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Category Archives: analytics

Guidelines for Measuring the ROI Impact of Inclusion

ROI Graphic 4

“Inclusion” is Big Business

Workforce Diversity and Inclusion is a concept that appears to have taken hold in companies worldwide. According to a survey conducted by SHRM, 55% of respondents say their organizations “strongly promote” Diversity and Inclusion. However, the interpretations of the phrase and the methods used to achieve and measure this goal vary widely among companies and regions. In companies with the most successful Diversity programs, the impetus and tone emanate from the most senior ranks of the organization. According to SHRM, sixty percent of respondents to the survey say the main advocates for Diversity and Inclusion in their organizations are the CEO and top management, followed by heads of HR (42%). Most companies recognize that “Diversity” and “Inclusion” are closely linked; Inclusion helps to ensure that employees from diverse backgrounds are able to contribute, remain with the company and flourish (SHRM Report: Global Diversity and Inclusion: Perceptions, Practices and Attitudes).

These facts notwithstanding, how can a diversity executive report to the CEO or Board of Directors that the organization is now 5 percent more inclusive than the year before and quantify what effect that statement has on the bottom line? In the absence of direct measures, it’s often necessary to rely on indirect observations to determine if goals are being achieved. Key Performance Indicators (KPI’s) such as engagement scores, retention rates, productivity measures and diversity representation at various tiers often must be combined as an “Index value” to create a broader picture of an inclusion strategy’s impact on the overall organizational culture.

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Creating Evidence-based Measures

I recommend that in order to effectively create an “evidence-based” measure of “inclusion”, a multi-faceted approach must be used. There are several prerequisites:

To measure inclusion, diversity executives should:

1) Review their current definition of Inclusion and drivers behind the organization’s inclusion initiative to make sure they describe the desired cultural effect as well as the employee behaviors expected to achieve the desired results. Establishing a behaviorally-specific definition for inclusion that spells out measurable elements and is understood across the entire organization can maintain focus and help develop analytics that influence organizational performance.

2) Align the organization’s inclusion definition and drivers with strategic organizational goals. If the organization needs to improve its talent pipeline, weave inclusion initiatives into existing talent management functions. If increasing innovation is critical, promote inclusion programs that will facilitate knowledge sharing. Both of these goals may require raising awareness of the employment brand by competing to become an employer of choice.

3) As organizational goals help to develop drivers, and drivers help to develop programs to support those goals, be sure to evaluate the business and Diversity ROI impact to ensure programs are having an effect. Select or develop metrics that circle back to align with the original drivers. By carefully articulating outcomes, organizations can define measures that assess the impact of their inclusion strategy. For a concept as ephemeral as inclusion, multiple qualitative, quantitative, effectiveness and efficiency metrics may be required to imply success or indicate the need for a course change.

Sample Inclusion Items

Here are a few sample items from one of our Hubbard & Hubbard, Inc. Inclusion surveys that reflect these ideas:
1. I can be fully myself around here without having to compromise or hide any part of who I am.
2. In a group, I am able to be fully part of the whole while retaining a sense of authenticity and uniqueness which reflects who I am.
3. Different views and opinions are valued in decision-making.
4. It is generally safe to say what you think.
5. I feel safe, trusted, accepted, respected, supported, valued, fulfilled, engaged, and can be authentic in my working environment

Use Even-numbered Response Scales

I have found it helpful to use an “even numbered” response scale that encourages the respondent to determine if this item ‘is’ or ‘is not’ true for them rather than somewhere in the middle. You can use “even numbered” scales such as:

  1. Strongly Disagree
  2. Disagree
  3. Mildly Disagree
  4. Mildly Agree
  5. Agree
  6. Strongly Agree

This also guides you towards a more definitive action plan that is firmly rooted in addressing specific problems and opportunities.

