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Creating a Holistic and Sustainable Approach toWorkforce Planning Globally at John Deere

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DRAFT FOR DISCUSSION

Today’s Presenters

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Brian KellyGlobal Leader, Workforce Analytics & PlanningMercerbrian,[email protected]

Jacqueline HansonManager, Strategic Workforce PlanningJohn [email protected]

QUESTIONS

To submit a question use the floating panel, on the top of yourscreen, and click the Q&A button.

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AgendaWhat we’ll cover today

• Creating a Holistic and Sustainable Approach to WorkforcePlanning Globally

– Mercer’s Workforce Planning Methodology

– John Deere: An Overview

• John Deere’s Workforce Planning Approach

• Five Keys to Successful Workforce Planning

• Recommendations

• Q&A

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Creating a Holistic and Sustainable Approach toWorkforce Planning Globally

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LABOR SHORTAGES

What “Everyone” is Talking About

WAR FOR TALENT

BIG DATAPREDICTIVE ANALYTICS

SUPPLYDEMAND

PRODUCTIVITY

OFFSHORING

OUTSOURCING

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Effectiveness

24%62%

14%

High

Somewhat

Not at all

Research Findings: Organizations Are Making Significant Investments inTalent Without a Plan to Understand and Manage It Effectively*

*Source: Mercer Talent Barometer Survey

Spend

Global

60%Increasespend

Have a Workforce Plan

*77% 23%Yes No

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What is Strategic Workforce Planning?

Current and projectedinternal and externalsupply of criticaltalent (leadership,skills, diversity, etc.)

Supply

Future workforceneedsBased on multi-yearstrategic businessscenarios

Demand

ValueRisksCost

Timing

Definecritical roles orjobs

Translate mybusiness forecast inlabor demand

Build asustainableprocess

Develop approach toanalyze my laborsupply

Outcomes

It is about defining the plans that will balance the supply and business demand of keytalent over time.

It directs talent actions that ensure the right talent is in the right place to drive the rightresults.

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Mercer’s Comprehensive Workforce Planning ModelA sequential, recurring process

Quantity Quality Location

BusinessImperatives

TalentImplications

Talent Supply

WorkforceGaps & Risks

TalentDemand

Develop Internally

Recruit Externally

Contract or UseTemporary Labor

• Attraction• Recruitment• Career

Development• Performance• Rewards• Leadership• Culture

Gain StrategicInsights1 Measure the

Gap Risks2 Model TalentManagement Options3 Take Action4

Workforce PlanningInsights Report

Workforce PlanningInsights Report Risk

AssessmentWorkforcePlan

Talent Solutions &Ownership Model

RiskAssessment

RiskAssessment

WorkforcePlan

WorkforcePlan

Talent Solutions &Ownership Model

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John Deere’s Workforce Planning Approach

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Who We Are

John Deere is a world leader in providingadvanced products and services and is committedto the success of those linked to the land.

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Our Strategy

*

In 2010, John Deerelaunched a globalgrowth strategy thatwe believe will alsohelp customers playa role in meetingthe world’s increasingneed for food, shelter,and infrastructure.

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Aspirations, Mission and Vision

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Vision:The Workforce Planning and HR Analytics aspiration will create a competitive advantage for JohnDeere by developing and delivering workforce intelligence that enables better decision making.

Mission:Provide the business with the process framework, tools, data and analytics for creation of apeople strategy that supports and strengthens our business strategy.

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The Journey

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• Tactical workforceplanning

• Talentsegmentation

• Selected atechnology solution

2012 2013 2014 2015 & Beyond• Develop WFP

model based onbusinessassumptions andfinancial objectives

• Engage HRBusiness Partners

• Implementedtechnology

• Established dataCOE

• 2018 workforceplans by businessleader hierarchy

• Initial alignmentwith externalworkforce data

• Function and regionalignment

• Alignment withtactical workforceplans

• Integration withother processes

• Total workforcedata infrastructureand technologyplatform

• Workforce planningintegrated intobusiness planning

• Service deliverymodel utilizing HRBusiness Partners

• Workforce planningintegrated withother HR and non-HR processes

Workforce Planning Maturity

Valu

e/Im

pact

toB

usin

ess

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Workforce Planning Process

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Step 1Business Assumptions &Senior Leader Reviews

