Strategic workforce planning (SWP) aligns an organization's workforce with its business strategy. SWP provides quantitative insights into how to enhance productivity and ensure risks to business strategy implementation related to human resources are considered. SWP benefits include improved employee engagement, having the right skills, and reduced costs. SWP involves analyzing workforce supply and demand through scenarios to develop resource plans that can adapt to changes. SWP frameworks find solutions to challenges like skills shortages by creating talent strategies and sourcing plans with risk mitigation.

1. Don‟t let „people‟ get in the way of implementing
your business strategy:
Strategic Workforce Planning (SWP) as part of an integrated
approach to business planning
PPMA Master Class – May 2014

2. Objectives
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► To give an introduction into:
► SWP and the benefits it can deliver
► How to carry out SWP in environments that are complex and dynamic

3. Contents
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1 The goal: Right resources to deliver – in uncertain times
2 What is Strategic Workforce Planning (SWP)?
3 Why SWP – Why now?
4 Business Planning and SWP
5 Benefits of SWP
6 Applying SWP to the challenges faced by local government
7 Q & A
8 Review and Close

4. Complex and dynamic business environments need a different
approach to planning workforce supply and demand
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Organisations frequently focus too much on a limited number of
potential future states and exclude more radical options
The current business climate demands
consideration of multiple options and response to
sudden changes in strategic direction
Traditional „Manpower Planning‟ struggles to deal
with uncertainty and changes in strategic direction
Strategic Manpower Planning (SWP) provides the means to include
analysis of the „improbable‟ and „unknown‟. Focusing on systematic
scenario planning of multiple options to generate resource plans which
can flex to external change.

5. Strategic Workforce Planning aligns development of the workforce
to business strategy
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What is workforce planning?
► SWP is a process to improve
alignment of workforce and business
strategies.
► SWP provides quantitative insight
into opportunities to enhance
productivity.
► SWP ensures risks to
implementation relating to people
are considered up front
Why is Strategic Workforce Planning (SWP) Important?
To ensure organisations have business strategies that incorporate a quantified
understanding of the global workforce
How is it different?
SWP is based on proven statistical
analysis of complex data sets and the
principles of Management Science.
It includes use of:
► Systematic Scenario Planning
► Risk analysis and Mitigation Plans
► Econometrics
► Statistical Analysis
► Forecasting
► Operational Research

6. Strategic Workforce Planning is a critical part of a business
strategy focused on the delivery of growth and productivity
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Benefits Drivers
Costs
► Provides insight into the operating model,
skills and workforce mix that will deliver
‘Value for Money’
► Uncover hidden possibilities for reducing
cost within even tighter budgetary
constraints when pay is a key expense
Productivity
► Understaffing / overtime avoided
Customer Satisfaction and compliance
►
Reducing service quality risk
►
Reducing compliance risk
►
Commissioning new services quickly
People
►
Improved employee engagement
►
Correct skills
►
Reduced hire and training costs
Business Model
Change
1
Reduced staff costs2
Enhanced productivity3
Improved talent
pipeline
4
Typical Scenarios:

7. Today workforce plans emerge as an enabler to the delivery of a
business strategy based on business drivers
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Culture Change management | Communication
Business
strategyPerformanc
e
optimizatio
n
Business drivers
Strategic
review
Talent
availability
Business
model
change
Enhanced business
sustainability
Increased flexibility to
respond to changing
market demands
Reduced people risk
exposure
Reduced people cost
Capability to capture
new markets and
revenues
Increased productivity
Decline
Maturit
y
Growth
Start-up
Business
plan
People
plan
People and
talent
management
initiatives
HR operating
model
Enabling
business
performan
ce through
people
Strategic
scenario
modelling
People
strategy
option
analysis
Workforce
planning and
productivity
management
CoEs
Integrated
people
programmes
, policies and
plans
Bespoke
analytics
(KPIs
analysis)
Enabling
technology
Workforce
planning
Workforce
productivity
analysis
1. Interrogate and
influence the
business strategy
2. Develop and refresh
the people strategy
3. Prepare and
execute the HR
plan
Business results

