Workforce Planning Translating Business Initiatives into a Workforce

Workforce Planning: Translating Business Initiatives into a Workforce Plan Susan Hopson May, 2013

Project Overview �Create a consistent, City- wide approach to Workforce Planning, through analysis of business drivers, staff and resources �This tool should help you: ◦ Adapt to workforce changes faster ◦ Eliminate wasteful steps ◦ Plan and budget with greater accuracy

What is Workforce Planning? �Workforce planning is an intentional and integrated approach to projecting and managing the workforce of the future. ◦ It is integrated into Medtronic’s major planning processes of strategic planning, organization review, and the Annual Operating Plan (AOP). ◦ Workforce planning translates the strategic initiatives of the business into a talent resource plan that is proactive and actionable. ◦ This toolkit is designed for the human resource generalists and line management teams responsible for identifying strategic priorities and implementing those through a critical company asset, talent.

What is Workforce Planning At Medtronic? �It’s part of a process that begins with Strategic Planning �Disruptive Technology �War On Talent �Talent Requirements �Degreed �Adaptable �Mobile �Individuals w/ high values �Able to contribute more than just to your functional area �Retention of talent �Succession planning

We’re Not Medtronic…. � Strategic Planning � Workforce Planning ◦ Organizational Plan ◦ Talent Review Plan ◦ Action Plans What’s important to the City � Strategic Planning ◦ Board Retreats �Focus Area Cabinets �KBE Priorities � Business Plans � Key considerations: ◦ Budget ◦ Achieving business goals ◦ Documenting processes ◦ Employee retention ◦ Employee development ◦ Succession planning

The Business Case for Change � “Knowledge” � PATS � City Administrator � HR � PRT � Budget � Business Plan � Consistent approach to Workforce Planning using analysis and tools � Elimination of waste � Stronger analysis of staffing needs � Fewer surprises � Improved IEDP process � Linkage to the business plan � Earlier involvement of the PRT � Better budget planning

A Staffing Change Occurs (resignation/termination) �Current State � � � �Future State There’s some confusion. � Department Head asks HR if there is a need to have a PRT meeting. � Some Department Heads go � to the City Administrator first to see if they can fill the new � opening. The Department Head, at some moment, talks to Budget. A PRT meeting may be held and then the Department Head moves forward to fill the � open position. Sometimes there is no PRT meeting. The Department Head uses the Workforce Planning process and tools. A strong business plan is created. Key actions are implemented and monitored quarterly. A change occurs in staffing and the Department Head goes back to the Business plan, works with the Budget team and HR, attends a PRT meeting and the proposal is submitted to the City Administrator. There is less waste and confusion, more planning on the front end, more targeted staff development and more speed in adjusting to staffing changes.

Current State � Each year a Business Plan is developed by the Department Head and reviewed with the KBE’s and Budget Staff ◦ During the course of the year the Business Plan is reviewed quarterly. ◦ Departmental performance is measured against industry indicators. ◦ Key projects are tracked. ◦ Dollars needed for projects are identified during the budget process. ◦ Staffing needs are assessed as the business plan is created, but as employees depart or as business needs or business drivers change, there is a reactive approach. ◦ But do we spend the time we should on gap analysis, staffing projection and staff development, when we are rushing?

Future State � The Business Plan will continue to be developed by the Department Head and reviewed with the KBE’s and Budget Staff ◦ The Department Head will analyze business conditions and resources, including people resources with a consistent approach and the same tools. ◦ New tools will include a SWOT analysis and an analysis of people, skills and resources (Deployment Model) – incorporated in the Business Plan. ◦ Headcount projection and budget $$ will be tracked. ◦ Tracking of key projects and measurement to key business indicators will remain the same. Note – This is a dynamic process! Change occurs!

