Don’t Be A Copy-Cat: People Analytics as the Antidote to HR Strategy Copy-Cats

This article is written to discuss: why copying the HR practices that everyone else uses doesn’t lead to the positive outcomes you assume it will. DISCLAIMER: If you like the HR strategy at your organization, you can probably stop reading now… If not, feel free to keep reading.

Context

Childhood wisdom: No one likes a copy-cat.

We all remember being children once. Kids are known to tease each other from time to time. One common reason to be teased when you were a child was being called a “copy-cat”. It didn’t feel good, often because we knew that if we were labeled a copy-cat, it was likely true. We were copying someone else. It felt bereft, unoriginal, and commonplace. We knew we were capable of being more, but we had settled for less. We were better than that. HR strategy can be better than that too. Fast forward to the present, in HR being a copy-cat is all the rage. A priestly caste of HR influencers, HR tech consultants, FAANG companies, and sometimes even academics determine what is considered ‘en vogue’ as an HR strategy. Then, early adopter HR departments fall in-line; followed by the early majority and late majority after a few HR monkeys get “shot into space” without injury. The laggards may never arrive because they are still trying to move away from using paper files stuffed in filing cabinets, but nonetheless, being a copy-cat all the sudden became cool. Why be original when you could be doing what everyone else is doing? Perhaps, this is why Forrester is forecasting an EX winter coming soon… In the African savanna, large numbers of herd animals, such as wildebeest, zebra, and gazelles, travel in packs. Why do they do this? Because there is safety in numbers. A zebra with a single imperfection or mark is easily identified and pulled from the pack by predators. Is the same true for HR? Are we safer in a pack? Is there wisdom in being a copy-cat? Would anything different make us stand out and therefore be put in danger? I think not. I think the opposite is true, in fact. If you do all the same things as your competitors, how can you expect to get different results?

Does this HR strategy sound familiar?

“We’re going to try to hire the best talent, but only pay at the 50th percentile.” “We’re a performance-driven organization, but we’re going to do performance reviews once a year on a 5-point rating scale, and we’ve got to implement a pay-for-performance incentive structure.” “Our HR operating model is to use HR Business Partners, Centers of Excellence, and Shared Services.” “We’re going to copy what Google did 10 years ago, or what GE did in the 80s.” “We’re going to make data-driven decisions. I know! Let’s create another HR dashboard.”

If your organization wants to be radically better, it’s going to have to try some things that are radically different. Did anyone see Coinbase’s recent blog on Talent Density? I’m not saying I agree with the changes to their HR strategy, but at least they are trying to differentiate their HR strategy to be something different. They are getting into the game, for better or worse.

What To Do, What To Do?

HR strategy should be composed of elements that are as unique to your business as your business strategy is unique to your business. It’s really as simple as that. HR Strategy is upstream of people analytics. A vanilla, copy-cat HR strategy is going to lead to vanilla, copy-cat people analytics. In my opinion, people analytics doesn’t spend enough of its resources trying to familiarize itself, influence, and control HR strategy. People analytics should speak in the social currency of the organization. We should embed ourselves and influence key decision making, and have a seat at the table by speaking in the language of the business. There is social capital to be had, and the more I learn, the more I realize the necessity of this alternative currency. We should drive strategy. With generative AI disrupting the value that human capital brings to organizations, who are the organizations that are going to be the innovators of tomorrow? Who are the organizations who will get the message early? Who will treat the need for differentiation with the existential demand that it dictates? Who will survive?

“Best Practices”

I’m tired of the term ‘best practices’. I’m at a point in my career where I bristle when I hear someone say it. Perhaps it's one of the reasons why some people hate HR. Organizational research is important, but best practices are a road to mediocrity. No one ever got fired for going with IBM, and no one ever got fired for using best practices… Until the whole firm loses to its competition, and everyone gets fired. Read it again, and think about that. It’s a short-term vs long-term thinking dilemma. Obviously, balance the two, but make sure to think with the long-term in mind.

What if instead of copy-catting, you:

• A/B tested your HR strategy against those of other firms
• Used opposition research to understand your competitors HR strategy better, so you can do something different
• Implemented evidence-based practices on commoditized work, but experimented with firm-specific practices in the most strategically-relevant work
• Focused on first-principles thinking as to how firm value is derived by its talent
• Choose function over fad, when it comes to HR strategy

Rebuild HR strategy like the Oaklands As (and the Houston Astros) tore down and rebuilt their teams based on talent derived from data. Embed data, measurement, accountability, and the “improvement feedback loop” into every single workstream that HR engages. Henry Ford once said “if you always do what you’ve always done, you always get what you’ve always got.” HR could be convicted of being mediocre. Average is over (or maybe even above average is over?). Differentiation is king. Strategic neglect (i.e., neglecting things that don’t add value) is also a valuable tool. Where do we need to be world class? Where can we be average? Answer those questions, then execute.

Rebuilding HR Around Data & Measurement

In most HR functions, data is only used to validate, not to guide. No one thinks for themselves. Mimicry and mimesis abound. People analytics is a competitive advantage for firms who use it properly. People analytics is the future of HR. Proclamations such as this have been made consistently in the past (e.g., HR is over, remote work is the future, there is no need for management, human tasks at work will be automated with AI, etc.), but this one is for real. Firms who are not embedding data into the way they do business, evaluating what they do with data, and projecting the future with data are going to be irrelevant. In the future, even in the age of generative AI, there is only one currency, and that is truth. Truth can only be derived as data put into practice. Classical test theory states that all measurement is “truth-plus-error”, with error being any deviation between measurement and the truth. Some stakeholders believe that to mean that truth can never be attained because error will always exist. Practically, this is a misinterpretation. Organizations that can manifest the best data with the least error will be the closest to truth, and therein lies the root of competitive advantage via data. People analytics is not inherently useful. Data is not inherently useful. Only accurate data, with analysis and cogent results, derived into a form that facilitates timely and accurate decision making, and that is put into action, is useful. And across the aggregate of thousands, if not millions of small decisions made leads one organization to prevailing over another. May the odds ever be in your favor.

Moving Forward

“Traditional HR” has been on the way out for decades. This article is for HR people who believe in challenging the status quo. Deep down they know there is a better way; a way forward for their organization. To not outsource their originality to others. To not be a copy-cat. Let’s focus on what the pathway forward looks like with a new highest principle – no longer “what is everyone else doing?” – but with data and measurement at the center. This article is for the HR professional who knows that HR can be smarter, faster, and better at their organization, and they are bound to make it happen. Join the movement. Don’t be a copy-cat. Let’s see how high we can fly together. PS - I’m thinking of writing a book on this topic. If you’re a publisher and you are interested in this topic, or others I’ve written about before, please contact me directly. Special shout out: Thanks to Brad Harris & Pat Downes for our previous conversations on this topic. I hope you like this article. If so, I have a few more articles coming out soon. Stay tuned. If you are interested in learning more directly from me, please connect with me on LinkedIn.

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For access to all of Cole’s previous articles, go here.

By: Cole Napper

原文来自：https://directionallycorrectnews.substack.com/p/dont-be-a-copy-cat-people-analytics