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