Last week, I published Part 1 of the 10th annual compilation of my 60 best resources on people analytics and HR of 2022. Thanks to all of those who shared, commented on and reposted Part 1. It is much appreciated.
Part 2, herein, covers resources on the following five topics: vi) the evolution of HR, HR operating models and the CHRO, vii) building a data driven culture in HR, viii) workforce planning, skills, and talent marketplace, ix) leadership and culture, and x) diversity, equity, inclusion and belonging.
To recap, Part 1 covered five topics: i) the future of work and people strategy, ii) workplace design and strategy, iii) AI and the world of work, iv) people analytics, and v) employee experience, listening and wellbeing. You can also catch up with previous editions for the last decade: 2014, 2015, 2016 2017, 2018, 2019, 2020, 2021 and 2022 (Part 1 and Part 2).
I hope you enjoy reading the selections for 2023. If you do, please subscribe to my weekly Digital HR Leaders newsletter, which is published every Tuesday via Insight222, and tune in to the Digital HR Leaders podcast, which returns on January 16 with a special episode featuring Dawn Klinghoffer, Thomas Hedegaard Rasmussen, and Jeremy Shapiro on the outlook for people analytics in 2024.
DAVE ULRICH, JOE GROCHOWSKI, NORM SMALLWOOD, JOE HANSON, AND ERNESTO USCHER - What Makes an Effective HR Function? An HR Value Logic
A glut of research was published in 2023 on the evolution of the HR operating model from the likes of McKinsey, Deloitte and Mercer. Most lean on the pioneering work of Dave Ulrich and his colleagues back in 1995, in what is now commonly referred to as the ‘Ulrich model’. As such, this immensely insightful article by Dave and his colleagues at RBL: Joe Grochowski, Norm Smallwood, Joseph Hanson, and Ernesto Uscher is a must-read for anyone reviewing their HR operating model. The article defines the value HR provides to stakeholders, analyses some of the recent research on HR operating models, couples this with The RBL Group’s own research, and provides guidance on steps to a more effective HR function (see FIG 24) and a diagnostic of ten dimensions of HR effectiveness (see FIG 25) to improve the value HR can create. A tour de force.
HR is not about HR but about the value HR creates for stakeholders
FIG 24: Steps To An Effective HR Function? (Source: The RBL Group)
FIG 25: Assessment of Ten Dimensions of HR Effectiveness (Source: The RBL Group)
SANDRA DURTH, NEEL GANDHI, ASMUS KOMM, AND FLORIAN POLLNER – HR’S new operating model: A new approach to human resources
Excellent analysis from McKinsey based on qualitative interviews with over 100 chief human resources officers on how the HR operating model is changing to drive value in today’s volatile business environment. In the article the team of Sandra Durth, Neel Gandhi, Asmus Komm, and Florian Pollner identify and describe five HR operating model archetypes (see FIG 26). The authors explain how these operating models are premised on eight innovation shifts, with each archetype typically based on one major innovation shift and supported by a few minor ones.
In large, diversified organizations, CHROs may find that different archetypes fit the differentiated needs of specific businesses better and may adopt a combination of HR operating models.
FIG 26: Five emerging HR operating models (Source: McKinsey)
MARC EFFRON | TALENT STRATEGY GROUP – HR Operating Model Report 2023
There is a wealth of insights from Marc Effron and his team at The Talent Strategy Group in their report on how more than 200 companies are structuring and operationalising HR. Insights include: (1) 86% of CHROs report to the CEO, which certainly helps answer the perennial ‘seat at the table’ question, (2) HR is growing across all parts of the function - for example, the support ratio for HRBPs to employees has decreased, (3) From a people analytics perspective, the study finds that 35% of people analytics leaders report to the CHRO, which mirrors the rise we have seen in our Insight222 People Analytics Trends researchyear on year since 2020, and (4) However, as the report states:
The fact that People Analytics reports more frequently to Shared Services and Other HR Functions than to the CHRO or Talent Management suggests a potential misunderstanding of the strategic role of the function. It may also, however, suggest that the COE is providing more reporting and less true analytics in many organizations.
