Key Takeaways from #PeopleAnalytics15

I had the honour of co-chairing the excellent People Analytics conference in London last week, which was brilliantly curated and executed by Barry Swales and the Tucana team.

Here are my key takeaways from the two days:

1. People Analytics has moved from the ‘why’ to the ‘how’…

In my opening remarks I took a quick straw poll to see how many agreed with Josh Bersin’s prediction (see here) that analytics will go mainstream in HR in 2015.  Only a brave few (let it never be said that HR folk aren’t a sceptical bunch) were prepared to raise their hands. The optimists were overwhelmingly outvoted by those who believe that this is another false dawn. In one sense though the conference indicated that Bersin may end up being right as the two days showed that the conversation has shifted from the ‘why’ to the ‘how’, and just in case there was still any doubt…

 2. …the case for data driven HR is irrefutable

When the likes of the CIPD invest time, money and resources on an initiative such as Valuing Your Talent you know that Bersin is likely to be vindicated eventually. If there is still any doubt about the case for data driven HR, the panel discussion led by Anthony Hesketh (author of Valuing Your Talent) dispelled it. As Louise Fisher (HR Director, Xerox) succinctly stated she can “run a better and more valuable HR function with analytics at its base”. Simon Constance (Director of EY’s Human Capital Advisory business and leader of the firm’s People Analytics initiative) put it in even more stark terms asserting that “the purpose of business is to generate cash,  you hire talent to create that cash and  analytics gives you the insight to realise this.”    

3. But, getting started with analytics isn’t easy

“Face it, you’re not Google” said Mike West (see far right with l-r fellow ex-Googlers Randy Knaflic, Cole Nussbaumer and Brandon Cohen)  at the start of his session on ‘Building People Analytics from the Ground Up’ (and Mike should know as he helped Google do just that). Not everyone has the luxury of hiring a 50+ team and for the vast majority budget, sponsorship and capability (in terms of all the disparate skills required) are in short supply. Over the two days, we heard from a number of speakers on the variety of ways they had overcome the challenge of getting started, which in summary included tips such as: start small, collaborate with other functions in the business (e.g. Finance, IT…), don’t be afraid to hire a consultant, be prepared to experiment, and of course…

4. …start with the business problem

The first commandment of People Analytics is ‘Thou Shalt Start with the Business Problem’ – this was unanimous amongst speakers and delegates alike. This means going outside the comfort zone of HR and gaining an understanding of what is keeping the CXO awake at night. The ability to ask the right questions is absolutely critical as is the gift of sifting through the issues to find those that have the biggest potential impact.

5. Make sure the data isn’t wonky but don’t get paralysed by it

Whilst there was no deviation from starting with the business problem there were differences of opinion on how clean the data you collect and analyse has to be. The rule seemed to be that the deeper the speaker’s own analytical skills, the more zealous there were on achieving the nirvana of 100% cleansed data. Irrespective on which side of the fence you fall down upon, you need to be able to trust your data, it needs to be specific to the business problem you are trying to address and data collection and preparation is likely to be the most time consuming part of the process. I think the much respected Peter Howes got it about right when he reflected that whilst you have nothing without addressing the hygiene factor, in itself data adds no value. This comes with…

6. Interpreting the data and telling the story – the key to success

Interpreting the data and distilling it into insights that unlock the business problem you are trying to tackle and then creating a compelling story to frame it is absolutely key. The quality of your data or incisiveness of your analysis doesn’t matter if you are unable to make it resonate with your business stakeholders. That means crafting a powerful story to explain it and as Randy Knaflic advocated in his keynote, knowing what is important to your leader. Cole Nussbaumer (Randy’s wife – there are some seriously good analytical genes in that pairing) ran a must-see session on storytelling with data (I missed it as I was chairing the other room!. Get this right and securing additional budget for your People Analytics function should be a breeze!    

