Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Communication
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A)
This case discusses how the leaders of the Royal Bank of Canada infused the 80,000-employee company with a new emphasis on People Analytics. This supported the bank's business strategies for its wide range of business units. The bank's new People Analytics group, led at the top by the vice president of human resources, collected and analyzed huge volumes of data about the bank's employees, customers, and business unit performance to help the company achieve its strategic goals. Companies across industries had long talked about using data analysis to help them improve employee and organizational performance, but the advent of big data created a step change in the ability to make that happen. With the abundance of data available, and many potential ways to use it, the Royal Bank of Canada, referred to as RBC, was choosing projects that had the greatest potential ROI. The People Strategy and People Analytics teams worked together to add clear business value to business units to help them achieve performance objectives. The case details two of RBC's major People Analytics projects. The first project used data to identify empirically the traits of great managers and subsequently identify who might or might not be a great manager. This enabled RBC to help those managers who could benefit from coaching or other types of interventions. The second project used both internal and customer data to diagnose whether any specific branch, region, or product innovation was not doing as well as it could be-and why not.
Swot Analysis of "Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A)" written by Debra Schifrin, Kathryn Shaw includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Analytics People facing as an external strategic factors. Some of the topics covered in Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) case study are - Strategic Management Strategies, Career planning, Change management, Compensation, Human resource management, Organizational culture, Strategy and Communication.
Some of the macro environment factors that can be used to understand the Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) casestudy better are - – cloud computing is disrupting traditional business models, increasing commodity prices, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing government debt because of Covid-19 spendings, geopolitical disruptions,
increasing household debt because of falling income levels, increasing energy prices, etc
Introduction to SWOT Analysis of Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Analytics People, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Analytics People operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) can be done for the following purposes –
1. Strategic planning using facts provided in Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) case study
2. Improving business portfolio management of Analytics People
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Analytics People
Strengths Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Analytics People in Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) Harvard Business Review case study are -
Innovation driven organization
– Analytics People is one of the most innovative firm in sector. Manager in Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Analytics People is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Debra Schifrin, Kathryn Shaw can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Low bargaining power of suppliers
– Suppliers of Analytics People in the sector have low bargaining power. Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Analytics People to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Communication industry
– Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) firm has clearly differentiated products in the market place. This has enabled Analytics People to fetch slight price premium compare to the competitors in the Communication industry. The sustainable margins have also helped Analytics People to invest into research and development (R&D) and innovation.
Learning organization
- Analytics People is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Analytics People is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Analytics People is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Analytics People
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Analytics People does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Communication field
– Analytics People is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Analytics People in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Analytics People has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Analytics People has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
High brand equity
– Analytics People has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Analytics People to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Analytics People are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Superior customer experience
– The customer experience strategy of Analytics People in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) are -
Need for greater diversity
– Analytics People has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Aligning sales with marketing
– It come across in the case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) can leverage the sales team experience to cultivate customer relationships as Analytics People is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A), is just above the industry average. Analytics People needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Products dominated business model
– Even though Analytics People has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Analytics People has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Analytics People is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Analytics People has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Lack of clear differentiation of Analytics People products
– To increase the profitability and margins on the products, Analytics People needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A), it seems that the employees of Analytics People don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Interest costs
– Compare to the competition, Analytics People has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Analytics People has relatively successful track record of launching new products.
Opportunities Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Analytics People can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Analytics People in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Communication segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Analytics People can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Analytics People is facing challenges because of the dominance of functional experts in the organization. Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Analytics People can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Analytics People has opened avenues for new revenue streams for the organization in the industry. This can help Analytics People to build a more holistic ecosystem as suggested in the Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) case study. Analytics People can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Analytics People to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Analytics People to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Analytics People to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Communication industry, but it has also influenced the consumer preferences. Analytics People can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Analytics People to increase its market reach. Analytics People will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Manufacturing automation
– Analytics People can use the latest technology developments to improve its manufacturing and designing process in Communication segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Low interest rates
– Even though inflation is raising its head in most developed economies, Analytics People can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Communication industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Analytics People can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Analytics People can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Threats Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) are -
Consumer confidence and its impact on Analytics People demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Analytics People in the Communication sector and impact the bottomline of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Analytics People business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Analytics People will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing wage structure of Analytics People
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Analytics People.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Analytics People can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) .
Environmental challenges
– Analytics People needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Analytics People can take advantage of this fund but it will also bring new competitors in the Communication industry.
Regulatory challenges
– Analytics People needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Communication industry regulations.
Shortening product life cycle
– it is one of the major threat that Analytics People is facing in Communication sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Analytics People with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Analytics People in the Communication industry. The Communication industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Analytics People high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A), Analytics People may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communication .
Weighted SWOT Analysis of Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Royal Bank of Canada: Using People Strategy and Analytics to Drive Employee Performance (A) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Analytics People needs to make to build a sustainable competitive advantage.
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