Let’s play a game of strategy, not with chess pieces, but with something far more exciting – workforce planning!
Yes, you heard that right, “exciting” and “workforce planning” in the same sentence. As a strategic executive HR consultant, I have seen firsthand how mapping out your workforce can be as thrilling as a game of strategy. Below are some tips to consider as you learn to master the art of workforce planning, and why it’s crucial to your strategy.
The Workforce Planning Process: A Game of Five Steps:
- Analyzing Your Troops (Analysis of Current Workforce)
Imagine your workforce as a band of superheroes. Each has unique powers (skills), quirks (competencies), and missions (roles). The first step? Understand your squad! Who excels at swooping in to solve last-minute crises? Who’s the mastermind planning the next big move? This isn’t just about counting heads; it’s about knowing their strengths and weaknesses.
Example: Zappos
At Zappos, it’s not just about selling shoes; it’s about wowing customers. They realized early on that their customer service heroes were their frontline warriors. By analyzing their skills and needs, Zappos continuously adapts its training programs, ensuring every team member is ready to deliver exceptional service.
- Peering into the Crystal Ball (Forecasting Future Needs)
Now, let’s dust off that crystal ball and peer into the future. What does the realm of your business look like? Are there dragons (market trends) to slay or new territories (markets) to explore? Forecasting is about predicting what skills, positions, and superpowers you’ll need to conquer these future challenges.
Example: Netflix
Netflix, the entertainment juggernaut, constantly forecasts shifts in consumer behavior and technology. This foresight has led them to evolve from a DVD rental service to a global streaming powerhouse, always one step ahead in their workforce planning game. Blockbuster? They must have had a cloudy crystal ball.
- Spotting the Gaps (Gap Analysis)
Here’s where you play detective. What’s missing in your superhero lineup? Maybe you need a tech wizard to handle the latest gadgetry or a bilingual negotiator for overseas missions. Identifying these gaps helps you figure out what’s needed to fill them.
Example: Apple
Think of Apple during its iPhone development phase. They needed specific expertise in smartphone technology and user experience design. Recognizing these gaps early on helped Apple recruit the right talent, leading to the creation of one of the most revolutionary products in history.
- Charting the Quest (Developing Action Plans)
You’ve spotted the gaps; now it’s time to draw the map for your quest. This means strategizing on how to attract new talent (the recruitment spell), train existing members (the skill-up potion), and perhaps even restructure teams (the team shuffle dance). It’s about creating a concrete plan to transform your workforce into an unbeatable league.
Example: Google
Google’s action plans often involve creating innovative work environments and learning opportunities. They don’t just attract top talent; they keep them engaged and constantly learning, ensuring their army is always ahead of the curve.
- The Adventure Continues (Implementation and Monitoring)
Plans are great, but action is better. Roll out your strategies and keep a keen eye on their progress. Is the recruitment plan working? Are the team members leveling up? Adjust your strategies as you go, because in this game, the only constant is change.
Example: Amazon
Amazon’s implementation of workforce plans is a tale of constant innovation. From automating warehouses to upskilling employees in tech roles, they continuously monitor and tweak their strategies to stay at the forefront of e-commerce.
Why Workforce Planning is as Essential as Morning Coffee
Now, why bother with all this? Simply put, workforce planning is your elixir for business health. It ensures that you’re not just reacting to changes but actively preparing for them. It’s about having the right people, with the right skills, at the right time – a trifecta that can mean the difference between soaring high or crashing down.
Case Study: WeWork
A notable example of a company that faced challenges due to rapid growth and insufficient workforce planning is WeWork. WeWork, a commercial real estate company that provides flexible shared workspaces, experienced a period of explosive growth in its early years. However, this rapid expansion led to several issues related to workforce planning and operational management.
Key issues faced by WeWork included:
1. **Overexpansion**: WeWork grew its workforce and physical locations at an unsustainable rate. This rapid expansion led to difficulties in managing and integrating new employees, as well as challenges in maintaining the quality and consistency of its services across its numerous locations.
2. **Cultural Challenges**: The rapid influx of new employees can dilute a company’s culture and values. WeWork struggled with maintaining a consistent culture and set of operational practices across its expanded workforce, which impacted employee morale and productivity.
3. **Resource Allocation**: With the company’s focus on aggressive growth, resources such as training and support for new employees were stretched thin. This lack of support hampered the ability of staff to effectively perform their roles and deliver the level of service expected.
4. **Financial Strain**: The rapid expansion significantly increased operational costs. The company’s financial sustainability came into question, as it was spending heavily on new leases, renovations, and employee salaries without a proportional increase in revenue.
5. **Leadership and Strategy Issues**: The leadership’s aggressive growth strategy and lack of attention to detailed workforce planning led to strategic missteps. There was a disconnect between the pace of expansion and the company’s ability to manage it effectively.
As a result of these issues, WeWork faced significant operational and financial challenges, leading to a failed IPO attempt in 2019. The company had to undergo substantial restructuring, including workforce reductions and a scaling back of its expansion plans, to stabilize its operations and financial situation.
WeWork’s experience serves as a cautionary tale about the risks of rapid expansion without adequate workforce planning and the importance of aligning growth strategies with operational capabilities.
Workforce planning might not be your traditional game, but it’s a game all the same – one where strategy, foresight, and adaptability are key. By embracing these steps and understanding their importance, you can turn the often-dreaded task of workforce planning into an exciting journey towards business success. So, are you ready to play?
Need help to navigate workforce planning? Hiring an external HR consultant can help you see gaps in your business you didn’t know existed and can help your company better plan for the future. Reach out to lisa@larcohr.com to book a discovery call.
