www.henley.reading.ac.uk18 May 2013Executive Education – Centre for HR ExcellenceAligning Resourcing Strategy withBusiness...
• Co-director of the HR Centre at Henley Business School since2010 – research, events, programmes, networking, consulting•...
• HR functions are talking ‚strategic workforce planning‛ (SWP)an awful lot• Push for SWP from Boards, regulators, investo...
4ContextWe fail to adequately connect SWP and the business agenda
5To employees To regulatorsTo customersTo investors& analystsTo shareholdersAt the heart of strategy lie promises
But what makes your CEO confidentthat these promises can be delivered?Leaders areproficientat gaugingexternal riskBut how ...
A business strategy without thecorresponding organisationalcapability will likely bedelayed, diluted or blockedAfter all, ...
Internal &externalcontext(Business)Internal &externalcontext(People)Market capitalisation / Business valuationConfidence o...
9ApproachWe build spreadsheets not insight
10Connecting strategy & executionThe workforce planning funnelBuild, Buy, Retain, Redeploy PlansStrategicWorkforcePlansOpe...
11Coming at it from thisdirection just gives youbigger spreadsheets andthe illusion of accuracyIn practice, oftenget an im...
12The 5 key SWP elementsWhat are thepeopleimplications ofthe strategy?How does thissit alongsidewhat we have?What are the(...
On timeDeliveryWhen data good enoughWorkforceplansBased initially on judgement of macro dataRefining & updating as we know...
14CapabilitySWP is one of the only things going from Digital to Analogue!
• Strategic Workforce Planning does not give you nice neatnumbers – if it does, they will be wrong anyway• It is a ‘flexib...
16Key SWP capabilitiesTolerance ofambiguityComfortworking withmacro dataOD & diagnosticskillsJudgement &deductive skillsAp...
• Are you connecting SWP into the business risk agenda?• Are you working sufficiently ‚upstream‛, or are you just trying t...
18Questions?
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Building capability 2013 - Aligning resourcing strategy with business strategy, Nick Kemsley

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Nick Kemsley's presentation from our 2013 Building Capability Conference

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  • You see, to maximise the chances of success, TWO things are needed. A business strategy alone is not enoughHow many of your organisations have a strategy? Pretty much every organisation does, and if your competitors operate in similar markets with similar products and similar customers – their strategy may well be very similar to that of your own organisation – so what is it that makes one organisation win out over others? Do you really think that yours is the only organisation with clever people having sensible ideas? It’s organisation which is key– the ability to translate, deploy and execute strategy THROUGH organisation quicker, cheaper and at higher quality. To put the organisation UNDER the strategy at the right time in the right way to deliver the promises you have made. In a world where strategy is a constant, organisational capability is the differentiator.Therefore, it follows that a good and up-front awareness of the critical people and organisational risks associated with the strategy – is critical to competitive advantage
  • Proper application of organisational capability and risk thinking allows value to flow most effectively through an organisation – making it efficient and integrated in the delivery of strategy.Think of this picture initially as a sandwich, where the organisational capability and risk layer is the filling! It is what cements together what are often two conversations which are often only partially connected. The first is a strategy creation and financial planning conversation, which makes the promises and sets the medium term financial parameters. The second is a load of “stuff” – activity happening in the organisation which may be sub-optimal in terms of prioritisation and alignment. The assumption here is that when the strategy is agreed and communicated, work can start on delivering what is needed to support it – fine if you are not planning anything new, but possibly an issue if something comes up which you didn’t consider a riskAn appropriate consideration of organisational capability and risk allows the strategy process itself to be better informed, releasing value through supporting decision making between strategic options, creating confidence and identifying key risks in time to do something about them – rather than waiting until it’s too lateEqually, it puts something in the middle of the table against which to filter your activity and align your processes and supply chain. In an environment where you must justify any support function cost, you have the opportunity to make sure that, as a minimum, you have the critical organisational risks covered, and have a blueprint against which to tweak or re-align your downstream pipeline
  • Building capability 2013 - Aligning resourcing strategy with business strategy, Nick Kemsley

