Workforce Analysis:
Human Capital Findings at the
Program Support Center
May 17, 2005
Agenda
• Part I – Program Support Center (PSC) Overview
and the Case for Workforce Analysis
• Part II – Overview of the Human Capital
Development Framework (HCDF) Process
• Part III – HCDF Findings for the Program Support
Center
• Part IV – PSC’s Action Plan
2
Part I – Program Support Center
Overview and the Case for
Workforce Analysis
About the Program Support Center (PSC)
Mission:
The PSC is the Shared Services Provider for the U.S. Department of Health and
Human Services (HHS). As such, the PSC provides a full range of support
services to HHS and other Federal agencies, allowing them to focus on their core
mission.
Offerings:
The PSC provides over 50 products and services in the areas of:
– Administrative Operations
– Human Resources
– Federal Occupational Health
– Strategic Acquisitions
– Financial Management
Characteristics:
The PSC is a $500M organization with approximately 1000 employees. It was
made a “fee-for-service” entity in 1995 so receives no budget and must cover its
own costs through customer revenue. As such, its culture has become very
business-oriented.
4
Workplace Changes
In 2002, six years after becoming FFS, the Program Support Center began an
intensive “Workplace Modernization” effort which included:
• Business Process Reengineering (Business Case Analyses)
• Changes to Costing, Pricing and Billing
• Manager Empowerment
• Benchmarking Best Practices
• Performance Logic Model (Performance Standards and Metrics)
• Service Level Agreements
• Office of Business Technology Optimization
5
The PSC Business Architecture
Focus between
2002 and now
Focus between
2003 and now
BUSINESS
•
•
•
•
•
•
•
Business Case Analysis
Customer Relationship
Management (CRM)
Benchmarking
Key Performance
Indicators
Capital Investment
Cost Management
Internal and External
Communication
WORKFORCE
•
•
•
•
•
Organizational Design /
Development
Skills / Competencies
Training
Recruitment and
Retention
Performance
Management
TECHNOLOGY
•
•
•
•
•
•
•
•
Development
Execution
Operations
Interfaces
Security
Database Mgmt
Technical Support
Integrated Governance
6
Why Conduct a Workforce Analysis?
•
Focus on reengineering and
reinventing our business
processes demanded an analysis
of our workforce capabilities
•
Directly links to the President’s
Management Agenda Goal –
Strategic Management of Human
Capital
•
Aligns with the PSC Strategic Plan
Goal – to be an Employer of
Choice
•
Ensure that we are focused on
identifying the skill and knowledge
requirements needed to achieve
our strategic goals, especially as
the way we do business changes
•
Identify whether we have the right
resources in place to enable
employees to not only perform
their functions, but do them well
•
Prepare the organization to deal
with loss of critical employees.
7
What Approaches Were Considered?
•
Alternative 1: Consultant Analysis – Conduct interviews with managers and
staff to collect data on roles, skills, current training opportunities, workforce
issues and trends, followed by a series of deliverables that compiled the
data and identified strategies
•
Alternative 2: Manager Workshops – Hold a series of interactive workshops
to train managers on how to assess their workforce themselves, identify
needs or gaps, and develop strategies
•
Alternative 3: Diagnostic Tool – Utilize Accenture’s Human Capital
Development Framework (HCDF) to assess the organization’s maturity and
effectiveness in critical human capital processes and focus resources on
shortcomings.
8
The Selected Approach
Alternative 3: Accenture Human Capital Development Framework
Why?
ƒ
The HCDF provides factual data about the effectiveness and maturity of our
human capital processes in several areas and at multiple tiers within the
organization.
ƒ
The HCDF takes input from all levels of the workforce, including employees,
managers, executives, and Human Resources.
ƒ
We needed to narrow down what we needed to work on and the HCDF
would help us zero in on the areas needed the most work, making the most
of our limited resource. It was not going to tell us what to do, but rather
where to start.
9
Questions on Part I?
10
Part II - Overview of the Human
Capital Development Framework
Process
High Performance organizations are
characterized by leading edge human
capital capabilities.
High Performance
Framework
Human Capital
Capabilities*
Market
Focus
Workforce
Adaptability
High
Performance
Anatomy
Leadership
Capability
Employee
Engagement
Talent
Management
Ability to
Change
Distinctive
Capabilities
Human Capital
Efficiency
Workforce
Performance
* Tier 3 of Accenture’s Human Capital Development Framework
12
High performance organizations identify what
capabilities they need to master, focus energy and
resources on those areas, and measure achievement
and impact on business results.
