ORGANIZATIONAL EFFECTIVENESS

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1 EB Exhibit F Tab Schedule Filed: 00 Aug Page of ORGANIZATIONAL EFFECTIVENESS INTRODUCTION Organizational Effectiveness ( OE ) provides a range of services in the areas of organization development; project management and human resources services and planning in support of the Toronto Hydro vision, goals, employees and leaders. 0 0 The existing operations include: Training and Development Support Leadership Development and Succession Planning Workforce Planning Performance Management System Engagement and Change Management Support Employee/Labour Relations Project Management Support Office/Process Improvement Recruitment and Selection Benefits Program Design and Management Compensation Plans Design and Salary Administration Human Resources ( HR ) Information Systems Co-ordination of Corporate Scorecard Development and Reporting Support of Business Planning / Employee Engagement & Communication Process A skilled and knowledgeable workforce is a critical asset for THESL to allow it to undertake its asset renewal program, while continuing to meet customers expectations for reliable and responsive service. Due to a significant percentage of retirements in its workforce anticipated in the next three to five years, there is an exceptional and pressing need to develop the organization for the future. Such a significant change in the organization will require excellent leadership to maintain and improve on performance

2 EB Exhibit F Tab Schedule Filed: 00 Aug Page of 0 during this extended period of flux. Between 00-0, over 0 employees will reach THESL s average retirement age of with eligibility for an unreduced pension or OMERS Normal Retirement Age. This number represents approximately percent of THESL s workforce with over 0 percent of potential retirements occurring in the Supervisory, Trades and Technical positions who deliver THESL s distribution services. For the Trades positions, a -/ year Apprenticeship is required to achieve full competence. The impact of this attrition begins in 00. Given the level of turnover expected in the coming years, recruitment, on-boarding and training of these critical resources will require highly efficient processes in both OE and the business units to attract, engage and develop these new employees. OE will be key to the effective integration of the anticipated turnover of staff over the next ten years. In addition to the integration of new employees and leadership support, the utility s performance will benefit from good governance, good management systems and sound project management of the many initiatives underway in modernizing the utility. OE supports the executive and management team in building these strengths and facilitates the execution of these management processes that will enable the utility to perform as required. On-boarding refers to a long-term process of bringing new employees into the company; making sure they know what is expected of them and how to add value. Source: Corporate Executive Board

3 EB Exhibit F Tab Schedule Filed: 00 Aug Page of Table : OE Division Costs ($ Millions) Line of Business Historical Bridge Test Test Test HR Planning, Benefits and Compensation HR Services (Recruitment/Selection and..... Labour Relations) Organizational Development & Performance (includes Trades Training Supervisors,..... Coordinator) Project Support Office OE Total HR PLANNING, BENEFITS AND COMPENSATION Summary HR Planning, Benefits and Compensation is primarily responsible for: providing support for organizational and staff planning; the design and administration of active and retiree benefits programs; design and administration of compensation systems; salary administration; job evaluation; and the management of the Human Resources Information System and reporting requirements. Services include: providing demographic data, analysis, consolidation and management of the operation s short term and long term workforce planning; designing and implementing compensation and benefits programs to attract and retain talent; supporting the design and implementation of HR strategic initiatives aligned with the goals and direction of the operation; designing, assessing and auditing internal HR policies, programs and processes to ensure transparency, effectiveness, adherence to principles and consistency of application; contributing workforce, compensation and benefits data for financial/regulatory reporting.

4 EB Exhibit F Tab Schedule Filed: 00 Aug Page of The demographic profile of THESL s Trades and Technical employee base indicates that well over 0 employees could choose to retire within the next six-to-eight years. To support the capital plan and provide sufficient lead-time for skills development, THESL s 00 workforce plan calls for hiring more than 0 new employees into Trades and Technical jobs, such as the Line Trade and Designers. From 00 to 0, approximately 00 new employees will be hired into these jobs groups. Over 0 percent of the new hires will be deployed to Trades work. With the focus of future hiring on Trades and Technical jobs, management of the workforce plan will be vital to ensuring the required resources are in place as the need occurs. 0 Costs Table : HR Planning, Benefits and Compensation Costs ($ Millions) 00 Historical 00 Bridge 00 Test 00 Test 00 Test Activities Undertaken as part of the Line of Business Demographic Analysis THESL ten-year and annual staffing plan Organizational Design Job Analysis and Job Evaluation Compensation Systems Management Active Employee and Retiree Benefits Plans Management Human Resource Information System Management Employee Attendance Analysis Human Resources Policies, Procedures and Controls Reporting of Human Resources Data for Financial and Regulatory purposes

