Business Intelligence: Aligning People & Business Strategies. Bobbi Stedman, Director Human Resources April 21, 2015
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1 Business Intelligence: Aligning People & Business Strategies Bobbi Stedman, Director Human Resources April 21, 2015
2 Human Resources must become more integrated to the business and add value to our organization. It is vital that each of you work more as Strategic Business Partners. I need you to be at the table with our customers. --- Anonymous CEO
3 Integrating HR & Creating Value A POP Story Based on the Executive Director s vision of ONE Port, the Port reorganized from a divisional organizational model supporting three separate business lines to a functional business organizational model in 2012 What I learned simply by asking questions.. It was unclear if.. The composition and content of the workforce is strategically positioned to deal with its possible futures and business objectives The gaps that exist between the old and future organizational model require new or special skills
4 Project Partnership Workforce Analysis Benchmarking (LeighFisher) Human Capital Scan (Mercer) Executive Team Debrief (LeighFisher and Mercer)
5 Examples of Benchmarking and Survey Data Data: August 2013
6 Organization Structure Spans of Control: Portland senior managers spans are comparable to those of peers, and greater than most Average Span of Control Levels 1-3 Min Average Max Level Level Level Portland Boston Oakland Seattle San Diego Hawaii Houston Long Beach Tampa Level 1 Level 2 Level 3 Portland s Level 1 span of 7 is greater than all but Boston, Houston and Long Beach Portland s average Level 2 span of 6.4 is the highest in the survey Spans tend to become narrower at level 3 at Portland, Boston and Seattle PDX652 6 Organizational Benchmarking Review
7 Organization Staffing, Activity Airports FTEs 1,600 1,400 1,600 1,400 1,200 1, FTEs and Enplanements OAK HOU PDX SEA BOS HNL SAN Enplanements (millions) FTEs and Operations SEA SUMMARY PDX total staffing per million enplanements is towards the high end of the range, and only SEA is higher SAN is the most efficient by this measure PDX compares more favorably on FTEs per operation 1,200 1,000 BOS FTEs 800 HNL 600 SAN HOU 400 OAK 200 PDX Operations (100,000's) FTEs/Enplanement (millions) FTEs/Operation (100,000's) SAN HNL HOU OAK SEA BOS PDX PDX652 7 Organizational Benchmarking Review
8 Looking at skill sets, decision making is perceived as having the largest talent gaps Please indicate how important the following skills and capabilities are for your workforce to meet business objectives over the next 3-5 years. As you compare your current workforce with where you need to be in the future, where do you believe your organization has skill and capability gaps? Larger Gap Skill expected to be less important in the future and there is still a perceived talent gap Learning agility Innovation/creativity People management/supervisory skills Strategic planning Skills expected to be important in the future, where there are perceived talent gaps Sense of urgency/commitment to action Drives results Decision making Current Talent Gap Breadth of experience in your company Teamwork/cooperation with other groups Influences and communicates Business/commercial/financial acumen Cultural sensitivity/awareness Operational management skills Time/experience in your organization Smaller Gap Education Technical skills/depth of expertise MERCER Less Important Future Importance More Important 8
9 There is a perception of limited line of sight between goals and impact on company performance and accountability for goals is poor In general, are employees evaluated relative to the right performance measures? To a great extent To what extent does the organization hold individuals accountable for outcomes on those performance measures? To some extent Not at all To what extent do the following factors create challenges to the effective design and implementation of your pay-for-performance programs: MERCER 9
10 Outcomes Benchmarking Generally, Port is doing well compared to peer groups surveyed Increase spans of controls on level three an higher (over time) Use labor cost/operating revenue metric in budgeting process (as a measure of productivity) Organizational structure, while unique, remained Human Capital Scan Revised bonus program to create clearer line of sight between employee goals and impact on company performance Designed development programs to address skill gaps (buy v. build) Completed RACI work to align COO and CCO department decision making Informal mentoring for top leaders
11 The best way to predict the future is to create it. --- Peter Drucker
12 As an SBP, we.. Developed client relationships based on access, credibility, and trust.and fun Contributed to the formation of business strategies and plans Integrated the HR strategic plan and initiatives to the business plan Implemented people initiatives in support of the business plan
13 HR Blueprint Port Mission To enhance the region s economy and quality of life by providing efficient cargo and air passenger access to national and global markets, and by promoting commercial and industrial development in the region.. Human Resources Mission To foster a dynamic work environment that attracts, inspires and rewards excellence. Key Focus Areas of Human Resources Services Operations Keeping the Doors Open Staff Development How We Grow Organizational Culture How We Show Up Brand Who We Are Recruitment Labor relations Employee relations Health/Wellness Compensation Payroll HRIS/HRIC Organizational design & development Performance management Learning & development Succession planning Coaching Authentic dialog Port values Diversity Work environment Employer brand image Employee communication Analytics PORT VALUES: Making a difference, Vision, Leadership, Respect, Customer Service, Teamwork, Learning August 2014
14 Human Resources: Three Year One Page Strategy Strategic Direction KPIs Business Enablers CY Key Actions Mission To foster a dynamic work environment that attracts, inspires, and rewards excellence. Initiatives Operations: Excellence in performance in all keeping the doors open activities. Development: Grow our talent. Culture: Demonstrate an environment that honors Port values, authenticity and inclusivity. Brand: Establish the Port as the employer of choice. Strategies 1. An organizational culture that is ready for changing workforce demographic 2. An engaged organization that values differences 3. Right talent resources in the right place at the right time 4. An employer of choice in the Portland-Metro market This section specifies the key performance indicators so we can evaluate the progress towards our goals (intended outcomes). Outcome 1 1. Gen X, Y, Millennial separation rate 2. Desired retention rate for Gen X, Y, Millennial Outcome 2 &3 1. % of positions filled by internal succession planning (SP) candidates 2. SP candidates separation rate 3. Ratio of minority hires to market availability Outcome 3 1. One-year peer review business planning process in place 2. Productivity ratio (payroll/revenue) Outcome 2 & 4 1. Improved employee engagement scores This section specifies under each business enablers what is required to effectively accomplish business strategy. People 1. Internal comm s resources 2. C&P resources 3. HRIS/Analytics resource (repurpose) 4. HR Dept. Coordinator resource (repurpose) 5. L&D Coordinator Process 1. Role clarity between IT and HR for system optimization efforts 2. Acceptance of a variety of process changes impacting environment/culture Technology 1. Adoption rate of recognition program technology 2. JDE benefits redesign 3. New market pricing tool 4. HR Intranet-site redesign This section lists the breakthrough initiatives for the current year that lead us to effectively accomplish the strategy. Employment Branding Develop/launch employer branding strategy Redesign HR employee communication strategy Compensation & Benefits EE recognition program refresh Healthcare benefit design changes Revised PA ratings and merit structure Redesign PORTshare Outsourcing leave administration Development Authentic leadership program Succession planning refresh Employee engagement survey LMS full implementation Diversity Diversity strategy refresh Social Equity/responsibility Payroll Payroll outsourcing RFP Recruitment Enhance social media recruitment Outplacement services RFP Other Technology optimization SOP review and documentation Enhanced relationships between represented/non-rep workforce Aligning resources to business strategy Assess HR business partner model 8/15/2014
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