special thanks to workforce management ©copyright orcaeyes inc. 2007-2011 taking it to the c-suite...

Special Thanks to Workforce Management

©Copyright OrcaEyes Inc. 2007-2011

Taking it to the C-SuiteWorld Class, Leading Edge, Strategic Workforce Planning

1) Feedback , questions and concerns from workshop participants

2) Dr. Jac Fitzenz on Integrated Reporting and Predictors

3) The Science of Data Analysis

4) Key Workforce Drivers in Delivering Business Value

5) Transform Business Risk into Unprecedented HR Opportunities

Please send in questions, comments, problems or successes throughput this session!!! We will not mention names. Please include

your industry if possible on your notes

© Copyright OrcaEyes Inc. 2007 -2011

Finance◦ “This is exactly the type of strategic HR

information our CEO has wanted badly for a few years now. He was thrilled.

◦ We are now happy to be an OrcaEyes client.”


Insurance◦ “I am still scared about my second meeting with

our controller. I sure hope Part 4 helps me here.”


Manufacturing◦ “Frankly we thought you were a typical vendor

over-hyping products and not understanding our real daily issues in HR. Our CEO literally pounded on his desk and said, ‘this is what I need to show the Board how we carefully manage our Human Capital investments. I want more!”


Healthcare◦ “That’s the easiest and fastest $4,000 I ever had

approved by our CFO. She seems to get it better than me. I hope the last web program provides a few more templates to help me. I really need to learn this material better now that we will providing her with monthly SVOD reports.”


Childcare◦ “I respect the professionalism of your firm and the

free training you are providing. However, I have a strong and fundamental disagreement with what your company is doing. People are not assets. People are not numbers on a spreadsheet. This dehumanizes the value of workers. This seems to be opposed to everything reason why I launched a career in human resources.”


◦ Data Overload Too much data

Non-correlated data

◦ Start with understanding your primary business objectives Read and make notes of 10k and listen to quarterly analyst

calls (if public)

Read Mission Statements and financial/operational disclosures

◦ Sound transparent formulas are essential Ask “Friendly” finance contacts to review formulas

And for advice on additions she/he can think of It’s not true that Finance people are not friendly

◦ The criticality of color-coded dashboards ERP, Networks, Supply Chains, Plants and Fabs, Load

Balancing, Financial Forecasting, KPI presentations to Board of Directors and on

Key drivers and trends at a a glance© Copyright OrcaEyes Inc. 2007 -2011

New SEC Regs = Feb 28, 2010 First mandated reporting period = Q4 2011 The Board of Directors are now required to:

◦ Actively discover “Material Risks” to the business Related to shareholder value

◦ Decide if these are actual risks or opportunities◦ Disclose all risks to SEC and in 10ks and 10Qs◦ Actively place monitoring tools in place

HR’s role in these new regs◦ IBM’s view

Demand Forecast Template -Explanations Steps Details Result Objectives

1) Projected Workforce Demand Forecast

1) Ask Finance for headcount forecasts, if not.. 2) Ask leadership for 1-2 year growth forecasts, if not… 3) Read latest Annual Shareholder Report (Form 10K). If

not.. 4) If Non-Profit or Government, read Mission statements

and required financial disclosures. NOTE: If these type organizations, budget savings or equivalent to profit at private companies. If not..

5) Use a flat growth forecast. The business leader(s) will correct this when they see reports

Growth or Contraction percentage for the next 1-3 years

2) Projected Actual Headcount

1) Use SonarVision Free On-Demand Report a. This is comprised of (Projected Turnover +

Projected Retirement) – historical fill-rate b. Based on historical data filtered by the

individual position at a business group at a location

c. Trended most heavily for recent data uploads

Projected actual headcount filtered by position groups at business entities and specific locations

3) Ascertain Workforce Gaps and/or Surpluses

1) Subtract Demand Forecast by the Project Headcount. The differences are the projected multi-year Gaps or Surpluses

4) External Talent Factors

1) SonarVision External Talent Market Intelligence 2) GDP 3) Industry Factors

Show the numbers. With monthly or quarterly reports, the important trends will emerge

