Business Analytics
Optimization and Analytical Talent Management
Host: The Accenture
High Performance Business Podcast Series. This podcast is brought to you by the
Accenture Institute for High Performance, which develops insights into critical
management issues and global economic trends.
Analytics
are increasingly being seen by companies as a means of gaining competitive advantage.
As a result, companies are better appreciating the importance of their
analytical talent, so-called “quant jocks” and “Excel ninjas” who help turn
analytical data into better decisions and more positive business results. Alas,
even when these talents are already at the company, sometimes they are not in
the right places to do the most good.
Hello,
I'm Paul Bushet. In this podcast, "Business
Analytics Optimization and Analytical Talent Management," we are
talking with Accenture's Research Fellow Dr. Elizabeth Craig about a recent Accenture Institute for
High Performance study on how analytics are deployed by high performance businesses
to achieve market leadership.
Dr.
Craig, thank you for joining me.
A:
Thank you.
Host: Tell us a
little about what went into this study.
A: To better understand the unique challenges of
managing analytical talent, the Accenture Institute for High Performance
surveyed 1,367 employees at companies with at least $50 million in annual
revenue. That included 799 analysts and 568 non-analysts. The survey was
Web-based and conducted within the United States. Respondents represented a
wide range of industries, including financial services, communications and high
tech, health and life sciences and retail. We also interviewed dozens of top
business executives and analytical leaders.
Host: And how common
are analytics in businesses’ decision-making processes?
A:
Not as common as you might think. Businesses say 40 percent of their major
decisions are based on what you call “gut instinct.” This lack of analytics is a
real problem because decisions based on data and analysis are known to produce
better outcomes. In fact, Accenture research shows 72 percent of companies say
they are working to become more analytical.
Now
what do they mean by that? In large part, they mean they are taking steps to
use data and analysis to make smarter decisions and achieve better results.
Host: How critical
are analytics to making the right business decisions? Is it something that can
be accurately measured?
A:
Yes, it can. Accenture research shows that during the last eight years,
companies that invested heavily in analytics capabilities outperformed the
S&P 500 by 64 percent. Companies with robust commitments to analytics also recover
more quickly from economic downturns. Looking at individual companies that
outperform the market, we found 65 percent of them have significant
decision-support and analytical capabilities in place, versus only 23 percent
of low performers.
Host: Now, are analytical capabilities about more
than systems and data? How important are the people who do the analytics?
A: Your success with analytics ultimately
depends upon how well you manage your analytical talent. These are the people
who use statistics; rigorous quantitative or qualitative analysis; and
information-modeling techniques to shape and make business decisions.
These
analysts are a special breed. Their backgrounds, skills, attitudes and
motivations are quite different from other employees’. You need to understand
what makes them tick to take full advantage of their skills and capabilities. Our
survey shows businesses still have a long way to go, particularly in terms of
keeping their top analysts around. The most important analyst subgroup—the
Ph.D.s, statisticians, mathematicians and other "analytical
professionals"—are in high demand and have plenty of other employment opportunities.
Nearly half of them, 47 percent, said it is likely or very likely they will be
looking for a new job sometime in the next year. Getting good analysts in your
company is no easy thing, and neither is keeping them around.
Host: So just how do
high performers manage their analytical talent successfully?
A:
Successful companies harness the full potential of their analysts by doing
three things well. First, they treat their analytical talent as a distinct and
valuable workforce segment. Second, they organize their analysts in a way that
maximizes their value to the business. And third, they strive to retain key
analytical talent through an array of initiatives, not only by rewarding them well
but also by keeping them highly engaged in the business. Engagement is a
critical part of the overall process, and analysts need to know their work makes
a meaningful contribution and is part of the drive to success.
Host: You
mentioned managing analysts as a distinct workforce segment. Is there a correct
way of doing this?
