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Workforce Planning
Reshaping the present. Reimagining the future
Value to the Customer
2	
A value chain consists of a set of
activities involved in delivering
a final product or service to a
company's or an organization’s
customers’ satisfaction…

! Your profit margin is the Value
that you can create Minus the Cost of
creating that value…
How does your Company Create Value?
3
Primary activities relate directly to the physical creation,
sale, maintenance and support of a product or service.
•  Inbound logistics – processes related to receiving, storing, and
distributing inputs internally (Value creating factor is SRM)
•  Operations – These are the transformation activities that change
inputs into outputs that are sold to customers.
•  Outbound logistics – delivery of products or services
•  Marketing and sales – processes used to persuade clients to
purchase from you instead of your competitors. (benefits offered,
and how well you communicate them, the CRM is the value here)
•  Service – These are the activities related to maintaining the value
of your product or service to your customers, once it's been
purchased. 4	
Which Activities add Value and How?
Support Activities : are service providers to the primary
functions
•  procurement supports operations with certain activities, but it also
supports marketing and sales with other activities.
Procurement (purchasing) – involves needs assessment,
sourcing and negotiating best prices with vendors.
Human resource management – This is how well a
company recruits, hires, trains, motivates, rewards, and
retains its workers.
•  People are a significant source of value, so businesses can
create a clear competitive advantage with good HR practices.
5	
Which Activities add Value and How?
Support Activities Cont’d
Technological development – These activities relate to managing
and processing information, as well as protecting a company's
knowledge base.
•  Minimizing information technology costs, staying current with
technological advances, and maintaining technical excellence
are sources of value creation.
Infrastructure – These are a company's support systems, and the
functions that allow it to maintain daily operations. Accounting,
legal, administrative, and general management are examples of
necessary infrastructure that businesses can use to their advantage.
6	
Which Activities add Value and How?
Step 1 – Identify sub activities for each primary activity,
which specific sub- activities create value;
•  Direct activities create value by themselves. For example, in a
book publisher's marketing and sales activity, direct sub activities
include making sales calls to bookstores, advertising, and selling
online.
•  Indirect activities allow direct activities to run smoothly. For the
same publisher's sales & marketing activity, indirect sub activities
include managing the sales force and keeping customer records.
•  Quality assurance activities ensure that direct and indirect
activities meet the necessary standards. For the book publisher's
sales and marketing activity, this might include proofreading and
editing advertisements.
7	
Using Porter’s Value Chain Model
Step 2 – Identify sub activities for each support activity.
ª  For each of the Human Resource Management,
Technology Development and Procurement support
activities, determine the sub activities that create value
within each primary activity.
ª  Then identify the various value-creating sub activities in
your company's infrastructure. These will generally be
cross-functional in nature, rather than specific to each
primary activity. Again, look for direct, indirect, and
quality assurance activities.
8	
Using Porter’s Value Chain Model
Step 3 – Identify links
Find the connections between all of the value activities
you've identified.
•  This will take time, but the links are key to increasing
competitive advantage from the value chain framework.
o  For example, there's a link between developing the
sales force (an HR investment) and Sales volumes.
o  There's another link between order turnaround times,
and service phone calls from frustrated customers
waiting for deliveries.
9	
Using Porter’s Value Chain Model
Value Chain : Public Sector
10
Organizational Development
OD is a planned and systematic
approach to enabling sustained
organizational performance
through research, theory,
and practice dedicated to
expanding the knowledge and
effectiveness of its most
important resource, its’ people…
11
Organizational Development - What
A system-wide process of data collection,
diagnosis, action planning, intervention, and
evaluation aimed at;
ü  enhancing congruence (gluing together) among
environment, resources, history |organizational
structure, process, strategy, people, culture and
systems (Inputs-Org Elements- Outputs)
ü  developing the organisation’s self-renewing capacity
through the collaboration of organizational members
working with a change agent using behavioral science
theory, research and technology 12
Why Org. Dev.? – Current State
13	
Organization
Low	Produc*vity	
High	Turnover	 Inter	Dept.	Conflicts	
Poor	Alignment	to	Organiza*on’s	Strategy	
Unclear	Goals	
Poorly	Designed	tasks	
Poor	Team	Performance	
Fire	Figh*ng	Work	Approach	
Low	Morale	
Inappropriate	leadership	style			
Interpersonal	conflicts		
Lack	of	Innova*on		
Poor	Customer	Service	
Loss	of	Market	Share
Organizational Development - How
•  OD applies to changes in the strategy, structure, and/
or processes of an entire organization, a department
or work group, or individual role or job.
•  OD is based on the application and transfer of
behavioral science knowledge and practice (such as
leadership, group dynamics and work process
design), and is distinguished by its systematic
ability to transfer such knowledge and skill so that
the system is capable of carrying out more planned
change in the future.
14
Organizational Development - How
•  OD is concerned with creation and managing
planned change, in a flexible manner that can be
revised as new information is gathered.
•  OD is geared towards improving effectiveness by:
•  helping members of the organization to gain the
skills and knowledge necessary to solve problems by
involving them in the change process…
•  by promoting high performance including financial
returns, high quality products and services, high
productivity, continuous improvement and a high
quality of working life. 15
Organizational Dev. - Cycle
16	
Credits	:	wwu.edu	
Employee	Input	&	
Discussion	view	points	
Seek	to	Improve	Effec*veness	
&	solve	opera*onal	problems		
People,	the	roles	they	
undertake,	the	systems	and	
culture	within	they	operate	
Change	Management	principles	to	
change	deployment,	stabiliza*on,	and	
the	evalua*on	loop	for	the	next	level	of	
organiza*onal	development	
Analy*cal	findings	are	the	base	
for	OD	interven*ons	planning
OD & HR
OD and its methods play a part in developing
HR’s strategic role and its involvement in
organizational change and culture.	
•  OD work is based upon robust diagnosis that uses real
data from organizational, behavioral and psychological
sources.
•  OD work is planned and systemic in its focus and takes
account of the whole organization, views and culture.
•  OD practitioners help to create alignment between
different activities, projects and initiatives.
•  OD work involves groups of people in the organization to
maximize engagement, ownership and contribution.
17
OD & HR
In defining OD, and the associated skills
required by an HR professional, emphasis is
placed on the need to see OD as a continuous
review process rather than a one-off change
intervention.
•  OD requires sophisticated people management skills
and can enable HR to develop the deep
organizational insight required to ensure the
relationship between the business and its people
delivers win-win solutions for both.
18
Avoid Workforce
Capacity Shortfalls
Reduce Workforce
Sourcing Costs
Create Effective
management
structures
Develop a
Competitive
Workforce
Outcome
Measure Churn rates
Workforce
Planning
Acquisition &
Movement
Workforce
Performance
Learning &
Development
Employee
Retention
Business Insights
1. HR Needs (Current & Forecasted)
2. Workforce Related Actions
1. Effectiveness of Recruiting Efforts
2. Workforce Migration
1. Efficient use of Top Performers
2. Impact on Retention
3. Effective Management Structures
1. Efficacy of Development Programs
2. Alignment of Progression to
Development
1. Turnover issues
2. Loss of Development Investments
19	
Human Resource Management & Development Strategy
Strategy
Organizational Objectives
The overall goals, purpose and mission of a
business that have been established by its
management and clearly communicated to its
employees.
•  Typically focus on its long range intentions
for operating and its overall business
philosophy that can provide substantial
guidance for employees seeking to add
value to the process flow in their own areas.
20
Organizational Objectives
Profitability : Maintaining profitability means
making sure that revenue stays ahead of the
costs of doing business
•  Focus on controlling costs in both production and
operations while maintaining the profit margin on
products sold.
Productivity : Provision of all of the resources
your employees (training, equipment, materials,
financials) need to remain as productive as
possible.
21
Organizational Objectives
22	
Customer Service (CRM)
Clear customer service levels help retain clients
and generate repeat revenue.
22
Organizational Objectives
Change Management : is the process of
preparing your organization for dynamic but
sustainable growth and creating processes that
effectively deal with a developing marketplace.
Marketing : more than creating advertising and
getting customer input on product changes.
It is understanding consumer buying trends, being able to
anticipate product distribution needs and developing
business partnerships that help your organization to improve
market share.
23
Organizational Objectives
Human Resources
objectives cover organizational structure,
culture, staffing needs, employee training, talent
development and productivity improvement
goals as well as reduction of employee turnover
by introducing new employee assistance
programs.
•  Maintaining a productive and positive employee
environment improves retention
24
Organizational Structure
Departmentalization is an aspect of organizational
design that includes the subdivision of a business
into units based on their function or other criteria.
Standard methods of departmentalization include
grouping jobs by;
•  Functional activities
•  Product types
•  Customer groups
•  Geography or location
•  Processes
25
Org. Structure : Departments
26	
a.  Functional departmentalization—jobs are
grouped by the functions (i.e., marketing, finance,
human resources) performed.
•  Can be used in all types of organizations, although
the functions change to reflect the organization’s
objectives and work activities.
b.  Product (or Service) departmentalization—jobs
are grouped by product line.
•  Here, each major product area is placed under the
authority of a manager who’s a specialist in, and is
responsible for, everything having to do with that
particular product or service line.
Org. Structure : Departments
27	
c.  Geographical departmentalization—jobs are
grouped on the basis of a territory or geography such
as; Midwestern or northwestern regions for an
organization operating only in the United States; or for
a global company, maybe U.S., European, Canadian,
MENA and Asian-Pacific regions.
d.  Process departmentalization—this method groups
specialized process jobs on the basis of product or
customer flow.
•  In this approach, work activities follow a natural
processing flow of product or even customers.
Org. Structure : Departments
28	
e.  Customer departmentalization—jobs are grouped
on the basis of common customers who have
common needs or problems that can best be met by
having specialists for each.
In an organizational structure, “chain of command”
refers to a company's hierarchy of reporting
relationships -- from the bottom to the top of an
organization, who must answer to whom.
•  The chain of command not only establishes
accountability, it lays out a company's lines of
authority and decision-making power.
Org. Structure : Departments
29	
Pyramid/Hierarchy : Centralized
An organization using a pyramid or hierarchy structure
has a leader who is responsible for and makes all the
decisions affecting the organization as well as manages
other organizational members (Functional heads).
