Whitepaper

Do You Really Have a Workforce Strategy?

By Colin Beames (MBA, BA, BEng, MAPS)
Corporate Psychologist
Director, Advanced Workforce Strategies

June 2013
Copyright 2013 Colin Beames



Do You Really Have a Workforce Strategy? 2

Executive Summary
The title of this white paper is a little provocative, but deliberately so. It argues the case for organisations to
move beyond the limitations of workforce planning, succession planning and talent management, to develop a
whole of workforce strategy that is aligned with the business strategy.


The Challenge

The No 1 challenge now facing many organisations, and even more so over the next
decade and beyond, will be the strategic management of their workforce. Recent
research has confirmed that this is the number one concern for many CEOs.

A dilemma for organisations in the post GFC era is how to maximise the flexibility of
their workforce (i.e., minimise risk), and attract, develop and retain valuable skills.

The workforce has become more mobilised and diversified with employees now coming
in all shapes and sizes! Dealing with this workforce complexity requires a more
differentiated and sophisticated approach to the management of human capital.

The people factor is arguably the most important driver of business success constituting
between 30-80% of the cost base of organisations. However based on surveys of CEOs, it
is one of the least effectively managed corporate functions.

Limitations of Workforce Planning

Workforce planning is typically tactically focused on head counts and time lines,
undertaken for short-term budgetary purposes by HR and not necessarily owned by the
business. It fails to address the broader strategic workforce questions and adequately
differentiate or segment the workforce. A one size fits all mentality is a recipe for
mediocrity!

Segmentation is a fundamental business concept. It is the key to treating an
organisations workforce assets like a portfolio that can be managed. Yet traditional
approaches to workforce segmentation are limited or flawed (e.g., based on job level).

The strengthening of organisational critical capabilities and core competencies is
becoming increasingly recognised as a key to generating improved business outcomes.
There is a need to link the importance of roles more closely to these capabilities and
competencies and the business strategy.

The Solution
Three human capital models are introduced that form a basis for addressing the above
people challenges and developing a whole of workforce strategy that is aligned with the
business strategy.

Those who can effectively translate their business strategy into an actionable human
capital strategy can drive a new kind of competitive advantageone that is extremely
difficult for others to imitate.




Do You Really Have a Workforce Strategy? 3


Table of Contents
Page

Executive Summary ................................................................................................... 2
The Workforce/Talent Management Challenge ................................................. 4
What is the Most Critical Function of HR Now?............................................... 4
The Limitations of Workforce Planning ............................................................... 5
Do You Really have a Workforce/Human Capital Strategy? ........................... 6
Differentiation/Segmentation: A Fundamental Concept ................................... 7
Why Traditional Approaches to Workforce Segmentation are Limited ..... 7
Model 1: A Skills Based Workforce Segmentation Model .............................. 8
Failing to Differentiate the Workforce: The Adverse Consequences! ...... 12
Model 2: Organisational Capabilities and Competencies ............................... 13
What is Human Capital? ......................................................................................... 16
Model 3: The Five Ways of Increasing Human Capital .................................. 16
The Essence of What Constitutes a Workforce Strategy ............................ 17
The Benefits for CEOs and HR Professionals .................................................. 18

References ................................................................................................................ 20
Appendix A: The Skills Segmentation Questionnaire (SSQ) ........................ 21
Appendix B: About the Workforce Strategic Plan Pack ................................ 23
About the Author ................................................................................................... 25
About Advanced Workforce Strategies ............................................................ 26














Do You Really Have a Workforce Strategy? 4

The Workforce/Talent Management Challenge
The No 1 challenge now facing many organisations, and even more so over the next decade and beyond, is the
strategic management of their workforce (including talent). The demographic crunch of a rapidly ageing
workforce, combined with the current and ongoing talent and skills shortage, are but two of a number of
factors contributing to this challenge. Additionally the workforce has become more mobile and diversified.
Employees now come in all shapes and sizes one size doesnt fit all!
Organisations now want to have their cake and eat it. The challenge for them is captured in the following
three questions:
How to maximise the flexibility of their workforce (i.e., minimize risk)?
How to maximize the commitment and performance of their people?
How to attract, develop and retain valuable skills?
Configuring and then managing a workforce that is accessible, skilled, motivated and efficiently deployed will
increasingly be a key differentiator of business performance and financial success.
Dealing with this complexity requires a more sophisticated approach to the management of human capital.
Furthermore this people management challenge is not simply a HR issue. It is a business strategy issue where
Company Directors, CEOs, CFOs and Executives must inevitably be involved.

