Strategic Workforce Planning€¦ · Strategic Workforce Planning is an iterative planning process...

May, 2018

Strategic Workforce Planning Defining the Path Forward

Internal

The nature of work is evolving

2

Traditionally stable concepts of how work is performed are being rapidly replaced by new ways of working, driven by advances in technology and the changing expectations of the modern employee

The changing reality of work now requires businesses to start

remapping their workforces to identify potential tradeoffs between:

Key drivers of change… …are creating new realities for how work is performed

Technology is

everywhere

Massive growth of AI,

cognitive, robotics

Jobs & tasks are

vulnerable to automation

Tsunami of data

Diversity, demographic,

generational change

Change in nature

of careers

Explosion in

contingent work

Current work options

Future work options Physical Proximity

Explore need for physical proximity between colleagues, workers, markets and suppliers

Automation Level

Explore opportunities for capability to be automated

Talent Category

Explore different ways to engage talent on and off of balance sheets

Internal 3

Strategic Workforce Planning is an iterative planning process that enables an organization to prepare for multiple potential scenarios as our strategy evolves

SWFP is…

A proactive and continuous process that enables the right

talent strategy and actions aligned with the needs and

priorities of the business enterprise-wide

A process to forecast current and future talent shortages and

surpluses using internal and external data

A process to determine where to allocate investments in

talent

A means to translate strategy into tangible workforce

needs and an input to organization design

SWFP is not…

An annual headcount exercise that just considers FTE

needs with no analysis of changing competencies

Short-term resourcing forecasts using only historical

workforce data

A solution to financial / budget constraints

A solution for strategy definition and organizational design

A replacement for Succession Planning for individual

positions A means to plan and manage movement into and out of

large critical workforce segments

What is Strategic Workforce Planning (SWFP)?

Internal 4

Level 0. Headcount Management

Matching of near-term resourcing requirements with financial budgets. Incorporates

business demand, workforce attrition, and demographic shifts.

Maturity of capability

Level

of

futu

re v

alu

e

Level 2. Workforce Planning & Risk Management

Five-year view of capacity and capability demand vs supply, enabled by workforce

analytics, identifying opportunities and risks to proactively shape plans

Level 3. Future Workforce Optimization

Talent and technology strategies are aligned with current and future

work requirements to provide competitive advantage.

Level 4. Workforce Economics

Linkage between value creation and business

performance is understood and continuously leveraged

1

0

4

3

Job Centric Work Centric

2

Level 1. Workforce Profiling, Segmentation &

Monitoring

Additional workforce factors layered in (e.g., job preferences,

transferable skills/experiences), with clear links to business

objectives and strategies

Mature Strategic Workforce Planning capability drives value

Internal 5

Strategic Workforce Planning workflow

At the highest-level, strategic workforce planning translates your business strategy into specific talent actions for today and tomorrow

Business Strategy Workforce Assessment Workforce Analysis Workforce Actions Iterate & Update

Define the vision for SWFP,

understand how it ties back

to business goals and gain

stakeholder buy-in

Determine the current level

of expertise against future

required skills

Forecast future demand and

internal/external supply for

critical skills and roles

Define talent actions to

close talent needs and

build our pipeline

Refresh the workforce

plan with next iteration

of the strategic plan

Key Questions

• What are the business

outcomes we want to

achieve?

• How will SWFP relate to

other key planning,

budgeting and

forecasting processes

and HR activities?

• What are you willing to

invest in successful

SWFP?

• Which roles and skills are

most critical to business

outcomes?

• How difficult are they to

replace?

• What will be expected of

these in the future?

• What level of data is

available to view different

talent segments?

• How many and what types

of resources are available

internally? Where? What is

their cost?

• Is there a deficit or surplus

in a segment?

• What is the business

impact?

• Do we need to go back and

consider other scenarios/

sensitivity in modelling?

• What actions best mitigate

risk, cost, operational and

people impacts?

• Can we alter demand?

Can we act to increase

supply?

• How do we measure

outcomes?

• What does WFP tell us

about our business plan?

Is it realistic?

• When should we

review and refresh

workforce plans?

• How can we

enable ongoing

improvement of

plans?

