The Power of People Analytics: Improving leadership through data

Luciano Marucco
Sep 9, 2018 · 3 min read
Illustration by maryvalery

We all know people are the greatest asset of any company, but managers are a special kind. Called to inspire and get the best out of their teams; it’s staggering how most organizations underestimate the importance of training them to be better leaders. Luckily, data is here to help.

This is the second part of a series where we explore the power of People Analytics and how techniques more commonly seen in research and statistics are helping HR teams across the globe to make better-informed decisions. See this previous article to have more background on why HR data matters.

Research tells us that humans love analytics and data, we constantly look for a rational and logical explanation, some kind of ultimate proof, as a way to understand how things work. With this in mind, Google embarked on a mission to understand leadership better. So they asked an extremely simple question: What makes a great manager?

Using data, Google went through more than 10,000 observations about managers and correlating these with measures of team success to find 10 key skills that separated the best managers from average. They Called it Project Oxygen. Bear in mind these skills are in order of importance:

  1. Is a good coach
  2. Empowers team and does not micromanage
  3. Creates an inclusive team environment, showing concern for success and well-being
  4. Is productive and results-oriented
  5. Is a good communicator — listens and shares information
  6. Supports career development and discusses performance
  7. Has a clear vision/strategy for the team
  8. Has key technical skills to help advise the team
  9. Collaborates across Google
  10. Is a strong decision maker

You might think, some of those skills are obvious to be a successful manager but in reality, companies more often than not, hire and promote managers that excel in a particular field. Google was also guilty of this behavior and in an interview with The New York Times, Lazlo Bock now former Senior VP of People Operations said “It turns out that that’s absolutely the least important thing, it’s important, but pales in comparison. Much more important is just making that connection and being accessible”. In fact, teams across all Google employees rated technical skills 8th on the list while being a good coach, was by far the most important skill a manager can have.

Data also pointed out that great managers not only provide a happier team but also ensures lower turnover rates, boosts performance and favor a more innovative and creative environment. Google’s intention was not just to identify desirable management traits but instead, it was aimed at finding measurable and actionable behaviors that brought those traits to life. An example of this being that managers having one on ones with their teams on a weekly basis where more successful on average. Or the fact that engineers hate being micromanaged on the technical side but love being closely managed on the career side. After finding what made managers excel, Google did put this knowledge to work by offering training for managers that lacked some of the listed skills.

Google’s case study is fantastic, it ticks all the boxes for being an example of how data can help HR make better-informed decisions. The question here is, should you apply their results to your company? Actually not. The findings are based on Google’s very specific company culture that happens to be focused on engineering and innovation and it’s very unlikely they’ll be applicable to other environments. Make sure to run your own data, gather feedback and opinions from your team. Ask questions! and work with your findings. Adding this layer of critical thinking within your organization is fun and more importantly, sends the message that you take company decisions seriously.

Do you know of other cases where People Analytics helped improve management? Let me know in the comments below.

Learn more about Project Oxygen here

Forward thinking HR

Articles, ideas and inspiration around HR, Talent and forward thinking cultures

Luciano Marucco

Written by

Writer, Tech enthusiast and HR professional

Forward thinking HR

Articles, ideas and inspiration around HR, Talent and forward thinking cultures

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