Customer presentation swp 07 2011

Name

Date

Achieve Your Business Goals with

Strategic Workforce Planning

© 2011 SAP AG. All rights reserved. 3

Agenda

Key Trends and Issues

Solution Overview

Why SAP? Top Reasons


External PressuresMajor changes driving the business world

Demographic change

Many countries (EU, Canada, Japan) are rapidly aging and shrinking

Other regions (Asia, Africa, Latin America) are growing and

improving their educational systems

New employment models

Workforce is becoming more “mobile”

Skills and job types are evolving (e.g. knowledge worker)

Emerging markets

Need to address new market situations; for example, a shift from old and mature

markets to new emerging markets

Faster economic cycles

Economic developments are harder to forecast, which makes it more

important to find right answers regarding workforce fast and effectively


Internal PressuresStrategic Workforce Planning is essential for companies with…

…long lead times to fill jobs

Examples: Pharmaceutical, Engineering, Aviation

…major transformation

Companies that are faced with reinventing their business model or enter

new markets with new products & services

Industries in which legal regulations or government decisions significantly

impact companies

Examples: Automotive, IT, Public Sector, Energy Sector

…a high cost of human resources

Examples: (Professional) Service Provider, IT, BPO


Strategic business imperatives are not translated into the company’s workforce plan

The organization is challenged to progress towards its strategic goals

Strategic topics are not supported with enough qualified employees

Management

Costs: HR costs are too high due to a large number of ad-hoc hires

Revenue: Revenue opportunities cannot be exploited because the right talent is not available

Lack of insight into key critical resources and potential skill shortages

Right resources cannot be sourced in time or without significant cost

Challenges in identifying risks regarding the workforce

Process is manual, ad-hoc, cumbersome, mostly operational and misaligned

Inadequate tools to provide visibility into data

Difficult to consolidate planning across the organization

Challenges in Managing the Workforce on a Strategic Level

Human Resources

HR IT


Strategic workforce planning includes the set of processes,

people and tools to ensure that organizations always have:

the right resources

with the right skills

in the right job

at the right moment

in the right quantity

in the right place

at the right price

to execute the business strategy

What kind of activities do we have to do today to enable execution tomorrow?

Are we building talent according to our strategy?

Will we have the right resources to enter new markets or launch new products?

Manage Your Workforce to Achieve Your Business Objectives


Agenda


Solution Overview



What is Strategic Workforce Planning?

The business process for ensuring that an organization

has a clear understanding of the workforce resources

required to achieve future business success.

Is… Is Not…

Ongoing process

Long term outlook beyond two years

HR history a starting point for simulations

Key jobs driving and supporting strategy

Focused across the enterprise

Identifying and addressing talent gaps

Driving HR strategy

One time, point in time

Next week, month, quarter, year

HR analytics

Named resources

Project demand

Skill matching and workforce scheduling

Capacity planning & forecasting (HC/budget)


Mid to Long Term Strategic Planning

Near Term Operational Planning

Deployment Management

Business Planning & Consolidation

MRS• Assignments

• Scheduling

• Utilization

HCM• HR/Payroll

• Talent Mgmt.

• …

Management

Project

Manager

Resource

Manager

HR

Long term

workforce plan

Headcount, budget,

compensation change Line

Manager

HR

Line

Manager

Project

Resource

Plan

Levels of Workforce Planning, Deployment, Management

Operational

Workforce Planning

Resource

Management Workforce Demographics Simulation and Modeling

Bottom-Up: Plan detailed

workforce demand on lower

organizational levels

Staff projects based on skill

requirements, availability,

and preferences

Focus on future development

of internal and external

workforce supply & demand

and provide solutions

Determine workforce supply

and demand for key jobs,

and derive high level plans

Strategic Workforce Planning

SWP


Strategy Department

Gives input regarding

strategic drivers and

receives workforce

intelligence insights

Business Unit

Decides on long term

workforce plan based

on given information

€

Finance

Gives input regarding

financial figures and

receives insights for

midterm financial

planning

HR

HR Business Partner

Consults with Business

Units based on workforce

intelligence and

drives action plans as

final deliverable from

the SWP process

Workforce

Planner

Orchestrates,

drives and monitors

workforce planning

initiatives and processes

!

HR HR HR

Corporate HR

Recruiting, Staffing, Talent Management

and other HR functions support

execution of workforce action plans

Who is Involved in the Process?


Company strategy is translated

and executed in the strategic

workforce planning process

Business process covers related

activities, with interfaces and

dependencies to other

processes

The business process is

supported by reporting,

analyzing and planning tools

Accurate and complete data

produces the best possible plan

Integrated business

planning

Ensure process ownership & governance.

Systems to support

business needs.

Required HR and Finance

data must be available and

accurate.

