The Data Driven Leader

ESSENTIAL READING

This section will provide you with fundamental insights to guide your HR analytics efforts:

1. The Four Stages of Analytics—a helpful summary of the types of analytics your initiatives will encompass
2. HR Analytics Review—key concepts, metrics, and analytics use case examples in core areas of human capital management (Leadership Development and Succession Management, Learning Management, Performance Management, Talent Acquisition, and Total Rewards)

THE FOUR STAGES OF ANALYTICS

As summarized in the Chapter 3 Commentary, data analytics is commonly categorized as descriptive, diagnostic, predictive, or prescriptive. Below are additional explanations and insights on each of these four stages.

1. Descriptive Analytics

Explanation: Descriptive analytics is a process of discovery that answers the question “What happened?” by means of reports and dashboards. Although this is the first and least technologically sophisticated of the four levels, it is still very powerful. As we saw in Chapter 4, descriptive findings led Chloe toward deeper discoveries. But you’ll likely still need to answer why the data says what it does and which variables are most influential, requiring more advanced analytics that employ statistical algorithms.

Example: Chloe’s chart in Chapter 4 titled “Top Producers Have Unattainable Quotas” is a great example of the compelling insights descriptive analytics can surface. Chloe developed this report by persistent, intelligent exploration. She started ...