Workforce & Succession Planning

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Workforce Succession Planning

• Gary Watkins
• Workplace Performance Technologies (Pty) Ltd
• trading as Workinfo.com

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AGENDA

• Introductions
• Admin Issues
• Workforce Planning Intro
• Workforce Planning Models
• Phase 1
• Phase 2

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Admin Issues?

• Breaks
• Tea 1000 10h30
• Lunch 13h00 14h00
• Tea 15h00 15h30
• Workbook and Exercises

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VP of Workforce Planning?

• "Being strategic demands that you look at the big
  picture, that you forecast and attempt to prepare
  for the future by taking into account as many
  variables as possible. Without forecasting
  fluctuations needed in the demand, supply, and
  movement of talent, a.k.a. workforce planning,
  HR will continue to get blindsided by "surprise"
  internal and external events.
• Dr. John Sullivan

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What is Workforce Planning?

• Right people - With the Right skills - In the
  Right Place - At the Right Time
• or
• Systematic approach for identifying the workforce
  competencies required to meet the companys
  strategic business objectives and developing the
  strategies to achieve this

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What is Workforce Planning?

• Simply put..
• Attracting and retaining the talent / skills
  needed to survive

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Main Drivers of Workforce Planning
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Why do Workforce Planning?

• Addresses the organizations competency/ skills
  needs
• Provides workforce demographics, retirement
  projections, and succession planning.
• Provides rationale linked to expenditures for
  recruitment, training, employee development,
  retention
• Provides tools to address changes
• Assists in creating a high quality workforce
• Provides critical information

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Why do Workforce Planning (2)?

• EE numerical targets
• WSP
• BBBEE
• Emerging competencies / tasks needed
• Retrenchments
• Transfers, mergers and acquisitions
• New HR service delivery models
• Human capital/talent management
• Transformation initiatives in public sector
• Labour market trends
• Social/Market influences HIV/AIDS,

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Why do Workforce Planning (3)?

• Demographics and Trends in the workplace have
  changed.
• These changes have impacted YOUR organisation
• Recognising and being prepared (WFP) you ensure
  you have the necessary human capital to achieve
  your mission (Business Strategy/objectives)

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Trends? Activity

• Baby Boomers (BB) are getting older
• BB redefine retirement age
• Technology changes HR Function
• New Legislation
• Labour pool is shrinking
• Globalisation
• Workforce needed for tomorrow is very different
  from today

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Trends?????
IPMA Workforce Planning Resource Guide
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Therefore WFP is.
IPMA Workforce Planning Resource Guide
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WFP and Succession Planning?

• WFP Right People, right place, right time
• Succession Planning Subset of WFP right
  leadership in every place in the organisation
  (prepare for advancement through development)
  talent management!
• Page 9

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HR Strategic Plan
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Changing HR Roles and Strategy

• HR strategic HR Skills and abilities
• Competencies
• Leader influence the direction of the business
• Change Agent addressing and initiating
  improvements
• Business Partner
• WFP integral to your HR Strategy

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Exercise
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Shared Service Models
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Is there a generic model?

• Both public and private, have developed models
  for workforce planningthe processes are all very
  much alike.
• All rely on an analysis of
• present workforce competencies (demographics,
  retirement projections, etc)
• identification of competencies needed in the
  future
• a comparison of the present workforce to future
  needs to identify competency gaps and surpluses
• the preparation of plans for building the
  workforce needed in the future and
• an evaluation process to assure that the
  workforce competency model remains valid and that
  objectives are being met.
• Source A Guide to Workforce Planning in the U.S.
  Department of the Interior, Office of Personnel
  Policy

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Workforce Planning Model
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WFP Model
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Phase 1 Planning Stage
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Strategic planning (1)

• Assemble workforce planning team
• Assess organisational readiness for workforce
  planning
• Resources and capabilities
• Commitment
• Expertise
• Time
• Money
• Technology
• Develop communication strategy
• Assess employee

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Strategic planning (2)

• Conduct analysis of business requirements
• Determine scope of workforce planning project
• Identify outcome priorities

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WFP Scope

• What is the focus of the plan?
• Why are we doing it?
• What do we want to achieve?
• Is this plan for the whole organisation or just
  for my work unit?
• Where does the plan fit in terms of the
  organisations hierarchy of plans that is,
  strategic, operational, corporate, specific
  purpose?

