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Using People Analytics Data to Empower Leaders to Improve Strategy Execution
People analytics is a rapidly growing function. According to research by Insight222, there was a 43% increase in the size of people analytics teams between 2020 and 2023.
However, at the People Analytics Exchange in June, participants discussed the high demand for their work by senior executives and at the same time, their frustration that their analyses and recommendations are not making significant changes in operations.
Many companies have no process or methodology to place the analyses into strategic action.
These participants are not alone. For example:
- A 2021 McKinsey report highlighted that while companies invest heavily in data analytics, less than 30% succeed in connecting analytics initiatives to actionable business insights.
We believe one major reason people analytics data often is not actionable is that the data presents executives with symptoms of problems rather than root causes.
The Uniqueness of a Company’s DNA.
Not every company will have the same root causes for their problems. In fact, for our last five clients, we found different-for-each-client, significant, targeted interventions they could take. Since each company’s dynamics are different, we have found no one-size-fits-all solutions.
For people analytics to be a valued resource, it needs to identify data that leaders can use to improve strategy execution.
The Case of Automated Regulatory Compliance.
Take the example of Automated Regulatory Compliance (ARC).
ARC was a company in crisis. After 12 years of rapid growth and market leadership, suddenly customer satisfaction scores were dropping and turnover had become a major issue.
After a few failed initiatives to fix the turnover and customer satisfaction problems, the ARC executive team had everyone in the company complete our Organizational DnA® Assessment to reveal the root causes of these issues
The Root Cause of ARC’s Turnover.
Our data revealed several reasons people were leaving, but two pieces of information really stood out:
- Employees did not feel aligned with the purpose and values of the company.
- People did not feel that senior management was living the espoused company values.
The data showed that employees felt disconnected and cynical. No wonder their best talent was leaving.
The Root Cause of Dropping Customer Satisfaction Scores.
The data also revealed that while senior leaders said customer focus was the key to their competitive advantage, the data showed that the leaders were, in actuality, focused on internal company issues. The data also clearly showed that the amount of attention paid to customers varied by level and function. Customer satisfaction was being undermined by a culture dominated by silos and power struggles.
Co-Creating Actions to Solve the Problems.
Because problems with turnover and customer satisfaction are usually the result of many related issues, managing these issues requires a systemic approach. And, the root causes very from company to company. For ARC, the root causes were clear, so we worked with ARC employees and leadership to create a plan based on their unique data.
The co-created plan was to:
- Clarify company values
- Have senior management exhibit those values
- Put the customer first
- Enhance employee engagement
- Enforce a mindset of “one team” versus a siloed one
To enhance engagement and “one team,” we helped the employees use the data collected by the survey to guide the action plan. The company developed cross-functional teams to work with customers to better leverage their employee knowledge and experience.
Even before the redesign was fully implemented, clients were measurably happier, and revenue started to grow again.
And because employees were fully involved in creating the changes, morale increased, and turnover slowed to a trickle.
The effort was a complete success because they had actionable data to use in changing how the company operated. They created a process for addressing the system of root causes.
Two Secrets to Success.
The story of ARC shows that people analytics data can provide actionable insights that lead to improved strategy execution. Two keys to success are:
- Actionable data that reveals the root causes of problems.
- Knowing that root causes are unique to each organization’s DNA.
By providing senior executives with actionable, customized insights into the root causes of issues, we empower them to make decisions that improve strategy execution.