FIG 27: CoE reporting lines to the CHRO (Source: Talent Strategy Group, HR Operating Model Report 2023)
KATHI ENDERES - Building the Dynamic Organization: Critical for the Post-Industrial Era
Kathi Enderes breaks down findings from research she and Josh Bersin have conducted with Gloat. It highlights that instead of designing a company around jobs, Dynamic Organizations instead organise around people and skills. Kathi’s article provides a framework (see FIG 28), a maturity model, and data on the impact of Dynamic Organizations. I recommend reading this alongside the subsequent research published by Josh and Kathi on Systemic HR, which Josh summarises in this podcast.
FIG 28: A framework for a Dynamic Organization (Source: Josh Bersin Company)
ELLYN SHOOK, YUSUF TAYOB, AND LAURIE HENNEBORN - The CHRO as a growth executive Article | Full Report
Research by Accenture finds that by unlocking the growth combination of data, technology and people, companies can generate a premium of up to 11% on top-line productivity, with the people element making up 7% of that alone. However, the study also finds that just 5% of large, global organisations are realising this. The spearhead of the companies that are is a new breed of CHRO – the ‘high-res CHRO’ - one that is stepping up to lead their C-suite peers in connecting data, technology and people and cultivating collaboration. The report details how to spot and support High-Res CHROs, how they effect change, and provides guidance on the way forward. The report is co-authored by Ellyn Shook, Yusuf Tayob, and Laurie Henneborn, MSLIS, and features contributions from a number of CHROs including Giuseppe Addezio, Christine Deputy , Kerry Dryburgh, Lauren Rusckowski Duprey, Darrell Ford, Francine Katsoudas, and Donna Morris.
FIG 29: Three things High-Res CHROs do differently to put the forces of change to work (Source: Accenture)
JONATHAN GORDIN, SHARI CHERNACK, KAREN SHELLENBACK, AND YAMILE BRUZZA | MERCER - Evolving the CHRO role in a rapidly changing world of work
41 percent of CHROs wish they had had a greater depth of knowledge in people analytics before stepping into their roles. That is a standout finding from Mercer’s 2023 CHRO report. Many CHROs also conceded that they wish they had assumed the role with a greater understanding of business and strategy. The report, by Jonathan Gordin, Shari Chernack, Karen Shellenback, and Yamile Bruzza, also digs into the growing importance of technology and analytics including the need for CHROs and their leadership teams to upskill themselves and act as role-models in areas such as data literacy, how the CHRO role will evolve (see also FIG 30), actions to develop HR leaders, and key attributes of CHROs.
The ability to understand the business you are in is critical to success as a CHRO — the people strategy must be an extension of the business strategy
FIG 30: How the CHRO role will evolve (Source: Mercer)
ROB BRINER - Aligning HR with the business through the evidence-based HR process
Rob Briner makes the case for evidence-based practice and how it applies to HR, explaining what it is and why it is effective. Rob breaks down six key steps in the evidence-based HR process (see FIG 31). He then applies the evidence-based approach to a case study to understand and solve high employee turnover.
FIG 31: The Evidence-Based HR Process (Source: Rob Briner)
NAOMI VERGHESE AND JONATHAN FERRAR - Upskilling the HR Profession: Building Data Literacy at Scale Article | Full Report
In conversations I have with chief human resources officers, people analytics leaders and other senior human resources executives, improving the data literacy of HR professionals continues to be a challenge. A study by my Insight222 colleagues Naomi Verghese and Jonathan Ferrar, highlights four key findings to support organisations seeking to build data literacy in HR at scale: (1) Role-modelling by the CHRO and HRLT is essential (see FIG 32), (2) responsibility for upskilling should sit with the people analytics leader, (3) Five skills form the core of data literacy for HR, and (4) Companies should invest appropriately for a multi-year upskilling programme of between $600 and $800 per HR full-time equivalent. Download the full report here.
