Human Capital Analytics: How to Harness the Potential of Your Organization's Greatest Asset

252 Pages·2012·0.93 MB·English

by  Gene Pease

ffirs 24September2012;12:34:57
Human Capital
Analytics
ffirs 24September2012;12:34:57
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ffirs 24September2012;12:34:57
Human Capital
Analytics
How to Harness the Potential
’
of Your Organization s
Greatest Asset
Gene Pease
Boyce Byerly
Jac Fitz-enz
John Wiley & Sons, Inc.
ffirs 24September2012;12:34:57
CoverImage:©RobertChurchill/iStockphoto
CoverDesign:AndrewLiefer
Copyright©2013byGenePease,BoyceByerly,andJacFitz-enz.Allrightsreserved.
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LibraryofCongressCataloging-in-PublicationData
Pease,Gene,1950–
Humancapitalanalytics:howtoharnessthepotentialofyourorganization's
greatestasset/GenePease,BoyceByerly,JacFitz-enz.
p.cm.—(Wiley&SASbusinessseries)
Includesindex.
ISBN978-1-118-46676-6(cloth)—ISBN978-1-118-50697-4(ePDF)—
ISBN978-1-118-50698-1(Mobi)—ISBN978-1-118-50699-8(ePub)
1. Humancapital. 2. Personnelmanagement. I. Byerly,Boyce,1962–
II. Fitz-enz,Jac. III. Title.
HD4904.7.P3622013
658.3001—dc23
2012030212
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
ffirs 24September2012;12:34:58
Iwanttothankmyparentsfortheirlifelongloveandforteaching
me the value of sticking to it, in spite of the obstacles; my
incredible wife, Pamela, and daughters, Tiffany and Heather,
who inspire me daily; and my sister, Susan, and brothers,
Jeff and Scott, for their constant support. My longtime buddies
Manny, Dennis, and Jeff, thank you for your friendship.
—Gene Pease
’ ’ ’
I’d like to thank my family for giving what I needed to do this all
in the first place: my parents, who taught me the value of
hard work and perseverance; my sisters, Marilynn, who led the
way in turning dreams into books, and Joni, who has always
been a pillar of support; and my sons, Cameron, Blake, and
Alexei, who inspire me, bring out the best in me, and give me
a reason to do big things.
—Boyce Byerly
’ ’ ’
I thank the many people who had the foresight and courage
to support me along the trail. Without their encouragement
I probably would have given up the quest. Most important to
me was Bob Coon, my best friend and golf buddy. We worked
together on measurement at Four-Phase Systems in the late
1970s, and later he followed me and became president of
Saratoga Institute. Thanks, Robert.
—Jac Fitz-enz
ffirs 24September2012;12:34:58
ffirs 24September2012;12:34:58
Contents
Preface xi
Acknowledgments xiii
Introduction Realizing the Dream:
From Nuisance to Necessity 1
Chapter 1 Human Capital Analytics.........................................13
Human Capital Analytics Continuum 16
Summary 28
Notes 28
Chapter 2 Alignment................................................................31
The Stakeholder Workshop: Creating the Right Climate
for Alignment 33
Aligning Stakeholders 33
Who Are Your Stakeholders? 35
What Should You Accomplish in a Stakeholder Meeting? 37
Deciding What to Measure with Your Stakeholders 41
Leading Indicators 42
Business Impact 44
Assigning Financial Values to “Intangibles” 44
Defining Your Participants 45
Summary 59
Notes 60
vii
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viii ⁄ CONTENTS
Chapter 3 The Measurement Plan...........................................61
Defining the Intervention(s) 62
Measurement Map 63
Hypotheses or Business Questions 66
Defining the Metrics 67
Demographics 68
Data Sources and Requirements 70
Summary 77
Note 77
Chapter 4 It’s All about the Data.............................................79
Types of Data 80
Tying Your Data Sets Together 86
Difficulties in Obtaining Data 89
Ethics of Measurement and Evaluation 90
Telling the Truth 92
Summary 97
Notes 98
Chapter 5 What Dashboards Are Telling You:
Descriptive Statistics and Correlations...............101
Descriptive Statistics 102
Going Graphic with the Data 103
Data over Time 104
Descriptive Statistics on Steroids 106
Correlation Does Not Imply Causation 108
Summary 115
Notes 116
Chapter 6 Causation: What Really Drives Performance.......117
Can You Create Separate Test and Control Groups? 120
Are There Observable Differences? 121
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