Or use the SVOD Free Report for all

above except Demand Forecast Projections


Demand Forecast Template Steps Result Objectives

1) Projected Workforce Demand Forecast 2) Projected Actual Headcount 3) Workforce Gaps and/or Surpluses 4) Factors Impacting External Talent Availability and Costs


WF Planning Functionality Available with Current Data

Data Accuracy Factor (+ or - x%)

WF Planning Functionality Not Available with Current Data

Use the SVOD “Risk Categories and Metrics” table. All “Metric Value” fields that have data information

Use SVOD Data Error Log after uploading data. It is fine to put a “?” in any field where the accuracy is uncertain

Use the SVOD “Risk Categories and Metrics” table. All “Metric Value” fields that have “NO” data information


WF Planning Functionality Available with Current Data

Data Accuracy Factor (+ or - x%)

WF Planning Functionality Not Available with Current Data



Risk Diagnostic Template Ri

sk

Dep

artm

ent (

Chec

k)

Posi

tion

(Che

ck)

Spec

ific

Dep

artm

ent

or P

ositi

on G

roup

Risk

Ale

rt L

evel

Actu

al R

isk

Rele

vanc

y (S

ubje

ctive

)

Root

Cau

ses

Retirement x RNs S 70%+ Aging Demographics Turnover Performance Turnover Overtime X ER M 60% Turnover Voluntary Turnover Performance Turnover Retirement Demand Forecast (Growth)

Data in SVOD Summary Tables

1. Examine SVOD Risk Alert Levels2. Check if it’s for a Department or Position Group3. List the specific Department or Position4. Show SVOD Risk Level (Explain Relevancy)5. CONSERVATIVELY rate actual risk6. Define root cause

a) These relationship are listed in SME Best Practice text below each single metric


HR Action Plan Solutions Template - Worksheet

Risk

Spec

ific

Dep

artm

ent

or P

ositi

on G

roup

Act

ual R

isk

Rele

vanc

y (S

ubje

ctive

)

Root

Cau

ses

HR

Solu

tions

Retirement RNs 70%+ Recruiting Aging Demographics Training and Development Turnover Retention Performance

Turnover Compensation

Base Bonus Stock Options OT Manager Training Diversity Programs Mentor Programs Leadership Training Engagement Manager Satisfaction Temp/Contract Labor RPO Compensation Benefits Acknowledgment Programs

1. Ask the leader for time to assess HR Solution cost ranges

2. Go for a pilot project

3. In SVOD Monthly or Quarterly Reports monitor the Risk Trends, the Root Cause Trends and approximate HR associated costs

4. Set meetings to share new results and trends with leader


HR Action Plan Solutions Template

Risk

Spec

ific

Dep

artm

ent

or P

ositi

on G

roup

Actu

al R

isk

Rele

vanc

y (S

ubje

ctive

)

Root

Cau

ses

HR

Solu

tions


Risk Diagnostic Template

Risk

Dep

artm

ent (

Chec

k)

Posi

tion

(Che

ck)

Spec

ific

Dep

artm

ent

or P

ositi

on G

roup

Risk

Ale

rt L

evel

Actu

al R

isk

Rele

vanc

y (S

ubje

ctive

)

Root

Cau

ses

Strategic Business KPIs Risk & Opportunity Indices Human Capital Drivers HR Functions FINANCIAL OT Costs Lost Revenue

Sales & Billable Revenue Severance/Excess Payroll Costs Total Labor Costs EFTs Contract/Temp Outsource Organizational Readiness Vendor Contracts Position Gaps Consultants Skill Gaps

Board Risk Downsizing Costs Position Surplus Recruiting Hiring Costs Skill Surplus Training and Development

Financial Training Costs Time-to-Fill Retention Benefit Costs Attrition Compensation

Strategic Plans Insurance Costs Reasons Base Performance Turnover Bonus

Missions OPERATIONAL Aging Demographics Stock Options Intellectual Capital Retirement OT

Lost Opportunity Costs Operational Productivity Leave Operational Efficiency Engagement Manager Training Customer Satisfaction Manager Satisfaction Diversity Programs

Accidents/Errors Top Performer Flight Risk Mentor Programs Procedures External Talent Supply