FIG 32: Source: Upskilling the HR Profession: Building Data Literacy at Scale (Source: Insight222)
MADHURA CHAKRABARTI AND TAMARA MCBRIDE - The analytics escape room game: On being fast followers
As Madhura Chakrabarti, PhD and Tamara McBride state: “Upskilling HR in data fluency was always an important part of our People Insights and Analytics roadmap at Syngenta.” Their article outlines the journey Syngenta has taken over the last three years, which has seen over 200 participants complete their ‘analysis paralysis’ simulation. Madhura and Tamara share their three key lessons in relation to building a data driven culture in HR: (1) Go beyond HR (“our non-HR colleagues did a wonderful job in spreading the word internally whereby demand started accelerating within and outside HR”), (2) Make it part of a bigger journey (see FIG 33), and (3) Shift to a virtual experience but keep the in-person offering alive when needed. For more from Madhura on how Syngenta is building a data driven culture in HR, I recommend listening to her discussion with me on the Digital HR Leaders podcast: How Syngenta Successfully Upskilled Their HR Function Into Data-Literacy.
FIG 33: Building data fluency in HR at Syngenta (Source: Madhura Chakrabarti and Tamara McBride)
JAAP VELDKAMP AND HELEEN GOET - How to determine your success KPIs in HR
Jaap Veldkamp and Heleen Goet describe the process followed at ABN Amro for establishing a link between each HR service and its impact on business outcomes. It outlines a ‘define your success’ workshop conducted between the people analytics team and HR at the bank to align each service to output and outcomes (see example in FIG 34). The article also highlights two benefits of this approach: (1) It leads to better collaboration between various teams in HR. (2) It magnifies the broader advisory role of people analytics.
FIG 34: Source: Jaap Veldkamp and Heleen Goet
RJ MILNOR - 10 Metrics to Unlock Value in Your Organization | ERIC LESSER AND CHARIS CHAMBERS - Key HR metrics for chief human resources officers
Two insightful articles highlighting progressive HR metrics. (1) RJ Milnor presents ten people metrics focused on help companies and HR leaders to unlock value (rather than cut costs). (2) Eric Lesser and Charis Chambers highlight five critical areas where CHROs need access to key HR metrics, data, and insights on demand to provide a snapshot of the current state of the work, workforce, and workplace (see FIG 35).
FIG 35: Five key areas of insights and metrics for CHROs (Source: Deloitte)
BRENT DYKES - Elephant In The Room: Data Storytelling Is More Than Just Data Visualization
Brent Dykes uses the Buddhist parable of the Elephant and the Blind Men to highlight the overemphasis typically placed on the visualisation element of data storytelling at the expense of the two other key components: facts (from data) and a storyline (narrative) – see FIG 36. Brent’s article breaks down each of these three elements, their relationship to each other, and provides guidance on how to shift from a ‘visualization-centric view’ to a ‘balanced view’. A must-read for anyone in the people analytics field, as well as HR professionals looking to hone their data storytelling skills.
FIG 36: What is data storytelling (Top), How to shift data storytelling from a visualization-centric to a balanced view (Bottom) (Source: Brent Dykes)
WORLD ECONOMIC FORUM - The Future of Jobs Report 2023
The fourth edition of the World Economic Forum’s Future of Jobs Report is an absolute treasure trove of data, insights, and visualisations based on data from 803 companies and 11.3m workers. The report explores how jobs and skills will evolve over the next five years, and how the Fourth Industrial Revolution will continue to shape the world of work. There are too many highlights to list them all here are some standout ones for me: (1) 23% of jobs are expected to change by 2027, with 69 million new jobs created and 83 million eliminated (see FIG 37), (2) 44% of individual worker skills will need to be updated by 2027, (3) The three key drivers of job change are the green transition (driving growth), technology (driving growth and decline), and the economic outlook (driving decline), and (4) Analytical thinking and creative thinking are regarded as the top two in-demand skills of 2023. Kudos to the authors of the report: Attilio Di Battista, Sam Grayling, Elselot Hasselaar, Till Alexander Leopold, Ricky LI, Mark Rayner and Saadia Zahidi.
FIG 37: 23% of today’s jobs will change by 2027 (Source: World Economic Forum)
AMY WEBB - How to Prepare for a GenAI Future You Can’t Predict
Futurist Amy Webb outlines a framework to help leaders anticipate how — and when — their workforce will need to change in order to leverage AI (see FIG 38). The framework should help those involved in workforce planning partner with leaders to develop scenarios for the future of the business. Moreover, Amy also provides a three-step guide for leaders to navigate the current uncertainty: (1) Temper expectations about what generative AI can and will do for your business. (2) Evaluate what data your company is generating and how it would today, and in the future, be used by generative AI. (3) When it comes to AI, leaders must shift their focus from the bottom line to top line.
