The Workforce Planning Journey At Raytheon
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1 The Planning Journey At Raytheon Bob Motion ARC 2010 Conference April 22, 2010 Copyright. Unpublished Work. Raytheon Company. Customer Success Is Our Mission is a registered trademark of Raytheon Company. Page 1
2 WHO WE ARE A technology and innovation leader specializing in defense, homeland security and other government markets throughout the world 2009 net sales: $25 billion 75,000 employees worldwide Headquarters: Waltham, Massachusetts A global leader in technology and innovation
3 Business Problem Do We Have the Talent to Deliver Our Strategy? How do we know we have the right talent to deliver against our international strategy? Do we have the right talent to win new awards in growth markets? What are our talent risks to maintain core business? How much is mission assurance of our workforce worth to the customer, and to our shareholders? Business Need Talent How do we make the best decision? WORKFORCE PLANNING Right Talent, At the Right Time, In the Right Place, At The Right Cost Page 3
4 Clarifying Scope and Gaining Alignment on Definition Strategic Planning Integrates with the strategic planning process; identifies the strategic roles and talent needed to meet the business s 5 year strategic plan. Integrates talent decisions with business strategy, financial forecasts, technology roadmaps, and trend analysis of internal and external talent that impact the business within 18 to 36 months. Operational Planning Aligns with the AOP; facilitates day-to-day operations by identifying headcount & staffing requirements to meet program needs based on forecast business activity and required number of employees. Plans identify talent shortages that will impact the business within 0-18 months. Achieve Alignment Through Positioning 4/27/2010 Page 4
5 The WFP Journey at RTN Embedded In Our DNA Enterprise launch Foundation Integrate activities with Corp HR Functions Rising Tide Systems focused on WF Mgmt owned by Businesses Beginning of shift of ownership from Engineering to HR Ad-hoc efforts to attempt One RTN approach and improve systems Exploration Burning platform for WFP & One RTN via International Assessed current state & needs going forward Internal & External Benchmarking Successful business initiatives (HCC) Defined vision for WFP at Raytheon Gained HR Leadership Alignment Invested in resources and built organization to support WFP Developed WFP methodology & tools Piloted in RMS & SAS Align with business activities Formalize structure Tools & resources Driver of competitive advantage for Raytheon & HR Prior to and Beyond WFP is a Continuing & Evolving Journey 4/27/2010 Page 5
6 Identifying a Vision for Planning at Raytheon Our strategic talent needs are quantified and aligned with our core business and growth strategies (into adjacencies & international markets) Strategic talent vulnerabilities are identified & actions created to mitigate Talent investment decisions are directed in an integrated manner We understand where the talent lies, internally and externally, and business solutions are created based on that knowledge Talent resources are proactively managed across the enterprise with efficiency Business Strategy Strategic Plan Human Resource Strategy Human Resources Process Mission Assurance of Our 4/27/2010 Page 6
7 Planning Methodology: Overview Model Future Understand Business Strategy Monitor & Adjust Build Strategic Plan Analyze & Validate Talent Gap Assess Current Capability WFP Foundation Executive Communication, Standard Processes and Metrics, Training for Human Resources Track progress of plan and adjust as business conditions shift. Develop HR Action Plans (buy vs. build) to ensure talent gaps are closed. Validate findings with Executives and SMEs to ensure alignment Model future workforce based on different scenarios (bookings, attrition, retirement, economic cycles). Partner with Executives to conduct Segmentation identifying Strategic, Key, Core or Transitional Roles Identify business objectives driving talent needs. Planning Is a Dynamic and Continuous Process Page 7
8 Criticality to Business Assess Current Capability: Segmentation Key roles are critical to delivering results within current AOP Strategic roles are critical to creating long-term advantage; Game Changers Core roles are foundational to running the business Transitional roles are not critical to business strategies and may be opportunities for cost savings Role is a defined set of tasks, dependencies & responsibilities that can be assigned to an individual it is a job, or What you do, i.e., systems engineer Competency is knowledge, skills, attitudes, and behaviors (KSABs) most critical to performance excellence in a specific role Skill is a trainable ability that an individual performs in order to accomplish work vemoworkforce.com Confidential Vemo, Inc. All rights reserved. Plan & Invest by Role According to Criticality Page 8