8. Strategic Workforce Planning ensures a quantified understanding of
supply and demand of skills fully integrated into an interactive
business planning process
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Work Demand
Staff Productivity
&Targets
Future Workforce
Supply
People Supply –
Future Workforce
Requirements
Future Work Trends
Modelling
& Analytics
Scenario planning, Productivity
Analysis
Forecasts & Projections
Impact Analysis
1. Understanding the „As-Is‟
2. Testing options and
scenarios
3. Looking at possible future
needs
Demand Projections
Operating Model
Test scenarios of future demand
and performance
‘As Is’ analysis of historic
data, business constraints and
assumptions
Evaluation of solutions and comparison
of options and scenarios
People Strategy Options
Resourcing options, HR policy
change, Operating Model
change
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Capacity Gap / Surplus

9. Strategic Workforce Planning can provide value adding solutions to
a range of business challenges
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Business drivers Example people challenges Strategic Workforce Planning solution
Strategic review
• Workforce skill set
• Workforce cost base
Create board level engagement in robust
strategic planning with early engagement of HR
Business model
change
• Workforce planning does not
deliver labour supply
• Global Location strategy
Well tested plans that increase success in
implementation, boosting credibility with
stakeholders and investors
Performance
optimization
• Low productivity
• Ineffective scheduling
Internal benchmarking to uncover hidden
opportunities to reduce costs
Talent availability
• Scarcity of talent
• Attrition of key skills
Use of analytics to identify factors impacting
supply and demand in key skills areas leading to
improved talent management

10. Business performance enablementPage 9
SWP provides a framework to find answers to the challenges raised
in the IES/PPMA Working Group Study.
Required
Workforce
Current
Workforce
Evidence
Risk Mgt
General Public
And Government
Current
Employees
Our Community
DEMAND
• Volumes, costs, quality of
services
• Positive public perception
• Government support
PEOPLE SUPPLY
• Skills: affordability and
availability
• Work patterns
• Employee expectations /
behaviours
CHANGE PLAN
• Costed Talent
strategy
• Sourcing Strategy
• Risk Mitigation

11. Modelling Workforce Demand –
Understanding current and future needs
Page 10
Workforce Demand
Benchmarks
Expert Opinion
Productivity Analysis
OutputsAnalysisInputs
Bringing together a range analytical tools
and techniques, our approach focuses on
understanding what is driving the need for
resources, including
► Staff productivities across roles and
services
► Differences in planned demand across
services and how these affect
productivity
► The impact of physical constraints, eg
population centres and local resource
requirements
► Base requirements and specific needs
across services
► Demographic development and usage
trends and how these will affect
workforce demand through scenario
modelling
Our approach brings together business strategy with historic data and scenario
modelling to understand future demands
Trends in
delivery of
public services
External
Developments
Historic Data
on Service
Delivery
Business
Strategy
Operating
Model
Forecasts of demand
for services
Structural
Constraints
Requirements &
Working
Regulation
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12. Modelling People Supply –
Understanding staff developments and efficiencies
Page 11
People Supply
OutputsAnalysisInputs
Projections
Data Analysis
Our approach enables an understanding of the key drivers of staff behaviours and
forecasts staff and skill availability
Analysing staff behaviours and
developments to develop a projection of
staff and skill availability in the future,
including
► Attrition rates and trends across age
groups, locations and departments
► Shifts, working regulations, current
practises and collective agreements
► Key skills and skill mix including the need
for specialists
► Tenure and typical career progression of
staff, implications of extended absence
due to training
► Teams and collaborative working across
departments and services
Staff
TenureAttritionLeave, training
Roles &
Specialities and
skills
Working
regulation
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13. Example: SWP in Commissioning within Health and Social Care
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This demands a “pressure tested”
workforce strategy and people plan
aligned with the business strategy:
►What operating model, skills, workforce
and location mix will provide the best value
for money and still meet health and social
care standards?
►Where do the people risks lie in placing
those bets?
►Where do the threats to your organisation
lie as you have to deliver under increasing
budgetary pressures?
The public spotlight is on health and
social care providers:
►To provide high quality Health and Social
Care under increasing stress of
demographic changes, an ageing
population and a divergence between
where services could be delivered and
where they are being delivered.
►To make sure that the organisations
meet Health and Social care standards
in the face of major quality concerns and
ensuring the workforce is well trained.
►To save costs and deliver within ever
tighter budgetary constraints when pay
is the main expense

