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Center for Effective Organizations

HR Metrics and Analytics:


Driving Strategic Organizational Change

March 21-23, 2007

Center for Effective Organizations


Since its founding in 1979, the Center for Effective Organizations (CEO), at USCs Marshall School of Business, has been at the forefront of research on a broad range of organizational effectiveness issues. CEOs mission is to bring together faculty and executives to jointly research critical organizational issues that involve the design and management of complex organizations. Its leading-edge research in the areas of organizational effectiveness and design has earned it an international reputation for research that inuences management practice and makes important contributions to academic research and theory. CEO works with companies to research and develop new knowledge on organizational effectiveness issues such as organizational development, organizational learning and change, leadership development, strategic human capital management, reward systems, performance management, human capital management, employee involvement, team designs and virtual work, corporate governance, and organization design. By actively involving companies as research partners, CEOs research yields practical, theory-based knowledge that enables companies to design and implement changes that improve their effectiveness and competitiveness. CEOs research is the foundation for its educational and certicate programs. http://ceo-marshall.usc.edu

Certificate in Human Capital and Effective Organizations


The Center for Effective Organizations (CEO) now offers a certicate program in Human Capital and Effective Organizations. The program is aimed at mid-level, high-potential HR executives, and includes an integrated curriculum that focuses on vital competencies for those aspiring to careers in strategic HR. CEO seminars such as Leveraging Leadership, Strategic Organization Design, Executing Strategy and Complex Change, Strategy Analysis, and HR Metrics and Analytics count toward credit for the certicate. CEO seminar faculty are recognized global thought leaders in the areas of organizational effectiveness and design, HR strategic excellence, leadership, talent management, and measurement and analytics. Their seminars draw on extensive eld research and the practical application of these research ndings in many of todays leading companies. CEOs certicate program offers participants a useful perspective and the expertise and knowledge gained from over 25 years of CEOs research. Corporate best practices and real-life experiences from company presenters are incorporated into the program. The HR Metrics and Analytics seminar fullls one of the requirements for CEOs Certicate in Human Capital and Effective Organizations. For more information about the certicate, please call CEO at (213) 740-9814 or visit http://ceo-marshall.usc.edu/hceo

HR Metrics and Analytics:


Driving Strategic Organizational Change
This three-day event provides opportunities for HR professionals to learn how to implement and enhance HR measurement in their organizations. The seminar approaches HR measurement as a catalyst for strategic change. The principles of this approach will be developed through interactive sessions with CEO faculty and through best practices from leading companies. Participants will have opportunities to engage with applications, diagnostic tools, and specic logic frameworks applied to actual cases.

Our approach to Human Resource Metrics and Analytics reects principles such as:

The strategic potential of human capital for sustained competitive success HR measures must drive signicant and strategically aligned change HR measurement must support decisions through an integrated combination of logic, analytics, measures and process (LAMP) HR organizations achieve enhanced business and strategic relevance through measuring the connection between human resource programs, decisions and strategic outcomes Sophisticated scorecards and databases are useful but not enough Integration makes HR measurement a true tool for organization eectiveness

This program is unique because it not only shows participants how to develop and enhance their HR measurement technology, but how to go further, providing the skills to integrate strategic logic, change processes, and savvy analysis.

Workshop Format

Benets of the Program

The workshop will be highly interactive and designed for participant learning. Sessions will combine presentations by CEO research scientists and company experts who will present principles and tools for better HR measurement, as well as company best practices that illustrate the use of these principles and tools. Participants will have opportunities to apply the tools to their own issues in interactive sessions with faculty and company representatives.
Who Should Attend

Participants will gain the skills needed to Map their HR measures against the HC BRidge human capital decision framework Identify specic measurement improvement opportunities Diagnose nancial and operational measures to discover where human capital can have the greatest eect Apply practical analytic methods to understand the messages in their data Develop an analytics competency prole for HR and business leaders Integrate measures within a process that uses HR metrics to create action
Featured Company Examples

HR leaders who are developing or enhancing human resource measurement and data systems, including scorecards, dashboards, HRIS and HR data analysis tools. This seminar is also appropriate for HR leaders who oversee HR research and data analysis teams, and those who anticipate implementing or developing HR measurement systems in the future.