7. The journey to Predictive Analytics needn’t be linear

Most speakers tended to adhere to Bersin’s Talent Analytics Maturity Model, subscribing that the journey to predictive analytics is linear and can take anything from two to five years. I’m not so sure. Patrick Coolen provided a convincing contrary view, describing how ABN AMRO cleaned up its operational reporting in parallel with successfully experimenting with predictive analytics - consequently delivering a number of valuable insights to the bank.  Patrick has achieved this together with one colleague – Auke IJsselstein - and the excellent iNostix, which just goes to show that you don’t need to have a big team to make HR Analytics work.

8. You don’t have to be Google to excel at People Analytics

The conference ably demonstrated that a number of organisations are fairly advanced in their maturity with people analytics. As well as the aforementioned ABN AMRO, Ben Hawley wowed the audience with the story of Unilever’s People Analytics function. Peter Reilly presented the findings of a study by the Institute of Employment Studies into Best Practices in Building an HR Analytics Function, which featured anonymised findings from the likes of Shell, Rolls Royce and Maersk.  Moreover, in addition to those already highlighted in this article, with the likes of Max Blumberg, Andrew Marritt, Tracey Smith, Peter O’Hanlon, Sam Hill, Julian Holmes and Luk Smeyers operating in this space, people analytics functions are not exactly short of accomplished advisors to draw expertise from.

9. People Analytics has created a bubble of accomplished vendors

Another great feature of the conference was that it demonstrated the burgeoning space that is the people analytics vendor space. Whether it was highly innovative product based firms like Revelian, OrgVue and Talent Lab, or consultancies like 3n Strategy, iNostix, Numerical Insights and Organization View, practitioners have a number of tools at their disposal to help develop their functions and visualise their stories. Watch out for a future blog showcasing some of these vendors.

10. Evolution to company-wide analytics team – opinion is split

So what next for people analytics functions? This was one of the questions tackled by the final panel of the conference, which featured business leaders from finance, IT and marketing as well as HR. Opinion was divided as to whether HR will eventually be subsumed into a company-wide analytics team. Given the benefit of integrating business and people data, the paucity (still) of analytical skills that reside in HR and the scarcity of data scientists, I’d put my money on integration rather than separation, but let’s see what the future holds.

11. What are the ingredients for a great conference on People Analytics?

The final words have to be about conference organisers Barry Swales and his Tucana team. What are the ingredients one needs for a great people analytics conference? Take a varied and inspirational group of speakers, mix with an intelligent and knowledgeable crowd of delegates, add a sprinkling of innovative vendors and sponsors, and then put into a bowl with a trio of marvellous chairmen (Andrew Marritt, Anton Fishman and some chap called David Green - see photo R to L). Et voila - when it comes to curating and organising people analytics conferences worthy of a Michelin star, Barry and Tucana are the Masterchefs. Well done and see you next time.

#PeopleAnalytics15 photos courtesy of Andreas Grieger - see Twitter and homepage

About the Author

David is a Director at Cielo (formerly known as Pinstripe & Ochre House), #1 RPO on the Baker's Dozen for global breadth and quality of service. David has helped a number of organisations design data driven talent acquisition programmes that drive effectiveness, growth and competitive advantage. He also speaks, writes and chairs conferences on HR Analytics and other key tenets driving the seismic change in the future of work.

Connect with David by email, LinkedIn or Twitter and take Cielo's Talent Activation Assessment here.

You may also want to read some of David's other articles:

• Robots vs Humans - where is the Future of Work headed?
• HR Analytics - The New Goldrush?
• The 20 best HR Analytics articles of 2014
• 10 Predictions for HR & Recruiting in 2015 - Part 1 and Part 2
• Cost Per Hire: "It's the wrong recruiting metric, Gromit..."
• Never mind the bureaucracy, here's Punk Rock org structures...
• The Who's Who of HR Analytics Influencers - Part 1, Part 2, Part 3 and Part 4 
• Is HR ready for the Big Data & Analytics revolution?
• Part 1 and Part 2 of our fictional HR Director's journey into the world of HR Analytics

Keywords: HR, Human Resources, HR Analytics, People Analytics, Talent, Big Data, Recruiting, Talent Acquisition, Data Driven HR, Talent Analytics, Talent Management