New Tools for Your Toolbox! �Remember…. the goal is: ◦ ◦ ◦ Consistency Integrated approach Intentional planning Accurate forecasting of budget Stronger employee development Creation of contingency plans

Current and Future Challenges Facing the Business (SWOT Analysis) Strengths What do you do well? What unique resources can you draw on? What do others see as your strengths? Weaknesses What could you improve? Where do you have fewer resources than others? What are others likely to see as weaknesses? Opportunities What opportunities are open to you? What trends could you take advantage of? How can you turn your strengths into opportunities? Threats What threats could harm you? What is your competition doing? What threats do your weaknesses expose you to? Step # 1 – Use this slide to assess business challenges and business drivers

Deployment Model Step 1 – Supply Analysis Consider: Staffing levels Workforce skills Workforce demographics Employment trends Step 2 – Demand Analysis Consider: Workforce skills to meet projected needs Staffing patterns Anticipated program and workload changes Step 3 – Gap Analysis Step 4 – Strategy Development Consider: Compare supply analysis with demand analysis to determine future gaps (shortages) and surpluses (excesses) in the number of staff and needed skills Identify future changes in workforce demographics Identify areas in which management action will be needed to reach work force objectives Plan: Recruiting Succession Employee development and re-training Work / organization change Step # 2– Use this slide to assess workforce – current skills and future skills, as well as required resources

Conducting the Workforce Analysis – Step by Step Supply Analysis � Supply analysis focuses on the specifics of the City’s existing workforce and projects future workforce supply. This step involves (1) creating a current workforce profile, (2) reviewing trend data, and (3) projecting future workforce supply. � A profile of its existing workforce helps the City understand where it is in terms of the right number of people with the right skills. Analysis of the current workforce can include: � Number of employees and contracted workers � Skill assessment of employees � Volunteers / Interns � Salary and contract workforce expenditure data � Workforce diversity (age, gender, and race) � Retirement eligibility statistics � Location � Of the items above, all but the skill assessment should be readily available to the City through employee payroll records, employee files, and various human resources databases. � Next, the City should look at trend data, which provides a picture of what occurred in the past. It can also help the City predict the supply of skills that may be available in the future. Examples of trend data include: � Hiring patterns (time required to fill vacancies, average number of vacancies in a year, etc. ) � Retirement patterns � Employee turnover statistics � It may be helpful to break down the trend analysis by City division or by occupational groups. Looking at trend data will help the City project future workforce supply. It will also help the City apply assumptions about how the variables listed above will influence the future workforce. Trend information combined with the current workforce profile is an essential building block forecasting workforce supply.

Demand Analysis • Demand analysis identifies the workforce needed to carry out the mission of an organization. The focus of this step should be on the functions that an organization must perform and not just on the people. One reason this step is separated from the supply projections is to ensure that changes in functions are considered. These changes might have a significant impact on the size and kind of workforce that will be needed in the future. This step may provide one of the greatest benefits in workforce planning because it offers the chance for the City to reexamine long-standing assumptions about the purpose and direction of its programs in light of changes that are taking place in the external environment. Results include a forecast of the numbers of employees needed in the future (for example, 1 to 5 years out) and the skills workers will need. • Two ways to determine future functional requirements are through environmental scanning (SWOT analysis) and organizational analysis. Environmental scanning is the process of examining external trends to obtain a better understanding of what is happening in the environment in which the City operates. There are several approaches to environmental scanning. The scan should include trends and issues in the economic, social, technological, legal, and political areas. It is important to track the legislative and appropriations processes to identify factors that may change the City’s mission or program priorities. It is also important to track the changing composition of the workforce and shifting work patterns including demographics, diversity, outsourcing, and growing and vanishing occupations. An organizational analysis should include internal factors such as strategic objectives, business functions, and technology. • Once the “what” and “how” of future work are determined, the next step is to identify the skills employees need to carry out that work. The future workforce profile shows the number of workers and the set of worker skills needed for the City’s future workforce. These can be incorporated into the employee development process.

Gap Analysis • Gap analysis is the process of comparing the workforce supply projection to the workforce demand forecast. An analysis should consider the composition of the workforce, including demographic characteristics, geographic location, size, and employee skill level. The City will eventually establish workforce strategies based on the results of this analysis. Analysis results will show one of the following: • A gap (when projected supply is less than forecasted demand), which indicates a future shortage of needed workers or skills. • A surplus (when projected supply is greater than forecasted demand, which indicates a future excess in some categories of workers and may require action. The surplus data may represent occupations or skills that will not be needed in the future or at least not needed to the same extent.