Matrix	
Matrix organizations assign employees to two reporting
lines; One hierarchy is functional and assures that
experts in the organization are well-trained and assessed
by bosses who are highly qualified in the same areas of
expertise. Another is executive and works to ensure the
experts bring specific projects or goals to completion…
Org. Structure : Departments
30	
Matrix Structures : Cont’d
•  Weak/Functional Matrix: A project manager with limited
authority is assigned to oversee cross-functional aspects of the
project. Functional managers maintain control over their
resources and project areas.
•  Balanced/Functional Matrix: A project manager is assigned to
oversee the project. Power is shared equally between the project
manager and functional managers, combining the best aspects of
functional and project-oriented organizations. This system is the
most difficult to maintain because of difficulties in power-sharing.
•  Strong/Project Matrix: A project manager is primarily
responsible for the project. Functional managers provide
technical expertise and assign resources as needed.
Org. Structure : Departments
31	
Ecology : Decentralized
Each business unit (operating autonomously with clearly
defined, measureable goals) represents an individual profit
center that holds employees accountable for the unit's
profitability.
•  These kinds of organizations foster intense
competition, as all members are paid for the actual
work they perform.
•  Ineffective parts of the organization are left to fail
and thriving parts are rewarded with more work.
Org. Structure : Functional
32
Org. Structure : Matrix
33
Org. Structure & Strategy
Business strategy is a practical plan for achieving an
organization's mission and objectives.
Strategic management is the comprehensive collection
of ongoing activities and processes that organizations
use to systematically coordinate and align resources and
actions with mission, vision and strategy throughout an
organization
Organizational structure is the formal layout of a
company's hierarchy.
34
Org. Structure & Strategy
McKinsey 7S Model
The Hard elements (red
circles) are feasible and easy to
identify. They can be found in
strategy statements, corporate
plans, organizational charts
and other documentations.
The Soft S’s are capabilities,
values and elements of
corporate culture are
continuously developing and
changing.
35
Org. Structure & Strategy
McKinsey 7S Model
The Hard S’s
Strategy: Actions a company plans in response to or
anticipation of changes in its external environment.
Structure: Basis for specialization and co-ordination
influenced primarily by strategy and by organization
size and diversity.
Systems: Formal and informal procedures that
support the strategy and structure. (Systems are more
powerful than they are given credit)
36
Org. Structure & Strategy
McKinsey 7S Model
The Soft S’s
Style/Culture: Org. Culture/Management Style
•  Organizational Culture: the dominant values and
beliefs, and norms, which develop over time & become
relatively enduring features of organizational life…
•  Management Style: more a matter of what managers do
than what they say; How do a company’s managers spend
their time? What are they focusing attention on?
Symbolism – the creation and maintenance (or sometimes
deconstruction) of meaning is a fundamental
responsibility of managers
37
The Soft S’s
Staff: People/Human resource management – processes
used to develop managers, in-house networking, shaping
of basic values, new staff orientation, helping to manage
employee careers.
Skills: The distinctive competences – what the company
does best, ways of improving or shifting competences
Shared Values / Superordinate Goals: Guiding
concepts, fundamental ideas around which a business is
built – must be simple, usually stated at abstract level,
have great meaning inside the organization even though
outsiders may not see or understand them.
McKinsey 7S Model
Strategic Vs Workforce Planning
Strategic HR Planning considers the business
risks concerning insufficient, disrupted, mis-
deployed talent as organization’s business priorities.
Workforce planning is considered an iterative
discipline (repetition while seeking continuous
improvement) .
•  The cycle of workforce planning includes filling
resource requests, analyzing resource utilization,
forecasting capacity, managing and identifying the
resources (human) to fill that capacity gap (supply/
demand), and then re-starting the cycle.
39
Strategic Planning : Key Business Drivers
40	
Key Business Driver : A resource, process
or condition that is vital for the continued
success and growth of a business…
Sample	
Drivers
Workforce Planning : Definitions
Chartered	Ins*tute	of	
Personnel	and	Development		
A Core Process of the Human Resource Management
function shaped by the organizational strategy that
ensures the right number of people with the right skills
are employed in the right place at the right time to
deliver the organisation’s short & long-term objectives
and vision….yes at the right cost!	
•  Succession planning
•  Labour demand and supply forecasting
•  Recruitment and Retention planning
•  Skills audit gap analysis
•  Multi-skilling & Career planning
•  Risk management
•  Outsourcing 41
5Rs of Work Force Planning
42
Workforce Planning : Definitions
Can also be defined as the continuous planning
process of shaping and structuring the workforce to
ensure there is sufficient and sustainable capability
to meet organizational objectives now and in the
future.
Key considerations in planning;
•  What is the current situation ~ where are we now?
•  What are the future requirements ~ where are we headed?
•  What is needed to bridge the gap ~ how do we get there?
43
Workforce Planning : Definitions
Operational workforce planning functions on a
person-to-person level and streamlines employee-related
operations day by day.
•  Optimizing work schedules and employee hours
•  Optimizing the distribution of talent among divisions
and departments
•  Identifying functional needs and hiring new workers to
meet those needs
•  Identifying obsolete functions and reassigning workers
as necessary
•  Ensuring the greatest possible overall worker job
satisfaction
44
Workforce Planning : Definitions
Strategic workforce planning deals with broad-based
issues that evolve over months and years and can
encompass all the aspects of an enterprise.
•  Forecasting knowledge drain as employees leave
(or age out)the organization
•  Forecasting future talent needs
•  Determining and evaluating likely future
sourcing options
•  Implementing an effective workforce analytics
strategy
45
Workforce Planning : Definitions
46	
Credits	:	FAHR_AE
WP & HR : Why all the noise?
Aging Workforce : shortage of new skills and increasing
tide of ‘boomers’ reaching retirement
Globalization : companies now have multiple
international locations to plan for, source, manage and
also integrate into the strategic processes
Contracting & Outsourcing : need to know when,
how and where to be included in workforce planning
while keeping inline with the local cultural, legislative
and statutory policy.
47
WP & HR : Why all the noise?
Mergers & Acquisitions : may increase the
number of workers with similar skill sets but
company may lose them in transition
Enhanced Technology (Robotics) : replacing one
skill set but creating a need for another
Critical Industry Needs : Public Sector,
Healthcare, Technology, Energy…
48
Workforce Planning & HR
	
Talent acquisition as well
as strategic positioning,
development, and
subsequent retention are
key HRM/D areas that
begin with considering all
potential access sources
(employment, out sourcing,
partnerships, changing
business activities to
modify the types of talent
required, etc.).
49	
G
A
P	
Strategic	
Business	
Planning	
HR	
Strategies	
Workforce	
Planning	
Address	Gaps	
Set	Priori*es	
Iden*fy	Gaps
Strategic Workforce Planning : Drivers
1.  Find the Right Champion/Project Leader
Strategic Workforce Planning (SWP) requires credible and
influential champions to drive, support, and sustain a change
in evolving markets.
•  While a strong HR professional can be an effective
champion in some organizations, experience has shown
that a champion from the business side is critical.
2.  First, Believe … Then Execute and Evaluate
Organizations that implement SWP have a fundamental
belief that a more strategic, rigorous, and data-based
approach to workforce planning is critical to strategy
execution and, ultimately, yielding of significant benefits.
50
Strategic Workforce Planning : Drivers
3.  Talent Segmentation is a Disciplined Art, Not an
Exact Science : Figuring how to segment job roles
isn’t the same as segmenting people.
•  It’s important to look at talent and how to determine which
roles are critical for driving your firm’s long-term
competitive advantage.
4.  Sound Judgment Is Still Required
Think SWP is a cure-all? It’s actually a decision-support
mechanism—not a decision-making expert system.
•  Rely on SWP to uncover data, disconnects, trouble spots & to
zero in on potential opportunities and make better business
planning decisions.
51
Strategic Workforce Planning : Drivers
5.  Integrate with other Key strategies
SWP can’t stand alone. For success and long-term
sustainability, it’s important to make sure you link it with
other processes such as strategic planning, operations
planning, and talent development.
6.  Human Resources Sets the Table
An organization’s leaders play a critical role in SWP. But
HR is just as important in supporting and facilitating any
implementing and ongoing management. So be sure to
engage across functions to drive business performance.
52
An organization’s ability to learn, understand, and
transform new ideas into action rapidly (from
Strategic to Tactical Level) is the ultimate competitive
advantage… Jack Welch, Former CEO, GE
Creating Competitive Advantage….
53
SWP : Benefits
ü  Creates a clear view of talent demand and supply
issues by expense area, reporting relationship, and
by location.
ü  Provides managers easy-to-use reports and tools to
determine the impact of their talent decisions and
prioritizes future workforce investments.
ü  Provides leaders the right metrics—identifying
talent risk before it impacts business objectives.
ü  Provides a mechanism for monitoring costs and
directly linking expenditure of personnel against
business outputs and outcomes.
54
SWP : Benefits
ü  Helps control unplanned talent costs and highlights
issues that limit employee productivity.
ü  Builds competitive advantage through Proactive
rather than reactive talent management.
