When a company decides to transform its organization to become more effective and more efficient the depth analysis of its Big Data should be the first step of the journey.

Satya Radjasa, Country Business Leaderat Mercer

Many companies in a growth market such Indonesia struggle to attract and retain the best talents, they often face a high turnover rate and sometimes a performance decrease due to the organization itself. Even though business outlook for the country is still considerably favorable for the coming years, organizations need to anticipate and provide proactive measurement which allows them to be as competitive or even more against their competitors. Pressures on cost, growth plans, employee turnovers, right sizing will continuously become top leaders agenda now and even more in the future as competition tightens. To overcome these challenges, Human Resources (HR) have to adapt the organization and analyze their huge volume of data: multi-year payroll data, financial performance, turnover, organization & business data, people development.

First, HR need to determine the metrics to measure current and future workforce issues, trends, and needs(financial, workforce structure & cost, functional outsourcing, span of control…). Then, the second step of the analysis consists on benchmarking their own data with the market’s ones. But this comparison “has to be done carefully as all companies don’t have the same context (strategy, culture, history, people)” added Eric, Head of Transformation & Organization Performance at Mercer.

Mercer Analytics™ framework to measure efficiency & effectiveness of an organization

Through this fact based intervention, HR can determine by instance the productivity of their employees, challenge the efficiency and the effectiveness of the whole company and identify improvements for their Human Capital Management System: performance management, reward structure, development & training, career path and talent management.

Eric, Head of Transformation & Organization Performance at Mercer

Satya Radjasa, Country Business Leader at Mercer mentioned that many multinational companies already implemented this approach as a starting point of their transformation. For example, Unilever operated on silos before 2005 meaning no alignment between the different business units. That’s why Unilever started the transformation process of being One Unilever focusing first on the HR department. “After analyzed the big data, the top management decided to do a global transformation plan to improve the business processes and bureaucracy in the company that were inefficient” said Satya.

Thus, this Big Data approach helps companies to define their transformation road map as a continuous improvement plan of performance. Then, one of the most challenging part starts: the implementation. Although changes in organization are inevitable, change is not easy and implementing a successful transformation road map is always challenging. Indeed, HR have to define a change management approach to make people move from the current organization to the targeted one ensuring sustainable results. Eric revealed that a complete change management approach should include communication, trainings and mobilization of all impacted stakeholders and that“defining the most appropriate approach is the key success factors of the transformation journey”. So, this holistic approach will allow a close monitoring of implementation results in a quantifiable way and will help top management to align the organization to their strategy.

Eric Deltour, Head of Transformation & Organization Performance at Mercer ([email protected])

Satya Radjasa, Country Business Leader at Mercer ([email protected])

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