{"id":631,"date":"2019-08-05T17:09:50","date_gmt":"2019-08-05T17:09:50","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/?post_type=chapter&#038;p=631"},"modified":"2024-04-24T23:23:14","modified_gmt":"2024-04-24T23:23:14","slug":"challenges-in-people-analytics","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/chapter\/challenges-in-people-analytics\/","title":{"raw":"Challenges in People Analytics","rendered":"Challenges in People Analytics"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Discuss challenges to implementing people analytics<\/li>\r\n<\/ul>\r\n<\/div>\r\nThe challenges to implementing people analytics are reflected in survey data, with Deloitte, KPMG and others reporting an organizational \u201creadiness gap.\u201d Glass Bead Consulting principal Andy Spence identified the following seven key challenges to people analytics implementation.[footnote]Spence, Andy. \"<a href=\"https:\/\/www.glassbeadconsulting.com\/7-challenges-that-people-analytics-must-overcome\/\" target=\"_blank\" rel=\"noopener\">7 Challenges That People Analytics Must Overcome.<\/a>\" HR Transformer Blog. September 22, 2016. Accessed August 06, 2019.[\/footnote]\r\n\r\n<img class=\"aligncenter size-large wp-image-1592\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/10220842\/metaphor-3694454_1920-e1570745350915-1024x320.jpg\" alt=\"Photograph of two people pulling on either end of a rope\" width=\"1024\" height=\"320\" \/>\r\n<h2>Challenge 1: HR Mindset<\/h2>\r\nAccording to a survey of Human Capital Institute members, \"80% of HR practitioners say their company leaders still rely on 'gut feelings' to make people-based decisions.\" The problem with that\u2014effectiveness aside\u2014is that if managers (people analytics business customers) don\u2019t believe that data is useful, they won\u2019t ask for it, use it or believe in it.\r\n<h3>Recommendations<\/h3>\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Educate management\u2014and new employees\u2014on the value of using evidence-based data.<\/li>\r\n \t<li style=\"font-weight: 400;\">Find opportunities to make intuitive decisions more data-based and factor intuition into data-based decisions.<\/li>\r\n<\/ul>\r\n<h2>Challenge 2: Managing Expectations<\/h2>\r\nSpence\u2019s rhetorical question: Organizations have always had business problems, statistical knowledge and access to large amounts of data, so why the focus on people analytics now? Hype. In Gartner hype cycle terms, analytics is currently in stage 3: the trough of disillusionment. Although people analytics has delivered some impressive results, unrealistic expectations is a real danger.\r\n<h3>Recommendations<\/h3>\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Set realistic expectations on people analytics.<\/li>\r\n \t<li style=\"font-weight: 400;\">Start with a specific business problem.<\/li>\r\n<\/ul>\r\n<h2>Challenge 3: Not \u201cBig Data,\u201d Big Questions<\/h2>\r\n<img class=\"alignright wp-image-1715\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/14204429\/question-mark-1026526_1920-e1571085889794-645x1024.jpg\" alt=\"Illustration of a person sitting on a large question mark.\" width=\"250\" height=\"397\" \/>Point: \u201cWithout data you are just another person with an opinion\u201d W. Edwards Deming\r\n\r\nCounterpoint: \u201cWithout questions, you are just another person with data.\u201d\r\n\r\nSpence notes \u201cthere is a danger that People Analytics is a solution looking for a problem.\u201d Instead, practitioners should be focusing on identifying the question that impact business performance.\r\n<h3>Recommendations<\/h3>\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Know the business and focus on focus on solving business problems, not data analysis.<\/li>\r\n \t<li style=\"font-weight: 400;\">Generate a number of broad questions and hypotheses that address business issues.<\/li>\r\n<\/ul>\r\n<h2>Challenge 4: The Right Tools<\/h2>\r\nHR systems, data and reporting tools aren\u2019t designed for analytics or to help HR answer business questions.\r\n<h3>Recommendation<\/h3>\r\nWork with fellow practitioners to identify effective tools\r\n<h2>Challenge 5: No Confidence<\/h2>\r\nAs workforce analytics consultant Dr. Max Blumberg notes: \u201cif, like most people, you don\u2019t believe in your organization\u2019s competency and performance management frameworks, then you certainly aren\u2019t in a position to believe in the results of statistical analysis based on data generated by these frameworks. As the old acronym GIGO says, Garbage In, Garbage Out.\u201d This point also applies to data integrity.\r\n<h3>Recommendations<\/h3>\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Put people analytics on pause until you\u2019ve developed a reliable framework.<\/li>\r\n \t<li style=\"font-weight: 400;\">Collaborate with and learn from academia and fellow practitioners<\/li>\r\n<\/ul>\r\n<h2>Challenge 6: Show Me the Money<\/h2>\r\nBeautiful data visualizations don\u2019t matter to CEOs. Show them how the data relates to revenue, profits and the holy grail of increasing employee productivity.