What is the Most Critical Function of HR Now?
There is now a great deal of evidence that the contribution of people is the largest driver of organizational
performance (CIPD, 2003).
Too often business goals, plans and strategies are developed without any accompanying detail describing how
people will be managed and assisted to deliver and achieve what the business has set out to do. Human capital
costs account for between 30-80% of the total cost of a business (depending upon the industry sector). Despite
the overwhelming evidence that the people factor is now regarded as the single most important driver of
business success, according to surveys of CEOs, it is one of the least effectively managed corporate functions.
Many HR functions are typically disparate, yet integration multiplies business value. Often workforce strategies
(if indeed they exist) are misaligned with business strategies.
Companies have revamped practically every business process in their search for competitive advantage, apart
from the area of human capital. Many organizations are still lacking the concepts, strategies, models and
measures that matter most to effectively manage their most vital intangible asset their people. The same level
of rigor as that which applies to managing and reporting on financial processes, should be applied to human
capital.
However an understanding of human capital, including the quality of reporting on it and what actually
constitutes a workforce/human capital strategy, generally lags well behind that of other key assets of the
business. HR has been a maligned service provider, but their most critical function now is to focus sharply on
the interface and alignment between workforce and business strategies.





Do You Really Have a Workforce Strategy? 5

The top skill highlighted as a requirement for future HR leaders was the ability to connect HR initiatives to
strategic priorities of the organisation, cited by 76% of the respondents from 300 organisations (Human Capital
Management Trends, 20012, Aberdeen Group). Development of this skill involves, amongst other things:
An understanding of which roles are critical to business growth and performance;
Providing the right HR data to stakeholders to understand measure and monitor the effect of talent decisions
on the business; and
Creating differentiated hiring, development and retention plans for critical talent and critical roles.

The Limitations of Workforce Planning
Whilst most organizations have bundles of HR policies, and many may undertake workforce and succession
planning, together with talent management, very few have developed and documented a workforce or human
capital strategy. At the heart of such a strategy is a focus on:
Linking the importance of roles to the business strategy, including strengthening organizational critical
capabilities and core competencies; and
Workforce segmentation and role differentiation, which is the key to treating an organisations
workforce assets as a portfolio that can be analysed and managed.
Typically workforce planning is about primarily filling roles. It is tactically focused on head counts and time lines,
undertaken for short-term budgeting purposes by HR and not necessarily owned by the business. As such, it
neglects to consider the broader strategic workforce questions. For example, it may be the case that some
roles that are linked to non-core activities could or should be outsourced.
Furthermore some roles will be much more critical to the execution of the business strategy than others.
Other roles may require significant initial investment in training and development (e.g., defense forces, train
drivers, casino dealers). This being the case, different attraction, engagement and retention strategies will apply
to ensure the optimum use of available resources.
In summary, some of the key overriding strategic workforce/talent management questions that workforce
planning doesnt typically address include:
How should the workforce best be segmented (e.g., on a hierarchical or job level basis, or on some other
basis)?
How do roles and their level of importance link to the business strategy?
How do various roles contribute to the strengthening of organizational critical capabilities and core
competencies?
What are the critical roles in the organisation, and is there a defined methodology for their classification
as such?
What roles should or could be outsourced, and what is the rationale for such decisions?
What roles should be filled with people readymade from the market (i.e., minimal investment in training
and development)?