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Purpose of Planning Phase

• Focus on function, not on people needed to do the
  job. Once you have a strategic plan, you need to
  think about what functions you will need to
  perform in order to accomplish the strategic
  mission of your organization.
• Key positions or their work requirements will NOT
  remain forever static.
• There is no foolproof way to predict key
  positions with absolute certainty. Some possible
  approaches are

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Analytic Tools Exercises Exercise

• Functional Scanning A systematic process of
  examining external trends.
• Economic, government/legal, technological,
  social, geographical, and other issues affecting
  the organization's external environment.
• Organizational Analysis A systematic process of
  examining how an organization is positioning
  itself to address future challenges (SWOT
  analysis).
• How well-positioned is the organization to
  respond to the effects of future trends?
• What action steps can the organization take to
  meet the threats and opportunities posed by
  future trends?
• How can the organization maximize its strengths
  and minimize its weaknesses as the future unfolds?

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Impact Analysis

• Overview of impact analysis template

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Results Matrix
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Phase 2 Analysis Stage
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Phase 2 Analysis Stage (ii)
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Workforce Planning - Analysis

• Key Questions
• Approach
• How will you achieve your goals? (how will you
  reduce the gap?)
• Challenges
• What are the strengths, weaknesses, opportunities
  and threats you must understand in order to
  achieve your vision
• Benefits
• What is your value proposition to business?
• Metrics
• How will you know if you are successful?

Supply Analysis focuses on identifying
organizational competencies, analyzing staff
demographics, and identifying employment trends.
Competencies? Labour Market? Org.
movement Business Activity Projected
Needs? Impact of Changes? Technology?
WFP IMPLEMENTATION ROADMAP
Demand Analysis deals with measures of future
activities and workloads, and describing the
competency set needed by the workforce of the
future.
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Workforce Planning - Analysis

• Key Questions
• Approach
• How will you achieve your goals? (how will you
  reduce the gap?)
• Challenges
• What are the strengths, weaknesses, opportunities
  and threats you must understand in order to
  achieve your vision
• Benefits
• What is your value proposition to business?
• Metrics
• How will you know if you are successful?

Supply Analysis focuses on identifying
organizational competencies, analyzing staff
demographics, and identifying employment trends.
Competencies? Labour Market? Org.
movement Business Activity Projected
Needs? Impact of Changes? Technology?
WFP IMPLEMENTATION ROADMAP
Demand Analysis deals with measures of future
activities and workloads, and describing the
competency set needed by the workforce of the
future.
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Analysis Supply Demand

• Scan the environment
• External Environment
• Demand and Supply of workers
• Emerging occupations
• Retirements
• Competitors
• Legislation
• Competitors
• Economic conditions
• ..

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Analysis Supply Demand

• Workforce Profiles
• How many employees at each organizational level?
• What is the grade structure for these levels?
• What is the average education level/grade/step/tim
  e in position for employees in this field?
• What is the turnover rate? Are employees leaving
  the organisation to transfer to other
  organizations (public / private / competitors)?
• Are employees in this field moving around within
  the organisation?
• Are employees retiring when eligible?
• What is the predicted retirement count for the
  next five year?
• What is the average age and years of service at
  retirement?
• What are the gender/racial/age/disabilities
  statistics for this field?
• How are contract employees utilized?
• Can / Should any of the work be outsourced?

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Analysis Supply Demand

• Demand Analysis
• Qualitative data on anticipated workload changes
• Workforce changes during the planning period
• Qualitative and quantitative data on future
  competency requirements

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Workbook Resources

• Supply
• Demand
• Summarise

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Analysis Competencies

• Competencies are a set of behaviours that
  encompass skills, knowledge, abilities, and
  personal attributes are critical to successful
  work accomplishment.
• Workforce Skills Analysis
• The skills needed to carry out the a function at
  an organisational level
• Core Competencies
• Across the organisation and between jobs
• Individual Competencies

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Analysis Skills Competencies

• What skills are currently available?
• What skills will be needed in the future?
• Gap?
• Competency Model?
• A map to display a set of competencies that are
  aligned to the company vision, mission and
  strategic goals.

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Analysis Skills Competencies

• Developing Competency Sets
• Perform Job Analysis to identify job tasks for
  critical positions
• Broaden to include Knowledge, Skills and
  Abilities
• Identify Job competencies (effective performance)
• Develop model for new roles
• Develop preliminary clusters for organisational
  positions
• Page 101 of exercise book

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Gap Analysis

• Indication
• Future shortage
• Strategy
• Recruitment
• Training
• Succession
• Critical gaps analysed
• Timely intervention

Supply is less than Forecast
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Gap Analysis

• Indication
• Future excess
• Strategy
• Skill sets no longer needed?
• Retraining
• Transfers
• Separation incentives?