Thefts External Talent Cost Project Effectiveness Time Cost Overruns

Strategic Business KPIs Risk & Opportunity Indices Human Capital Drivers HR Functions

Strategic Business KPIs Risk & Opportunity Indices Human Capital Drivers HR Functions FINANCIAL OT Costs Lost Revenue

Sales & Billable Revenue Severance/Excess Payroll Costs Total Labor Costs EFTs Contract/Temp Outsource Organizational Readiness Vendor Contracts Position Gaps Consultants Skill Gaps

Board Risk Downsizing Costs Position Surplus Recruiting Hiring Costs Skill Surplus Training and Development

Financial Training Costs Time-to-Fill Retention Benefit Costs Attrition Compensation

Strategic Plans Insurance Costs Reasons Base Performance Turnover Bonus

Missions OPERATIONAL Aging Demographics Stock Options Intellectual Capital Retirement OT

Lost Opportunity Costs Operational Productivity Leave Operational Efficiency Engagement Manager Training Customer Satisfaction Manager Satisfaction Diversity Programs

Accidents/Errors Top Performer Flight Risk Mentor Programs Procedures External Talent Supply

Thefts External Talent Cost Project Effectiveness Time Cost Overruns

Strategic Business KPIs Risk & Opportunity Indices Human Capital Drivers HR Functions

1. Finish the templates and keep them in a single folder

a) Remember that a couple need leadership input

b) This folder is mainly for Drill-Down if the leader asks

2. Have multiple copies of the completed “1st Draft” Risk Diagnostic Template and

3. Have multiple copies of the completed “1st Draft” HR Action Solution Plan Template

4. Have multiple copies of both the example worksheet and the HC-Business Correlation Template

5. Have multiple copies of the SVOD summary report and full report

23

1. Relax. You are loaded with CFO type decision data

2. Explain, “We started workforce planning to proactively discover for leadership HC/Workforce Drivers which may be creating potential risks to business: finance, operations and strategic plans.”

3. Every fact is purely data driven. We used standard deviation based on data accuracy to show potential error rates. Explain “Alert Levels” as Purely Directional and Relevancy Assessments to your company

4. Your review is required to assess if these potential risks are actual risks to your business

5. With a few templates we will help you to better understand the relationships between HC/workforce drivers and business KPIs. Only you can tell us what may be applicable and what is missing

a) When you assess actual HC-Business risk, we will work with you to develop unified HR solutions proactively

b) When you agree, we will assess costs and resources for your review

c) If you agree, we recommend a pilot project to test validity before full investment

d) We will provide you monthly/quarterly reports monitoring the risk trends, improvements and all root cause to share in meetings with you for what you deem as next best steps.

After the leaders reviews the SVOD Summary and Risk Tables, show them the 1st Draft” Risk Diagnostic Template

◦ Explain this is first step of a few examples of potential risk

◦ Ask for the input and questions

◦ Let them know you can generate reports for individual department and position groups

It is far more effective if you are showing the SVOD for that business leaders department or business unit

Show them the HC-Business Correlation Template so that they can visually understand the process

◦ This is where their advice on critical relationships is essential

◦ Be sure to write down exactly what the leader says. These are your tickets to providing customized

Show the leader a copy of the “Example” HR Action Plan Solution” Template

◦ Ask for more advise and questions

◦ Try to get them to come up with ideas for solutions.

◦ Be prepared to answer questions they may have about HR services

If they drill down or ask question you do not know simply let them know you will get back to them

◦ The amount of information and data is extremely impressive in any strategic business circle

If they don’t buy-in at first, just ask if they would like to see Quarterly reports

◦ Always do this in person

Always pick “Friendlies” with who have a number of potential risks

Relax and enjoy the ride. One or more leaders will tout their results in their staff meetings and you will be getting call from all their peers

◦ Momentum and Pull effect will ensue

Be Real Proud of your self and enjoy the ride

And email or call me with any questions, bumps in the road and especially successes

◦ We can have most of your successes published if you wish

Dan [email protected], Ext. 707

special thanks to workforce management ©copyright orcaeyes inc. 2007-2011 taking it to the c-suite...

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