Workforce Optimization ModelWorkforce Optimization Model

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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/workforce-optimization-model-3023 DOCUMENT DESCRIPTION Workforce Optimization Model helps explaining the position of Human Resources within the overall corporate strategy. It illustrates the formula for organizational efficiency with respect to the strategy and all its input elements. The model then presents the two probable scenarios of workforce utilization and the plausible consequences and impact on organizational efficiency. The last four slides are practical template for optimized workforce utilization plan.

Business

Efficiency..
Output
Input
Efficiency =
= Value
= Value
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Effective Efficient Risk
Human Resources
Fully competent,
Continuously learning,
rowing in the right
direction
Fully utilized, just the
right size, compensation
linked to productivity
?
What if..?
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“The Vital Few and the Trivial Many”
Pareto’s Principle – The 80-20 rule
Value
High
Low
CompetentWF
Few
Many
High Competency
Low Competency
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Consequences of Scenario I
• Productive WF volume is not enough to achieve the desired
outcomes.
• Outcome would be less than expected.
• Cost of overall WF is higher compared to value of outcomes.
• Productive WF is overstretched which will cause frustration and
stress.
• Since WF cost is high relative to outcomes there is less room for
incentives and rewards.
• Productive WF will get demotivated and discouraged.
• Turnover will increase amongst valuable productive WF.
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Single Division, Section and Unit
OutcomesStrategyHuman Resources
Efficiency
Value (Allocated
budget )Cost
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Priority 1
Objective 1-1-1 Initiative 1-1-2
Activity Activity Activity Activity
Priority 2
Initiative 2-1-1 Objective 2-1-2
Activity Activity Activity Activity
Single Division, Section and Unit
OutcomesStrategyHuman Resources
Measured
through KPIs
30%
35%
35%
50%
25%
25%
35%
30%
35%
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