• Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
180
On Slideshare
0
From Embeds
0
Number of Embeds
2

Actions

Shares
Downloads
7
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Don‟t let „people‟ get in the way of implementing your business strategy: Strategic Workforce Planning (SWP) as part of an integrated approach to business planning PPMA Master Class – May 2014
  • 2. Objectives Business performance enablementPage 1 ► To give an introduction into: ► SWP and the benefits it can deliver ► How to carry out SWP in environments that are complex and dynamic
  • 3. Contents Business performance enablementPage 2 1 The goal: Right resources to deliver – in uncertain times 2 What is Strategic Workforce Planning (SWP)? 3 Why SWP – Why now? 4 Business Planning and SWP 5 Benefits of SWP 6 Applying SWP to the challenges faced by local government 7 Q & A 8 Review and Close
  • 4. Complex and dynamic business environments need a different approach to planning workforce supply and demand Business performance enablementPage 3 Organisations frequently focus too much on a limited number of potential future states and exclude more radical options The current business climate demands consideration of multiple options and response to sudden changes in strategic direction Traditional „Manpower Planning‟ struggles to deal with uncertainty and changes in strategic direction Strategic Manpower Planning (SWP) provides the means to include analysis of the „improbable‟ and „unknown‟. Focusing on systematic scenario planning of multiple options to generate resource plans which can flex to external change.
  • 5. Strategic Workforce Planning aligns development of the workforce to business strategy Business performance enablementPage 4 What is workforce planning? ► SWP is a process to improve alignment of workforce and business strategies. ► SWP provides quantitative insight into opportunities to enhance productivity. ► SWP ensures risks to implementation relating to people are considered up front Why is Strategic Workforce Planning (SWP) Important? To ensure organisations have business strategies that incorporate a quantified understanding of the global workforce How is it different? SWP is based on proven statistical analysis of complex data sets and the principles of Management Science. It includes use of: ► Systematic Scenario Planning ► Risk analysis and Mitigation Plans ► Econometrics ► Statistical Analysis ► Forecasting ► Operational Research
  • 6. Strategic Workforce Planning is a critical part of a business strategy focused on the delivery of growth and productivity Business performance enablementPage 5 Benefits Drivers Costs ► Provides insight into the operating model, skills and workforce mix that will deliver ‘Value for Money’ ► Uncover hidden possibilities for reducing cost within even tighter budgetary constraints when pay is a key expense Productivity ► Understaffing / overtime avoided Customer Satisfaction and compliance ► Reducing service quality risk ► Reducing compliance risk ► Commissioning new services quickly People ► Improved employee engagement ► Correct skills ► Reduced hire and training costs Business Model Change 1 Reduced staff costs2 Enhanced productivity3 Improved talent pipeline 4 Typical Scenarios:
  • 7. Today workforce plans emerge as an enabler to the delivery of a business strategy based on business drivers Business performance enablementPage 6 Culture Change management | Communication Business strategyPerformanc e optimizatio n Business drivers Strategic review Talent availability Business model change Enhanced business sustainability Increased flexibility to respond to changing market demands Reduced people risk exposure Reduced people cost Capability to capture new markets and revenues Increased productivity Decline Maturit y Growth Start-up Business plan People plan People and talent management initiatives HR operating model Enabling business performan ce through people Strategic scenario modelling People strategy option analysis Workforce planning and productivity management CoEs Integrated people programmes , policies and plans Bespoke analytics (KPIs analysis) Enabling technology Workforce planning Workforce productivity analysis 1. Interrogate and influence the business strategy 2. Develop and refresh the people strategy 3. Prepare and execute the HR plan Business results
  • 8. Strategic Workforce Planning ensures a quantified understanding of supply and demand of skills fully integrated into an interactive business planning process 13 May 2014Page 7 Work Demand Staff Productivity &Targets Future Workforce Supply People Supply – Future Workforce Requirements Future Work Trends Modelling & Analytics Scenario planning, Productivity Analysis Forecasts & Projections Impact Analysis 1. Understanding the „As-Is‟ 2. Testing options and scenarios 3. Looking at possible future needs Demand Projections Operating Model Test scenarios of future demand and performance ‘As Is’ analysis of historic data, business constraints and assumptions Evaluation of solutions and comparison of options and scenarios People Strategy Options Resourcing options, HR policy change, Operating Model change Business performance enablement Capacity Gap / Surplus
