Making the Case for Business Intelligence in Labor Management
In Intelligrated's most recent On The Move webinar, "Using business intelligence to improve your labor force," I explored the potential of marrying business intelligence's (BI) visualization and self-directed investigation capabilities with the known benefits of labor management software (LMS). Combined, these tools are helping businesses better identify labor performance and efficiency problems, and exploit opportunities to improve performance.
To start the discussion, I explained how BI has evolved from an IT-driven pursuit to a self-service model - one where the end user performs the data investigation process and generates visualizations that help companies quickly see trends in large sets of information, as well as identify anomalies. To demonstrate the value in this concept, I presented a visualization of the traffic patterns in the greater Los Angeles metropolitan area. By briefly looking at the visualization, one can quickly determine L.A.'s traffic pattern origins and its concentration of commuter destinations.
Then, I transitioned the focus of the discussion to the use of BI in labor, specifically about how advancements in self-service tools and their integration with LMS are enabling companies to gain new labor insights and address labor market challenges. With the integration of BI into LMS, companies can take traditional performance analytics a step further, by digging deeper into root cause analysis that often belies original assumptions.
To demonstrate the impacts of self-directed investigation in labor management, I walked through three case studies using Intelligrated's BI tool.
1. Shipping error investigation. A repeat missed shipment problem on third shift warranted further investigation by the labor manager. The initial investigation suggested that those shipping errors likely stemmed from the temporary workers on that shift. But upon further investigation, the BI tool revealed that the temps on third shift were outperforming the full-time employees (FTEs). From that insight, the manager inferred that the company's third shift temp training was producing higher performance rates than those of its FTEs. The manager could then take steps to refresh FTE training and address the performance problem.
2. Star performer identification. Most organizations typically have one employee who regularly outperforms others. Through self-directed investigation, BI visualizations help labor managers uncover the specific work patterns that allow these individuals to excel. In this example, I demonstrated how an investigation revealed one shipping staff member who far exceeded the performance levels of his co-workers. Further digging with the BI tool uncovered that this person was especially skilled at processing cases. From a management perspective, this allows leadership to follow up with this individual, understand their processes and then pass these learnings on to other staff members.
3. Execution monitoring. One of the primary goals of resource planning is to make sure the current labor force can execute the daily volume of work. The BI tool enables management to evaluate volume levels throughout the day and adjust the labor force as needed. Visualization clearly shows where the resources and execution plan do not line up. Management can use this tool at different points of the day to see a snapshot of performance versus execution, and then plan accordingly.
To learn more about the potential of BI in labor management, please view this webinar in its entirety.