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Strategic Workforce Planning
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Name
Date
Achieve Your Business Goals with
Strategic Workforce Planning
© 2011 SAP AG. All rights reserved. 3
Agenda
Key Trends and Issues
Solution Overview
Why SAP? Top Reasons
© 2011 SAP AG. All rights reserved. 4
External PressuresMajor changes driving the business world
Demographic change
Many countries (EU, Canada, Japan) are rapidly aging and shrinking
Other regions (Asia, Africa, Latin America) are growing and
improving their educational systems
New employment models
Workforce is becoming more “mobile”
Skills and job types are evolving (e.g. knowledge worker)
Emerging markets
Need to address new market situations; for example, a shift from old and mature
markets to new emerging markets
Faster economic cycles
Economic developments are harder to forecast, which makes it more
important to find right answers regarding workforce fast and effectively
© 2011 SAP AG. All rights reserved. 5
Internal PressuresStrategic Workforce Planning is essential for companies with…
…long lead times to fill jobs
Examples: Pharmaceutical, Engineering, Aviation
…major transformation
Companies that are faced with reinventing their business model or enter
new markets with new products & services
Industries in which legal regulations or government decisions significantly
impact companies
Examples: Automotive, IT, Public Sector, Energy Sector
…a high cost of human resources
Examples: (Professional) Service Provider, IT, BPO
© 2011 SAP AG. All rights reserved. 6
Strategic business imperatives are not translated into the company’s workforce plan
The organization is challenged to progress towards its strategic goals
Strategic topics are not supported with enough qualified employees
Management
Costs: HR costs are too high due to a large number of ad-hoc hires
Revenue: Revenue opportunities cannot be exploited because the right talent is not available
Lack of insight into key critical resources and potential skill shortages
Right resources cannot be sourced in time or without significant cost
Challenges in identifying risks regarding the workforce
Process is manual, ad-hoc, cumbersome, mostly operational and misaligned
Inadequate tools to provide visibility into data
Difficult to consolidate planning across the organization
Challenges in Managing the Workforce on a Strategic Level
Human Resources
HR IT
© 2011 SAP AG. All rights reserved. 7
Strategic workforce planning includes the set of processes,
people and tools to ensure that organizations always have:
the right resources
with the right skills
in the right job
at the right moment
in the right quantity
in the right place
at the right price
to execute the business strategy
What kind of activities do we have to do today to enable execution tomorrow?
Are we building talent according to our strategy?
Will we have the right resources to enter new markets or launch new products?
Manage Your Workforce to Achieve Your Business Objectives
© 2011 SAP AG. All rights reserved. 8
Agenda
Key Trends and Issues
Solution Overview
Why SAP? Top Reasons
© 2011 SAP AG. All rights reserved. 9
What is Strategic Workforce Planning?
The business process for ensuring that an organization
has a clear understanding of the workforce resources
required to achieve future business success.
Is… Is Not…
Ongoing process
Long term outlook beyond two years
HR history a starting point for simulations
Key jobs driving and supporting strategy
Focused across the enterprise
Identifying and addressing talent gaps
Driving HR strategy
One time, point in time
Next week, month, quarter, year
HR analytics
Named resources
Project demand
Skill matching and workforce scheduling
Capacity planning & forecasting (HC/budget)
© 2011 SAP AG. All rights reserved. 10
Mid to Long Term Strategic Planning
Near Term Operational Planning
Deployment Management
Business Planning & Consolidation
MRS• Assignments
• Scheduling
• Utilization
HCM• HR/Payroll
• Talent Mgmt.
• …
Management
Project
Manager
Resource
Manager
HR
Long term
workforce plan
Headcount, budget,
compensation change Line
Manager
HR
Line
Manager
Project
Resource
Plan
Levels of Workforce Planning, Deployment, Management
Operational
Workforce Planning
Resource
Management Workforce Demographics Simulation and Modeling
Bottom-Up: Plan detailed
workforce demand on lower
organizational levels
Staff projects based on skill
requirements, availability,
and preferences
Focus on future development
of internal and external
workforce supply & demand
and provide solutions
Determine workforce supply
and demand for key jobs,
and derive high level plans
Strategic Workforce Planning
SWP
© 2011 SAP AG. All rights reserved. 11
Strategy Department
Gives input regarding
strategic drivers and
receives workforce
intelligence insights
Business Unit
Decides on long term
workforce plan based
on given information
€
Finance
Gives input regarding
financial figures and
receives insights for
midterm financial
planning
HR
HR Business Partner
Consults with Business
Units based on workforce
intelligence and
drives action plans as
final deliverable from
the SWP process
Workforce
Planner
Orchestrates,
drives and monitors
workforce planning
initiatives and processes
!
HR HR HR
Corporate HR
Recruiting, Staffing, Talent Management
and other HR functions support
execution of workforce action plans
Who is Involved in the Process?
© 2011 SAP AG. All rights reserved. 12
Company strategy is translated
and executed in the strategic
workforce planning process
Business process covers related
activities, with interfaces and
dependencies to other
processes
The business process is
supported by reporting,
analyzing and planning tools
Accurate and complete data
produces the best possible plan
Integrated business
planning
Ensure process ownership & governance.
Systems to support
business needs.
Required HR and Finance
data must be available and
accurate.