5 EB Exhibit F Tab Schedule Filed: 00 Aug Page of Table : Variance Explanation From To Comments Bridge Expect increased costs due to coverage for leave of absence, Historical job reviews, EDR. 00 Bridge 00 Test Assuming. percent increase in costs from previous year due to general inflation; assuming benefit contract renewals and initiatives remain same; obtain policy line data and external market data for specific jobs; two additional FTEs. 00 Test 00 Test Assuming. percent increase in costs from previous year due to general inflation; completion of compensation study. 00 Test 00 Test Assuming. percent increase in costs from previous year due to general. HR SERVICES Summary HR Services supports employees and leaders in the following primary areas: labour and employee relations; recruitment, selection and on-boarding; job analysis and design; employee performance and attendance management; legislative compliance; and supporting corporate initiatives. 0 With an aging plant and workforce over the next ten years, HR Services will support organization leaders to significantly increase talent acquisition at an accelerated rate. From 00 to 00 HR services supported the organization in the recruitment and selection and on-boarding of apprentices. From 00 to 0 HR Services will support leaders in the recruitment and selection and on-boarding of approximately 00 new hires into trades and technical positions. In 00, HR Services will focus on talent attraction initiatives, selection and on-boarding to acquire talented employees for the future of Toronto Hydro. Some of the attraction initiatives will include job fairs, partnerships with schools and various other

6 EB Exhibit F Tab Schedule Filed: 00 Aug Page of organizations, career websites, newspapers, community newspapers and various publications to increase the reach of our recruitment activities. Also key to the talent hiring process will be good governance in THESL selection process. Costs Table : HR Services Costs ($ Millions) 00 Historical 00 Bridge 00 Test 00 Test 00 Test Activities Undertaken as part of the Line of Business Job Design Talent Attraction Initiatives Recruitment and Selection of Full-time, Part-time, Summer and Co-op Students On-boarding Staff Redeployment Employee Performance and Attendance Management Employee/Labour Relations Management and associated processes Labour Board, Human Rights and Civil complaints, investigations and actions Legislative Compliance and Policy Development

7 EB Exhibit F Tab Schedule Filed: 00 Aug Page of Table : Variance Explanation From To Comments Bridge Talent attraction initiatives: branding, job fairs, schools, career Historical websites, newspapers, partnerships, publications. 00 Bridge 00 Test Assuming. percent increase in costs from previous year due to general inflation. One additional FTE HR Services. Additional advertising costs for 0 new hires into trades and technical positions. 00 Test 00 Test Assuming. percent increase in costs from previous year due to general inflation. Additional advertising costs for new hires into trades and technical positions. 00 Test 00 Test Assuming. percent increase in costs from previous year due to general inflation. Additional advertising costs for new hires into trades and technical positions. 0 ORGANIZATIONAL DEVELOPMENT & PERFORMANCE Summary Organizational Development and Performance ( ODP ) provides support in the following areas: Performance Management Systems, including incentive pay plans, Training and Development Systems, Trades and Technical Training, Leadership Development/Succession Planning, Change Management and Engagement, Consultation and Facilitation, Problem Solving and Strategic Project Support. With an aging plant and workforce, over the next ten years, ODP will work closely with senior and front line leaders to ensure appropriate investment in the training and development of THESL s employees. ODP will also focus on maximizing opportunities to retain corporate memory as well as setting and maintaining expectations that emphasize THESL s goals and direction. In 00, THESL established an in-house Trades School given that basic training for new apprentices was insufficient to maintain safe and efficient operations and satisfactory

