Take Your Workforce Planning to the Next Level

ACHIEVE TALENTMANAGEMENT SUCCESS

Copyright © 2008. Korn/Ferry International and Korn/Ferry International Futurestep, Inc. All Rights Reserved.

Workforce PlanningWorkforce PlanningApril, 2009April, 2009



Agenda

Relationship between Talent Management & WFP What is WFP A recent study from Bersin/TNG Building a WFP model ground up WFP Capability & Ownership WFP Maturity model Technology Landscape Tips for Implementation



What is Driving The Need For Talent Management?

Agriculture

Age

Industrial

Age

Knowledge

Age

Talent

Age



Talent: a critical component of the Business Strategy

BUSINESS STRATEGY

OperationsFinancialSales &

MarketingTalent

Aligning Talent Management With Business Strategy Results from Answering and Resolving Fundamental Questions:

1. How does our business strategy influence our current and future workforce?

2. What skills do we need to drive our strategy?

3. How do we transform our workforce and what changes to HR delivery systems, policies and procedures need to occur?

4. How do we compete more effectively for external talent in the midst of a skills and labor shortage?

5. How do we engage and develop our workforce in alignment with our business strategy?

6. Do we have effective system enablement and integration that allows us to quantify the resulting impacts to our business strategy?

Right People at the Right Time in the Right RoleAt the Most Economical Cost



Components of Talent Management

INTEGRATED TALENT MANAGEMENT

PerformanceManagement

Workforce Planning

Talent AcquisitionOrganizationDesign

Succession PlanningCompensation

PlanningLearning &

Development

Competency Management

System Enablement

Strategy

Process

DNA

Scalability



The Vision of integrated TM driven by WFP

Talent Strategy and Planning as derived from your WFP

Silos execute processes in accordance with strategy

Coordination between functions, inputs and outputs

HR Systems must communicate Competency management is the

common language All HR functions operating in

alignment with the business strategy

Bersin Associates, 2008 Talent Management Factbook



What is Workforce Planning?

Workforce Planning is the process that Workforce Planning is the process that provides strategic direction to talent provides strategic direction to talent management activities to ensure an management activities to ensure an

organization has the right people in the organization has the right people in the right place at the right time and at the right place at the right time and at the

right price to execute its business right price to execute its business strategystrategy



The Newman Group recently partnered The Newman Group recently partnered with Bersin & Associates to survey what with Bersin & Associates to survey what

the Workforce Planning Landscape the Workforce Planning Landscape looks like today looks like today



Workforce Planning in Crisis Mode

67% of companies conduct workforce planning on an “as needed” basis…

Relocation Mergers and acquisitions Change in leadership Change in company strategy Global expansion Diversifying the workforce



Top Challenges in Workforce Planning



Key Findings in Workforce Planning

The majority of organizations are ineffectual at predicting future talent demands.

Workforce planning fails when it is viewed as an HR issue rather than a business issue.

The industries most heavily impacted by aging talent are also the same industries placing a heavy priority on strategic workforce planning.

Strategic workforce planning will not happen overnight



Key Findings in Workforce Planning

Organizations need a more consistent approach to workforce planning.

Understanding talent gaps is imperative to the success of a workforce planning process.

Recruiting and staffing currently play a small role in workforce planning.

Technology can improve the workforce planning process for

any company at any level of maturity in workforce planning.



Identifying Talent Gaps



Why is it so hard to get WFP off the ground?

Because it comes at you from the top down But you need to build from the ground up



Breaking it all down…Breaking it all down…As with building any house… you first As with building any house… you first need to visualize and agree upon the need to visualize and agree upon the

schematicschematic



Building the foundation ~ DataRequires you to build processes that stabilize the data Integrate & normalize data from various platformsEnsure you are gathering the right level of information that will translate into ‘intelligence’Utilize any company/industry benchmark data to help you set KPI’s

Mining Internal & External Data Basement Level

City

Internal data warehouses or systems such as: HRMS, Financial Systems, ATS,

LMS, etc.

Environmental Trends such as: Competition, Labor supply, demographics, etc.



