We are not the cost police, we are the path to the organization’s future.

Information about Human Capital never occurs in a vacuum. It simply isn’t possible to separate the details that HR collects from the reality that generates them. For the most part, HR delivers data that helps us understand the insides of HR. What we need instead is information that can drive operational effectiveness. We want the big picture and we need to understand how all the parts fit together to get the work done. HR has access to that information and one of the best views in the company to give us important insights.

To the extent HR is only focused on accounting and cost control, we are missing a unique opportunity to access essential data about both our people and systems that affect the health and development of the business. Each of the arenas described here offers a gateway to understanding and creating value. Any particular data point can provide only partial insight into the complex nature of our employees and company.

Great Analytics solutions provide tools that create a floor for the larger conversation.

Here are the things we need from a workforce analytics platform:

• BI Unified with Core HR.
  All reporting should be unified with core HR, payroll, and talent management functionality enabling us to track all relevant metrics in one place, across teams, departments, and locations for the entire organization. All data should be sliceable by job, position, department, region, industry. BI provides the foundation for deeper analysis. The starting point is the equivalent of full accounting.
• Information Usable by Everyone.
  Holding information captive inside the HR silo is singularly counter-productive. A great core BI tool is accessible to everyone who needs it.
• Strong Customizability.
  When we dig into the data, we are never looking for deeper insight into the existing metrics. Generally, we are solving a problem and need to dig deeply into the questions. So we need to be able to add new metrics, rearrange connections, and easily view the information in multiple ways as things change and grow.
• Enterprise Integration.
  For any tool to really be useful, it needs to integrate easily with other data sources and analysis tools so that we can use all the information available to understand the complete picture. In order for the organization to control its destiny, it needs data that is easy to work with, easy to integrate, and easy to understand.

Data is the foundation for critical conversations. The very best tools deliver the data and then get out of the way. Data is never the answer, but it’s always the foundation. And often, it leads to the key questions that change everything. Best in class software tools allow comprehensive integration of HR data. They also provide a framework for incorporating data from the rest of the organization and the outside world.

If I could change one single thing, it would be to help HR understand that Finance and Accounting are complementary, but separate, functions. In our department, we do the fundamental accounting so that there is a baseline for much more important conversations. We only engage in cost avoidance and reduction as a last resort.

The real value in HR (and finance) has to do with the workforce’s suitability for market conditions and opportunities. A great conversation with HR is all about the best ways to get things done. We are all engaged in the process of making money. We are not the cost police, we are the path to the organization’s future. And HR understands the landscape better than almost any other department in the company.

The series

• The View From The CFOs Office 1: Overview
• The View From The CFO’s Office 2: Overtime and Benefits Analysis
• The View From The CFOs Office 3: Turnover Analysis
• The View From The CFO’s Office 4: Training and Recruiting
• The View From The CFO’s Office: Conclusions (BI)