webinar: rightsizing for profitability
DESCRIPTION
TRANSCRIPT
Presenters:
Shari Cooper, CHRP Michelle Arthurs, CHRP
Right-Sizing for Profitability in ANY Economy
What you will learn today
• So what is Right-sizing?
• What is Strategic Workforce Planning?
• Critical Link?
• Key Metrics – Measuring success
• Case study
A little bit about Pivotal
Experience: 25+ years/ Private/ Canadian
Market Position: broadest range of HR solutions
»Outsourced HR management»HR assessments»HR Help Desk»HR projects»Outsourced payroll management»Recruiting
“Some people dream of success... while others wake up and work hard at it.”
Author Unknown
Why Rightsize?
What is Right-sizing?
Its more than just Down-sizing:– Downsizing or Upsizing– Redesigning processes and systems– Eliminating or adding functions– Includes HR, Capital, Financing, Supply Chain– Reshaping the entire organization
OPTIMIZATION • LEAN ORGANIZATION • REVITALIZATION • RENEWAL • REINVENTION • TOTAL ORGANIZATIONAL PERFORMANCE
Before you can “Right-size”…
Rightsizing
STRATEGIC PLANNING
“If one does not know to which port one is sailing, no wind is favorable.”
Lucius Annaeus Seneca
Strategic Plan
Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.
-Wikipedia
A Critical Link….
Strategic Planning
WORKFORCE PLANNING
Workforce Planning:
The right people…
The right place…
At the right time…
Doing the right thing…
“Right sizing”
“If you don’t drive your business, you will be driven out of business.”
B.C. Forbes
Workforce Planning Steps:
1. Desired End State (Future Workforce Profile)
2. The. “O.T.” of S.W.O.T
3. Current Workforce Profile
4. Identify the gaps
5. Closing the gaps
6. Measure
7. Evaluate & Adjust
Step 1: Desired End State
Key Questions:
– Vision of future business
– Identify Critical roles
– Current capability/capacity
– Identify Critical resources
– People budget
Step 2: Environment Scan
Outside of the Organization• Opportunities to be Leveraged:
• Threats to be considered– Political
– Economic (Currency, Resource prices)
– Competitor
– Environmental
– Cultural
Step 3: Workforce Profile
• Talent / Skill sets • Competencies• High Potential Pool• Performance Levels
• Geographic Location• Flexibility / Mobility• Culture• Demographics
WHAT YOU HAVE vs.
WHAT YOU NEED
Steps 4: Gap Analysis
• Identify gaps Workforce Profile Current vs. Future
• Address via HR Strategies
Strategies to Address Gaps:
Step 6: Short-term Measures
Succession Plan Milestones (SMART Goals):
• Identify critical roles & competencies
• Identify high potentials (Hi-Pos)
• Create development program for Hi-Pos
• Communicate program and obtain commitment
• Periodic audit to ensure desired results
Step 6: Long-term Measures (KPI’s)
Business Metrics: Balanced Scorecard
• Financial (Net Profit, Gross Margin, EBITDA)
• Internal Process (# of defects, labour productivity)
• Organizational Learning (Training $/ee, Avg employee performance scores)
• Customer (satisfaction survey, retention, referrals)
Step 6: Long-term Measures (KPI’s)
HR Metrics:
• # of Succession Plans
• Turnover / Retention
• Employee Engagement
“Effective leadership is putting first things first. Effective management is discipline, carrying it out.”
Stephen Covey
Case study: ABC Co.
Business: Education related Software products and services
Location: Burlington, ON
Incorporated: 1986
Client Base: school districts, consortiums and state departments of education in Canada and the U.S.
Case study: ABC Co.
Steps: Considerations:
Desired End State
• Increase North American market share by 25% • Achieve 20% Revenue increase via international expansion•Requires Multilingual capabilities
Environmental Scan
•Increased global competition from multilingual software providers•Decreased trade barriers•Low interest rates….good time to borrow money for expansion
Steps: Considerations:
Current State
•English only capability:• software programming • service, documentation• Sales
•Diversity and Performance Standards not reflective of international business model•Compensation strategy does not support end state•Sales resources focused on N. America only
Case study: ABC Co.
Steps: Considerations:
HR Gaps
Develop plans to address:
•Talent Acquisition
• Java Programming Skills
• Multilingual competencies
• Outsource capabilities not found internally
•Re-training/development of current staff
•Revise Comp strategy to reward new skills &
•New Performance Management tool
Case study: ABC Co.
Steps: Considerations:
Plan and Execute Tactical
Milestones
1. Acquire talent – multilingual, sales
2. Develop in-house competencies through T&D
3. Divest talent not aligned with future goals
4. Redevelop Compensation plan to align with new talent/skill set
5. Redevelop Performance management program to align with new expectations
6. Redeploy Sales efforts into target market
Case study: ABC Co.
Steps: Considerations:
Measure KPI’s & Adjust
•Are we meeting the required tactical milestones?
•Are the budgets on track?
•Is the talent that we hired meeting expectation?
•If not, adjust actions to achieve Milestones
Case study: ABC Co.
Outcomes: • ABC sold it’s first multilingual application into
the United Arab Emirates – Abu Dhabi
• This provides the gateway to the large profitable market of Saudi Arabia
• ABC accomplished it’s “Stated End Goals” by Right-sizing to accomplish its Strategic Plan
Case study: ABC Co.
Next Steps: • Continue to monitor, measure and adjust
Workforce Strategy if needed
• Ensure maximum profitability by having …
Case study: ABC Co.
Summary: ABC Co.
The right people…The right place…
At the right time…Doing the right thing…
“Right sizing”
“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”
Colin Powell
Questions?
www.pivotalsolutions.com
Call Shari Cooper or Michelle Arthurs at
905.890.8558