FIG 38: The IDEA Framework (Source: Amy Webb)
DELOITTE - Managing workforce risk in an era of unpredictability and disruption
A hugely insightful collaboration between Deloitte and Harvard Professor Joe Fuller, which breaks down the increasing number of risks facing organisations in our disruptive world, the impact these have on the workforce, and what some leading companies are doing to help mitigate these risks. The article presents a framework for workforce risk (see FIG 39) as well as findings from a survey of 875 C-suite leaders, executives, and independent board members to explore how senior leaders view and address workforce risk. Findings include that most companies don’t have a definition nor expertise on workforce risk, those companies that do address workforce risk focus on short-term objectives rather than strategically planning for tomorrow’s challenges, and boards and C-suites provide limited oversight over workforce risk. The research does identify Pioneers – around one in ten leaders that view workforce risk factors more holistically and spread responsibility for effectively measuring and managing these risks throughout the organisation. (Authors: Joseph Fuller, Michael Griffiths, Reem J., Michael Stephan, Carey Oven, Keri Calagna, Robin Jones, Susan Cantrell, Zac Shaw, and George Fackler).
To perform at their best and meet evolving business needs, organizations should have a workforce planning process that helps establish the right people in the right place at the right time, for the right cost. To accomplish that, they should plan for succession, cultivate new talent pipelines, and deploy workers against emerging business priorities fluidly.
FIG 39: A framework for workforce risk (Source: Deloitte)
ROBERT MOTION AND COLE NAPPER - What’s Old is New: The Quest for Excellence in Workforce Planning
As Robert Motion and Cole Napper highlight in their treatise on the topic, workforce planning is both an art and a science that has its root in data and strategy. Their article offers six lessons on the topic: (1). Strategy is hard, but that doesn’t make WFP impossible. (2) Workforce planning can both help fight and respond to the Wall Street earnings cycle pressure. (3) Process is necessary, but don’t overdo it. (4) Analytics is and will continue to be king. (5) Winning the war for talent requires Talent Intelligence. (6) We can’t fall in love with our own ideas.
As WFP practitioners, influencing with data is THE key to gaining credibility with the business. It shows that WFP is not “touchy-freely HR”, but data-driven and quantified.
RICHARD ROSENOW - The SOAPI Framework - A New Lens for Modern Workforce Planning
Richard Rosenow is one of the best thinkers in our field and demonstrates it with his paper for One Model introducing his SOAPI framework for workforce planning. As he explains, it is a methodology that offers a structured method to break workforce planning into component parts. Each component represents a pillar, collectively forming the discipline of workforce planning. These are: (1) Strategy, (2) Operations (3) Analytics, (4) Planning, and (5) Intelligence. The paper breaks each of these down, and details what happens if one of these pillars is missing (see FIG 40).
FIG 40: Source - Richard Rosenow, One Model
MERCER – Building and sustaining a thriving Talent Marketplace
The Talent Marketplace is one of the hottest topics in the field of talent management, which makes this report by Mercer as timely as it is important. The report is informed by a survey, interviews with early adopters, and best practices for realising the vast potential of a talent marketplace. The report covers: (1) The business case, (2) How companies can use and launch talent marketplaces, (3) Outcomes and ROI realised by early adopters including Unilever, (4) Guidance on the change management required to achieve stakeholder alignment, and (5) Tips to get started and sustain momentum. Kudos to the authors: Ravin Jesuthasan, CFA, FRSA, Rupali Gupta, Chitralekha Singh, Brian Fisher, Marcus Downing, Paul Habgood, Nicole Peichl, Lewis Garrad, and Wan Yee Choo. For more on talent marketplace, I recommend listening to two 2023 episodes of the Digital HR Leaders podcast with Tanuj Kapilashrami (How Standard Chartered is Unlocking the Power of Skills in the Workplace) as well as Jeff Schwartz and Jeroen Wels (Navigating the Talent Marketplace of the Future).
