HOW TO LAUNCH A SUCCESSFUL WORKFORCE PLANNING CENTER OF EXPERTISE (COE)

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1 HOW TO LAUNCH A SUCCESSFUL WORKFORCE PLANNING CENTER OF EXPERTISE (COE) April 17, 2012 Karen Piercy, Mercer Matthew Stevenson, Mercer 0

2 Today s presenters Karen Piercy Philadelphia karen.piercy@mercer.com Matthew Stevenson Washington, DC matthew.stevenson@mercer.com 1

3 Agenda Introductions Workforce planning market dynamics A workforce planning model Positioning of SWP within the HR organization Next Generation HR Service Delivery Model Workforce Analytics and Planning COE: Operating Model Framework Closing thoughts Q&A 2 2

4 Market dynamics 3

5 What s going on in the market? Down economy forcing a renewed focus on talent management and mobility Growth in emerging markets Focus on key talent segments Workforce analytics/planning Emerging as a critical core competency in organizations New service providers and new technologies Influencing analytics/planning approaches Data data data More data exists than ever before Where should we start? 4

6 CEOs say having the right talent is key to success Rank Importance-adjusted top three strategies Score 1 Business growth Talent Cost optimization Consensus among CEOs is clear: having the right talent will make a critical difference in executing against any of today s business challenges 4 Innovation.70 Rebecca Ray, Ph.D., The Conference Board 5 Government regulation.59 Source: Conference Board 2011 survey 704 CEOs across the globe 5

7 Level-setting: Mercer s workforce planning model 6

8 There are different levels of maturity in workforce planning Manage workforce like assets Create analytics and Planning Center of Expertise (COE) Level 4 Human capital planning Identify critical workforce segments, gaps and what-ifs scenarios Close gaps through workforce strategies STRATEGIC WORKFORCE PLANNING OPERATIONAL WORKFORCE PLANNING People strategy and business strategy aligned Technology used to leverage data Level 2 Level 3 Strategic workforce planning Workforce analytics Lack consistent methodology Lack technology Level 1 Budget driven headcount planning OVERVIEW 7

9 Polling Question: What level of workforce planning & analytics does your organization deliver? 1 Level 1, Budget driven headcount planning 2 Level 2, Workforce analytics 3 Level 3, Strategic workforce planning 4 Level 4, Human capital planning 5 We don t deliver any type of workforce planning & analytics 8

10 Positioning of SWP within the HR organization 9

11 Ownership Who owns or should own the workforce planning process? 70 54% 60% 46% 27% 18% 7% 0 No Formal Ownership or Visibility Operational HR Manager Staffing and Recruiting Business HR Leader Corporate HR Business Unit Leader Bersin & Associates, 2009 OVERVIEW 10

12 Shared ownership of the process is good practice Strategic guidance Process facilitation Give strategic guidance and context Business scenarios and related workforce solutions Manage implementation & communication Line mgmt HR BP Facilitate workforce planning process with business managers Ensure results, validation and implementation COE Process & quality guidelines Define workforce planning process, provide guidance and templates An objective, single-source of data in workforce planning Ensure communication and training of all stakeholders (HR and line) Mercer

13 Where does workforce planning sit in the organization? High up; Reporting to VP of HR, sometimes VP of operations. Staff often shared with metrics and analytics function Seen in engineering companies, those with long production and planning cycles Off to the side: Centers of excellence model Dedicated staff that a has a dotted line to senior management, but mainly serves line management Telecoms, utilities, finance and services providers Hidden in a corner Under the leadership of an individual with little or no senior sponsorship Seen in retail, and organizations employing marginal amounts of human capital; and adjunct of Human Resources 12

14 Polling Question: Where does Workforce Planning report in your organization? 1 Finance 2 Human Resources 3 Business Line 4 Other 5 We have no Workforce Planning function 13

15 Next Generation HR Service Delivery Model

16 Next Generation HR Service Delivery Model Companies that implement this model share characteristics Strategic Guided by metrics and analytics Flawless in executing the fundamentals Effective in supporting line managers Cost-effective 15

17 Next Generation HR Service Delivery Model Shared Services Delivers or outsources cost-effective day-to-day transactional HR services Primary customers: business line manager and employees 16

18 Next Generation HR Service Delivery Model HR Business Partners Very highly skilled professionals who consult one-on-one with business leaders to provide human capital strategy advice Primary customer: business leader 17

19 Next Generation HR Service Delivery Model HR Leadership Must interact with CEO, senior management, and wider organization as a change agent Primary roles: governance, leadership, and controls for the other three components 18

20 Next Generation HR Service Delivery Model COEs Setting strategy and developing global policies for their functional area Designing common solutions to be applied across the organization Designing specific business unit solutions Primary customer = HR Business Partner 19

21 Next Generation HR Service Delivery Model COEs of the future? Risk Management, Responsibility & Compliance Enhancing Diversity (to become Inclusion and Engagement) HR Effectiveness, focusing on improving HR capabilities, processes, and technology HR Controller, focusing on budgets, HR costs, and vendor management 20

22 Workforce Analytics and Planning COE: Operating model framework

23 A Workforce Analytics and Planning COE Plays a primarily strategic role within the HR function Total Rewards Talent Recruiting Workforce Analytics & Planning Employee Relations Strategic workforce planning modeling and forecasting for critical workforce segments Standard and ad hoc reporting on strategic workforce planning outcomes Routine reporting of key workforce metrics and analytics via scorecards and dashboards Ad hoc workforce analytics to address the root cause of workforce issues 22

24 Polling Question: Within HR, where does your Workforce Planning and Analytics report? 1 Workforce Planning & Analytics COE 2 Talent Development COE 3 Talent Acquisition COE 4 To HR but not a COE 5 Workforce Planning & Analytics does not report to HR 23