Employee Engagement
Pioneering
Illu
Leadership Capability
Progressive
st
ra
tiv
e
Basic
Workforce Adaptability
Ability to Change
Human Capital
Efficiency
Talent Management
Workforce Performance
The key is in understanding the levers that help achieve excellence in these areas
as well as anticipating the people and technology ‘walls’ that will prevent mastery
13
and making cost-effective investment to address those barriers
The Accenture Human Capital Development
Framework measures how well the organization is
mastering these Human Capital Capabilities.
Business Results
Revenue
Growth
ROIC or
ROE (FS only)
Tier 1
Total Return to
Shareholders
Future Value
Illustrative Business Results Tier 1 was not used for PSC
Key Performance Drivers
Productivity
Quality
Innovation
Tier 2
Customers
Human Capital Capabilities
Leadership
Capability
Workforce
Performance
Ability to
Change
Tier 3
Employee Engagement
Workforce
Adaptability
Talent
Management
Human Capital Processes
Human Capital
Efficiency
Tier 4
Competency
Management
Career
Development
Performance
Appraisal
Succession Planning
Recruiting
Workforce
Planning
Workplace
Design
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Learning
Management
Knowledge
Management
Change
Management
Human Capital
Infrastructure
14
Human performance mastery is achieved by
aligning many human capital programs.
Business Results
Revenue
Growth
ROIC or
ROE (FS
only)
Tier 1
Total Return
to
Shareholders
Future Value
Illustrative Business Results Tier 1 was not used for PSC
Key Performance Drivers
Organizations
have the
opportunity to
build Human
Capital
Mastery…
Productivity
Quality
Innovation
Tier 2
Customers
Human Capital Capabilities
Leadership
Capability
Workforce
Performance
Ability to
Change
Tier 3
Employee
Engagement
Workforce
Adaptability
Talent
Management
Human Capital Processes
…through the
alignment of
programs that
improve overall
workforce
performance
Human
Capital
Efficiency
Tier 4
Competency
Management
Career
Development
Performance
Appraisal
Succession Planning
Recruiting
Workforce
Planning
Workplace
Design
Rewards and
Recognition
Employee
Relations
Human
Capital
Strategy
Learning
Management
Knowledge
Management
Change
Management
Human
Capital
Infrastructure
15
A detailed report is provided showing human capital
scores, benchmark comparisons, strengths and
opportunity areas.
The survey results include two dimensions: a maturity/effectiveness
score and a benchmark score relative to the existing Accenture database
of companies (for Tier 3 & 4) and industry averages (for Tier 2).
Effectiveness
2.8
& Maturity
Score
High
5
Benchmark Score
Top
Quartile
3
1
Bottom
Quartile
Low
Example:
Succession 2.4
Planning
2.7
Learning
Management
Competency 3.2
Management
16
The Accenture Human Capital Development
Benchmarking Database
Prior to the PSC implementation, the benchmarking database consisted of
approximately 35 organizations across 16 companies, across industries. In the
future, our goal is to benchmark within industries.
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
Staffing firm
Motorcycle manufacturer (Harley-Davidson)
Professional services engineering/construction firms (2)
Equipment manufacturer (Briggs and Stratton)
Canadian utility
South African utility (Eskom)
Spanish utility
Software company (SAP America)
Mobile phone manufacturer
Government administration agency
Government defense agency
Investment bank
Insurance company
Retail/commercial bank
Health insurance provider
17
Data is collected from stakeholders
throughout the organization.
Accenture Human Capital
Development Framework
Executive Team:
HR Center:
Business Results
Interviews
Revenue
Growth
Tier 1
ROIC or
ROE (FS only)
TRS
Future Value
Tier 2
Key Performance Drivers
Productivity
Quality
Innovation
Customers
Human Capital Capabilities
Leadership
Capacity
Workforce
Performance
Interviews,
HR Metrics,
Maturity
Surveys
Tier 3
Ability to
Change
Employee Engagement
Workforce
Adaptability
Talent
Management
Human Capital
Efficiency
Workplace
Design
Human Capital
Infrastructure
Tier 4
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal
Succession Planning
Recruiting
Workforce
Planning
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Learning
Management
Knowledge
Management
Change
Management
Cross-section of
Employees:
Division
Directors:
Effectiveness
Surveys
Maturity
Surveys
18
Questions on Part II?