\r\n<h3>Recommendations<\/h3>\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Develop employee productivity measures<\/li>\r\n \t<li style=\"font-weight: 400;\">Link initiatives to improving employee productivity<\/li>\r\n<\/ul>\r\n<h2>Challenge 7: HR Structural Issues<\/h2>\r\nHR structural issues include a siloed operating model\u2014for example, a concentration of specialists who inhibit a collaborative approach to delivering business strategy impact.\r\n<h3>Recommendations<\/h3>\r\n<ul>\r\n \t<li style=\"font-weight: 400;\">Leverage lessons learned by companies who have been through HR transformations<\/li>\r\n \t<li style=\"font-weight: 400;\">Ensure HR representatives possess basic analytical skills and an awareness of business issues.<\/li>\r\n \t<li style=\"font-weight: 400;\">Continually evaluate the effectiveness of HR and management initiatives<\/li>\r\n<\/ul>\r\n<div class=\"textbox tryit\">\r\n<h3>PRactice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/47f244d2-9431-41c7-9bf1-2637341833c8\r\n\r\n<\/div>\r\nIn addition to the above points, researchers and practitioners cite a lack of relevant skills (discussed in <a href=\"..\/chapter\/implications-of-people-analytics\/\" target=\"_blank\" rel=\"noopener\">Implications of People Analytics<\/a>) as a key implementation challenge.\r\n<div class=\"textbox key-takeaways\">\r\n<h3>Key Takeaway<\/h3>\r\nClosing the \u201creadiness gap\u201d will require organizations to change HR and operating approaches\/mindsets and address people analytics skills and tools issues.\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Discuss challenges to implementing people analytics<\/li>\n<\/ul>\n<\/div>\n<p>The challenges to implementing people analytics are reflected in survey data, with Deloitte, KPMG and others reporting an organizational \u201creadiness gap.\u201d Glass Bead Consulting principal Andy Spence identified the following seven key challenges to people analytics implementation.<a class=\"footnote\" title=\"Spence, Andy. &quot;7 Challenges That People Analytics Must Overcome.&quot; HR Transformer Blog. September 22, 2016. Accessed August 06, 2019.\" id=\"return-footnote-631-1\" href=\"#footnote-631-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-1592\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/10220842\/metaphor-3694454_1920-e1570745350915-1024x320.jpg\" alt=\"Photograph of two people pulling on either end of a rope\" width=\"1024\" height=\"320\" \/><\/p>\n<h2>Challenge 1: HR Mindset<\/h2>\n<p>According to a survey of Human Capital Institute members, &#8220;80% of HR practitioners say their company leaders still rely on &#8216;gut feelings&#8217; to make people-based decisions.&#8221; The problem with that\u2014effectiveness aside\u2014is that if managers (people analytics business customers) don\u2019t believe that data is useful, they won\u2019t ask for it, use it or believe in it.<\/p>\n<h3>Recommendations<\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Educate management\u2014and new employees\u2014on the value of using evidence-based data.<\/li>\n<li style=\"font-weight: 400;\">Find opportunities to make intuitive decisions more data-based and factor intuition into data-based decisions.<\/li>\n<\/ul>\n<h2>Challenge 2: Managing Expectations<\/h2>\n<p>Spence\u2019s rhetorical question: Organizations have always had business problems, statistical knowledge and access to large amounts of data, so why the focus on people analytics now? Hype. In Gartner hype cycle terms, analytics is currently in stage 3: the trough of disillusionment. Although people analytics has delivered some impressive results, unrealistic expectations is a real danger.<\/p>\n<h3>Recommendations<\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Set realistic expectations on people analytics.<\/li>\n<li style=\"font-weight: 400;\">Start with a specific business problem.<\/li>\n<\/ul>\n<h2>Challenge 3: Not \u201cBig Data,\u201d Big Questions<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-1715\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/14204429\/question-mark-1026526_1920-e1571085889794-645x1024.jpg\" alt=\"Illustration of a person sitting on a large question mark.\" width=\"250\" height=\"397\" \/>Point: \u201cWithout data you are just another person with an opinion\u201d W. Edwards Deming<\/p>\n<p>Counterpoint: \u201cWithout questions, you are just another person with data.\u201d<\/p>\n<p>Spence notes \u201cthere is a danger that People Analytics is a solution looking for a problem.\u201d Instead, practitioners should be focusing on identifying the question that impact business performance.<\/p>\n<h3>Recommendations<\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Know the business and focus on focus on solving business problems, not data analysis.<\/li>\n<li style=\"font-weight: 400;\">Generate a number of broad questions and hypotheses that address business issues.<\/li>\n<\/ul>\n<h2>Challenge 4: The Right Tools<\/h2>\n<p>HR systems, data and reporting tools aren\u2019t designed for analytics or to help HR answer business questions.<\/p>\n<h3>Recommendation<\/h3>\n<p>Work with fellow practitioners to identify effective tools<\/p>\n<h2>Challenge 5: No Confidence<\/h2>\n<p>As workforce analytics consultant Dr. Max Blumberg notes: \u201cif, like most people, you don\u2019t believe in your organization\u2019s competency and performance management frameworks, then you certainly aren\u2019t in a position to believe in the results of statistical analysis based on data generated by these frameworks. As the old acronym GIGO says, Garbage In, Garbage Out.