14. Modelling of workforce demand
Understanding current and future Care needs
Page 13
Workforce Demand
Benchmarks(NMDS)
Expert Opinion
Productivity Analysis
OutputsAnalysisInputs
Bringing together a range analytical tools
and techniques, our approach focuses on
understanding what is driving the need for
resources, including:
► The impact of demographics on health
and social care demand
► Priorities from local people
(commissioning effectively)
► The impact of physical constraints, eg
beds or locations,
► Impact of compliance regulation
Our approach brings together your business strategy with historic data and
scenario modelling to understand your future demand and operations
Priorities from
local people
Requirements
& Regulation
Provider
landscape
Demographics
Health and Social
Care requirements
Structural
Constraints such
as beds, location
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15. Modelling of People Supply
Understanding staff developments and supply
Page 14
People Supply
OutputsAnalysisInputs
Projections
Data Analysis
Our approach enables an understanding of the key drivers of staff behaviours and
forecasts staff and skill availability
Analysing staff behaviours and
developments to develop a projection of
staff and skill availability in the future,
including
► Attrition rates and trends across age
groups, locations and specialties
► Shifts working regulation and current
practises
► Key skills and skill mix across specialties,
e.g. care workers
► Tenure and typical career progression of
staff, implications of extended absence
due to training
► Health and Social care regulation
Staff
TenureAttritionLeave, training
Capability and
skills
requirements
Health and
Social care
regulation
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16. The Steps to Embed Strategic Workforce Planning
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Business
Strategy
Workforce
Strategy
People
Plan
2. Analyse
Drivers
3. Evaluate
Strategic
Impact
5. Evaluate
Delivery
Options
4. Develop
HR
Initiatives
6.
Implement
7. Measure
and
Feedback
Results
► Use the existing business strategy to
deliver steps 1 -3.
► In parallel, develop People Plan (4,5)
and share Workforce Strategy with Key
Stakeholders
► Implement plan, measure effectiveness
and feedback outcomes (6,7).
► Ensure feedback influences the next
iteration of the business strategy.
Feedback costs, risks
and constraints
Work Demand
Staff Productivity
&Targets
Future Workforce
Supply
People Supply –
Future Workforce
Requirements
Future Work Trends
Modelling
& Analytics
Scenario planning,Productivity
Analysis
Forecasts & Projections
Impact Analysis
1. Understanding the „As-Is‟
2. Testing options and
scenarios
3. Looking at possible future
needs
Demand Projections
Operating Model
Test scenarios of future demand
and performance
‘As Is’ analysis of historic data,
business constraints and assumptions
Evaluation of solutions and comparison
of options and scenarios
People Strategy Options
Resourcing options, HR policy
change, Operating Model
change Capacity Gap / Surplus
1. Gather
Data

17. Example of how SWP can be used to develop answers
and support employee dialogue to gain „buy – in‟ …
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Scenario modelling
allows you to see
future risks and
opportunities
16
Test the impact of different
future scenarios and
people plans on
requirements and costs
Analysis and reports
providing stakeholders all
the evidence required for
informed decision making
Create highly visual
planning sessions
where issues can be
identified quickly
1
2
3
4
Business performance enablement

18. … and enables clearer decisions and improved
► Increasing workforce efficiency by providing the workforce
with the right skills at the right costs
► Improved productivity through improved prioritisation of
tasks and resource usage
► New insights into shift planning and rostering
► Accurate financial information for budgeting and costing
Model Output Benefits
Workforce requirements
► Staff requirements for each speciality by roles, skills
set and location over time
► Staffing gaps and surpluses across the organisation
► Projections of future demand and requirements in
alternative scenarios
► Current and future projections of total staff costs to
the organisation across functions
► Improved productivity by closing capacity gaps and
reducing surpluses
► Improved control and visibility through consistent
consolidated information enabling continuous
improvement
► Identification of best practise across the organisation
► Improved understanding of staff availability developments
to inform recruitment decisions
► Identification of problems with talent management,
diversity, absence or retention strategies
► New insights in succession planning and improved
trainings planning
Productivity metrics
► Productivity KPIs for each organisational speciality
and key roles
► Internal benchmarking and ranking of productivity for
comparable services
Workforce dynamics
► Forecast of staff and role distribution across
speciality / role over time without intervention
► Staffing projections accounting for retention changes
► Staff absence and issue reports
Business performance enablement

19. Business performance enablementPage 18
Q and A
?