Inclusion Definitions Must be Behaviorally Specific

In order to measure the ROI of Inclusion, the definition of Inclusion that is used must be crafted in behaviorally-specific terms that are measurable. This aligns your work to show the “chain-of-impact” that links the change to your initiative’s outcomes. Here are a few examples of Inclusion definitions that imply a measurement connection:

I define Inclusiveness this way… (I have separated elements of the definition such that you can see some of the measurable components):

  • “Inclusiveness is the act or process of utilizing the information, tools, skills, insights, and other talents that each individual has to offer which results in the measurable, mutual benefit (and gain) of everyone.
  • It also includes providing everyone with opportunities to contribute their thoughts, ideas, and concerns.
  • Inclusiveness results in people feeling valued and respected.”

Wikipedia defines Inclusion as: “practice of insuring that people in organizations feel they belong”. Thus, in order to measure the impact of inclusion you must begin by defining what it means to “belong” in behaviorally specific terms.

Miller and Katz (2002) present a common definition of an inclusive value system where they say, “Inclusion is a sense of belonging: feeling respected, valued for who you are; feeling a level of supportive energy and commitment from others so that you can do your best work.”  (Book: “The Inclusion Breakthrough” by Frederick Miller and Dr. Judith Katz)

Another definition from Wikipedia discusses Inclusion, when applied, it creates

  • A shift in organization culture. The process of inclusion engages each individual and makes ‘people feeling valued’ essential to the success of the organization.
  • Individuals function at full capacity, feel more valued, and included in the organization’s mission. This culture shift creates higher performing organizations where motivation and morale soar.

From a measurement point of view, using this Wikipedia definition would require metrics and processes that track and evaluate shifts in organizational culture, engagement, individual perceptions of value, levels of individual functioning, etc.

These few examples highlight some of the requirement to accurately start to report the ROI of Inclusion. It will require strict adherence to a Diversity ROI measurement process and framework that demonstrates a “chain-of-impact” or “chain-of-evidence” that clearly shows that the Inclusion intervention or initiative was a major source of the calculated ROI impact.

In future Blogs, I will further discuss measuring the ROI impact of Inclusion. In addition; let me know what you think about this approach. If you have other guidelines that have been beneficial in your experience, tell us. We will share your examples such that others can learn and grow.

Dr. Ed Hubbard is an expert in Organizational Behavior, Organizational Analysis, Applied Performance Improvement and Measurement Strategies, Strategic Planning, Diversity Measurement, and Organizational Change Methodologies. Dr. Hubbard earned Bachelors and Masters Degrees from The Ohio State University and earned a Ph.D. with Honors in Business Administration. Dr. Hubbard is available for presentations, conferences, training, consulting and can be reached at edhub@aol.com or 707-481-2268.

 

 

 

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A Next Level Approach to “Evolve Your Diversity Scorecard”​

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How well does your existing Diversity measure(s) capture “strategic organizational drivers” that make a measurable difference in bottom-line organizational performance? For most organizations there will not be a very close match between the two lists. Even more important, in those firms where Diversity professionals think there is a close match, frequently, the senior executives do not agree that this second list actually describes how Diversity creates value. In either case, there is a serious disconnect between what is measured, what is important to organizational performance.

These questions are fundamental because new economic realities are putting pressure on Diversity to widen its focus from the traditional role of guardian of ethnic representation, social justice, and well-being to a broader, more strategic role as an important strategic business partner. As a primary source of production and performance impact, our economy has shifted from physical to intellectual capital (which comes in all diversity mixtures such as colors, backgrounds, genders, orientations, thinking styles, etc.). A good idea does not have a specific color, race, creed, gender, sexual orientation or physical ability. It’s just a great ideas and it can come from anyone! As a result, senior Diversity executives and managers are increasingly coming under fire to demonstrate exactly how they are helping the organization “organize, utilize, and support” this critically significant organizational asset to create improved performance and value.

Performance measurement in organizations is not something new, however, in the last 30 years or so, organizations have realized that financial measures alone are not sufficient for evaluating the success of an enterprise.

In the mid-1990s, the balanced scorecard concept was introduced; forcing executives to take a hard look at how many of their metrics were financial and then balance out their scorecards with non-financial metrics. The balanced scorecard approach also recommended that fewer metrics are better. The number of metrics that companies tracked had been increasing each year for many years, but Kaplan and Norton suggested that no one should have more than 15 to 20 metrics per scorecard. This is still a tough sell for analytical executives who love pouring over hundreds of charts each month.