19
Part III - Human Capital
Development Findings for the
Program Support Center (PSC)
Executive Interview Themes
Top Strategic Objectives :
– Improve organizational effectiveness and reduce costs
– Develop and sustain a high performing and qualified workforce
– Develop customer relations programs
Areas for Improvement Recommended by Executives:
– Attract and recruit a talented workforce using effective recruiting
processes and technology
– Conduct thorough workforce analysis and planning
– Provide PSC employees with a formal career development program
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The Talent Imperative
1. The U.S. Economy is recovering and competition for talent is
increasing.
–
Accenture found that “….companies needed to avoid becoming complacent in the talent
area because an improving economy - the roots of which were appearing in 2003 - would
spur unhappy employees to look elsewhere for opportunities.” (Accenture, 2004)
2. PSC needs to drive productivity but has employee engagement issues
which could affect the current talent pool.
–
Based on employee satisfaction surveys, more than half of PSC employees have negative
or neutral feelings about their jobs and less than half are completely committed to staying
with the organization for at least 2 years.
3. Customer satisfaction is PSC’s most critical Tier 2 performance
objective and employee engagement is a key driver of this.
–
–
“In the ‘Service Profit Chain’ study, employees’ perceptions of their capabilities,
satisfaction, and length-of-service were correlated with customer satisfaction.” (Corporate
Executive Board, 2003)
“Numerous studies support the idea that there exists a link between employee satisfaction
and customer satisfaction, productivity, and financial results.” (Corporate Executive Board,
2003)
Accenture High-Performance Workforce Study – 2004
Corporate Executive Board - Linking Employee Satisfaction with Productivity, Performance and Customer Satisfaction - 2003
22
PSC Overall Scorecard
Key Performance Drivers
3.5
Productivity
3.5
Quality
Tier 2
2.9
3.7
Innovation
Customers
Tier 3
Human Capital Capabilities
3.4 Workforce 3.6 Employee 3.9
Leadership
Capability
Performance
Engagement
3.4
Workforce
Adaptability
3.2 Talent
Ability to
Change
3.3
Management
Human Capital Processes
Tier 4
3.4
3.1
2.5
Competency Career
Performance
Management Development Appraisal
Succession
Planning
Rewards 2.9
and
Recognition
2.7
Learning
Management
Effectiveness 5
& Maturity
Score
3
High
1
Low
Employee3.1
Relations
Benchmarking
Ranking
Human 2.4
Capital
Strategy
Human 2.7
Capital
Efficiency
2.5
3.0
Recruiting
2.6
Workforce
Planning
3.2
Workplace
Design
3.8
2.8 Human
Knowledge3.0 Change
Capital
Management Management
Infrastructure
Top Quartile
Bottom Quartile
23
Human Capability (Tier 3) Importance rating
by Service Directors compared to overall
Effectiveness score
Leadership Workforce
Employee
Capability Performance Engagement
Workforce
Adaptability
Ability
to Change
Talent
Management
Human Capital
Efficiency
Importance
5.0
3.6
4.4
4.1
3.9
4.0
3.7
Effectiveness
3.4
3.6
3.9
3.4
3.2
3.3
2.7
Gap
(1.6)
0
(0.5)
(0.7)
(0.7)
(0.7)
(1.0)
24
We have identified some statistical relationships
between some Tier 4 processes and Tier 3 capabilities
(correlations).
Tier 1
Leadership Capability
Tier 2
Key Performance Drivers
Productivity
Quality
Innovation
Customers
Tier 3
Human Capital Capabilities
Leadership
Capability
Workforce
Performance
Ability to
Change
Employee Engagement
Workforce
Adaptability
Talent
Management
Human Capital
Efficiency
Tier 4
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal
Succession Planning
Recruiting
Workforce
Planning
Workplace
Design
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Learning
Management
Knowledge
Management
Change
Management
Human Capital
Infrastructure
Indicates the Tier 4 processes that are correlated
Indicates Tier 4 processes that we believe are correlated, but have not yet been proven.
Low scoring process
25
We have identified some statistical relationships
between some Tier 4 processes and Tier 3 capabilities
(correlations).
Employee Engagement
Tier 2
Key Performance Drivers
Productivity
Quality
Innovation
Customers
Tier 3
Human Capital Capabilities
Leadership
Capability
Workforce
Performance
Ability to
Change
Employee Engagement
Workforce
Adaptability
Talent
Management
Human Capital
Efficiency
Tier 4
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal
Succession Planning
Recruiting
Workforce
Planning
Workplace
Design
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Learning
Management
Knowledge
Management
Change
Management
Human Capital
Infrastructure
Indicates the Tier 4 processes that are correlated
Indicates Tier 4 processes that we believe are correlated, but have not yet been proven.
