Work Force Planning Initiative CEWD Regional Conference – Columbus, Ohio

By Ray Kelly IVAugust 26, 2008

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Points to discuss in this setting

• How/Why did we get started • How did we get leaders and the businesses engaged• What do you use the information for… WIIFM?• Benefits?

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How/Why did we get started

• Defined Workforce Planning architecture• Evolving standard processes and tools• Build standard containers for reporting information • Standard outputs fold into our business process• Get a much broader reach of people involved

4

How did we get leaders and the businesses engaged

• Emerging information on workforce attrition• Recognition by the CEO and BOD• Formed a cross functional team, lead by HR• Gave the leaders something to work with and shared

issues and improvements• Helped leaders tie their strategy to their workforce

demographics to their training plans

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What do you use the information for… WIIFM?

• To fully understand and present knowledge retention strategy; within and across Business Units.

• Deciding how to prioritize job classifications/hiring plans• Assess recruitment strategies and modify as required• Develop training delivery plans for qualifying/re-qualifying

the workforce• Training Development plans

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What are the Benefits of an Exercise like this?

• Tied to operations plans and future strategies, improving opportunity for success!

• Support from HR to use standard processes and tools• Uniform output should speed up the review and approval

process with Senior Leaders• A more complete picture of the issue(s) and potential

impact to the Enterprise• Improved input into the Recruiting, Staffing, Training, and

Budgeting processes• Leverage the learning across the businesses AND have

HR operate the processThis should eventually give us a better long range plan for managing Knowledge and Skill Retention

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APPENDIX

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A High level Architecture - A few Model/Module descriptors

Data Sources (Business)

Workforce Management Decisions Workforce Analytics

Data Sources (HR)

Workforce Demand AnalysisWorkforce Supply Analysis

Retention

Recruitment

Current Workforce Supply

Future Workforce Supply

Current Workforce Demand

Future Workforce Demand

Business Models

(Unit, Function or Process Specific)

Reporting

Decision Support Tools

(e.g Forecasts and Scenario Testing)

HRIS Data

Other HR Decisions

Gap Analysis(Tactical and

Strategic)

Hiring Planning(Tactical and

Strategic)

Transfers

Promotions

Training

Operational DataHiring Data

Business Management Decisions

BudgetingOther Business

Decisions

External Data(Labor force, population,

business trends, etc.)Financial Data Other Data

Benefit Data (Demographic)

Led by HR with Workforce Planning Support

Led by Central Workforce Planning Team

Led by Businesses with HR Support

Legend

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This is the DTE team charter.

Other charters developed:Distribution Operations Fossil Generation Mich Con Customer Service Corporate Support Finance Nuclear Generation

Project Charter

Form revision date: 05/18/2005

Version: # 04/08/2008Project Name: DTE Energy Enterprise Workforce Planning Initiative

Ideal State

Gaps

Team Members & Roles

Problem Statement

High Level Milestones/Countermeasures (actions, owners & timing)

Challenges/Risks

Current State Case for Change

Key Business Assumptions

Champion: Larry StewardProcess Owner: Ray Kelly IV, Kate HerwickKey Stakeholders: Vince Dow, Steve Kurmas, Bob Richard, Erle Dail, Joyce Hayes-Giles, Other BU leaders in DTE EnergyTeam Lead: Ray Kelly IV, Amy BouqueCore Team Members: Amy Bouque, Lynette Dowler, Frank Wszelaki, Wayne Colonnello, John Erb, Guy Harris, Jeanne Martens, Tim Sullivan, Support Team Members: HR Managers, Data SMEs, EPM members, VinayBhakkad, Emmett RomineBlack Belt Mentor: N/AFinancial Analyst: Jeanne Martens

Estimated completion date of project

Gate Status: Pre Gate 1 Gate 1 Gate 2 Gate 3 Gate 4

•Workforce planning process across DTE is not standardized/consistent/repeatable •Attrition models – incomplete and inconclusive•Productivity models are not integrated in workforce planning•Lack of standard methodologies•Training requests made but not deployed•Outreach efforts are not fully utilized•Previous workforce plans did not consistently address long term requirements (i.e. short term, 1 year focus and driven by budget caps; top Q performance metrics)

