tony wallace - starting right, staying true, delivering the future workforce
TRANSCRIPT
www.workforceplanning.com.au
Strategic Workforce Planning –
Starting Right, Staying True,
Delivering the Future Workforce
Tony Wallace
Principal
Workforce Planning Australia
Tam Marte Quam Minerva
• As much as by Mars as by Minerva
– As much by war, as by wisdom
– As much by courage, as by genius
• Workforce planning is:
– Both art and science
– Both hard and soft skills
– More than HR or any one function
– Reliant on end-to-end or systems thinking
Dealing with complexity
What is Workforce Planning? Various definitions, variation in understanding and application
Strategic versus Operational
Workforce Planning - Definition
Workforce Planning is defined as a continual process
seeking to align the individual’s and organisation’s needs
and priorities to achieve business objectives.
Linked to the business direction – will continue to evolve
Implies a future focus – degree of uncertainty
Workforce Planning Process
1. Strategic setting
2. Current state analysis
3. Future state analysis
4. Gap analysis and risk assessment
5. Workforce strategies or interventions
6. Monitor, evaluate and review
Steps are repeated in a cyclical manner
Typical steps in workforce planning
Scope
• Starting Right – Building the foundation for
success
• Staying True – Producing results, avoiding
pitfalls
• Delivering the Future Workforce – Sustaining
success
“Creating the initial workforce plan is a project,
sustaining the workforce plan is an operation”
Lessons from Grad School and Workforce Planning Roles and Gigs
Vignette Part 1 – Starting Right? A Tale of Contrasting Visions
Not For Profit
• Restabilising after turmoil and
redundancies
• Recognised the importance of
people, and the need for
Workforce Planning
• Are we ready?
• Executive workshop – clarity
about what they wanted and
what it is
• Agreed broad plan of action
Government Regulator
• Large scale reorganisation
and change project
• Brief to develop workforce
plan – not clear
• Limited executive buy-in
• Lack of clarity between HR
and Finance
• Lack of true ownership and
accountability
Starting Right – People
• Ask the Right Questions – What are the problems we
are trying to solve?
• Executive Engagement
• Who Involved?
– Finance
– HR
– Others
• Who is the Champion?
• Do We Need Help?
Critical to build relationships and trust with the Executive Team
Starting Right - Systems
• Ask the Right Questions – What are the problems we
are trying to solve?
• Planning the Plan
• What data do we need?
– Finance
– HR
– Others: Training, Performance, Preferences
• Is software important?
• Means and End?
Start small, understand the end goal and the limitations
Starting Right – Key Considerations
1. Focus on jobs or roles of strategic importance or high
impact
– <50% of jobs in organisations are high impact
2. Build and vary the talent pool
– Both permanent staff and contingent workers
3. Use workforce more flexibly
– Meet workload demands and create agility
Keep the project manageable, define the scope and boundaries well
Discussion
• What are the typical issues or barriers that you have
encountered in starting workforce planning in your
current or previous organisations?
• What have you found to be successful in resolving
these issues and progressing workforce planning?
Recap – What about sharing your stories?
Vignette Part 2 – Staying True Maintaining momentum and increasing maturity
Military Organisation
• Workforce modelling and
planning well embedded
• Defined job families – demand
and supply
• Clear career models, HR
practices and processes
• Significant data resources
• Workforce problems exist
• Managing or transforming the
workforce
• “Developing true insights”
Emerging Organisation
• Commitment to workforce
planning
• Workforce segmentation does
not exist
• Career model less defined
• Issues not fully developed, nor
what data is needed
• Limited data and metrics
• Uncertain about how to
proceed
• “Breaking the vicious cycle”
Job Family Framework Differentiates across the workforce and links with other resources (ANZSCO)
Job families are groups of similar positions with related
skills, tasks and knowledge blocks. The model does not
reflect work level and is hierarchical (four tiers).
Job Family. The highest level of workforce classification e.g. Customer Service
Job Function. Families are divided into functions e.g. Customer Service - Sales
Job Role. Workforce planning occurs to this level. Small numbers can be problematic.
Job Title. A meaningful description of the position’s role.
Level of detail
increases from
job family to
job title
Data Issues and Metrics
• Organisations data rich, information poor
• Organic capability – cost effective?
• Measuring the right things or the things that are easy -
critical review of metrics
• Correlation versus causation
• Workforce planning – longitudinal versus cross
sectional data
• Heterogeneity – Differences between job families,
variation over time and control for demography
• Is the organisation prepared to compete on analytics?
Fundamental considerations
Competitive Advantage in Data Workforce planning relies on intelligence formed from different sources
Adapted from Competing on Analytics: The New Science of Winning, Davenport and Harris, Harvard Business
School Press, 2007
Optimisation
Predictive Modelling
Forecasting Extrapolation
Statistical Analysis
Alerts
Query Drill Down
Ad Hoc Reports
Standard Report
Degree of Intelligence
Co
mp
eti
tive A
dvan
tag
e
Analytics
Access and
Reporting
Staying True – Emerging
• Identify the workforce issues to address in the context
of the strategic direction
• Determine the initial data requirements – build a basic
profile of the workforce:
– Agree and apply a job family classification
– Produce current demand and supply picture
– Demographics
– Recruitment and retention performance
• Build initial data story and develop insights – what does
this mean for the strategic direction
Just getting started can be a challenge, getting the basics right
Staying True – What’s Next
• Trend analysis – typical, outliers and random
• Understand differences:
– Job Family, Function and Role
– Demographics
• Basic models to create forecasts
• Understand the limitations
• Continue to build the data story and develop insights –
what does this mean for the strategic direction
• Use results to generate and update organisational and
people strategies
Continue to build historical data, and enhance the story
Staying True – Mature
• Sharpen the focus on the problem – develop hypothesis
and setting about proving cause and effect
• Try to look at the problem differently – remember inter-
relationships exist, and past history can give insights
• Value demand and supply sides equally
• Forecast models (steady state and dynamic) have
limitations – assumes rational behaviour
• Does the data show a trend or just randomness
• A deliberate response is preferred
Strive to find new insights, focus on understanding behaviour
Workforce Planner - Traits
• Analytical and critical thinking
• Data strengths – dealing with ambiguity
• Perseverance and not disheartened easily
• Good communicators and relationship builders
• Creativity and thinking differently
What should we look for in workforce planners?
