increase
Increase Variance
]Customer service award variance
Dependant count
Employee, Employer contribution
Employee opt out ratio
Incentive award
Hourly pay rate
….
Performance review result
Contribution factor
Maintained qualification count
Review result
Scarcity level
Succession percentage
Training % of revenue
….
Absence rate
Accident rate
Exposure hours
Accept ratio
Agency effectiveness
Cost to hire
Vacation days balance
Vacation days entitlement
MONITOR
ROI per employee
Headcount cost
Headcount variance
Requisition fulfillment cycle time
Termination cost per employee
Termination cost
Turnover rate
PLAN
OUTCOMES
With Supported Analysis By
Company
Headcount,
Planning
Organization
Incentive Pool variance
Benefit cost per employee
Merit Pool Variance
increase variance count
Compensation & Salary
Planning
Location
Responsibility Center
Payroll Liability
Planning
Job Position
Benefits Planning
Restructuring
planning
High Performance ratio
Low Performance ratio
Employee Development cost
Development cost per employee
High Performance turnover rate
Improve
Job Category
Growth
Vendor
and
Profitability
Assignment
Salary Plan Grade Step
Recruitment
Planning
Calendar Month
Fiscal Period
Absence days count
Accident Severity Rate
Accident Lost time Rate
Employee
Hiring Manager
HR agent
Learning Management
Completion, attendance ratios
Program, certification expenses
Activity profitability
Performance outcome ratios
Satisfaction ratings
...
Trained, certified headcount
Investment factors
Training cost factors
Revenue/expense ratios
An Example of Workforce Analytics: Today, HR
Can’t Meet Changing Business Needs
HR & Business Managers
“I need a report just like
this, only with everyone’s
previous manager.”
Many, Sequential, Very Technical Steps
A Long, Error-Prone Process
Build Report
Make Data
Accessible
Rebuild Data
Warehouse
Get Source
Data
Report
Request
Change Request
Gets Queued
Business Analysts & IT
Understand
HR Source
Requirements
Definition
Time
The Cognos Distinction
 Provides Actionable Intelligence
 Configurable Best Practices
 Role based Analytics, Metrics and Reporting
 Designed for HR, executives and line managers throughout the
organization
 Adaptive Application Framework
 Flexibility to change as business needs change
 Reduces IT complexity
 Reduces need for highly scarce IT resources and lengthy
development initiatives
 Immediate access to critical information, throughout the organization
In Closing…
“I Saw My Job As Allocating People And Dollars To Opportunities.
I Wasn’t Designing Products.
I Was Putting People Where I Thought They Were Right For The Job.
I Did That With My Partners in HR.”
-
Jack Welch, Chairman & CEO, General Electric
Backup Slides
 Anecdotes from the field
 Industry slides – the ones from the field session
 ROI / Case Study
 Deeper dive
 History of Cognos AA + Who is Cognos
Cognos 8 Analytic Applications
Adaptive Applications Platform
To Radically Change the Economics of Building, Maintaining
and extending Analytic Applications
Configurable Best-Practices Content
Business Pain Point Focused Applications
Targeted at All Levels of Management
to Enable Breakthrough Performance
Fin
Services
Customer
Performance
Manufacturing
Operations
Performance
Retail
Workforce
Performance
Cognos 8 BI Platform
Insurance
Financial
Performance
Cognos 8 Analytic Applications Architecture
Actionable Information
Out
Adaptive Analytics
Configures & Delivers Management Information
Adaptive Applications Platform

Role-Based Information Needs Model

Rapid Iteration to Meet Changing Business Needs

NO Report Authoring

Delivered Anywhere in the Organization
Configurable
Best-Practices Content
Cognos 8 BI Platform
Scalable, Service Oriented Architecture

Portal Services

Data Access Services

Security Services

Etc.
Data Warehouse Out
Metadata Out
Adaptive Warehouse
Automates Creation of Management Information

