Designing and launching a successful enterprise-wide workforce planning program

Transcription

1 Designing and launching a successful enterprise-wide workforce planning program November 2012 Presented by: Michael Manning - manager human capital analytics, strategic workforce planning & employee engagement Michael.L.Manning@SCE.com 1

2 Agenda About Southern California Edison Defining WFP process and objectives Borrowing Six Sigma and BPM tools Identifying and solving the top roadblocks for launching workforce planning Measuring and improving upon first year results Workforce planning outputs Q&A 2

3 About Southern California Edison Edison International (NYSE: EIX), through its subsidiaries, is a generator and distributor of electric power and an investor in infrastructure and energy assets. EIX is the parent company of Southern California Edison (SCE) a large regulated electric utility. EIX is 198 on Fortune 500 list with 12.4 billion in revenue. On an average day SCE provides power to: Nearly 14 million people 180 cities in 50,000 square miles of service area, encompassing 11 counties in central, coastal and Southern California Commercial industrial and nonprofit customers, including: 5,000 large businesses 280,000 small businesses To deliver that power, it takes: 425 transmission and distribution crews The days and nights of more than 15,500 employees More than a century of experience 3

4 Workforce Planning at Southern California Edison DEFINING WFP PROCESS AND OBJECTIVES 4

5 Workforce Planning Model OUs determine their workforce forecast based upon business strategy Retirement and attrition forecast sent to Vemo OU planner enters forecast in Vemo Workforce Gap Identified Demand and retirement/attrition forecasts combined Critical positions to business strategy Skills Inventory Succession plans Internal talent available External labor market analysis Plan for the Gap Are talent resources available to support the business strategy Backfill or do not backfill Buy Build Redeploy Outsource Bind or Bounce Finance Staffing Corp Resources IT Integrated Planning Projected labor costs Projected staffing needs Projected real estate needs Projected IT hardware, software and support needs Ensuring SCE has Proper funding to acquire (or reduce) Proper budget to pay Proper work space to house Proper technology to enable the workforce needed for our business strategy Develop HR Strategy Input to Comp & Ben strategy Input to Talent Acquisition strategy Input to L & OD strategy Input to Engagement strategy Right amount of people available At the right time At the right cost With the right skills To support SCEs business strategy Reporting and analytics related to workforce planning 5

6 SCE: Where we have been and where we are going Previously business units have been asked for their workforce forecast: Multiple times At different points through out the year In differing ways by different users Workforce is not standardized or clearly defined LTD, interns, contingent workers? Base forecast on what is going on at the moment Add their own retirement and attrition forecasts as they see fit Starting in the 2011: Business provided one workforce forecast Workforce was defined and standardized Retirement and attrition modeling was automatically applied to the forecast Other data were integrated with the workforce forecast creating the needed information Finance (labor budget) Past 2011 Real Estate (space planning) BU BU HR Staffing BU Workforce planning Other data Diversity and Inclusion (forecasted under represented positions) IT Provisioning (software and hardware planning) BU Finance Staffing (directional hiring plan) BU Real Estate Talent Planning (Buy, Build, Redeploy and Outsource talent strategies) 6

7 SCE: Providing process and technological capabilities that allow for broad planning around SCE s future workforce New capabilities Annual Labor Budget Real Estate Master Planning Diversity and Inclusion IT Provisioning Credibility of the future headcount forecast is enhanced when tied to budget Giving facility planning a view of our workforce and space needed years into the future Providing information to address the future diversity gaps of SCEs workforce Giving IT Provisioning a view of potential users prior to software, hardware and service contracts Enhanced capabilities Headcount forecast (single source for company) Staffing (tie into Taleo) Talent Planning (HR management) Single source, includes contract workers, strategy driven, built by business Anticipated positions: what type, how many, and when (key input for Staffing strategy) Decision support for Buy, Build, Redeploy and Outsource talent strategies 7

8 Objectives by Year - Sample This is illustrative and not the only way to achieve success. This sample focuses on first standing up a planning process with measurable ROI next instilling that process with analytical insight and finally imbuing the planning process with analytical insights Year 1: Planning Proforma forecast of turnover and retirement Enterprise demand planning and business approval process High ROI outputs: volume and high impact hiring plan, rate case workforce plan, input into corporate budgeting headcount and dollars, real estate plan Behaviors: know your numbers; ask what Year 2: Planning + Analytic Insights Year 3: Advanced Planning Continue and build upon Year 1 demand planning and outputs Understanding workforce supply: supply risk (good and bad), workforce movement analysis, spans of control, overtime analysis Understand workforce demand: work volume/resourcing level ratio analyses; critical job roles Behaviors: know your capability; ask what and why Proforma forecast of turnover, retirement and workforce movement Enterprise demand planning and supply modeling and gap analysis Strategic ROI outputs: hiring, development and redeployment plan taking into account market talent supply and role criticality; employee-contractor plan; real estate plan coupled with computing resource and onboarding/offboarding plan; input into corporate budgeting headcount, dollars and costing type Behaviors: plan what we do, do what we plan; ask what, why, and how 8