Internal

Diving deeper…

6

Understand

business strategy

and the WFP

requirements of key

talent segments

Identify Key Talent

Segments to target

for WFP; typically

involves roles and

skills

Customize WFP

approach to the

organization’s WFP

capacity and

capability (i.e., access

to data, reporting

tools, HRIS

configuration)

Project talent demand

based on growth

projections of

business

Define internal and

external economic

supply drivers and

assess and project

external and internal

sources of talent by

role and skill

Compare talent

supply and demand

projections to identify

talent gaps

Develop strategies to

up-skill or source new

talent internally or

externally where

required

Develop workforce

objectives and plan;

integrate WFP

processes with HR

Strategy, Finance

and Ops decisions

on an on-going

basis

Planned

Projects

Business

Strategy

Planned

Initiative

Level 1

Level 2

Level 3

Level 4 3 year Forecast

Income

Population

Expectations

Changing

Workforce

Mobility Talent Gaps

3 year Forecast

Income

Expectations

Development WFP

HR Strategy

Phase 1: Workforce Assessment Phase 2: Workforce Analysis Phase 3: Workforce Actions

Develop WFP

And Align to

HR Strategy

Develop

Talent Actions

Project Talent

Gaps

Project

Talent Supply

Project Talent

Demand

Evaluate WFP

Capacity and

Capability

Identify Key

Talent

Segments

Assess WFP

Strategy

1.1 1 .2 1.3 2 .1 2 .2 2 .3 3 .1 3 .2

Internal

• Deliver on EVP & ee

experience

• Reinforce shared

commitments

Building enterprise capabilities through People Strategy

Organization Design

• Develop organization design and operating model to enable business strategy and transformation

• Build / refresh job models to define current and future jobs and clarify job accountabilities

• Determine job levels

• Map jobs to career framework to enable employee career pathing

• Map employees to job codes

Skills & Competencies

• Identify the required knowledge, skills and competencies for the future

• Evaluate capabilities of current workforce to identify gaps against future state requirements

• Keep pulse on progress of closing targeted skills gaps

• Keep current on external capability and workforce trends

Culture

• Develop inspiring vision for business aligned to TD vision and framework

• Conduct discovery workshops to understand employee engagement and employee value proposition (EVP) more deeply

• Design and implement initiatives to address engagement opportunities and deliver on EVP

Learning & Development

• Develop training curriculum based on prioritized skill gaps identified

• Provide manager training regarding developmental planning and coaching on-the-job

• Hold leaders accountable to role model self-development

• Foster a learning culture

Reward and Recognition

• Refresh performance metrics and expectations

• Refresh market pay data mapped to new job model

• Determine premiums on different specializations

• Provide meaningful incentive and recognition programs designed to reward performance

• Clear performance expectations

• Equitable, market competitive pay practices

• Right org structure and op

model

• Clear career paths &

accountabilities

• Right numbers and types of

skills (new & legacy) to

support business strategy

• Redeploy talent where possible

• 'Buy' to fill skills gap

• Lower time-to-fill

• 'Build' to fill gap

• Build competitive differentiator

• Deliver on EVP

Outcomes

• Identify high potential and scarce talent

• Design and manage on-the-job learning opportunities

• Leverage internal talent pool to fill jobs where possible

• Manage impacted workforces

• Execute recruitment branding to attract the best talent

• Standardize and streamline job posting templates

• Proactively source candidates

Talent Management & Acquisition

A number of People Strategy dimensions can be explored to further enterprise capability development:

Internal 8

Existing

operations

analysis

Existing

workforce

analytics

Demand

forecasting

Resource

forecasting

Skill

forecasting

by projects

or operations

Skill

forecasting

by talent

segment

Predictive

modeling

Demand planning Supply planning

Ability to model multiple supply and demand predictive scenarios using

internal and external data-insight used to inform future business investment

decisions

Ability to identify and manage the skills required to maximize growth

and profitability

Ability to forecast the number of people required to

execute a portfolio of operations and projects in future

Ability to capture accurate estimates of the workforce

required to execute existing operations and projects

Ability to forecast the right people with the right skills and

competencies required to support existing and future

operations and projects

SWFP does not need to be sophisticated to add value; benefits can be gained by building sophistication over time

