Cognos Workforce Analytics

1
Cognos Workforce Analytics

• Bill Maloomian Regional Manager Performance
  Applications

2
Cognos Leadership

• Leader in Performance Management
• 825.5 million annual revenue (FY2005)
• 522.9 million in cash, no debt
• 23,000 customers in 135 countries
• 80 of Fortune 1000 target Global 3500
• Strong channel 3,000 channel partners
• Competitive advantage
• - 3,300 employees
• - 850 strong RD team
• - 2,000 customer-facing field force

3
HR Industry Footprint

• Cognos Performance Management solutions have
  helped many leading organizations make strategic
  decisions around staffing, planning, and HR
  budgeting that support company goals

For success stories, see www.cognos.com/solutions/
department/human-resources/customers.html
4
The Experience to Help You Succeed

• Cognos Applications
• Over 300 Customers
• Over 7 Years of Wisdom

I wish we had this 10 years ago. We wouldve
been so much further ahead. Keith Lewis,
Vice-President, Business Development Advantis
Technologies, inc.
5
Reflections on the Value of Human Capital

• We spend all our time on people. The day we
  screw up the people thing, this company is over.
  
• - Jack Welch Chairman CEO General Electric

6
Workforce Management Landscape

• CEOs Need HR to Act Strategically
• Corporate success does not match corporate goals
• Poor alignment between business strategy and HR
  strategy
• 67 of HR IT functions do not align with
  corporate or business unit strategies
• HR Practitioners cannot get timely, actionable
  insights into their workforce
• Other Industry Challenges
• Graying workforce/looming skills shortage
• Increasingly competitive labor market
• More fluid workforce

Need timely visibility into workforce measures
to optimize planning, decisions
The Office of Strategy Management, Robert S.
Kaplan David P. Norton, Harvard BusinessReview,
October 2005.
7
HR Impact on Bottom Line

• HR costs are a significant of total operating
  costs!

60 of HR Executives cite better alignment of HR
metrics with corporate strategy as a top
priority 71 agree that providing tools to
analyze HR metrics is their biggest challenge 2
report having a fully automated HR Metrics system
30 Compensation
1 HR Admin
8 Benefits
4 Staffing
43 People costs
57 Other Operating Expense
Source Saratoga Institute, Talent Market Group
Source Corporate Leadership Council
8
Challenges in Human Resources Retaining Key
Employees and Cultivating Talent

• Financial Services More Than Half of Customer
  Defectors Switched Firms Because Their Broker
  Switched.
• Source The Loyalty Effect, Frederick F.
  Reichheld, HBS Press 1996
• Public Sector By the End of 2005, 40 of All
  Federal Workers, and 71 of Senior Executives,
  Will be Eligible to Retire.
• Source Strategic Recruitment for Government,
  The Performance Institute, February 2003
• Manufacturing 80 of US Manufacturers have
  Serious Shortage of Qualified Workers.
• Source 2005 Skills Gap Report A Survey of the
  American Manufacturing Workforce, National
  Association of Manufacturers, Deloitte Consulting
• Utilities 40 of Senior Engineers and 43 of
  Shift Supervisors Eligible for Retirement by 2008
• Source Workforce Trends to Deliver Utility
  Industry a Knock-Out Blow, Hay Consulting

9
Challenges in Human Resources Disconnect Between
Corporate Strategy and HR Practices

• Growth. Responsiveness. People. The three top
  issues on the CEOs agenda.
• Cant achieve Growth and Responsiveness
  without People
• Most Chief HR Officers dont feel they have the
  resources necessary to address the CEOs
  priorities

Source IBM Global Human Capital Management Study
10
So What? Retention and Workforce Performance
Management Have a HUGE Impact on Profitability
High Performance Work Practices Lead To
High Performance Work Practices include
comprehensive employee recruiting and selection,
incentive compensation and performance
management, and extensive employee involvement
and training.
Source Mark A. Huselid, The Impact of Human
Resource Management Practices on Turnover,
Productivity, and Corporate Financial
Performance, Academy of Management Journal
11
Does HR Align with the Business?
Source Veritude, 2005
12
What is Cognos 8 Workforce Performance ?