Implementing a talent marketplace requires a radical rethink of work itself and involves far more than implementing a new technology.
FIG 41: Finding the sweet spot for success with talent marketplaces
BO COWGILL, JONATHAN M.V. DAVIS, B. PABLO MONTAGNES, PATRYK PERKOWSKI, AND BETTINA HAMMER - How to Design an Internal Talent Marketplace
Between them Bo Cowgill, Jonathan Davis, Pablo Montagnes, Patryk Perkowski, and Bettina Hammer have designed, implemented, and evaluated internal talent marketplaces (ITMs) for more than a decade in the private, non-profit, and public sectors, with partners across the globe. In their article for Harvard Business Review, they break down the four key benefits of ITMs: (1) Reduced replacement costs with examples from Teach for America and Schneider Electric, (2) Better placement within a large workforce with an example from the US Department of Defense, (3) More opportunities for generalists, and (4) Better aggregation of insights – with both the latter two documenting examples from Google. The authors explain how to build (e.g. technology, change, culture and data) and optimise (e.g. nudges, incentives and executive oversight) ITMs, connect their successful adoption to best practices and recommend ways to align employees’ preferences with the company’s needs.
Companies that fare the best with internal talent marketplaces are in industries with high worker-replacement costs and have employees who tend to be generalists.
GEORGE WESTERMAN AND ABBIE LUNDBERG - Why Companies Should Help Every Employee Chart a Career Path
Multiple studies find that lack of career advancement is the top reason employees provide for leaving their employers. Perhaps not surprisingly George Westerman and Abbie Lundberg found in their previous research a gap between the career development support many companies claim to provide and the lived experience of the typical worker. In their new article, the authors highlight two false narratives of career development that they find are prominent in many companies: “managers are responsible to develop their employees’ careers” and “we empower employees to own their career development.” While these ideals sound good, the reality is somewhat different. The authors then outline a career development process comprised of three elements designed to work for employees at all levels of the organisation and bring these to life with a number of case studies. The three elements are: (1) Make opportunities and pathways visible, (2) Provide opportunities to learn and practice, and (3) Deliver rich feedback and coaching.
Leaders must do much more to help employees see a future with the company and a path to advance toward that future.
McKINSEY - Performance through people: Transforming human capital into competitive advantage
When organisations invest in employees, the returns are not always quantifiable. Yet some firms are much more effective than others at turning human capital into a tangible competitive advantage, according to research by McKinsey. The study finds that the best companies – ‘People + Performance (P&P) Winners’ – are good at developing their workforce and delivering outstanding financial performance. The report details how P+P Winners possess a distinctive organisational signature (see FIG 42): they are more resilient, better at attracting, developing and retaining talent, have more effective leadership and more inclusive cultures. The report has a litany of insights across its 40 pages, including a blueprint on how companies can transform their organisational capital. (Authors: Anu Madgavkar, Bill Schaninger, Dana Maor, Olivia White, Sven Smit, Hamid H. Samandari, Jonathan Woetzel, Davis Carlin, and Kanmani Chockalingam.)
P+P Winners deliver a better workplace experience, and they are engines of upward mobility for the employees who pass through them
FIG 42: P&P Winners possess a distinctive organisational signature (Source: McKinsey Global Institute)
CONSTANCE NOONAN HADLEY, MARK MORTENSEN, AND AMY EDMONDSON - Make It Safe for Employees to Speak Up — Especially in Risky Times
In their article for Harvard Business Review, Connie Noonan Hadley, Mark Mortensen, and Amy Edmondson emphasise the importance of fostering a culture of psychological safety within organisations. They argue that during challenging and uncertain times, such as crises or periods of change, employees need an environment where they feel comfortable expressing their concerns, ideas, and dissenting opinions. The article provides practical steps for leaders to create psychological safety, such as encouraging open dialogue, actively listening, and addressing biases that may inhibit honest communication. Constance, Mark and Amy highlight the benefits of fostering a culture where employees feel safe to speak up, including improved decision-making, innovation, and employee well-being.
Psychological safety — the belief that one can speak up without risk of punishment or humiliation — is what enables employees to use their voices, and it’s more important than ever that leaders build it.