Do You Really Have a Workforce Strategy? 6

What roles should people be developed from within?
How should attraction, engagement and retention strategies and levels of investment in people differ for
these various roles?
It is contended that there is a need to move beyond workforce planning to a more strategic and
comprehensive whole of workforce/talent management approach that addresses the above workforce
questions.

Do You Really Have a Workforce/Human Capital Strategy?
Complete the following ten questions about your organization to determine whether you really do have a
workforce/human capital strategy:
1. Most positions are paid at the market midpoint. T __ F __
2. Recruitment for all roles has the same assessment process. T __ F __
3. The Employment Value Proposition (EVP) is the same for all roles. T __ F __
4. A one size fits all approach applies to the application of all of our people management policies and practices to
various roles. T __ F __
5. Turnover is only reported for the workforce as a whole. T __ F __
6. The workforce is segmented on an organizational level or job/salary level basis. T __ F __
7. The performance management system/forms are the same for all roles. T __ F __
8. There is no defined methodology for identifying Critical roles. T __ F __
9. There is no defined methodology for determining which roles are outsourced or considered for potentially
outsourcing. T __ F __
10. There is little emphasis on the link between various roles and their importance, to the business strategy and the
strengthening of organizational critical capabilities and core competencies. T __ F __
Your total score:
Number of True answers: ___ Number of False answers: ___
What does your score mean?
If you answered True to only one or two of these questions, then you are well on the way to developing a
workforce/human capital strategy.
If you answered True to three or more of these questions, you are unlikely to be differentiating your
workforce roles sufficiently. As such, it is very unlikely that you have developed a comprehensive and effective
workforce or human capital strategy. Consequently you are unlikely to be making optimal people management
decisions.




Do You Really Have a Workforce Strategy? 7

Differentiation/Segmentation: A Fundamental Concept

Just as a marketer segments or stratifies their clients, products and services according to their value, the same
principles should apply to segmenting the workforce. As indicated earlier, segmentation is the key to treating
an organizations workforce assets like a portfolio that can be effectively analyzed and managed.
The choice of segmentation model is therefore fundamental to developing a comprehensive,
rational and consistent approach for addressing the people management challenges ahead. It
should underpin the management of the workforce/talent, and hence the development of a workforce or
human capital strategy, including decisions involving:
Outsourcing, buying ready-made or developing people from within;
Determining critical roles;
Differentiated approaches to attraction, engagement and retention including different Employment
Value Propositions (EVPs);
Differentiated levels of investment in employees; and
The reporting of human capital data (e.g., cost of turnover).

Why Traditional Approaches to Job Evaluation and
Workforce Segmentation are Limited

The conventional approach to job evaluation is static, inflexible and primarily focused on internal
equity.There is a need to move away from conventional approaches to determining job importance
and job-worth to a model that focuses on future value creation, strategic job worth and competitive advantage.
(Becker, Huselid & Beatty, 2009)



Do You Really Have a Workforce Strategy? 8

Most organizations adopt a hierarchical model of segmenting their workforce (i.e., based on salary or job level
or job evaluation considerations). Whilst this model may be suitable for defining reporting arrangements and
determining limits of authority it:
Doesnt necessarily determine attraction, engagement and retention strategies; and
Doesnt determine how roles are linked to the business strategy, which roles are more closely linked to
developing critical capabilities and core competencies, and hence which roles are more important to
business outcomes.
To a certain extent, salary levels are a reflection of market forces and internal equity considerations, and may
not necessarily reflect the true value of roles contribution to the business (i.e., value creation, competitive
advantage).

Model 1: A Skills Based Workforce Segmentation Model
It is contended that the workforce should be best segmented on a skills basis. After all, skills are the new
currency in the 21st century workplace! Advanced Workforce Strategies has adapted a skills based workforce
segmentation model based on the work of Lepak and Snell (1999, 2002). This model takes into account both
the value and uniqueness of skills relative to the role.
Based on this model, there are four role types:
1) Criticals
2) Professionals, skilled and Semi-Skilled
3) Doers
4) Specialists
Each of these role types has a different psychological contract (or employer/employee relationship or
deal/Employment Value Propositions {EVP}), with different levels of investment in employees and different
turnover cost implications.












