Tag: humanresources

Why Chief Human Resources Officers Make Great CEOs

For decades the corporate HR department was seen as a back-office function, a cost center focused on mundane administrative tasks such as managing compensation and benefits plans. But over the past 15 years Ellie Filler has noticed a dramatic change. Filler, a senior client partner in the Swiss office of the executive recruiting firm Korn Ferry, specializes in placing chief human resources officers (CHROs) with global companies. For years many of the HR chiefs she recruited reported to the COO or the CFO and complained that they lacked real influence in the C-suite.

Today, she says, they often report directly to the CEO, serve as the CEO’s key adviser, and make frequent presentations to the board. And when companies search for new CHROs, many now focus on higher-level leadership abilities and strategy implementation skills. “This role is gaining importance like never before,” Filler says. “It’s moved away from a support or administrative function to become much more of a game changer and the person who enables the business strategy.”

To investigate the CHRO role within the C-suite, Filler worked with Dave Ulrich, a University of Michigan professor and a leading consultant on organization and talent issues. In looking at several sets of data, they found surprising evidence of the increasing responsibility and potential of CHROs.

First, in order to understand the importance of the CHRO relative to other C-suite positions, including CEO, COO, CFO, CMO, and CIO, Filler and Ulrich looked at salaries. To identify the best performers, they found the top decile of earners in each role. Then they averaged the annual base compensation of each group. No surprise: CEOs and COOs are the highest-paid executives. But CHROs are next, with an average base pay of $574,000—33% more than CMOs, the lowest earners on the list. “Great CHROs are very highly paid because they’re very hard to find,” Ulrich says.

The researchers also studied proprietary assessments administered by Korn Ferry to C-suite candidates over more than a decade. They examined scores on 14 aspects of leadership, grouped into three categories: leadership style, or how executives behave and want to be perceived in group settings; thinking style, or how they approach situations in private; and emotional competency, or how they deal with such things as ambiguity, pressure, and risk taking. The researchers then assessed the prevalence of these traits among the different types of executives and compared the results.

Their conclusion: Except for the COO (whose role and responsibilities often overlap with the CEO’s), the executive whose traits were most similar to those of the CEO was the CHRO. “This finding is very counterintuitive—nobody would have predicted it,” Ulrich says.

Mapping Leadership Styles

The researchers analyzed 360-degree assessments of thousands of leaders in six C-suite functions—CEO, CFO, COO, CIO, CHRO, and CMO—in which each executive was ranked on 14 aspects of leadership on a scale from one to seven. The surprising result: The traits of CHROs matched up closely with those of CEOs.

The discovery led Filler and Ulrich to a provocative prescription: More companies should consider CHROs when looking to fill the CEO position. In the modern economy, they say, attracting the right talent, creating the right organizational structure, and building the right culture are essential for driving strategy—and experience as a CHRO makes a leader more likely to succeed at those tasks.

The advice comes with some caveats. First, Filler and Ulrich studied only the best performers, so they’re pointing to a small subset of CHROs as having corner-office potential. They don’t see a path to the top job among people who have spent their careers in HR; instead, they are touting the prospects of executives who have had broad managerial experience (and P&L responsibility) that includes a developmental stint running the HR department. They emphasize that any CHRO who aspires to become a CEO must demonstrate capabilities in a host of skills required of top leaders.

“The challenge for CHROs is to…acquire sufficient technical and financial skills, in early education and in career steps along the way, if succession to CEO is a desired outcome,” they write in a white paper about their research. Indeed, some companies, including Zurich Insurance, Nestlé, Philip Morris, and Deutsche Bank, do put high-potential executives through a developmental rotation in a high-level HR job. (For one view on facilitating such developmental opportunities, see “It’s Time to Split HR,” by Ram Charan, HBR, July–August 2014.)

“It’s Still Relatively Rare, But It Shouldn’t Be”

Christian Schnur/Keystone/Redux

Bernard Fontana has served as CEO of the Swiss cement company Holcim since 2012—and earlier in his career he spent three years as the chief human resources officer at ArcelorMittal, a 320,000-employee global mining and steelmaking company. He spoke with HBR about why a stint as CHRO is great preparation for becoming CEO. Edited excerpts follow.

Did you always aspire to work in HR?

No. But when I was 30 I was working for a French company, and I traveled to Hong Kong with the CEO. During the trip he talked about how at one point in his career, he’d been asked to be the head of HR. “It’s not something to do all your life, but one day if you have this opportunity, I’d advise you to take it,” he said. “You’ll learn a lot, and it will be useful if you become a CEO.” He was right.