Strategy Development • The final step in the workforce analysis phase involves the development of strategies to address future gaps and surpluses. Strategies include the programs, policies, and practices that assist in recruiting, developing, and retaining the critical staff needed to achieve program goals. A wide range of strategies exists for attracting and/or developing staff, managing situations with skill gaps and handling situations where skills are no longer needed in an organization. • Once the City identifies a workforce gap, it needs to develop and implement effective strategies to fill the gap. Such strategies include outreach recruitment, contract worker attainment, staff training, and succession planning. Critical gaps should be analyzed with care to ensure that timely action is taken before these gaps become a problem for the organization. • Several factors influence which strategy or, which combination of strategies should be used. Some of these factors include, but are not limited to, the following: q Time – Is there enough time to develop staff internally for anticipated vacancies or new skill needs, or is special, fast-paced recruitment the best approach? q Resources – What resources (for example, technology, Web sites, structured templates, and sample plans) are currently available to provide assistance, or must resources be developed? q Internal depth – Does existing staff demonstrate the potential or interest to develop new skills and assume new or modified positions, or is external recruitment needed? q “In-demand” skills – What competition exists for future skills that are needed? Will the City need to recruit for these skills or develop them internally? q Job classification – Do presently used job classifications and position descriptions reflect future functional requirements and skills?

Action Plan BUSINESS DRIVERS/THREATS/ OPPORTUNITIES PROCESS/PEOPLE/BUDGET IMPACT 1. Resignation of employee 1. Document key work processes (PATS) 2. Determine interim people and work impact 3. Evaluate replacement – FT/PT/Outsource 2. Retirement of tenured employee 1. Don’t replace – change scope of two other key team members and adjust pay to reflect additional responsibilities 1. Document key work processes (PATS) 2. Train two team members on Step # 3 – Use this slide to describe the actions you employment law will need to take 3. Begin online application process

Department Organizational Chart FYxx Organizational Chart Step # 4 – Use this slide to outline your current FY and next FY org structure. Fyxx Organizational Chart

Business Plan – Staffing and Budget Chart FY 13 (Budgeted) FY 12 (Estimated) 6 6 Funded Staff Positions 1 QTR 2 QTR CHANGES (+/-) 6 FY 13 (Budgeted) Operating Budget $564, 523 FY 11 (Actual) 6 3 QTR 6+1 FY 12 (Estimated) $673, 181 4 QTR 6 -1 FY 11 (Actual) $699, 266

Next Steps � Begin Strategic Planning � Meet with HR and Budget as needed � Submit Business Plan in September � Review Business Plan with KBE and Staff � Implement Plan! � Adjust and Adapt as Change Occurs

Appendix

SWOT Analysis Strengths Weaknesses Opportunities Threats

Deployment Model Step 1 – Supply Analysis Consider: Step 2 – Demand Analysis Consider: Step 3 – Gap Analysis Consider: Step 4 – Strategy Development Plan:

Action Plan BUSINESS DRIVERS/THREATS/ OPPORTUNITIES PROCESS/PEOPLE/BUDGET IMPACT

CITY OF GERMANTOWN STANDARD OPERATING PROCEDURES ISSUED: May, 2013 EFFECTIVE: May, 2013 WORKFORCE PLANNING PURPOSE This procedure describes the standardized process Department Heads follow to translate strategic initiatives of the business into a comprehensive workforce plan. The workforce plan is described in the Business Plan. SCOPE AND APPLICABILITY City Administrator, Department Heads, Budget and Finance REQUIREMENTS/MATERIALS NEEDED TO PERFORM TASK Business Plan Template, Teaching Tool Handout RESPONSIBILITY Workforce Planning is initiated by Department Heads as they plan the work in their respective areas for the next fiscal year, restructure based on departing employees or restructure due to changing business drivers. Department Heads will complete the analysis with input of Finance and Budget, along with Human Resources. The prepared documents are to be reviewed and approved by the City Administrator and staff. PROCEDURES As a fiscal year nears closing, Department Heads should begin the process of analyzing strategic business initiatives to carry over into the new fiscal year, as well as consider the business drivers (internal, external, customer driven) that will influence that department’s priorities over the next fiscal year. As the work is prioritized, managers should use the Workforce Planning Deployment Model as the key tool to assess skills and resources needed to accomplish the priorities. With that should be consideration of skills and capacity of existing staff, as well as future skill gaps needing to be filled that will be critical to accomplishing the business priorities. Consideration of staffing needs - full time equivalents, part time, seasonal or outsourcing are all forms of resource analysis that should occur.