Do You Really Have a Workforce Strategy? 9

The Ski l l s Based Workf orce Segmentati on Model

Val uabl e ski l l s
Valuable skills are those skills that improve the efficiency and effectiveness of the organization, exploit market
opportunities, and/or neutralize potential threats. Valuable skills can be created in eight ways through:
1) Increasing revenue/sales
2) Improving stakeholder relations including customer satisfaction
3) Enhancing productivity/reducing costs
4) Enhancing quality
5) Fostering innovation
6) Enhancing organisational capability
7) Enhancing / protecting the firms reputation
8) Enhancing financial performance (e.g., ROI, cash flow).
Uni que ski l l s
Unique skills are rare and specialized, or organizational specific. They are unlikely to be found in the open
market, hard to replace, and hard for competitors to imitate or duplicate. These skills need to be nurtured



Do You Really Have a Workforce Strategy? 10

over time, given that they are not developed and acquired overnight. Firms are most likely to have to invest in
the education, training, and development of these skills.
Exampl es of Rol es i n the Ski l l s Based Workf orce Segmentati on Model

The Ski l l s Based Workf orce Segmentati on Model and the management of
Human Capi tal
The above model provides a rational basis for differentiated HR policies and practices (including attraction,
engagement and retention strategies, psychological contracts/Employment Value Propositions (EVPs) or
deals), and the identification of critical roles those roles that incorporate higher skills value and
uniqueness.
Refer to the diagrams on the following pages for how these HR and Recruitment policies and practices may
vary according to where the role fits in a this four quadrant model.
Different turnover multiples apply for different segments. The cost of turnover is the calculated based on the
salary level of the job multiplied by the turnover multiple for the job in question.
For example, the cost of turnover for a person in a Critical role on a salary package of $200k is $200,000 x 2.5
= $500,000.



Do You Really Have a Workforce Strategy? 11

Whereas the cost of turnover for a person in a Doer role on a salary of $60k is $60,000 x 0.5 = $30,000.
So 15 Doers leaving at a total cost of $450,000 would still be less costly than one Critical leaving.
Note. Advanced Workforce Strategies has developed the Skills Segmentation Questionnaire (SSQ) for analyzing and
plotting roles according to this model. Refer to Appendix A for further details.
HR Pol i ci es and Practi ces by Workf orce Segment/ Quadrant

In the above diagram:
Appraisal Systems and Compensation/Reward Systems refer to the Engagement and Retention of human
capital; and
Career Advancement and Training and Development refer to the Development of Human Capital.
Refer to the Model 3 later in this white paper where Engagement and Retention, and Development of human
capital, comprise two of the five ways of increasing human capital.
The above Model 1 also forms the basis for determining make versus buy employment decisions with roles
in quadrants 2 and 3 potentially able to be outsourced (i.e., Borrowing human capital which is another of one of
the five ways of increasing human capital), subject to satisfying a range of other criteria.



Do You Really Have a Workforce Strategy? 12

Recrui tment Strategi es by Workf orce Segment/ Quadrant


The above diagram refers to the Acquisition of human capital, which is also one of the five ways of increasing
human capital (refer to the Model 3 later in this white paper.)

Failing to Adequately Segment and Differentiate the
Workforce: The Adverse Consequences!
Properly thought through, integrated, and appropriately applied people management strategies and practices,
customized to particular organizational circumstances, are the most powerful driver of sustainable success.
(Lepak & Snell, 1999)
As alluded to earlier, dealing with the complexities of people management in the 21
st
Century workplace
requires a more sophisticated and hence differentiated approach. Roles differ in their potential to add value,
and contribute to business success. Not everyone is equal! Not all employees possess knowledge and skills of
equal strategic importance.
A one size fits all approach to people management is a recipe for mediocrity (e.g., paying all employees at say
the 60% range of the market). While simplistic and convenient, such a lack of insight is likely to result in
muddled, inconsistent and poor people decisions, the adverse consequences of which could include:



Do You Really Have a Workforce Strategy? 13

A waste of resources (e.g., could include paying the wrong people too much and the right people too
little);
Locking in low performers by over delivering, and pushing out high performers by under delivering on
expectations;
Operational inefficiencies and poorer performance through having inexperienced people in important
roles;
Lack of labour flexibility;
Increased turnover.

