diversity moneyball: the power managing diversity of of ......workforce planning process purpose...

March 1st, 2013 Walnut Creek, CA

Managing Diversity of Personality and Style in the

Workplace

Diversity Moneyball: The Power of Predictive Analytics and Other

Innovative Metrics

WELCOME REMARKS Brian Baker General Manager Diversity Best Practices

@NxtGenDiversity 2 Diversity Best Practices | www.diversitybestpractices.com

Quinn Thompson Director of Global Diversity & Talent Acquisition International Paper

John Stickeler Director of Diversity & Inclusion Freddie Mac

Diversity Moneyball: The Power of Predictive Analytics and Other Innovative Metrics

3 Diversity Best Practices | www.diversitybestpractices.com Follow us @NxtGenDiversity


4 Follow us @NxtGenDiversity Diversity Best Practices | www.diversitybestpractices.com

• Founded in 1898

• A global leader in paper, packaging and

distribution industry

• Global Headquarters in Memphis, TN

• Operations in North and Latin America,

Europe, Russia, Asia, North Africa and

India

• More than 70,000 employees in more

than 24 countries

• $29.5 Billion Net Sales

5

• Gives business leaders a mechanism to align their strategic plans with headcount and talent planning

• Gives insight to internal and external workforce demographic trends, to enhance proactive planning capability

• Assists in identifying what, where, when and how to source talent

• Helps the enterprise understand and plan for global demographic shifts

• Assimilates historical data for more accurate planning efforts

• Gives business leaders consistent reporting of results to quantify measurable and meaningful outcomes

• Helps the business identify “actionable insights” and talent strategies required to meet workforce demands that directly support business plans and operating budgets

Why is Workforce Planning Important?


Alignment with Business Strategy

• Design WFP strategy to appeal to senior business leader’s objectives, challenges and concerns

• Critically important to have a process owner that is known to have technical credibility and a seat at “the table”

• Business strategy linkages must be repeatedly noted and explained throughout the WFP process

• Include key business strategy planning occurrences into WFP event calendar

• Be specific with explanation of business leader accountability:

– Build a cadre of examples demonstrating potential business strategies that impact WFP

– Incorporate specific success metrics to monitor business impact

• Clearly address the “why, what and how”


Strategic Workforce Planning Maturity Model

Stage 3 Strategic

Workforce Planning

(3-5 years)

Stage 2 Short Term

Business Planning

(1-2 years)

Stage 1 Headcount

Budget Planning (1 year)

++Proactive Talent Strategies

Internal and external labor trends

“Play out” various business scenarios

Validated forecasting techniques

New job/skill requirements

Staffing Maintenance

Attrition

Retirements

Financial Management

+Strategic Integration

Acquisitions

Market Expansion

Divestitures/closures

Talent Management processes

IP is

Here


International Paper’s Workforce Planning Process Purpose

Maximize IP’s human capital investment by systematically forecasting talent needs and proactively maintaining an employee population

with the right people, in the right jobs, at the right time.

Thereby, closing current and future talent gaps.

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Talent Gaps

The definition of a “Talent Gap” is any workforce

condition that provokes an action within your

human capital strategy

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• Identify the criticality of a position to allow un-biased planning of workforce needs required to deliver business objectives

• Have the ability to utilize external data to understand the impact on existing human capital and future talent resources

• Provide data and tools to conduct a talent scan during initial stages of business expansions and acquisition deals

• Provide ability to generate quantitative data for developing strategic talent management plans

• Leverage tools and processes that can be utilized globally

• Introduce standardized processes for assessing a greater scope of talent (complimentary with any current talent assessment processes, while also looking deeper into the organization at lower level positions)

Business Deliverables (What)


Performance Metrics (Dashboard & ROI)

Implement Talent Strategy

(Close Gaps)

Identify Gaps

Capacity Planning

(Demand)

Workforce

Demographics

(Supply)

Step 1: Identify Critical

Positions

Step 2: Conduct

Risk Assessment Step 3: Develop Critical-

Position Workforce Plan

Business

Strategy Enterprise-wide Expectations (annual timeline TBD): 1. Include workforce plan with business strategy planning 2. Develop Critical Position Map 3. Identify priority critical positions 4. Create workforce plan to address gaps 5. Monitor results quarterly

Workforce Planning Model


Strategic roles are critical to creating long-

term advantage (aka: Key Leverage

Positions)

