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Workforce planning

October 2016

Ericsson structural changes_INTERNAL_FINAL | Ericsson Internal | GFMC-16:000102 Uen, Rev A | 2016-04-21 |

EXECUTE PLAN PREDICT

Integrated

Enterprise

planning

business

driven

tactics

operational

excellence

the vision


Maturity model – 5 yr PLAN

Year 1

Strategic & Tactical WFP Processes

Standard Analytics & Reports

Closing Critical Competence & Resource

Gaps

Consistency

Competence Model

Common HR Toolset

Year 2

Strategic & Tactical WFP (Consistency)

Business Analytics Aligned to Financials

Standard Workforce Models

Plan & Forecast Accuracy

Workforce Cost Impact Analysis

Global Workforce KPIs

Year 3

Strategic & Tactical WFP (Predictive)

Business Leaders Rely on Workforce

Analytics

Standard Workforce Models and Strategies

Management of Global Supply & Demand

Workforce Cost and Investment Impact

Analysis

Enhance WFP Toolset


Year 4

Strategic & Tactical WFP Processes (World-Class)

Business Leaders Rely on Workforce Analytics that show

Trending and Planned Headcount and Cost

Optimized Workforce Models and Strategies


Workforce Cost Optimization, Balanced

with Business Risk

Workforce Planning and Developing Scenario

Tools


Year 5

Strategic & Tactical WFP Processes (Leading Edge)

Business Leaders Rely on Workforce Analytics that allow Scenario Planning and Views into Cost and

Investment

Workforce Optimization is Routinely Part of Business

Decision Making




Strategic WFP framework

Scope: Critical Resource and Competence Gaps Needed to Drive Profitable Growth. 0-5+ years.

Closing Competence and Resource Gaps

Sales Ambition and Business Plan

Outcomes

MEASURE

Workforce Future State

Workforce Current State

Target Alignment – BSC Target – Efficiency – Financials

Gap Closing Source

– Recruit – Train – Reallocate – Local Partners – GSC – GCH – BU – Acquire

UNDERSTAND ANALYZE PLAN & IMPLEMENT DRIVE

Market Dynamics

Industry Landscape

Competitive Landscape

BU Business Plan

Region Growth Plan

FA Dimensioning

Global Trends

Target Alignment – BSC Target – Efficiency – Financials

Gap Closing Source

– Recruit – Train – Reallocate – Local Partners – GSC – GCH – BU – Acquire


Tactical WFP Framework

• Demand • Critical Gaps • Supply • Strategy • Budget and

Forecast • Analytics • Job

Requisitions/ Openings

• Desired business outcomes

Current Workforce Ideal Workforce

Attrition Percent Backfill

Business Run Off

Location Strategy

Workforce Pyramid

Allowable Headcount

Gaps & Surpluses

Plan for closing gaps

&

Plan for addressing

surplus

Measure

• Closing Critical Gaps

• Cost of Workforce

Understand: Discover: Plan & Implement: Drive:

Calibrate

Forecast

Implement

• Revenue Growth • Efficiency • Profitability

Scope: 0-18 months. End to End competence and resource gaps and surpluses. Goal: Understand demand and supply to determine the best strategies to manage gaps/surpluses in skills, employee levels, and affordability ahead of anticipated business change.


Workforce strategies

Tactical workforce planning

CURRENT

Q1 Q2 Q3 Q4 Q1 Q2

HC HC HC HC HC HC

Pyramid

Location

Competence

Job Role

Workforce/HC

Cost of Workforce

• Strategy / Business Plan • Product Life Cycle Phases

• Financial Targets/ Productivity • Strategic Programs

Increases and Decreases in headcount – taking into consideration locations, competence, pyramids etc. to reach

the wanted position

desired

Pyramid

Location

Competence

Job Role

Workforce/HC

Cost of Workforce


Sta

rting

Hea

dcou

nt /

Cur

rent

Wor

kfor

ce

End

ing

Hea

dcou

nt /

Wan

ted

Wor

kfor

ce

Attrition and Attrition Backfill

New Business / Add On Business

Acquisition or Divestiture

Critical Competence

Competence Shifts

Project Ends/Productivity Initiatives

Pyramid Model Changes

Workforce Strategy and Headcount Changes

Managing HOW this happens will create business impact (CoWF)/risk

Workforce optimization


Promoting informed business decisions

Supply Information •Workforce Plans •Workforce Analytics

•Business Analytics

Building Context •Understanding relationship between business and workforce analytics.

•Drawing conclusions.

Informed Workforce Decisions •Providing insight around workforce strategies/options.

•Understanding the impact of various options on the business (Cost of Workforce)

•Partnering via HR Business Partner with business leaders to answer related questions and support business decisions.

Execution and Monitoring •Realization of expected impact of decisions

•Tracking to plan •Course correction as needed


Important handshake

HR Finance

Sales Strategy

Secure agreement at senior level.


Introducing cost

Cost of Workforce (CoW)

Keep it simple and mature from there (fixed cost, variable costs of each position)

Tie to elements that influence cost (job level, role, location…)

This will provide a directionally sound view of cost of each positon (whether actual headcount or projected).

APPLYING CoW

Linking to each position can aggregate to see current and future cost.

What if scenario analysis – informed business decisions.

Cost of plans – either components – e.g. changes in pyramid over time – or E2E views of the workforce e.g. competence shift to new location.

Business Value

Insight to business on cost changes as they apply workforce strategies allows informed decisions when balanced with business risk.

Cost targets can be in the form of headcount reductions, show real cost before and after.

Cost of investment can be affordable if workforce is optimized e.g. attrition backfill managed.


Business driven results

• Growth and business plans • Sales Pipeline • Business and Workforce

Analytics • E2E Workforce Plan • Cost of Workforce • Starting and Business

Driven Ending Workforce • Plans to address gaps and

surpluses.

Tactical Workforce Planning

• “What if?” simulations to enable informed workforce decisions, based in changes to Cost of Workforce..

• Optimized plans to accomplish business driven headcount increases/reductions.

Headcount Forecast

• Cost of workforce and headcount forecast provide validation for cost center bottom up forecasting.

• Provide input into GLT level financial and business discussions.

Cost Center Budget and Forecasting

Process


Tools choices

PowerPoint

Excel

HRMS Data

Reports

Basic Planning Database Basic Reporting Data in One Place Workforce Analytics

Scenario Planning/ Modeling Integrated Cost Dashboards and Planning Analytics Workforce Analytics

Manual Semi-Automated Automated

Tool choice can prove limiting – pay now, pay later!


Enterprise Level Deployment • Entire Company In Scope

Performance Management • Included in Goals and Reported to Top Level of Company

Competence Model • Speaking the same language about people

Executive Sponsorship • Commitment to “stay the course”

Workforce Planning as a Business Process • Business owns the content, HR consults and facilitates

Cost of Workforce • Aligning with finance and adding the cost element make it real

Integration with Analytics • Analytics and scenario planning incentivizes good decision making

Key success factors

Workforce planning - Icon Group · PDF fileEricsson structural changes_INTERNAL_FINAL ......

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