Low scoring process
26
Key Opportunity Areas
The HCDF identified the following areas as needing attention in the
Program Support Center:
‰ Human Capital Strategy
‰ Performance Appraisal
‰ Workforce Planning/Recruiting
‰ Rewards and Recognition
‰ Learning Management
‰ Succession Planning
‰ Career Development
‰ Change Management
27
Questions on Part III?
28
Part IV - PSC’s Action Plan
Proposed Human Capital Initiatives
Human Capital Strategy:
ƒ Develop a “people vision” and strategic plan for creating, developing, and
retaining your workforce (identifying necessary tools and processes to support
the workforce).
Workforce Planning and Recruiting:
ƒ Develop and implement a process for forecasting workforce needs across all
Service areas based on changing business needs.
ƒ Develop and implement a new/replacement FTE Justification Process.
ƒ Document and publish the recruiting processes to develop a common
understanding of how the process works and the related roles and
responsibilities.
ƒ Collect feedback on the Quick Hire user experience and share with HR.
ƒ Examine and improve selection tools and techniques to better identify and
select candidates with the right skills. (i.e. Interviewing and Decision-Making
Techniques)
30
Proposed Human Capital Initiatives
Learning Management, Career Development and Performance Appraisal:
ƒ Review existing HHS core competencies and develop PSC core competencies.
ƒ Ensure that training is available to develop core competencies in PSC
employees.
ƒ Map PSC-wide core competencies to performance appraisal criteria.
ƒ Develop career paths for all PSC jobs.
ƒ Implement and educate employees about Individual Development Plans (IDPs)
with identified roles, skills and job-specified training requirements.
ƒ Develop programs to support career development (i.e. Career
Counseling/Mentoring).
ƒ Define job specific training plans for all PSC jobs.
Rewards and Recognition:
ƒ Add “Exceptional” (4th level) rating to Performance Appraisals.
ƒ Develop guidelines to objectively allocate cash awards.
ƒ Develop a manager’s guide which provides tips and tools on how to
recognize/reward employees.
31
Proposed Human Capital Initiatives
Succession Planning:
ƒ Identify critical leadership roles and related skills.
ƒ Develop an approach for replacing critical leadership roles.
ƒ Train managers on coaching skills so that they can develop employees to fill
critical roles.
ƒ Re-examine the Emerging Leader Program (ELP) opportunities within the PSC
to ensure that roles are well structured, interesting and provide a positive and
fulfilling experience.
ƒ Determine ways to utilize SES candidates to fill critical positions.
Change Management:
ƒ Advertise the Innovation Council to PSC employees as a mechanism for
implementing change initiatives and providing ideas to leadership.
ƒ Develop standard methods to plan and execute change initiatives across the PSC.
ƒ Continue implementation of the PSC Internal Communications Program.
32
Prioritization of PSC Human Capital Initiatives
Time and resources are not available to do everything now. The PSC
Executive Team was asked to rank each proposed initiative by Level of
Effort and Expected Impact.
Low
Prioritization Grid
0
1
Level of Effort
High
15
22
21
20
2
3
5
4
24
23
10
11 17
6
19 188
3
9
16
14 4
13 13
2 7 7
2 1
1
18
12 12 8
11 6 19
17
4
14
10
5
9
23 24
16
3
20
21
22 15
5
6
7
8
9
10
0
1
2
3
4
5
6
7
Low
8
9
10
High
Expected Impact
33
PSC Planned Human Capital Initiatives
The Initiatives with the highest expected impact and manageable level of effort
were selected for implementation in the short term, beginning immediately.
• Develop and implement the FTE Justification Process
• Develop and implement Rewards and Recognition Policy and Tools
• Add “Exceptional” rating to Performance Appraisals
• Identify critical leadership roles and skills and develop an approach for
replacing critical leadership roles
• Continue implementation of the PSC Internal Communication Program
• Buy/Build training to develop core competencies in PSC employees.
• Develop a training philosophy for the PSC
• Better utilize the Innovation Council as a mechanism for implementing
change initiatives and providing ideas to leadership
• Implement Individual Development Plans (IDP)
34
Lessons Learned
•
Major changes in work or business processes have a ripple effect on
the workforce that must be managed in order to maximize the benefits
from those changes.
•
Support for a workforce analysis and implementation of initiatives to
address deficiencies and gaps must be strong at the highest levels of
the organization.
•
Every organization likely has more opportunities to improve than it has
resources to do so – Using a tool to focus on areas of weakness and
evaluating initiatives based on impact vs. effort is most efficient.
•
Communication of the analysis and management’s plans to address
issues is critical to employee support and increased morale.
35
Questions on Part IV?
36