  • 9. Strategic Workforce Planning can provide value adding solutions to a range of business challenges Business performance enablementPage 8 Business drivers Example people challenges Strategic Workforce Planning solution Strategic review • Workforce skill set • Workforce cost base Create board level engagement in robust strategic planning with early engagement of HR Business model change • Workforce planning does not deliver labour supply • Global Location strategy Well tested plans that increase success in implementation, boosting credibility with stakeholders and investors Performance optimization • Low productivity • Ineffective scheduling Internal benchmarking to uncover hidden opportunities to reduce costs Talent availability • Scarcity of talent • Attrition of key skills Use of analytics to identify factors impacting supply and demand in key skills areas leading to improved talent management
  • 10. Business performance enablementPage 9 SWP provides a framework to find answers to the challenges raised in the IES/PPMA Working Group Study. Required Workforce Current Workforce Evidence Risk Mgt General Public And Government Current Employees Our Community DEMAND • Volumes, costs, quality of services • Positive public perception • Government support PEOPLE SUPPLY • Skills: affordability and availability • Work patterns • Employee expectations / behaviours CHANGE PLAN • Costed Talent strategy • Sourcing Strategy • Risk Mitigation
  • 11. Modelling Workforce Demand – Understanding current and future needs Page 10 Workforce Demand Benchmarks Expert Opinion Productivity Analysis OutputsAnalysisInputs Bringing together a range analytical tools and techniques, our approach focuses on understanding what is driving the need for resources, including ► Staff productivities across roles and services ► Differences in planned demand across services and how these affect productivity ► The impact of physical constraints, eg population centres and local resource requirements ► Base requirements and specific needs across services ► Demographic development and usage trends and how these will affect workforce demand through scenario modelling Our approach brings together business strategy with historic data and scenario modelling to understand future demands Trends in delivery of public services External Developments Historic Data on Service Delivery Business Strategy Operating Model Forecasts of demand for services Structural Constraints Requirements & Working Regulation Business performance enablement
  • 12. Modelling People Supply – Understanding staff developments and efficiencies Page 11 People Supply OutputsAnalysisInputs Projections Data Analysis Our approach enables an understanding of the key drivers of staff behaviours and forecasts staff and skill availability Analysing staff behaviours and developments to develop a projection of staff and skill availability in the future, including ► Attrition rates and trends across age groups, locations and departments ► Shifts, working regulations, current practises and collective agreements ► Key skills and skill mix including the need for specialists ► Tenure and typical career progression of staff, implications of extended absence due to training ► Teams and collaborative working across departments and services Staff TenureAttritionLeave, training Roles & Specialities and skills Working regulation Business performance enablement
  • 13. Example: SWP in Commissioning within Health and Social Care Business performance enablementPage 12 This demands a “pressure tested” workforce strategy and people plan aligned with the business strategy: ►What operating model, skills, workforce and location mix will provide the best value for money and still meet health and social care standards? ►Where do the people risks lie in placing those bets? ►Where do the threats to your organisation lie as you have to deliver under increasing budgetary pressures? The public spotlight is on health and social care providers: ►To provide high quality Health and Social Care under increasing stress of demographic changes, an ageing population and a divergence between where services could be delivered and where they are being delivered. ►To make sure that the organisations meet Health and Social care standards in the face of major quality concerns and ensuring the workforce is well trained. ►To save costs and deliver within ever tighter budgetary constraints when pay is the main expense