Environmental Trending adds perspective



Ensuring a Consistent Process

WFP ObjectiveForecastDemand

EvaluateSupply

Analyze Gaps Manage Gaps

Consistent Workforce Planning Methodology Level 1

EXITTM Strategy



Focusing on the most critical versus boiling the ocean

Target Critical Talent Sets

LeadershipLeadership RolesRoles

BenchBench RolesRoles

FunctionalFunctional ExpertiseExpertise

IndustryIndustry ExpertiseExpertise

Upper Levels



WFP ObjectiveForecastDemand

EvaluateSupply

Analyze Gaps Manage Gaps

Business Strategy

Consistent Workforce Planning Methodology

Mining Internal & External Data

Operational Effectiveness

Target Critical Talent Sets

LeadershipLeadership RolesRoles

BenchBench RolesRoles

FunctionalFunctional ExpertiseExpertise

IndustryIndustry ExpertiseExpertise

Operational & Strategy Drivers

Business Strategy and Operating Model

Knowledge Transfer

Age/ Retirement Analysis

Retention Management

Capability Management

Mergers & Acquisitions

Headcount Forecasting

Diversity Strategy

Level 1

Basement Level

Upper Levels

Window Views

EXIT

Strategic Planning Lens: 18+ months

Restructure or Expansion

City

TM Strategy

Internal data warehouses or systems such as: HRMS, Financial Systems, ATS,

LMS, etc.

Environmental Trends such as: Competition, Labor supply, demographics, etc.

Operational Lens: Typically annual

Environmental

Influences


Workforce Planning Drives Talent Management



So the question now isSo the question now is WHOWHO can build can build this house?this house?



Does HR Have the Right Capabilities?

“The biggest risk is that you get a model maker, rather than someone who can genuinely add value to the business.”

--Recent quote from a senior business leader

Source: Corporate Leadership Council 2009



COE Framework

Talent Management based on Applied Intelligence

Str

ateg

yS

trat

egy

Bra

nd

Bra

nd

Str

uct

ure

Str

uct

ure

Pro

cess

Pro

cess

Tec

hn

olo

gy

Tec

hn

olo

gy

HR Business Partners

Shared Services

Work as strategic partners Work as strategic partners with the business utilizing with the business utilizing Talent Intelligence to drive Talent Intelligence to drive their business strategies their business strategies

Focus on the transactional Focus on the transactional WFP tasks such as standard WFP tasks such as standard

reporting and providing reporting and providing meaningful information meaningful information

through ad-hoc reportingthrough ad-hoc reporting

Workforce Planning COE Specializes in Turning Talent Specializes in Turning Talent Information into Talent Information into Talent IntelligenceIntelligence

You don’t have to make everyone in HR an expert at WFP



Who Owns the Process?



That’s fine, but still seems like a lot for That’s fine, but still seems like a lot for anyone to accomplish. What are the anyone to accomplish. What are the

various levels of workforce planning and various levels of workforce planning and tools being used?tools being used?



Workforce Planning Maturity Model

Business PlanBusiness Plan& Headcount& Headcount

DataData

Traditional WFPTraditional WFP

Situational WFPSituational WFP


DataData

DataDataRelationshipsRelationships


DataData


Business Business StrategyStrategy

Workforce AnalyticsWorkforce Analytics

Scenario ModelingScenario Modeling

Strategic Strategic Workforce PlanningWorkforce Planning

Incr

ease

d le

vels

of

WF

P c

om

ple

xity

Incr

ease

d le

vels

of

WF

P c

om

ple

xity

Wo

rkfo

rce

Seg

men

tati

on

Wo

rkfo

rce

Seg

men

tati

on

Increased data points for analysisIncreased data points for analysis

BasicBasic

IntermediateIntermediate

AdvancedAdvanced



Basic: Traditional WFP


DataData

Traditional WFPTraditional WFP

The most commonly used workforce planning process is a traditional The most commonly used workforce planning process is a traditional approach focused primarily on headcount trending. Through the analysis of approach focused primarily on headcount trending. Through the analysis of current vs. forecasted headcount, a company is able to determine it’s talent current vs. forecasted headcount, a company is able to determine it’s talent

gaps against the budgeted headcount in the business plangaps against the budgeted headcount in the business plan