FIG 43: Why employees are reluctant to use their voices (Source: Constance Noonan Hadley, Mark Mortensen, and Amy Edmondson)
PER HUGANDER - Take a Skills-Based Approach to Culture Change
A persuasive article on how taking a skills-based approach to culture change can lead to lasting positive changes in behaviour and organisational performance. Drawing from a Harvard case study of SEB, a Nordic bank, Hugander Per highlights the successful application of the late, great Edgar Schein's Organizational Culture Model (see FIG 44). By emphasising the development of specific skills like active listening, coaching, and empathetic communication among its leaders, SEB achieved a cultural transformation characterised by collaboration and openness. This approach aligns culture change efforts with tangible behaviours, ensuring more effective and enduring transformations within organisations.
FIG 44: Edgar Schein’s Organizational Culture Model (Source: MIT Sloan Management Review)
TRACY THURKOW AND ADÉLAÏDE HUBERT - Organizations Don't Change Behavior, People Do
Tracy Thurkow and Adélaïde Hubert-Verley write about the role behavioural science can play in any successful transformation or change management initiative: “Behavioral science can help you create a change-embracing environment through nudges, feedback loops, and reinforcement.” Their article provides a timely reminder that organisations cannot change behaviour; only people can. To achieve successful behaviour change they argue, individuals need to be motivated and equipped with the necessary skills and resources. Organisations should focus on creating a culture that supports and encourages the desired behaviour change, providing clear guidance and incentives for individuals, and enabling them to practice and refine their new behaviours over time (see FIG 45).
Behavioral science helps to inspire and engage people in embracing change
FIG 45: Making the behaviour possible requires removing frictions and implementing enablers, signals, and reinforcers (Source: Bain & Company)
JONATHAN KNOWLES, B. TOM HUNSAKER, AND MELANIE HUGHES – The Role of Culture in Enabling Change
While culture is often described as “how we do things around here”, Jonathan Knowles, Dr. Tom Hunsaker, and Melanie Hughes posit in their article that “It’s more helpful to think of culture as the nervous system of an organization.” They highlight that one of the most important responsibilities of HR is to analyse the aspects of culture that are enabling or hindering performance. They proceed to explain that the first step is to investigate the type of change the team, business unit or organisation requires, and then document three approaches to making such changes: (1) Reinforce magnitude. (2) Reimagine activity. (3) Rethink direction (see also FIG 46)
FIG 46: Effective Cultures are Context Adaptive (Source: Knowles et al)
TOMAS CHAMORRO-PREMUZIC - How to Strengthen Your Curiosity Muscle
The opening keynote at the recent Workday Rising EMEA event in Barcelona by Dr Tomas Chamorro-Premuzic was based on his recently published book, I, Human: AI, Automation, and the Quest to Reclaim What Makes Us Unique, which I highly recommend. Tomas is a prolific writer, and in one of his recent articles, for Harvard Business Review, he writes about one of the most critical and sought after dimensions of talent: curiosity – a skill that is vital for leadership effectiveness, learning, and career development. In the article, Tomas shares five recommendations to develop our curiosity muscle: (1) Ditch all excuses. (2) Find the right angle. (3) Change your routine. (4) Experiment. (5) When bored, just switch. For more from Tomas, please tune in to his recent conversation with me on the Digital HR Leaders podcast: How AI Can Unlock Human Potential and Make Work More Meaningful.
While we may not know what tomorrow’s jobs will be, employees’ motivation and ability to upskill and reskill for those jobs will significantly increase if they are curious.
STACIA GARR AND PRIYANKA MEHROTRA - What’s Holding Back Manager Effectiveness, and How to Fix It
While manager effectiveness is a top priority for leaders and HR teams, research by Stacia Sherman Garr and Priyanka Mehrotra for RedThread Research finds that organisational support for managers is on the wane. Based on analysis of a survey of more than 700 employees across a wide range of industries, Stacia and Priyanka identified seven practices that are most important in driving manager effectiveness (see FIG 47) – four practices under the control of managers themselves, and three under the auspices of senior leaders and HR. The article also details three key actions organisations — particularly senior leaders and HR teams — can take to address gaps in support and develop more effective managers.
