1 Copyright Tom Bechet 2007 Strategic Workforce Planning: Part 1: Developing and Implementing an Effective Process Prepared for: Program/Session Name Company Name Date Presenter Name/Title Consulting Company Name Consulting Company Phone Contact Address

2 Copyright Tom Bechet 2007 Session Overview Discuss the SWFP process Redefine the workforce planning process and its objectives Improve the efficiency of the SWFP process itself Describe the context within which SWFP works “best” Describe some very “non-traditional” processes and practices Discuss how to deal with uncertainty Discuss process implementation Provide some implementation “hints” Discuss roles and accountabilities Review some examples Answer your questions…

3 Copyright Tom Bechet 2007 Some Simple Definitions Staffing includes all managed movement into, around, and out of an organization (e.g., recruiting, hiring, promotion, transfer, redeployment, attrition, retention) An issue is a "gap" between where you are and where you need to be to achieve business objectives or implement business strategies A strategy is a long term directional plan of action that describes how objectives will be met data information... and what is the difference between data and information?

4 Copyright Tom Bechet 2007 Developing Workforce Plans...

5 Copyright Tom Bechet 2007 Some Key Questions... What is “workforce planning” or “strategic staffing”? What makes staffing strategic in the first place? What does the process include? Defining near- and long-term staffing requirements Forecasting staffing availability Comparing “demand” to “supply” to define staffing gaps and surpluses Defining short-term (usually one period) staffing plans/actions Why aren’t traditional (macro) practices more effective? What should we be doing differently?

6 Copyright Tom Bechet 2007 How do we Make WFP Work? 1. Redefine the process and its objectives 2. Change the context within which the process is implemented (perhaps drastically!)

7 Copyright Tom Bechet Redefine the Process and its Objectives Definition: A process for defining and addressing the most critical staffing implications of business strategies and plans (both skills and staffing levels) Objectives: Create longer term staffing strategies that “best” eliminate critical gaps/surpluses Use those strategies as a context within which effective short term staffing decisions are made Deliverables: Longer term staffing strategies Specific shorter term staffing plans and supporting actions Answers and solutions!

8 Copyright Tom Bechet 2007 A Workforce Planning Overview Develop longer term staffing strategies that support business strategy Address staffing strategically Time Frame Scope Develop shorter term staffing plans FewMany Short Term Long Term

9 Copyright Tom Bechet 2007 Examples of Strategies and Plans Sample staffing strategies: Focus full time hiring and training/development on “proprietary” jobs and use contingent staff for “commodity” positions (IT) Develop staffing processes that can absorb 25% swings in business without affecting full time staffing levels (Wireless Infrastructure) Meet needs at senior technical levels by using outside hires and modify recruiting practices as required (Utility) Sample staffing plans: Hire 10 full time line mechanics in the first quarter Redeploy 10 staff from A to B providing accelerated development Use an outside staffing agency to meet third shift needs for 3 Techs

10 Copyright Tom Bechet 2007 The Workforce Planning Process 1. Identify the parts of the business that will be included 2. Define staffing gaps and surpluses for all planning periods Define staffing requirements Forecast staffing availability Compare supply to demand 3. Develop staffing strategies across planning periods 4. Define specific staffing plans/actions for each planning period

11 Copyright Tom Bechet 2007 Defining Gaps and Surpluses An Overall Process Design Current Supply Future Requirements Gaps/Surpluses Reduce Deficits and Surpluses The Supply SideThe Demand Side

12 Copyright Tom Bechet 2007 Defining Gaps and Surpluses An Overall Process Design Current Supply Future Requirements Gaps/Surpluses Reduce Deficits and Surpluses The Supply SideThe Demand Side

13 Copyright Tom Bechet 2007 Defining Gaps and Surpluses A Better Process Design “Supply Then”“Demand Then” Gaps/Surpluses Reduce Deficits and Surpluses The Supply SideThe Demand Side “Supply Now” Assumptions (re: Staffing and Turnover) Define New Staffing Actions

14 Copyright Tom Bechet 2007 Defining Gaps and Surpluses The Best Process Design “Supply Then”“Demand Then” Gaps/Surpluses Reduce Deficits and Surpluses The Supply SideThe Demand Side “Supply Now” Assumptions (Uncontrollable Staffing) Adjust Controllable Staffing Actions

15 Copyright Tom Bechet Change the Context within which the Process is Implemented Within what context should this workforce planning process be applied? All units? All jobs? Common process, timing, planning parameters, and templates? Compiled results?

16 Copyright Tom Bechet 2007 Change the Context of SWFP Modify traditional approaches Focus on workforce planing and action, not workforce analysis Aim to be proactive, not to react more quickly Focus on staffing issues, not organizational units Vary planning parameters Include only those jobs that merit a strategic focus (e.g., “proactive” and “time to implement”) Don’t compile; keep results separate and detailed Instead of a common approach, consider “Workforce Planning at 30,000 Feet” Address needs across planning periods instead of fixing one period at a time Don’t just build capability -- solve problems and address issues Don’t think of SWFP as and “event” -- apply it whenever changes are discussed

17 Copyright Tom Bechet 2007 What is a Staffing Issue? Hint: Potential staffing “issues” might include: Significant changes in required staffing levels Major changes in required capabilities (including positions where required skills may be unknown) Positions that will be particularly critical Positions that will be hard to fill Positions with long learning curves Skill sets that you have not needed or looked for previously Skill sets for which there is extreme competition externally Remember to keep strengths strong!