Why was serving as CHRO an important experience?

Leadership is about transforming an institution, and if you want to have a sustainable transformation, you need to develop leaders who will continue the journey after you. HR is an essential part of that kind of generative leadership. My predecessor as CEO had been here for 10 years, and the board was looking for an outsider with this characteristic—the ability to develop people and generate new leaders.

As more companies do mergers or reorganizations, are HR skills a bigger part of a CEO’s skill set?

Yes. Those transformations are times of opportunity for a company, but they’re also times of uncertainty for employees. That’s something you need to acknowledge and turn into a strength. With HR experience, you’re more aware of certain situations. You pay attention to the way you say things. During those times questions of company identity, values, and behavior matter a lot.

Do you put many of your up-and-coming stars into HR roles?

In HR you need a mix of experts who will spend their careers there and people who will go there for a short time for development and then return to running businesses. I do put executives into those jobs, but those development roles are the minority in any HR department.

Should more boards consider hiring CHROs as CEOs?

Yes. It’s still relatively rare, but it shouldn’t be. The ultimate responsibility of CEOs is to make sure that what they initiate will continue and that they develop the men and women who will carry on the work. So for me, it’s very logical to have former CHROs as CEOs, because they have experience developing people.

Filler and Ulrich highlight two examples of prominent CEOs who had developmental stints in HR earlier in their careers. Mary Barra, the CEO of General Motors, served as the carmaker’s vice president of HR for 18 months, and Anne Mulcahy, Xerox’s CEO from 2001 to 2009, ran that company’s HR operations for several years in the early 1990s. It’s no coincidence that both are women: According to the researchers’ data, 42% of high-performing CHROs are female—more than double the share in the CMO position, the next highest (16%). One implication: If more companies envisioned CHROs as potential CEOs, the number of female CEOs could dramatically increase.

In their white paper Ulrich and Filler also report on what CEOs and CHROs have to say about the changing nature of the top HR role. Several CEOs see the CHRO as C-suite consigliere. “It is almost impossible to achieve sustainable success without an outstanding CHRO,” says Thomas Ebeling, the CEO of the German media company ProSiebenSat.1 Media AG and a former CEO of Novartis. “[The CHRO] should be a key sparring partner for a CEO on topics like talent development, team composition, [and] managing culture.”

Peter Goerke, the London-based group director for HR at Prudential, agrees with Filler and Ulrich that although deep skills in marketing or finance might once have given CEO aspirants a significant competitive advantage, today a broader set of people-focused skills can be more useful. “Succession to a CEO role requires a balance of technical and people skills,” he says. “For all C-suite roles, and often at least one level down, there has been a gradual shift in requirements toward business acumen and ‘softer’ leadership skills. Technical skills are merely a starting point.”

In spite of the historic bias against the CHRO function, the rising status of HR leaders is not entirely surprising. Over the past 20 years Jim Collins and other management theorists have focused on talent strategy as the prime determinant of corporate success—an idea Collins popularized in phrases such as “Get the right people on the bus” and “First who, then what.”

In her work recruiting CHROs, Filler has seen a growing recognition that those aphorisms hold true. “If you don’t have the right people in the right places—the right talent strategy, the right team dynamics, the right culture—and if you don’t proactively manage how an organization works from a culture and a people perspective, you’re on a serious path to disaster,” she says. Conversely, a top-notch CHRO can help a company plot a more successful future.

Source: Why Chief Human Resources Officers Make Great CEOs

Critics: by MasterClass staff

A chief human resources officer (CHRO) is an executive-level position that oversees human resources management for a business or organization. The CHRO—sometimes referred to as the chief people officer (CPO) or executive vice president of human resources—directs the HR department and carries out HR policies. Some of the HR functions that CHROs oversee include talent acquisition and retention, performance management, and employee engagement. As the chief HR officer, a CHRO also helps to develop the workplace culture and supports business goals and diversity, equity, and inclusion initiatives.

As a leadership role, the CHRO job description includes overseeing the HR directors and HR team carrying out the company’s employee-based initiatives. The CHRO reports directly to members of the top C-suite executive team—often the chief executive officer (CEO) or chief operating officer (COO)—and works to align the HR strategy with the company’s strategic plan and business objectives.