BasicBasic



Sample Headcount Report



Basic: Situational WFP


DataData

Situational WFPSituational WFP

Situational workforce planning is a basic model that is similar to the Situational workforce planning is a basic model that is similar to the Traditional workforce planning in that it analyzes the variances between Traditional workforce planning in that it analyzes the variances between actual vs. needed headcount. However, this model is used as a one-time actual vs. needed headcount. However, this model is used as a one-time

approach to address a specific business challenge (e.g. merging companies, approach to address a specific business challenge (e.g. merging companies, relocating an office)relocating an office)

BasicBasic



1/1 1/7 1/14 1/21 1/28 2/4 2/11 2/18 2/25 3/3 3/10 3/17 3/24 3/31 4/7 4/14 4/21 4/28

DHS Yes 2 mo 2 1 1

DOD No 1 mo 1 1

HHS Yes 1 mo 10 5 5

USDA Yes 1 mo 7 3 4

Treasury Yes 1 mo 1 1

DHS Yes 2 mo 1 1 5

OPM Yes 4 mo 15

DOI TBD 2 mo 10 5 5

HHS Yes 2 mo 1 1

OMB Yes 3 mo 30 10 5

SSA Yes 1 mo 15 5 5 5

DOD Yes 1 mo 13

DHS Yes 1 mo 12 12

Intell - client 1 Yes 1 mo 1 1

Intell - client 2 Yes 1 mo 14 7 7

Treasury Yes 3 mo 12 6

State Yes 1 mo 16 4 4 4

OMB TBD 1 mo 3 3

DOT Yes 3 mo 5 5

DOJ TBD none 3 3

DOE Yes 1 mo 17 5 5 5 2

ED Yes 2 mo 5

DOD Yes 2 mo 22 10

DHS Yes 1 mo 13 10 3

HHS Yes none 1

Total 230 0 0 1 2 5 9 3 30 5 27 5 25 5 9 16 5 14 3

SystemsArchitect

ProjectManagers

Developers (Security

Assurance/IT)

Network Management

JDReady?

Trg w/Exiting EE

#Needed

Occupational Groups

AgencyNeeds

January February March AprilClient

Sample Prioritization Schedule



Intermediate: Workforce Analytics


DataData

Data Data RelationshipsRelationships

Workforce AnalyticsWorkforce Analytics

Workforce Analytics moves the Workforce Planning model to an intermediate Workforce Analytics moves the Workforce Planning model to an intermediate level by engaging in heavier quantitative data analysis. This approach goes level by engaging in heavier quantitative data analysis. This approach goes

beyond headcount analysis to example relationships between key data beyond headcount analysis to example relationships between key data variables such as; employee demographics, cost, turnover, performance, variables such as; employee demographics, cost, turnover, performance,

etc.etc.




Ordinary Metrics & Measures with WFP Lens

Turnover–Typically we look at Voluntary vs. Involuntary–Focus is on reducing voluntary

Performance Ranking–Typically 5 point rating scale–Often a forced distribution

By looking at turnover data by performance category, you can create a Retention Index–Comparing the average turnover rate to the rate of turnover

within a specific category



Retention Index

Performance Category

Performance Rank All

Far Exceeds Exceeds Meets

Needs to Improve

Does not

meet

# Employees 6500 300 1300 3500 1000 400

Total Turnover 1625 75 450 600 200 300

Turnover % 25% 25% 35% 17% 20% 75%

Retention Index 0% -10% 8% 5% -50%

Talent Leak

Formula: Ave Turnover % – Ave Turnover % in Demographic = Retention Index



Retention Index

Employee Tenure

Tenure AllMore

than 1511-15 years

5-10 years

1-4 years

Less than 1 year

# Employees 6500 300 1300 3500 1000 400

Total Turnover 1625 25 200 700 550 150

Turnover % 25% 8% 15% 20% 55% 38%

Retention Index 17% 10% 5% -30% -13%

Talent Leak

Formula: Ave Turnover % – Ave Turnover % in Demographic = Retention Index



Intermediate: Scenario Modeling


DataData


Scenario ModelingScenario Modeling

Scenario Modeling also utilizes a heavier quantitative approach found in Scenario Modeling also utilizes a heavier quantitative approach found in Workforce analytics. However, the difference here is in layering in qualitative Workforce analytics. However, the difference here is in layering in qualitative ‘what if’ situations that test data relationships and make projections that are ‘what if’ situations that test data relationships and make projections that are

more accurate and fine-tuned.more accurate and fine-tuned.




