STRATEGIC WORKFORCE PLANNING (SWP)

CHARLES COTTERSWAZI BANK

7-8 JULY 2016THE ROYAL VILLAS, SWAZILANDwww.slideshare.net/CharlesCotter

Defining Strategic Workforce Planning (SWP)

Diagnosis of current SWP practices

Research-based reality check

Business Case: Strategic imperative and alignment of SWP

Evaluating the efficiency and effectiveness of SWP process

TRAINING PROGRAMME OVERVIEW – DAY 1

Applying the 6-step (SPADIC) SWP process

S CANNING

P ROFILING

A NALYZING

D EVELOPING

I MPLEMENTING

C ONTROLLING

TRAINING PROGRAMME OVERVIEW – DAY 2

Individual activity:

Complete the statement by inserting one (1) word only. As a HR Manager, in order to effectively apply Strategic Workforce/HR planning, I need to/to be .…………………………………..

Now find other learners with the same word as you.

Jot these words down on the flip-chart.

Each learner will have the opportunity to elaborate on their chosen word.

INTRODUCTORY ACTIVITY

Human Resources Management (HRM)

The key functions of HRM

Strategic Human Resources Management (SHRM)

Ulrich’s view of SHRM and Roles Model

Norton and Kaplan’s Balanced Scorecard and the HR Scorecard

Workforce/HR Planning and Strategic Workforce Planning

DEFINING THE FUNDAMENTAL CONCEPTS

THE KEY FUNCTIONS OF HRM VALUE CHAIN

STRATEGIC HRM VALUE CHAIN

THE BALANCED BUSINESS SCORECARD

EXAMPLE: STRATEGY MAP

EXAMPLE: STRATEGY MAP

DEFINING WORKFORCE PLANNING (WFP)

WFP - GETTING IT “RIGHT”

Group Discussion:

By referring to the Strategic HRM model, evaluate whether the Swazi Bank’s HRM function is currently strategic.

Identify areas of improvement (gaps)

Recommend how the HRM function can re-position itself as a strategic business partner.

LEARNING ACTIVITY 1

INTEGRATING HR AND BUSINESS PLANNING

HOLISTIC SWP PROCESS

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?

CLEAR VIEW?

CURRENT: HRM-BASED WORKFORCE PLANNING ARCHITECTURE

REQUIRED: BUSINESS-BASED SWP ARCHITECTURE

#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).

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

DIAGNOSIS: 10 BEST PRACTICE GUIDELINES FOR EFFECTIVE SWP

Individual Activity:

Diagnose the Swazi Bank’s current Workforce Planning practices against the ten (10) best practice criteria.

Group Discussion:   Identify gaps and recommend improvement

strategies.

LEARNING ACTIVITY 2

LEVELS OF SWP MATURITY

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.

RESEARCH-BASED (BERSIN) REALITY CHECK

“Strategic workforce planning helps organizations understand the talent required to deliver their strategy – without it, the costs are significant. A talented and aligned workforce is crucial for bringing strategy to life and ensuring an organization delivers on its objectives” (Hay Group UK)

“Strategic workforce planning has become an integral business function for today’s organizations; those that fail to embrace it will likely struggle to have the right talent in place, achieve key objectives and operate sustainably. However, the companies that understand how the intersection of analytics, technology and collaboration can support overall business strategy will be better suited for success.” (Carl Rhodes, CEO: HCI).

THE STRATEGIC IMPERATIVE OF WORKFORCE PLANNING

The companies that get it right understand that strategic workforce planning must be a collaborative process, involving full alignment between people, data and technology – enabling the company to drive the important changes that lead to successful SWP and positive overall business results.

A Disconnect between Expectations and Results: Although 69% of respondents report that SWP is an essential/high priority at their organizations, almost half (45%) report that their organization is unprepared for the talent needs of the future.

SWP is Underutilized: Overall, 43% of those surveyed said that their SWP process is scalable across the organization, and even less (37%) stated that their SWP process is used throughout the organization.

The Biggest Obstacles: Factors such as lack of resources and commitment to the process, an unclear definition of SWP and poor technology continue to be the biggest barriers to SWP success. 73% of respondents rate their technology for SWP as far from ideal, and 52% report that their organization is not adequately staffed to conduct SWP.

SUCCESSFUL STRATEGIC WORKFORCE PLANNING THROUGH COLLABORATION (HCI:

2014)

Group Discussion:

By referring to the illustration of the strategic workforce planning process, evaluate the efficiency and effectiveness of each process step at Swazi Bank.

  Identify areas of improvement (gaps) and

recommend how HR management can enhance performance and value add.

LEARNING ACTIVITY 3

SYSTEMS VIEW - SWP PROCESS ILLUSTRATED

S CANNING

P ROFILING

A NALYZING

D EVELOPING

I MPLEMENTING

C ONTROLLING

SWP: S-P-A-D-I-C PROCESS/CYCLE

S-P-A-D-I-C

THE NATURE OF THE BUSINESS ENVIRONMENT – V-U-C-A

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

STEP 1: SCANNING – STRATEGIC ANALYSIS

Group Discussion:

By utilizing a SWOT Analysis Matrix, perform an environmental scan/analysis of both the internal and external environments for Swazi Bank.

Internally, identify organizational strengths and weaknesses and externally identify opportunities and threats.

LEARNING ACTIVITY 4

PESTEL ANALYSIS

Forecasting HR Demand (Futuring)

Segmentation

Measuring Current Supply

STEP 2: PROFILING

"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?

FUTURING

Forecasting should consider the past and the present requirements as well as future organizational direction/s

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

FORECASTING HR DEMAND

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

MEASURING CURRENT SUPPLY

STEP 3: ANALYZING – RECONCILING/GAP ANALYSIS

STEP 4: DEVELOPING – STRATEGIC HRM ACTION PLANS

Group Discussion:

Apply steps 2, 3 and 4 of the Workforce/HRM Planning process in the context of Swazi Bank.

Step 2: Forecasting Human Resource Demand

Step 3: Analyzing Supply

Step 4: Reconciling

LEARNING ACTIVITY 5

Develop and initiate a Resourcing Strategy

Matching strategy (intervention) with scenario (surplus or deficit)

Action plan-based implementation methodology

STEP 5: IMPLEMENTING - INTERVENTIONS

There are five SHRM action plans for meeting your organization's needs in the future:

Restructuring strategies

Training and development strategies

Recruitment strategies

Outsourcing strategies

Collaboration strategies

STRATEGIC HRM ACTION PLANS

HRM ACTION PLAN (INTERVENTION) TEMPLATE

Group Discussion:

Apply step 5 of the Workforce/HR Planning process in the context of Swazi Bank.

Step 5: Developing HR Action Plan

Prioritize these HR Action Plans

LEARNING ACTIVITY 6

Tracking implementation progress – monitoring, measuring, evaluating and reporting

STEP 6: CONTROLLING

Group Discussion:

Apply step 6 of the Workforce/HR Planning process in the context of Swazi Bank.

Focus on the process and methods/tools that you will utilize.

Step 6: Monitor, Evaluate and Adjust the HR Action Plan

LEARNING ACTIVITY 7

CONCLUSION

Key points

Summary

Questions

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

LEARNING “TAKE-AWAYS” – SWP AND ALIGNMENT (DAYS 1-2)

CONTACT DETAILS

Charles Cotter

(+27) 84 562 9446

charlescot@polka.co.za

LinkedIn

Twitter: Charles_Cotter

http://www.slideshare.net/CharlesCotter