Workforce PlanningStrategic Workforce Planning is the business process for ensuring that an organization has suitable access to talent to ensure future business success. Access to talent includes considering all potential access sources (employment, contracting out, partnerships, changing business activities to modify the types of talent required, etc. By talent is meant the skills, knowledge, predisposition and ability to undertake required activities including decisions making. Strategic Planning considers the business risks concerning insufficient, disrupted, mis-deployed talent on the organization's business priorities. Strategic Workforce Planning is analogous to the treasurer role which is concerned with ensuring the organization has suitable access to working capital. This role also looks at multiple sources for access and similar risks to those mentioned above. One of the more restrictive and potentially dangerous assumptions is that Strategic Planning is only about talent in the form of employees. Hiring is a strategy for accessing talent and will often be the superior one. However, the use of employees to meet talent needs carries with it unique risks that can be mitigated using alternative access sourcing arrangements. Regardless of the access source used, insightful assessment of the strategy's attendant business risk is prudent.
Succession Planning is a subset of Strategic Workforce Planning in that it considers two talent business risk event areas usually in executive roles. First, the sudden loss of an incumbent (illness, resignation, etc.). Second, to meet longer term anticipated turnover by having a "pool" or "designate" ready, willing and able to fill the vacated role. Succession Planning has had a checkered history in business for several reasons. First, holds a static view of the world, it looks at future needs (the second risk above). Unfortunately, necessary roles evolve and change over time, hence the pool or designate can be come deficient in some critical talent area or other. Another issue is when the designate approach is taken - this can establish morale and performance issues that unnecessarily feed the organization's politics. Also, it is quite common that when a role is vacated, the organization wants to test the broader market place for talent and often shows a preference for external hires. If this happens frequently enough it too can lead to disruptive effects within the organization. On balance, Succession Planning can be very effective as a "contingent" plan when a vacancy appears. This provides the organization time to think through its longer term needs.
The process for starting out Strategic Workforce Planning is link with the organization's strategy. This means identifying the critical talent needs that if not met can materially adversely impact business success. Once the business risks are fully appreciated then attention turns to schedule and timing. Assessing current internal capability and assessing its relative position when it will be called upon in the future. Speculating on future sourcing options and identifying the preferred sourcing option. Implementation and execution follow. Attention to periodically reviewing the "sanity" of the current plan is prudent. One area that seems to receive little attention is the issue of metrics that support Strategic Workforce Planning. To the degree an organization can identify and establish relevant leading indicators can provide significant benefits - the benefits arising out of lead time. Having lead time, always provides additional options in action, a surprise, typically diminishes options. There is a cost to having lead time and this is balanced against the value of having additional options on the table. As a general rule, an effective leading indicator does not tell you what the future will be, it suggests that is more likely to be. Hence one of the early actions arising out of a leading indicator flag is to undertake closer investigation to size up the likelihood of the possible event.
Succession Planning is a subset of Strategic Workforce Planning in that it considers two talent business risk event areas usually in executive roles. First, the sudden loss of an incumbent (illness, resignation, etc.). Second, to meet longer term anticipated turnover by having a "pool" or "designate" ready, willing and able to fill the vacated role. Succession Planning has had a checkered history in business for several reasons. First, holds a static view of the world, it looks at future needs (the second risk above). Unfortunately, necessary roles evolve and change over time, hence the pool or designate can be come deficient in some critical talent area or other. Another issue is when the designate approach is taken - this can establish morale and performance issues that unnecessarily feed the organization's politics. Also, it is quite common that when a role is vacated, the organization wants to test the broader market place for talent and often shows a preference for external hires. If this happens frequently enough it too can lead to disruptive effects within the organization. On balance, Succession Planning can be very effective as a "contingent" plan when a vacancy appears. This provides the organization time to think through its longer term needs.
The process for starting out Strategic Workforce Planning is link with the organization's strategy. This means identifying the critical talent needs that if not met can materially adversely impact business success. Once the business risks are fully appreciated then attention turns to schedule and timing. Assessing current internal capability and assessing its relative position when it will be called upon in the future. Speculating on future sourcing options and identifying the preferred sourcing option. Implementation and execution follow. Attention to periodically reviewing the "sanity" of the current plan is prudent. One area that seems to receive little attention is the issue of metrics that support Strategic Workforce Planning. To the degree an organization can identify and establish relevant leading indicators can provide significant benefits - the benefits arising out of lead time. Having lead time, always provides additional options in action, a surprise, typically diminishes options. There is a cost to having lead time and this is balanced against the value of having additional options on the table. As a general rule, an effective leading indicator does not tell you what the future will be, it suggests that is more likely to be. Hence one of the early actions arising out of a leading indicator flag is to undertake closer investigation to size up the likelihood of the possible event.