Scenario Modeling Example

CurrentWorkforce Plan

Industry Trends

Political Developments

Labor Changes

New Business Strategies

FutureWorkforce Plan Impact


DataData


DataData

‘‘What if’ What if’ situations that situations that

could impact the could impact the workforce plan workforce plan



What if?What if?

Chime North Phone company divested it’s Home Phone and Mobile Phone Call Center Departments.

Example: Company Divestiture Scenario



Advanced: Strategic Workforce Planning


DataData


Business Business StrategyStrategy

Strategic Strategic Workforce PlanningWorkforce Planning

Strategic Workforce Planning is the most advanced approach because it is Strategic Workforce Planning is the most advanced approach because it is more integrated into the organization’s business and financial planning more integrated into the organization’s business and financial planning

processes. This enables organizations to have a talent plan that is aligned processes. This enables organizations to have a talent plan that is aligned with the business strategy, thus guiding more informed business with the business strategy, thus guiding more informed business

decisions.decisions.

AdvancedAdvanced



Sample Leader Insight Meeting Questionnaire

SPU Leader Insight MeetingWhat are your greatest workforce risks/concerns?

What are your expectations from a workforce plan?

How would you define the success of a workforce plan?

What talent information do you need to make strategic decisions?

Who are the key stakeholders in your area we need to speak with?

What financial information do you need to make strategic decisions?

Is the information you need readily available to you?

Validation of talent data

What is the average spend (by discipline) in your workforce?

Do you feel the average spend by discipline is a strength/concern?

Do you have the right talent mix? (FTE, Contract, ExPats, Nationals)?

Is this role difficult to source in the marketplace?

What roles are essential to managing the contract spend for your area?

What roles are essential to managing the contract spend for your area?

What are your training needs talent effectiveness? (internal, external)

Individual action plans for each SPU

to close the gap

BuildDevelopment for internal talent

movement

BuyAcquire talent externally

BorrowAugment headcount with

contract or temporary labor

BouncePlanned attrition



Workforce Segmentation

Wo

rkfo

rce

Seg

men

tati

on

Wo

rkfo

rce

Seg

men

tati

on

Workforce Segmentation is taking the larger Workforce Plan and breaking it Workforce Segmentation is taking the larger Workforce Plan and breaking it down into components (segments, job families) that have more strategic down into components (segments, job families) that have more strategic

importance. This allows organizations to analyze the dynamics, needs and importance. This allows organizations to analyze the dynamics, needs and motivations of the critical roles, thus investing their resources more motivations of the critical roles, thus investing their resources more

strategically. strategically.



Workforce Segmentation Example

Source: The Conference Board “Strategic Workforce Planning, Forecasting Human Capital Needs to Execute Business Strategy”; via Corning Incorporated

BuildBuild

ProtectProtect

Streamline/ Streamline/ OutsourceOutsource

RedirectRedirect

Roles that affect the strategy

Roles affected by the strategy

Strategic

Critical to driving long-term competitive advantage, with specialized skills or

knowledge

Core

The “Engine of the Enterprise,” unique to the company and core to delivering on its

products and/or services

Requisite

Cannot do without, but whose value could be delivered through alternative staffing

strategies (e.g. off-shoring, outsourcing, replace w/technology)

Non-Core

Talent whose skill sets no longer align with the company’s strategic direction

Incr

ease

d in

vest

men

tIn

crea

sed

inve

stm

ent

Potential Strategic Action

Talent Segment and Value



Technology Solutions Landscape

ERPERPPure PlaysPure Plays ATSATS LMSLMS AnalyticsAnalytics EmergingEmergingPlayersPlayers

PerformancePerformanceManagementManagement

In House In House SolutionsSolutions

Exa

mp

le P

rovi

der

s



Tips for implementation

Identify the Identify the Business case & Business case &

Sponsors for Sponsors for WFPWFP

Identify Identify Core Core

Planning Planning TeamTeam

Define Define Success Success MeasuresMeasures

Engage Engage Stakeholders Stakeholders

for for Qualitative Qualitative

and and Quantitative Quantitative

inputsinputs

Pilot thePilot the WFP WFP

efforts in efforts in smaller smaller

divisions divisions to tweak to tweak

as neededas needed

Workforce Planning WorkshopsWorkforce Planning Workshops



General Q&A

Thank you for attending

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Email: [email protected]

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