RE: Discussion - Week 3
COLLAPSE
McKinsey and Company is a chain of fast-food restaurants with branches all over the United States and in Europe (Arellano, DiLeonardo & Felix, 2017). The Company, before adopting the use of human resource metrics, had acute drawbacks in service delivery to its clients in nearly all its outlets. The inception of HR Analytics changed the way of narration in the given market strategies of the organization. Chief among its primary goals were two that dealt with employee turnout annually and prompt delivery in the form of customer satisfaction.  The recommended HR Metrics that proved fit for the Company are improving revenue growth per store and providing average customer satisfaction. In summary, it is in line to draw a conclusion that nearly all these metrics are drawn from the Company’s goals.

In reporting these HR metrics, the organization, such as McKinsey and Company have a hierarchical format that serves the smooth running of the Company. There is the team of Human Resource that takes the report on the employees and shares it with the executive (management) team. All the decisions that deal with the amount of time of reevaluations and assessment of the employees’ duties and outputs and so on are all conducted semi-annually.  Generally, it is done two times in a given year. This is because it aligns with the Company’s financial report compilation. In so doing, it makes the work somewhat easier for the Company on which areas have loopholes and which other ones are well.

The impacts that the two metrics have on the Company are positive ones as has been captured in the results when piloting the use of HR Analytics on given subsidiaries of the Company (Byerly 2012). There have been reported increased productivity in the amount of revenue generation of up to 5% of what was initially made in one store before incorporating the use of this new technology. Additionally, the Company has also seen improved customer turn out in the subsidiary sections of the Company. This means, therefore, that the average customer delivery metric has changed how services are done in the outlet, and this has called in more customers. These two are reported impacts the metrics have brought to the Company, as attested in the results of using them in the organization.

The potential challenges likely to be faced by this organization are in the costs.  Running the store as usual, together with that of incorporating the technology of human resource analytics in all branches of the Company, is going to be relatively expensive. Equally, the desired results may not be visible soon enough after inception; some may take time, for instance, in outlining the nature of the candidate fit for the job as discussed by Feffer (2017). The second challenge also navigates around the strategies that drive the implementation of most policies of the given organization. If the procedures are not as coherent to the needs of the Company, then the already witnessed dismal performance will persist.

The additional HR metrics I discarded are the average speed of service to the customers and quarterly reporting of employee evaluations. These two metrics are all contributing to the given organizational goals (Wiley 2018).  The reason for not using the earlier is that it resonated with a distance to the acute problems faced by the organization. Nevertheless, using this case offers multiple alternatives that could at best help in providing solutions for the organization.

In a similar wake for achieving organizational sustained financial and commercial growth, specific strategies such as HR Analytics may be required. However, the challenges, the results could take the organization a step to meeting its goal. This is the same case for McKinsey and Company.



References

Arellano, C., DiLeonardo, A., & Felix, I. (2017). Using people analytics to drive business performance: A case study. McKinsey Quarterly. Retrieved from https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/using-people-analytics-to-drive-business-performance-a-case-study

Byerly, B. (2012). Measuring the impact of employee loss. Performance Improvement, 51(5), 40–47. doi:10.1002/pfi.21268.

 Feffer, M. (2017). 9 tips for using HR metrics strategically. HR Magazine.

Wiley Connections. (2018). Track key metrics to ensure efficient, effective staff    management. Nonprofit Business Advisor, 2018(343), 5–8.