A recent McKinsey survey published in Mckinsey Quarterly\u00a0 ((Reineke, Spiller, Ungerman, 2007.\u00a0 \u201cThe Talent Factor in Purchasing.\u201d\u00a0 McKinsey Quarterly 2007 Number 1.\u00a0 Page 6)) highlighted a study on the purchasing organization and the correlation of core competencies to an organization\u2019s bottom line.\u00a0 While the purchasing organization has a clear and direct line to total costs and therefore profitability, this analysis can also be extrapolated to other centers of the operation.<\/p>\n
I thought this was a very interesting study (if you have access to McKinsey Quarterly) where they looked at the performance ratings of purchasing employees and then tied those ratings with annual savings from purchasing as well as the annual reduction in cost of goods sold.\u00a0 McKinsey then went on to look at the correlation between three leading factors in talent competencies for purchasing employees and the percentage performance improvement gained by the business by each point of improvement in the competency score.\u00a0 The effects were obvious and quite large.<\/p>\n
In today\u2019s world where we in HR struggle to communicate relevant information to executives (relevant defined by them) this is the type of analysis that we need to be doing.\u00a0 Unfortunately, unless you have fully built out competency models that are fully integrated with your performance management plans, you\u2019re out of luck.\u00a0 Not only do those programs need to be developed and integrated, but you need to have implemented them with the knowledge that you\u2019d want a certain type of metric at the end of the day.\u00a0 Strike two.\u00a0 Not only that, but it would be awfully helpful if you had a data warehouse and some cubes sitting around to drill through the analytics.\u00a0 Strike three.\u00a0 The reality of this type of metric is that while it\u2019s what we should be going for, HR doesn\u2019t usually have the tools to plan for these programs or provide the total analysis needed.\u00a0 Not everyone can hire a McKinsey or even a guy like me.<\/p>\n
What HR needs to do is prove the effect our programs have on the bottom line.\u00a0 Our talent programs are in their infancy, and we haven\u2019t built them with the understanding of everything we\u2019ll want out of them in ten year\u2019s time.\u00a0 Many of us think we\u2019ve turned the corner and talent is the next thing.\u00a0 Well, talent is the next thing, but if you think we\u2019ve reached our final destination, you\u2019re in for a wake-up call.\u00a0 The type of analysis that McKinsey did in this study is the type of data we should all have at our fingertips in the near future.\u00a0 Get ready for it\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"
A recent McKinsey survey published in Mckinsey Quarterly\u00a0 ((Reineke, Spiller, Ungerman, 2007.\u00a0 \u201cThe Talent Factor in Purchasing.\u201d\u00a0 McKinsey Quarterly 2007 Number 1.\u00a0 Page 6)) highlighted a study on the purchasing organization and the correlation of core competencies to an organization\u2019s…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[27,8,20],"tags":[],"class_list":["post-692","post","type-post","status-publish","format-standard","hentry","category-data-metrics","category-strategies","category-talent-management"],"_links":{"self":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=692"}],"version-history":[{"count":0,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/692\/revisions"}],"wp:attachment":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}