Supply is greater than Forecast
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Gap Analysis Process
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• Action Items
• Phase 3 Implementation
• Phase 4 Evaluation Monitoring

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Technology Will Become The Norm
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Phase 3 Implementation Stage
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Setting the Strategic Direction

• This is the process of preparing a model for your
  organization's long term success. All
  organisations should establish a three or
  five-year strategic plan, and continually update
  and evaluate it in terms of mission changes and
  results.
• "...a continuous and systematic process where the
  guiding members of an organization make decisions
  about its future, develop the necessary
  procedures and operations to achieve that future,
  and determine how success is to be defined."
• Goodstein, Nolan and Pfeiffer

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Setting the Strategic Direction

• Organize and mobilize strategic partners Locate
  and enlist key players within the organization
  and among customers.
• Set vision, mission, value, and objectives
  Compose vision, mission, values, and objective
  statements that provide a foundation for defining
  and implementing strategic plans.
• Review organizational structure Examine current
  workforce demographics, competencies, and
  workload.

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Setting the Strategic Direction

• Conduct business process reengineering Analyze
  and redesign processes across the organization.
• Set measures for organizational performance
  Define how the organization will know when and if
  it has succeeded.
• Position HR to be an active partner Put HR
  leaders in the front of the strategic planning
  effort.

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Strategy Development

• Appropriate recruitment, development, and
  retention strategies and timelines to address
  gaps and surpluses to ensure that the
  organization will have appropriate staffing to
  meet its future functional requirements and carry
  out its mission.

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Strategy Development

• The final step involves the development of
  strategies to address future gaps and surpluses.
• There is a wide range of strategies
• There is also a myriad of factors that will
  influence which strategy or, more likely, which
  combination of strategies that should be used.
  Some of these factors include, but are by no
  means limited to, the following

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Considerations?

• Time. Is there enough time to develop staff
  internally for anticipated vacancies or new
  competency needs, or is special, fast-paced
  recruitment the best approach?
• Resources. The availability of adequate resources
  will likely influence which strategies are used
  and to what degree, as well as priorities and
  timing.
• Internal depth. Do existing staff demonstrate the
  potential or interest to develop new competencies
  and assume new or modified positions, or is
  external recruitment needed?
• In-demand competencies. How high the
  competition is for the needed future competencies
  may influence whether recruitment versus internal
  development and succession is the most effective
  strategy, especially when compensation levels are
  limited.
• Workplace and workforce dynamics. Whether
  particular productivity and retention strategies
  need to be deployed will be influenced by
  workplace climate (e.g., employee satisfaction
  levels), workforce age, diversity, personal
  needs, etc.
• Job classifications. Do the presently used job
  classifications and position descriptions reflect
  the future functional requirements and
  competencies needed? Does the structure of the
  classification series have enough flexibility to
  recognize competency growth and employee
  succession in a timely fashion? Does it allow
  compensation flexibility?

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Transactional vs Workforce Planning

• Operational
• Filling of current day to day vacancies

• Workforce Planning
• Competency gap analysis
• Long term identification of staffing needs,
  development of long term talent acquisition
  retention methods

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Develop Workforce Strategy

• The overall result of this step is a workforce
  plan that provides ways to ensure that the
  organization will have the appropriate staff and
  other personnel, e.g., contingent workforce, to
  do its mission related work.
• Workforce plan components
• Workforce plans should be updated at least
  annually and should include the following
• staffing needs assessment
• business plan requirements
• workforce composition and demographics
• skills gap analysis
• identification of skills needed and those no
  longer needed
• assessment of training and development needs and
  resources
• assessment of recruiting needs and resources
• evaluation and
• action plans.

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Implementation

• Certain basics of any good project management
  plan should be addressed when implementing the
  Workforce Plan strategies which include
• Ensuring organization buy-in and support.
• Allocating necessary resources to carry out
  workforce strategies.
• Clarifying roles and responsibilities in
  implementing strategies. This includes
  identifying who is involved in implementing what,
  and where coordination among different parts of
  the organization or with different organisations
  is needed.
• Establishing timelines.
• Determining performance measures milestones and
  expected end product.
• Communication of plan. The basis of the plan, as
  well as its elements, should be communicated to
  all employees. That is, why and how it was
  developed, how it will be applied, and how it
  will affect staff.

