Developing Organizational Talent: Why data is key for maximizing returns
Data trumps intuition
In 2002, the general manager of the Oakland A’s, Billy Beane, forever changed how baseball teams are built. After losing some of their star players to free agency and having a mere fraction of the salary cap allotted to top echelon teams like the New York Yankees, Beane realized that if he wanted to assemble a competitive baseball team, he’d have to do so without top-tier talent.
His approach revolutionized the baseball world. It centered on using data – quantitative metrics for players’ performance – which allowed him to uncover value that was overlooked by everyone else. Cold, hard data, as it turns out, serves as a better guide to understanding a player’s value than scouting intuition.
Playing organizational ‘Moneyball’
This story, popularized in the blockbuster movie Moneyball, is not all too dissimilar to building and managing an organization: companies are tasked with allocating scarce resources (talent) in a way that maximizes value to the company. Organizations can imitate Beane’s Moneyball strategy by using data to better map talent to value – but it’s not just about what data you collect. It’s about how you use it.
Organizations now have the ability to collect data every bit as objective as RBIs (runs batted in). Key performance indicators (KPIs) give a high-level evaluation of a company’s success, and these can be broken down into ever more discrete tasks that comprise the productive work in an organization. Data-driven insights on individual employees can be gleaned from personal assessments or behavioral experiments that more accurately elicit their preferences, interests and attributes.
When used effectively, data can create a better alignment between organizational roles and employees’ skills and interests so that everyone has an opportunity to thrive.
References
- Barriere, M., Owens, M., & Pobereskin, S. (2018). Linking talent to value. McKinsey & Company. Retrieved May 5, 2022, from https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/linking-talent-to-value
- Peter, L. J., & Hull, R. (1970). The Peter principle. New York: Bantam.
About the Authors
Ryan McPhedrain
Ryan is currently pursing his PhD in neuroscience at McGill University, focusing on the molecular and cellular mechanisms of neural plasticity in the developing brain. His main interest is in applying behavioural frameworks to guide interventions that enhance mental health and wellbeing. A staunch advocate for data-driven solutions, he seeks to leverage data science and machine learning tools to improve behavioural outcomes in digital health and finance. He has also participated in McGill-affiliated science outreach campaigns, giving presentations on neuroscience topics for high school students and answering publicly-sourced neuroscience questions. In his spare time, Ryan can be found enjoying a good book, playing various sports like hockey, volleyball and tennis, or simply getting lost in nature.
Dr. Sekoul Krastev
Sekoul is a Co-Founder and Managing Director at The Decision Lab. He is a bestselling author of Intention - a book he wrote with Wiley on the mindful application of behavioral science in organizations. A decision scientist with a PhD in Decision Neuroscience from McGill University, Sekoul's work has been featured in peer-reviewed journals and has been presented at conferences around the world. Sekoul previously advised management on innovation and engagement strategy at The Boston Consulting Group as well as on online media strategy at Google. He has a deep interest in the applications of behavioral science to new technology and has published on these topics in places such as the Huffington Post and Strategy & Business.
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