Frito-Lay Limited Brands Personnel Decisions International

Session Descriptions

day 1
Wednesday, March 21, 2007

Introduction: The Future of HR

The HR function can be transformed from a primarily administrative function to a key player in the formulation and execution of business strategy. Developing business-oriented metrics and analysis is an important step. When combined with new structures, management competencies, and higher levels of business knowledge, measures and analytics can play a key role in creating this new HR function.
EDWARD E. LAWLER III is Distinguished Professor of Business and Director of the Center for Eective Organizations in the Marshall School of Business at the University of Southern California. He joined USC in 1978 and during 1979, founded and became director of the Universitys Center for Eective Organizations. He has consulted with over one hundred organizations on employee involvement, organizational change, and compensation and has been honored as a top contributor to the elds of organizational development, organizational behavior, corporate governance, and human resource management. The author of over 300 articles and 38 books, his articles have appeared in leading academic journals as well as Fortune, Harvard Business Review and leading newspapers including USA Today and the Financial Times. His most recent books include Rewarding Excellence (2000), Corporate Boards: New Strategies for Adding Value at the Top (2001), Organizing for High Performance (2001), Treat People Right (2003), Human Resources Business Process Outsourcing (2004), Achieving Strategic Excellence: An Assessment of Human Resource Organizations (2006), Built to Change (2006), America at Work (2006), and The New American Workplace (2006).

day 1
Wednesday, March 21, 2007 (continued)

Talentship: The New Decision Science for Human Capital

Talentship is the new decision science for talent and how it is organized. The powerful measures of the nance, marketing and operations decision sciences evolved in predictable ways. The lessons from these other disciplines show how HR measurement must evolve to achieve signicant inuence. The key is that HR measures must enhance decisions about the organizations human capital. Those decisions occur not only within the HR function, but signicantly beyond the HR function. Talentship decision science is based on over 10 years of research, and is the topic of the forthcoming book, Beyond HR: The New Science of Human Capital, from Harvard Business School Press. Its authors, John Boudreau and Pete Ramstad, have been featured in the Harvard Business Review, Human Resource Management Journal, and Human Resource Planning Journal.
JOHN BOUDREAU

is Professor of Management and Organization and Research Director at the Center for Eective Organizations in the Marshall School of Business, University of Southern California. He is recognized worldwide for breakthrough research on the bridge between superior human capital, talent and sustainable competitive advantage. His research won the Academy of Managements Organizational Behavior New Concept and Scholarly Contribution award. Dr. Boudreau consults with companies worldwide that seek to maximize their employees eectiveness by quantifying the strategic bottom-line impact of superior people and human capital strategies, including Bristol-Myers Squibb, Capital One, Citigroup, Corning, Dell, GE, Hartford Insurance Group, Mattel, Microsoft, Shell

Session Descriptions

International, the United States Navy, and Williams-Sonoma. He is an invited instructor in executive programs at IMD, Wharton, General Electric, UCLA, and Cornell University. Dr. Boudreau was a Cornell University professor for over 20 years, and Director of Cornells Center for Advanced Human Resource Studies (CAHRS). A Fellow of the National Academy of Human Resources, he has published more than 50 books and articles that have been translated into Chinese, Czech, and Spanish. His work has been featured in Harvard Business Review, The Wall Street Journal, Fortune, Business Week, and Human Resources Management.

COMPANY CASE: HOW LIMITED BRANDS DRIVES STRATEGY THROUGH HR MEASUREMENT

Using HC BRidge to Measure How HR Investments Connect to Organizational Success

Toyin Ogun will describe how Limited Brands combined the sciences of engineering, nance, operations, and human resource management to develop models that help optimize human capital investments. Limited Brands approach logically connects strategy with key elements of store performance. It identies the vital pivotal roles that aect the core processes, and produces a more optimal management structure and HR system for stores, resulting in measurable economic and strategic benets. The example will help participants visualize how they can enhance their decision models for human capital, and take advantage of measures from areas such as nance, operations, and marketing. is Senior Vice President of Human Resources for Limited Brands in Columbus, Ohio. In this capacity he is responsible for talent and performance management, which includes talent acquisition, learning and development, performance management and talent strategy. Prior to joining Limited Brands, he served in a variety of HR executive positions at Borden Foods, PepsiCo, and Tropicana. Toyin has a BS from North Dakota State University, MS from Troy State University and a DBA from Nova Southeastern University. He is active in The Society for Human Resource Management (SHRM), American Society for Training and Development (ASTD), and The Human Resource Planning Society (HRPS).
TOY IN OGUN