STRATEGY
PROCESS
TOOLS
MASTER DATA
Analy ze internal& external supply
Deriv e strategic workforce
demandAnaly ze Gaps
Dev elop action plan & handov er
Monitor progress & adjust process
Key Building Blocks for Accurate Planning
© 2011 SAP AG. All rights reserved. 13
Workforce
Planning
Process
Develop
workforce
action plans
& handover
Monitor
progress &
adjust processAnalyze
internal &
external
supply
Derive
strategic
workforce
demand
Analyze gaps
Monitor progress and define
countermeasures in case of
deviations
Lessons learned: improve
execution processes, guidelines,
database, etc.
Analyze internal workforce
structure and dynamics
(quantitative & qualitative)
Analyze external workforce,
labor market conditions,
demographics
Strategic Input:e.g. Business StrategyFinancial StrategyLocation StrategyM&A Strategy
Execute action plans: e.g. Business workforce plan, Training, Recruiting, Contractor Management, M&A, In-/Out-Sourcing, Partner Management
Derive operational targets
based on a decision framework:
Hiring & retiring
Succession planning
Training
In- / Out–Sourcing
Contractor Management
M&A
Partner Management
Identify and analyze gaps
Translate business strategy
into quantitative and qualitative
workforce demand
Simulate various scenarios
Monitor
progress &
adjust process
Workforce
Planning
Process
Develop
workforce
action plans
& handover Derive
strategic
workforce
demand
Analyze gaps
Monitor
progress &
adjust process Analyze
workforce
supply
Defined and Integrated Business Process is Key for Success
© 2011 SAP AG. All rights reserved. 14
Analyze Workforce Supply
Demographics Projections
Age and Retirement
Gender, Ethnicity, Country of Origin
© 2011 SAP AG. All rights reserved. 15
Analyze Workforce Supply
Jobs driving and supporting strategy
Employee or non-employee (contractor, intern)
Employee or manager
Years of service/seniority
Critical
Core
Expendable
Importance to driving the business
© 2011 SAP AG. All rights reserved. 16
Derive Strategic Workforce Demand
Demand
Drivers – industry & company specific, examples include barrels of oil, moving tonnage,
cases of soda, utilization, kilowatt hours, revenue, etc.
Workforce projection
$ / €
Translate Strategic Input:• Business Strategy• Financial Strategy• Location Strategy• M&A Strategy
© 2011 SAP AG. All rights reserved. 17
Analyze Gaps
Supply and demand analysis and projections
Internal supply
Projected demand
Market impact
– Availability
– Cost
© 2011 SAP AG. All rights reserved. 18
Develop Action Plans
HR strategies and action plans
What human resources do I need?
How do I develop my resources?
How do I retain my key resources?
Human Capital
Strategy
Engage
Acquire
PromoteRetain
Develop
© 2011 SAP AG. All rights reserved. 19
Monitor and Adjust
Measure progress
Monitor progress towards plans
Align plans with reality
Define countermeasures in case of deviations
Take corrective action, adjust plans
© 2011 SAP AG. All rights reserved. 20
Analyze workforce composition
Pre-packaged dashboards focused on the needs of HR
executives at enterprise level and across lines of business
Focus on and co-ordinate key critical resources at group level
Real-time insight and analysis of workforce demographics,
distribution, and skills
Define strategic goals
Refine complex workforce models driven by strategic revenue,
FTE, hiring & attrition rates, cost, retirement age
Target revenue and FTE across time by line of business,
location, current and strategic role
Real-time simulation and modeling
Exploit the power of SAP HANA to perform complex simulations
on demand and in “real” real-time
Simulate the “true cost” of employees including hiring,
overhead, retraining and one-time charges
Make informed decisions to close strategic gaps while keeping
personnel costs in check
Transparency, Modeling and Simulation, Analysis,
Planning, Monitor
© 2011 SAP AG. All rights reserved. 21
What Does this Mean for Your Business?
Understand where critical resource gaps
remain that will impede business progress
Understand the future impact of workforce
decisions
Reduce risk associated with sourcing, especially
for highly skilled and technical personnel
Enter new markets and support new
opportunities with the right talent
Monitor progress against goals
© 2011 SAP AG. All rights reserved. 22
Agenda
Key Trends and Issues
Solution Overview
Why SAP? Top Reasons
© 2011 SAP AG. All rights reserved. 23
Why SAP BusinessObjects Strategic Workforce Planning?
Complete Business Process
Power of SAP In-Memory Computing
Flexible and Configurable
Analytics
• Leverage data you already have to build plans and address your future workforce needs
• Perform complex calculations and simulations to model the future of your workforce
• Navigate through your data to identify issues and understand root causes
Thank You!
Appendix
© 2011 SAP AG. All rights reserved. 26
In-Memory Computing with SAP
SAP HANA
SAP
Business
Suite
SAP BW
Other Sources
replicate
ETL
SAP HANA
modeling
BI Clients
SQ
L
MD
X
BIC
S
ApplicationsWhat is SAP HANA? SAP HANA is a pre-configured appliance that
includes in-memory software bundled with
hardware
Includes tools for data modeling, data and life
cycle management, security, operations, etc.
Provides support for multiple interfaces
HANA’s Capabilities Analyze information in real-time at
unprecedented speeds on large volumes of non-
aggregated data.
Create flexible analytic models based on real-
time and historic business data
Foundation for new category of applications
(e.g., planning, simulation) to significantly
outperform current applications in category
Minimizes data duplication