The primary issue that Diversity must deal with is very hard for some to imagine and believe, that is, showing Diversity’s measurable impact on organizational strategy and the financial bottom-line. The ability to utilize a diverse mix of human and other resources to create unique blend of strategy focused solutions, by its very nature, creates an innovative competitive process that is difficult to copy – thus making it a competitive advantage (largely invisible to competitors).

 

Evolving the Diversity Scorecard’s Business Impact

 Balanced Scorecard Image

Current Diversity Scorecards must evolve to move beyond simply counting heads. They must elevate their utility to a level that utilizes “Logic Model-based predictive analytics and processes which more accurately generate “Strategic Outcomes” and “Intended Transformational Impacts.

What are Analytics

Analytics come in different types with a specific focus. They can be defined as follows:

·        “Analytics” is the Science of Analysis

·        “Descriptive Analytics” tells what has happened in the past and usually the cause of the outcome.

·        “Predictive Analytics” focuses on the future telling what is likely to happen given a stated approach.

·        “Prescriptive Analytics” tells us what is the ‘Best’ course of action.

 

Descriptive Diversity Analytics can help us understand human capital challenges and opportunities in utilizing a diverse workforce. Whereas Predictive Diversity Analytics, helps us identify investment value and a means to improve future outcomes from Diversity interventions and initiatives.

Although most organizations have come a long way in introducing better metrics for Diversity on their corporate scorecards, there is still a great deal of work to be done. Even the best scorecards need improvement in some key areas to evolve to the next level of performance impact. Metrics on several Diversity Scorecards focus on counting activities, not producing outcomes and organizational transformations. There is a distinct difference between generating “outputs” from scorecard action plans and producing “Strategic Outcomes” and “Intended Transformational Impacts”. I define “Strategic Outcomes” and “Intended Transformational Impacts as “the planned, intended measurable result or effect of an action, situation, or event; something that follows due to a planned execution of actions which result in intended consequence (or unintended consequences) that add value and drives change.

My new book: “Evolving Your Diversity Scorecard. Maximizing Diversity Business Intelligence with Transformational Analytics” will help develop a Strategic Outcomes Scorecard using Diversity Transformational Analytics® to drive organizational change and “next level” impacts (based upon a “Logic Model” framework).

HH Logic Model Example

Logic models are extremely effective tools for planning, describing, managing, communicating, and evaluating a program or intervention. They graphically represent the relationships between a program’s activities and its intended effects, state the assumptions that underlie expectations that a program will work, and frame the context in which the program operates. Logic models are not static documents. In fact they should be revised periodically to reflect new evidence, lessons learned, and changes in context, resources, activities, or expectations. Our system and approach to Logic models increase the likelihood that a Diversity and Inclusion intervention effort will be successful because they:

• Communicate the purpose of the program and expected results.

• Describe the actions expected to lead to the desired results.

• Become a reference point for everyone involved in the program.

• Improve program staff expertise in planning, implementation, and evaluation.

• Involve stakeholders, enhancing the likelihood of resource commitment.

• Incorporate findings from other research and ROI-based initiatives.

• Identify potential obstacles to program operation so that staff can address them early on.

 

Evolving the Diversity Scorecard requires that we ask key strategic measurement questions and perform specific actions along the Logic Model path to create transformational outcomes, impact and change. This is not a generic, random process. It involves possessing specific Transformational Analytics knowledge, skills and competencies to correctly drive each outcome phase (Initial, Intermediate, and Long-term) to achieve the desired change effect and impact. To gain the tremendous benefits that Diversity and Inclusion offers, our Scorecards and other measurement tools must take full advantage of “next level” practices such as the Hubbard Diversity Measurement Sciences and Analytics® to ensure better predictive accuracy to deliver strategic Diversity outcomes and transformational impacts. These methods provide the knowledge, skills, competencies, and tools to achieve excellence in implementing these paradigm shifting processes. As Diversity professionals, our utility, organizational value, brand reputation, credibility, and success will depend on our capability to demonstrate critical evidence-based impacts of Diversity initiative success. To this end, our Diversity scorecards must keep pace to display, track, and manage these results. Let me know what you think. Dr. Ed.

