Predictive Modeling - An Ounce of Prediction
Given Pitney Bowes’ success at reining in health-care costs, Hom is launching a predictive-modeling project outside the realm of health benefits. This time, the company will use the technology to comb through data on the company’s benefit options (such as 401(k) plans and insurance elections), customer satisfaction scores, employee survey results and individuals’ performance ratings. The goal is to identify the benefits that are most closely correlated with profitability and external customer satisfaction. "It’s kind of Star Wars stuff," says Catherine McCabe, a health-care consultant with Mercer Human Resource Consulting.
Pitney Bowes is well-equipped to venture into Star Wars territory because it undertakes new predictive-modeling projects with a clear understanding that they’ll be long-haul propositions. "Patience is a big virtue," says Mahoney. "You have to be able to stay with something long enough to see results."