A few of the responsibilities of a CHRO include:

  1. Benefits and labor relations management: A CHRO oversees the implementation of HR software to streamline healthcare and retirement programs, government compliance requirements, and employee relations. They explore partnerships to offer employees new benefits such as wellness programs or professional development opportunities.
  2. Guides company culture: This role in HR leadership includes helping to define and develop company culture for the workforce, executive leadership team, and other stakeholders. Maintaining employee engagement and productivity through incentives, clearly defined career paths and equitable compensation packages, and a commitment to diversity in hiring practices are core components of this human resources function.
  3. Oversees talent recruitment and retention: Talent management is another cornerstone of human capital management and the CHRO role. A CHRO develops and adopts a talent strategy that outlines how to recruit, hire, develop, and retain employees. The talent strategy includes offering equal opportunities to all candidates, employee training initiatives, career development programs, and succession planning, which is a strategy to identify potential leaders when companies change management.

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5 Tiny But Impactful ‘Microaffirmations’ To Make Everyone on Your Team Feel Valued and Included

When it comes to making sure colleagues from different backgrounds feel comfortable at work, tiny things really do matter. We often hear about how “microaggressions” like always expecting female employees to organize birthday cards or questioning non-white colleagues about “where they’re from” can alienate, exhaust, and distract people at work.

But the opposite is also true. Even small actions and moments of thoughtfulness can make people feel welcome, valued, and included. New research out of the University of Kansas, for instance, found simply having male allies who spoke positively about gender equality helped make women working in unbalanced tech and science fields feel more supported.

Microaggressions matter, but so too do “microaffirmations.” These “are little ways that you can affirm someone’s identity; recognize and validate their experience and expertise; build confidence; develop trust; foster belonging; and support someone in their career,” according to Change Catalyst CEO Melinda Briana Epler, who has worked on diversity issues for 25 years.

Microaffirmations cost nothing and take mere seconds but can make a big difference to how well your company lives up to its ideals (and attracts and retains diverse talent). In a recent TED Ideas post, Epler laid out 13 of them, but here are five to get you started.

1. Mirror the language that someone uses to describe their own identity.

Can the fast-changing rules about the “right” words to use around sensitive subjects and identity markers seem confusing sometimes? Sure, but there’s an easy solution that doesn’t require keeping up with complicated theories or ever-changing debates. Just talk about people the way they talk about themselves.

“Listen and learn how someone pronounces their name, describes their identity and uses their pronouns. Then mirror the language they use to describe themselves — it shows them you’re paying attention and that you care about them,” instructs Epler.

2. Acknowledge important holidays and life milestones.

Not everyone in your office may celebrate the same holidays or tick through the same life milestones. But everyone you work with deserves to have the biggest occasions in their lives recognized by their colleagues.

“Keep an eye out for key moments that might be important in someone’s life, and recognize them. You might wish them a lovely Diwali if they celebrate it,” Epler offers as an example of a long list of potentially relevant occasions including Juneteenth, Ramadan, Yom Kippur, Pride Month, etc.

3. When someone isn’t participating, take notice and support them.

It’s easy to write off someone who is quiet in meetings or brainstorming sessions as simply short of courage or ideas, but if you do so, you’ll likely miss out on both valuable insights as well as a chance to bring out the best in your people.

“A person who is feeling marginalized or excluded, tokenized or like an impostor may sideline themselves — by not speaking up, not contributing, not showing up. In the remote workplace, people may turn off their video because they aren’t engaged, don’t have a home environment they want to show on video, feel excluded, or are burned out from inequities and exclusion. Check in with them, and see if and how you can support them,” advises Epler.

4. Invite someone to speak and share their expertise.

If you’re invited to speak on an all-white guy panel or notice a certain sameness in who gets chosen for the big presentations around your office, fixing that lack of diversity isn’t just in the hands of the organizers. Epler urges those with clout to help push forward underrecognized talent in their professional circles.

“If you’ve been invited to give a speech or presentation, ask if you can bring an expert colleague with you to the stage, or consider stepping back and recommending someone who isn’t often asked to speak,” she suggests, adding that “if you’re asking someone to share their expertise at a corporate event or at an event that makes a profit, make sure they are paid equitably for their expertise.”

5. Provide both positive feedback and constructive criticism.

Studies show that women in particular are often give only “nice” feedback that ignores areas for improvement and robs them of opportunities to learn and grow. So be cognizant of your constructive criticism and make sure you’re not shying away from sometimes awkward but ultimately beneficial conversations with certain members of your team.

On the other hand, Epler reminds bosses to also remember to mix praise for what’s positive in with notes on what to work on. “When I was in film school working with actors, one of my directing teachers taught us that you should always give an actor two to three pieces of specific positive feedback before providing negative or constructive feedback. It can make a big difference in their next performance,” she writes.