• A next-generation packaged analytic application
  that
• Provides HR, executives and line managers with
  timely insight on key workforce measures
• Reporting, Analysis, Metrics
• Headcount, turnover, workforce demographics,
  retention, employee performance, etc.
• PSFT 8.3 / 8.9 (SAP v5.0 under development)
• Transforms transactional workforce data in to
  actionable information
• Complete consistent, relevant, accurate,
  auditable
• Drill through to detail
• Enables organizations to manage and optimize
  their most costly asset

13
What is Cognos 8 Workforce Performance ?

• Built upon an Adaptive Application Framework that
  
• Model-driven approach VS programmatic-driven
  approach
• Configures to organization-specific HR practices
• Model driven approach reduces TCO and increases
  business agility

14
The Current Situation
Authored BI (Reports, Analysis, Metrics)
Semantic Layer
Warehouse
ETL Code
Custom Source
Peoplesoft HCM
15
Cognos 8 Workforce Performance
SKILL TIME ERROR LEVEL RATE
Authored BI (Reports, Analysis, Metrics)
HIGH / MEDIUM HIGH MEDIUM
BI AUTHOR
C O G N O S 8
HIGH / MEDIUM HIGH MEDIUM
Semantic Layer
BI MODELLER
Warehouse
HIGH LONG MEDIUM
Data Access Integration
WAREHOUSE DESIGNER
HIGH LONG HIGH
ETL Code
ETL DEVELOPER
ADAPTIVE APPLICATION FRAMEWORK
HIGH MEDIUM MEDIUM
Custom Source
Peoplesoft HCM
SOURCE ANALYST
16
Cognos 8 Workforce Performance
SKILL TIME ERROR LEVEL RATE
ROLE-SPECIFIC REPORTS ANALYSIS METRIC
TYPES GENERATED FM MODEL WAREHOUSE ETL/DDL GENE
RATED
BI Generator (Reports, Analysis, Metrics)
Configurable Information Model Supplied
HIGH / MEDIUM HIGH MEDIUM
BI AUTHOR
C O G N O S 8
HIGH / MEDIUM HIGH MEDIUM
Semantic Layer Generator
BI MODELLER
Configurable Warehouse Model Supplied
Warehouse Generator
HIGH LONG MEDIUM
Data Access Integration
WAREHOUSE DESIGNER
HIGH LONG HIGH
ETL Generator
ETL DEVELOPER
ADAPTIVE APPLICATION FRAMEWORK
Source Model Generated
FM Extension
HIGH MEDIUM MEDIUM
Custom Source
Peoplesoft HCM
SOURCE ANALYST
17
Impact to Organizations
From To
Implementation Time Quarters/Months Months/Weeks
Skill-sets Required Many Highly Specialized Technical Significantly Reduced Requirement
Best-Practices Complex Coding Configurable
Continuous Relevance No Yes
Upgradeable Hard/Rare Yes
Data Lineage / Auditable ?? Yes
Partner Value Low High
18
Workforce Analytics v1 Subject Areas

• Headcount and Turnover Analysis
• Headcounts, Workforce Demographics, Hires,
  Transfers, Terminations
• Detailed granularity with Calendar (e.g. weekly)
  and Fiscal (e.g. monthly) Snapshot Summaries
• HR Budget
• Compensation and Incentive Analysis
• All Earnings and Withholdings of All Employees
• Regular pay, overtime pay, incentives, bonus,
  regular hours, overtime hours
• By Pay Group, Pay Date, Company, Business Unit,
  Organization, Earnings Type, Withholding Type,
  Dates
• Performance Review Analysis
• Employee Reviews, Ratings, Review Points, Total
  Points
• By Review Type, Employee, Review Status, Review
  Type, Organization, Dates,

19
Cognos Workforce Analytics Helps You Improve
Profitability with Pre-packaged Workforce
Management

• Provides Timely Insights to Assist Workforce
  Management and Stem Employee Attrition
• Pre-Packaged HR Information
• Analytic Paths Support Best HR Practices
• Supports Key HR Process

20
Cognos 8 Workforce Analytics
MEASURES
MONITOR PLAN
OUTCOMES With Supported Analysis
By
ROI per employee Headcount cost Headcount
variance Requisition fulfillment cycle
time Termination cost per employee Termination
cost Turnover rate
termination rate FTE count Human capital
ROI Time to hire Turnover rate ....
Headcount Turnover
Headcount, Planning
Annual compensation Benefit plan enrollment
Compensation increase Increase
Variance Customer service award
variance Dependant count Employee, Employer
contribution Employee opt out ratio Incentive
award Hourly pay rate .
Compensation, Incentive
Compensation Salary Planning
Incentive Pool variance Benefit cost per
employee Merit Pool Variance increase variance
count
Payroll Liability Planning
Payroll Reconciliation Analysis
Benefits Planning
Improve Growth and Profitability
Restructuring planning
Performance review result Contribution
factor Maintained qualification count Review
result Scarcity level Succession
percentage Training of revenue .
High Performance ratio Low Performance
ratio Employee Development cost Development cost
per employee High Performance turnover rate
Performance, Succession
Recruitment Planning
Absence rate Accident rate Exposure hours Accept
ratio Agency effectiveness Cost to hire Vacation
days balance Vacation days entitlement
Absence days count Accident Severity
Rate Accident Lost time Rate
Recruiting , Absence Accident Analysis
Trained, certified headcount Investment
factors Training cost factors Revenue/expense
ratios
Completion, attendance ratios Program,
certification expenses Activity
profitability Performance outcome
ratios Satisfaction ratings ...
Learning Management
21
An Example of Workforce Analytics Today, HR
Cant Meet Changing Business Needs
Many, Sequential, Very Technical Steps A Long,
Error-Prone Process
Report Request
22
The Cognos Distinction

