Use Data to Improve Employees Outcomes

Use Data to Improve Employees OutcomesUse Data to Improve Employees OutcomesUse Data to Improve Employees Outcomes Segal, Aaron Goldstein, Jay Goldman and Rahaf Harfoush, authors of The Decoded Company (Portfolio Penguin, 2014)Knowing which kinds of dataare the most important to collect and measure and having the technical ability to collect and measure it are critical issues for what we like to call Decoded Companies.Ultimately, being a Decoded Company is about experimenting to find the right mix of data, that is the information that establishes a direct relationship between an individuals decisions and their impact on the business.Measuring the Impact of DataDatas impact can be measured in several different ways. The most obvious is financial. From either the revenue or cost-savings perspectives, data allows you to see the full chain of actions that link a persons activities to the dollars coming into or going out of the company. Data can also help an organization measure the imp act of an individual on morale, productivity, or happinessWhile there are two types of data self-reported and new age the best organizationsrely on ambient data.Self-Reported vs Ambient DataSelf-reported data requires a users manual input in order to measure it. Filling out time sheets, surveys, performance evaluations and expense reports are all examples of this type of data.Ambient data is information about a behavior that is automatically collected without the user having to actively enter each data point. Swiping into work with an active RFID badge, sending e-mails, making calls, and even adding events to an electronic calendar are all examples of ambient data.The problem with self-reported data is that it is rife with biases. Too much of the information being tracked has been filtered through the interpretations of the people who input it. They might have distorted it deliberately, much as an employee might fill in a time sheet to reflect what they think their babo wants to se e rather than how they really spent their time.Or it might happen subconsciously. A self-evaluation can skew more positively or negatively depending on a persons beliefs about their own behaviors, strengths, and aptitudes.While there are times and places when self-reported data can be valuable, in general, decoded organizations should focus their attention on tracking and analyzing ambient data. There are several advantages to using ambient instead of self-reported data streams.No behavioral shifts needed Ambient data enables companies to track behavior without having to depend upon behavioral changes to do it.Ambient data collection is hassle-free, both for leaders who want to implement these policies and for staff who are looking to avoid the extra effort required to adhere to new regulations or processes.Neutral Perspective Ambient data provides a level of neutral and objective transparency that isnt influenced by personal bias or varying standards. What one person considers an e xceptional performance might be rated only satisfactory by another.Ambient data strips all of that away and looks at the core of whats been measured.The Impact of DataUltimately, being a Decoded Company is about experimenting to find the right mix of data, of the information that establishes a direct relationship between an individuals decisions and their impact on the business. Impact can be measured in several different ways.The most obvious is financial. From either the revenue or cost-savings perspectives, data allows you to see the full chain of actions that link a persons activities to the dollars coming into or going out of the company.Data can also help an organization measure the impact of an individual on morale, productivity, or happiness.The right type of data has to be accurate. The more thoroughly the chain of action is tracked, the better and more reliable the data will be. If there are too many gaps, then you will be forced to supplement the data with assumptions and blind guesses that can lead to mistakes in decision-making.This is well worth remembering You can fill gaps in ambient data with self-reported data as long as it comes from a large enough sample population.Excerpted and adapted from The Decoded Company Know Your Talent Better Than You Know Your Customers by arrangement with Portfolio, a member of Penguin Group (USA) LLC, a Penguin Random House Company. Copyright 2014 by Leerom Segal, Aaron Goldstein, Jay Goldman, and Rahaf Harfoush.