Author image for Jessica Stillman

By Jessica Stillman, Contributor, Inc.com@EntryLevelRebel

Source: 5 Tiny but Impactful ‘Microaffirmations’ to Make Everyone on Your Team Feel Valued and Included | Inc.com

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“Organization Science – INFORMS”

How To Intervene When a Manager Is Gaslighting Their Employees

Summary

Gaslighting is a form of psychological abuse where an individual tries to gain power and control over you by instilling self-doubt. Allowing managers who continue to gaslight to thrive in your company will only drive good employees away. Leadership training is only part of the solution — leaders must act and hold the managers who report to them accountable when they see gaslighting in action. The author presents five things leaders can do when they suspect their managers are gaslighting employees.

“We missed you at the leadership team meeting,” our executive vice president messaged me. “Your manager shared an excellent proposal. He said you weren’t available to present. Look forward to connecting soon.”

In our last one-on-one meeting, my manager had enthusiastically said that I, of course, should present the proposal I had labored over for weeks. I double-checked my inbox and texts for my requests to have that meeting invite sent to me. He had never responded. He went on to present the proposal without me.

Excluding me from meetings, keeping me off the list for company leadership programs, and telling me I was on track for a promotion — all while speaking negatively about my performance to his peers and senior leadership — were all red flags in my relationship with this manager. The gaslighting continued and intensified until the day I finally resigned.

Gaslighting is a form of psychological abuse where an individual tries to gain power and control over you. They will lie to you and intentionally set you up to fail. They will say and do things and later deny they ever happened. They will undermine you, manipulate you, and convince you that you are the problem. As in my case, at work, the “they” is often a manager who will abuse their position of power to gaslight their employees.

Organizations of all sizes are racing to develop their leaders, spending over $370 billion a year globally on leadership training. Yet research shows that almost 30% of bosses are toxic. Leadership training is only part of the solution — we need leaders to act and hold the managers who report to them accountable when they see gaslighting in action. Here are five things leaders can do when they suspect their managers are gaslighting employees.

Believe employees when they share what’s happening.

The point of gaslighting is to instill self-doubt, so when an employee has the courage to come forward to share their experiences, leaders must start by actively listening and believing them. The employee may be coming to you because they feel safe with you. Their manager might be skilled at managing up, presenting themselves as an inclusive leader while verbally abusing employees. Or they may be coming to you because they feel they’ve exhausted all other options.

Do not minimize, deny, or invalidate what they tell you. Thank them for trusting you enough to share their experiences. Ask them how you can support them moving forward.

Be on the lookout for signs of gaslighting.

“When high performers become quiet and disinterested and are then labeled as low performers, we as leaders of our organizations must understand why,” says Lan Phan, founder and CEO of community of SEVEN, who coaches executives in her curated core community groups. “Being gaslighted by their manager can be a key driver of why someone’s performance is suddenly declining. Over time, gaslighting will slowly erode their sense of confidence and self-worth.”

As a leader, while you won’t always be present to witness gaslighting occurring on your team, you can still look for signs. If an employee has shared their experiences, you can be on high alert to catch subtle signals. Watch for patterns of gaslighting occurring during conversations, in written communication, and activities outside of work hours.

Here are some potential warning signs: A manager who is gaslighting may exclude their employees from meetings. They may deny them opportunities to present their own work. They may exclude them from networking opportunities, work events, and leadership and development programs. They may gossip or joke about them. Finally, they may create a negative narrative of their performance, seeding it with their peers and senior leaders in private and public forums.

Intervene in the moments that matter.

“Intervening in those moments when gaslighting occurs is critical,” says Dee C. Marshall, CEO of Diverse & Engaged LLC, who advises Fortune 100 companies on diversity, equity, and inclusion strategies. “As a leader, you can use your position of power to destabilize the manager who is gaslighting. By doing so, you signal to the gaslighter that you are watching and aware of their actions, and putting them on notice.”

If you see that a manager has excluded one of their employees from a meeting, make sure to invite them and be clear that you extended the invitation. If a manager is creating a negative narrative of an employee’s performance in talent planning sessions, speak up in the moment and ask them for evidence-based examples. Enlist the help of others who have examples of their strong performance. Document what you’re observing on behalf of the employee who is the target of gaslighting.

Isolate the manager who is gaslighting.