\u201d This point also applies to data integrity.<\/p>\n<h3>Recommendations<\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Put people analytics on pause until you\u2019ve developed a reliable framework.<\/li>\n<li style=\"font-weight: 400;\">Collaborate with and learn from academia and fellow practitioners<\/li>\n<\/ul>\n<h2>Challenge 6: Show Me the Money<\/h2>\n<p>Beautiful data visualizations don\u2019t matter to CEOs. Show them how the data relates to revenue, profits and the holy grail of increasing employee productivity.<\/p>\n<h3>Recommendations<\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Develop employee productivity measures<\/li>\n<li style=\"font-weight: 400;\">Link initiatives to improving employee productivity<\/li>\n<\/ul>\n<h2>Challenge 7: HR Structural Issues<\/h2>\n<p>HR structural issues include a siloed operating model\u2014for example, a concentration of specialists who inhibit a collaborative approach to delivering business strategy impact.<\/p>\n<h3>Recommendations<\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Leverage lessons learned by companies who have been through HR transformations<\/li>\n<li style=\"font-weight: 400;\">Ensure HR representatives possess basic analytical skills and an awareness of business issues.<\/li>\n<li style=\"font-weight: 400;\">Continually evaluate the effectiveness of HR and management initiatives<\/li>\n<\/ul>\n<div class=\"textbox tryit\">\n<h3>PRactice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_47f244d2-9431-41c7-9bf1-2637341833c8\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/47f244d2-9431-41c7-9bf1-2637341833c8?iframe_resize_id=assessment_practice_id_47f244d2-9431-41c7-9bf1-2637341833c8\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<p>In addition to the above points, researchers and practitioners cite a lack of relevant skills (discussed in <a href=\"..\/chapter\/implications-of-people-analytics\/\" target=\"_blank\" rel=\"noopener\">Implications of People Analytics<\/a>) as a key implementation challenge.<\/p>\n<div class=\"textbox key-takeaways\">\n<h3>Key Takeaway<\/h3>\n<p>Closing the \u201creadiness gap\u201d will require organizations to change HR and operating approaches\/mindsets and address people analytics skills and tools issues.<\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-631\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Challenges in People Analytics. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Specific attribution<\/div><ul class=\"citation-list\"><li>Metaphor: Tug Rope. <strong>Authored by<\/strong>: skeeze. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/photos\/metaphor-tug-rope-competition-3694454\">https:\/\/pixabay.com\/photos\/metaphor-tug-rope-competition-3694454<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: Pixabay License<\/li><li>Question Mark. <strong>Authored by<\/strong>: Peggy and Marco Lachmann-Anke. <strong>Provided by<\/strong>: Pixabay. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/illustrations\/question-mark-question-response-1026526\/\">https:\/\/pixabay.com\/illustrations\/question-mark-question-response-1026526\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: Pixabay License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-631-1\">Spence, Andy. \"<a href=\"https:\/\/www.glassbeadconsulting.com\/7-challenges-that-people-analytics-must-overcome\/\" target=\"_blank\" rel=\"noopener\">7 Challenges That People Analytics Must Overcome.<\/a>\" HR Transformer Blog. September 22, 2016. Accessed August 06, 2019. <a href=\"#return-footnote-631-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":17,"menu_order":9,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Challenges in People Analytics\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc-attribution\",\"description\":\"Metaphor: Tug Rope\",\"author\":\"skeeze\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/photos\/metaphor-tug-rope-competition-3694454\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"Pixabay License\"},{\"type\":\"cc-attribution\",\"description\":\"Question Mark\",\"author\":\"Peggy and Marco Lachmann-Anke\",\"organization\":\"Pixabay\",\"url\":\"https:\/\/pixabay.com\/illustrations\/question-mark-question-response-1026526\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"Pixabay License\"}]","CANDELA_OUTCOMES_GUID":"586f901d-4768-4430-b366-b94a78b62609, 0f59154c-8128-453d-bb0e-947165da1c74","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-631","chapter","type-chapter","status-publish","hentry"],"part":621,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":13,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/631\/revisions"}],"predecessor-version":[{"id":3308,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/631\/revisions\/3308"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/parts\/621"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/631\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/media?parent=631"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapter-type?post=631"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/contributor?post=631"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/license?post=631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}