Transcript Document
Taking it to the C-Suite
World Class, Leading Edge, Strategic Workforce Planning
Special Thanks to Workforce Management
©Copyright OrcaEyes Inc. 2007-2011
3) 4) 5) 1) 2)
Feedback , questions and concerns from workshop participants Dr. Jac Fitzenz on Integrated Reporting and Predictors The Science of Data Analysis Key Workforce Drivers in Delivering Business Value Transform Business Risk into Unprecedented HR Opportunities
Please send in questions, comments, problems or successes throughput this session!!! We will not mention names. Please include your industry if possible on your notes © Copyright OrcaEyes Inc. 2007 -2011
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Finance
“This is exactly the type of strategic HR information our CEO has wanted badly for a few years now. He was thrilled.
◦ We are now happy to be an OrcaEyes client.” © Copyright OrcaEyes Inc. 2007 -2011
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Insurance
“I am still scared about my second meeting with our controller. I sure hope Part 4 helps me here.” © Copyright OrcaEyes Inc. 2007 -2011
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Manufacturing
“Frankly we thought you were a typical vendor over hyping products and not understanding our real daily issues in HR. Our CEO literally pounded on his desk and said, ‘this is what I need to show the Board how we carefully manage our Human Capital investments. I want more!” © Copyright OrcaEyes Inc. 2007 -2011
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Healthcare
“That’s the easiest and fastest $4,000 I ever had approved by our CFO. She seems to get it better than me. I hope the last web program provides a few more templates to help me. I really need to learn this material better now that we will providing her with monthly SVOD reports.” © Copyright OrcaEyes Inc. 2007 -2011
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Childcare
“I respect the professionalism of your firm and the free training you are providing. However, I have a strong and fundamental disagreement with what your company is doing. People are not assets. People are not numbers on a spreadsheet. This dehumanizes the value of workers. This seems to be opposed to everything reason why I launched a career in human resources.” © Copyright OrcaEyes Inc. 2007 -2011
◦ Data Overload Too much data Non-correlated data ◦ Start with understanding your primary business objectives Read and make notes of 10k and listen to quarterly analyst calls (if public) Read Mission Statements and financial/operational disclosures ◦ Sound transparent formulas are essential Ask “Friendly” finance contacts to review formulas And for advice on additions she/he can think of It’s not true that Finance people are not friendly ◦ The criticality of color-coded dashboards ERP, Networks, Supply Chains, Plants and Fabs, Load Balancing, Financial Forecasting, KPI presentations to Board of Directors and on
New SEC Regs = Feb 28, 2010 First mandated reporting period = Q4 2011
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The Board of Directors are now required to: Actively discover “Material Risks” to the business
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Decide if these are actual risks or opportunities Disclose all risks to SEC and in 10ks and 10Qs Actively place monitoring tools in place HR’s role in these new regs IBM’s view
© Copyright OrcaEyes Inc. 2007 -2011
Demand Forecast Template -Explanations
Steps 1) Projected Workforce Demand Forecast 2) Projected Actual Headcount Details
1) Ask Finance for headcount forecasts, if not.. 2) Ask leadership for 1-2 year growth forecasts, if not not.. … 3) Read latest Annual Shareholder Report (Form 10K). If 4) If Non-Profit or Government, read Mission statements and required financial disclosures. NOTE: If these type organizations, budget savings or equivalent to profit at private companies. If not.. 5) Use a flat growth forecast. The business leader(s) will correct this when they see reports
1) Use SonarVision Free On-Demand Report a. This is comprised of (Projected Turnover + Projected Retirement) – historical fill-rate b. Based on historical data filtered by the individual position at a business group at a location c. Trended most heavily for recent data uploads 1) Subtract Demand Forecast by the Project Headcount.
Result Objectives
Growth or Contraction percentage for the next 1 3 years
Projected actual headcount filtered by position groups at business entities and specific locations
3) Ascertain Workforce Gaps and/or Surpluses 4) External Talent Factors
1) SonarVision External Talent Market Intelligence 2) GDP 3) Industry Factors The differences are the projected multi-year Gaps or Surpluses Show the numbers. With monthly or quarterly reports, the important trends will emerge Or use the SVOD Free Report for all above except Demand Forecast Projections
Demand Forecast Template
Steps 1) Projected Workforce Demand Forecast 2) Projected Actual Headcount 3) Workforce Gaps and/or Surpluses 4) Factors Impacting External Talent Availability and Costs Result Objectives
© Copyright OrcaEyes Inc. 2007 -2011
WF Planning Functionality Available with Current Data
Use the SVOD “Risk Categories and Metrics” table. All “Metric Value” fields that have data information
Data Accuracy Factor (+ or - x%)
Use SVOD Data Error Log after uploading data. It is fine to put a “?” in any field where the accuracy is uncertain
WF Planning Functionality Not Available with Current Data
Use the SVOD “Risk Categories and Metrics” table. All “Metric Value” fields that have “NO” data information © Copyright OrcaEyes Inc. 2007 -2011
WF Planning Functionality Available with Current Data Data Accuracy Factor (+ or - x%) WF Planning Functionality Not Available with Current Data
© Copyright OrcaEyes Inc. 2007 -2011
Risk Diagnostic Template
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Retirement Overtime X x RNs ER S M 70%+ 60% Aging Demographics Turnover Performance Turnover Turnover Voluntary Turnover Performance Turnover Retirement Demand Forecast (Growth) Examine SVOD Risk Alert Levels Check if it’s for a Department or Position Group List the specific Department or Position Show SVOD Risk Level (Explain Relevancy) CONSERVATIVELY rate actual risk Define root cause a) These relationship are listed in SME Best Practice text below each single metric © Copyright OrcaEyes Inc. 2007 -2011 Data in SVOD Summary Tables