If this manager is gaslighting now, this likely isn’t their first time. Enlist the help of human resources and have them review the manager’s team’s attrition rates and exit interview data. Support the employee who is experiencing gaslighting when they share their experiences with HR, including providing your own documentation.

In smaller, more nimble organizations, restructuring happens often and is necessary to scale and respond to the market. Use restructuring as an opportunity to isolate the manager by decreasing their span of control and ultimately making them an individual contributor with no oversight of employees. Ensure that their performance review reflects the themes you and others have documented (and make any feedback from others anonymous). The manager may eventually leave on their own as their responsibilities decrease and their span of control is minimized. In parallel, work with human resources to develop an exit plan for the manager.

Assist employees in finding a new opportunity.

In the meantime, help the targeted employee find a new opportunity. Start with using your social and political capital to endorse them for opportunities on other teams. In my case, the manager gaslighting me had a significant span of control, and my options to leave his team were limited. He blocked me from leaving to go work for other managers when I applied for internal roles. I didn’t have any leaders who could advocate for me and move me to another team. I was ultimately forced to leave the company.

In some cases, even if you can find an internal opportunity for the employee, they won’t stay. They will take an external opportunity to have a fresh start and heal from the gaslighting they experienced from their manager. Stay in touch and be open to rehiring them when the timing is right for them. If you rehire them in the future, make sure that this time they work for a manager who will not only nurture and develop their careers, but one who will treat them with the kindness they deserve.

During the “Great Resignation,” people have had the time and space to think about what’s important to them. Allowing managers who continue to gaslight to thrive in your company will only drive your employees away. They’ll choose to work for organizations that not only value their contributions, but that also respect them as individuals.

By: Mita Mallick

Mita Mallick is the head of inclusion, equity, and impact at Carta. She is a columnist for SWAAY and her writing has been published in Harvard Business Review, The New York Post, and Business Insider.

Source: How to Intervene When a Manager Is Gaslighting Their Employees

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Related Contents:

How The Power Of Predictive Analytics Can Transform Business

Tableau analytics visual

With the acceleration of digital transformation in business, most CTOs, CIOs, and even middle management or analysts are now asking, “What’s next with data?” and what ongoing role will technology play in both digital and data transformations. Other questions that keep these individuals up at night include:

  • How can people throughout all organizational levels be more empowered to use data and help others make better decisions?
  • What prevents people from more deeply exploring and using data?
  • In what ways can analytics tools and methods help more people use data in the daily routine of business—asking questions, exploring hypotheses, and testing ideas?

With this in mind, plus observations and discussions with many Tableau customers and partners, it seems that today’s circumstances, behaviors, and needs make it the right time for predictive data analytics to help businesses and their people solve problems effectively.

Current realities and barriers to scale smarter decision-making with AI 

With growing, diverse data sets being collected, the analytics use cases to transform data into valuable insights are growing just as fast. Today, a wide range of tools and focused teams specialize in uncovering data insights to inform decision-making, but where organizations struggle is striking the right balance between activating highly technical data experts and business teams with deep domain experience.

Until now, using artificial intelligence (AI), machine learning (ML), and other statistical methods to solve business problems was mostly the domain of data scientists. Many organizations have small data science teams focused on specific, mission-critical, and highly scalable problems, but those teams usually have a long project list to handle.

At the same time though, there are a large number of business decisions that rely on experience, knowledge, and data—and that would greatly benefit from applying more advanced analysis techniques. People with domain knowledge and proximity to the business data could benefit greatly, if they had access to these techniques.

Instead, there’s currently a back-and-forth process of relying on data scientists and ML practitioners to build and deploy custom models—a cycle that lacks agility and the ability to iterate quickly. By the end, the data that the model was trained on could be stale and the process starts again. But organizations depend on business users to make key decisions daily that don’t rise to the priority level of their central data science team.

The opportunity to solve data science challenges

This is where there’s an opportunity to democratize data science capabilities, minimizing the trade-offs between extreme precision and control versus the time to insight—and the ability to take action on these insights. If we can give people tools or enhanced features to better apply predictive analytics techniques to business problems, data scientists can gain time back to focus on more complex problems. With this approach, business leaders can enable more teams to make data-driven decisions while continuing to keep up with the pace of business. Additional benefits gained from democratizing data science in this way include:

  • Reducing data exploration and prep work
  • Empowering analyst experts to deliver data science outputs at lower costs
  • Increasing the likelihood of producing successful models with more exploration of use cases by domain experts
  • Extending, automating, and accelerating analysis for business groups and domain experts
  • Reducing time and costs spent on deploying and integrating models
  • Promoting responsible use of data and AI with improved transparency and receiving guidance on how to minimize or address bias

Business scenarios that benefit from predictive analytics 

There are several business scenarios where predictive capabilities can be immensely useful.