  • 14. Modelling of workforce demand Understanding current and future Care needs Page 13 Workforce Demand Benchmarks(NMDS) Expert Opinion Productivity Analysis OutputsAnalysisInputs Bringing together a range analytical tools and techniques, our approach focuses on understanding what is driving the need for resources, including: ► The impact of demographics on health and social care demand ► Priorities from local people (commissioning effectively) ► The impact of physical constraints, eg beds or locations, ► Impact of compliance regulation Our approach brings together your business strategy with historic data and scenario modelling to understand your future demand and operations Priorities from local people Requirements & Regulation Provider landscape Demographics Health and Social Care requirements Structural Constraints such as beds, location Business performance enablement
  • 15. Modelling of People Supply Understanding staff developments and supply Page 14 People Supply OutputsAnalysisInputs Projections Data Analysis Our approach enables an understanding of the key drivers of staff behaviours and forecasts staff and skill availability Analysing staff behaviours and developments to develop a projection of staff and skill availability in the future, including ► Attrition rates and trends across age groups, locations and specialties ► Shifts working regulation and current practises ► Key skills and skill mix across specialties, e.g. care workers ► Tenure and typical career progression of staff, implications of extended absence due to training ► Health and Social care regulation Staff TenureAttritionLeave, training Capability and skills requirements Health and Social care regulation Business performance enablement
  • 16. The Steps to Embed Strategic Workforce Planning Business performance enablementPage 15 Business Strategy Workforce Strategy People Plan 2. Analyse Drivers 3. Evaluate Strategic Impact 5. Evaluate Delivery Options 4. Develop HR Initiatives 6. Implement 7. Measure and Feedback Results ► Use the existing business strategy to deliver steps 1 -3. ► In parallel, develop People Plan (4,5) and share Workforce Strategy with Key Stakeholders ► Implement plan, measure effectiveness and feedback outcomes (6,7). ► Ensure feedback influences the next iteration of the business strategy. Feedback costs, risks and constraints Work Demand Staff Productivity &Targets Future Workforce Supply People Supply – Future Workforce Requirements Future Work Trends Modelling & Analytics Scenario planning,Productivity Analysis Forecasts & Projections Impact Analysis 1. Understanding the „As-Is‟ 2. Testing options and scenarios 3. Looking at possible future needs Demand Projections Operating Model Test scenarios of future demand and performance ‘As Is’ analysis of historic data, business constraints and assumptions Evaluation of solutions and comparison of options and scenarios People Strategy Options Resourcing options, HR policy change, Operating Model change Capacity Gap / Surplus 1. Gather Data
  • 17. Example of how SWP can be used to develop answers and support employee dialogue to gain „buy – in‟ … 13 May 2014Page 16 Scenario modelling allows you to see future risks and opportunities 16 Test the impact of different future scenarios and people plans on requirements and costs Analysis and reports providing stakeholders all the evidence required for informed decision making Create highly visual planning sessions where issues can be identified quickly 1 2 3 4 Business performance enablement
  • 18. … and enables clearer decisions and improved ► Increasing workforce efficiency by providing the workforce with the right skills at the right costs ► Improved productivity through improved prioritisation of tasks and resource usage ► New insights into shift planning and rostering ► Accurate financial information for budgeting and costing Model Output Benefits Workforce requirements ► Staff requirements for each speciality by roles, skills set and location over time ► Staffing gaps and surpluses across the organisation ► Projections of future demand and requirements in alternative scenarios ► Current and future projections of total staff costs to the organisation across functions ► Improved productivity by closing capacity gaps and reducing surpluses ► Improved control and visibility through consistent consolidated information enabling continuous improvement ► Identification of best practise across the organisation ► Improved understanding of staff availability developments to inform recruitment decisions ► Identification of problems with talent management, diversity, absence or retention strategies ► New insights in succession planning and improved trainings planning Productivity metrics ► Productivity KPIs for each organisational speciality and key roles ► Internal benchmarking and ranking of productivity for comparable services Workforce dynamics ► Forecast of staff and role distribution across speciality / role over time without intervention ► Staffing projections accounting for retention changes ► Staff absence and issue reports Business performance enablement
  • 19. Business performance enablementPage 18 Q and A ?