HR Action Plan Solutions Template - Worksheet
1. Ask the leader for time to assess HR Solution cost ranges 2. Go for a pilot project 3. In SVOD Monthly or Quarterly Reports monitor the Risk Trends, the Root Cause Trends and approximate HR associated costs 4. Set meetings to share new results and trends with leader Retirement RNs 70%+ Aging Demographics Turnover Performance Turnover Recruiting Training and Development Retention Compensation Base Bonus Stock Options OT Manager Training Diversity Programs Mentor Programs Leadership Training Engagement Manager Satisfaction Temp/Contract Labor RPO Compensation Benefits Acknowledgment Programs © Copyright OrcaEyes Inc. 2007 -2011
HR Action Plan Solutions Template
© Copyright OrcaEyes Inc. 2007 -2011
Risk Diagnostic Template
© Copyright OrcaEyes Inc. 2007 -2011
Strategic Business KPIs Board Risk Financial Strategic Plans Missions Lost Opportunity Costs Risk & Opportunity Indices FINANCIAL
OT Costs Lost Revenue Sales & Billable Revenue Severance/Excess Payroll Costs Total Labor Costs EFTs Contract/Temp Outsource Vendor Contracts Consultants Downsizing Costs Hiring Costs Training Costs Benefit Costs Insurance Costs
OPERATIONAL
Intellectual Capital Operational Productivity Operational Efficiency Customer Satisfaction Accidents/Errors Procedures Thefts Project Effectiveness Time Cost Overruns
Human Capital Drivers
Organizational Readiness Position Gaps Skill Gaps Position Surplus Skill Surplus Time-to-Fill Attrition Reasons Performance Turnover Aging Demographics Retirement Leave Engagement Manager Satisfaction Top Performer Flight Risk External Talent Supply External Talent Cost
HR Functions
Recruiting Training and Development Retention Compensation Base Bonus Stock Options OT Manager Training Diversity Programs Mentor Programs
Strategic Business KPIs Risk & Opportunity Indices Human Capital Drivers HR Functions
Strategic Business KPIs Board Risk Financial Strategic Plans Missions Lost Opportunity Costs Risk & Opportunity Indices FINANCIAL
OT Costs Lost Revenue Sales & Billable Revenue Severance/Excess Payroll Costs Total Labor Costs EFTs Contract/Temp Outsource Vendor Contracts Consultants Downsizing Costs Hiring Costs Training Costs Benefit Costs Insurance Costs
OPERATIONAL
Intellectual Capital Operational Productivity Operational Efficiency Customer Satisfaction Accidents/Errors Procedures Thefts Project Effectiveness Time Cost Overruns
Human Capital Drivers
Organizational Readiness Position Gaps Skill Gaps Position Surplus Skill Surplus Time-to-Fill Attrition Reasons Performance Turnover Aging Demographics Retirement Leave Engagement Manager Satisfaction Top Performer Flight Risk External Talent Supply External Talent Cost
HR Functions
Recruiting Training and Development Retention Compensation Base Bonus Stock Options OT Manager Training Diversity Programs Mentor Programs
Strategic Business KPIs Risk & Opportunity Indices Human Capital Drivers HR Functions
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a) Finish the templates and keep them in a single folder Remember that a couple need leadership input 2.
b) This folder is mainly for Drill-Down if the leader asks Have multiple copies of the completed “1 st Diagnostic Template and Draft” Risk 3.
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Have multiple copies of the completed “1 st Action Solution Plan Template Draft” HR Have multiple copies of both the example worksheet and the HC-Business Correlation Template Have multiple copies of the SVOD summary report and full report 23
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Relax. You are loaded with CFO type decision data Explain, “We started workforce planning to proactively discover for leadership HC/Workforce Drivers which may be creating potential risks to business: finance, operations and strategic plans.” Every fact is purely data driven. We used standard deviation based on data accuracy to show potential error rates. Explain “Alert Levels” as Purely Directional and Relevancy Assessments to your company a) b) c) d) Your review is required to assess if these potential risks are actual risks to your business With a few templates we will help you to better understand the relationships between HC/workforce drivers and business KPIs. Only you can tell us what may be applicable and what is missing When you assess actual HC-Business risk, we will work with you to develop unified HR solutions proactively When you agree, we will assess costs and resources for your review If you agree, we recommend a pilot project to test validity before full investment We will provide you monthly/quarterly reports monitoring the risk trends, improvements and all root cause to share in meetings with you for what you deem as next best steps.
After the leaders reviews the SVOD Summary and Risk Tables, show them the 1 st Draft” Risk Diagnostic Template ◦ ◦ ◦ ◦ ◦ Explain this is first step of a few examples of potential risk Ask for the input and questions It is far more effective if you are showing the SVOD for that business leaders department or business unit Show them the HC-Business Correlation Template so that they can visually understand the process ◦ Let them know you can generate reports for individual department and position groups This is where their advice on critical relationships is essential ◦ Be sure to write down exactly what the leader says. These are your tickets to providing customized Show the leader a copy of the “Example” HR Action Plan Solution” Template ◦ Ask for more advise and questions Try to get them to come up with ideas for solutions.
Be prepared to answer questions they may have about HR services
If they drill down or ask question you do not know simply let them know you will get back to them ◦ The amount of information and data is extremely impressive in any strategic business circle If they don’t buy-in at first, just ask if they would like to see Quarterly reports ◦ Always do this in person Always pick “Friendlies” with who have a number of potential risks Relax and enjoy the ride. One or more leaders will tout their results in their staff meetings and you will be getting call from all their peers ◦ Momentum and Pull effect will ensue Be Real Proud of your self and enjoy the ride And email or call me with any questions, bumps in the road and especially successes ◦ We can have most of your successes published if you wish