BEST PRACTICE STRATEGIC WORKFORCE/TALENT PLANNING

(SWP)

CHARLES COTTER

20 NOVEMBER 2014

SANDTON CONVENTION CENTRE

Defining Strategic Workforce Planning (SWP)

Diagnosis of current SWP practices

Research-based reality check

Business Case: Strategic imperative and alignment ofSWP

Applying the 6-step SWP process

SCOPE OF PRESENTATION

WFP - GETTING IT “RIGHT”

Inventory of available organizational core competencies?

Inventory of organizational scarce skills?

Mission critical organizational jobs (to enable strategyachievement)?

Critical employee segments (to promote businesscontinuity/sustainability)?

Competitivity and readiness of organizational talent pipeline?

Identification of organizational talent gaps?

CLEAR VIEW?

CURRENT: HRM-BASED WORKFORCE PLANNING ARCHITECTURE

REQUIRED: BUSINESS-BASED SWP ARCHITECTURE

#1: Aligned with organization’s strategic business plans and priorities.

#2: Future-focused, adopting a strategic, medium to long-term forward-looking approach.

#3: Pro-active, sensitive and responsive to (internal and external)environmental change and trends.

#4: Provides accurate and reliable (clear view) talentplanning/management information e.g. available core competencies;scarce skills; critical jobs and employee segments and talent gaps.

#5: Collaborative, well coordinated and partnering effort (HRM has co-opted business partners e.g. line managers to the process).

DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR EFFECTIVE SWP

#6: Integrated (bundled) with other HR value chain processes e.g.Recruitment, Succession Planning, Retention and Leadership Development.

#7: Generates meaningful business intelligence which shapes, informs andinfluences business planning and supports strategic decision-making.

#8: Integrates both scientific (HRM metrics, predictive analytics andstrategy maps) with artistic (planning) principles.

#9: Dynamic - regularly and systematically monitored, reviewed, evaluatedand adapted (committed to continuous improvement processes).

#10: Yields a positive ROI, with tangible/demonstrable outcomes andimpact i.e. creates sustainable HCM competitive advantages

DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR EFFECTIVE SWP

LEVELS OF SWP MATURITY

Although 92% of companies have some level of workforce planning, only 21%take a strategic, long-term approach to addressing the talent demand, talentsupply and the actions necessary to close the gap between the two.

Only 11% of organizations have currently reached Level 3 of Maturity. Only 10% have reached Level 4.

Although best-practice companies align workforce planning as an integral partof their business and financial planning, 67% of companies at every level stillconduct workforce planning on an “as-needed” basis.

Only 25% of workforce plans are effective at helping business leaders forecastrevenue and operating budgets.

Only 27% of workforce planning processes are conducted by recruiting andstaffing departments . The majority of workforce planning processes are ownedby individual business leaders – so they are disjointed from recruiting and evenHRM.

RESEARCH-BASED (BERSIN) REALITY CHECK

“Strategic workforce planning helps organizations understand the talentrequired to deliver their strategy – without it, the costs are significant.” (HayGroup UK)

“A talented and aligned workforce is crucial for bringing strategy to life andensuring an organization delivers on its objectives” (Hay Group UK)

“Bringing together the right information with the right people willdramatically improve a company’s ability to develop and act on strategicbusiness opportunities” (Bill Gates)

“CEO’s expect the Human Resources function to play a much more active rolein enabling business strategies.” (Deloitte, 2013)

“A company’s employees are its greatest asset and your people are yourproduct .” (Richard Branson)

THE STRATEGIC IMPERATIVE OF WORKFORCE PLANNING

S CANNING

P ROFILING

A NALYZING

D EVELOPING

I MPLEMENTING

C ONTROLLING

SWP: S-P-A-D-I-C PROCESS/CYCLE

Reviewing current HRM and organizational strategies(Strategic Direction and Intent)

Conducting an environmental scan

Identifying workforce trends and challenges

Benchmarking

Preferred Scanning tools – SWOT and PESTEL Analyses

STEP 1: SCANNING – STRATEGIC ANALYSIS

Forecasting HR Demand (Futuring)

Measuring Current Supply

STEP 2: PROFILING

"Futuring is the field of using a systematic process for thinking about,picturing possible outcomes, and planning for the future. Futurists arepeople who actively view the present world as a window on possiblefuture outcomes. They watch trends and try to envision what mighthappen.“ (Kirkwood, 2011)

Futuring is a broader concept than the forecasting traditionally donein Workforce Planning and enables organizations to look at the futurein four different ways (Cillie-Schmidt, 2013):

The possible future - what could happen? The plausible future - what could realistically happen? The probable future - what is likely to happen? The preferred future - what we want to happen?

FUTURING

Forecasting should consider the past and the presentrequirements as well as future organizational directions

Number of employees

Type of employees

Skills requirements of these employees

Consider and assess the challenges and constraints

Preferred Scanning tools –”What If” and Scenario Planning

FORECASTING HR DEMAND

Assess the current HR capacity of the organization by means ofthe Skill inventories/audits method

The knowledge, skills and abilities of your current staff need to beidentified

Employee experience, education and special skills

Certificates or additional training should also be included

A forecast of the supply of employees projected to join theorganization from outside sources

HRM indicators, metrics and indices e.g. turnover rates

MEASURING CURRENT SUPPLY

STEP 3: ANALYZING –RECONCILING/GAP ANALYSIS

STEP 4: DEVELOPING – STRATEGIC HRM ACTION PLANS

Develop and initiate a Resourcing Strategy

Matching strategy (intervention) with scenario (surplus or deficit)

Action plan-based implementation methodology

STEP 5: IMPLEMENTING -INTERVENTIONS

HRM ACTION PLAN (INTERVENTION) TEMPLATE

Tracking implementation progress – monitoring, measuringand evaluating

STEP 6: CONTROLLING

SWP – getting it “right”

HRM requires a clear view

The strategic imperative of SWP

Alignment of SWP and business strategy

Application of best practice principles

Application of 6-step SPADIC SWP process

LEADERSHIP LESSONS: “TAKE-AWAYS” – SWP AND ALIGNMENT

CHARLES COTTER

084 562 9446

charlescot@polka.co.za

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TWITTER: Charles_Cotter

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