This article is based upon excerpts from the upcoming book: “Evolving Your Diversity Scorecard”: Maximizing the Use of Transformational Analytics to Drive Organizational Performance by Dr. Edward E. Hubbard, Ph.D. It is scheduled for release Spring 2019. Dr. Ed Hubbard can be reached at edhub@aol.com.

Dr. Ed Hubbard is an expert in Organizational Behavior, Organizational Analysis, Applied Performance Improvement and Measurement Strategies, Strategic Planning, Diversity Measurement, and Organizational Change Methodologies. Dr. Hubbard earned Bachelors and Masters Degrees from The Ohio State University and earned a Ph.D. with Honors in Business Administration. Dr. Hubbard is available for presentations and consulting and can be reached at edhub@aol.com or 707-481-2268.

 

 

 

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Diversity Process Consulting or Intervention Consulting: How Do We Demonstrate Our Unique Value?

pexels-photo-95916.jpegBuilding an Effective Diversity Measurement System

The creation of an effective Diversity measurement system and “best” practices cannot be a mechanical modeling exercise. It must be preceded by an inspection and utilization of basic business principles. It must focus on organizational and departmental strategic thinking as well as an assessment of the desired quality of work-life. Developing the actual measures is easy compared to the amount of time that should be spent thinking about what is important to the organization’s strategic business objectives and the expectations of the diversity measurement process.

Key steps to building an effective measurement system

Creating an effective Diversity measurement system and process that embodies these concepts involves at least five critical steps:

  • Review the Strategic Business Plan for Needs
  • Formulate Research Questions
  • Design the Study Methodology
  • Collect and Analyze Data
  • Implement Solutions and Communicate Results

Each step in the process logically builds on the previous step which generates an evidenced-based framework that creates a “Best Practice” method for proving Diversity’s link to performance.

Dr H Book Tower Graphic for Proposals

With proper training and skill/competency development, one of the more critical roles a Diversity Practitioner and Professional can perform is that of a Diversity Performance Consultant/Technologisttm. This role in the Hubbard & Hubbard, Inc. Diversity Discipline Framework requires the Practitioner to design, develop and deliver or evaluate diversity performance solutions; maintain and apply an in-depth working knowledge in any one or more of the diversity performance improvement areas of expertise; take a disciplined approach to assessing individual and organizational effectiveness in the midst of collective mixtures of differences and similarities, diagnose causes of diversity tensions from differences, similarities and complexities, and recommend a set of interventions; as well as design solutions to improve diverse workforce performance and/or solutions to improve the organization’s performance.

I have always viewed Diversity ROI & Inclusion methods as “performance improvement technologies”. I am also a strong supporter of participatory approaches to performance improvement, from involving stakeholders in the identification of needs and their causal factors to determining solution alternatives, selecting the solution, planning and managing the change, and monitoring and evaluating the change. This active stakeholder participation is critical to the sustainable success of any Diversity & Inclusion (D&I) intervention, not only because we gain real buy-in from stakeholders, but also because part of what we do as rigorous Practitioners ultimately, is to change the way people think about and approach D&I performance solutions in organizations.

Diversity Intervention Consulting is primarily focused on a specific transaction, the provision of an intervention (e.g., Cultural Competency Skills for Leaders training), whether it is a specific process or product. In this case, the performance consultant, as “expert,” carries the bulk of the responsibility for delivering the intervention, but does not typically stick around for the consequences of such interventions. Partially rooted in the sociological tradition in new systems theory which views organizations as self-organizing social systems, Performance/Process Consulting provides a different approach. With a Performance/Process Consulting approach, however, the Diversity Performance Consultant/Technologisttm and the client are equal partners who share the responsibility for the desired change. There is a reduced chance of falling into fads or trendy solutions that may be insufficient or not fully applicable to the organizational realities, because both the Diversity Performance Consultant/Technologisttm and the client are partners in the change and its consequences. Both have a stake in the success of the intervention, and both learn lessons along the way. Moreover, they involve others in the organization, so that these lessons learned benefit more than just a few.