9 Using Segmentation To Make Talent Investment Decisions Headcount Planning Recruiting Attrition Strategic Roles Key Roles Core Roles Tranistional Roles Investment in long-term competitive differentiation and future state experimentation Hire for business cycle, not economic cycle Bad; very hard to find and/or develop this workforce What is necessary for our current business priorities Succession hiring, or Strategic Roles vs. Levels; what are the costs of Build vs. Buy Bad; creates immediate risks of jeopardizing key priorities Don t assume replacement manage attrition and re-hiring may use to hire Strategic or Key On-demand based on attrition Can be neutral if not excessive Determine if outsourcing is appropriate. If not, determine whether or not to eliminate role or keep in minimal support Avoidance unless can make business case; often outsource Often good if talent not re-deployable Development Consider if capabilities / competencies are in workforce how long will it take to build, and what is the cost? Is internal knowledge essential for success? Productivity vemoworkforce.com Measurement is based on Strategic Value to the Company ensure right talent, right job Confidential Vemo, Inc. All rights reserved. Build vs. buy. What is the cost? Can we afford to build and retain the talent? Don t dilute focus with too many key roles, focus on ineffective spans and layers Review development dollars aligned with these roles. Is training for these roles necessary? Are we over competitive benchmarks? Dollars not headcount e.g., don t under-staff and overpay Building would mean inappropriate investment Actively seek opportunities 9 Page 9
10 Planning: Decision Science Qualitative Strategic Dialogues Leadership Interviews Technology Trends Historical Knowledge Enterprise Plan Quantitative New, Current, & Ending Business Cost of the Attrition, Demographic, & Talent Trends Analytics Integrated Talent Action Planning Managing the Qualitative & Quantitative Impact of Talent Page 10
11 WFP Differentiator: Quantitative Scenario Analysis To Determine Talent Gap Segmentation Cost of Attrition and Retirement Calculate cost of roles as % of the CoW. Use as baseline for future % composition Identifying Strategic Roles, and who occupies them through data mapping Economic indicators correlate to workforce supply drops Monte Carlo Simulation Gap Analysis Scenario Planning New & Current Business Using Acq Phase, Market, CT type, plan potential $, etc. to determine future strategic workforce composition Simulate probabilistic model of bookings $. Adjust Strategic CoW baseline by changes in bookings composition Assumption changes in Bookings risk profile, economic indicators and retirement vulnerability affect supply and demand Demand minus supply = future need to develop, acquire, or hire talent Other Factors How much future work can be fulfilled with current workforce capability Analyze Data From Multiple Sources To Model 4/27/2010 Page 11
12 The Future: HR Integration Monitor & Adjust Build Strategic Plan Analyze & Validate Talent Gap Model Future GAP Talent Acquisition Retain Which Lever Do We Pull? Talent Management Strategic Planning Learning Compensation and Benefits Performance Development Assess Current Capability Understand Business Strategy Succession Planning Organizational Effectiveness Career Development Integrate WFP Into Established HR Processes 4/27/2010 Page 12
13 Roll-Out: Establishing a WFP Structure IIS IDS Talent Acquisition RMS NCS Business Plans WFP Process & Methodology Enterprise WFP Consistent Framework & Tools Org Effectiveness Bus WFP: WFP Lead Bus Analyst Executed By The HR Business Partner SAS RTSC CORP Virtual Innovation Lab Continue development Learning & Talent Development Organize To Integrate Talent Solutions Through WFP Page 13
14 Summary Planning Is a Journey Common understanding, mission, and buy-in are critical The heart of WFP is the process Data makes the difference Doing this right requires new capabilities in HR: especially in data acumen & business acumen Pilot Enterprise Launch Embedded In Our DNA Q3 - Q & Beyond Take the Journey It s a Great Ride Page 14
15 Questions?
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