This session will describe a deep and logical framework for mapping the connections between investments and the HR policies and practices they produce, the eects of those policies and practices on employee talent pools, and the impact of talent pools on specic business processes, resources and organizational strategic success. The framework will be used to map todays HR measurement technologies, and to provide a diagnostic tool for identifying areas where better measures or new measures can provide the most important information about the organizations talent-focused strategic success. Examples from several organizations will be used to illustrate the framework in action.
JOHN BOUDREAU

(See bio on previous page)

day 2
Thursday, March 22, 2007

Strategic Application of Metrics and Analytics

Alec Levenson will show how HR can improve its measurement eorts from both high-level strategic and process-oriented perspectives that move the needle from eciency to eectiveness and impact. The session will feature examples from several organizations that have used action research tools to improve data-based decision making for HR generalists, leadership development specialists, and human capital strategic planning and resource allocation. Participants will have an opportunity to work with a framework that increases the focus of metrics and analytics initiatives on measurable outcomes that can be linked to the bottom line. is Research Scientist at the Center for Eective Organizations in the Marshall School of Business, University of Southern California. His research focuses on the economics of human resources and organization design; HR and human capital metrics, analytics, and return on investment; and strategy. Topics include estimating the strategic and nancial impact of HR and human capital; building analytic capabilities within the HR function; measuring the economic value of human capital gained on the job; aligning competency systems with strategic and bottom-line objectives; measuring and maximizing the economic value of leadership development, including executive coaching; measuring the return on investment to globally distributed software development; how companies manage for success in times of adversity; and contingent work. He works with companies to improve the quality of human capital analytics and increase the ecacy of HR programs and practices, including Booz Allen & Hamilton, Capital One, Cisco Systems, Frito-Lay, Motorola, Nestle,
ALEC LEVENSON

Session Descriptions

Pzer, PricewaterhouseCoopers, Royal Bank of Canada, and Sun Microsystems. His research has been published in numerous academic journals, and has been featured in media outlets such as The Wall Street Journal, CNN, The Economist, National Public Radio, and Fox News.
COMPANY CASE: FRITO-LAY

Driving Organizational Change: Connecting HR Metrics and Analytics with Action

Tracy Faber will describe how Frito-Lay has been using metrics and analytics to improve the quality of human capital measurement for critical issues such as job design, compensation, productivity, and leadership development. Specic examples will be featured from collaborative research projects with CEO that have been used to enhance data-based decision making in HR and the line organization.
TRACY FABER is North Division Sales HR VP for Frito-Lay North America. She joined Frito-Lay in 1998 and has had progressive responsibility with the organization, including eld operations and sales HR generalist positions, as well as specialist roles in the Labor function, including Labor VP for Frito-Lay North America.

Starting with the assumption that data and analytics are insucient to change behavior, Sue Mohrman will discuss methods for embedding HR measures and analysis in an eective organization change and knowledge-management process. She will provide a guiding framework and tools for bridging the gap between data and information and the behavior of the rm. She will draw on case examples from health care, professional services, and technology rms. is Senior Research Scientist at the Center for Eective Organizations in the Marshall School of Business, University of Southern California. Her research and consulting pertain to innovative forms of organization, team-based organizations, organizational change and learning with emphasis on the implementation of new designs, knowledge creation, and organizational design processes. Her books include Achieving Strategic Excellence: An Assessment of Human Resource Organizations (with Edward Lawler and John Boudreau). She has served on the Board and been a knowledge partner to the Human Resource Planning Society.
SUSAN MOHRMAN

Prior to joining Frito-Lay, Tracy worked at Eaton Corporation and Nabisco. Tracy has her Bachelors in Social Science from Michigan State University and her Masters in Labor and Industrial Relations from the University of Minnesota.

day 3
Friday, March 23, 2007

Building a Data Warehouse Aligned with HC BRidge

Many dierent HR and HC metrics have been suggested and tried by a variety of dierent organizations. However, there is no silver bullet when it comes to metrics and analytics. Rather, a more systematic and structured approach is required to build the databases that support a wide range of talent and HR-related decisions. We nd the HC BRidge decision model a useful place to organize such a strategy. In this presentation, Pete Ramstad will present a data warehouse approach to the key elements of information that organizations should consider as the platform for their metrics and analytics database. The approach is based on his joint work with John Boudreau and the HC BRidge decision model. He will highlight each of the major groups and the typical sources of information to populate the data structures. One of the four categories is Human Capital metrics. R. J. Heckman from Personnel Decisions International will outline an approach to measuring individuals that will dierentiate the what and how of performance, and also show the distinction between performance, potential, readiness, and t. The session will also include examples of analytics that have been created using such a data warehouse approach, and suggested steps for eective implementation to address many of the most important decisions that face HR and line leaders.

