I recently attended a session at the 2011 HR Technology Conference with Laurie Bassi and Jac Fitz-enz discussing the fact that HCM is now emerging as one of the sustainable sources of competitive advantage. I continue to be amazed that, after talking about the value of Human Capital for over 30 years, we – as an industry – are still struggling to “quantify” that value. The adoption of HCM analytics has also been slow to be adopted, but we are now seeing momentum in this area as well.
Dr. Jac Fitz-enz has written dozen of books on the subject (he’s published 11 books and over 290 articles, reports and book chapters on measurement and strategic management since the 1970’s) and Laurie Bassie, an industry thought leader in her own right, has just released a new book titled Good Company: Business Success in the Worthiness Era. Much of the discussion and case studies in this session not only suggest, but actually prove that companies with good HR practices and exceptional treatment of employees, outperform companies that don’t follow these documented principals by as much as 50%.
At PeopleSoft, at least for my almost 20 years here, we have been talking about using analytics to help prove the fact that “people” are a leading indicator of company success. Even with early versions of PeopleSoft HCM, we delivered tools to help extract and analyze HR data. Later, we delivered pre-packaged analytic KPI’s (key performance indicators) in our HCM analytics product called Workforce Analytics.
PeopleSoft has long valued input from our customer base and in listening to input from customer meetings and advisory boards and as technology innovations have escalated, we have continued to enhance our HCM product line with more comprehensive analytics capabilities to help companies evaluate the value of Human Capital. In addition, since our acquisition by Oracle, we have been able to exploit additional tools and technologies to compliment our HCM applications such as the innovative HR Analytics product and the new Fusion HCM products.
Several years ago, I defined 5 Levels of metrics that matter. These levels of analytics, listed in order from least impact/complexity to most impact/complexity, include:
- Information Distribution (standard reports)
- Metrics Delivery (dashboards)
- Contextual Embedded Analytics
- Correlated Analytics
- Predictive Modeling
We can turn the clock back to see a quick history of PeopleSoft and Oracle’s HCM analytics capabilities:
Level 1: Delivery of standard reports – headcount reports, turnover reports, time to fill position, and so on – from Release 1.
Level 2: Delivery of scorecards and dashboards, typically through HCM Analytics or Enterprise Performance Management capabilities from Release 7.
Level 3: Delivery of embedded contextual analytics – analytics are a part of a business process, not an after thought, one off report since Release 8.
Level 4: Delivery of correlated analytics – analytics that pull information from multiple sources to provide not only quantitative data, but qualitative indices as well – Release 9 and beyond.
Level 5: Delivery of predictive analytics – through the use of data mining and data patterns – we are now able to look at the vast amount of HCM data to help predict future trends. Release 9.1 and beyond as well as in the Fusion HCM product line.
Now – with the delivery of PeopleSoft HCM 9.1, we are able to address all 5 Levels of analytics within our products and tools.
We will continue to put robust analytics in the hands of end users when we deliver the new Pivot Grid feature, coming soon in PeopleTools 8.52. The pivot grid is a new analytic capability that gives users the ability to quickly and easily pivot and filter data within PeopleSoft applications without having to export data to Microsoft Excel. Data for pivot grids is generated by PS Query and can be rendered in charts or analytical grids. Users can add pivot grids to application pages or pagelets. The capability to create new pivot grids in PeopleSoft HCM is enabled by PeopleTools 8.52, and we have plans to deliver pivot grids in the next release of HCM. Going forward, managers will be able to quickly view and analyze relevant critical information deployed to their home pages or dashboards.
Example of a pivot grid (with data displayed as a bar chart) created with PeopleTools 8.52 and deployed to a manager’s dashboard:
As we look at the future roadmap for PeopleSoft, HCM analytics will continue to play an increased role in how the Human Resources organization provides value to their company by delivering targeted information to not only evaluate how current talent is performing, but to actually predict the value of that talent into the future. Who are our top performers? Who are we at risk of losing? What skills will we need in the future and who are the potential candidates to fill those roles? Are we doing what we need as managers to engage that segment of the workforce? These are just a few examples of the many ways we need to use the vast amount of information on our employees to drive future success of our businesses. Our job at PeopleSoft is to deliver that information to you in an easy and seamless way to continue to show the economic value of your most valuable asset – your employees.
For more information go to our Virtual Briefing Center for HR Executives here.