The MTP Business Learning Blog

This blog is produced by MTP for senior professionals highlighting relevant and interesting books and articles on business, finance and strategy, and the opportunity to comment on them. It also contains news of MTP and its clients and, from time to time, extracts from MTP publications.

Thursday 15 May 2014

Big Data

‘Big Data’ by Jonathan Kettleborough, Training Journal, April and May 2014

I am reviewing here the two articles that have appeared in the Training Journal these last two months and will follow up with a further review when the third one is published next month.  I chose the topic because, as the first article admits, ‘Big Data’ is one of the latest corporate buzzwords, usually linked to ‘analytics’, which seems to be a fancy word for analysis.  I was interested to see how the author would make a connection with Learning & Development.

The first article defines what is meant by ‘Big Data’; it is a way of describing the vast increase in information available due to improved technology.  Useful examples are retailers’ information on customers’ buying habits, the vast number of Facebook entries and the US Government’s spying capability.  The author quotes the ‘three Vs’ that have increased the power of information available – Volume, Velocity and Variety.  He also makes a good point that there are two other Vs that have to be in place to make the information useful – Validity and Value.

The link to Learning & Development is made by the author’s suggestion that we can use such data to improve decisions; he quotes Michael Lewis’s book ‘Moneyball’ (reviewed in anearlier blog) – as an example of this principle being applied to the discovery of talent.  But, rather less convincingly, he quotes a similar approach being used by the – maybe soon to be sacked - Sam Allardyce, manager of West Ham United!  His parallel argument in an L&D context is that we have much more data than we realise – recruitment, performance reviews, staff turnover, absentees etc - and we should be using this to highlight trends and issues.

He quotes examples of companies using such data to discover that their past assumptions about recruitment effectiveness have been completely misguided.  An anonymous example of a financial services company was not convincing but the experiences of Google, Sprint and Cisco were; they were apparently able to predict which employees were most likely to leave from the analysis of all the data from their CV and employment records.

This brought an end to the first article and my reaction at that stage was one of scepticism; I am no statistician but I do recall from studies many years ago that correlation is not causation and it is highly dangerous to assume so.  And, to give credit to the author, this is exactly what he addresses in the second article.  The problem however is that he does so in a rather ponderous and patronising way.  First he labours over the fact that an average in a survey does not mean that every respondent has that same number; then he goes on at great length about the dangers of making wrong assumptions from correlations.

He also makes the other valid point which those of us who are interested in politics will know – that people will focus on the interpretations of statistical data that match their own misconceptions.  He calls it ‘data blindness’; I would call it confirmation bias.  We seek and select data that matches our prejudices, sometimes unconsciously, sometimes deliberately. 

Again the author is guilty of repetitive and patronising content as he tells us how business success, at individual or corporate level, might be correlated to investment in L&D but this does not necessarily mean that the investment drove the success.  He was right to stress this obvious point – which is not always understood by those who provide simplistic solutions to course evaluation – but not to labour it to such an extent; it was more or less the only message in the second article.  He does make a brief reference to the more advanced analysis techniques which work on multiple correlations but does not take this further.  

In the final article, he promises to look at the ramifications for L&D and the potentially ‘dark areas’.  I will be hoping for more challenging content to convince me that Big Data is a major issue for L&D professionals.

Read the articles in full here;

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