ü  Improve efficiency, effectiveness and productivity
(employees possess the right skills and are a good fit
for the job)
ü  Facilitate strategic staffing and planning for future
workforce requirements (can identify staffing needs
in a timely manner, monitor attrition and ensure
replacements are available to fill key vacancies)
55
SWP Considerations : Demographics
(The Generation Mix)
56	
Baby	Boomers	
Born	:	1945	–	1964	
Shaped	by	:	Less	Trust	in	
Government	
Genera*on	X	
Born	:	1965	–	1980	
Shaped	by	:	internet,	
diversity,	parental	divorce	
rates,	unemployment	
Genera*on	Y	
Born	:	1981	–	1994	
Shaped	by	:	informa*on	
overflow,	globaliza*on	
Genera*on	Z	
Born	:	1995	–	2010	
Shaped	by	:	Tech	savvy,	
strong	work	ethic	
Genera*on	Alpha	
Born	:	2010	+	
Even	more	tech	savvy	
More	in	numbers	due	to	
birth	spike	
Most	formally	educated
SWP : Steps
57	
Translate
Business Strategy
into Value drivers
Current Workforce
Analysis
Forecasting
Future Workforce
Demandvs. supply
Identify and
Analyze Gaps
Develop
Strategies
Implement Talent
strategy to close
Gaps
Monitor &
Evaluate
Iden*fy	values	drivers	(e.g.	cri*cal	
ac*vi*es,	func*ons	and	processes)	
to	achieve	the	business	strategy	
Analyze	workforce	against	org.	
direc*on,	internal	workforce	
characteris*cs	and	capabili*es,	
external	labour	market	and	
environmental	factors	
Determine	headcount	
demand	vs.	supply	in	
each	role,	while	
factoring	both	internal	
and	external	labor	
market	dynamics	
The	gaps	between	future	
workforce	needs	and	current	
workforce	profile	are	
iden*fied	and	analyzed	
Integrated	business	and	HR	
strategies	are	developed	to	
address	the	gaps	between	
current	and	future	workforce	
needs	
Investment	in	
strategies	and	change	
management	
processes	to	address	
workforce	planning	
issues	
Strategic
Workforce
Planning
Effec*veness	of	strategies	
is	evaluated	to	determine	
success	of	planned	changes	
and	impact	on	business	
performance
SWP : Steps
1.  Understanding the organisation’s strategic direction
and its impact on the workforce
2.  Analyzing the current and Forecasting the future
workforce needs and competencies
3.  Analyzing the gap between the current and future
needs
4.  Developing strategies to address workforce gaps
5.  Implementing strategies to align the workforce
with future business needs
6.  Evaluating and Monitoring the success of the
workforce planning strategies in meeting objectives
58
SWP : Critical Issue of Scope
Before starting any SWP effort, the organization
needs to determine the scope of their workforce
plan (either entire workforce or limited segment).
•  This involves identifying which jobs or areas of
the workforce to be analyzed;
o  Mission-critical occupations, key employees/
roles or branches
o  Occupations and skills that are difficult to
recruit or retain
o  A particular strategy to ensure that the right
people are available to get particular work done
59
SWP : Critical Issue of Scope
" Will it be difficult to replace some of the people who
are likely to retire soon?
" Do these people have significant relationships with
key stakeholders?
" Are they critical to the development or maintenance
of intellectual capital?
" Do they represent a major, important component of
the corporate culture?
" Are their skills transferable?
60	
Some Key Questions to determine the Scope will include but not limited to;
?
Scope : Workforce Segmentation
HR professionals separate the various components of their
organization's workforce in order to fit policies and
practices to each particular segment.
•  Such customizations impact recruitment, training and
development, compensation, succession and
outsourcing
•  The Traditional model is based on job evaluations, and
salary levels which may result into SWP problems.
o  This model serves as a basis for accountability/
responsibility, decision-making and limits of authority, but
it is not an appropriate for developing tailored attraction,
engagement and workforce retention strategies.
61
Scope : Workforce Segmentation
a)  The Traditional (hierarchy based) segmentation
model has several flaws which include;
o  a waste of resources (e.g., could include paying the
wrong people too much and the right people too little)
o  operational inefficiencies and poorer performance by
having inexperienced people in important roles
o  salary levels are more a reflection of market forces
and internal equity which may not necessarily reflect
the true value of the importance of the role in terms of
value creation, competitive advantage and their
impact on business outcomes
62
b)  The Skills Based segmentation model takes into
account both the value & uniqueness of skills relative
to role…	
1.  Criticals (with a turnover multiple of between 1 – 2.5)
2.  Professionals, Skilled (T/O multiple of between 0.5 – 1)
3.  Doers (with a turnover multiple of between 0.3 – 0.5)
4.  Specialists (with a turnover multiple of between 1 – 1.5)
	
•  Each of these role types has a different psychological contract (or
employer/employee relationship or “deal”/Employment Value
Propositions {EVP}), with different levels of investment in
employees, and different turnover cost implications.
63	
Scope : Workforce Segmentation
Scope : Skills Based Segmentation
64
Scope : Skills Based Segmentation
65	
Identifying Critical Roles (valuable and unique skills)
•  Roles come first before taking into consideration the
people occupying those roles (e.g., capability,
development needs, engagement, retention risk)
Outsourcing Roles
•  Roles residing in quadrants 2 and 3 are more
amendable to outsourcing considerations. These roles
are also likely to be “buy” (i.e., acquire ready made
from the market), rather than “make” (i.e., develop
from within including the associated investment – 1
and 4) roles
66	
HR Policies and Practices by Workforce Segment
67	
Sample Analysis and Classification of Roles by Skills’
Turnover Cost : Looking at the Numbers
68	
CRITICALS	 PROFESSIONALS	 DOERS	 SPECIALISTS	
#Staff	 50	 175	 150	 30	
Annual	Voluntary	
Turnover	
12%	 15%	 17%	 7%	
6	Lej	 26	Lej	 25	Lej	 2	Lej	
Average	Salary	 $180k	 $100k	 $50k	 $80k	
T/O	mul*ple		 2	 0.5	 0.3	 1.5	
Cost	of	T/O	per	Annum		
(T/O multiple*Av.Salary*Annual T/O)
$2.16m	 $1.3m	 $.375m	 $.24m	
The cost of 6 Criticals leaving ($2.16 million) is much more significant than the cost of 26 Professionals
leaving ($1.3 million) and 25 Doers leaving ($0.375 million). Hence the need to calculate the cost of turnover
on a workforce segment basis.
SWP : Steps
69	
Workforce
Analysis
Forecast
Needs
Analyze
Gaps
Develop
Strategies
Implement
Strategies
Monitor &
Evaluate
Activity 1 Activity 2
Reviewing Organization Direction
& External Environment
Analyzing Internal and
External Labour Forces
“Lets dip deep into strategy, market research and
analytics”…
Reviewing Organization Direction
& External Environment
•  Where is the organization going in the next three to five
years?
•  What are the organisation’s current and future business,
work functions and activities?
•  What are the required workforce composition and
competencies?
•  What are the anticipated changes over the planning
period?
70	
key questions to explore when reviewing organization direction and
external environment;?
Reviewing Organization Direction
& External Environment
•  What does the current and future labour market look like
(regarding the availability of certain occupations and the
people necessary to fill them)?
•  What is the impact of current or future government
regulations
•  What are the sources of competition for attracting people
(salary, benefit packages, etc)?
•  What other trends may impact the organization (such as
trends towards decentralization, outsourcing or
restructuring)?
71	
key questions to explore when reviewing organization direction and
external environment;?
•  What does the current and future labour market look like
(regarding the availability of certain occupations and the
people necessary to fill them)?
•  What is the impact of current or future government
regulations
•  What are the sources of competition for attracting people
(salary, benefit packages, etc)?
•  What other trends may impact the organization (such as
trends towards decentralization, outsourcing or
restructuring)?
72	
key questions to explore when reviewing organization direction and
external environment;?
Reviewing Organization Direction
& External Environment
Analyzing internal and External labour forces
Analyzing the internal and external labour
force will enable an organization to identify:
ü  The composition, characteristics, competencies and
supply of current labour for the organization (from
internal and external sources)
ü  The type of jobs and skills available internally and
externally.
73
Analyzing internal and External labour forces
Internal workforce information can be collected
through a range of quantitative and qualitative
methods that include:
•  Competency assessments – surveys of managers
and employees
•  Workload data – line managers complete reporting
templates with instructions and formulas on how to
calculate workload
•  Workforce data – personnel records and human
resource systems.
74
Analyzing internal and External labour forces
Monitoring external labour market changes ensures:
•  Sufficient numbers of replacement staff are available
to cover separation and growth
•  The contingent workforce relied upon by the
organization is maintained at adequate Levels
•  Intelligence is gathered to contribute to the decision
of whether the organization “builds or buys” specific
workforce skills and numbers required.
“this data can be collected from labor websites,
databases, career fairs etc.”
75
Analyzing Internal labour forces
76	
Demographic data Trend data (for a historical picture)
Number of employees, FTE and headcount Resignation/separation/turnover rates
Job classification/occupation Retirement patterns/rates
Salary level Voluntary separation rates
Age distribution Leave patterns (sick leave, long service,
family/parental leave)
Gender breakdown Recruitment and vacancies patterns
Nationality and diversity characteristics Promotion and transfer patterns
(ie. mobility within agency)
Education level/qualifications Skills gaps
Employment status Skills gaps
(eg. ongoing, fixed-term contract)
Competency levels
•  What are the competencies, attributes and composition of
the current workforce?
•  What is the current workload?
•  What are current and projected retirements, turnover,
secondments, etc.?
•  What is the current year labour budget?
•  What current skills are essential to the business?
•  What is the demand for and availability of these skills in
the external labour market?
•  What occupational groups or skills does the organization
currently obtain via contracts or casual employment?
77	
key	ques*ons	to	explore	when	analyzing	the	internal	and	external	workforce	
include:	?
Analyzing internal and External labour forces
•  What are the key characteristics/skills/profile of employees
on contracts and casuals?
•  What is the labour market like (re: availability of qualified
candidates, ability to recruit these candidates, and
organizational challenges (i.e. internal constraints) in
recruiting competitively?
•  What are the trends in external benchmarking data (re:
rates of pay, skill availability)?
•  What are the trends in external environmental data (ie.
inflation, competition, unemployment)?
78	
key	ques*ons	to	explore	when	analyzing	the	internal	and	external	workforce	
include:	?
Analyzing internal and External labour forces
SWP : Steps
79	
Workforce
Analysis
Forecast
Needs
Analyze
Gaps
Develop
Strategies
Implement
Strategies
Monitor &
Evaluate
Activity 1 Activity 2 Activity 3 Activity 4
Understanding Future
Work Requirements
Identifying Future
Competencies
Developing Forecasting
Models
Developing Forecasting
Assumptions & Scenarios
Understanding Future Work Requirements
Inputs to identifying future work requirements
for the organization include:
•  Organizational business plans and vision
•  Current workforce profile (including
competency levels, composition and
numbers).