25 Maturity of Workforce Analytics and Planning COE Impact: Business Performance Level 2 Level 1 Level 3 Level 4 Human capital planning Strategic workforce planning Workforce analytics/dashboards Budget-driven Budget driven headcount headcount planning planning Fully staffed COE Continuously refine workforce planning processes Real-time sharing of analytics and planning output Robust technology implemented for both COE and business leaders Implement technology Provide interactive dashboards and planning tools where data is continually refreshed Expand COE infrastructure Hire for advanced skills/capabilities Refine processes and templates Advanced Workforce A&P Role (COE) Foundational Workforce A&P Role Build COE infrastructure Hire few, key resources Create processes, tools, and templates Identify specialized technology + build business case Push static dashboards with key analytics Centralize human capital data reporting Include data in monthly HR reporting Leverage HRIS and spreadsheet templates Operational Strategic Mercer / The Conference Board, 2006;

26 Workforce Analytics and Planning COE: Operating model framework Process Process Technology Analytics: enables the A&P COE to deliver critical human capital measures to the organization, supporting evidence-based decisions. Planning: Workforce planning is the central process for a mature COE. Talent 25

27 Technology enablement: A critical piece of the A&P COE infrastructure Challenges: Organizations will need to integrate data from multiple sources and platforms The type of software tools required aren t standardized across software providers. Solution: High-impact HR organizations are employing a variety of strategies to meet their needs they invest heavily Did You Know? Over 37% of high-impact HR organizations rated their workforce analytics tools as world-class or good. Only 12% of non-high-impact organizations rated their workforce analytics tools as world-class or good. Source: Bersin Research Bulletin: The Value of Advanced Workforce Planning Capabilities, Bersin & Associates (2011). 26

28 Use the technology that fits where you are now Illustrative examples: Advanced Statistical Package(s) Workforce Forecasting/Simulation Software Business Intelligence Software/Dashboard Excel Level 1 Level 2 Level 3 Level 4 Human capital planning Strategic workforce planning STRATEGIC WORKFORCE PLANNING FOUNDATIONAL WORKFORCE PLANNING Workforce analytics/dashboards Budget driven headcount planning Budget-driven headcount planning 27

29 Workforce Analytics and Planning COE: Operating model framework Organization Process Technology Foundational: Few key resources Advanced: Talent 28

30 Workforce Analytics and Planning COE: Operating model framework Talent: A Mature Workforce Analytics and Planning COE Team COE LEADER WORKFORCE ANALYTICS & PLANNING SPECIALIST(S) DATA INTEGRATION SPECIALIST TECHNICAL RESOURCE Sets the strategy for the COE Is responsible for coordination, project management and communication Communicates with and achieves sponsorship of stakeholders Partners with HRBPs and business leaders to determine requirements for the COE Partners with the other COE leaders to ensure integrated services are delivered to the business across all COEs Partners with Shared Services leader to ensure data integration and system support Finalizes unit-level plans and integrates them with budgeting, capital expenditure, and other planning cycles Tracks and reports on success measures 29

31 Workforce Analytics and Planning COE: Operating model framework Talent: A Mature Workforce Analytics and Planning COE Team COE LEADER WORKFORCE ANALYTICS & PLANNING SPECIALIST(S) DATA INTEGRATION SPECIALIST Collect and analyze HR data, Develop dashboard templates, Provide regular reporting and offer actionable analysis, Collaborate with HRBPs on requirements of the business units they support. TECHNICAL RESOURCE 30

32 Workforce Analytics and Planning COE: Operating model framework Talent: A Mature Workforce Analytics and Planning COE Team COE LEADER WORKFORCE ANALYTICS & PLANNING SPECIALIST(S) DATA INTEGRATION SPECIALIST Develops and maintains data acquisition strategy, process and methodology Develops data models Provides ongoing resolution of data issues Supports ongoing process improvement in the management and integrity of data, may assist in the build out of the dashboards Ensures data integrity TECHNICAL RESOURCE 31

33 Workforce Analytics and Planning COE: Operating model framework Talent: A Mature Workforce Analytics and Planning COE Team COE LEADER WORKFORCE ANALYTICS & PLANNING SPECIALIST(S) DATA INTEGRATION SPECIALIST TECHNICAL RESOURCE Assists with data extraction from various systems, Supports infrastructure for technology deployed in the COE, Provides database administration or other technical support as needed to the functional team 32

34 Workforce Analytics and Planning COE: Operating model framework Organization Process Technology Talent Leadership Competencies Work-Enabling Competencies Partnering Competencies Functional Technical Competencies 33

35 Workforce Analytics and Planning COE: Operating model framework Talent Leadership Competencies Business acumen Coaches and develops others Creates strategy Drives performance Partnering Competencies Collaborates with others Consulting Customer focus Work-Enabling Competencies Adaptability Communication Cultural sensitivity Mental agility Functional Technical Competencies HR measurement and evaluation HR/business intelligence HR technology comprehension HR technology utilization and data integration 34

36 Closing thoughts

37 Top recommendations for a Workforce Analytics and Planning COE Process Leverage centralized data (e.g., from a dashboard) to show interrelationships across the business Pilot and institute a workforce planning process & approach Quantify previously soft ROI calculations Talent Provide field training in metrics so staff understands what data is available, how to use it, and when to ask for help analyzing it Technology Implement systems that can scale and have the expanded capabilities required to support the COE vision Organization Create an evidence-based culture that endorses analytics at the highest levels and gives employees the support they need to test hypotheses to address real workforce and organizational priorities 36

38 Questions? Karen Piercy Philadelphia Matthew Stevenson Washington, DC

39 38

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