I am convinced that the real value of our work is much more than a roster of interventions (no matter how evidenced-based); rather, it is the paradigm shift that we contribute to in the course of our involvement with our stakeholders. Our ultimate value is in the sustainable and positive change of the organization’s performance system that is now able to operate at its goal or outcome level. While neither resource was utilized exclusively, it is certainly worthwhile for us to reflect on our own approach and determine whether we consciously or subconsciously assessed the situation to determine what balance or blend would be of most value for the given situation.

It is always helpful to review our Performance Consulting approach because of the wide range of relevant topics and ROI-based metrics that fit under the performance improvement umbrella. I am fond of saying that “focusing on tactics without a strategic framework is like learning to run faster in the wrong direction”. You cannot make a strategic contribution without a tight alignment and linkage to the business objectives and success metrics of the organization. If you want to have your interventions resonate with the C-suite and line managers of the organization, they must be based in the real bottom-line needs that drive organizational performance. Whether the organizational initiative is diversity training to teach cultural competency skills, selling products to emerging market clientele, innovating new products and services for a global market, delivering healthcare services, serving governmental constituents, meeting a wide range of student needs, improving the customer service experience, etc., “strategically aligned” diversity performance strategies have the best chance at success and sustainability.

Let’s take a look at an example that helps to clarify this relationship. First, among the organization’s strategic objectives, you find a series of crucial performance areas. One of these areas focuses on an objective of improved customer service. Based upon the importance of this area to the business, the diversity organization has created a corresponding strategic objective to analyze and improve service across all demographic market segments. In the second step, you determine that for service to be improved in these targeted markets, the critical success factor areas must include “improved communication”, “culturally appropriate interactions”, quick access, increased satisfaction, and accurate information. Finally, these critical success factor areas lead you to select diversity performance measures and indicators that support each critical success factor area such as the “percentage of multilingual service transactions delivered”, “number of rings to answer” when a customer calls the organization, “percentage of favorable response on your diverse customer satisfaction survey”, etc. This type of alignment drives improved performance and gains top management support.

Both Diversity Process Consulting and Diversity Intervention Consulting can offer strategic value to the organization. The key is how well each Performance Consulting method meets critical needs of the business to drive its goals, outcomes and success. At what value level would stakeholders rate your internal Performance Consulting methods today? What do you need to do differently to enhance your role as a value-added business partner? Let me know what you think. Want to learn more?? Contact me at edhub@aol.com.

Dr. Hubbard is an expert in Organizational Behavior, Organizational Analysis, Applied Performance Improvement and Measurement Strategies, Strategic Planning, Diversity Measurement, and Organizational Change Methodologies. He holds a Practitioner Certification and Master Practitioner Certification in Neurolinguistic Programming (NLP), a Neuro-science discipline. Dr. Hubbard earned Bachelors and Masters Degrees from The Ohio State University and earned a Ph.D. with Honors in Business Administration.

He can be reached at edhub@aol.com.

 

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Why Diversity & Inclusion Professionals Need Predictive and Other Analytics

Challenges of Diversity Metrics

There’s a fair amount of buzz around Diversity measurement and analytics. Advances in software, newly-available data sources, and how-to manuals have made it easier gain access to Diversity measures. Although interest in measuring the effects of diversity has been growing, the topic still challenges even the most sophisticated and progressive diversity departments. Many Diversity professionals and practitioners know they must begin to show how diversity is linked to the bottom-line or they will have difficulty maintaining funding, gaining support, and assessing progress.