80
81	
Techniques Description When to Use
Focus Group
Small group facilitated discussion enables
anecdotal evidence to be obtained
Highly specialized fields, to gain
information quickly
Survey
Employee surveys of intentions can help
predict likely outcomes and identify
impending changes
Best conducted on a regular basis
to obtain trends, high reliability
Delphi technique
Draws together subject matter experts and
engages them in assessing likely impacts
and their assessments of future directions
and trends
Specialized area, to obtain senior
input
Force field analysis
Small group brainstorm force field analysis to
identify forces that promote and resist
change
Significant external barriers
present
Scenario planning
Narrative statements of possible futures for
the organization
Lack of clarity and
ambiguity of future
Understanding Future Work Requirements
•  What type of work will be done in the future?
•  How will this new work be performed?
•  How does this work differ from current work requirements?
•  What work/job roles/positions will be critical to the
organization in the future?
•  How will jobs and workload change as a result of future
technological advancements, economic, social and
political conditions?
82	
key	ques*ons	to	explore	when	understanding	future	work	requirements	
include:	?
Understanding Future Work Requirements
•  How will the organization need to be structured to support
future work requirements?
•  How will work flow into each part of the organization?
What will be done with it? What will be the reporting
relationships?
•  What attributes of the current workforce need to change
for the future?
•  What are the future work and organizational business
requirements?
83	
key	ques*ons	to	explore	when	understanding	future	work	requirements	
include:	?
Understanding Future Work Requirements
Identifying future competencies
Having identified the future work that needs to be
done, we would then need to identify what skills
employees will need to carry out the work;
•  Competencies can be defined organizationally or
on an individual basis
•  The set of competencies that describes the ideal
workforce of the future are then captured within
the Future Workforce Profile
84
•  What new skills are needed for future business and work
requirements?
•  What are the critical core organizational competencies that
will be required to support the organisation’s future vision
and culture?
•  What new knowledge, skills and abilities do specific
positions/job groups/work areas need to perform in the
future?
•  What are the key differences in the current and future
workforce competencies?
85	
key	ques*ons	to	explore	when	iden*fying	future	competencies	include:	
?
Identifying future competencies
Developing forecasting models
The decision to use forecasting models within a workforce
planning exercise depends on the level of complexity,
accuracy and scope required.
•  Forecasting Models use mathematical and statistical
techniques to simulate different organizational
scenarios.
	
•  The models allow the exploration of the relationship
between different human resource issues and how
variations in one component will have an effect on the
workforce under review.
86
87	
Forecasting Model Description
Equilibrium Modeling
Looks at actual numbers and assumes that over time no change will occur
within the system. The benefit of this approach is that it provides baseline data
from which changes can be assessed
Network Flows Mapping
	
Attempts to predict employment outcomes such as retirement,
lateral movement, promotion etc, based upon their links with
other employee characteristics such as salary, skill, age, sex,
etc. These movements are expressed as probabilities and enable a “what if”
type of analysis to be undertaken
Change Forecasting
	
Attempts to forecast employee flows by looking at past
practices. This information is used to project the future availability of employees
whilst making allowances for potential organization change. The statistical
methods employed are predominantly probability and regression analysis
Optimization Models
	
Attempt to identify an “ideal” position or set of future goals using
complex statistical techniques such as linear and goal
programming. They rely heavily on the integration of workforce
planning with strategic or corporate planning
Understanding Future Work Requirements
Developing forecasting assumptions and scenario building
In order to make forecasting more realistic, a range of
assumptions concerning the future can be developed
and incorporated into different scenarios
•  Depending upon the size and complexity of the
scenario, they can be used to propose possible
intervention strategies such as policy changes or
increases/decreases in staffing levels and
finances.
88
•  What are the most critical assumptions to use for
developing scenarios? (in terms of the organisation’s
business directions and risks)
•  What are the different potential pictures of what the
organization could look like?
•  Which scenarios should be used? (in terms of realism,
relevance, challenging the status quo and risk
management for the organization)
89	
key	ques*ons	to	consider	when	developing	scenarios	include:	
?
Developing forecasting assumptions and scenario building
SWP : Steps
90	
Workforce
Analysis
Forecast
Needs
Analyze
Gaps
Develop
Strategies
Implement
Strategies
Monitor &
Evaluate
Activity 1 Activity 2 Activity 3
Identifying & Analyzing
Gaps (Supply / Demand)
Prioritization of Work Identifying Potential
Directions for Action
Identifying and Analyzing gaps
A short fall (when projected supply is less than forecasted demand)
which indicates a future shortage of needed employees or skills.
•  Effective strategies, such as recruitment, training and
succession planning will need to be developed and
implemented.
A surplus (when projected supply is greater than forecasted demand)
which indicates a future excess in some categories of employees
(occupations or employee skills that will not be needed in the future, or
at least not be needed to the same degree).
•  Retraining, transfers or separation incentives are a few examples of
strategies to address surplus situations.
91
Prioritization of Work
Having identified the existence and nature of the
gaps or surpluses, they need to be prioritized
according to those that are most critical to the
organization and the delivery of future goals.	
•  Separating operational short-term and strategic long-term
issues is helpful in determining priorities.
•  Completing a risk assessment of the gaps enables us to
identify strategic high risk areas which basically means; that
all significant risk factors that could prevent the successful
achievement of the organisation’s objectives and performance
targets are well understood and managed.
92
•  Which are the most critical gaps for the organization, in
terms of achievement of future business requirements?
•  Which gaps are related to operational short-term issues?
•  Which gaps are related to strategic long-term issues?
•  What are the risks associated with each gap?
•  What would happen if the gaps are not addressed? How
likely is it to happen?
•  Which risks are acceptable to the organization and which
ones are unacceptable?
93	
key	ques*ons	to	consider	when	priori*zing	the	work	include:	
?
Prioritization of Work
Identifying potential directions for action
The next activity involves the identification of
potential actions to address the prioritized
gaps.
•  Short and long-term actions across HR and organizational
processes need to be considered, and linked to business plans.
•  Understanding the reason for the gap will assist with
identifying potential directions for Action (Root Cause
Analysis)
94
•  Does the agency’s workforce currently have the
anticipated future skills?
•  Is the number of employees with the critical skills
adequate?
•  Are critical skills available in other positions within the
organization?
•  Are there feeder positions for these critical skills?
•  What job functions or skills will no longer be required?
95	
key	ques*ons	to	consider	when	assessing	the	reason	for	the	gap	include:	
?
Identifying potential directions for action
SWP : Steps
96	
Workforce
Analysis
Forecast
Needs
Analyze
Gaps
Develop
Strategies
Implement
Strategies
Monitor &
Evaluate
Activity 1 Activity 2
Strategy
Formulation
Establishing the Case
for Change
Develop Strategies
The strategies (linked to business plans) and action plans
need to specify what is going to be done and when.
Strategies to address workforce planning issues can fall into one of
six categories:
1.  Improving attraction and recruitment strategies
2.  Improving labour supply
3.  Increasing investment in development
4.  Improving employment agility
5.  Improving workforce governance and capability
6.  Improving participation, retention and culture.
97
•  What are the key things the organization needs to
accomplish and by when?
•  Which are the best strategies for the organisation’s
business needs, values and culture?
•  How can strategies, processes, technology, and
management systems be integrated to respond to
changing requirements?
98	
key	ques*ons	to	explore	strategy	formula*on	include:	
?
Develop Strategies
•  How can functional areas such as marketing, finance,
operations and human resource management be
integrated to attain organizational aims and objectives?
•  How can the needs of all key stakeholders be addressed
whilst achieving organizational objectives?
•  What resource and budget allocations are required?
•  How can the current mission be met while simultaneously
and proactively planning and preparing for the future?
99	
key	ques*ons	to	explore	strategy	formula*on	include:	
?
Develop Strategies
Establishing the Case for Change
Establishing the case for change is critical for the success
of any planned strategies and changes.
•  It creates the sense of urgency required to get support and co-
operation from key stakeholders
•  Senior management need to understand the Current situation,
strategic issues and what needs to be done so that they support
and champion workforce planning and change efforts
•  A business case can be developed to support the implementation
of the proposed strategies
100
Establishing the Case for Change
The business case needs to address the following issues:
•  The issue or problem. What needs to be done and why?
•  The risks to the organization if action is not taken
•  An outline of the proposed strategies and actions
•  The options considered and the rationale for choosing the
proposed solution
•  What the proposed strategies/actions will deliver for the
organization, in terms of benefits and return on investment
•  The associated costs and resource implications for
implementing the strategies (in the form of a cost/benefit
analysis)
101
SWP : Steps
10
2	
Workforce
Analysis
Forecast
Needs
Analyze
Gaps
Develop
Strategies
Implement
Strategies
Monitor &
Evaluate
Activity
Execute
Strategies
Execution of Strategies
•  Ensure organizational buy-in and support is obtained
•  Clarify roles and responsibilities in implementing strategies and
actions.
•  Develop project plans for the implementation of each workforce
strategy. This also involves establishing budget and resource
requirements, timelines and milestones for key deliverables
and stages;
•  Determine performance measures, success indicators and
reporting systems
•  Develop communication plans to inform all employees of the
strategies to be implemented: what has been done, why and
how it was developed, how and when it will be applied and how
it will affect staff 103
SWP : Steps
104	
Workforce
Analysis
Forecast
Needs
Analyze
Gaps
Develop
Strategies
Implement
Strategies
Monitor &
Evaluate
Activity 1 Activity 2
Monitor Evaluate
Monitor & Evaluate
Workforce plans and strategies need to be reviewed at
least annually in order to:
•  Review performance measurement information;
•  Assess what’s working and not…
•  Adjust the plan and strategies as necessary; and
•  Address new workforce and organizational issues that might
occur.
•  Organizations that do not engage in systematic reviews of
their workforce planning efforts, are at risk of not been able to
respond to changes as they occur and of ultimately not
achieving their business goals.
105
# Did the project/organization achieve its objectives?
# Reflect on learning that has occurred. What worked well?
What could be improved?
# Where there any unexpected outcomes?
# Were the actions and strategies completed, and do they
fulfill the goals?
# Did the action plan accomplish what the organization
needed?
# If not, have the organisation’s strategies on which the plan
is based changed?
106	
key	ques*ons	to	consider	when	assessing	the	effec*veness	of	workforce	
planning	include:	?