STRATEGY

PROCESS

TOOLS

MASTER DATA

Analy ze internal& external supply

Deriv e strategic workforce

demandAnaly ze Gaps

Dev elop action plan & handov er

Monitor progress & adjust process

Key Building Blocks for Accurate Planning


Workforce

Planning

Process

Develop

workforce

action plans

& handover

Monitor

progress &

adjust processAnalyze

internal &

external

supply

Derive

strategic

workforce

demand

Analyze gaps

Monitor progress and define

countermeasures in case of

deviations

Lessons learned: improve

execution processes, guidelines,

database, etc.

Analyze internal workforce

structure and dynamics

(quantitative & qualitative)

Analyze external workforce,

labor market conditions,

demographics

Strategic Input:e.g. Business StrategyFinancial StrategyLocation StrategyM&A Strategy

Execute action plans: e.g. Business workforce plan, Training, Recruiting, Contractor Management, M&A, In-/Out-Sourcing, Partner Management

Derive operational targets

based on a decision framework:

Hiring & retiring

Succession planning

Training

In- / Out–Sourcing

Contractor Management

M&A

Partner Management

Identify and analyze gaps

Translate business strategy

into quantitative and qualitative

workforce demand

Simulate various scenarios

Monitor

progress &

adjust process

Workforce

Planning

Process

Develop

workforce

action plans

& handover Derive

strategic

workforce

demand

Analyze gaps

Monitor

progress &

adjust process Analyze

workforce

supply

Defined and Integrated Business Process is Key for Success


Analyze Workforce Supply

Demographics Projections

Age and Retirement

Gender, Ethnicity, Country of Origin


Analyze Workforce Supply

Jobs driving and supporting strategy

Employee or non-employee (contractor, intern)

Employee or manager

Years of service/seniority

Critical

Core

Expendable

Importance to driving the business


Derive Strategic Workforce Demand

Demand

Drivers – industry & company specific, examples include barrels of oil, moving tonnage,

cases of soda, utilization, kilowatt hours, revenue, etc.

Workforce projection

$ / €

Translate Strategic Input:• Business Strategy• Financial Strategy• Location Strategy• M&A Strategy


Analyze Gaps

Supply and demand analysis and projections

Internal supply

Projected demand

Market impact

– Availability

– Cost


Develop Action Plans

HR strategies and action plans

What human resources do I need?

How do I develop my resources?

How do I retain my key resources?

Human Capital

Strategy

Engage

Acquire

PromoteRetain

Develop


Monitor and Adjust

Measure progress

Monitor progress towards plans

Align plans with reality

Define countermeasures in case of deviations

Take corrective action, adjust plans


Analyze workforce composition

Pre-packaged dashboards focused on the needs of HR

executives at enterprise level and across lines of business

Focus on and co-ordinate key critical resources at group level

Real-time insight and analysis of workforce demographics,

distribution, and skills

Define strategic goals

Refine complex workforce models driven by strategic revenue,

FTE, hiring & attrition rates, cost, retirement age

Target revenue and FTE across time by line of business,

location, current and strategic role

Real-time simulation and modeling

Exploit the power of SAP HANA to perform complex simulations

on demand and in “real” real-time

Simulate the “true cost” of employees including hiring,

overhead, retraining and one-time charges

Make informed decisions to close strategic gaps while keeping

personnel costs in check

Transparency, Modeling and Simulation, Analysis,

Planning, Monitor


What Does this Mean for Your Business?

Understand where critical resource gaps

remain that will impede business progress

Understand the future impact of workforce

decisions

Reduce risk associated with sourcing, especially

for highly skilled and technical personnel

Enter new markets and support new

opportunities with the right talent

Monitor progress against goals


Agenda


Solution Overview



Why SAP BusinessObjects Strategic Workforce Planning?

Complete Business Process

Power of SAP In-Memory Computing

Flexible and Configurable

Analytics

• Leverage data you already have to build plans and address your future workforce needs

• Perform complex calculations and simulations to model the future of your workforce

• Navigate through your data to identify issues and understand root causes

Thank You!

Appendix


In-Memory Computing with SAP

SAP HANA

SAP

Business

Suite

SAP BW

Other Sources

replicate

ETL

SAP HANA

modeling

BI Clients

SQ

L

MD

X

BIC

S

ApplicationsWhat is SAP HANA? SAP HANA is a pre-configured appliance that

includes in-memory software bundled with

hardware

Includes tools for data modeling, data and life

cycle management, security, operations, etc.

Provides support for multiple interfaces

HANA’s Capabilities Analyze information in real-time at

unprecedented speeds on large volumes of non-

aggregated data.

Create flexible analytic models based on real-

time and historic business data

Foundation for new category of applications

(e.g., planning, simulation) to significantly

outperform current applications in category

Minimizes data duplication

Customer presentation swp 07 2011

Business

Transcript of Customer presentation swp 07 2011