THROUGH TAKING A VIEW OF OUR FUTURE WORKFORCE REQUIREMENTS, MORE APPROACHES BECOME AVAILABLE TO US Identify where current internal pipelines will not be sufficient, and therefore where development programmes, such as graduate programmes and apprenticeships, need to be expanded. Develop new career paths for internal workers and influence the annual performance and career discussions by providing information to employees about future roles where a shortage has been identified. Develop new external candidates pools by improving the value proposition and employer brand. Move high performers in surplus areas to areas where a future shortage is expected, rather than making them redundant. Work or organization is redesigned: So that work can be done by workers with different qualifications and experiences. To maximise the output of roles where a shortage of talent is expected. Change the location of where the work is done in order to have access to the right talent. Adjust the business strategy because talent required is not available at a price that makes sense.

COMPREHENSIVE INTEGRATED PEOPLE PLANNING MODEL 01 02 03 04 DEMAND SUPPLY AND GAPS PEOPLE PRIORITIES PEOPLE PLANS INPUTS Organizational Strategy Internal Labour Market Futureproof leadership Priorities for: Communication Resourcing and Assessment Learning and Development Talent Pools and Succession Rewards Create an agile workforce Technology Changes and Consumer Demands External Labour Market and Rewards Practices Sustain performance Secure critical capabilities Economic, Business and Regulatory Environment Employee Research and Value Proposition Cultivate the EVP Design compelling careers OUTPUTS Needs Assessment Analysis of what is needed to execute the strategy re: Strategic Capabilities Culture Leadership Capacity Skills and Competencies Scenarios to understand implications of unknowns. Risk Assessment Report Analysis of what the organization currently has and opportunities, regarding: Strategic Capabilities Culture Leadership Capacity Skills and Competencies People Strategy Prioritization, costing and resourcing of short-, mid- and long-term people strategies Solutions & Ownership Ensuring the right quality and quantity of critical and high performing talent to deliver the future business strategy

UNDERSTAND THE ORGANIZATION IMPERATIVES WHAT IS THE STRATEGIC INTENT? Strategic Intent is what the organization wants to be (customers, growth, products/services, markets), and how the organization’s leaders plan to carry out that business. STEPS TO DETERMINE THE STRATEGIC INTENT DESKTOP REVIEW STAKEHOLDER INTERVIEW FUTURE VALUE ANALYSIS Purpose: to determine how the strategic intent will impact work, and as a consequence workforce requirements

UNDERSTAND THE ORGANIZATION IMPERATIVES WHAT ARE THE EXTERNAL DRIVERS OF CHANGE? A PESTEL analysis is a useful framework to analyse and monitor the macro-environmental factors and risks that will or may have an impact on the organization and its workforce.

Capability Descriptor Difficulty of implementation STRATEGIC CAPABILITIES Organizations needs to select the few strategic capabilities that will generate the greatest value and prioritize ruthlessly. Focusing on too many capabilities at once can spread its resources too thin and accomplish nothing. Capability Area Capability Descriptor Partner / Vendor Management Strategically manage vendors, ensure best services, optimise and manage performance Stakeholder Management (non-vendor) Influence stakeholders to manage perceptions and opportunities, enabling ABC to better manage future Client Engagement Facilitate accurate and timely benefits and pension payments; Apply critical understanding of human behaviour in transition to retirement Knowledge, IP & Insights Retention of IP and knowledge in increasingly complex stakeholder / vendor environment; consolidation of information and insights across functional domains Governance Framework Establishing and monitoring direction, strategy and controls Risk Management Understand, manage, calibrate and monitor risks appropriately Investment Management Capability to manage the risk strategy and outcomes of fund investment Resource Management Effective management of people, operations and assets Pricing Capabilities Systematic and clear pricing capability based on evidence, rather than “gut-instinct” high Partner / Vendor Management Knowledge, IP, Insights Pricing Capabilities Stakeholder Management Difficulty of implementation Client Engagement Risk Mgmt Investm. Mgmt Resource Mgmt Gov Framework low High Relative importance to the company’s strategy

CAPACITY SELECTING THE CRITICAL ROLES

CAPACITY - DEMAND SCENARIOS WHY DO WE USE SCENARIOS IN INTEGRATED PEOPLE PLANNING? Consider this conversation:      “HOW MANY ENGINEERS WILL WE NEED IN 5 YEARS TIME?” “IT IS NOT POSSIBLE FOR ME TO PREDICT THIS. IT DEPENDS.” HRBP, OPERATIONS DIVISION      VP, OPERATIONS DIVISION      For demand scenario development, we need to understand what it depends on.    

CAPACITY - DEMAND SCENARIOS SCENARIO DEVELOPMENT STEP 1: Identify factors that could impact the business in the future forecast period. STEP 2: Understand and group the factors to consider the top 3 to 5 factors that will have the biggest impact on the workforce needed (numbers and skills). STEP 3: For each major factor, define a set of outcomes. STEP 4: Identify and record any assumptions that underpin all of the scenarios. STEP 5: Validate results from workshop with key managers and ensure that factors are grouped together in a logical manner.