9 Workforce Planning at Southern California Edison BORROWING SIX SIGMA AND BPM TOOLS 9

10 Identified our needs prior to implementing a workforce planning solution Suppliers Inputs Process Outputs Customers Executives SCE business unit management via labor planners (data stored in SAP) Staffing (data in ATS?) Headcount demand forecast (including demand driver) Open requisitions Data linkage, gap identification and human capital availability Scenarios planning and modeling Metrics and report generation Company headcount forecast (filterable by time, business unit, business line, location, key position and/or job title) Corp Resources IT BU Finance IT (data in SAP data warehouse) SCE business unit in conjunction with HR Management (data currently stored in Excel files) Talent Management BLS reports NACE reports CEWD (Center for Energy Workforce Development) reports Other vendor specific sources EO data will be provided by Diversity SCE HR (data stored in policy) Labor relations (data stored in union contracts) SCE business unit in conjunction with HR Management (specifications will be directly entered into solution) SCE workforce data stored in SAP Key SCE positions (either to be defined in the workforce planning solution or provided to the solution as a data feed Testing results (count of qualified candidates for positions) External labor market data and trends, DOW, unemployment rate Specialty data provided by SCE (EO availability, Construction contractor availability and additional inputs to be identified in future SCE Configurations (time in job policy restrictions and additional configuration points to be identified in the future) Labor agreement restrictions AD HOC configurations specific to business unit (which positions are interchangeable, time needed to become proficient in a given position, future feeder pools, adjustments to no change future workforce, known upcoming retirements...) Workforce Planning Solution (links, organizes and prepares data for scenario planning and modeling) Positions with surpluses or shortages Internal availability Current population Forecasted retirement and Vol/Invol turnover Shallow or depleted feeder pools for positions Internal movement External availability Prior forecast and results SCE scenario planning and modeling (adjustments to forecasted headcount demand and AD HOC configurations) Workforce Planning Solution (generates metrics, reporting and data for decision support) Surpluses or shortages report (filterable by time, business unit, business line, location, key position and/or job title) Feeder pool strength report (Identifies strong, shallow and depleted feeder pools. Also identifies demand against feeder pools. filterable by time, business unit, business line, location, key position and/or job title) Forecasted internal employee movement report (filterable by time, business unit..) Forecasted retirement and Vol/Invol turnover exposure report (filterable by time, business unit.. Forecasted location demand report (filterable by time, business unit.. Forecasted EO report (diversity of feeder pools and future under represented positions) Operational scenarios for business units AD HOC data extracts to Excel Data points for HR dashboard (used to track gap progress) Executives Staffing Executives / Mgrs Staffing Learning and Development Talent Management Benefits Staffing Business unit Mgmt Real Estate Diversity Staffing Business unit Mgrs/ planners Business units HR Managers HR Analytics 10

11 How we operationalized the workforce planning vision across SCE 8/ /2010 5/2011 Determine the business need Understand the capabilities the business wanted from a workforce planning process and tool (collected requirements from over 50 SCE representatives) Define potential: Suppliers of SCE data Inputs needed Process Outputs needed Customer wants Research companies providing workforce planning solutions RFP Security review IT review Selection and PMO approval Legal review of contracts Purchase Blue print the system configuration to the business needs (collected input from over 100 SCE representatives in Q1 2011) Build a common vocabulary and set of definitions (data dictionary) Identify data feeds from SAP Determine what data does not exist in SAP that we need and figure out how to get it Build a data transfer capability Integrate new capabilities into other processes Sandbox Defining user roles Training User acceptance testing Expert users group Eventually across Vemo utility client group Approval streams Access to Vemo software Planning module launch Reporting module launch 11

12 Workforce Planning at Southern California Edison IDENTIFYING AND SOLVING THE TOP ROADBLOCKS FOR LAUNCHING WFP 12

13 Top roadblocks to getting workforce planning operationalized Roadblock Example Question Solution Data How do we do workforce planning if our HRMS data integrity makes simple reporting so challenging? Enterprise Software, coupled with expert Business Requirements enhance data strengths and mitigate weaknesses HR Readiness I m used to the business telling me what it needs now I m supposed to tell the business what it needs? Business Readiness I get why we need to do workforce planning as a company, but what s in it for me? Making the program part of integrated talent management effort provides HR Business Partners the framework Alternately, if there is business readiness and not HR readiness, have Operations or Finance do the demand plan and HR work on resultant talent gaps If the program provides the Business the results managers need to do their jobs, they will participate as needed Business Participation We already do this and don t need new tools we ll send you our plan Workforce planning is an enterprise program designed to remove wasteful process variation need consistency to pull the WFP process lever 13

