Workforce Planning

Business Unit Planning Tool Kit (draft)

Essential Elements of Strategic Workforce Planning

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The Building Analogy

It must be built to withstand time

Sustainable 5

It requires a team approach to complete

Team 4

It must have critical skills to build

Skills 3

It must have a solid planPlan 2

Every building needs a strong foundation

Foundation 1

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Building the House - Planning

• Why are we building a house• Is it a New house or a Remodel• What kind of house do we need• What do we need from this house• How soon do we need build our house• What do the plans need to include• Where will we build the house

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Strategic Workforce Planning

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Strategic Workforce Planning

Financial Planning

Business Strategy Planning

SWP enables us to evaluate workforce alignment to business strategy and identify risk to meeting organizations plans. SWP connects business , financial and workforce plan together.

HR Architected&

Line Driven/ Implemented

Directional Understanding

• Where is the organization moving towards

• What are their financial factors

• What are the environmental factors

• Who are the stake holders and what are their needs

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Strategy Analysis

Workforce Segmentation

Environmental Scan

Scenario Planning

Workforce Risk

Assessment

Business Unit Planning Process

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Strategy Analysis

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Link Workforce Needs to Corporate Business Strategies

What is the organizations business strategy What are the business objectives What are the business drivers

Growth Financial Market

Corp Strategies Unit Business Plan

Workforce Direction

Workforce Segmentation

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What roles in the organization are essential to implementing the business strategy?

Try to identify the three to five roles that are absolutely critical.

CEWD has identified the following job groups as important Technicians Plant Operators Engineers

New Skill and Productivity Requirements

Future & Current Critical Skills/Jobs

What are the Workforce Demands

Environmental Scan

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External Impacts• Governmental/Economic• Energy Industry Trends• Educational

Internal Impacts• Financial• Organizational• Employee

Potential External ImpactsGovernmental/Economic Current commitments with Public Utility Commissions that would limit hiring

strategies, i.e. rate case issues. Regional population growth rates impacts Regional unemployment rates impacts Pending legislation that may affect hiring practices and benefits

Energy Industry Trends Merger and acquisition trends New Technology Strategies Projected  growth in energy needs Outsourcing trends on base load work

Educational What are the types of educational program supporting the energy sector. Are

these programs available in the recruiting geo-graphic area. What are the enrollments and graduation rates for these programs What is the diversity mix of students in these programs

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Potential Internal ImpactsFinancial Considerations Projected company growth in new customers Review of company capital projects for the next 1 to 5 years Review of company O&M requirements for the next 1 to 5 years Budget available for “STAFFING MARGIN” Budget availability for training and development requirements

Organizational Considerations Organizational changes, i.e. Leader changes, department consolidations, etc Organizational capacity requirements Knowledge, skills and abilities for current employees Current labor agreement provisions and expiration dates Organization’s relationship with unions (collaborative or adversarial)

Employee Demographics Turnover rates, retirement and non-retirement. Reason for turnover. Demographic profiles of current employees, age, race, gender, length of

service, retirement eligibility and other unique factors by organization

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Scenario Planning

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Illustration purposes only

Workforce Risk Assessment

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Illustration purposes only

Managing WFP Risk

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What are your Key Risk indicators % of attrition by job % eligible to retire Ave age of employee Ave years of service Ave time to fill critical positions Ave training lead times % of empl completing training

What are your Business Drivers Qualified workforce Process efficiencies Budget/Financial Effectiveness use of talent Organizational performance Safety objectives Leadership effectiveness

What are your Risk Events Knowledge deficiencies Insufficient skill sets Equipment failures Unplanned outages Regulatory oversight

What are your Potential Impacts Financial/Earnings Safety Staffing Customer Business Performance

Building a Case for Action

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• Purpose

• Strategic & Operational Effects

• Approach & Methods

• Business Value Impact

• Risk and Uncertainty

Using the Planning Process, Build a Case for Action

Develop a Hiring Approach

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Illustration purposes only

Where will the future sources of talent be found?

Talent Sources - GIEP

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Military Impact on Talent Sources

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Armed Services Active Duty Projected Decreases by 2017

Army 562,000 72,000

Navy 325,800 6,200

Air Force 332,800 4,200

Marines 202,000 20,000

Total 1,422,600 102,400

Source – McClatchy Newspapers, 2-13-2012

There will be more veterans looking for careers in the near future!

Troops to Energy Jobs Opportunity

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With over 102,400 veterans entering the workforce and over 103,500 utility needing to be filled over the next 3 to 4 years……

GREAT OPPORTUNITY for Troops to Energy Jobs to have an impact on our industry!

Essential Elements of Strategic Workforce Planning

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Questions & Answer Session

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Addendum

Other Samples of Business & Strategic Planning Models

Five Elements of a Strategic Plan

BusinessPlan

Priority

Vision

Mission

KPI’sOrg

Initiatives

• Vision Statement

• Mission Statement

• Core Business

• What’s Measured• Critical Success

Factors

• Strategies & Actions

• Key Objectives

• What’s Important• Org Schedule

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SWOT Analysis Impacts

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W T

OS

WeaknessesWhat are my gaps and

weaknesses

ThreatsWhat are the internal and external issues

StrengthsWhat are our strengths

OpportunitiesWhat can we leverage and improve

PEST Analysis Impacts

P

E

S

T

Political Factors

Economic Factors

Sociological Factors

Technological Factors

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What are the impacts of these factors?

Porter’s 5 Forces Model

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Potential Entrant

BuyersSuppliers

Substitutes

Competition

What are the forces impacting an organization?

McKinsey 7S Model

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How are these elements impacting an organization?

Example of a Planning Template

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