Monitor & Evaluate
# Have the conditions changed so that the strategies and
actions need to be modified?
# Are the workforce planning assumptions still valid?
# Are the skills of employees being developed quickly
enough to become effective?
# Is there any imbalance between workload, workforce or
competencies?
# Do the new recruits possess needed competencies?
# Has the cost to hire been reduced?
# Has overall organization performance increased?
107	
key	ques*ons	to	consider	when	assessing	the	effec*veness	of	workforce	
planning	include:	?
Monitor & Evaluate
108
References
109	
CANNON,	J.A.	and	MCGEE,	R.	(2008)	Organiza*onal	development	and	change.	CIPD	toolkit.	
London:	Chartered	Ins*tute	of	Personnel	and	Development.	
	
FRANCIS,	H.,	HOLBECHE,	L.	and	REDDINGTON,	M.	(2012)	People	and	organiza*onal	
development:	a	new	agenda	for	organiza*onal	effec*veness.	London:	Chartered	Ins*tute	of	
Personnel	and	Development.	
	
STEWART,	J.	and	ROGERS,	P.	(2012)	Developing	people	and	organiza*ons.	London:	Chartered	
Ins*tute	of	Personnel	and	Development.	
	
INCOMES	DATA	SERVICES.	(2011)	Workforce	planning.	HR	studies.	London:	IDS.	
	
TAYLOR,	S.	(2014)	Resourcing	and	talent	management.	6th	ed.	London:	Chartered	Ins*tute	of	
Personnel	and	Development.	
	
CANNON,	J.A.	and	MCGEE,	R.	(2011)	Talent	management	and	succession	planning.	CIPD	
Toolkit.	2nd	ed.	London:	Chartered	Ins*tute	of	Personnel	and	Development.

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Workforce Planning for Reshaping the Present and Reimagining the Future

  • 1. Workforce Planning Reshaping the present. Reimagining the future
  • 2. Value to the Customer 2 A value chain consists of a set of activities involved in delivering a final product or service to a company's or an organization’s customers’ satisfaction… ! Your profit margin is the Value that you can create Minus the Cost of creating that value…
  • 3. How does your Company Create Value? 3
  • 4. Primary activities relate directly to the physical creation, sale, maintenance and support of a product or service. •  Inbound logistics – processes related to receiving, storing, and distributing inputs internally (Value creating factor is SRM) •  Operations – These are the transformation activities that change inputs into outputs that are sold to customers. •  Outbound logistics – delivery of products or services •  Marketing and sales – processes used to persuade clients to purchase from you instead of your competitors. (benefits offered, and how well you communicate them, the CRM is the value here) •  Service – These are the activities related to maintaining the value of your product or service to your customers, once it's been purchased. 4 Which Activities add Value and How?
  • 5. Support Activities : are service providers to the primary functions •  procurement supports operations with certain activities, but it also supports marketing and sales with other activities. Procurement (purchasing) – involves needs assessment, sourcing and negotiating best prices with vendors. Human resource management – This is how well a company recruits, hires, trains, motivates, rewards, and retains its workers. •  People are a significant source of value, so businesses can create a clear competitive advantage with good HR practices. 5 Which Activities add Value and How?
  • 6. Support Activities Cont’d Technological development – These activities relate to managing and processing information, as well as protecting a company's knowledge base. •  Minimizing information technology costs, staying current with technological advances, and maintaining technical excellence are sources of value creation. Infrastructure – These are a company's support systems, and the functions that allow it to maintain daily operations. Accounting, legal, administrative, and general management are examples of necessary infrastructure that businesses can use to their advantage. 6 Which Activities add Value and How?
  • 7. Step 1 – Identify sub activities for each primary activity, which specific sub- activities create value; •  Direct activities create value by themselves. For example, in a book publisher's marketing and sales activity, direct sub activities include making sales calls to bookstores, advertising, and selling online. •  Indirect activities allow direct activities to run smoothly. For the same publisher's sales & marketing activity, indirect sub activities include managing the sales force and keeping customer records. •  Quality assurance activities ensure that direct and indirect activities meet the necessary standards. For the book publisher's sales and marketing activity, this might include proofreading and editing advertisements. 7 Using Porter’s Value Chain Model
  • 8. Step 2 – Identify sub activities for each support activity. ª  For each of the Human Resource Management, Technology Development and Procurement support activities, determine the sub activities that create value within each primary activity. ª  Then identify the various value-creating sub activities in your company's infrastructure. These will generally be cross-functional in nature, rather than specific to each primary activity. Again, look for direct, indirect, and quality assurance activities. 8 Using Porter’s Value Chain Model
  • 9. Step 3 – Identify links Find the connections between all of the value activities you've identified. •  This will take time, but the links are key to increasing competitive advantage from the value chain framework. o  For example, there's a link between developing the sales force (an HR investment) and Sales volumes. o  There's another link between order turnaround times, and service phone calls from frustrated customers waiting for deliveries. 9 Using Porter’s Value Chain Model
  • 10. Value Chain : Public Sector 10
  • 11. Organizational Development OD is a planned and systematic approach to enabling sustained organizational performance through research, theory, and practice dedicated to expanding the knowledge and effectiveness of its most important resource, its’ people… 11
  • 12. Organizational Development - What A system-wide process of data collection, diagnosis, action planning, intervention, and evaluation aimed at; ü  enhancing congruence (gluing together) among environment, resources, history |organizational structure, process, strategy, people, culture and systems (Inputs-Org Elements- Outputs) ü  developing the organisation’s self-renewing capacity through the collaboration of organizational members working with a change agent using behavioral science theory, research and technology 12
  • 13. Why Org. Dev.? – Current State 13 Organization Low Produc*vity High Turnover Inter Dept. Conflicts Poor Alignment to Organiza*on’s Strategy Unclear Goals Poorly Designed tasks Poor Team Performance Fire Figh*ng Work Approach Low Morale Inappropriate leadership style Interpersonal conflicts Lack of Innova*on Poor Customer Service Loss of Market Share
  • 14. Organizational Development - How •  OD applies to changes in the strategy, structure, and/ or processes of an entire organization, a department or work group, or individual role or job. •  OD is based on the application and transfer of behavioral science knowledge and practice (such as leadership, group dynamics and work process design), and is distinguished by its systematic ability to transfer such knowledge and skill so that the system is capable of carrying out more planned change in the future. 14
  • 15. Organizational Development - How •  OD is concerned with creation and managing planned change, in a flexible manner that can be revised as new information is gathered. •  OD is geared towards improving effectiveness by: •  helping members of the organization to gain the skills and knowledge necessary to solve problems by involving them in the change process… •  by promoting high performance including financial returns, high quality products and services, high productivity, continuous improvement and a high quality of working life. 15
  • 16. Organizational Dev. - Cycle 16 Credits : wwu.edu Employee Input & Discussion view points Seek to Improve Effec*veness & solve opera*onal problems People, the roles they undertake, the systems and culture within they operate Change Management principles to change deployment, stabiliza*on, and the evalua*on loop for the next level of organiza*onal development Analy*cal findings are the base for OD interven*ons planning
  • 17. OD & HR OD and its methods play a part in developing HR’s strategic role and its involvement in organizational change and culture. •  OD work is based upon robust diagnosis that uses real data from organizational, behavioral and psychological sources. •  OD work is planned and systemic in its focus and takes account of the whole organization, views and culture. •  OD practitioners help to create alignment between different activities, projects and initiatives. •  OD work involves groups of people in the organization to maximize engagement, ownership and contribution. 17
  • 18. OD & HR In defining OD, and the associated skills required by an HR professional, emphasis is placed on the need to see OD as a continuous review process rather than a one-off change intervention. •  OD requires sophisticated people management skills and can enable HR to develop the deep organizational insight required to ensure the relationship between the business and its people delivers win-win solutions for both. 18
  • 19. Avoid Workforce Capacity Shortfalls Reduce Workforce Sourcing Costs Create Effective management structures Develop a Competitive Workforce Outcome Measure Churn rates Workforce Planning Acquisition & Movement Workforce Performance Learning & Development Employee Retention Business Insights 1. HR Needs (Current & Forecasted) 2. Workforce Related Actions 1. Effectiveness of Recruiting Efforts 2. Workforce Migration 1. Efficient use of Top Performers 2. Impact on Retention 3. Effective Management Structures 1. Efficacy of Development Programs 2. Alignment of Progression to Development 1. Turnover issues 2. Loss of Development Investments 19 Human Resource Management & Development Strategy Strategy
  • 20. Organizational Objectives The overall goals, purpose and mission of a business that have been established by its management and clearly communicated to its employees. •  Typically focus on its long range intentions for operating and its overall business philosophy that can provide substantial guidance for employees seeking to add value to the process flow in their own areas. 20
  • 21. Organizational Objectives Profitability : Maintaining profitability means making sure that revenue stays ahead of the costs of doing business •  Focus on controlling costs in both production and operations while maintaining the profit margin on products sold. Productivity : Provision of all of the resources your employees (training, equipment, materials, financials) need to remain as productive as possible. 21
  • 22. Organizational Objectives 22 Customer Service (CRM) Clear customer service levels help retain clients and generate repeat revenue. 22
  • 23. Organizational Objectives Change Management : is the process of preparing your organization for dynamic but sustainable growth and creating processes that effectively deal with a developing marketplace. Marketing : more than creating advertising and getting customer input on product changes. It is understanding consumer buying trends, being able to anticipate product distribution needs and developing business partnerships that help your organization to improve market share. 23
  • 24. Organizational Objectives Human Resources objectives cover organizational structure, culture, staffing needs, employee training, talent development and productivity improvement goals as well as reduction of employee turnover by introducing new employee assistance programs. •  Maintaining a productive and positive employee environment improves retention 24
  • 25. Organizational Structure Departmentalization is an aspect of organizational design that includes the subdivision of a business into units based on their function or other criteria. Standard methods of departmentalization include grouping jobs by; •  Functional activities •  Product types •  Customer groups •  Geography or location •  Processes 25
  • 26. Org. Structure : Departments 26 a.  Functional departmentalization—jobs are grouped by the functions (i.e., marketing, finance, human resources) performed. •  Can be used in all types of organizations, although the functions change to reflect the organization’s objectives and work activities. b.  Product (or Service) departmentalization—jobs are grouped by product line. •  Here, each major product area is placed under the authority of a manager who’s a specialist in, and is responsible for, everything having to do with that particular product or service line.