Sales and marketing departments can apply it to lead scoring, opportunity scoring, predicting time to close, and many other CRM-related cases. Manufacturers and retailers can use it to help with supply chain distribution and optimization, forecasting consumer demand, and exploring adding new products to their mix. Human resources can use it to assess the likelihood of candidates accepting an offer, and how they can adjust salary and benefits to meet a candidate’s values. And companies can use it to explore office space options and costs. These are just a few of the potential scenarios.

A solution to consider: Tableau Business Science

We are only at the beginning of exploring what predictive capabilities in the hands of people closely aligned with the business will unlock. AI and ML will continue to advance. More organizations, in a similar focus as Tableau, will also keep looking for techniques that can help people closest to the business see, understand, and use data in new ways to ask and answer questions, uncover insights, solve problems, and take action.

This spring Tableau introduced a new class of AI-powered analytics that gives predictive capabilities to people who are close to the business. In this next stage of expanded data exploration and use, we hope business leaders embrace data to help others make better decisions, and to provide transparent insight into the factors influencing those decisions.

When people can think with their data—when analysis is more about asking and answering questions than learning complex software or skills—that’s when human potential will be unleashed, leading to amazing outcomes. Learn more about Tableau Business Science, what this technology gives business teams, and the value it delivers to existing workflows.

Olivia Nix

Olivia Nix

Olivia Nix is a Senior Manager of Product Marketing at Tableau. She leads a team focused on the use of AI and ML in analytics and engagement, including how to use technology to enable more people in organizations to make data-driven decisions. Olivia has been at Tableau for four years where she has worked closely with development teams on new product launches. Prior to Tableau, Olivia worked as an analyst at the Pew Center on Global Climate Change (now C2ES) and Johnson Controls. She has her MBA from the UCLA Anderson School of Management.

Source: How The Power Of Predictive Analytics Can Transform Business

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Critics:

Predictive analytics encompasses a variety of statistical techniques from data mining, predictive modelling, and machine learning that analyze current and historical facts to make predictions about future or otherwise unknown events.

In business, predictive models exploit patterns found in historical and transactional data to identify risks and opportunities. Models capture relationships among many factors to allow assessment of risk or potential associated with a particular set of conditions, guiding decision-making for candidate transactions.

The defining functional effect of these technical approaches is that predictive analytics provides a predictive score (probability) for each individual (customer, employee, healthcare patient, product SKU, vehicle, component, machine, or other organizational unit) in order to determine, inform, or influence organizational processes that pertain across large numbers of individuals, such as in marketing, credit risk assessment, fraud detection, manufacturing, healthcare, and government operations including law enforcement.

Predictive analytics is used in actuarial science,marketing,business management, sports/fantasy sports, insurance,policing, telecommunications,retail, travel, mobility, healthcare, child protection, pharmaceuticals,capacity planning, social networking and other fields.

One of the best-known applications is credit scoring,[1] which is used throughout business management. Scoring models process a customer’s credit history, loan application, customer data, etc., in order to rank-order individuals by their likelihood of making future credit payments on time.

Predictive analytics is an area of statistics that deals with extracting information from data and using it to predict trends and behavior patterns. The enhancement of predictive web analytics calculates statistical probabilities of future events online. Predictive analytics statistical techniques include data modeling, machine learning, AI, deep learning algorithms and data mining.Often the unknown event of interest is in the future, but predictive analytics can be applied to any type of unknown whether it be in the past, present or future.

For example, identifying suspects after a crime has been committed, or credit card fraud as it occurs.The core of predictive analytics relies on capturing relationships between explanatory variables and the predicted variables from past occurrences, and exploiting them to predict the unknown outcome. It is important to note, however, that the accuracy and usability of results will depend greatly on the level of data analysis and the quality of assumptions.

Predictive analytics is often defined as predicting at a more detailed level of granularity, i.e., generating predictive scores (probabilities) for each individual organizational element. This distinguishes it from forecasting. For example, “Predictive analytics—Technology that learns from experience (data) to predict the future behavior of individuals in order to drive better decisions.”In future industrial systems, the value of predictive analytics will be to predict and prevent potential issues to achieve near-zero break-down and further be integrated into prescriptive analytics for decision optimization.

See also

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