14 SCE s Top Roadblocks - Discussion Data HR Readiness Business Readiness Business Participation 14

15 Workforce Planning at Southern California Edison MEASURING AND IMPROVING UPON FIRST YEAR RESULTS 15

16 Key Measurements Measure Purpose Result Improvement Steps % of Assigned Plans Complete % Planner who submitted plan on time % Accuracy of Proforma Supply Forecast % Forecasts Usable by Talent Acquisition and Management at time of plan submission % Forecasts Usable by Talent Acquisition and Management 6 month after plan submission Measure Participation High N/A Measure Participation Medium More effective training; plan at more consistent levels; use Talent Acquisition data for reconciliation instead of SAP vacancies Measure Usefulness of Attrition and Retirement Forecast to determine Backfills Measure Accuracy in Terms of Usefulness of Plan to Downstream Users Measure Accuracy in Terms of Usefulness of Plan to Downstream Users High Medium Low N/A Planners need to delve more into specific job roles: all headcount is not the same N/A: Rate Challenge has materially changed staffing strategies; Going forward, integrate Staffing Cap into workforce forecast Directional Accuracy of Plan to Real Estate Measure Accuracy in Terms of Usefulness of Plan to Downstream Users High N/A 16

17 Workforce Planning at Southern California Edison WORKFORCE PLANNING OUTPUTS 17

18 Workforce planning drives labor budget properly incorporating future workforce needs Workforce forecast MRP for forecasted new hires Actual salaries for existing SCE employees Cost of forecasted SCE workforce Forecasted retirements/attrition How many employees planned in/out What job titles When Where Market Reference Price (MRP) by job title Part of monthly SAP import Part of monthly SAP import 18

19 Workforce planning drives better understanding of real estate and related assets requirements Workforce forecast Space needed by job title Real estate needed to support workforce Forecasted retirements/attrition How many planned in/out What job titles When Where SQFT Loaded SQFT Type (cube/office) Parking Company Vehicle 19

20 Workforce planning drives improved hiring plans and improved use of talent acquisition professionals Workforce forecast High Impact Jobs Diversity Information Improved Hiring Plans Forecasted retirements/attrition How many employees planned in/out What job titles When Where Segmentation to identify high-impact hard-to-fill and high-impact easy-tofill positions Helps allocate TA resources Gender Ethnicity Under-Represented Positions by Location 20

21 Workforce Plan Output: The Business Each planning unit is able to view their workforce plan as a waterfall of changes at the job role level to get to final plan headcount. Plan period started on 2011/7/1 and extended to 2016/12/31 (5+ Years) Net adds above existing headcount levels with reasons for adds captured View Headcount, MRP, Salary or Loaded Square Footage of Plan and filter by Employee/Contractor Forecasted attrition including resignations, retirements and mobility Sample Planning Unit Open requisitions in recruiting system that need to be factored into workforce activity/changes.. Attrition that will be backfilled in this case all attrition is managed, and the open positions are used for more critical net adds (Good Job!) Redeployments or transfers where talent not aligned with strategy 21

22 Workforce Planning Output: Corporate Finance WFP process provides output to Corporate Finance Summary-level budgets by resource type Detailed headcount, MRP and Projected Salary by Operating Unit, Department, Division and Job Budgeting can build non-labor budget on top of WFP 22

23 Workforce Planning Output: Real Estate Loaded Square Footage Output of Approved Plans: by Year by Operating Unit In this illustrative sample: Operating Unit 3 & 4 are fairly flat; Operating Unit 1 has declining need; Operating Unit 2 has increased need Knowing this information can save $millions rather than forcing the hand with too little / too much space, can plan best buy/lease/repurpose strategy in advance 23

24 Workforce Planning Output: Talent Acquisition (1) Enterprise Hiring Plan by Job and Segment By Operating Unit with drill down detail Actuals vs. Plan Start and Variance are we already on plan or off plan Planned Adds, Reductions, Backfills and Ending Headcount shows hiring need and redeployment opportunity (2) Query Tool to mine WFP scenarios: Example Critical Hiring Chart for IT Hiring = Net Adds + Backfills Filters: Hard-To-Fill Jobs (Source: Recruiting System); High Impact Jobs (Source: Segmentation) Time: 5-Year Plan (2012 through 2016) 1 2 Masked Data 24

25 Workforce Planning at Southern California Edison Q&A 25