  • 27. Org. Structure : Departments 27 c.  Geographical departmentalization—jobs are grouped on the basis of a territory or geography such as; Midwestern or northwestern regions for an organization operating only in the United States; or for a global company, maybe U.S., European, Canadian, MENA and Asian-Pacific regions. d.  Process departmentalization—this method groups specialized process jobs on the basis of product or customer flow. •  In this approach, work activities follow a natural processing flow of product or even customers.
  • 28. Org. Structure : Departments 28 e.  Customer departmentalization—jobs are grouped on the basis of common customers who have common needs or problems that can best be met by having specialists for each. In an organizational structure, “chain of command” refers to a company's hierarchy of reporting relationships -- from the bottom to the top of an organization, who must answer to whom. •  The chain of command not only establishes accountability, it lays out a company's lines of authority and decision-making power.
  • 29. Org. Structure : Departments 29 Pyramid/Hierarchy : Centralized An organization using a pyramid or hierarchy structure has a leader who is responsible for and makes all the decisions affecting the organization as well as manages other organizational members (Functional heads). Matrix Matrix organizations assign employees to two reporting lines; One hierarchy is functional and assures that experts in the organization are well-trained and assessed by bosses who are highly qualified in the same areas of expertise. Another is executive and works to ensure the experts bring specific projects or goals to completion…
  • 30. Org. Structure : Departments 30 Matrix Structures : Cont’d •  Weak/Functional Matrix: A project manager with limited authority is assigned to oversee cross-functional aspects of the project. Functional managers maintain control over their resources and project areas. •  Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is shared equally between the project manager and functional managers, combining the best aspects of functional and project-oriented organizations. This system is the most difficult to maintain because of difficulties in power-sharing. •  Strong/Project Matrix: A project manager is primarily responsible for the project. Functional managers provide technical expertise and assign resources as needed.
  • 31. Org. Structure : Departments 31 Ecology : Decentralized Each business unit (operating autonomously with clearly defined, measureable goals) represents an individual profit center that holds employees accountable for the unit's profitability. •  These kinds of organizations foster intense competition, as all members are paid for the actual work they perform. •  Ineffective parts of the organization are left to fail and thriving parts are rewarded with more work.
  • 32. Org. Structure : Functional 32
  • 33. Org. Structure : Matrix 33
  • 34. Org. Structure & Strategy Business strategy is a practical plan for achieving an organization's mission and objectives. Strategic management is the comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision and strategy throughout an organization Organizational structure is the formal layout of a company's hierarchy. 34
  • 35. Org. Structure & Strategy McKinsey 7S Model The Hard elements (red circles) are feasible and easy to identify. They can be found in strategy statements, corporate plans, organizational charts and other documentations. The Soft S’s are capabilities, values and elements of corporate culture are continuously developing and changing. 35
  • 36. Org. Structure & Strategy McKinsey 7S Model The Hard S’s Strategy: Actions a company plans in response to or anticipation of changes in its external environment. Structure: Basis for specialization and co-ordination influenced primarily by strategy and by organization size and diversity. Systems: Formal and informal procedures that support the strategy and structure. (Systems are more powerful than they are given credit) 36
  • 37. Org. Structure & Strategy McKinsey 7S Model The Soft S’s Style/Culture: Org. Culture/Management Style •  Organizational Culture: the dominant values and beliefs, and norms, which develop over time & become relatively enduring features of organizational life… •  Management Style: more a matter of what managers do than what they say; How do a company’s managers spend their time? What are they focusing attention on? Symbolism – the creation and maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of managers 37
  • 38. The Soft S’s Staff: People/Human resource management – processes used to develop managers, in-house networking, shaping of basic values, new staff orientation, helping to manage employee careers. Skills: The distinctive competences – what the company does best, ways of improving or shifting competences Shared Values / Superordinate Goals: Guiding concepts, fundamental ideas around which a business is built – must be simple, usually stated at abstract level, have great meaning inside the organization even though outsiders may not see or understand them. McKinsey 7S Model
  • 39. Strategic Vs Workforce Planning Strategic HR Planning considers the business risks concerning insufficient, disrupted, mis- deployed talent as organization’s business priorities. Workforce planning is considered an iterative discipline (repetition while seeking continuous improvement) . •  The cycle of workforce planning includes filling resource requests, analyzing resource utilization, forecasting capacity, managing and identifying the resources (human) to fill that capacity gap (supply/ demand), and then re-starting the cycle. 39
  • 40. Strategic Planning : Key Business Drivers 40 Key Business Driver : A resource, process or condition that is vital for the continued success and growth of a business… Sample Drivers
  • 41. Workforce Planning : Definitions Chartered Ins*tute of Personnel and Development A Core Process of the Human Resource Management function shaped by the organizational strategy that ensures the right number of people with the right skills are employed in the right place at the right time to deliver the organisation’s short & long-term objectives and vision….yes at the right cost! •  Succession planning •  Labour demand and supply forecasting •  Recruitment and Retention planning •  Skills audit gap analysis •  Multi-skilling & Career planning •  Risk management •  Outsourcing 41
  • 42. 5Rs of Work Force Planning 42
  • 43. Workforce Planning : Definitions Can also be defined as the continuous planning process of shaping and structuring the workforce to ensure there is sufficient and sustainable capability to meet organizational objectives now and in the future. Key considerations in planning; •  What is the current situation ~ where are we now? •  What are the future requirements ~ where are we headed? •  What is needed to bridge the gap ~ how do we get there? 43
  • 44. Workforce Planning : Definitions Operational workforce planning functions on a person-to-person level and streamlines employee-related operations day by day. •  Optimizing work schedules and employee hours •  Optimizing the distribution of talent among divisions and departments •  Identifying functional needs and hiring new workers to meet those needs •  Identifying obsolete functions and reassigning workers as necessary •  Ensuring the greatest possible overall worker job satisfaction 44
  • 45. Workforce Planning : Definitions Strategic workforce planning deals with broad-based issues that evolve over months and years and can encompass all the aspects of an enterprise. •  Forecasting knowledge drain as employees leave (or age out)the organization •  Forecasting future talent needs •  Determining and evaluating likely future sourcing options •  Implementing an effective workforce analytics strategy 45
  • 46. Workforce Planning : Definitions 46 Credits : FAHR_AE
  • 47. WP & HR : Why all the noise? Aging Workforce : shortage of new skills and increasing tide of ‘boomers’ reaching retirement Globalization : companies now have multiple international locations to plan for, source, manage and also integrate into the strategic processes Contracting & Outsourcing : need to know when, how and where to be included in workforce planning while keeping inline with the local cultural, legislative and statutory policy. 47
  • 48. WP & HR : Why all the noise? Mergers & Acquisitions : may increase the number of workers with similar skill sets but company may lose them in transition Enhanced Technology (Robotics) : replacing one skill set but creating a need for another Critical Industry Needs : Public Sector, Healthcare, Technology, Energy… 48
  • 49. Workforce Planning & HR Talent acquisition as well as strategic positioning, development, and subsequent retention are key HRM/D areas that begin with considering all potential access sources (employment, out sourcing, partnerships, changing business activities to modify the types of talent required, etc.). 49 G A P Strategic Business Planning HR Strategies Workforce Planning Address Gaps Set Priori*es Iden*fy Gaps
  • 50. Strategic Workforce Planning : Drivers 1.  Find the Right Champion/Project Leader Strategic Workforce Planning (SWP) requires credible and influential champions to drive, support, and sustain a change in evolving markets. •  While a strong HR professional can be an effective champion in some organizations, experience has shown that a champion from the business side is critical. 2.  First, Believe … Then Execute and Evaluate Organizations that implement SWP have a fundamental belief that a more strategic, rigorous, and data-based approach to workforce planning is critical to strategy execution and, ultimately, yielding of significant benefits. 50
  • 51. Strategic Workforce Planning : Drivers 3.  Talent Segmentation is a Disciplined Art, Not an Exact Science : Figuring how to segment job roles isn’t the same as segmenting people. •  It’s important to look at talent and how to determine which roles are critical for driving your firm’s long-term competitive advantage. 4.  Sound Judgment Is Still Required Think SWP is a cure-all? It’s actually a decision-support mechanism—not a decision-making expert system. •  Rely on SWP to uncover data, disconnects, trouble spots & to zero in on potential opportunities and make better business planning decisions. 51
  • 52. Strategic Workforce Planning : Drivers 5.  Integrate with other Key strategies SWP can’t stand alone. For success and long-term sustainability, it’s important to make sure you link it with other processes such as strategic planning, operations planning, and talent development. 6.  Human Resources Sets the Table An organization’s leaders play a critical role in SWP. But HR is just as important in supporting and facilitating any implementing and ongoing management. So be sure to engage across functions to drive business performance. 52
  • 53. An organization’s ability to learn, understand, and transform new ideas into action rapidly (from Strategic to Tactical Level) is the ultimate competitive advantage… Jack Welch, Former CEO, GE Creating Competitive Advantage…. 53
  • 54. SWP : Benefits ü  Creates a clear view of talent demand and supply issues by expense area, reporting relationship, and by location. ü  Provides managers easy-to-use reports and tools to determine the impact of their talent decisions and prioritizes future workforce investments. ü  Provides leaders the right metrics—identifying talent risk before it impacts business objectives. ü  Provides a mechanism for monitoring costs and directly linking expenditure of personnel against business outputs and outcomes. 54
  • 55. SWP : Benefits ü  Helps control unplanned talent costs and highlights issues that limit employee productivity. ü  Builds competitive advantage through Proactive rather than reactive talent management. ü  Improve efficiency, effectiveness and productivity (employees possess the right skills and are a good fit for the job) ü  Facilitate strategic staffing and planning for future workforce requirements (can identify staffing needs in a timely manner, monitor attrition and ensure replacements are available to fill key vacancies) 55
  • 56. SWP Considerations : Demographics (The Generation Mix) 56 Baby Boomers Born : 1945 – 1964 Shaped by : Less Trust in Government Genera*on X Born : 1965 – 1980 Shaped by : internet, diversity, parental divorce rates, unemployment Genera*on Y Born : 1981 – 1994 Shaped by : informa*on overflow, globaliza*on Genera*on Z Born : 1995 – 2010 Shaped by : Tech savvy, strong work ethic Genera*on Alpha Born : 2010 + Even more tech savvy More in numbers due to birth spike Most formally educated
  • 57. SWP : Steps 57 Translate Business Strategy into Value drivers Current Workforce Analysis Forecasting Future Workforce Demandvs. supply Identify and Analyze Gaps Develop Strategies Implement Talent strategy to close Gaps Monitor & Evaluate Iden*fy values drivers (e.g. cri*cal ac*vi*es, func*ons and processes) to achieve the business strategy Analyze workforce against org. direc*on, internal workforce characteris*cs and capabili*es, external labour market and environmental factors Determine headcount demand vs. supply in each role, while factoring both internal and external labor market dynamics The gaps between future workforce needs and current workforce profile are iden*fied and analyzed Integrated business and HR strategies are developed to address the gaps between current and future workforce needs Investment in strategies and change management processes to address workforce planning issues Strategic Workforce Planning Effec*veness of strategies is evaluated to determine success of planned changes and impact on business performance
  • 58. SWP : Steps 1.  Understanding the organisation’s strategic direction and its impact on the workforce 2.  Analyzing the current and Forecasting the future workforce needs and competencies 3.  Analyzing the gap between the current and future needs 4.  Developing strategies to address workforce gaps 5.  Implementing strategies to align the workforce with future business needs 6.  Evaluating and Monitoring the success of the workforce planning strategies in meeting objectives 58
  • 59. SWP : Critical Issue of Scope Before starting any SWP effort, the organization needs to determine the scope of their workforce plan (either entire workforce or limited segment). •  This involves identifying which jobs or areas of the workforce to be analyzed; o  Mission-critical occupations, key employees/ roles or branches o  Occupations and skills that are difficult to recruit or retain o  A particular strategy to ensure that the right people are available to get particular work done 59
  • 60. SWP : Critical Issue of Scope " Will it be difficult to replace some of the people who are likely to retire soon? " Do these people have significant relationships with key stakeholders? " Are they critical to the development or maintenance of intellectual capital? " Do they represent a major, important component of the corporate culture? " Are their skills transferable? 60 Some Key Questions to determine the Scope will include but not limited to; ?