•Data is available, consistent, w/integrity•Ability to quantify work•Knowing where/how to get information•Alignment across business units on standardized process and deliverables•Ability to build a central work team for proper process/program execution

•Required multiyear development timeline of replacement workforce•Improved business continuity planning•Economic condition of our community •Budget constraints, top Q performance•Establishment of longer range budget requirements •Repeatable/consistent process•PEP headcount commitment require holistic workforce competency and skilling planning

•There will be significant business shifts and technological advancements in our business and processes over the next 3-5 years, requiring skill enhancements•We will see human capital supply issues across a broad spectrum of our feeder groups •There is a value in completing long range workforce planning and employee development

Short Term – Oct, 2008Long Term – 2010

Sustainable/repeatable/comprehensive process- lack of internal benchmarksA set planning cycle (to increase the accuracy of information, ability to deliver improved results, to mesh with other business system requirements on time)No centrally focused effort, fragmented OR not done at all

Workforce planning processes across DTE Energy are not systematic, coordinated or consistently applied. Complex training requirements, budget requirements and upcoming retirements of an aging workforce makes workforce planning an essential tool to maintain business continuity. Because of the anticipated turnover and the current economic conditions of our community, we have to create a more comprehensive, systematic approach to long range planning for labor acquisition, development, and deployment.

•Integrated tools for data acquisition, workforce analytics, reporting, & decision making (ST/LT)•Centralized approach that engages employees, leaders, unions, and businesses across DTE (LT)•Strategic Business requirements are embedded/understood in the process (business shifts, capital budgets, productivity, technology advancements) (ST/LT)•The process is integrated into other business management decision processes (budgeting, strategic planning, workforce development, etc) (LT)•The process feeds workforce management decision requirements (retention, recruitment, transfers, make-up, etc) (LT)•Reporting is uniform and understood by decision makers (ST/LT)•Workforce development pipelines are designed and integrated enterprise wide; especially education relationships (ST/LT)•Designed and approved approach for completing anticipated attrition hiring (ST)

ST- Short Term 2008; LT – Long Term 2010

Initiate Ideal State design for 2010 WFP initiativesOct

Calibration HR Managers and BU Champions and Update CI Steering CommitteeNov 12

Improved 2009 labor forecast information for S2Oct

Calibration- HR Managers and BU Champions and Update CI Steering CommitteeSep 18

Completed analysis to be integrated in to 2009 S2 planningAug

Calibration - HR Managers and BU Champions and Update CI Steering CommitteeJuly 17

Update CI Steering Committee, APPROVAL for new processes and any required expenses (ideal state and 2008 phased approach)

June

Templates, data sources and expectations delivered to BU teams “phase one”May 26

Review charter, timeline and product with core team. May 1

Develop business case (w/cost benefit). Finalize the work planApr 30

Finish assessment, design of high level architecture Apr 18

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We built the “Swim Lanes” to show the work process requirements.

Who:

BU Lead (COE Mngr)Strategic

Objectives (1)Talent

Implications (2)Talent

Demands (3)Roll-up Report

Roll-up Report

CRC (HR Lead)Strategic

Objectives (1)Talent

Implications (2)Talent

Demands (3)Roll-up Report

Current Workforce Demographics (4)

Attrition - Talent Gaps (5)

Roll-up Report

BU Data SMERoll-up Report

Current Workforce Demographics (4)

Attrition - Talent Gaps (5)

Roll-up Report

BU Director (if diff than Lead)Strategic

Objectives (1)Roll-up Report

Roll-up Report

BU VPStrategic

Objectives (1)Roll-up Report

RecruiterRoll-up Report

WF Plan TeamRoll-up Report

Roll-up Report

Union (where involved)Roll-up Report

Current Workforce Demographics (4)

Attrition - Talent Gaps (5)

Roll-up Report

FinanceRoll-up Report

Roll-up Report

TTO - PIC

DTE Business Process / Cycle

Leads:

Outputs:

Detailed Information:

S1

HR Leads inquiry based information gathering, 1 through 3, CRC/Area Manager interviews director/VP (S1 input)

Steps 4 and 5 are completed by the HR-CRC with support from the Business Unit SME

Strategic Objectives Current Talent Supply

1) STRATEGIC OBJECTIVES- HR interviews director/VP and assists in creationKey Inputs: Talent Planning documents; S1 and S2 documents a) What are key strategic objectives we are striving to achieve over the next 3-5 years? b) What are the 2-3 key success factors that will make or break our success long term? c) What are the few critical outputs/end results for which this group is held accountable? d) What major obstacles will we face in reaching these objectives? e) What competitive advantage do we have that we need to maintain? f) What are the key interdependencies of our organization? g) What is the financial picture of our organization? h) Is the organization growing, maintaining or reducing?