18 Copyright Tom Bechet 2007 Where do I Look for Staffing Issues? Hint: Focus on significant/strategic changes Changes in business focus, objectives, or activity Business expansion/contraction Changes in markets or customer base Capital expenditures/projects Changes in technology or manufacturing process Changes in product mix Changes in competitive positions Productivity improvement/cost containment Changes in organization (e.g., structure, acquisition, divestiture)

19 Copyright Tom Bechet 2007 Measure your Results

20 Copyright Tom Bechet 2007 Dealing with Uncertainty...

21 Copyright Tom Bechet 2007 Ways to Deal with Uncertainty... “Alternatives to Perfect Data...” Do the most you can with what you have Fully solve part of the problem (it’s better than doing nothing at all) Model “what if” scenarios and contingency plans Develop strategies that incorporate flexibility and uncertainty (e.g., plan for “pools”, not individual units)

22 Copyright Tom Bechet 2007 An Example... Patient Census Time

23 Copyright Tom Bechet 2007 An Example... Patient Census Time Maximum Midpoint Minimum

24 Copyright Tom Bechet 2007 An Example... Patient Census Time 25 Full Time

25 Copyright Tom Bechet 2007 An Example... Patient Census Time 25 Full Time 40 Part Time

26 Copyright Tom Bechet 2007 An Example... Patient Census Time 25 Full Time 50 Part Time 40 Agency

27 Copyright Tom Bechet 2007 Implementing SWFP...

28 Copyright Tom Bechet 2007 Implementation “Hints” The development and implementation of workforce planning requires a line/staff partnership Line managers are ultimately responsible for SWFP Human business partners directly support managers in identifying staffing issues and developing staffing strategies A core of HR staff provide high level consulting and process expertise HR functional staff support the development and lead the implementation of staffing plans Spreadsheets (linked to HR data systems where possible) provide more than adequate technology support

29 Copyright Tom Bechet 2007 Obstacles to Overcome Managers –Expect that HR staff can continue to react sufficiently –Typically have a short term, results orientation that is not consistent with longer term workforce planning or the development of people –Are sometimes unwilling to participate fully in the SWFP process HR Staff –May not understand the business well enough –May be “stuck” on common practices, applied identically –May not take a long term, strategic perspective –May be used to reacting, not being proactive –May think (and sometimes act) within functional "silos” Data Issues –Partial or no information on staffing requirements –“Spotty” supply data

30 Copyright Tom Bechet 2007 An Implementation Bias (Few)(Many)

31 Copyright Tom Bechet 2007 An Implementation Bias (Few)(Many) Approach A

32 Copyright Tom Bechet 2007 An Implementation Bias (Few)(Many) Approach B

33 Copyright Tom Bechet 2007 What Does a Staffing Model Actually “Look Like?

34 Copyright Tom Bechet 2007 Examples… …and Questions

35 Copyright Tom Bechet 2007 Example Biotech IT Function Strategic context –“Technical Services” unit provides IT support to other units (e.g, network, cabling, database, systems reconfiguring) –Need for service exceeds available resources –Desire to define actual work performed and true “value added” Strategic Staffing –Focus on Corporate IS projects to be implemented in 2001 Critical jobs only (e.g, network, desktop, infrastructure) –Create a “rolling four quarter” supply/demand model Outcomes –Staff “oversight” positions with full time employees –Staff “hands on” positions with contractors

36 Copyright Tom Bechet 2007 Example Electric Utility Strategic context –An aging workforce will result in a large number of retirements in the coming 3-5 years –The specific impacts of these retirements was undefined, even though both staffing levels and capabilities will be affected Strategic Staffing –Based on eligibility requirements, forecast the number of retirements –Identify those job categories most at risk –Focus the analysis on at risk categories only Outcomes –Specific staffing plans (recruiting and internal movement) to address critical shortages (e.g., line mechanics) –Development and knowledge transfer plans to address key losses

37 Copyright Tom Bechet 2007 Example Medical center Strategic context –Competitor entering the marketplace –Competitor will “poach” key staff Strategic Staffing –Define job categories that are most vulnerable –Make assumptions regarding losses that are tied to competitor plans –Develop scenario-based staffing models to forecast the impact of poaching Outcomes –Specific staffing plans regarding replacement in the short term –Staffing strategies that aimed to make the the organization’s staff “unpoachable” in the future

38 Copyright Tom Bechet 2007 Example Telecommunications company Strategic context –Radically new technology will be implemented –Implementation will be nation-wide, spread over four years –New technical and “soft” skills will both be needed –Many in current workforce nearing retirement Strategic Staffing –Focus on Central Office Technician role (which encompasses many current jobs/titles) –Create a supply demand model –Develop alternate retirement scenarios Outcomes –Redeployment and training requirements –Plans for hiring and staff reductions

39 Copyright Tom Bechet 2007 Example Insurance company Strategic context –Growth and replacement increased needs for branch managers –Traditional paths (through underwriting) take time –Alternative sources will be required Strategic Staffing –Create a supply demand model –Include jobs along the traditional path –Build in “lags and leads” Outcomes –Define required size of trainee pool –Define number of external hires in advance