FIG 47: Seven factors driving manager effectiveness (Source: RedThread Research)
EMILY FIELD, BRYAN HANCOCK, AND BILL SCHANINGER - Don’t Eliminate Your Middle Managers | EMILY FIELD, BRYAN HANCOCK, STEPHANIE SMALLETS, AND BROOKE WEDDLE - Investing in middle managers pays off—literally
Two articles featuring insights from one of the best books of 2023: Power to the Middle: Why Managers Hold the Keys to the Future of Work authored by Bill Schaninger, Ph.D., Bryan Hancock. The first provides a clarion call to organisations that rather than viewing middle management as ripe for cutting in turbulent times they should instead reimagine the role of the middle manager, helping them to fully understand their value, and then train, coach, and inspire them to realise their potential as organisational linchpins. The second article, co-authored with Stephanie Smallets, Ph.D. and Brooke Weddle, provides data highlighting that organisations with more top-performing middle managers have much better financial outcomes (see FIG 48). The article also provides five steps to strengthening middle manager performance: (1) Optimising organisational ‘spans’, (2) Resetting manager roles, (3) Pivoting to capability building, (4) Drilling down into manager experience, and (5) Building in accountability mechanisms.
Human capital is at least as important as financial capital, and middle managers, who recruit and develop an organization’s employees, are the most important asset of all—essential to navigating rapid, complex change. They can make work more meaningful, interesting, and productive, and they’re crucial for true organizational transformation.
FIG 48: Organisations whose managers exhibit strong behaviours realise better bottom-line performance (Source: McKinsey)
McKINSEY - Diversity matters even more: The case for holistic impact
The fourth report in a McKinsey series stretching back to 2015, investigating the business case for diversity. The main takeaway is that the 2023 study finds that the business case is the strongest it has been yet with leadership diversity being convincingly associated with business performance, societal impact and employee experience (see FIG 49). The full 52 page report details case studies from the likes of IHG Hotels & Resorts, DHL Group, and Air New Zealand, as well as presenting five levers for change for moving from commitment to action. (Authors: Dame Vivian Hunt, Sundiatu Dixon-Fyle, Celia Huber, Maria del Mar Martinez, Sara Prince, and Ashley Thomas.)
FIG 49: The business case for diversity on executive teams and financial outperformance (Source: McKinsey)
DONALD SULL AND CHARLES SULL - The Toxic Culture Gap Shows Companies Are Failing Women
Donald Sull and Charlie Sull continue their fascinating work on toxic culture (see previous articles here) by this time focusing on research that finds women are 41% more likely to experience toxic workplace culture than men (see FIG 50). The article provides a number of cuts, powerful visualisations and analysis of the data including possible reasons why women are more likely to cite toxic culture, the elements that drive the toxic culture gender gap, and how the gap varies by industry and occupation.
FIG 50: Toxic Culture Is the Largest Culture Gap Between Women and Men (Source: Culture X)
JAMES ROOT, ANDREW SCHWEDEL, MIKE HASLETT, AND NICOLE BITLER - Better with Age: The Rising Importance of Older Workers
Compelling research from Bain & Company highlighting that in the G7 group of countries, older workers will exceed a quarter of the workforce by 2031 (see FIG 20). Despite this shift, the study also finds that only a small number of organisations have programs in place to integrate older workers into their talent systems. As well as providing compelling data and visualisations on this trend, the authors (James Root, Andrew Schwedel, Mike Haslett, and Nicole Bitler Kuehnle) provide guidance on three steps to empower older workers: (1) Retain and recruit older workers by understanding what motivates them at work. (2) Reskill them for your next 10 years of capability needs. (3) Respect their strengths and allow them to do what they do best.
Creating roles that benefit both older workers and the company is not just the right thing to do, it’s also a business imperative.
FIG 51: Share of workers age 55 and older in 2011, 2021 and 2031 (Source: Bain & Company)
LILY ZHENG - To Make Lasting Progress on DEI, Measure Outcomes
Organisations that are generating value through diversity, equity and inclusion (DEI) understand the importance of metrics and KPIs, but even some of these struggle to identify the right ones. The objective of Lily Zheng’s article in Harvard Business Review is to provide guidance to companies seeking to make tangible and lasting progress on DEI goals. Three actions are recommended related to tracking metrics. (1) Recognise the importance of outcome metrics beyond demographics. (2) For each category that you choose to measure, develop a theory of change to identify tailored proxy metrics. (3) To ensure that these findings result in lasting outcomes, create a plan in advance for using data to follow up and take action. Thanks to Frances Frei for highlighting Lily’s excellent article.