The Data-to-Wisdom Continuum

Over the past several years, Diversity journals abound with volumes of information about the impact of a diverse workforce, primarily from a talent representation point of view focusing on organizational make up covering race, rank, and gender (counting heads). Many of these Diversity professionals are working with inconsistent, basic information and have yet to move from being reactive to proactive and predictive. In short, they have made little progress along the data-to-information-to-wisdom continuum needed to provide sophisticated diverse workforce insights that are critical to strategic decision making. How would you respond to the following questions?

  • Do you struggle with defining or measuring the success of Diversity initiatives or other Diversity interventions?
  • Are you constantly fighting the battle to show and justify the value that Diversity initiatives or other Diversity interventions are bringing to your organization?
  • Does your organization view Diversity initiatives or other Diversity interventions as an expense versus an investment with predicted returns?
  • Do you need to link Diversity initiatives or interventions with the value it produces for your company?
  • Do you need a method of predicting (forecasting) the value of Diversity initiatives or other Diversity interventions to help decide whether to train and/or do something else?
  • Are your current Diversity evaluation efforts always after the fact–do you need a way to measure success using leading indicators that drive continuous improvement?

If you answered yes to any of these questions, then Predictive Analytics for Diversity is for you.

For the past 8 years, I have been researching and developing a new comprehensive “Predictive Analytics for Diversity” approach and framework that addresses all of the above questions and more. My goal often is to create the “next-level” of Diversity ROI-based tools that give Diversity professionals a competitive edge and alignment to drive business performance and results. The Hubbard Predictive Analytics for Diversity framework is designed for professionals looking to break new ground to demonstrate the strategic ROI value of Diversity and Inclusion, or breathe life into floundering Diversity initiatives that have little evidence-based value.

What are Analytics

Analytics come in different types with a specific focus. They can be defined as follows:

  • “Analytics” is the Science of Analysis
  • “Descriptive Analytics” tells what has happened in the past and usually the cause of the outcome.
  • “Predictive Analytics” focuses on the future telling what is likely to happen given a stated approach.
  • “Prescriptive Analytics” tells us what is the ‘Best’ course of action.

Descriptive Diversity analytics can help us understand human capital challenges and opportunities in utilizing a diverse workforce. Whereas Predictive Diversity Analytics, helps us to identify investment value and a means to improve future outcomes from Diversity interventions and initiatives.

Companies struggle with evaluating whether their programs meet business needs and whether they are worthwhile investments. Reasons given for not measuring Diversity’s impact on business outcomes include statements such as “It is too difficult to isolate Diversity’s impact on results versus the impact of other factors”, or “Evaluation is not standardized enough to compare well across functions”.

Sound business practices dictate that Diversity & Inclusion professionals collect data to judge progress toward meeting the organization’s strategies and annual multi-year objectives. The Hubbard Predictive Analytics Framework, for example, is a new approach that provides compelling Diversity & Inclusion (D&I) data to executives, including:

  • predicting success of the D & I intervention in the three areas of Intention, Adoption, and Impact and measuring to see if success has been achieved;
  • leading indicators of future adoption (transfer of the intervention outcomes) and Impact (business results);
  • making recommendations for continuous improvement; and
  • isolating Diversity and Inclusion’s impact versus the impact of other factors.

The beauty of Predictive Analytics for Diversity is that it uses leading measures (Intention and Adoption) as a signal of results (Impact). If the leading indicators are below predicted success thresholds, actions can be implemented to “make adjustments” so that the desired results are realized.

You can interweave outcomes and leading indicators into Diversity interventions during the design and delivery phases to enhance their predictive validity and consistency in achieving sustained benefits. Predictive Analytics practices helps Diversity and Inclusion organizations move from an event-driven function to one that predicts success, measures its performance against those predictions, and is seen as returning significant shareholder value for the funds invested.

Benefits of Predictive Analytics for Diversity

The area of human capital analytics and “big data” has been around us for a while, yet I have found few Diversity professionals who are ready to step up to the challenge and opportunities that utilizing Predictive Analytics for Diversity offers. The greatest strength of a Predictive Analytics approach for Diversity is the active involvement of stakeholders setting their own intentions and measurement of adoption rates. This adds a high level of credibility to the practice of forecasted Diversity outcomes. To reap its benefits, it requires a genuine commitment to implementing a “science-driven”, rigorous approach to demonstrate Diversity’s value as a worthwhile business investment.

