This is the final installment in a four-part series on workforce management maturity. With advancements in cloud-based technology, mobile applications and simplified enterprise applications, organizations are able to transform their workforce from a cost of doing business into a competitive advantage. Part 4 discusses the final phase of workforce management maturity – innovate.
In Jim Collins’ bestselling book Good to Great, those few companies that distanced themselves from the competition all had common traits among them. The concepts of “Level 5 leadership”, having the right workforce “on the bus”, and transformations that were the result of focus and continuous improvement over sustained periods of time eventually led to achieving greatness.
There are many organizations that have evolved through the first three phases of the workforce management maturity curve, getting the value of their workforce to one of a Flexible asset, and perception of their workforce into an “Agile Workforce.” However, the best-in-class organizations that have moved into the Innovate phase now view their workforce as a vital workforce and a competitive advantage. For them, their employees are their most critical asset who, when provided with the right tools, training and support enable these organizations to achieve great results that their customers value and their peers and competitors envy.
Big Data and the Workforce
Throughout this series, the application of technology and process change has enabled organizations in each phase of workforce management maturity. Most organizations in the Innovate phase are embracing Big Data initiatives to identify triggers that influence growth, profitability, brand reputation, and operational excellence, as well as organizational transparency and accountability. In the Innovate phase, organizations incorporate labor metrics into their big data strategies, to transform their workforce into a network of individuals all working together to achieve a desired result. (Consider Southwest Airlines, where every interaction with their workforce is one that is focused on delivering a high level of customer service).
The correlation of labor data with operational measurements of inputs & outcomes can yield powerful insight into the impact of your workforce on business growth, brand perception and ultimately shareholder value. However, basic data mining does not equate to a big data strategy that will enable business innovation and continuous improvement. Lack of understanding of how to use analytics to improve the business is the biggest obstacle in achieving success with big data. Organizations must transition the analysis from an IT function to a business operations function – combining measurements, analytics and business intelligence tools with visibility and controls for business leaders to understand and act on.
Workforce Analytics drives Innovation
When workforce analytics is combined successfully with operational data, actionable information will lead to operational comparisons and adjustments. Initial tracking of labor metrics like absenteeism, turnover and overtime can evolve into industry-specific trends and analysis. Retail stores can see the impact in increased operating margins, profit per employee and a stronger brand reputation. Healthcare providers can correlate treatment procedures, provider education/training, and technology with patient diagnosis and outcomes. Manufacturing firms can achieve operational excellence through lean labor principles.
When your workforce evolves from a cost of doing business into a competitive advantage, your organization can make that leap from good to great!