The document outlines best practices for strategic workforce planning (SWP), including defining SWP and diagnosing current practices. It recommends a 6-step SWP process of scanning, profiling, analyzing, developing, implementing, and controlling. Research shows that while many companies have some workforce planning, few take a strategic, long-term approach aligned with business strategies. The presentation provides guidance on applying an effective SWP process to gain a clear view of talent needs and ensure workforce alignment with organizational strategy.

1. BEST PRACTICE STRATEGIC
WORKFORCE/TALENT PLANNING
(SWP)
CHARLES COTTER
20 NOVEMBER 2014
SANDTON CONVENTION CENTRE

2. SCOPE OF PRESENTATION
 Defining StrategicWorkforce Planning (SWP)
 Diagnosis of current SWP practices
 Research-based reality check
 Business Case: Strategic imperative and alignment of
SWP
 Applying the 6-step SWP process

3. WFP - GETTING IT “RIGHT”

6. CLEAR VIEW?
 Inventory of available organizational core competencies?
 Inventory of organizational scarce skills?
 Mission critical organizational jobs (to enable strategy
achievement)?
 Critical employee segments (to promote business
continuity/sustainability)?
 Competitivity and readiness of organizational talent pipeline?
 Identification of organizational talent gaps?

7. CURRENT: HRM-BASED WORKFORCE
PLANNING ARCHITECTURE

8. REQUIRED: BUSINESS-BASED SWP
ARCHITECTURE

9. DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR EFFECTIVE SWP
 #1: Aligned with organization’s strategic business plans and priorities.
 #2: Future-focused, adopting a strategic, medium to long-term forward-looking
approach.
 #3: Pro-active, sensitive and responsive to (internal and external)
environmental change and trends.
 #4: Provides accurate and reliable (clear view) talent
planning/management information e.g. available core competencies;
scarce skills; critical jobs and employee segments and talent gaps.
 #5: Collaborative, well coordinated and partnering effort (HRM has co-opted
business partners e.g. line managers to the process).

10. DIAGNOSIS: 10 BEST PRACTICE
GUIDELINES FOR EFFECTIVE SWP
 #6: Integrated (bundled) with other HR value chain processes e.g.
Recruitment, Succession Planning, Retention and Leadership Development.
 #7: Generates meaningful business intelligence which shapes, informs and
influences business planning and supports strategic decision-making.
 #8: Integrates both scientific (HRM metrics, predictive analytics and
strategy maps) with artistic (planning) principles.
 #9: Dynamic - regularly and systematically monitored, reviewed, evaluated
and adapted (committed to continuous improvement processes).
 #10: Yields a positive ROI, with tangible/demonstrable outcomes and
impact i.e. creates sustainable HCM competitive advantages

11. LEVELS OF SWP MATURITY

12. RESEARCH-BASED (BERSIN) REALITY
CHECK
 Although 92% of companies have some level of workforce planning, only 21%
take a strategic, long-term approach to addressing the talent demand, talent
supply and the actions necessary to close the gap between the two.
 Only 11% of organizations have currently reached Level 3 of Maturity.
 Only 10% have reached Level 4.
 Although best-practice companies align workforce planning as an integral part
of their business and financial planning, 67% of companies at every level still
conduct workforce planning on an “as-needed” basis.
 Only 25% of workforce plans are effective at helping business leaders forecast
revenue and operating budgets.
 Only 27% of workforce planning processes are conducted by recruiting and
staffing departments . The majority of workforce planning processes are owned
by individual business leaders – so they are disjointed from recruiting and even
HRM.

13. THE STRATEGIC IMPERATIVE OF
WORKFORCE PLANNING
 “Strategic workforce planning helps organizations understand the talent
required to deliver their strategy – without it, the costs are significant.” (Hay
Group UK)
 “A talented and aligned workforce is crucial for bringing strategy to life and
ensuring an organization delivers on its objectives” (Hay Group UK)
 “Bringing together the right information with the right people will
dramatically improve a company’s ability to develop and act on strategic
business opportunities” (Bill Gates)
 “CEO’s expect the Human Resources function to play a much more active role
in enabling business strategies.” (Deloitte, 2013)
 “A company’s employees are its greatest asset and your people are your
product .” (Richard Branson)

16. SWP: S-P-A-D-I-C PROCESS/CYCLE
 S CANNING
 P ROFILING
 ANALYZING
 DEVELOPING
 I MPLEMENTING
 CONTROLLING

17. STEP 1: SCANNING – STRATEGIC
ANALYSIS
 Reviewing current HRM and organizational strategies
(Strategic Direction and Intent)
 Conducting an environmental scan
 Identifying workforce trends and challenges
 Benchmarking
 Preferred Scanning tools – SWOT and PESTEL Analyses

18. STEP 2: PROFILING
 Forecasting HR Demand (Futuring)
 Measuring Current Supply

19. FUTURING
 "Futuring is the field of using a systematic process for thinking about,
picturing possible outcomes, and planning for the future. Futurists are
people who actively view the present world as a window on possible
future outcomes. They watch trends and try to envision what might
happen.“ (Kirkwood, 2011)
 Futuring is a broader concept than the forecasting traditionally done
in Workforce Planning and enables organizations to look at the future
in four different ways (Cillie-Schmidt, 2013):
 The possible future - what could happen?
 The plausible future - what could realistically happen?
 The probable future - what is likely to happen?
 The preferred future - what we want to happen?

21. FORECASTING HR DEMAND
 Forecasting should consider the past and the present
requirements as well as future organizational directions
Number of employees
Type of employees
Skills requirements of these employees
 Consider and assess the challenges and constraints
 Preferred Scanning tools –”What If” and Scenario Planning

22. MEASURING CURRENT SUPPLY
 Assess the current HR capacity of the organization by means of
the Skill inventories/audits method
The knowledge, skills and abilities of your current staff need to be
identified
Employee experience, education and special skills
Certificates or additional training should also be included
 A forecast of the supply of employees projected to join the
organization from outside sources
 HRM indicators, metrics and indices e.g. turnover rates

23. STEP 3: ANALYZING –
RECONCILING/GAP ANALYSIS

24. STEP 4: DEVELOPING – STRATEGIC
HRM ACTION PLANS

25. STEP 5: IMPLEMENTING -
INTERVENTIONS
 Develop and initiate a Resourcing Strategy
 Matching strategy (intervention) with scenario (surplus or
deficit)
 Action plan-based implementation methodology

26. HRM ACTION PLAN (INTERVENTION)
TEMPLATE

27. STEP 6: CONTROLLING
 Tracking implementation progress – monitoring, measuring
and evaluating

28. LEADERSHIP LESSONS: “TAKE-AWAYS”
– SWP AND ALIGNMENT
 SWP – getting it “right”
 HRM requires a clear view
 The strategic imperative of SWP
 Alignment of SWP and business strategy
 Application of best practice principles
 Application of 6-step SPADIC SWP process

29. CONTACT DETAILS
 CHARLES COTTER
 084 562 9446
 charlescot@polka.co.za
 LINKED IN
 TWITTER: Charles_Cotter