  • 61. Scope : Workforce Segmentation HR professionals separate the various components of their organization's workforce in order to fit policies and practices to each particular segment. •  Such customizations impact recruitment, training and development, compensation, succession and outsourcing •  The Traditional model is based on job evaluations, and salary levels which may result into SWP problems. o  This model serves as a basis for accountability/ responsibility, decision-making and limits of authority, but it is not an appropriate for developing tailored attraction, engagement and workforce retention strategies. 61
  • 62. Scope : Workforce Segmentation a)  The Traditional (hierarchy based) segmentation model has several flaws which include; o  a waste of resources (e.g., could include paying the wrong people too much and the right people too little) o  operational inefficiencies and poorer performance by having inexperienced people in important roles o  salary levels are more a reflection of market forces and internal equity which may not necessarily reflect the true value of the importance of the role in terms of value creation, competitive advantage and their impact on business outcomes 62
  • 63. b)  The Skills Based segmentation model takes into account both the value & uniqueness of skills relative to role… 1.  Criticals (with a turnover multiple of between 1 – 2.5) 2.  Professionals, Skilled (T/O multiple of between 0.5 – 1) 3.  Doers (with a turnover multiple of between 0.3 – 0.5) 4.  Specialists (with a turnover multiple of between 1 – 1.5) •  Each of these role types has a different psychological contract (or employer/employee relationship or “deal”/Employment Value Propositions {EVP}), with different levels of investment in employees, and different turnover cost implications. 63 Scope : Workforce Segmentation
  • 64. Scope : Skills Based Segmentation 64
  • 65. Scope : Skills Based Segmentation 65 Identifying Critical Roles (valuable and unique skills) •  Roles come first before taking into consideration the people occupying those roles (e.g., capability, development needs, engagement, retention risk) Outsourcing Roles •  Roles residing in quadrants 2 and 3 are more amendable to outsourcing considerations. These roles are also likely to be “buy” (i.e., acquire ready made from the market), rather than “make” (i.e., develop from within including the associated investment – 1 and 4) roles
  • 66. 66 HR Policies and Practices by Workforce Segment
  • 67. 67 Sample Analysis and Classification of Roles by Skills’
  • 68. Turnover Cost : Looking at the Numbers 68 CRITICALS PROFESSIONALS DOERS SPECIALISTS #Staff 50 175 150 30 Annual Voluntary Turnover 12% 15% 17% 7% 6 Lej 26 Lej 25 Lej 2 Lej Average Salary $180k $100k $50k $80k T/O mul*ple 2 0.5 0.3 1.5 Cost of T/O per Annum (T/O multiple*Av.Salary*Annual T/O) $2.16m $1.3m $.375m $.24m The cost of 6 Criticals leaving ($2.16 million) is much more significant than the cost of 26 Professionals leaving ($1.3 million) and 25 Doers leaving ($0.375 million). Hence the need to calculate the cost of turnover on a workforce segment basis.
  • 69. SWP : Steps 69 Workforce Analysis Forecast Needs Analyze Gaps Develop Strategies Implement Strategies Monitor & Evaluate Activity 1 Activity 2 Reviewing Organization Direction & External Environment Analyzing Internal and External Labour Forces “Lets dip deep into strategy, market research and analytics”…
  • 70. Reviewing Organization Direction & External Environment •  Where is the organization going in the next three to five years? •  What are the organisation’s current and future business, work functions and activities? •  What are the required workforce composition and competencies? •  What are the anticipated changes over the planning period? 70 key questions to explore when reviewing organization direction and external environment;?
  • 71. Reviewing Organization Direction & External Environment •  What does the current and future labour market look like (regarding the availability of certain occupations and the people necessary to fill them)? •  What is the impact of current or future government regulations •  What are the sources of competition for attracting people (salary, benefit packages, etc)? •  What other trends may impact the organization (such as trends towards decentralization, outsourcing or restructuring)? 71 key questions to explore when reviewing organization direction and external environment;?
  • 72. •  What does the current and future labour market look like (regarding the availability of certain occupations and the people necessary to fill them)? •  What is the impact of current or future government regulations •  What are the sources of competition for attracting people (salary, benefit packages, etc)? •  What other trends may impact the organization (such as trends towards decentralization, outsourcing or restructuring)? 72 key questions to explore when reviewing organization direction and external environment;? Reviewing Organization Direction & External Environment
  • 73. Analyzing internal and External labour forces Analyzing the internal and external labour force will enable an organization to identify: ü  The composition, characteristics, competencies and supply of current labour for the organization (from internal and external sources) ü  The type of jobs and skills available internally and externally. 73
  • 74. Analyzing internal and External labour forces Internal workforce information can be collected through a range of quantitative and qualitative methods that include: •  Competency assessments – surveys of managers and employees •  Workload data – line managers complete reporting templates with instructions and formulas on how to calculate workload •  Workforce data – personnel records and human resource systems. 74
  • 75. Analyzing internal and External labour forces Monitoring external labour market changes ensures: •  Sufficient numbers of replacement staff are available to cover separation and growth •  The contingent workforce relied upon by the organization is maintained at adequate Levels •  Intelligence is gathered to contribute to the decision of whether the organization “builds or buys” specific workforce skills and numbers required. “this data can be collected from labor websites, databases, career fairs etc.” 75
  • 76. Analyzing Internal labour forces 76 Demographic data Trend data (for a historical picture) Number of employees, FTE and headcount Resignation/separation/turnover rates Job classification/occupation Retirement patterns/rates Salary level Voluntary separation rates Age distribution Leave patterns (sick leave, long service, family/parental leave) Gender breakdown Recruitment and vacancies patterns Nationality and diversity characteristics Promotion and transfer patterns (ie. mobility within agency) Education level/qualifications Skills gaps Employment status Skills gaps (eg. ongoing, fixed-term contract) Competency levels
  • 77. •  What are the competencies, attributes and composition of the current workforce? •  What is the current workload? •  What are current and projected retirements, turnover, secondments, etc.? •  What is the current year labour budget? •  What current skills are essential to the business? •  What is the demand for and availability of these skills in the external labour market? •  What occupational groups or skills does the organization currently obtain via contracts or casual employment? 77 key ques*ons to explore when analyzing the internal and external workforce include: ? Analyzing internal and External labour forces
  • 78. •  What are the key characteristics/skills/profile of employees on contracts and casuals? •  What is the labour market like (re: availability of qualified candidates, ability to recruit these candidates, and organizational challenges (i.e. internal constraints) in recruiting competitively? •  What are the trends in external benchmarking data (re: rates of pay, skill availability)? •  What are the trends in external environmental data (ie. inflation, competition, unemployment)? 78 key ques*ons to explore when analyzing the internal and external workforce include: ? Analyzing internal and External labour forces
  • 79. SWP : Steps 79 Workforce Analysis Forecast Needs Analyze Gaps Develop Strategies Implement Strategies Monitor & Evaluate Activity 1 Activity 2 Activity 3 Activity 4 Understanding Future Work Requirements Identifying Future Competencies Developing Forecasting Models Developing Forecasting Assumptions & Scenarios
  • 80. Understanding Future Work Requirements Inputs to identifying future work requirements for the organization include: •  Organizational business plans and vision •  Current workforce profile (including competency levels, composition and numbers). 80
  • 81. 81 Techniques Description When to Use Focus Group Small group facilitated discussion enables anecdotal evidence to be obtained Highly specialized fields, to gain information quickly Survey Employee surveys of intentions can help predict likely outcomes and identify impending changes Best conducted on a regular basis to obtain trends, high reliability Delphi technique Draws together subject matter experts and engages them in assessing likely impacts and their assessments of future directions and trends Specialized area, to obtain senior input Force field analysis Small group brainstorm force field analysis to identify forces that promote and resist change Significant external barriers present Scenario planning Narrative statements of possible futures for the organization Lack of clarity and ambiguity of future Understanding Future Work Requirements
  • 82. •  What type of work will be done in the future? •  How will this new work be performed? •  How does this work differ from current work requirements? •  What work/job roles/positions will be critical to the organization in the future? •  How will jobs and workload change as a result of future technological advancements, economic, social and political conditions? 82 key ques*ons to explore when understanding future work requirements include: ? Understanding Future Work Requirements
  • 83. •  How will the organization need to be structured to support future work requirements? •  How will work flow into each part of the organization? What will be done with it? What will be the reporting relationships? •  What attributes of the current workforce need to change for the future? •  What are the future work and organizational business requirements? 83 key ques*ons to explore when understanding future work requirements include: ? Understanding Future Work Requirements
  • 84. Identifying future competencies Having identified the future work that needs to be done, we would then need to identify what skills employees will need to carry out the work; •  Competencies can be defined organizationally or on an individual basis •  The set of competencies that describes the ideal workforce of the future are then captured within the Future Workforce Profile 84
  • 85. •  What new skills are needed for future business and work requirements? •  What are the critical core organizational competencies that will be required to support the organisation’s future vision and culture? •  What new knowledge, skills and abilities do specific positions/job groups/work areas need to perform in the future? •  What are the key differences in the current and future workforce competencies? 85 key ques*ons to explore when iden*fying future competencies include: ? Identifying future competencies