A:
It’s actually easier to talk about the wrong way. Analysts should not be
scattered across your organization without a clear and consistent approach to
managing them as a valuable workforce. Often you see companies without
consistent recruiting strategies, training and development plans, career paths
or performance management processes for their analytical talent. So getting the
most out of your analysts requires a strategic talent-management approach that
stretches across the entire enterprise. It also requires that you organize your
analytical workforce properly.
Host: How should a
company organize its analysts?
A:
The answer there is depending on your company’s analytical aspirations. But to
be effective, you must ensure three things: One, that your best analysts are
working on the most important analytical projects. Two, that they bring an
enterprise perspective to bear on their work. And three, that they have ample
opportunities for development.
So
when those three principles are adhered to, you will extract the most value
from analysts and simultaneously keep them engaged in their work and eager to
stay.
Host: Is there a single model for doing this in
place today?
A:
No. Different kinds of businesses have different ways of organizing their analytical
talent. We’ve identified five specific models. Let me tell you what they are:
There's
the Centralized model, where analysts reside in one central group; the Center
of Excellence model, where analysts are spread out across the enterprise but managed
from a central entity; the Consulting model, where centralized analysts act as
internal consultants to specific business units; the Functional model, where
analysts are located in specific enterprise functions; and the Decentralized
model, where analysts are scattered across the organization.
Host: Which model
works best?
A:
The answer really depends on things such as the maturity of your company's
analytical capabilities, or its level of demand for analytical skills. In
general, however, we find companies are best served by greater centralization
and coordination of their analytical talent.
Our
study found that of analysts employed under each of the five models I
mentioned, those working in Centralized units are most engaged by their work,
and those in Centers of Excellence are the most likely to stay at their
company. The ability to engage and retain analytical talent, as I mentioned
before, is a key criteria for achieving analytical excellence.
Host: What else
must a company do to engage and retain its prize analysts?
A: Your company must do four things well. First, make sure your analysts are always
armed with critical information about the business; second, set clear roles and
expectations; third, feed your analysts’ love of new techniques, tools and
technologies; and finally give analysts the management support they need to
feel valued—especially an effective working relationship with a trusted
supervisor.
Host: What are
some examples you can share of companies taking proactive approaches in
deploying their analytical talent?
A:
GE's financial services unit, GE Money, is routinely rotating analysts from its
analytical centers in Shanghai and Bangalore to other parts of the business.
This approach helps the analysts learn
more about local operations and the best ways of deploying analytics in the
field. This model is also a good retention strategy, because it gives analysts
a sense they are making meaningful contributions to the business.
E&J
Gallo Winery rotates its analytical professionals among different business
units and functional departments for 18- to 24-month tours of duty. While they're
analyzing grape supply or developing new customer segmentation models or
performing supplier analyses, these quant jocks become savvy at finding ways of
employing analytics for the overall good of the business.
Host: Thanks for
talking to us, Dr. Craig. In this podcast, we looked at the critical need for
employing analytics in making good decisions and for effectively managing
analytical talent. We learned about the different models companies use in organizing
their analytical talent. And we discussed how these models are effective in
helping engage and retain top analysts.
This concludes our High Performance Business podcast. We thank you for
listening, and hope you found these insights worthwhile and stimulating. For
more information about Accenture’s experience and research helping
organizations achieve high performance, visit us at www.accenture.com/researchpodcast.
Web Page Synopsis
Page Title: Business
Analytics Optimization and Analytical Talent Management
Short
Deck: In
this podcast, Accenture Research Fellow Dr. Elizabeth Craig discusses analytics and analytical talent
management at high performance companies. Drawing on a recent survey conducted
by Accenture's Institute for High Performance, Dr. Craig describes different
models your company can use to organize analytical talent and how they help to
engage and retain top analysts.
SEO
Title
Tag: Business Analytics
Optimization and Analytical Talent Management
Description: Hear
Accenture’s Dr. Elizabeth Craig explain how companies employ business analytics
and manage analytical talent to drive high performance.
Keywords: business
analytics, talent management
Google results:
Business analytics –
60,500
Talent management –
301,000 (strong results for HR and business talent)
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