Loads Data Warehouse

Manages Data Warehouse Tables

Source & Target Metadata Creation

Exposes Business View of Data
Data In
Changing the Game for Analytic Applications
Implementation Time
Skill-sets Required
Best-Practices
Meets Changing Needs
Upgradeable
Data Lineage / Auditable
From
To
Months
Weeks
Many & Highly
Reduced Skill
Technical
Sets
Complex Coding
Easy (Configure)
No
Yes
Difficult & Expensive
Easy
No
Yes
Does HR Align with the Business?
"Do You Use Now - and Would You Like to Use in the Future - Proft
per Employee as a Key Metric for HR Effectiveness?"
76%
40%
41%
32%
Use Now
Use in the Future
SVP & Below
Source: Veritude, 2005
C-Level
Cognos Workforce Analytics Helps You Improve
Profitability with Pre-packaged Workforce Management

Provides Timely Insights to Assist Workforce Management and
Stem Employee Attrition

Pre-Packaged HR Information

Analytic Paths Support Best HR Practices

Supports Key HR Process
Acquire
Which Skills Are Key?
Where is our Top
Talent Located?
What is the Right
Compensation for
Open Positions?
Where do we Need to
Hire to Meet the
Corporate Goals?
Deploy
How Do We Reward
Top Performers?
Where Do We Have
Excessive Sickness?
Are Employees
Aligned to the
Business Goals?
Optimize
What Affects
Performance of
Top Performers?
Are Performance
Reviews Timely?
How Many Employees
Are Ready for
Promotion?
How Many Employees
were Promoted
Last Year?
Retain
Where Do We Have
High Turnover?
Which Separations
are Avoidable?
Are We Motivating
Top Performers?
Are Top Performers
Leaving? Where?
Why?
Cognos 8 Workforce Analytics
MEASURES
Headcount & Turnover
Compensation, Incentive
Payroll &
Reconciliation Analysis
Performance,
Succession
Recruiting , Absence &
Accident Analysis
termination rate
FTE count
Human capital ROI
Time to hire
Turnover rate
....
Annual compensation
Benefit plan enrollment
Compensation % increase
Increase Variance
]Customer service award variance
Dependant count
Employee, Employer contribution
Employee opt out ratio
Incentive award
Hourly pay rate
….
Performance review result
Contribution factor
Maintained qualification count
Review result
Scarcity level
Succession percentage
Training % of revenue
….
Absence rate
Accident rate
Exposure hours
Accept ratio
Agency effectiveness
Cost to hire
Vacation days balance
Vacation days entitlement
MONITOR
ROI per employee
Headcount cost
Headcount variance
Requisition fulfillment cycle time
Termination cost per employee
Termination cost
Turnover rate
PLAN
OUTCOMES
With Supported Analysis By
Company
Headcount,
Planning
Organization
Incentive Pool variance
Benefit cost per employee
Merit Pool Variance
increase variance count
Compensation & Salary
Planning
Location
Responsibility Center
Payroll Liability
Planning
Job Position
Benefits Planning
Restructuring
planning
High Performance ratio
Low Performance ratio
Employee Development cost
Development cost per employee
High Performance turnover rate
Improve
Job Category
Growth
Vendor
and
Profitability
Assignment
Salary Plan Grade Step
Recruitment
Planning
Calendar Month
Fiscal Period
Absence days count
Accident Severity Rate
Accident Lost time Rate
Employee
Hiring Manager
HR agent
Learning Management
Completion, attendance ratios
Program, certification expenses
Activity profitability
Performance outcome ratios
Satisfaction ratings
...
Trained, certified headcount
Investment factors
Training cost factors
Revenue/expense ratios
Key HR Challenge - Retention & Recruiting
70
Percentage of Respondents
60
50
40
30
20
10
0
Increasing
Workforce
Diversity
Managing
Global
Workforce
Retirement of
Baby
Boomers
Work/Life
Balance
Source: Becoming a Magnet for Talent, Global Talent Pulse Survey Results 2005, Deloitte
Poor Skills of
New Workers
Retention of
Key Talent
Attracting
New Talent
Smart Retention is Driven by Insight
Top 4 Tactics for Managing People Costs
Percentage of Respondents
60
50
40
30
20
10
0
Segment Workforce
by Performance
Source: Towers Perrin, January 2004
Differentiating
Rewards
Shift Rewards to
Variable Costs
Deferring Salary
Increases