Step 2Demand Planning &

Supply Analysis

Step 3Risk Assessment, Action

Planning & WFPAlignment

Step 4Roll-Up & Alignment

Opportunities

• Gather top-downbusiness assumptions

• Collect financial targets

• Populate financial modelto drive demand planning

• Project quantity targetsby hierarchy

• Analyze currentworkforce

• Identify capability shifts

• Utilize scenario planning

• Review workforce risksand gaps

• Determine action plans

• Align short-termworkforce plan tolong-term strategy

• Alignment discussion

• Alignment of capabilitiesand quantities bydivision, country andfunction

• Identify integratedenterprise opportunities

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Our Approach

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Global

Division, Function, Region

• Top-down based on business assumptions and financial objectives• Alignment of people strategies with business strategies

• Bottom-up integration of tactical workforce plans• Balance short-term needs with future vision

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Service Delivery ModelOwned by the business; driven and facilitated by HR

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BusinessLeaders

HRBP

WFP and Data COE

StrategicGuidance

Process Framework, Tools,Data and Analytics

ProcessFacilitation

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COE Critical Competencies

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Leadership Competencies

• Business acumen

• Coaches and develops others

• Creates strategy

• Drives performance

Partnering Competencies

• Collaborates with others

• Counsel and advice

• Customer focus

Work-Enabling Competencies

• Adaptability

• Communication

• Cultural sensitivity

• Mental agility

Functional Technical Competencies

• HR measurement and evaluation

• HR insight based on data

• HR technology comprehension

• HR technology utilization and dataintegration

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Organization Structure

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Director WorkforcePlanning,

Acquisition andDevelopment

Strategic andTactical Workforce

Planning

7 Team Members

Workforce Analysis,Data Governance,Metrics, Reporting,

Survey

8 Team Members

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A Strategic Workforce Plan Includes…

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• Business strategy

• People implications

• Scenario plans

• 2018 Demand

• Future Capabilities

• Demand/Supply Analysis

• Critical Role Shifts

• Affordability

• Risks and Actions

SAMPLE

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Five Keys to Successful Workforce Planning

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1. Build a Demand Model Based on Financial Targets

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Model ForecastNet SalesOperating ProfitCost of SalesOROSHeadcount 2,000 100.0% 2,800 100.0%

Product Eng 700 35.0% 1,000 35.7%

Manufacturing Eng 450 22.5% 650 23.2%

Operations 350 17.5% 500 17.9%

Quality Eng 225 11.3% 325 11.6%

Supply Management 50 2.5% 75 2.7%

Marketing/Sales 25 1.3% 50 1.8%

Back Office 200 10.0% 200 7.1%

Total Employment CostTEC as a % of Cost of Sales

2014 2018$5,000.0 $7,000.0

$200.0 $300.05.0% 6.0%

$1,000.0 $2,000.0$4,000.0 $5,000.0

20.0% 28.6%

Model ForecastNet SalesOperating ProfitCost of SalesOROSHeadcount 2,000 100.0% 2,800 100.0%

Product Eng 700 35.0% 1,000 35.7%

Manufacturing Eng 450 22.5% 650 23.2%

Operations 350 17.5% 500 17.9%

Quality Eng 225 11.3% 325 11.6%

Supply Management 50 2.5% 75 2.7%

Marketing/Sales 25 1.3% 50 1.8%

Back Office 200 10.0% 200 7.1%

Total Employment CostTEC as a % of Cost of Sales

2014 2018$5,000.0 $7,000.0

$200.0 $300.05.0% 6.0%

$1,000.0 $2,000.0$4,000.0 $5,000.0

20.0% 28.6%

SAMPLE

• Model includes historicaldata, calculations andmodel variables

• Model is flexible – byproduct line or region

• Supporting data based ontrends over time

• Inputs supports headcountprojections and the impactof total employment costson Operating Return onSales (OROS)

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2. Use Scenario Planning to Prepare for Different Potential Outcomes

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• Modeling of scenarios isthe key to determiningpaths to plan for

• This has the potential tobe challenging becauseof the myriad of variablesand options

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3. Focus on Workforce Capability

Ensure that you have identified key capabilities that will help us to supportbusiness success in the future.