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Initiatives to kick start WFPlanning

• In-house conference on workforce planning
• Briefing sessions with line managers (focus
  groups) on key principles
• Build grassroots appreciation of w/force planning
  how benefit line managers/ business
• Use the language of finance / operations
  principles of project management
• Build awareness / knowledgebase / case studies
  (intranets)

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Phase 4 Evaluation Stage
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Evaluation

• Consider the following in evaluating the planning
  effort and preparing for the next planning
  project. Most of these questions will become
  relevant only after you are fairly far along in
  implementing solutions.
• Has the strategic plan or other plans changed
  since the beginning of the effort?
• If so, what are the implications for the
  strategies implemented?
• Have the implemented strategies achieved the
  intended results?
• What worked well? What didn't?
• To what extent have demand and supply projections
  been borne out?
• Is a new analysis necessary before revising the
  strategies?
• What adjustments to the strategies are needed?
• What changes would you like to make to the
  planning process?

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Example Attrition Model
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Barriers to Workforce Planning
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US Forest Service Workforce Plan

• Methodology
• Detailed information on the methodology used
• Sources of information include
• detailed information on workforce status and
  trends,
• interviews with a wide variety of field and
  national headquarters line and staff officials,
• a competency survey and assessment of staffing
  adequacy which was sent to a select group within
  the National Forest System, the research
  stations, and national headquarters functional
  organizations
• data was obtained from the National Research
  Council of the National Academy of Sciences, the
  Pinchot Institute, and public and private sector
  organizations that have been successful in
  workforce planning.

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Occupational Overview historical trend analysis
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Average Age Overview
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Age Distribution - Permanent Employees
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Retirement Eligibility (Permanent Employees)
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Capability gap matrix

• Use the capability gap matrix diagram to assess
  the priority for development and record in the
  priority column. For example, if you have
  indicated that a behaviour is essential for a
  role, and needs significant development then the
  priority would be 1highest priority for
  development. Similarly if you indicated that a
  behaviour is desirable for a role and needs
  development, then the priority for development
  would be 2medium priority for development. You
  may then want to discuss with your manager areas
  you have identified that need further development
  or experience.
• This will form the basis of your capability
  development plan and learning agreement.
• Source Leadership capability development
  planning (Australian Public Service Commission)
  www.apsc.gov.au/ils

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Conclusions -actioning

• Using tools for workforce adjustment to fit
  changing skill requirements. The Forest Service
  has gone through a period of major downsizing.
  This has been accomplished with minimal
  separation of employees through reduction- in-
  force procedures. The approach to minimize
  adverse impact on employees was generally a good
  one involving use of separation incentives, and
  placement of excess personnel in other jobs. The
  problem, according to some Forest Service
  managers, is that the placement of excess people
  has sometimes resulted in diminished capacity to
  perform at the optimum level due to the
  qualifications of the person being placed. The
  report recommends that the Forest Service use all
  tools available, including reduction- in- force,
  as a last resort, to achieve the right skill
  balance to meet strategic objectives.
• Capturing and leveraging expert knowledge. When
  the retirement bulge anticipated in the next five
  years occurs, many thousands of years of expert
  knowledge will be lost unless it is captured now.
  The report recommends that the Forest Service
  explore the establishment of a knowledge
  management program that will ensure that this
  knowledge is not lost forever to the
  organization. In addition, knowledge management
  can provide a mechanism for sharing new
  knowledge, widely and expeditiously, as it is
  acquired. Also, knowledge management systems can
  be used to guide training and retraining
  initiatives. Many leading corporations have
  recognized the need to aggressively pursue
  knowledge management as a competitive strategy.
  The Forest Services dependence on knowledge work
  makes it an ideal setting for such an initiative.
• Using non- permanent employees. The research and
  development organization, in particular has been
  successful in using term appointments to
  efficiently create a workforce that is flexible
  to meet changing demands. The U. S. Office of
  Personnel Management has raised issues about the
  use of these appointments in some instances. The
  Academy team recommends that the Forest Service
  continue to use, and possibly expand, its use of
  term appointees and other contingent employment
  tools such as temporary and on- call (when
  actually employed) employees. This will provide
  an effective way to adjust the workforce as
  strategic priorities change.

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Occupations and competencies - priorities for the
future, in terms of competencies and staffing
levels.

• Organizational Programs. Five regions were
  surveyed to identify those competencies that they
  believed were important for the future. Four of
  the regions reported a need for increased
  competency for the social science occupation to
  address issues related to increasing public usage
  of the forests. Two regions indicated a need to
  improve competencies for geographers, geologists,
  range conservationists, archeologists, and
  criminal investigators.
• Business Operations and Administration. Human
  resources has redefined its expectations for the
  staff and placed emphasis on moving from
  transactional work to an advisory/ consulting
  role while implementing new technology to do
  processing in a centralized manner. This will
  require training for new competencies related to
  this new role, and on the use of the new
  technological tools that are being contemplated.
  In particular, leading change, leading people,
  being results driven, business knowledge and
  building coalitions are seen as needed
  competencies for the future.