Model 2: Organisational Capabilities and Competencies
Every organization operates in a unique competitive situation. In order to implement its strategy and achieve its
goals, each organization must develop and build capabilities and competencies that are critical to strategic
intent. Either a firm performs:
Different activities from its rivals (which require unique skills), or
Similar activities to rivals in more efficient and effective ways (which relates more to valuable skills).
A me to strategy may keep a firm in the game but it isnt the basis for long-term, above average performance.
A Three Level Model of Capabi l i ti es/ Competenci es

Three types or levels of capabilities and competencies are presented in the above model, in order of their
importance:
1) Differentiating or critical capabilities (of organizations);



Do You Really Have a Workforce Strategy? 14

2) Core competencies (of organizations);
3) Work competencies (of individuals and teams).
Differentiating or Critical Capabilities
A capability may be viewed or defined as the sum of expertise and capacity. Differentiating or critical
capabilities:
Differentiate an organization from its competitors (i.e., its point of difference);
Characterize the organization to their customers;
Contribute significantly to success.
Capabilities thus represent what the organization is known for, what it is good at doing, and how it patterns its
activities to deliver value. These capabilities define many of the intangibles that investors pay attention to,
including the company brand to which customers relate to, and the culture that shapes employee behavior.
They become the identity of the company and the key to implementing the business strategy.
Differentiating or critical capability(s) are therefore vital to the success of an organization because they
constitute a key source of sustainable competitive advantage.
Core Competencies (of the organization)
Core competencies directly relate to the key activities or functions that the organization undertakes in
conducting its business. They are a narrower or more specific concept than the previous more global critical or
differentiating capability(s).
Developing and strengthening these capabilities and core competencies should therefore constitute a key
business focus or priority. In so doing, it is important to identify the key drivers that underpin the development
of these capabilities and competencies.
Case Study: A Water Authori ty
An example of the critical capabilities, core competencies and their key drivers (of the organization) is provided
below for a water authority.
You will note that these main drivers directly relate to the eight skills elements that comprise valuable skills in
Model 1. Thus the combination of Models 1 and 2 provide a rational basis for linking the importance of roles to
the business strategy. Roles that incorporate more of those key drivers, whatever quadrant they may lie in,
become more important in achieving the business strategy, and hence should receive more concentrated
attention in terms of selection and recruitment, development, performance improvement and retention.







Do You Really Have a Workforce Strategy? 15

XYZ Water Authority: Critical Capabilities, Core Competencies and their Main Drivers
XYZ Water Authority operates a number of dams and pipeline facilities to supply water to farmers in the
ABC region of Australia.
Critical Capabilities:
Balancing investment in storage and water distribution efficiency: Main drivers are costs, stakeholder
relations, and financial performance
Achieving equality of water supply to consumers, at a competitive cost: Main drivers are costs, and
stakeholder relations
Core Competencies:
Planning of water supply requirements and distribution: Main drivers are costs, stakeholder relations,
innovation, and financial performance
Design, construction and maintenance of dam storage facilities: Main drivers are costs, stakeholder
relations, innovation and financial performance
Design, maintenance and operation of efficient water distribution systems and pipelines: Main drivers are
costs, stakeholder relations, innovation and financial performance
Drafting of water supply contracts, negotiations with consumers (farmers), and developing quality
relationships with the same: Main drivers are sales & revenue and stakeholder relations
Financial planning and control concerning the costs, revenues and capital works associated with water
storage and distribution: Main driver is financial performance
Based on the above example, the drivers that feature more prominently and are therefore more important to
the business (both critical capabilities and core competencies) are:
Costs;
Stakeholder relationships;
Innovation; and
Financial performance.
Those roles that incorporate these drivers (refer to the Skills Based Workforce Segmentation Model and in
particular, the eight skills value elements) are therefore likely to be more important to the achievement of
business outcomes.
Furthermore depending upon the business strategy, some core competencies will be more important than
others at any particular time in the business environment or cycle. For example, it may be the case that a key
business strategy of XYZ Water Authority is to increase its dam storage capacity, given recent water
shortages. This being so, those roles directly involved in key aspects of implementing and achieving this business
strategy (e.g., sourcing suitable sites, planning approvals, design and construction of the dam, etc.) become
more significant (including the people occupying those roles).
We shall now turn our attention to the subject of human capital.



