Strategic Workforce Planning

1. Achieve Your Business Goals with
Strategic Workforce Planning
Name
Date

2. Agenda
 Key Trends and Issues
 Solution Overview
 Why SAP? Top Reasons
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3. External Pressures
Major 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. 4

4. Internal Pressures
Strategic Workforce Planning is essential for companies with…
…a high cost of human resources
 Examples: (Professional) Service Provider, IT, BPO
…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
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5. Challenges in Managing the Workforce on a Strategic Level
Management
 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
Human Resources
 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
HR IT
 Process is manual, ad-hoc, cumbersome, mostly operational and misaligned
 Inadequate tools to provide visibility into data
 Difficult to consolidate planning across the organization
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
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6. Manage Your Workforce to Achieve Your Business Objectives
 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?
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
© 2011 SAP AG. All rights reserved. 7

7. Agenda
 Key Trends and Issues
 Solution Overview
 Why SAP? Top Reasons
© 2011 SAP AG. All rights reserved. 8

8. 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  One time, point in time
 Long term outlook beyond two years  Next week, month, quarter, year
 HR history a starting point for simulations  HR analytics
 Key jobs driving and supporting strategy  Named resources
 Focused across the enterprise  Project demand
 Identifying and addressing talent gaps  Skill matching and workforce scheduling
 Driving HR strategy  Capacity planning & forecasting (HC/budget)
© 2011 SAP AG. All rights reserved. 9

9. Levels of Workforce Planning, Deployment, Management
Mid to Long Term Strategic Planning
Long term
workforce plan
Management Strategic Workforce Planning
HR Near Term Operational Planning
Business Planning & Consolidation Headcount, budget,
Line
Manager compensation change
Deployment Management
Project
Manager Project
Resource MRS HCM HR
Plan • Assignments • HR/Payroll
Resource • Scheduling • Talent Mgmt.
Manager • Utilization Line
•…
Manager
SWP
Operational Resource
Workforce Planning Management Workforce Demographics Simulation and Modeling
Bottom-Up: Plan detailed Staff projects based on skill Focus on future development Determine workforce supply
workforce demand on lower requirements, availability, of internal and external and demand for key jobs,
organizational levels and preferences workforce supply & demand and derive high level plans
and provide solutions
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10. Who is Involved in the Process?
!
Business Unit Strategy Department
Decides on long term Workforce Gives input regarding
workforce plan based Planner strategic drivers and
on given information Orchestrates, receives workforce
drives and monitors intelligence insights
workforce planning
initiatives and processes
HR €
HR Business Partner Finance
Consults with Business Gives input regarding
Units based on workforce financial figures and
intelligence and HR HR HR receives insights for
drives action plans as midterm financial
final deliverable from Corporate HR planning
the SWP process Recruiting, Staffing, Talent Management
and other HR functions support
execution of workforce action plans
© 2011 SAP AG. All rights reserved. 11

11. Key Building Blocks for Accurate Planning
 Company strategy is translated
STRATEGY
and executed in the strategic Integrated business
workforce planning process planning
 Business process covers related PROCESS
Deriv e
Analy ze internal Dev elop action plan Monitor progress &
strategic workforce
activities, with interfaces and Ensure process ownership
Analy ze Gaps
& external supply & handov er adjust process
demand
& governance.
dependencies to other
processes TOOLS
Systems to support
business needs.
 The business process is
supported by reporting, MASTER DATA
analyzing and planning tools
Required HR and Finance
data must be available and
 Accurate and complete data accurate.
produces the best possible plan
© 2011 SAP AG. All rights reserved. 12

12. Defined and Integrated Business Process is Key for Success
 Monitor progress and define  Analyze internal workforce
countermeasures in case of structure and dynamics
deviations (quantitative & qualitative)
 Lessons learned: improve Monitor  Analyze external workforce,
progress & labor market conditions,
execution processes, guidelines, Analyze
adjust process Analyze
database, etc. internal & demographics
workforce
external
supply
supply
Execute action plans: Develop Workforce
e.g. Business workforce plan, workforce Planning Strategic Input:
Training, Recruiting, Contractor action plans Process e.g. Business Strategy
Management, M&A, In-/Out- Derive
Derive
& handover Financial Strategy
Sourcing, Partner Management strategic
strategic Location Strategy
workforce
workforce M&A Strategy
demand
demand
 Derive operational targets
based on a decision framework:
Analyze gaps
 Hiring & retiring
 Translate business strategy
 Succession planning
into quantitative and qualitative
 Training
workforce demand
 In- / Out–Sourcing
 Contractor Management  Simulate various scenarios
 Identify and analyze gaps
 M&A
 Partner Management
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13. Analyze Workforce Supply
Demographics Projections
 Age and Retirement
 Gender, Ethnicity, Country of Origin
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14. Analyze Workforce Supply
Jobs driving and supporting strategy
 Employee or non-employee (contractor, intern)
 Employee or manager
 Years of service/seniority
Expendable
Core
Critical
Importance to driving the business
© 2011 SAP AG. All rights reserved. 15

15. 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. 16

16. Analyze Gaps
Supply and demand analysis and projections
 Internal supply
 Projected demand
 Market impact
– Availability
– Cost
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17. 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?
Engage
Develop Acquire
Human
Capital
Strategy
Retain Promote
© 2011 SAP AG. All rights reserved. 18

18. 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. 19

19. Transparency, Modeling and Simulation, Analysis,
Planning, Monitor
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
© 2011 SAP AG. All rights reserved. 20

20. 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. 21

21. Agenda
 Key Trends and Issues
 Solution Overview
 Why SAP? Top Reasons
© 2011 SAP AG. All rights reserved. 22

22. Why SAP BusinessObjects Strategic Workforce Planning?
Complete • Leverage data you
already have to build
Business plans and address your
Process future workforce needs
• Perform complex
Power of SAP calculations and
In-Memory simulations to model
the future of your
Computing workforce
Flexible and • Navigate through your
data to identify issues
Configurable and understand root
Analytics causes
© 2011 SAP AG. All rights reserved. 23

23. Thank You!

24. Appendix

25. In-Memory Computing with SAP
What is SAP HANA?
Applications BI Clients
 SAP HANA is a pre-configured appliance that
includes in-memory software bundled with
BICS
MDX
SQL
hardware
 Includes tools for data modeling, data and life
SAP HANA
modeling cycle management, security, operations, etc.
 Provides support for multiple interfaces
HANA’s Capabilities
SAP  Analyze information in real-time at
Business unprecedented speeds on large volumes of non-
Suite replicate aggregated data.
SAP HANA
 Create flexible analytic models based on real-
ETL
time and historic business data
Other Sources  Foundation for new category of applications
(e.g., planning, simulation) to significantly
outperform current applications in category
SAP BW
 Minimizes data duplication
© 2011 SAP AG. All rights reserved. 26