• Provides Actionable Intelligence
• Configurable Best Practices
• Role based Analytics, Metrics and Reporting
• Designed for HR, executives and line managers
  throughout the organization
• Adaptive Application Framework
• Flexibility to change as business needs change
• Reduces IT complexity
• Reduces need for highly scarce IT resources and
  lengthy development initiatives
• Immediate access to critical information,
  throughout the organization

23
In Closing
I Saw My Job As Allocating People And Dollars To
Opportunities.
I Wasnt Designing Products.
I Was Putting People Where I Thought They Were
Right For The Job.
I Did That With My Partners in HR.
- Jack Welch, Chairman CEO, General Electric
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Backup Slides
25

• Anecdotes from the field
• Industry slides the ones from the field session
• ROI / Case Study
• Deeper dive
• History of Cognos AA Who is Cognos

26
Cognos 8 Analytic Applications
Adaptive Applications Platform To Radically
Change the Economics of Building, Maintaining and
extending Analytic Applications
Configurable Best-Practices Content Business
Pain Point Focused Applications Targeted at All
Levels of Management to Enable Breakthrough
Performance
Cognos 8 BI Platform
27
Cognos 8 Analytic Applications Architecture

• Scalable, Service Oriented Architecture
• Portal Services
• Data Access Services
• Security Services
• Etc.

28
Changing the Game for Analytic Applications
From To
Implementation Time Months Weeks
Skill-sets Required Many Highly Technical Reduced Skill Sets
Best-Practices Complex Coding Easy (Configure)
Meets Changing Needs No Yes
Upgradeable Difficult Expensive Easy
Data Lineage / Auditable No Yes
29
Does HR Align with the Business?
Source Veritude, 2005
30
Cognos Workforce Analytics Helps You Improve
Profitability with Pre-packaged Workforce
Management

• Provides Timely Insights to Assist Workforce
  Management and Stem Employee Attrition
• Pre-Packaged HR Information
• Analytic Paths Support Best HR Practices
• Supports Key HR Process

31
Cognos 8 Workforce Analytics
MEASURES
MONITOR PLAN
OUTCOMES With Supported Analysis
By
ROI per employee Headcount cost Headcount
variance Requisition fulfillment cycle
time Termination cost per employee Termination
cost Turnover rate
termination rate FTE count Human capital
ROI Time to hire Turnover rate ....
Headcount Turnover
Headcount, Planning
Annual compensation Benefit plan enrollment
Compensation increase Increase
Variance Customer service award
variance Dependant count Employee, Employer
contribution Employee opt out ratio Incentive
award Hourly pay rate .
Compensation, Incentive
Compensation Salary Planning
Incentive Pool variance Benefit cost per
employee Merit Pool Variance increase variance
count
Payroll Liability Planning
Payroll Reconciliation Analysis
Benefits Planning
Improve Growth and Profitability
Restructuring planning
Performance review result Contribution
factor Maintained qualification count Review
result Scarcity level Succession
percentage Training of revenue .
High Performance ratio Low Performance
ratio Employee Development cost Development cost
per employee High Performance turnover rate
Performance, Succession
Recruitment Planning
Absence rate Accident rate Exposure hours Accept
ratio Agency effectiveness Cost to hire Vacation
days balance Vacation days entitlement
Absence days count Accident Severity
Rate Accident Lost time Rate
Recruiting , Absence Accident Analysis
Trained, certified headcount Investment
factors Training cost factors Revenue/expense
ratios
Completion, attendance ratios Program,
certification expenses Activity
profitability Performance outcome
ratios Satisfaction ratings ...
Learning Management
32
Key HR Challenge - Retention Recruiting
Source Becoming a Magnet for Talent, Global
Talent Pulse Survey Results 2005, Deloitte
33
Smart Retention is Driven by Insight
Source Towers Perrin, January 2004