Do You Really Have a Workforce Strategy? 16

What is Human Capital?

Human capital is one of the least understood, measured and analysed investments. It is a weak link in the chain
of corporate investments.
Human Capital = Employees Knowledge + Skills + Experience + Initiative
Human capital includes the knowledge, skills, experience and initiative possessed by employees. Human capital
has economic value to firms it directly impacts upon organizational productivity and profitability. More
recently the term human capital has been applied to selection, training, compensation, and human resource
(HR) management practices in general (Cascio, 1991).

Model 3: The Five Ways of Increasing Human Capital

There are five ways an organization can build its human capital, viz.:
1) Acquisition (recruitment and selection)
2) Engagement and retention (HR and people management policies and practices)
3) Development (learning and development)
4) Borrowing (using consultants, contractors, outsourcing)
5) Merger/Acquisition.



Do You Really Have a Workforce Strategy? 17

Note. The most significant development in the composition of the workforce in Australia over the past 15 years or so has
been the shift to outsourcing and the contingent workforce (i.e., borrowing). This is clear demonstration of organizations
seeking increased flexibility of their workforce, minimizing risk and focusing more on their core activities.
The ultimate objective in building human capital is to enhance organizational performance and sustainability
whilst maintaining flexibility, all with an optimum level of investment.
In the Skills Segmentation Model 1, we referred to differentiated HR policies and practices in three of these
ways of increasing human capital (i.e., Acquisition, Engagement and Retention, Development).

The Essence of Developing a Workforce Strategy
No business can do everything. Even if it has the money, it will never have enough good people. It has to set
priorities. The worst thing to do is a bit of everything. This makes sure that nothing is accomplished. (Peter
Drucker)
A common definition of a workforce strategy is having the right people in the right roles at the right time.
However what is being advocated here extends beyond this definition to include having the optimal level of
investment in various roles to maximize business outcomes.
The essence of this integrated workforce strategy approach involves these three key considerations:
Strengthening capabilities and those core competencies deemed to be more important to
performance and the achievement of the business strategy;
Strengthening those key drivers that underpin the above capabilities and competencies;
Investing in those roles that are more closely linked to these key drivers (including critical roles) and
focusing on maximizing the performance of people in those roles.
Dont try to boil the ocean! Focus, focus, focus.
The thrust of this approach (i.e., focus on enhancing critical capabilities and core competencies) is supported by
recent research. A Duke client study found that HR professionals are shifting their focus from individual
competency to organizational capability. McKinsey also looked at the future and found that capabilities will
become more important than individual competencies.
Refer to the Advanced Workforce Strategies Model for aligning workforce and business strategies on the
following page.










Do You Really Have a Workforce Strategy? 18

Advanced Workf orce Strategi es Model :
Al i gni ng Workf orce and Busi ness Strategi es










The Benefits for CEOs and HR Professionals
CEOs and HR Professionals are under increasing pressure to demonstrate to board members and shareholders
how they are managing their most vital intangible asset. At the same time, HR is struggling to exert the
required influence and gain a seat at the table. Consistent with an increased focus on managing risk, corporate
governance and people, it has been argued that organizations need to develop a workforce / human capital
strategy. This strategy should be documented in the form of a Workforce Strategic Plan.