Critical Positions roles have a significant

business impact to delivering results within the current fiscal year

Core roles are marginally critical to business

priorities, but cannot do without

Crit

icali

ty t

o B

usin

ess

Non Core roles are not critical to any business strategies and may be opportunity for cost

savings

Strategic Hiring / Proactive Sourcing /

Effectiveness

Maintenance Hiring / On Demand Sourcing /

Efficiency

Hiring Avoidance / Efficiency

Recruitment Focus

Segmenting Workforce: a business-focused approach to workforce planning


Closing the Gap Talent Strategies

Buy

• External hires

• Experienced professionals and college recruiting

• New and existing positions

Build

• Internal hires

• Functional career progression

• Developmental opportunities

• New and existing positions

Borrow

• Outsourcing

• Temporary and contract labor

• Short and long term assignments

Balance

• Redeployment

• Reduction in Force

13

The definition of a “Talent Gap” is

any workforce condition that provokes an action within your human

capital strategy

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Diversity Best Practices Diversity Best Practices |

www.diversitybestpractices.com

About Freddie Mac

- Freddie Mac was founded by Congress in 1970 with a public mission to stabilize the nation’s residential mortgage markets and expand opportunities for homeownership and affordable rental housing.

- Our statutory mission is to provide liquidity, stability and affordability to the U.S. housing market. - We participate in the secondary mortgage market by purchasing mortgage loans and mortgage-related

securities for investment and by issuing guaranteed mortgage-related securities. We do not lend money directly to homeowners.

- Freddie Mac is operating under a conservatorship that began on 9/6/2008, conducting our business

under the direction of the Federal Housing Finance Agency (FHFA). - We are focused on meeting the urgent liquidity needs of the U.S. residential mortgage market, lowering

costs for borrowers and supporting the recovery of the housing market and U.S. economy.

- Corporate Headquarters in McLean, Virginia, with regional offices in Atlanta, Chicago, Dallas, Los Angeles and New York

- Approximately 5000 employees

16

Building Individual Accountability vs. Prescriptive Direction

Past Actions to Advance Diversity Strategies New Approach to Advance Diversity Strategies

> Corporate Diversity Department established company-wide diversity goals and initiatives for each

business division to follow.

> Each company business division develops their own annual Diversity Plan and goals that address their

areas of opportunity or need.

Role of Corporate Diversity Department

> Provide overall direction, communications and information to corporate-wide leadership:

- Diversity of Workforce (Representation, retention, hiring and promotion rates, etc.)

- Industry Benchmarking

- Relevant internal/external diversity issues / opportunities (e.g. – general corporate goals)

- Coordinate appropriate internal / external linkages (e.g. – diversity recruiting, employee networks, external women/minority organizations, etc.)

- Track and analyze corporate progress

- Development of diversity resources and tools: > Diversity Education > Information Exchange venues > Accountability metrics


Accountability Tool – Divisional Diversity & Inclusion Dashboard

Objective Provide a tool / resource that would provide our individual business

groups information of leading and lagging indicators relevant to their respective work areas.

Eliminate any gaps that may have existed where business group

leadership was unaware of their area’s diversity representation and related activity (e.g. – hiring, promotion, retention rates).

Build accountability across the organization for individual business group

results.


Accountability Tool – Diversity Impact Statement

Objective Provide a tool / resource that would provide the senior leadership of our

individual business groups relevant diversity information before hiring / selection decisions are made for leadership roles

Generate discussion among business group senior leadership of: - past actions (e.g. – diversity within their selection processes) - current representation, bench strength, and developmental actions - potential action plans Build accountability across the organization for individual business group

results. Ultimately improve the opportunities for, and representation of women and

people of color in the leadership ranks


SAMPLE

Early Results / Impact

Although these tools have only recently been implemented in 2013, they have generated positive

response and actions:

> The Diversity Dashboards have now been added as a standard discussion item at each

division’s quarterly “Business Performance Review” with our CEO

> Review and analysis of the Dashboards by division leadership has generated numerous

‘deeper dive’ data analyses of activity impacting diversity results

> Opportunities identified via these metric tools has led to inclusion of related initiatives on

divisional diversity & inclusion plans

> Potential linkage of leading indicators such as employee participation in diversity related

educational / awareness events to higher engagement among women and people of color on recent

employee survey

> An evolving process to identify comparative results across the business divisions and to

leverage the best practices

> Pushback, discussion, clarity and accountability


QUESTIONS AND ANSWERS

Brian Baker General Manager Diversity Best Practices


Quinn Thompson Director of Global Diversity & Talent Acquisition International Papers


For further questions, please e-mail: [email protected]


Upcoming DBP Events • November 13th Web Seminar: Accommodating Religion in an

Increasingly Diverse Workplace

• November 19th Diversity Best Practices Global Member Conference, Bangalore, KA, India

• December 12th Member Conference: Marketplace Diversity: Creating Products and Services for a Hyperdiverse Marketplace Purchase, NY

Diversity Best Practices | www.diversitybestpractices.com 27 Follow us @NxtGenDiversity

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