A Strategic Approach to Workforce Analytics: Integrating Science and Agility SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Communication
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of A Strategic Approach to Workforce Analytics: Integrating Science and Agility
Workforce analytics is a major emerging trend in human resource management. Yet, despite the enthusiasm, there exists a misunderstanding of how organizations can successfully use workforce analytics to achieve important organizational outcomes. This article proposes ways to overcome this execution dilemma and achieve organizational success with workforce analytics through the integration of agile development with scientific research. We use a number of company examples to outline five key parts of an agile workforce analytics process: (1) prioritizing issues, (2) integrating deductive and inductive approaches, (3) preparing and validating data, (4) applying multiple methods in concert to support decisions, and (5) transforming insight into action to improve business outcomes.
Authors :: Derrick McIver, Mark L. Lengnick-Hall, Cynthia A. Lengnick-Hall
Swot Analysis of "A Strategic Approach to Workforce Analytics: Integrating Science and Agility" written by Derrick McIver, Mark L. Lengnick-Hall, Cynthia A. Lengnick-Hall includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Workforce Analytics facing as an external strategic factors. Some of the topics covered in A Strategic Approach to Workforce Analytics: Integrating Science and Agility case study are - Strategic Management Strategies, Human resource management and Communication.
Some of the macro environment factors that can be used to understand the A Strategic Approach to Workforce Analytics: Integrating Science and Agility casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption,
increasing transportation and logistics costs, there is backlash against globalization, etc
Introduction to SWOT Analysis of A Strategic Approach to Workforce Analytics: Integrating Science and Agility
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in A Strategic Approach to Workforce Analytics: Integrating Science and Agility case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Workforce Analytics, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Workforce Analytics 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 A Strategic Approach to Workforce Analytics: Integrating Science and Agility can be done for the following purposes –
1. Strategic planning using facts provided in A Strategic Approach to Workforce Analytics: Integrating Science and Agility case study
2. Improving business portfolio management of Workforce Analytics
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 Workforce Analytics
Strengths A Strategic Approach to Workforce Analytics: Integrating Science and Agility | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Workforce Analytics in A Strategic Approach to Workforce Analytics: Integrating Science and Agility Harvard Business Review case study are -
Ability to lead change in Communication field
– Workforce Analytics 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 Workforce Analytics in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Workforce Analytics 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 Derrick McIver, Mark L. Lengnick-Hall, Cynthia A. Lengnick-Hall 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.
Successful track record of launching new products
– Workforce Analytics has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Workforce Analytics 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.
Innovation driven organization
– Workforce Analytics is one of the most innovative firm in sector. Manager in A Strategic Approach to Workforce Analytics: Integrating Science and Agility Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Workforce Analytics has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Workforce Analytics 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.
Effective Research and Development (R&D)
– Workforce Analytics has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study A Strategic Approach to Workforce Analytics: Integrating Science and Agility - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Training and development
– Workforce Analytics has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in A Strategic Approach to Workforce Analytics: Integrating Science and Agility Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Sustainable margins compare to other players in Communication industry
– A Strategic Approach to Workforce Analytics: Integrating Science and Agility firm has clearly differentiated products in the market place. This has enabled Workforce Analytics to fetch slight price premium compare to the competitors in the Communication industry. The sustainable margins have also helped Workforce Analytics to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Workforce Analytics in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Workforce Analytics is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Workforce Analytics is present in almost all the verticals within the industry. This has provided firm in A Strategic Approach to Workforce Analytics: Integrating Science and Agility case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Weaknesses A Strategic Approach to Workforce Analytics: Integrating Science and Agility | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of A Strategic Approach to Workforce Analytics: Integrating Science and Agility are -
Skills based hiring
– The stress on hiring functional specialists at Workforce Analytics 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.