CAPACITY - DEMAND SCENARIOS SCENARIO DEVELOPMENT EXAMPLE – PROFESSIONAL SERVICES ORGANIZATION SCENARIO 1: LOW CHANGE SCENARIO 2: HIGH CHANGE Revenue growth 1% annual revenue growth 6% annual revenue growth Client type 90% corporate/ 10% individual 50% corporate/ 50% individuals Products and solution mix 85% annuity revenue/ 15% project revenue 50% annuity revenue/ 50% project revenue Automation and technology No adoption of new technologies Adoption of new technologies allowing for automation of administration tasks Assumptions No major regulatory changes will occur that will change the types of products and services that can be offered. No major mergers and acquisitions will occur by the organization.

CAPACITY EXAMPLE OUTPUTS: DEMAND FORECASTING WIDGETCO PEOPLE PLAN 2015-2018 – DEMAND FORECASTING LIVERPOOL OPERATIONS

Skills and Competencies EXAMPLE OUTPUT Competency Future Importance Desired Proficiency Product Commercialisation 5 Influences and Communicates/Collaborates with Other Groups People Management and Development Client Focus Operational Management Sales Skills 4 Drives Results Innovation/Creativity 3 Business and Financial Acumen Technical Skills/Depth of Expertise Within Field Inclusive Orientation Learning Agility 2 Strategic Consulting - Sets Strategy and Transforms into Results Local Market Awareness and Presence Knows the Competition

Strategic Capability Areas Opportunities and Challenges Strategic Capabilities Template for self assessment Strategic Capability Areas Importance Current Strengths Required Strengths Opportunities and Challenges Partner / Vendor Management Stakeholder Management (non-vendor) Client Engagement Knowledge, IP & Insights Governance Framework Risk Management Investment Management Resource Management Pricing Capabilities Strengths: Outstanding (far better than competition) = 5; Good (at least as good as competition)= 3; Not proficient = 1 14

CAPABILITY FORECASTING EXAMPLE OUTPUT Competency Future Importance Current Proficiency Desired Proficiency GAP Change Magnitude Product Commercialisation 5 2 3 15 Influences and Communicates/Collaborates with Other Groups People Management and Development Client Focus Operational Management 10 Sales Skills 4 8 Drives Results Innovation/Creativity 1 6 Business and Financial Acumen Technical Skills/Depth of Expertise Within Field Inclusive Orientation Learning Agility -1 -2 Strategic Consulting - Sets Strategy and Transforms into Results Local Market Awareness and Presence Knows the Competition

THE NATURE OF THE GAP WILL INFORM POTENTIAL SOLUTIONS Capability gaps: Identify the options for building capability from within. Identify the options to buy or borrow the capability. What is the most feasible and cost effective option? Leadership and culture gaps: Identify skills and capabilities gaps in the current leadership and consider how the gap can be closed (training, development, movement) Identify skills and capabilities gaps in the leadership pipeline and consider how the gap can be closed (review succession criteria, strengthen buy strategy, development, movement) Demand is more than internal or external supply: Is it feasible to plug the gap through creative sourcing, or will alternative approaches need to be found? Variable gap between scenarios: Cover the base and understand the triggers for the higher-demand scenario and the organization’s ability to ramp up. Variable gap over time: Cover the minimum and look for ways to resolve the short-term need for more employees. Surplus supply of employees: Consider the possibility of redeploying employees to other roles. If there is no solution? Consider whether the business strategy needs to change.

PEOPLE PRIORITIES Do we need to tap into a broader talent ecoystem to get quick and better access to particular skills and capabilities? Are there contract/external agency/consulting expertise that could be utilized? Where can we build in flexibility through a borrow strategy? What type of leadership is required to deliver this strategy? What development of the succession pool is needed to create the leaders of the future? Is our culture driving the right behavior? CREATE AN AGILE WORKFORCE SUSTAIN PERFORMANCE SECURE CRITICAL CAPABILITIES CULTIVATE THE EVP DESIGN COMPELLING CAREERS FUTURE PROOF LEADERSHIP Is the talent/timeframe available for developing needed capabilities? How can changes in talent flows/ velocity impact future supply? How can geographic and other mobility moves impact future supply? Are there work processes that should be re-engineered to minimize critical gaps? Could key roles be redesigned to better fit available talent? How do we best motivate our employees to maximize productivity and key business outputs (customer satisfaction) To what extent should we fill our needs through hiring on the external labour market? What is the availability of required talent in select markets? Are there benefits of building rather than buying key talent? Can gaps be addressed through retention strategies? What is the mix of reward and non- reward benefits that will attract, motivate and retain talent segments? How does this differ by different talent segments?