Internal 9

Future of SWFP: From “roles and workforce” to “activities and Op Model”

Organizations pushing the thinking on the future of workforce planning are changing the lens from “job centric” workforce planning, to “activity centric” planning in order to consider how / where technology, robotics and talent types can be leveraged

• In this model, work activities within specific roles,

functions, or across the broader enterprise are

categorized into a common language /

framework:

1. Assessment

2. Problem solving

3. Production

4. Communication

5. Supervision

• Activity categories are further distilled into sub-

categories of discrete tasks

• These sub-categories are then disaggregated, to

allow organizations to see where and how time is

being spent within specific roles, functions, or

across the broader enterprise

• This process allows organizations to identify where

opportunities may exist to automate activities

and re-define roles

1

2

3

4

1 2

Internal 10

TD's Workforce Planning Approach

A six step approach enables us to understand the capabilities profile of the current talent workforce and potential future talent and capabilities required to execute the strategic priorities as outlined in the business strategy

1. Capability

Assessment

2. Pivotal Roles and

Capabilities Validation

3. Internal Workforce

Supply

4. Internal Workforce Demand

5. External Workforce

Supply

6. Talent Strategy

• Validate pivotal roles and skills and identify current and

future talent and skills gaps which hinder the function’s

ability to execute on its strategic priorities

• Forecast internal supply and demand as well as external

supply of talent for pivotal roles over the next 3 to 5 years

using an interactive workforce planning forecasting tool

• Provide scenario analysis using selected micro and

macroeconomic variables that can materially affect the

demand and supply of talent for pivotal roles and skills

• Provide recommendations and identify quick wins on

addressing skills/talent gaps in pivotal roles

• Develop Talent Strategy (3-5 year) in collaboration with

key partners across HR and the business, covering the

acquisition, development and engagement of talent

• Prepare an execution roadmap for the Talent Strategy

together with relevant stakeholders across the enterprise

• Develop a change management plan aimed at continuing

to engage relevant stakeholders in the monitoring and

execution of the roadmap

• Plan for the sustainment of the Talent Strategy

1. What talent and

capability gaps do

we currently have?

2. What are the

pivotal roles and

Capabilities needed

to achieve strategic

priorities?

3. What is the

expected internal

workforce supply in

pivotal roles over the

next 3 to 5 years?

4. What is the workforce

required in pivotal roles

over the next 3 to 5 years


priorities?

5. Where are

other key

talent

sources?

6. What Talent Strategies

should be adopted around the

acquisition, development and

engagement of the talent

required to support its

business priorities?

Internal 11

Step One: Workforce Planning Approach

A six step approach was undertaken to understand the capabilities profile of the current talent workforce and potential future talent and capabilities required to execute the strategic priorities as outlined in the business strategy

1. Capability

Assessment




Supply



Supply

6. Talent Strategy

What talent and capability gaps do we currently

have? • Conduct Capability Assessment to determine baseline

• Analyze the results of the capabilities assessment survey

and identify current talent and skill gaps hindering the ability

to execute on its strategic priorities

• Enable the identification of trends and key takeaways from

capabilities assessment through the use of a data

visualization/analysis tool

• Provide initial recommendations and quick wins on

addressing capability gaps in pivotal roles

1. What talent and

capability gaps do

we currently have?

2. What are the

pivotal roles and

Capabilities needed


priorities?

3. What is the

expected internal

workforce supply in


next 3 to 5 years?





priorities?

5. Where are

other key

talent

sources?







Internal 12

Step Two: Workforce Planning Approach A six step approach was undertaken to understand the capabilities profile of the current talent workforce and potential future talent and capabilities required to execute the strategic priorities as outlined in the business strategy

1. Capability

Assessment




Supply



Supply

6. Talent Strategy

2. What are the pivotal roles and Capabilities

needed to achieve strategic priorities? • Conduct interviews and focus groups with relevant

stakeholders from LOBs

• Synthesize and define roles and capabilities that are pivotal

in supporting the business achieve its strategic priorities,

1. What talent and

capability gaps do

we currently have?

