Right-Sizing for

Profitability in ANY
Economy
Presenters:
Shari Cooper, CHRP

Michelle Arthurs, CHRP

What you will learn today

So what is Right-sizing?
What is Strategic Workforce Planning?
Critical Link?
Key Metrics Measuring success
Case study

A little bit about Pivotal

Experience: 25+ years/ Private/
Canadian
Market Position: broadest range of HR
solutions
Outsourced HR management
HR assessments
HR Help Desk
HR projects
Outsourced payroll management
Recruiting

Why Rightsize?

Some people dream of success...

while others wake up and work hard
at it.
Author Unknown

What is Right-sizing?
Its more than just Down-sizing:

Downsizing or Upsizing
Redesigning processes and systems
Eliminating or adding functions
Includes HR, Capital, Financing, Supply Chain
Reshaping the entire organization

OPTIMIZATION LEAN ORGANIZATION

REVITALIZATION RENEWAL REINVENTION
TOTAL ORGANIZATIONAL PERFORMANCE

Before you can Rightsize

Rightsizing

STRATEGIC PLANNING

If one does not know to which port

one is sailing, no wind is
favorable.
Lucius Annaeus Seneca

Strategic Plan
Strategic planning is an
organization's process of defining
its strategy, or direction, and
making decisions on allocating its
resources to pursue this strategy,
including its capital and people.
-Wikipedia

A Critical Link.
Strategic Planning

WORKFORCE PLANNING

Workforce Planning:

The right people

The right place
At the right time
Doing the right thing
Right sizing

If you dont drive your business,

you will be driven out of business.
B.C. Forbes

Workforce Planning Steps:

1. Desired End State (Future Workforce
Profile)
2. The. O.T. of S.W.O.T
3. Current Workforce Profile
4. Identify the gaps
5. Closing the gaps
6. Measure
7. Evaluate & Adjust

Step 1: Desired End State

Key Questions:
Vision of future business
Identify Critical roles
Current capability/capacity
Identify Critical resources
People budget

Step 2: Environment Scan

Outside of the Organization
Opportunities to be Leveraged:
Threats to be considered

Political
Economic (Currency, Resource prices)
Competitor
Environmental
Cultural

Step 3: Workforce Profile

Talent / Skill sets

Competencies
High Potential Pool
Performance Levels
Geographic Location
Flexibility / Mobility
Culture
Demographics
WHAT YOU HAVE
vs.
WHAT YOU NEED

Steps 4: Gap Analysis

Identify gaps Workforce Profile

Current vs. Future
Address via HR Strategies

Strategies to Address Gaps:

Step 6: Short-term
Measures
Succession Plan Milestones (SMART
Goals):
Identify critical roles & competencies
Identify high potentials (Hi-Pos)
Create development program for Hi-Pos
Communicate program and obtain
commitment
Periodic audit to ensure desired results

Step 6: Long-term Measures

(KPIs)
Business Metrics: Balanced Scorecard
Financial

(Net Profit, Gross Margin, EBITDA)

Internal Process

(# of defects, labour productivity)

Organizational Learning

(Training $/ee, Avg

employee performance scores)

Customer

(satisfaction survey, retention, referrals)

Step 6: Long-term Measures

(KPIs)

HR Metrics:
# of Succession Plans
Turnover / Retention
Employee Engagement

Effective leadership is putting first

things first. Effective management is
discipline, carrying it out.
Stephen Covey

Case study: ABC Co.

Business: Education related Software
products and services
Location: Burlington, ON
Incorporated: 1986
Client Base: school districts, consortiums
and state departments of education in
Canada and the U.S.

Case study: ABC Co.

Steps:

Desired
End State

Considerations:

Increase North American market share by

25%
Achieve 20% Revenue increase via
international expansion
Requires Multilingual capabilities

Increased global competition from multilingual

software providers
Environmen
Decreased trade barriers
tal Scan
Low interest rates.good time to borrow
money for expansion

Case study: ABC Co.

Steps:

Considerations:

English only capability:

software programming
service, documentation
Sales
Current
State Diversity and Performance Standards not
reflective of international business model
Compensation strategy does not support end
state
Sales resources focused on N. America only

Case study: ABC Co.

Steps:

Considerations:

Develop plans to address:

Talent Acquisition
Java Programming Skills

HR
Gaps

Multilingual competencies
Outsource capabilities not found internally
Re-training/development of current staf
Revise Comp strategy to reward new skills &
New Performance Management tool

Case study: ABC Co.

Steps:

Considerations:

1. Acquire talent multilingual, sales

2. Develop in-house competencies through T&D

Plan and 3. Divest talent not aligned with future goals

Execute
Tactical 4. Redevelop Compensation plan to align with
new talent/skill set
Mileston
es
5. Redevelop Performance management
program to align with new expectations
6. Redeploy Sales eforts into target market

Case study: ABC Co.

Steps:

Measur
e KPIs
&
Adjust

Considerations:

Are we meeting the required tactical

milestones?
Are the budgets on track?
Is the talent that we hired meeting
expectation?
If not, adjust actions to achieve Milestones

Case study: ABC Co.

Outcomes:
ABC sold its first multilingual
application into the United Arab
Emirates Abu Dhabi
This provides the gateway to the large
profitable market of Saudi Arabia
ABC accomplished its Stated End
Goals by Right-sizing to accomplish its
Strategic Plan

Case study: ABC Co.

Next Steps:
Continue to monitor, measure and
adjust Workforce Strategy if needed
Ensure maximum profitability by having

Summary: ABC Co.

The right people

The right place
At the right time
Doing the right thing
Right sizing

There are no secrets to success. It is the

result of preparation, hard work, and
learning from failure.
Colin Powell

Questions?

www.pivotalsolutions
.com
Call Shari Cooper or
Michelle Arthurs at
905.890.8558