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Leadership InterpersonalSkills

AnalyticsBusinessAcumen

Technical

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4. Focus on Alignment

WFP is not just about actions – it is about creating alignment, particularlyin a matrixed organization.

Workforce Planning must provide data and the venue to drive alignmentacross all areas.

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Division Hierarchy Function Region Country

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5. HR needs to work differently in the future to deliver holistic talentsolutions that align to strategic plans

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Attraction

Recruitment

Career Development

Performance

Rewards

Leadership

Culture

StrategicWorkforce

Plan

Change &Results

HR SOLUTIONS

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Recommendations

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Recommendations

• Start small

• Get early wins

• Don’t let lack of data hinder you

• Communicate a clear vision and a three to five year journey

• Clearly identify the skill-set needed

• Don’t worry if everyone can’t see the vision

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If we think the end game is focusing on the action items,then we’ve missed it...

This is about changing mind-sets

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What’s Coming Up NextWorkforce Analytics Webcasts, Workshops and Data

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www.mercer.com/mercer-workshopsNew York – March 6 & 7Singapore – March 12Jakarta – March 13, April 22Manila – April 27Zurich – March 13 & 14

Webcast Serieswww.mercer.com/webcastseries• Cameco• Experian• John Deere• UMass Memorial Health Care• Johnson Controls• Diversity & Analytics• Mobility & Analytics

Mercer’s Workforce MetricsBenchmark Reportswww.imercer.com/wmrs• Workforce composition and

retention metrics• 66 countries• 6,000+ participants• Regional and custom editions

available

www.mercer.com/talent-impact-technology-conference

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Brian KellyGlobal Leader, Workforce Analytics & PlanningMercerbrian,[email protected]

Jacqueline HansonManager, Strategic Workforce PlanningJohn [email protected]

Questions and Answers

QUESTIONS

To submit a question use the floating panel, on the top of yourscreen, and click the Q&A button.

CLICK HERE TO ASK A QUESTIONTO “ALL PANELISTS”

FEEDBACK

Please take a minute to fill out thefeedback form so we can continue toimprove. It will pop-up in a new windowwhen the session ends. Thank you!

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Biography – Brian J Kelly

• Brian is a Partner at Mercer and is the global leader for the Workforce Analytics & PlanningPractice. Brian recently served as the Co-Chair the Institute of Human Resources WorkforcePlanning & Analytics Working Group and Vice Chair of the Society of Human ResourceProfessional's (SHRM) workforce metrics taskforce.

• Prior to Mercer, Brian was the President, North America of Infohrm, the recognized industryleader in workforce reporting, analytics and planning solutions across the globe. Brian ledInfohrm's North American operations and was responsible for the firm's global sales,marketing and partner strategy leading to the firm's acquisition by SuccessFactors in July2010. Prior to leading Infohrm, Brian served in a variety of management and leadershippositions in the software, services and investment management industries with such firms asDoubleStar, Inc. and SEI Investments.

• Brian is a graduate of Boston College.

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Biography – Jacqueline Hanson

• Jacqueline K. Hanson is Manager, Strategic Workforce Planning for John Deere. She has heldthis position as part of the HR Strategy team since September 2010.

• Jacqueline is responsible for leading the enterprise strategic workforce planning process, aswell as driving the implementation of a technology solution, and integrating strategic workforceplanning with other HR and business processes. Jacqueline began her career with JohnDeere in 1998, and has held positions of increasing responsibility both in the supplymanagement and human resources functions. Her most recent human resources experienceincludes leading the college recruiting team, serving as the HR manager for several keyfunctions, and managing the global deployment of performance management, mentoring andcoaching processes. In each of these roles, Jacqueline also had responsibility for strategicworkforce planning before being appointed full-time to the enterprise initiative. Through asuccessful tenure, Jacqueline has developed and implemented global processes that align toand support the John Deere Enterprise Strategy. She drives for sustainable results and is aproven leader in the organization.

• Jacqueline graduated from the University of Iowa with BBA in Business Administration.

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