2. What are the

pivotal roles and

Capabilities needed


priorities?

3. What is the

expected internal

workforce supply in


next 3 to 5 years?





priorities?

5. Where are

other key

talent

sources?







Internal 13

Step Three: Workforce Planning Approach A six step approach was undertaken to understand the capabilities profile of the current talent workforce and potential future talent and capabilities required to execute the strategic priorities as outlined in the business strategy

1. Capability

Assessment




Supply



Supply

6. Talent Strategy

3. What is the expected internal workforce

supply in pivotal roles over the next 3 to 5

years? • Develop workforce planning forecasting tool to predict

internal labour supply in pivotal roles and capabilities across

the different group’s locations over the next 3 to 5 years

• Perform scenario analysis on different micro and macro

economic variables that can materially affect internal

workforce supply in pivotal roles over the next 3 to 5 years

1. What talent and

capability gaps do

we currently have?

2. What are the

pivotal roles and

Capabilities needed


priorities?

3. What is the

expected internal

workforce supply in


next 3 to 5 years?





priorities?

5. Where are

other key

talent

sources?







Internal 14

Step Four: Workforce Planning Approach


1. Capability

Assessment




Supply



Supply

6. Talent Strategy

4. What is the workforce required in pivotal

roles over the next 3 to 5 years to achieve

strategic priorities? • Use workforce planning forecasting tool to predict workforce

demand in pivotal roles over the next 3 to 5 years

• Conduct scenario analysis for selected micro and macro

economic variables that can materially affect demand of

talent in pivotal roles over the next 3 to 5 years

• Develop gap analysis and provide recommendations to

mitigate any workforce gaps

1. What talent and

capability gaps do

we currently have?

2. What are the

pivotal roles and

Capabilities needed


priorities?

3. What is the

expected internal

workforce supply in


next 3 to 5 years?





priorities?

5. Where are

other key

talent

sources?







Internal 15

Step Five: Workforce Planning Approach


1. Capability

Assessment




Supply



Supply

6. Talent Strategy

5. Where are other key talent sources? • Analyze labour market supply across respective international

locations

• Use workforce planning forecasting tool to predict workforce

supply in pivotal roles and capabilities across all main

locations

1. What talent and

capability gaps do

we currently have?

2. What are the

pivotal roles and

Capabilities needed


priorities?

3. What is the

expected internal

workforce supply in


next 3 to 5 years?





priorities?

5. Where are

other key

talent

sources?







Internal 16

Step Six: Workforce Planning Approach


1. Capability

Assessment




Supply



Supply

6. Talent Strategy

6. What Talent Strategies should be adopted

around the acquisition, development and

engagement of the talent required to support its

business priorities? • Develop target state talent and capabilities requirements

• Facilitate the development of a Talent Strategy with

collaboration of key partners across HR covering the

acquisition, development and engagement of talent in pivotal

roles

• Develop execution roadmap in collaboration with relevant

stakeholders across different LOBs including initiative

sequencing, milestones and dependencies

• Draft change management plan to enable the implementation

of the roadmap and continue to engage relevant

stakeholders

1. What talent and

capability gaps do

we currently have?

2. What are the

pivotal roles and

Capabilities needed


priorities?

3. What is the

expected internal

workforce supply in


next 3 to 5 years?





priorities?

5. Where are

other key

talent

sources?







Internal 17

Activity: Worksheet

While thinking about the area you lead/support/partner with, please provide your initial reaction to the following questions:

1. Capability Assessment




Supply



Supply

6. Talent Strategy

0. What capabilities are critical to the future success of your business/ function?

1. What capability gaps do you currently have?

2. What are the pivotal roles and Capabilities needed to achieve strategic priorities?

3. What is the expected internal workforce supply in pivotal roles over the next 3 to 5 years?

4. What is the workforce required in pivotal roles over the next 3 to 5 years to achieve strategic priorities?

5. Where are key talent sources?

6. What Talent Strategies should be adopted around the acquisition, development and engagement of the

talent required to support its business priorities?

Strategic Workforce Planning€¦ · Strategic Workforce Planning is an iterative planning process...

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