High operating costs
– Compare to the competitors, firm in the HBR case study A Strategic Approach to Workforce Analytics: Integrating Science and Agility has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Workforce Analytics 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study A Strategic Approach to Workforce Analytics: Integrating Science and Agility, in the dynamic environment Workforce Analytics has struggled to respond to the nimble upstart competition. Workforce Analytics has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
No frontier risks strategy
– After analyzing the HBR case study A Strategic Approach to Workforce Analytics: Integrating Science and Agility, it seems that company is thinking about the frontier risks that can impact Communication strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Increasing silos among functional specialists
– The organizational structure of Workforce Analytics is dominated by functional specialists. It is not different from other players in the Communication segment. Workforce Analytics needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Workforce Analytics to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study A Strategic Approach to Workforce Analytics: Integrating Science and Agility, is just above the industry average. Workforce Analytics 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.
Capital Spending Reduction
– Even during the low interest decade, Workforce Analytics 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.
High cash cycle compare to competitors
Workforce Analytics has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study A Strategic Approach to Workforce Analytics: Integrating Science and Agility, it seems that the employees of Workforce Analytics 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.
Aligning sales with marketing
– It come across in the case study A Strategic Approach to Workforce Analytics: Integrating Science and Agility 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 A Strategic Approach to Workforce Analytics: Integrating Science and Agility can leverage the sales team experience to cultivate customer relationships as Workforce Analytics is planning to shift buying processes online.
Workers concerns about automation
– As automation is fast increasing in the segment, Workforce Analytics needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Opportunities A Strategic Approach to Workforce Analytics: Integrating Science and Agility | 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 A Strategic Approach to Workforce Analytics: Integrating Science and Agility are -
Developing new processes and practices
– Workforce Analytics can develop new processes and procedures in Communication industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Using analytics as competitive advantage
– Workforce Analytics has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study A Strategic Approach to Workforce Analytics: Integrating Science and Agility - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Workforce Analytics to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Buying journey improvements
– Workforce Analytics can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. A Strategic Approach to Workforce Analytics: Integrating Science and Agility suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Leveraging digital technologies
– Workforce Analytics 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, Workforce Analytics is facing challenges because of the dominance of functional experts in the organization. A Strategic Approach to Workforce Analytics: Integrating Science and Agility 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.
Building a culture of innovation
– managers at Workforce Analytics can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Communication segment.
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. Workforce Analytics can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
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. Workforce Analytics can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Workforce Analytics in the consumer business. Now Workforce Analytics can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Workforce Analytics has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Workforce Analytics 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, A Strategic Approach to Workforce Analytics: Integrating Science and Agility, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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. Workforce Analytics 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. Workforce Analytics 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.
Better consumer reach
– The expansion of the 5G network will help Workforce Analytics to increase its market reach. Workforce Analytics 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.
Threats A Strategic Approach to Workforce Analytics: Integrating Science and Agility External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study A Strategic Approach to Workforce Analytics: Integrating Science and Agility are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study A Strategic Approach to Workforce Analytics: Integrating Science and Agility, Workforce Analytics 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Workforce Analytics with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Workforce Analytics 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 A Strategic Approach to Workforce Analytics: Integrating Science and Agility .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Workforce Analytics 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.
Easy access to finance
– Easy access to finance in Communication field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Workforce Analytics can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Stagnating economy with rate increase
– Workforce Analytics can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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 Workforce Analytics business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Workforce Analytics has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Workforce Analytics needs to keep up with the evolution of technology in the Communication sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Regulatory challenges
– Workforce Analytics 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.
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 Workforce Analytics in the Communication sector and impact the bottomline of the organization.
Consumer confidence and its impact on Workforce Analytics 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.
High dependence on third party suppliers
– Workforce Analytics 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.
Weighted SWOT Analysis of A Strategic Approach to Workforce Analytics: Integrating Science and Agility 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 A Strategic Approach to Workforce Analytics: Integrating Science and Agility 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 A Strategic Approach to Workforce Analytics: Integrating Science and Agility 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 A Strategic Approach to Workforce Analytics: Integrating Science and Agility 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 A Strategic Approach to Workforce Analytics: Integrating Science and Agility 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 Workforce Analytics needs to make to build a sustainable competitive advantage.