    1. 1. www.henley.reading.ac.uk18 May 2013Executive Education – Centre for HR ExcellenceAligning Resourcing Strategy withBusiness StrategyNick KemsleyCo-director of Henley Business School’s HR CentreOwner of Org-onomic Ltd
    2. 2. • Co-director of the HR Centre at Henley Business School since2010 – research, events, programmes, networking, consulting• Also run my own business• Work with Boards, SMTs and HR functions all over the world onorganisational capability and risk and HR effectiveness• Corporate career across six industry sectors for a variety oforganisations including Mars, BOC, Prudential, Rolls-Royce• Have run OD, Resourcing, Leadership, Talent, L&D, Performanceat global and regional level• Worked first half of career in wider business roles2Brief introduction
    3. 3. • HR functions are talking ‚strategic workforce planning‛ (SWP)an awful lot• Push for SWP from Boards, regulators, investors and analysts.The ‚How‛ of strategy and share price/market confidence• Push from efficiency standpoint• Yet very few businesses are gaining proper value from strategicworkforce planning• Why is this? – going to explore how 3 things make thedifference……Context, Approach and Capability3SWP – where are we?
    4. 4. 4ContextWe fail to adequately connect SWP and the business agenda
    5. 5. 5To employees To regulatorsTo customersTo investors& analystsTo shareholdersAt the heart of strategy lie promises
    6. 6. But what makes your CEO confidentthat these promises can be delivered?Leaders areproficientat gaugingexternal riskBut how welldo theyunderstandinternal risk?Do they understand what the strategy means inpractice, and where the risks to its delivery lie?6
    7. 7. A business strategy without thecorresponding organisationalcapability will likely bedelayed, diluted or blockedAfter all, every organisation has a strategy – so what isgoing to make you more successful than them?Understanding peopleand organisational risksassociated with yourbusiness strategy iscritical to competitiveadvantageOrganisational capability and risk7
    8. 8. Internal &externalcontext(Business)Internal &externalcontext(People)Market capitalisation / Business valuationConfidence of shareholders, investors etcBusiness strategy and longer-termfinancial planning processesOrganisational capability/risk/SWPHR functional strategiesOperational planningPeople processmanagementSuppliers &systemsEmployerbrandInternal &externalcontext(Business)Internal &externalcontext(People)Connects thestrategy andactivityconversations, supportinggrowth ANDefficiencyValue released• Strategy refined• Budgeting• Confidence• Risk mgtValue released• Prioritisation• Alignment• Efficiency• Engagement• FocusSWP connects two key conversations8
    9. 9. 9ApproachWe build spreadsheets not insight
    10. 10. 10Connecting strategy & executionThe workforce planning funnelBuild, Buy, Retain, Redeploy PlansStrategicWorkforcePlansOperationalPeopleProcessesBusinessStrategy &ContextResourcingassignments,training, reward etc(weeks)Rough numbers,costs, plans(months)Trends, scenarios,profile, scale, gaps,strategies(years)
    11. 11. 11Coming at it from thisdirection just gives youbigger spreadsheets andthe illusion of accuracyIn practice, oftenget an impasse ofparadoxical needsInpractice, askingfor ResourcePlansNot actuallyStrategicWorkforcePlanningOperationalResourcingProcessesBusinessStrategy &Context“Businessmust giveus betterdata”“need tobe moreproactive”BSS – Bigger Spreadsheet Syndrome
    12. 12. 12The 5 key SWP elementsWhat are thepeopleimplications ofthe strategy?How does thissit alongsidewhat we have?What are the(critical) gaps &issues?What are thestrategies toaddress?Connectingwith budgets &operationalprocesses• Deducing the type, rough phasing and approximate scale ofresources and skills implied by the strategic plan• Understanding how this compares, broadly, to what wehave or plan to have currently• Understanding what gaps need must be addressed bywhen? Understanding whether or not we have a problem.Feeding critical dependencies back into strategic process• Identifying the appropriate route to close the gap in thegiven time – Internal? External? Develop? Buy? Acquire?• Meshing with business planning processes and movingrequirements into execution phase as appropriate.Iterating, converging & monitoring need and progress
    13. 13. On timeDeliveryWhen data good enoughWorkforceplansBased initially on judgement of macro dataRefining & updating as we know moreIntegrated approach13StrategicworkforceplanWorkforcestrategiesAcceptable dataaccuracySupply capability in placeCheckingDeliveryvs NeedStrategy & business planning cycles
    14. 14. 14CapabilitySWP is one of the only things going from Digital to Analogue!
    15. 15. • Strategic Workforce Planning does not give you nice neatnumbers – if it does, they will be wrong anyway• It is a ‘flexible connection’ between future direction andoperational execution, and is vital to strategic deployment• It means engaging with ambiguity and making pragmaticdeductions based on the interpretation of macro data• It is a land of scenarios, what ifs, themes, magnitudes, andtrends which must be tamed in order for operational processesto deliver strategic value• By the time the requirement is clear, it is often too late15The Reality of what SWP involves
    16. 16. 16Key SWP capabilitiesTolerance ofambiguityComfortworking withmacro dataOD & diagnosticskillsJudgement &deductive skillsApplication ofpragmatism &flexibility• Comfort working in an environment where there are noblack & white answers. Asking the right questions to createa workable level of structure• Scenario planning, trend analysis, understanding approxscale and type of resource need, importance of gap to as is• Using diagnostic methodologies with business clients to helppull out the potential organisational implications of strategyand looking across the organisation at enablers/blockers• Choosing the right strategy. Assessing the relativeimportance of the issues and determining the mosteffective solutions• Being realistic. Understanding the percentage plays.Accommodating changes in requirement over time.Getting 80% impact for 20% effort
    17. 17. • Are you connecting SWP into the business risk agenda?• Are you working sufficiently ‚upstream‛, or are you just trying tomake bigger spreadsheets?• Are you actively using SWP to inform the strategy itself, input totop level business planning/budgeting processes, prioritisepeople activity?• Do you have the right people involved? HR people or cross-business team?17Summary – consider four questions
    18. 18. 18Questions?

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