McKinsey Case Study on People Analytics
Introduction
This paper is concerned about the utilization of people analytics in taking the business to the next level. People analytics can as well be referred to as people metrics or HR analytics. People analytics is an approach that entails the utilization of data-based practices to manage the workforce in an organization. The paper will be based on the analysis of a case study “Using people analytics to drive business performance.” The information used in the article is extracted from the case study criticizing McKinsey Company’s operation and the result evidenced after conducting a pilot study. In light of the above, the paper will discuss the benefits and impacts of integrating people metrics into the company’s organization in addition to a personal view regarding the approach.
Benefits of people analytics/metrics to an organization
People metrics is considered as among the vital components in organizations since it entails linking various success aspects including training, talent and turnover. Notably, people metrics contribute significantly to boosting hiring practices. According to Fecheyr-Lippen, Schaninger & Tanner (2015), it is through the use of well-organized data that HR managers find it possible to manage the hiring process of any workforce capacity. Besides, hiring workforce requires HR managers to critically analyze candidate’s information based on their provided personal data. Increased employee retention is yet another benefit witnessed among the organizations that utilize data analytics (Arellano, DiLeonardo, & Felix, (2017). Data analytics contributes significantly to keeping every bit of employee information, which will, in turn, assist in resolving their needs.
Arellano, DiLeonardo & Felix, (2017) enlightens that data analytics enhances task automation. Task automation goes a long way with linking the various operations undertaken in an organization by retrieving data from multiple departments. Fecheyr-Lippen, Schaninger & Tanner (2015) further suggest that data analytics acts as a tool for imparting process improvement. Company’s operations are composed of a series of processes with a different set of data. As such, HR managers need to incorporate data analytics into managing information from various activities, thereby attaining continuous quality improvement. Improved employee experience is yet another benefit gained from the use of data analytics. As far as people analytics is concerned, it is much more possible to develop employee’s talents. HR managers utilize the data analytics to analyze employee past performance which will assist in tracking their improvement as well as expertise.
Impacts of people metrics to the organizational goals
Based on the provisions of the case, it is evident that data analytics plays a vital role in achieving McKinsey’s goals. According to Arellano, DiLeonardo & Felix, (2017), McKinsey utilized data analytics for straightening the selection and onboarding process. Selection process entails compiling a list of the various candidates qualifying for a particular position. Notably, people metrics impacted the organization positively by giving a detailed analysis of the candidate’s personalities that are highly considered during hiring. Again, data scientists from the organization could analyze employee personalities hence promoting their cognitive skills. The HR managers could as well as utilize data analytics to track employee’s movement inside the restaurant with the aid of a sensor. Arellano, DiLeonardo & Felix, (2017) opine that the sensor could identify employee’s interactions with clients in addition to recording their tone. A sensor is a form a monitor managed using data analytics purposely to instigate employees to focus more on their duties.
Arellano, DiLeonardo & Felix, (2017) enlightens that people metrics contribute partly during alignment of day to day management of the company’s operation. Measuring the quality of services provided has never been easy, a situation which forced the organization to use people metrics. The organization developed an Organizational Health Index, which a form of people analytics to examine 37 management activities (Arellano, DiLeonardo & Felix, (2017). This approach was geared towards assessing the quality of services provided to boost its long term performance. Importantly, it was through effective use of people metrics that McKinsey managers began to view operations from different dimensions, hence increasing the process’s understanding.
Surprises evidenced in the results of the company’s study.
The results attained after conducting the pilot study seem to be more surprising. In the first place, I cannot comprehend how customer scores can improve for more than 100% with four months, yet it is a process which demands a considerable time to build customer satisfaction. Besides, attaining a 100% plus customer’s satisfaction requires a company closely monitor the various process as opposed to focusing solely on people analytics. I can firmly attest that an appealing customer score was not only fueled by people metrics but also other aspects. As such, it is a surprise for the authors to note McKinsey’s positive results were as a result of HR analytics only.
Arellano, DiLeonardo & Felix, (2017) brings forth a surprise by suggesting that selection, development, management and retention of employees does not necessarily depend partly on instincts. Control of the human workforce goes along with triggering their instincts, and there is a higher chance that employee will react in response. To this end, there is a clear indication that human instinct should be among the significant considerations during the selection process. On the other hand, Arellano, DiLeonardo & Felix, (2017) suggested that consideration instincts are not much necessary in absorbing and developing employee’s skills. The author’s opinion may be seen as a surprise since its views are contrary to the provisions of existing research.
My perception of people analytics before and after this assignment
It worth noting that my perception of the contribution of people analytics in shaping organizational has changed significantly. Before analyzing the case, I did not have a view that HR analytics boost the visibility of results and processes for a particular organization. However, I can now track various processes and outcomes using people analytics. Precisely, I can identify the most appropriate method for choosing qualified personnel in addition to accessing the capabilities of multiple employees. It was not easy to utilize data analytics is reshaping the company’s long term goals. Equally, I could hardly link the company’s objectives with the provisions of data analytics. To this end, I can comfortably track the past and current trends of an organization which will contribute hugely in accessing or putting in place realizable objectives
I could hardly monitor and understand hiring processes before examining the McKinsey case while putting into consideration data analytics. Again, I could not comprehend the significance of incorporating people metrics into the company’s operations. To this end, I can identify and monitor the inputs and outcomes utilized during the implementation of people metrics. Again, I can describe the processes undertaken before, during and after the absorption process of employees into an organization. Precisely, the pre-hiring methods entail informing candidates about a particular vacancy (Leonardi & Contractor, 2018). During hiring, the HR team is required to select the most favourable candidate whom it will later improve their skills hence promoting retention.
Conclusion
Overly, the above illustration can be relied entirely by a person intending to explore more on people analytics. Again, it is evident that organizations need to put more emphasis on HR analytics to attain continuous quality improvement. A reader can count on people analytics to run data-driven processes which will aid in linking various organization’s activities. Importantly, the McKinsey case study is a much relevant tool for attaining a broader view of people analytics. However, the case’s authors failed to consider human instincts during hiring, absorption and development of employees.
References
Arellano, C., DiLeonardo, A., & Felix, I. (2017). Using people analytics to drive business
performance: A case study. McKinsey Quarterly, 6. Retrieved from https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/using-people-analytics-to-drive-business-performance-a-case-study
Fecheyr-Lippens, B., Schaninger, B., & Tanner, K. (2015). Power to the new people
analytics. McKinsey Quarterly, 51(1), 61-63. Retrieved from http://www.ohisolution.com/media/12201/Power-to-the-new-people-analytics_McK-Quarterly_March2015.pdf
Leonardi, P., & Contractor, N. (2018). Better people analytics. Harvard Business Review, 96(6),
70-81. Retrieved from https://empowerment.ee/wp-content/uploads/2018/11/Better-People-Analytics-Measure-Who-They-Know-Not-Just-Who-They-Are.pdf