Human Capital Intelligence, Requirements and Strategy

Executive Health System: Performance Management for the

Planning of Human Resources and Health Expenses Policies

Pietro Betto – BD Manager HR Applications SAS Italy

Agenda

9

The new directions for the Corporate Strategy

9

HR Performance Management

9

Regione Umbria project

Agenda

9

The new directions for the Corporate Strategy

9

HR Performance Management

9

Regione Umbria project

(*) October 2005, James Holincheck

“

Exploit the next generation of Workforce Analytics to Manage Human Capital

”

Gartner

Next-generation

workforce analytics

will help

companies

gain more insight

into how they

derive

business value from human capital…

..however, HR organizations will be challenged to

build and implement new skills and use

tools and

techniques

to be successful.(*)

Analysts continue to stress the importance of using existing

Analysts continue to stress the importance of using existing

transactional data to measure the impact of initiatives

Human Capital Management - Strategy

ƒ

Manage HR as an asset by itself

ƒ

Manage HC contribution

•

Performance Management

•

Profitability, Revenues

Corporate

Strategy

HCM

Strategy

Four Barriers to Strategy Implementation

Only 5% of the workforce

understands the strategy

60% of organizations don’t link

budgets to strategy

Only 25% of managers have

incentives linked to strategy

85% of executive teams

spend less than one hour per

month discussing strategy

9 companies out of

10 fail to execute

strategy

The People Barrier

The Vision Barrier

The Management Barrier

The Resource Barrier

Human Capital Intelligence

SAS for Performance Management

ƒ

Anticipate, predict and forecast workforce changes

ƒ

Analyze trends while they are still current

ƒ

Deploy and leverage human capital using objective

evidence

ƒ

Design human capital strategies which increase the

shareholder value

Questions Answered with Information

ƒ

How many employees were hired last year?

ƒ

How many employees are nearing retirement age?

ƒ

How many absences took place last year? Last quarter?

Last week?

ƒ

Lists of employees by organizational hierarchy.

ƒ

How many employees were “Top Performers”?

Questions Answered with Intelligence

ƒ

Are merit increases and bonuses having a direct impact

on performance and employee satisfaction?

ƒ

Which are the competencies within my organization and

how do I build upon those competencies to succeed in

the future?

ƒ

For which reasons do the employees leave?

ƒ

Would it be less expensive to incent some of those

employees to stay on? Or encourage them to retire

sooner?

ƒ

Which reasons have the most statistical significance to

why employees leave?

ƒ

What is the risk to the organization if employees leave?

ƒ

Are the “Top Performers” leaving?

Questions Answered through Predictability

ƒ

Which employees are likely to retire in the next 5 years?

ƒ

Which skill sets will need to be replaced?

ƒ

Which employees are at the highest risk of voluntarily

leaving the organization?

ƒ

What is the profile of employees most likely to leave?

ƒ

What is the profile of employees having a higher than

average rate of absenteeism?

ƒ

What will be my salary budget for next year, including

leavers, new hires and promotions?

Why it is difficult to obtain Intelligence Challenges?

ƒ

“Input driven”

≠

“Output focused”

ƒ

Technology Infrastructure

ƒ

Inadequate human capital strategies

ƒ

Measurement

Skill Analysis

HR Analytics Intelligence

Predictive Models

What-If

Forecasting

KPI

HR Scorecard

MBO

HR BenchMarking

HCM

Intelligence

CLEANING, TRANSFORMATION, EXTRACTION & LOADING

Intelligent Reporting on Human Capital

Predictive modeling

Indicator A

Indicator A

Indicator C

HCM Key Performance Indicators

Regione Umbria

ƒ

Superficie 8.456 kmq

ƒ

Popolazione 867.878

Sistema Sanitario Regione Umbria

• 4 Aziende Usl

• 2 Aziende Ospedaliere

• 22 Strutture di ricovero

• 800 Medici di medicina generale

• 11,000 dipendenti

Azienda USL 1

Azienda USL 2

Azienda USL 3

Azienda USL 4

Azienda Ospedaliera di Terni

Azienda Ospedaliera di Perugia

Executive health system

ƒ

Create health regional data warehouse with certified

data

ƒ

Based on common data used by different regional

structures (eg. data on hospitals, patients, doctors,

nurses)

