Too often a people analytics initiative starts with a “navel gaze” and reflection within the HR department. Experience has shown that such a procedure does not lead to any noteworthy results that represent added value for business policy decisions.

Instead, a “business first” approach is recommended. What this means in concrete terms and which measures are in the foreground I present in this post:

Stakeholders have a key role

Stakeholders are people who have a specific interest in a project or activity; the People Analytics (PA) team should consider potential stakeholders; it is accountable to these stakeholders!

The different types of stakeholders PA are likely to work with fall into three broad categories:

  • Stakeholders Served: HR Managers, Organization Leaders, Boards.
  • Stakeholders Depended Upon: Data Owners, Technology Owners, Subject Matter Experts, Legal, Finance, Unions and Works Councils.
  • Stakeholders Impacted: employees, managers and executives.

In my opinion, the PA team should first talk to the board or management. Guenole/Ferrar/Feinzig have created an excellent overview of topics of conversation for every type of stakeholder. Company management is responsible for achieving the company’s primary goals. The board and management are ready to talk about their challenges, opportunities, beliefs and opinions and explain what should be done with a view to productivity, competitiveness, etc.

The PA team then summarizes its findings in a stakeholder map. This depicts the multi-layered relationships between stakeholders and a situation as well as the stakeholders among themselves.

Ferrar and Green address this in several case studies (Piyush Mathur, Johnson & Johnson; Madhura Chakrabarti, Syngenta). Sentences derived from this:

  • Insight without outcome is simply overhead.
  • The best way to understand how you can unlock value for the people analytics function is to go and meet the business leaders and HR leaders.

Focus is key

With good reason, the discipline of focus is at the beginning of every strategy execution. This counteracts the risk of getting bogged down and distributing resources over too many “construction sites”. Only with focused work usable business results can be achieved!

The so-called Complexity-Impact Matrix is an effective instrument for prioritizing and focusing. Delivering a medium to high impact project makes the most sense. A project that has not at least a moderate impact is likely to go unnoticed. A project with low to medium complexity is also a good candidate. Highly complex projects take more time, and stakeholders may end up wondering why the project is taking so long. The target portfolio is therefore clear.

When rating the complexity, factors such as corporate policy, competencies, availability and quality of data, availability of the necessary technology and feasibility of the analytics solution play a role. In terms of impact, it is alignment with the corporate strategy, ROI, timing, opportunity costs and benefits for the workforce.

A quick win – low to medium complexity and medium to high impact – should be started along this matrix. This project is one that you are confident you will be able to deliver in a timely manner and with tangible results.

With second priority, I propose a big bet along this matrix – high complexity and high impact. Such a project usually requires a significant investment of time and money, as well as significant sponsorship.

PA needs to define its ambitions

The outlined prioritization process, in which stakeholders are closely involved, has several advantages for the PA team:

  • It is the most objective way to choose the tasks with the highest impact.
  • With the help of identified quick wins and big bets, a valid investment case for skills, technology or data can be created.
  • The focused approach along 4DX, OKR, etc. enables a productive, evidence-based conversation.

In addition to the ethics charter, which I have already discussed, the following steps are necessary in order to set the direction for PA and to define the claim:

  • As the PA owner, stop, listen, and think before diving into your first analytics project.
  • Speak to the person who appointed you and/or the CHRO to clarify the scope of your role.
  • Identify potential project sponsors for interviews and discuss business challenges.
  • Identify which of the “Seven Forces of Demand” – competitive advantage, top-down, regulation, operational efficiency, cost pressure, humanistic concerns, HR for HR – drive the primary analysis needs in your company.
  • Describe the desired future effects of your function on the organization in a memorable vision statement.
  • Describe your goals and how you will approach them in a memorable mission statement.
  • Write short, simple guidelines or principles to guide the team.
  • Use the vision and mission to communicate the identity of your role to your team and the entire organization.
  • Develop a symbol or logo that distinguishes the PA function and defines its presence.

Conclusion

“Business first” means listening to business stakeholders and concentrating on the business-relevant results in everything you do; Ferrar sums it up like this: (1) collaborate with stakeholders and executives in the company, (2) understand their business goals, aspirations and challenges, (3) learn about their priorities, and (4) discuss how PA can help them achieve their goals.

The Complexity-Impact Matrix is a prioritization framework that enables a PA team to evaluate each initiative based on how much value the initiative will bring and how difficult or complex it will be to implement. Initiatives are then applied to a quadrant and prioritized accordingly. So the focus includes: (1) create a dynamic and flexible project prioritization model, (2) define transparent criteria for project prioritization, (3) involve as many executives as possible in the discussions about priorities by using these criteria and a data-based approach, and (4) be sure to prioritize quick wins and big bets; start with quick wins!

Ambition means that even a relatively small PA team can add significant value to the organization. Specifically: (1) Understand the ambitions that the PA team has as individuals and collectively, (2) find out how brave you want to be with Analytics, (3) set yourself a clear goal and mission, to achieve the ambition and (4) brand the function.