Workforce Planning Systems
• Understand what you need to solve your problems –
start small, first principles
• High level of sophistication and complexity
• Ability to replicate your workforce, its rules and
behaviour
• Ease of use, system support and maintenance
• Efficiency – labour costs, speed
• Deliberate decision
What should we look for in workforce planning systems?
Workforce Planning Pitfalls
• Workforce Segmentation – Job Families
• Agreement on Job Families of Importance
• Data and Assumptions
• Forecasting by Job Family
• Iterative Process
• Not Generating Quick Wins
• More Than Numbers: – Skills and Education
– Experience
– Performance
– Preferences
Regardless of maturity level, avoid or minimise these pitfalls
Numbers
Skills and Education
Experience
Performance
Preferences
Discussion – Staying True
• How would you describe the level of maturity in your
organisation’s workforce plan?
• What are the pitfalls that you have encountered in
workforce planning?
Recap – What about sharing your stories?
Vignette Part 3 – Delivering Is the status quo a realistic option?
Growth and Reform
• Organic growth planned over a
ten year period - stalled
• Identify problems, develop
solutions – importance of data,
performance measures
• Reinvigorate growth plans
• Reshape key capabilities –
future relevance
• Critical understanding of
interactions – recruiting and
training
• Synchronise demand and
supply sides
Decline and Consolidate
• Significant project to end in
five years
• Gradual reduction aligned to
project needs, limited growth
in specialist roles
• Significant talent pool of
competent engineers
• Synchronise project, program
and HR management
• Develop and test options –
redeployment, retraining
• Engage with staff
Change Management
• Create the sense of urgency and shared vision
• Align leaders, managers, and staff – communicate
• Enable action and remove barriers
• Generate quick wins, build on this success
• Focus on long-term outcomes
• Integrate workforce planning into normal business
practices
Change or Die
Demand Side
• Organisational and Team
Design
• Technology and Process
Redesign
• Job Design
• Workforce Mix
“Working on the Organisation”
Supply Side
• Attraction and
Recruitment
• Learning and
Development
• Deployment
• Retention and Promotion
“Working on the People”
Workforce Planning Strategies Too often the focus is on “Supply Side” solutions
Linking Strategies Organisational and people strategies must be complementary
Organisational
Strategies – start
with these first
People Strategies
follow – “function
follows form”
Consistent with
HR Framework
and System
Integrate action to
support and value
our people”
Workforce Planning Cycle
Workforce Requirements
- Organisational Design
- Organisational Structure
- Job Families (Position Based)
- Capability Map
- Preferred Solution
Workforce Budgeting
- Workforce Budget
- Workforce Management
- Workforce Mix Options
- Vacancy Management
- Validated Solution
People Management
- Skill Utilisation and Development
- Opportunities
- Performance Management
- Career Management
People Planning
- Recruitment
- Retention
- Learning and Development
- Staff Progression
Leadership, Governance and
Management
People System and HR Framework
Inputs:
• Strategic
Direction
• Draft
Business
Plan
• Required
Outcomes
Outputs:
• Capability
Delivered
• Objectives
Achieved
• Required
Outcomes
Work
forc
e D
em
and
“Spaces”
Work
forc
e S
upply
“Faces”
Workforce and Business Planning Cycles must be aligned
Discussion – Delivering Success
• What are your success stories in developing the
workforce plan?
• What are your success stories in implementing the
workforce plan, and how have you measured success?
Recap – What about sharing your stories?
Base level only (assume untrained) All Levels
Workforce Planning – Importance The necessity of workforce planning varies between organisations
Consider these characteristics:
1. Recruiting:
4. Competitive Advantage
3. Succession Planning
5. Level of Transformation:
2. Skill Development
Large intakes, batches Small, selective
Invest in skill development People have the skills
Committed to Grow Your Own Hire Stars, All Levels
Continual, Significant Minimal, Status Quo
Challenged Strong Competitive Position
Bringing it Together
• Create the workforce planning team – not just HR,
include Finance, Business Leaders
• Build a great data story
• Segment the workforce – sharp focus
• Create a workforce planning cycle
• Systematic, balanced and logical approach
• Align people and organisation
• Continual effort – it is iterative
Ideas for success
Workforce Planning Trends
• Speed and tempo continue to quicken – is long term
planning realistic or valid?
• The rise of the agile workforce
• How do we continue to make workforce planning
relevant?
• Workforce planner – trusted business advisor
Language and emphasis is continuing to evolve
www.workforceplanning.com.au
Workforce Planning Australia
55 Swanston Street
MELBOURNE VIC 3000
(03) 9206 8000
Tony Wallace
Principal
0427 039 306
http://au.linkedin.com/pub/tony-wallace/26/30a/540/