Does this seem a really crazy idea? How can you manage tomorrow’s workforce today? What does this mean? Actually it means just that, it means planning today for the workforce that you are going to need tomorrow. Now that’s not such a stupid management idea is it? Isn’t that what “management” is about? Isn’t management about planning today for the future tomorrow? Yet somehow we have not gotten around to doing this for the Workforce. We worry only about today’s operational issues and problems. And yet the Workforce constitutes between 50% and 70% of our costs, and up to 80% of the organisation’s value! So, just how do we go about Managing Tomorrow’s Workforce Today?
In a recent blog, well actually it is more of a rant, by Dr Jac Fitz-enz, he says “Either Own the Table or get out of HR.” He points out what Lee Iacocca said twenty years ago – Lead – Follow – or Get Out of the Way. So where are you going to be on this, and how are you going to get there? Actually I think it’s more about … are YOU prepared to take responsibility and accountability for leading your organisation into the future? If not, then the rest of this post will not be of interest. If you are, then please read on and I hope that we can help you find a secure route to the future.
As Dr Jac said: “We have reached a point in the development of computer technology and predictive analytics where you can truly own the C-level table.” He went on to say “Right now, today, the minute you read this we can show you an integrated business model and a software package with which you can own the C-level table in your company. These tools exist. They have been tested here and abroad. You can introduce them into your company tomorrow. Use them and you will have the best data in your company; better than finance, sales or anyone.” Wow, is that not something to think about!
The kind of Workforce Intelligence to which he is referring is:
- Is the ROI on Human Capital higher than the ROI for other business capital (i.e., on working capital, invested capital)?
- Is workforce productivity increasing, decreasing or static? How are we performing versus peers?
- Where does our best talent come from? Which businesses or managers are the best talent scouts and coaches?
- Is internal mobility a source of value creation or of turnover and cost at the organization?
- Are leaders effectively managing our Human Capital? Is there a correlation between manager effectiveness and workforce engagement, performance and retention?
- How can we reduce the gap between our Ideal workforce and our real workforce.
- How can we project and quantify the cost of HR and Workforce decisions.
So, how do you get there – follow these steps
- First you need to develop the skills required to measure and analyze the workforce.
- Then you need an integrated business model that is developed specifically for Workforce Intelligence.
- Once you have the model in place, you need to source the data – much of the data required is already collected through various other activities, but it is not pulled together. So a specific skill is knowing what data to input to get meaningful results from the model, this can be tricky and you may well need some expert assistance with this.
- Then you drop the data into the integrated business model and watch the answers emerge.
- Finally – and here’s the second tricky bit, you need to run different scenarios and interpret the answers so that you get a complete picture of the future for better decision-making today.
OK, I hear you say, but you have other questions:
- What do we need to know about future human capital investments and how they will affect our organization? The process reveals what you must know and how to get it and we help you through that.
- Why do we want to know it? With this information (Workforce Intelligence) you are able to plan and manage the organisation’s talent in a way that leads to greater efficiency and profitability. Isn’t that what business needs today – efficiency and profitability!
- How much value can we create with this intelligence? The value will be many times the expense – in terms of cost reduction, customer delight and revenue generation.
- Once we have produced these leading indicator reports how can we use them in discussions with the C-level? Again, the process will help and guide you through this, and, of course, we will be there to help.
As Dr Jac said “If you really want to elevate the stature of HR in your company here is your chance.”
If you are ready to take the lead in your organisation and take the first step to “owning” the C-Suite table, contact us, and we will be only too happy to assist. Or better still, attend the workshops from the 23rd to the 26th July 2012 in Johannesburg.