Learn the critical first action HR managers should take when implementing a new human capital management platform and responding to CEO requests for people analytics data. Discover best practices for aligning HR initiatives with business strategy and outcomes.
Table of Contents
Question
After the recent implementation of a new human capital management platform, a CEO requests people analytics data. Which action should the HR manager take first?
A. Direct the HR analyst to extract and summarize relevant data.
B. Develop a suite of analytical reports that focus on employee performance.
C. Train interested stakeholders on self-service options and decentralized capabilities.
D. Ask business partners to identify key metrics that link business strategy to outcomes.
Answer
The best first action the HR manager should take is: D. Ask business partners to identify key metrics that link business strategy to outcomes.
Explanation
Before diving into extracting and analyzing data from the new human capital management (HCM) platform, it’s essential that the HR manager first engages with key business stakeholders to understand what metrics and outcomes are most important to the organization’s strategy. People analytics initiatives should always start by defining clear business objectives.
While the HR analyst will certainly need to extract and summarize relevant data (choice A), and various analytical reports may prove useful (choice B), those are secondary steps that should come after the strategic alignment piece. It’s critical to first identify what questions the organization is trying to answer and what goals it’s working towards. Only then can HR determine the right data and analyses to support those objectives.
Training stakeholders on the HCM platform’s self-service and decentralized capabilities (choice C) is beneficial for driving adoption and empowering managers. However, it’s not the most urgent priority when the CEO is requesting analytics. Enabling self-service should happen in parallel with the analytics work, not as a prerequisite.
In summary, effective people analytics requires close partnership between HR and the business. The HR manager’s first move should be collaborating with business partners to define needs and success metrics. This ensures the analytics work will be impactful and aligned with overarching organizational goals. Only after that strategic foundation is in place should HR progress to data extraction, modeling, and reporting.
By asking the business partners to identify key metrics that link business strategy to outcomes, the HR manager understands the most important information that is needed from the analytics data. The HR manager can then make an informed decision about the best way to extract, analyze, and communicate that data. Summarizing data, developing analytical reports, and training stakeholders are important actions to take after first identifying the key metrics that should be measured.
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