Royal Bank of Canada: Using People Strategy and Analytics To Drive Employee Performance (A)
This case discusses how the leaders of the Royal Bank of Canada infused the 80,000-employee company with a new emphasis on People Analytics. This supported the bank’s business strategies for its wide range of business units. The bank’s new People Analytics group, led at the top by the vice president of human resources, collected and analyzed huge volumes of data about the bank’s employees, customers, and business unit performance to help the company achieve its strategic goals. Companies across industries had long talked about using data analysis to help them improve employee and organizational performance, but the advent of big data created a step change in the ability to make that happen.
With the abundance of data available, and many potential ways to use it, the Royal Bank of Canada, referred to as RBC, was choosing projects that had the greatest potential ROI. The People Strategy and People Analytics teams worked together to add clear business value to business units to help them achieve performance objectives.
The case details two of RBC’s major People Analytics projects. The first project used data to identify empirically the traits of great managers and subsequently identify who might or might not be a great manager. This enabled RBC to help those managers who could benefit from coaching or other types of interventions. The second project used both internal and customer data to diagnose whether any specific branch, region, or product innovation was not doing as well as it could be—and why not.