Session Descriptions

is the former Executive Vice President of Strategy and Finance for Personnel Decisions International (PDI). Over his sixteen-year career at PDI, he held a variety of leadership positions including Chief Financial Ocer and head of the Organizational Consulting Group. As the founder of PDIs strategy practice, he consulted with many organizations worldwide on strategy, organizational, and HR-related issues. He received his undergraduate degree in mathematics and accounting from the University of Minnesota, where he also attended graduate school. He was a Certied Public Accountant (CPA) and Certied Management Accountant. Prior to joining PDI, he was a consulting partner with a major public accounting rm. He has been a faculty participant in executive education sessions and research center presentations with the University of Minnesota, University of Southern California, Cornell University and Texas A&M University. He has been a frequent speaker at academic, professional and corporate conferences and programs where he is acknowledged for his unique ability to integrate nancial, strategic and organizational theory into unique, actionable insights. He is currently Vice President of Business and Strategic Development with The Toro Company.
PETER M. RAMSTAD R. J. HECKMAN is Vice President and General Manager of Personnel Decisions Internationals Leadership Assessment Products business. In this role, Dr. Heckman designs and implements enterprise-wide, performance and talent management solutions for clients. R. J. joined PDI in 1999 as a global client manager and practice area leader in PDIs New York City oce. He then assumed the role of general manager of PDI-Boston where he held prot and loss responsibility for the New England market. Throughout his tenure, R. J. has directed teams that design and implement integrated talent management solutions that contain external selection, performance management, leadership development, and succession planning

components. His work has spanned many countries, and virtually all industries with an emphasis in manufacturing, nancial services, technology, and retail. Prior to joining PDI, R. J. acquired a diverse range of internal consulting experiences in the United States and Japan. He is in demand as a guest lecturer on a range of talent management topics and has spoken at the Harvard Business School, INSEAD, the University of Minnesota, and New York University.
Building and Leveraging HRs Analytic Skills How Far Have We Come, and How Much Further Do We Have To Go?

In order for analytics to fulll the promise of helping HR to be more strategic, analytic skills need to be developed in HR professionals. Alec Levenson and Tracy Faber will address the ways that organizations are building and applying analytic skills in HRboth in dedicated analytics groups and more broadly throughout the function. They will use examples from Frito-Lay and other organizations. This session will also feature an indepth discussion with conference participants regarding progress in building analytic skills and improving data-based decision making in their organizations, the challenges that remain, and best practices for overcoming those challenges to maximize the strategic impact of HR analytics.
ALEC LEVENSON TRACY FABER

(See bio on page 6)

(See bio on page 7)

Agenda

WEDNESDAY, MARCH 21, 2007

THURSDAY, MARCH 22, 2007

8:00 am 8:30 9:00

Continental Breakfast Introduction: The Future of HR Ed Lawler, Center for Eective Organizations Talentship: The New Decision Science for Human Capital John Boudreau, Center for Eective Organizations Break: 10:00-10:15

8:00 am 8:30

Continental Breakfast Strategic Application of Metrics and Analytics Alec Levenson, Center for Eective Organizations Break: 10:00-10:15

10:15

Company Case: Frito-Lay North America Tracy Faber, Frito-Lay North America

12:00-1:30 Lunch 1:30-5:00 Driving Organizational Change: Connecting HR Metrics and Analytics with Action Sue Mohrman, Center for Eective Organizations Break: 3:00-3:15
FRIDAY, MARCH 23, 2007

12:00-1:30 Lunch 1:30 Using HC BRidge to Measure How HR Investments Connect to Organizational Success John Boudreau, Center for Eective Organizations Break: 3:00-3:15 3:15 5:30 6:00 Company Case: Limited Brands Toyin Ogun, Limited Brands Cocktails Dinner

8:00 am 8:30

Continental Breakfast Building a Data Warehouse Aligned with HC BRidge Peter Ramstad, Toro Corporation R. J. Heckman, Personnel Decisions International Break: 10:00-10:15

12:00-1:30 Lunch 1:30 Building and Leveraging HRs Analytic Skills How Far Have We Come, and How Much Further Do We Have to Go? Alec Levenson, Center for Eective Organizations Tracy Faber, Frito-Lay North America Conclusion and Wrap-up

2:30

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Registration Information

Registrations will be accepted in order of receipt. Space is limited. To register, complete and return the enclosed registration form. You may fax your registration in advance and send the original with your check.
CANCELLATIONS: Cancellations on or before February 28, 2007 will result in a cancellation fee of $200; after that time 50% of the fee will be refunded.