In addition, predictive analytics practices involving Diversity and Inclusion must implement measurement approaches based upon “utilization” (making heads count) not merely representation (counting heads). The presence of Diversity alone does not ensure progress, the strategic utilization of Diversity does. Diversity’s ability to add investment value and improved capability means, at least to some degree, the ideas, creativity, new perspectives, etc., generated from a diverse workforce have been applied and have generated a modicum of benefits. Predictive Analytics for Diversity and Inclusion offers tremendous insights into the value of a Diversity and Inclusion initiative’s approach and creates “informed-choice” decision making potential.

A recent monograph published by The Conference Board cited that organizations begin their analytics journey by using data at hand. Most organizations have access to an employee head count that decision makers can use to manage staff cost. This usage is akin to organizations that simply use head count data to reflect race, rank, and gender to ensure ethnic Diversity is present at all levels. Other organizations, however, use people data to make real-time staffing decisions to help drive revenue and performance. MIT Sloan Management Review, in collaboration with IBM Institute for Business Value, describes a continuum representative of organizational capability with analytics. They conducted a survey of more than 3,000 business executives, managers, and analysts from organizations around the world. Based on “how thoroughly their organization had been transformed by better uses of analytics and information,” the authors segmented respondents’ organizations into three categories:

1) Aspirational organizations that use analytics to justify actions. The focus is primarily on efficiency rather than revenue growth, and they have limited ability to capture and analyze data to make decisions.

2) Experienced organizations that build on what they learned at the aspirational level and use analytics to guide actions. They focus on revenue growth, with less focus on efficiency. While they still lack an understanding of how to leverage analytics for business value, they are moderately skilled at capturing, aggregating, and analyzing data to make decisions.

3) Transformed organizations are highly skilled in analytics across functions. They use analytics as their competitive differentiator. These organizations focus more on revenue growth and less on cost than either the aspirational or experienced organizations. Data analysis includes the most rigorous approaches to make decisions using insights to guide future strategies as well as day-to-day operations. According to the MIT study, organizations described as transformed are “three times more likely than aspirational organizations to indicate that they substantially outperform their industry peers.”

Applying this three-tier framework to your organization’s use of analytics for Diversity, what level of practice and application does its use of metrics reflect: Aspirational, Experienced, or Transformed? Are you ready for the full implementation of Predictive Analytics for Diversity and Inclusion as an integrated practice in your organization’s Diversity measurement strategy?

Beyond these benefits, you may be wondering why should Diversity professionals learn these new analytic skills? No one is really asking us to provide measures other than “representation”, “rank” and “gender”. Looking at a few numbers helps to answer this question. Let’s start with intangibles for example – organizational assets that are not physical in nature. Intangibles include intellectual property, knowledge, reputation, etc. These sorts of assets represent an ever-growing percentage of the average organization’s market value, increasing dramatically from 9 percent of market value in 1980 to 65 percent today.

And what do all forms of intangibles have in common? They’re created by people. A few decades ago, if you wanted to increase your company’s value, you focused on managing your physical assets – plants, equipment, etc. Today, if you want to increase value, you need to manage your people – your human capital.

This, more than anything else, explains why analytics are now an essential strategic Diversity professional competence area. Executives and boards of directors are always focused on company value. Today, that means they need to be focused on their people. Some companies and Diversity practitioners recognized this earlier than others, and some companies have done a better job managing their people. How have those companies fared? Extraordinarily well!

A Boston Consulting Group study from 2012 found that companies appearing on the Fortune “100 Best Companies to Work For” list at least three times in a ten-year period cumulatively outperformed the market by an average of over seven percentage points per year for ten straight years.

All told, the numbers certainly support the world’s current fascination with analytics – and suggest that focus will continue to intensify in the years to come. Are you on board? If so, you will find an informative body of knowledge and insights waiting for your use to drive strategic performance improvement and success for your organization!

 

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