Will CFOs Take Over HR Analytics?

HR and Analytics I just read an article on how HR is apparently failing in the battle with analytics. According to Deloitte research, only 14% of HR organizations in the US are currently leveraging advanced or predictive analytics to make those all-important talent decisions. Despite all the promises held out for this year, therefore, it appears things haven't changed that much. The stumbling block continues to be "how and where to start." As Alessio Marinelli, Director of Analytics at Advanced Merchant Payments, said in an interview with me earlier this year (read: Don’t Wait to Tackle Big Data (or Risk Falling Behind), the danger is that if you're late to the party you’ll miss the opportunity. The point is that the capability exists at the moment and it behooves organizations that are thinking well into the 5-10 year future to invest now for the far greater returns this will reap the organization later. Across shared organizations, finance has generally taken the lead in pushing data and standardized processes. This is easily tracked back to the numbers-based, transactional and factual nature of its processes that are easily standardized. HR, with its slightly "messy" personnel issues is not as straightforward. And yet, many of our members across the world have been recognized by their organizations for establishing procedures, defining global processes, and providing a robust framework on the basis of which excellent talent is recruited, nurtured, deployed, and retained. Finance leaders understand the value of their analytics, and the senior management team can easily buy into this. While just as obvious, HR faces more of a battle. Yes, it's come a long way from the "personnel management" of the past but its full potential of effectively managing and deploying that vital skillset – from the CEO down to mail room staff – is still not understood. Why? Deloitte's article1 suggests the CFO take over responsibility to lead analytics across the organization – that means all analytics, including HR, marketing, etc. It rightly points out that CFOs wield all the power and already control much of the data. More importantly, the position commands respect, impact, and capability. The CFO’s world is based on data. Many HR leaders fall short on this. And that, perhaps, is where companies could make the biggest difference. SSON columnist Anupam Diwan has impressed our readers time and again through her very scientific approach to HR services (see her "HR Analytics" columns). We need more leaders like this. HR leadership is not about a friendly smile and a desk-side manner – it's about understanding what employees mean to an organization, how they define corporate success and failure, what skills are needed to meet the challenges of tomorrow's world. This is rightly a wake-up call to HR leaders. If you snooze, you may lose. The data we are talking about here has impressive power. It would be a shame not to be the one to deliver it. As always, the solution is to start small: go for the low hanging fruit. Pick a project, pilot it, and announce the results loudly. There are plenty of resources out there to help. One internal resource is marketing. That department is full of people who are expert at tracking trends and data between your company and its customers. All you need to do is borrow someone for a month and redefine that knowledge for your purposes. (Note: It’s been done at companies like P&G to acquire ‘branding’ knowhow for the Shared Services team; the same can be just as easily applied to data analytics). [inlinead] [Note: if you liked this article, please use the buttons on the left side of the screen to share it across your LinkedIn groups – and contribute to this discussion by posting your thoughts in the comment section, below. Thank you for being part of SSON's community - Barbara Hodge] Read Deloitte’s article: Will HR Lose the Battle Over Analytics?

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