8 EB Exhibit F Tab Schedule Filed: 00 Aug Page of customer service in such a diverse distribution territory, supported by changing technology. 0 Within three years, THESL hired trades apprentices and by 0, the number of trades and technical apprentices is expected to approach 00. In 00, ODP assumed responsibility for the development and training of the apprentices. At the same time, Business Transformation assumed responsibility for the apprentice budget and rotation schedule. ODP and Business Transformation are working closely together to ensure the apprentices become fully competent and capable of performing all components of their job to support the safe and efficient operation of THESL s diverse distribution system. In addition to the Trades School, ODP provides support to the business for assessing and developing technical skills to improve employee productivity, customer understanding and consistency in safety standards. 0 ODP also supports large-scale engagement and communication forums about the organization s goals and direction, and executes organizational engagement surveys. These events are critical to keeping employees informed about customer expectation and business goals. ODP also provides support on Strategic Projects such as implementing an outage management system and changing nomenclature across the city to build standards. Table : Organizational Development & Performance Costs ($ Millions) 00 Historical 00 Bridge 00 Test 00 Test 00 Test..... Activities Undertaken as part of the Line of Business Training and Development including trades school and technical training Performance management and evaluations, including incentive rewards strategies Leadership development and Succession Planning

9 EB Exhibit F Tab Schedule Filed: 00 Aug Page of 0 Team Dynamics and Team building Change management, engagement and communication Workflow improvement support Coordination of annual Business Planning and employee engagement process and events Table : Variance Explanation From To Comments Bridge Change of organizational structure, Trades Supervisors and Historical Coordinator payroll, standby, and communication costs, trades and technical training included in Organizational Development for 00, increase in development for front line leaders and professionals. 00 Bridge 00 Test Assuming. percent increase in costs from previous year due to general inflation. $K increase from 00 for training and development as well as change management support. 00 Test 00 Test Assuming. percent increase in costs from previous year due to general inflation. 00 Test 00 Test Assuming. percent increase in costs from previous year due to general inflation, Reduction in cost due to completion of training programs in previous years. PROJECT SUPPORT OFFICE Summary The Project Support Office ( PSO ) supports Senior Executives in the Business Planning Process. Through this facilitation, the PSO helps to align the Strategic and Business Plans that are undertaken to achieve the goals of the company. The PSO supports the development of Key Performance Indicators ( KPIs ) and scorecard reporting within THESL s Management Control and Reporting System. These are THESL s management tools that provide the operating performance information and

10 EB Exhibit F Tab Schedule Filed: 00 Aug Page 0 of forum for effective management of business processes, enabling appropriate target setting, performance tracking, effective decision-making and direction of the company s resources. 0 The PSO provides support on Project Management and Project Risk Management on Key Projects undertaken by THESL, such as Geo Electric mapping Records ( GEAR ), Distribution Management System ( DMS ) and Customer Information System ( CIS ); these projects deliver improvements to business processes and systems, enabling THESL to modernize and leverage technology for operational advantage. The PSO provides the means for Senior Management to execute appropriate governance over these key strategic and regulatory-mandated projects. The PSO provides standard project management training and is the custodian of project tools. Costs Table : Project Support Office ($ Millions) 00 Historical 00 Bridge 00 Test 00 Test 00 Test Activities Undertaken as part of the Line of Business Maintenance on Project Management standards and education of project leaders Support to the effective use of Project Management tools to ensure project success and good governance Facilitation of executive oversight and management of corporate Key Projects portfolio Facilitation of business process documentation and improvement Education and support of effective utilization of Management Control & Reporting System

11 EB Exhibit F Tab Schedule Filed: 00 Aug Page of Education and assistance in development of KPIs scorecards and targets for alignment throughout organization Support of executive team through their Strategic & Business Planning cycle Table : Variance Explanation From To Comments Bridge Increase based on project management and business Historical transformation initiatives. 00 Bridge 00 Test Assuming. percent increase in costs from previous year due to general inflation. 00 Test 00 Test Assuming. percent increase in costs from previous year due to general inflation. 00 Test 00 Test Assuming. percent increase in costs from previous year due to general inflation.