3. Organisational Structure Review and Information Gathering
Meetings with Business Unit Leaders and their teams
Determine future requirements (head counts and skills)
1. The Business Strategic Plan
Mission, values, vision, goals & objectives, business strategy
2. Capabilities/Competencies (Model 2)
Critical/differentiating capabilities
Core competencies (including those more important to the business strategy)
Key drivers and their relative importance
4. Workforce Segmentation: Role Analysis (Model 1)
Critical Roles
Professionals, Skilled & Semi-Skilled
Doers
Specialists
Role outsourcing analysis
Relative importance of roles based on skills value and weightings
5. Investment in the More Important Roles
Investment in Critical Roles and those other roles considered to be more
important to the achievement of the business strategy



Do You Really Have a Workforce Strategy? 19

In doing so HR professionals will:
Develop deeper workforce insights, differentiate roles (including the identification of critical roles,
specialist roles, roles suitable for outsourcing, etc.), and link roles and workforce strategies more
closely to the business strategy;
Develop a clearer conceptual framework for reviewing, refining and maximising the effectiveness of
HR practices in their organisation and mitigate risk;
Unlock the potential and surface the hidden aspects of their workforce that may be impeding
performance and profitability;
Fully engage their CEO and Executives, and significantly elevate their influence; and
Move from cost center to strategic partner and establish strong and enduring relationships with their
business partners.
Such a Workforce Strategic Plan constitutes an essential blue print for any CEO, his/her executives, and HR
Directors/Managers and Professionals. It constitutes the missing link in talent/workforce management.
Those who can effectively translate their business strategy into an actionable human capital strategy can drive a
new kind of competitive advantage one that is extremely difficult for others to imitate. Such a plan should
document how it is managing, or is intending to manage, its most vital intangible asset its people.
Note. Advanced Workforce Strategies has developed a Workforce Strategic Plan Pack (refer to Appendix B).





Do You Really Have a Workforce Strategy? 20

References
Beatty, R. W., Becker, B. E., & Huselid, M. A. (2009). The differentiated workforce: Transforming talent into
strategic impact, Boston, Massachusetts: Harvard Business Press.
Cascio, W. F. (1991). Costing human resources: The financial impact of behaviour in organisations, Boston:
PWS-Kent.
CIPD (2003). Voices from the boardroom. CIPD Press Release, 18 January, 2003.
Lombardi, M., & Laurano, M. (2012). Human capital management trends: Managing talent to lead organizational
growth. Aberdeen Group.
Lepak, D. P., & Snell, S. A. (1999). The human resource architecture: Toward a theory of human capital
allocation and development. Academy of Management Review, 24(1): 3148.



Do You Really Have a Workforce Strategy? 21

Appendix A: The Skills Segmentation Questionnaire (SSQ)
and Plotting of Roles
Note. Access to the SSQ (online) and associated plotting of roles is only available in the Advanced Version of
the Develop a Workforce Strategic Plan Pack.
Advanced Workforce Strategies has developed a questionnaire the Skills Segmentation Questionnaire (SSQ)
a 49 item questionnaire that enables roles to be analyzed, classified and then plotted according to the Skills
Based Workforce Segmentation Model.
The SSQ also allows for weightings to be applied to roles for the eight skills value elements, depending upon
their relative importance to the business strategy.

The Benef i ts of the SSQ
As indicated earlier in the skills based workforce segmentation model, various jobs or roles within an
organization can be classified according to four possible employment roles or skills quadrants:
Criticals;
Professionals, Skilled or Semi-Skilled;
Doers; and
Specialists.
Using the SSQ, any role in an organization can be analyzed and plotted with this generic tool, so comparisons
can be made regarding the importance and relativities of the role. Thereafter, appropriate HR strategies can be



Do You Really Have a Workforce Strategy? 22

applied to that role.
The Structure of the SSQ
The SSQ comprises four components:
1) Assessing skills value (includes the eight skills value elements referred to previously) relative to the
role;
2) The impact of these skills on the provision of the products and services to external customers (i.e.,
localized or widespread);
3) The optional weighting of each of the eight skills elements according to their importance to the
business strategy; and
4) Assessing skills uniqueness (includes both specific and generalized unique skills) relative to the role,
as reflected in time and or intensity of training to acquire these skills.
Thus the SSQ has more of an external orientation in respect of the provision of products and services to
external customers (and the relevant skills), which is the very basis for the existence of the organization.
