Hotel Reservations

Hotel reservation deadline: February 26, 2007 Hotel reservations should be made by the participant. A block of rooms has been reserved at the Manhattan Beach Marriott at a special rate of $175/single per night. In order to receive this special rate, you must mention CEO/USC. These rooms are available on a rst-come, rst-served basis until all rooms in the block have been reserved or until the reservation deadline of February 26, 2007. Room accommodations booked after the deadline or outside of the block are subject to hotel availability and prevailing rates. Reservations can be made by calling hotel reservations at (800) 228-9290 or (310) 546-7511. The Manhattan Beach Marriott is located near the beautiful Pacic Coastline and features its own golf course. The hotel is approximately 10 minutes from Los Angeles International Airport (LAX).
Airport Shuttle/Taxi

Registration Fee

$2,350 per person / CEO Sponsor Companies $3,050 per person / Non-Sponsor Companies (See page 12 for sponsor list) Payment in advance is required. Checks should be made payable to the Center for Eective Organizations. We accept Visa, MasterCard, and Discover Card (sorry, the University does not allow us to accept American Express). Please complete and sign the credit card payment section on the registration form.
Location/Schedule

We will meet at the Manhattan Beach Marriott, 1400 Parkview Avenue, Manhattan Beach, CA 90266. Phone: (310) 546-7511; Fax: (310) 546-7520. Continental breakfast and lunch will be served each day. There is a cocktail reception and dinner on Wednesday, March 21.

Cab fare from Los Angeles International Airport (LAX) to the hotel is approximately $15 one way. Shuttle cost is approximately $13 one way. Upon arriving at LAX, claim your luggage and step outside to the orange Shared Ride Vans sign at the shuttle stop. The van service representatives at the stop will assist you. Although advance shuttle reservations are not necessary, they are available. For Prime Time Shuttle information and reservations, call (800) 733-8267 or visit their website at www.primetimeshuttle.com. For SuperShuttle information and reservations, call (800) 258-3826 or visit their website at www. supershuttle.com.

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Registration Information
Parking

Sponsors
Institutional Sponsor

Parking is available at the Manhattan Beach Marriott at a special rate of $13 per day for overnight guests and $9 per day for day guests.
Attire

Heidrick & Struggles


Corporate Sponsors

Dress for the conference is casual and comfortable.


For More Information

Contact Arienne McCracken at (213) 740-9814 or by email at amccracken@marshall.usc.edu

Agilent Technologies Allergan American Express Corporation Amgen, Inc. Bayer Corporation BEA Systems Boeing Company British American Tobacco p.l.c Capital One Caremark Rx Chevron Cisco Systems, Inc. ConocoPhillips DaVita Deloitte & Touche LLP DuPont Company Exelon Corporation Fidelity Investments (The) Gap, Inc. General Mills GMAC-RFC Goldman Sachs and Company Harris Corporation The Hartford Hewlett-Packard Company Intel Corporation Jack in the Box Kraft Foods Limited Brands L. L. Bean Lord Corporation Mattel, Inc. Mayo Clinic Arizona Mercer, Inc.

Merck & Co., Inc. MGM Mirage Resorts Microsoft Corporation Northrop Grumman Corporation Payless ShoeSource PepsiCo Pzer, Inc. Philip Morris USA PricewaterhouseCoopers LLP Royal Bank of Canada Siemens Corporation Solectron Corporation Starbucks Corporation Sun Microsystems, Inc. SYSCO Corporation Towers Perrin TriWest Healthcare Alliance UBS A.G. Underwriters Laboratories Unilever NV Rotterdam United Parcel Service (UPS) (The) Walt Disney Company Washington Mutual, Inc.
Research Sponsors

Personnel Decisions International WorldatWork


Subscribers

Department of Work and Pensions United States Navy


Contributors

Schuster, Zingheim, & Associates, Inc. Judith Blumenthal Sponsor list subject to change.

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Registration Form

HR Metrics and Analytics:


March 21-23, 2007
Registration Fee

Driving Strategic Organizational Change

$2,350 per person / Sponsor Company (See page 12 for sponsor list.) $3,050 per person / Non-Sponsor Company
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