The Role of HR in Reinventing Organisations: Embracing People Analytics

#wfas2016 @AndySpence
Andy Spence, HR Transformation Director, Glass Bead Consulting
The Role of HR in Reinventing
Organisations: Embracing People
Analytics

“Without data you are just another
person with an opinion”
W. Edwards Deming
“Without questions, you are just another
person with data”
THE SCIENTIFIC METHOD AS AN ONGOING PROCESS
MAKE
OBSERVATIONS
DEVELOP TESTABLE
PREDICTIONS
THINK OF
INTERESTING
QUESTIONS
FORMULATE
HYPOTHESES
GATHER DATA TO
TEST PREDICTIONS
DEVELOP GENERAL
THEORIES
REFINE, ALTER,
EXPAND, OR REJECT
HYPOTHESES

1. What features will successful organisations have in the future?
2. What impact will this have on HR and People Management?
3. What are the main opportunities of the Quantified Workplace?
4. Why has HR struggled with transforming itself?
5. What are the main challenges with our current HR Operating
models?
6. What are challenges of People Analytics and how do we
overcome them?
7. How can People Analytics help transform HR?
“Interesting” Questions ?

REINVENTION OF ORGANISATIONS

STRATEGY EATS EVERYTHING FOR LUNCH
STRATEGY CULTURE

TECHNOLOGY IS EATING THE WORLD
TECHNOLOGY

“Robot and Frank”

“The majority of children born in rich countries today can expect to
live to more than a 100”

Here are 25 million global freelancers to add to your
#talent pool. 9m @Upwork 16m @freelancer #GigEconomy

37% of British workers think their jobs are meaningless
YouGov

Cognitive Diversity

“92 percent of companies believe that redesigning the organization is very
important or important, making it No. 1 in ranked importance.” Josh Bersin

“Management 1.0 at its core is a mash-up of military command structures that
go back thousands of years layered with the discipline of industrial
engineering, which goes back maybe 120 years” Gary Hamel
MANAGEMENT 1.0
Formalisation
Standardisation
Specialisation
Hierarchy
Unity of command
Conformance
Extrinsic rewards
MANAGEMENT 2.0
Experimentation
Disaggregation
Meritocracy
Communities
Markets
Openness
Freedom

• Annual performance reviews
• Employee Engagement Surveys
• The Bonus
• Change Management
• Project Management
• Command and Control
• Best Practice
• MBTI
• Others ?
EVERYTHING MUST GO…?

PRE SCIENCE
MODEL CRISIS
NORMAL SCIENCE
MODEL DRFIT
MODEL
REVOLUTION
PARADIGM CHANGE
THE
KUHN CYCLE
Are we in a “Model Crisis” ?

HR and People Analytics need to be involved in all of these
• Challenge existing frameworks, assumptions and ways of working
• Evolve their strategy and business models
• Have a broad “work” strategy and plan
• Will use insights from behavioural science
• Adopt better management & organisation structures
Successful organisations in the future?

THE QUANTIFIED WORKPLACE

Your Virtual Workplace ?

Co-occurence -> people who “say X also say Y” in employee feedback
from Workometry

Who will lead change in your organisation?
Identifying influential employees @TrustSphere

DIGITAL TAYLORISM

HR TRANSFORMATION
25%
5
70% 40%
40%
20%
*Percentage are for illustrative purposes only
% = RESOURCES
HR TRANSFORMATION

HR Operating Model
TECHNOLOGY EMPLOYEES
HR Strategy
Business Partners
Centres of expertise
Vendor Management
People Analytics
Programme Management
HR Service Centres
@AndySpence

Has the amount of time spent by HR as a Strategic Partner increased
OR decreased since 1995?

Critique of current HR Operating Models

"I did not create it, but observed, researched and wrote about it“
Ulrich on the HR Ulrich Model

HR Transformation – Lessons Learnt
1. Ignore Best Practice -> Do your own Organisation Design from
first principles
2. Look at future trends to make sure model is “fit for the future”
3. Don’t start with the end state in mind – start the journey with
the right questions
4. HR need to be workforce “Technology Champions”
5. Watch out for Silo’s in delivering HR Strategy
6. Design thinking – think of managers perspective
7. Don't transform stuff that should not be done at all HT #Drucker

Some challenges HR Analytics needs to overcome…

We prefer “gut feelings” to make people-based decisions

The Peak of inflated expectations

HR does not need Big Data, or Big Pants,
It needs BIG QUESTIONS

We need the right TOOLS for the job

Low confidence in the underlying frameworks

What causes employee productivity ?

Challenges with HR Analytics
Challenge Possible solutions ?
1 We prefer “gut feelings” to make people-based decisions Find the middle ground
2 The Peak of Inflated Expectations Set realistic expectations
3 HR doesn’t need big data, it needs big questions Cast your net widely, coach HR on hypothesis
testing
4 HR Systems, Data quality and scope of People Analytics
tools
Keep sharing requirements with technology vendors
5 No confidence in the underlying frameworks Collaborate with academia and peers in other
organisations
6 Show me the Money All paths lead to productivity
7 Structural issues with HR Operating Models Use data and evidence to work out which practices
work best

HOW HR ANALYTICS CAN TRANSFORM HR AND
ORGANISATIONS
HR

1. Challenge existing frameworks, assumptions and ways of
working
2. Look at future trends to make sure model is “fit for the future”
3. Sort out the foundations before relying on the “sensors”
4. Cast the net widely on questions and test hypotheses
5. Continue to develop employee Trust, particularly with new
Technology
6. Ignore Best Practice -> Do your own Organisation Design from
first principles
7. Don’t start with the end state in mind – start the journey with
the right questions
8. Become workforce “Technology Champions”
HOW HR CAN REINVENT ORGANISATIONS BY EMBRACING PEOPLE ANALYTICS ?

HR
@AndySpence
Andy@GlassbeadConsulting.com
+44 (0) 1273 888 188
www.GlassBeadConsulting.com/hr-transformer-blog
Let’s continue the discussions…

The Role of HR in Reinventing Organisations: Embracing People Analytics

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