  • 86. Developing forecasting models The decision to use forecasting models within a workforce planning exercise depends on the level of complexity, accuracy and scope required. •  Forecasting Models use mathematical and statistical techniques to simulate different organizational scenarios. •  The models allow the exploration of the relationship between different human resource issues and how variations in one component will have an effect on the workforce under review. 86
  • 87. 87 Forecasting Model Description Equilibrium Modeling Looks at actual numbers and assumes that over time no change will occur within the system. The benefit of this approach is that it provides baseline data from which changes can be assessed Network Flows Mapping Attempts to predict employment outcomes such as retirement, lateral movement, promotion etc, based upon their links with other employee characteristics such as salary, skill, age, sex, etc. These movements are expressed as probabilities and enable a “what if” type of analysis to be undertaken Change Forecasting Attempts to forecast employee flows by looking at past practices. This information is used to project the future availability of employees whilst making allowances for potential organization change. The statistical methods employed are predominantly probability and regression analysis Optimization Models Attempt to identify an “ideal” position or set of future goals using complex statistical techniques such as linear and goal programming. They rely heavily on the integration of workforce planning with strategic or corporate planning Understanding Future Work Requirements
  • 88. Developing forecasting assumptions and scenario building In order to make forecasting more realistic, a range of assumptions concerning the future can be developed and incorporated into different scenarios •  Depending upon the size and complexity of the scenario, they can be used to propose possible intervention strategies such as policy changes or increases/decreases in staffing levels and finances. 88
  • 89. •  What are the most critical assumptions to use for developing scenarios? (in terms of the organisation’s business directions and risks) •  What are the different potential pictures of what the organization could look like? •  Which scenarios should be used? (in terms of realism, relevance, challenging the status quo and risk management for the organization) 89 key ques*ons to consider when developing scenarios include: ? Developing forecasting assumptions and scenario building
  • 90. SWP : Steps 90 Workforce Analysis Forecast Needs Analyze Gaps Develop Strategies Implement Strategies Monitor & Evaluate Activity 1 Activity 2 Activity 3 Identifying & Analyzing Gaps (Supply / Demand) Prioritization of Work Identifying Potential Directions for Action
  • 91. Identifying and Analyzing gaps A short fall (when projected supply is less than forecasted demand) which indicates a future shortage of needed employees or skills. •  Effective strategies, such as recruitment, training and succession planning will need to be developed and implemented. A surplus (when projected supply is greater than forecasted demand) which indicates a future excess in some categories of employees (occupations or employee skills that will not be needed in the future, or at least not be needed to the same degree). •  Retraining, transfers or separation incentives are a few examples of strategies to address surplus situations. 91
  • 92. Prioritization of Work Having identified the existence and nature of the gaps or surpluses, they need to be prioritized according to those that are most critical to the organization and the delivery of future goals. •  Separating operational short-term and strategic long-term issues is helpful in determining priorities. •  Completing a risk assessment of the gaps enables us to identify strategic high risk areas which basically means; that all significant risk factors that could prevent the successful achievement of the organisation’s objectives and performance targets are well understood and managed. 92
  • 93. •  Which are the most critical gaps for the organization, in terms of achievement of future business requirements? •  Which gaps are related to operational short-term issues? •  Which gaps are related to strategic long-term issues? •  What are the risks associated with each gap? •  What would happen if the gaps are not addressed? How likely is it to happen? •  Which risks are acceptable to the organization and which ones are unacceptable? 93 key ques*ons to consider when priori*zing the work include: ? Prioritization of Work
  • 94. Identifying potential directions for action The next activity involves the identification of potential actions to address the prioritized gaps. •  Short and long-term actions across HR and organizational processes need to be considered, and linked to business plans. •  Understanding the reason for the gap will assist with identifying potential directions for Action (Root Cause Analysis) 94
  • 95. •  Does the agency’s workforce currently have the anticipated future skills? •  Is the number of employees with the critical skills adequate? •  Are critical skills available in other positions within the organization? •  Are there feeder positions for these critical skills? •  What job functions or skills will no longer be required? 95 key ques*ons to consider when assessing the reason for the gap include: ? Identifying potential directions for action
  • 96. SWP : Steps 96 Workforce Analysis Forecast Needs Analyze Gaps Develop Strategies Implement Strategies Monitor & Evaluate Activity 1 Activity 2 Strategy Formulation Establishing the Case for Change
  • 97. Develop Strategies The strategies (linked to business plans) and action plans need to specify what is going to be done and when. Strategies to address workforce planning issues can fall into one of six categories: 1.  Improving attraction and recruitment strategies 2.  Improving labour supply 3.  Increasing investment in development 4.  Improving employment agility 5.  Improving workforce governance and capability 6.  Improving participation, retention and culture. 97
  • 98. •  What are the key things the organization needs to accomplish and by when? •  Which are the best strategies for the organisation’s business needs, values and culture? •  How can strategies, processes, technology, and management systems be integrated to respond to changing requirements? 98 key ques*ons to explore strategy formula*on include: ? Develop Strategies
  • 99. •  How can functional areas such as marketing, finance, operations and human resource management be integrated to attain organizational aims and objectives? •  How can the needs of all key stakeholders be addressed whilst achieving organizational objectives? •  What resource and budget allocations are required? •  How can the current mission be met while simultaneously and proactively planning and preparing for the future? 99 key ques*ons to explore strategy formula*on include: ? Develop Strategies
  • 100. Establishing the Case for Change Establishing the case for change is critical for the success of any planned strategies and changes. •  It creates the sense of urgency required to get support and co- operation from key stakeholders •  Senior management need to understand the Current situation, strategic issues and what needs to be done so that they support and champion workforce planning and change efforts •  A business case can be developed to support the implementation of the proposed strategies 100
  • 101. Establishing the Case for Change The business case needs to address the following issues: •  The issue or problem. What needs to be done and why? •  The risks to the organization if action is not taken •  An outline of the proposed strategies and actions •  The options considered and the rationale for choosing the proposed solution •  What the proposed strategies/actions will deliver for the organization, in terms of benefits and return on investment •  The associated costs and resource implications for implementing the strategies (in the form of a cost/benefit analysis) 101
  • 103. Execution of Strategies •  Ensure organizational buy-in and support is obtained •  Clarify roles and responsibilities in implementing strategies and actions. •  Develop project plans for the implementation of each workforce strategy. This also involves establishing budget and resource requirements, timelines and milestones for key deliverables and stages; •  Determine performance measures, success indicators and reporting systems •  Develop communication plans to inform all employees of the strategies to be implemented: what has been done, why and how it was developed, how and when it will be applied and how it will affect staff 103
  • 105. Monitor & Evaluate Workforce plans and strategies need to be reviewed at least annually in order to: •  Review performance measurement information; •  Assess what’s working and not… •  Adjust the plan and strategies as necessary; and •  Address new workforce and organizational issues that might occur. •  Organizations that do not engage in systematic reviews of their workforce planning efforts, are at risk of not been able to respond to changes as they occur and of ultimately not achieving their business goals. 105
  • 106. # Did the project/organization achieve its objectives? # Reflect on learning that has occurred. What worked well? What could be improved? # Where there any unexpected outcomes? # Were the actions and strategies completed, and do they fulfill the goals? # Did the action plan accomplish what the organization needed? # If not, have the organisation’s strategies on which the plan is based changed? 106 key ques*ons to consider when assessing the effec*veness of workforce planning include: ? Monitor & Evaluate
  • 107. # Have the conditions changed so that the strategies and actions need to be modified? # Are the workforce planning assumptions still valid? # Are the skills of employees being developed quickly enough to become effective? # Is there any imbalance between workload, workforce or competencies? # Do the new recruits possess needed competencies? # Has the cost to hire been reduced? # Has overall organization performance increased? 107 key ques*ons to consider when assessing the effec*veness of workforce planning include: ? Monitor & Evaluate
  • 108. 108
  • 109. References 109 CANNON, J.A. and MCGEE, R. (2008) Organiza*onal development and change. CIPD toolkit. London: Chartered Ins*tute of Personnel and Development. FRANCIS, H., HOLBECHE, L. and REDDINGTON, M. (2012) People and organiza*onal development: a new agenda for organiza*onal effec*veness. London: Chartered Ins*tute of Personnel and Development. STEWART, J. and ROGERS, P. (2012) Developing people and organiza*ons. London: Chartered Ins*tute of Personnel and Development. INCOMES DATA SERVICES. (2011) Workforce planning. HR studies. London: IDS. TAYLOR, S. (2014) Resourcing and talent management. 6th ed. London: Chartered Ins*tute of Personnel and Development. CANNON, J.A. and MCGEE, R. (2011) Talent management and succession planning. CIPD Toolkit. 2nd ed. London: Chartered Ins*tute of Personnel and Development.