2) TALENT IMPLICATIONS a) What are the recent or projected changes in the group and/or its staff members? b) What type of culture does our business need to thrive? How different is that culture from today? What are steps to achieve? c) Will any skills become less important in achieving business success? Which ones? d) Which skills will become more important? Do we already possess those skills? If not, where does it exist internal or external?

3) TALENT DEMANDS a) Critical Capabilities – Specific skills sets necessary to achieve goals- either entire workforce or a section of the workforce i) What skills will we need that we don’t currently possess? ii) How might we need to change the composition of the workforce? b) Critical Positions – existing roles or functions in the organization that are necessary to achieve business goals i) Will critical business processes stop if the position(s) are left vacant? ii) Are there significant barriers to entry for the postions(s) iii) What is the position’s impact on customer, revenue or productivity? iv) What factors drive success in these critical roles or job families?

4) CURRENT WORKFORCE DEMOGRAPHICS (TALENT SUPPLY) a) Total manpower in job class or family – Provided by HR i) By Gender* ii) By Ethnicity* iii) By Age iv) By Years of Service v) By YOS against Age (Bubble chart) *list Affirmative Action Plan Placement Goals b) OFFSETS – show the walk of above to actual– Completed by BU SME i) Long term light duty assignments ii) Full time Union assignments/equivalents iii) Other non-productive headcount (eg: trainers, etc)

5) ATTRITION – TALENT GAPS a) Hewitt data – historical attrition quits/retirements – Provided by HR b) Prior year’s internal movements – Provided by HR c) Career path movement (ex: progression of SSI to SSII) d) 2007 Actual attrition against anticipated e) Prior year’s staffing activity f) Employee Movement – trends, issues or concerns g) Summary: workforce replacement only

Swim Lanes• Provides role clarity and output

ownership• Documents process steps and

outcome expectations• Defines the timing required

– Not every step required to be series

– Frequent check in required• Created to develop consistency

business unit to business unit• Shows linkage to our

Enterprise planning cycle

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The modeling tool sorts SAP data and pre-populates reporting templates

This modeling tool can be run by each Business

Units HR representatives

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The proposed staffing projections may be modified at anytime and do not represent a guarantee of minimum or fixed hiring commitments or general staffing levels for any of the groups or locations listed, and that work locations, manpower deployment and staffing levels may be modified by management at anytime

subject to changing service requirements, or productivity improvements or for any other allowable purpose. Management retains all legal, equitable and contractual rights to direct and adjust its workforce including, but not limited to, the right to hire, promote, transfer, discharge, suspend or demote.

0202 Fossil Generation Years of Service vs Age• Average Retirement (AR) age and YOS for this work group, from 2002 through 2007 has been 59 and 37 years.

• Learning period for promotion from feeder group(s) is 4 years.

• Feeder group ready now = 3.

• Suggestions:

• Promote the 3 ready now.

• Development guides required for 6 others

• Hire X because 6 “for development” are not available. 1

1 3

1

4

1

5 3

4

2 1

2

0

5

10

15

20

25

30

35

40

45

50

15 20 25 30 35 40 45 50 55 60 65 70 75 80

Age Brackets

YO

S B

rack

ets

One of the pre-populated output reports

EXAMPLE, for illustration only!

AR

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Attrition AnalysisOutput Breakdown

The proposed staffing projections may be modified at anytime and do not represent a guarantee of minimum or fixed hiring commitments or general staffing levels for any of the groups or locations listed, and that work locations, manpower deployment and staffing levels may be modified by management at anytime subject to changing service requirements, or productivity improvements or for any other allowable purpose.

Management retains all legal, equitable and contractual rights to direct and adjust its workforce including, but not limited to, the right to hire, promote, transfer, discharge, suspend or demote.

