Your people are the heartbeat of your organization. Choosing the right people for the right positions at the right time in your organization is one of the most important decisions you can make – and it is a decision that has an exponential impact on the performance of your organization. Improving the information and tools you use to make the right people decisions for your organization is critical to you.
One way we do this is by using a customizable decision-making model that helps identify the likelihood of an individual’s future behavior, which will fall within a range of acceptable performances based on their past performance in a number of areas. In the world of science and technology, this is known as using predictive analytics to statistically model future performance.
Here are the best five ways to use risk scoring models for your organization:
Increasing Productivity and Profitability
- One of the most significant advantages to using decision-making models is to exponentially improve productivity and profitability. Processing hundreds of thousands of applications in an hour is nothing for a decision-making model, whereas only a handful of applications could be properly processed by a human being.
Decisions Are More Consistent
- A second key advantage to using decision-making models is to make your decisions more consistent. By automating the decision-making process, you can be sure that the same methodology is used over and over, each time an application is processed. The decision making model can even consider factors like:
- Acceptable criminal past (i.e. non-violent misdemeanors involving speeding)
- The particular position (i.e. accounting department, factory floor or elder/child care)
- The place you are considering putting a person (i.e. Class A or Class B apartment unit/complex)
- Types of claims that have been filed by (i.e., eviction notices, tax liens, bankruptcies)
Making Your Decisions Impartial
- A third advantage to using decision-making models is to make your decisions impartial. Decision making becomes largely objective and impartial. Thus, unintended discrimination based on subjective or unwanted factors (for example – race, ethnicity, age, gender, etc.) can be reduced to insignificance if not altogether eliminated.
Customizing Your Decision Making Model
- The key advantage to our decision models – customizability. While scoring models are not unique – we are all accustomed to looking at our credit score to understand whether we can and what it will cost us to go out and purchase a house – client customizable decision-making models are certainly less discussed and less understood as a result. With a client-designed decision-model, a multitude of factors can be built into the decision and those factors can be adjusted to the risk comfort and the business model of your organization.
- The final valuable differentiator is the way that we report the results to you. You do not simply see one final “numeric score” and recommendation. Rather, you see the results of each input that goes into the decision so that you can understand what gave rise to the output of the decision making model (i.e. the score and the recommendation). This empowers your organization to explain the results to the applicant or even to over-ride the results where your business model allows for it.
For more information on improving your decision making with risk scoring models, check out our upcoming webinar – http://bit.ly/RiskScoring