Workforce Planning Business Unit Planning Tool Kit (draft)

Essential Elements of Strategic Workforce Planning 2

The Building Analogy It must be built to withstand time SustainableSustainable 5 5 It requires a team approach to complete TeamTeam 4 4 It must have critical skills to build SkillsSkills 3 3 It must have a solid plan PlanPlan 2 2 Every building needs a strong foundation FoundationFoundation 1 1 3

Building the House - Planning Why are we building a house Is it a New house or a Remodel What kind of house do we need What do we need from this house How soon do we need build our house What do the plans need to include Where will we build the house 4

Strategic Workforce Planning 5 Financial Planning Business Strategy Planning SWP enables us to evaluate workforce alignment to business strategy and identify risk to meeting organizations plans. SWP connects business, financial and workforce plan together. HR Architected & Line Driven/ Implemented HR Architected & Line Driven/ Implemented

Directional Understanding Where is the organization moving towards What are their financial factors What are the environmental factors Who are the stake holders and what are their needs 6

Strategy Analysis Workforce Segmentation Environmental Scan Scenario Planning Workforce Risk Assessment Business Unit Planning Process 7

Strategy Analysis 8 Link Workforce Needs to Corporate Business Strategies  What is the organizations business strategy  What are the business objectives  What are the business drivers  Growth  Financial  Market  What is the organizations business strategy  What are the business objectives  What are the business drivers  Growth  Financial  Market Corp Strategies Unit Business Plan Workforce Direction

Workforce Segmentation 9  What roles in the organization are essential to implementing the business strategy?  Try to identify the three to five roles that are absolutely critical.  CEWD has identified the following job groups as important  Technicians  Plant Operators  Engineers  What roles in the organization are essential to implementing the business strategy?  Try to identify the three to five roles that are absolutely critical.  CEWD has identified the following job groups as important  Technicians  Plant Operators  Engineers New Skill and Productivity Requirements Future & Current Critical Skills/Jobs What are the Workforce Demands

Environmental Scan 10 External Impacts Governmental/Economic Energy Industry Trends Educational Internal Impacts Financial Organizational Employee

Potential External Impacts Governmental/Economic  Current commitments with Public Utility Commissions that would limit hiring strategies, i.e. rate case issues.  Regional population growth rates impacts  Regional unemployment rates impacts  Pending legislation that may affect hiring practices and benefits Energy Industry Trends  Merger and acquisition trends  New Technology Strategies  Projected growth in energy needs  Outsourcing trends on base load work Educational  What are the types of educational program supporting the energy sector. Are these programs available in the recruiting geo-graphic area.  What are the enrollments and graduation rates for these programs  What is the diversity mix of students in these programs 11

Potential Internal Impacts Financial Considerations  Projected company growth in new customers  Review of company capital projects for the next 1 to 5 years  Review of company O&M requirements for the next 1 to 5 years  Budget available for “STAFFING MARGIN”  Budget availability for training and development requirements Organizational Considerations  Organizational changes, i.e. Leader changes, department consolidations, etc  Organizational capacity requirements  Knowledge, skills and abilities for current employees  Current labor agreement provisions and expiration dates  Organization’s relationship with unions (collaborative or adversarial) Employee Demographics  Turnover rates, retirement and non-retirement. Reason for turnover.  Demographic profiles of current employees, age, race, gender, length of service, retirement eligibility and other unique factors by organization 12

Scenario Planning 13 Illustration purposes only

Workforce Risk Assessment 14 Illustration purposes only

Managing WFP Risk 15  What are your Key Risk indicators  % of attrition by job  % eligible to retire  Ave age of employee  Ave years of service  Ave time to fill critical positions  Ave training lead times  % of empl completing training  What are your Key Risk indicators  % of attrition by job  % eligible to retire  Ave age of employee  Ave years of service  Ave time to fill critical positions  Ave training lead times  % of empl completing training  What are your Business Drivers  Qualified workforce  Process efficiencies  Budget/Financial  Effectiveness use of talent  Organizational performance  Safety objectives  Leadership effectiveness  What are your Business Drivers  Qualified workforce  Process efficiencies  Budget/Financial  Effectiveness use of talent  Organizational performance  Safety objectives  Leadership effectiveness  What are your Risk Events  Knowledge deficiencies  Insufficient skill sets  Equipment failures  Unplanned outages  Regulatory oversight  What are your Risk Events  Knowledge deficiencies  Insufficient skill sets  Equipment failures  Unplanned outages  Regulatory oversight  What are your Potential Impacts  Financial/Earnings  Safety  Staffing  Customer  Business Performance  What are your Potential Impacts  Financial/Earnings  Safety  Staffing  Customer  Business Performance

Building a Case for Action 16 Purpose Strategic & Operational Effects Approach & Methods Business Value Impact Risk and Uncertainty Purpose Strategic & Operational Effects Approach & Methods Business Value Impact Risk and Uncertainty Using the Planning Process, Build a Case for Action

Develop a Hiring Approach 17 Illustration purposes only Where will the future sources of talent be found?

Talent Sources - GIEP 18

Military Impact on Talent Sources 19 Source – McClatchy Newspapers, There will be more veterans looking for careers in the near future!

Troops to Energy Jobs Opportunity 20 With over 102,400 veterans entering the workforce and over 103,500 utility needing to be filled over the next 3 to 4 years…… GREAT OPPORTUNITY for Troops to Energy Jobs to have an impact on our industry!

Essential Elements of Strategic Workforce Planning 21

Questions & Answer Session 22

Addendum 23

Five Elements of a Strategic Plan Vision Statement Mission Statement Core Business What’s Measured Critical Success Factors Strategies & Actions Key Objectives What’s Important Org Schedule 24

SWOT Analysis Impacts 25 Weaknesses What are my gaps and weaknesses Threats What are the internal and external issues Strengths What are our strengths Opportunities What can we leverage and improve

PEST Analysis Impacts P E S T Political Factors Economic Factors Sociological Factors Technological Factors 26 What are the impacts of these factors?

Porter’s 5 Forces Model 27 What are the forces impacting an organization?

McKinsey 7S Model 28 How are these elements impacting an organization?

Example of a Planning Template 29