Decision Support Systems and Intelligent Systems 7th Edition by Efraim Turban

By Efraim Turban

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Ice cream sales and murder rates leap together in the dog days of summer. We like Cascio and Boudreau’s three-part criteria of causation:7 1. Two events must show a clear and statistically significant connection, 2. One event must precede the other, and 3. All other plausible causes must be ruled out. We view the final stage as optimization, the holy grail of HR measurement. Optimization is having the intelligence to understand where the impact is occurring. Optimization is intimately wrapped up with causation.

In our opinion, benchmarking needs to be taken with a grain of salt, perhaps several grains of salt. First, our experiences in understanding and acquiring corporate data have been humbling; understanding accurately the data within one company is quite enough of a job some days. Tying together data from a variety of different companies does not produce a feeling of confidence. Take turnover, for example. 6 Our experience tells us that identifying the nature of the turnover is crucial to corporate strategy, and this information may not be available or similar between companies.

By initiating this type of crossfunctional gathering, HR can play a role in breaking down organizational silos and encouraging collaboration among business units. Stakeholder alignment is best sought at the outset of planning for an investment. Even if you did not get stakeholder alignment before deploying the investment, stakeholders’ participation in developing a measurement plan is still essential to successfully evaluating business impact. Stakes are high simply because people in complex organizations have different points of view and biases.

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