EDWARD CHANG, ERIKA KIRGIOS, JAMES ELFER, KATRYN WRIGHT, AND GUUSJE LINDEMANN - Why You Should Start A/B Testing Your DEI Initiatives
In their article, Edward Chang, Erika Kirgios, James Elfer, Katryn Wright, and Guusje Lindemann draw on their experience as academics and consultants who have studied the issue extensively, to present the benefits of targeted A/B testing for DEI initiatives. The authors cite company examples that they’ve been involved with, including one with Ericsson to improve internal mobility amongst female employees. They also offer practical guidance for companies interested in doing testing of their own.
The more DEI experiments you conduct, the more you’ll learn about what works and what doesn’t, and the faster you’ll make progress on equality at work.
Below are another selection of six articles I penned or co-penned in 2023. Part 1 contains seven other articles I authored in 2023.
FIG 52: 12 Opportunities for HR in 2024 (Source: David Green)
The “Fair Exchange of Value” is a key mantra for people analytics teams. If employees understand how their data will be used and see the benefit, it is far more likely that they will contribute data.
THE DIGITAL HR LEADERS PODCAST
In addition, we published 40 episodes of the Digital HR Leaders Podcast in 2023! A huge thank you to all the guest and sponsors, who in order of appearance were: Diane Gherson Dave Ulrich Ian Bailie Susan Cantrell Michael Griffiths Tanuj Kapilashrami Amy Gallo Jeroen Wels Jeff Schwartz Gloat Dr Tomas Chamorro-Premuzic Carmen Whitney Orr Phil Willburn Daniela Seabrook Caroline O'Reilly Workday Lauren Guthrie Christina Norris-Watts Doug Shagam Oliver Shaw Alexis Fink Don Miller Jesse Jacks Orgvue Aashish Sharma Dr. Ella F. Washington Ian White Aaron Falcione Prasad Setty Dawn Klinghoffer ChartHop Heather E. McGowan ?️??️⚧️ Karen Dillon Rob Cross Philip Arkcoll Ian OKeefe Elizabeth J. Altman Robin Jones Worklytics Lexy Martin Yves Van Durme Paul Rubenstein Ashish Pant Wendy Cunningham Peter Meyler Visier Inc. Nick Dalton Piyush Mehta Alicia Roach Chris Hare Nick Bloom Alex Browne eQ8 Jacob Morgan Madeline Laurano Sarah Reynolds Paulo Pisano Hebba Youssef and HiBob.
Thanks to all the authors and contributors featured here in Part 2, and also in Part 1 (available on January 14) as well as across the monthly collections from 2023 – see January, February, March, April, May, June, July, August, September, October, November and December - your passion, knowledge and expertise continues to inspire. Thanks also to my colleagues at Insight222, the guests and sponsors of the Digital HR Leaders Podcast in 2023 and the great many of you that share and engage with the content I share. It’s much appreciated. I wish you all well for a happy, healthy, and successful 2024.
David Green ?? is a globally respected author, speaker, conference chair, and executive consultant on people analytics, data-driven HR and the future of work. As Managing Partner and Executive Director at Insight222, he has overall responsibility for the delivery of the Insight222 People Analytics Program, which supports the advancement of people analytics in over 90 global organisations. Prior to co-founding Insight222, David accumulated over 20 years experience in the human resources and people analytics fields, including as Global Director of People Analytics Solutions at IBM. As such, David has extensive experience in helping organisations increase value, impact and focus from the wise and ethical use of people analytics. David also hosts the Digital HR Leaders Podcast and is an instructor for Insight222's myHRfuture Academy. His book, co-authored with Jonathan Ferrar, Excellence in People Analytics: How to use Workforce Data to Create Business Value was published in the summer of 2021.
I'll be speaking about people analytics, the future of work, and data driven HR at a number of upcoming events in 2024:
More events will be added as they are confirmed.
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