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The problem - leavers

• 2006 Baby Boomers enter 60s (retirement age)
• US Labour Stats result in a labour shortage of
  10 million qualified workers by 2010
• Forrester Research 45 of US public employees
  will reach retirement age within 5 years
• Forrester Research replacement 7 years o.j.t
  or 2 5 new employees to replace one skilled
  experienced retiree

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The problem - replacement

• US Dept of Education 60 of all new jobs in 21st
  Century will require skills possessed by only 20
  of existing employees
• National Association of Manufacturers 80 of
  manufacturers face a shortage of machinists,
  craft and technicians
• Bureau of Labor Stats 1,3 million of new IT jobs
  created between 1996 and 2006 unfilled

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Goal Alignment

• employees whose goals are aligned to business
  strategy
• 51 of senior managers
• 21 of middle managers
• 7 of line employees
• Kaplan Norton (USA), The Strategy Focused
  Organisation, Harvard Business Review, 2001

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Cost of misalignment

• 10 overspend on workforce related costs
  (compensation, benefits, inappropriate training,
  turnover, excessive headcount)
• Underperforming by 10 (unfilled positions, poor
  scheduling, poor work performance, slow response
  to initiatives / market / customer strategic
  imperatives)
• Dr Richard Beatty, Workforce Agility the new
  frontier for competitive advantage, PwC, 2005

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Top Five Talent Challenges
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Talent Challenges
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Maturity of Talent Management
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High-Impact Talent Management
Q? Align this model with the Strategic HR Model
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• "Workforce planning is the most critical human
  resource management challenge today.... To make
  workforce planning succeed, HR professionals will
  be called upon to master new roles as leaders,
  business partners, and change agents. "

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Planning the communication strategy

• Determine your communication requirements
• Identify your stakeholders
• Identify the correct communicators
• Communicate the message via the correct medium
• Drawing up the communication plan
• Measure and evaluate your communication

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Advantages of strategic internal communication

• Strategic internal communication planning can be
  a proactive approach to building a better, more
  directed and efficient workforce. 
• The most successful organisations are normally
  those that ensure that all their staff understand
  the mission, goals, values and procedures of
  their organisation.
• Effective internal communication is a shared
  management responsibility.
• Communication should be an open two way dialogue
  because
• Taking account of the views and concerns of
  employee unions, representatives and associations
  can also lead to more effective management.
• Engaging employees in a conversation for action
  allows institutions to tap into a vast pool of
  intelligence and expertise.

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The various stages of commitment
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Basic Principles of Communications
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Building the message

• When building your message ask
• yourself
• What?
• Why?
• Who?
• When?
• How?

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Stakeholders

• Annexure 1
• Who are stakeholders?
• Anyone who has an interest in the communication
  or who can impact the communications.
• Organisation Structure
• Here you should outline the structure of your
  division or organisation in order to make sure
  that you do not leave out any important
  stakeholders.
• Key Stakeholders
• Here you should outline who your stakeholders are
  according to who needs to be actively involved
  and who needs to be fully informed.
• Stakeholder Map
• The stakeholder map should allow you to plot
  where you think the various stakeholders are in
  terms of their degree of influence in the
  organisation, how important it is that they
  buy-in to the communication and their possible
  resistance to the messages.

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Drawing up the communications plan

• Communication Plan
• Communication Issue
• Key Messages
• Desired Outcomes
• Actions / Initiatives
• Stakeholders
• Communication Channel
• Timing
• Budget

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Can you measure your success?

• If you dont evaluate the success of
• your efforts, sooner or later, someone
• else will.
• List a couple of ways that we can
• measure whether your communication
• strategy was a success?

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Measurements of success

• General Employee Surveys
• Climate studies or staff moral surveys
• Readership / viewership surveys
• Focus groups or interviews with staff
• Suggestion Box
• Provide an email address to which staff can send
  suggestions, complaints etc.
• Place leaflets / questionnaires in the staff
  newsletter
• A manned telephone line that staff can call
• Competitions that prompt staff to give feedback
  by incentivising them by way of a prize.

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Staff Feedback

• There are a number of ways to receive feedback
• from staff
• Staff forums or focus groups
• A suggestion Box
• An email address
• A telephone line
• Competitions that prompt staff to give feedback
• The following rules should be observed
• Always meet deadlines.
• Wherever possible get your staff or colleagues
  involved to assist.
• Always reply if required to do so, dont just
  ignore the request for information.
• Respect confidentiality and anonymity

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Missing Statistics

• Age Analysis
• Retirement analysis
• Average tenure
• Organisation and per occupational group

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• Auditor General

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