ƒ

Based on a single data base to support different kind

of analysis (admissions to hospital, drugs use and

prescriptions, specialistic medical services) and

different sw tools (static report, olap report, …)

ƒ

Manage historical information on detailed data

ƒ

Build sw components able to switch from a sintetical

representation to a detailed one

Estrattori

Architecture

Controlli e

Omogeneizza

zione

Flussi

Regionali

Anagrafiche

Data Warehouse II Livello

Analisi

FASE E

FASE T

FASE L

Data Warehouse I Livello

Risorse Umane

Risorse Umane

F

F

Appropriatezza

Appropriatezza

Farmaceutica

Farmaceutica

Specialistica

Specialistica

Ospedaliera

Ospedaliera

…

…

The HCM Projects: Requirements

ƒ

Strategic control of data

ƒ

Systematic organization of data

ƒ

Data analysis

Æ

creation of information

ƒ

Creation of the internal information network

Æ

information circulation

Æ

communication

SUPPORT SYSTEM FOR STRATEGIC

DECISIONS

ƒ

Creation of updated and complete data bases

ƒ

Indicators for the monitoring of the employee management policies

SAS Choice

ƒ

Short project

times

and limited

workgroup

ƒ

Skills

and metodology specific for the

HR area

ƒ

Product oriented on DW tasks

ƒ

Integration of multiple data sources

Project Goals

ƒ

Clean snapshot about the usage status of

human resources within the health

environment

ƒ

Simulations based on new decision

assumptions.

ƒ

Quick highlighting of critical aspects and

search for adequate answers.

For example

Organization

Organization

and personal data

and personal data

ƒ

Historical dimensional trend

ƒ

Benchmarking between departments

ƒ

Events (promotions, career plan, hiring, termination, etc.)

Costs

Costs

ƒ

Budget analysis and benchmark

ƒ

TFR analysis and impact about retirements

For example

What

What

–

–

IF

IF

ƒ

If increase RAL or change organization.

ƒ

Impact analysis in real time

Absences

Absences

analysis

analysis

ƒ

For reasons and for activities

ƒ

Abscence trend for job descrption

Benefits

Data management

Analysis system

Informations

Benchmark between Departments

Datawarehouse

Resources control

Costs analysis

Agenda

9

The new directions for the Corporate Strategy

9

HR Performance Management

9

Regione Umbria project

Human Capital Intelligence: Some Application Areas

ƒ

Career Paths

ƒ

Predictive Analyses

ƒ

Simulations and What-If Scenarios

ƒ

Employee Browser

Workforce

Workforce

analysis

analysis

ƒ

Hiring / Terminations

ƒ

Acquisition processes

ƒ

Transfers / Grade increases

How many employees were in the company on

dd/mm/yyyy?

Career

Career

paths

paths

ƒ

Minimal seniority in position is?

ƒ

Minimal educational requirements are?

How many changes in position will we have in the

next years? And who will be interested?

Career

Predictive

Predictive

Model

Model

for

for

retirements

retirements

ƒ

Retirement regulations (05-01-1998)

ƒ

Age, years of service and

redemptions

ƒ

Forecast window: 3 years

ƒ

Considered impact of Dini’s law for 2008

How many likely retired people will we have in our

company during the next years?

Retirements

Skill

Skill

Assessment

Assessment

Web Interface for a quick and efficient survey

ƒ

How does the technical/administrative staff

assess

his/her skills?

ƒ

Are the results

comparable to the assessment

of their managers?

ƒ

How to

boost

the skills and how to

optimize

the

employee performance?

What

What

-

-

If

If

ƒ

New Salary policy

ƒ

New Organization

ƒ

Career & succession plan

HR Performance Management

HR Performance Management

ƒ

Compensation Tool

ƒ

Skill Evaluation

ƒ

Career & succession plan

How well are my employees performing? And how

much do they cost?

One of the needs of a HR director is to have a feedback

mechanism in order to optimize the investments on the

human capital.

This is due to the fact that the human capital is one of the

main assets of the company, both from a strategical and

economic point of view.

The extent of a strategy gives value to the strategy itself

Scorecard

Pietro Betto

Mail to: [email protected]