Car

eer

Pro

gres

sion

7 0

3 / 0

415Current:

0

2

Applications Engineer

Associate Engineer - ESODTECH - 1 - 50%

FG - 1 - 50%

Financial Associate

Principal Market EngineerFin&T - 1 - 25%

ED - 1 - 25%Senior Strategist - Energy DistributionFG - 1 - 25%

Staff Engineer

22 0

Data Range: 2006 - 2007

Comments Area:

Current as of: July 9, 2008

Movements Into Movements Out of

Ext Hires

Internal Movement Into Job

Promotions

Terminations & Quits / Retires

Demotions

Internal Movement Out of Job

Legend

Job Title

Dept - Bldg - # moves - % movements

Internal Movement Descriptions Key

(excl prom & dem)

(excl prom & dem)

Demotions out of JobPromotions into Job

Current HeadCount

Internal Movement Descriptions

Internal Movement Descriptions

Promotions out of JobDemotions into Job

Terminations / RetirementsNew Hires

Job Titles

Internal Movements out of JobInternal Movements into Job

Note: All counts represent total employee movement in the time frame chosen

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Attrition AnalysisSample Output (4 Jobs)Can do as many as 5 jobs.

4 / 0

0

The proposed staffing projections may be modified at anytime and do not represent a guarantee of minimum or fixed hiring commitments or general staffing levels for any of the groups or locations listed, and that work locations, manpower deployment and staffing levels may be modified by management at anytime subject to changing service requirements, or productivity improvements or for any other allowable purpose.

Management retains all legal, equitable and contractual rights to direct and adjust its workforce including, but not limited to, the right to hire, promote, transfer, discharge, suspend or demote.

12Current:

0

4

Car

eer

Pro

gres

sion

n/a

Student Co-Op1n/a - 1 - 25%

DO - 1 - 25%Senior Technician - System Underground

DO - 1 - 25%

Associate Engineer

7 0

3 / 0

415Current:

0

2

Applications Engineer

Associate Engineer - ESODTECH - 1 - 50%

FG - 1 - 50%

Financial Associate

Principal Market EngineerFin&T - 1 - 25%

ED - 1 - 25%Senior Strategist - Energy DistributionFG - 1 - 25%

Staff Engineer

22 0

10 / 7

271Current:

0

1

n/an/a - 1 - 100%

Supervisor - Ombudsman

Senior Strategist - Energy DistributionDO - 1 - 50%

DO - 1 - 50%

Senior Engineer

8 0

3 / 4

833Current:

0

1

Manager - Turnkey ProjectsDTECH - 1 - 100%

Supervising Engineer

Supervising Engineer-Community LightingDO - 3 - 37.5%

DO - 1 - 12.5%Supervising Engineer & OmbudsmanDO - 1 - 12.5%

Principal Engineer - Energy Distribution

Data Range: 2006 - 2007

Comments Area:

Current as of: July 9, 2008

Movements Into Movements Out of

Ext Hires

Internal Movement Into Job

Promotions

Terminations & Quits / Retires

Demotions

Internal Movement Out of Job

Legend

Job Title

Dept - Bldg - # moves - % movements

Internal Movement Descriptions Key

(excl prom & dem)

(excl prom & dem)

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Another Output, Training Plan:14) Training Plan Overall

Training Plan Overall Presentation Slide

2009 2010 2011 2012 2013

Required Training

Number of new hires

Forecast overtime for classroom training

Forecast total classroom training budget

Annual/Biannual Recertification (new hires only)

Number of new hires

Forecast budget

Development of Training

Scope of curriculum / course

Prioritization of project

Impact of personnel

Forecast budget

Total Budget Forecast

Training Plan Overall Presentation SlideJob Classifications – Business Group

1. Job Classification & number of hires2. Job Classification & number of hires3. Job Classification & number of hires

Curriculum / Course Development

Estimated length in hours

MediaClassroom, Web, Blended

New training materialsExisting training materials

Curriculum or courseanalysis required

Total number of employees affected

SME availability

Desired completion date

Prioritization rating form

Training Development

Worksheet and instructions will be posted on Performance Measurement website

Submit worksheet to TTO DO

Process Improvement Consultant