Do You Really Have a Workforce Strategy? 23

Appendix B: About the Develop a Workforce Strategic Plan
Pack

Advanced Workforce Strategies has developed a Develop a Workforce Strategic Plan Pack.
Based on latest research and contemporary thought leaders, this Pack incorporates the integration of six key
human capital concepts and models that include:
1) The five ways to build human capital
2) The three layered model of differentiating capabilities, organisational core competencies through to
job competencies
3) Segmentation of the workforce and differentiation of roles according to a skills based model (i.e.,
skills value and skills uniqueness)
4) Profiling Employment Value Propositions (EVP) for defining job roles, based on the concept of the
Psychological Contract
5) The four holy grail workforce measures of engagement and retention
6) The three types of Human Capital Data and reporting of this data in a compelling format.
This Pack provides concepts and value on an entirely different plane:
Going past traditional quantitative workforce planning to provide a strategic, actionable view to the
future;



Do You Really Have a Workforce Strategy? 24

Providing an integrated framework to plan and implement new solutions;
Linking the importance of roles to strengthening the differentiating capability(s), core competencies
and the business strategy including differentiated policies and practices according to various role
categories or classifications;
Providing the necessary workforce intelligence, derived from making more sense of your HR data
(both current and proposed), thus leading to more informed decision making and better outcomes;
and
Providing the strategy, methodology, and tools to deliver the necessary insight to more effectively
manage an organisations most vital intangible asset.
This Pack includes an extensive array of Guides, Samples, Templates, Tools and Resources as outlined below.
There are two versions of this Pack:
1) The Basic Version, which is able to be purchased and downloaded online; and
2) The Advanced Version, which includes access to the SSQ questionnaire and plotting tool and
consultancy input including an initial workshop.
For further information, go to the Advanced Workforce Strategies web site at:
www.advancedworkforcestrategies.com
or contact Advanced Workforce Strategies at:
info@advancedworkforcestrategies.com


What HR Managers say about the Workforce Strategic Plan Package
As one of the fastest growing shires in Australia, we recognised that we had to adopt a different
approach to managing our workforce in the future, including workforce planning. The concepts, models
and tools that form part of Advanced Workforce Strategies Develop a Workforce Strategic Plan Pack
have proved to be an invaluable resource, together with the valuable consultancy input and assistance
from Colin Beames. The Workforce Strategic Plan that we have developed for Cardinia Shire Council
has had buy-in from executives and provided us with new and deeper workforce insights. It has
enabled us to identify key risks and develop targeted action plans to address those risks. This
Workforce Strategic Plan now underpins all of our people management decisions going forward.
Di Ashton, Manager Organisational Development, Cardinia Shire Council




Do You Really Have a Workforce Strategy? 25


About the Author


Colin Beames
BA (Hons) Qld, BEng (Hons), MBA, MAPS.
Colin Beames is an author and thought leader in workplace trends and human capital, with a deep and
expansive knowledge of these subjects. In his first career life, Colin worked as an engineer in senior
management and consulting roles in the mining and resources sectors. Then in the early 90s, he made a mid-
life career change to organisational psychology.

The topic of Colins psychology honours thesis was mid-life career change, and his Master of Business
Administration included a dissertation on psychological contracts in the workplace and the development of the
Workplace Relationship Development Indicator (WRDI) diagnostic employee engagement and retention tool.

His organisational consultancy experience includes assignments in Australia and overseas, both in the private
and public sectors, across a wide variety of industries. More specifically, these assignments include: assessment
centres, career development, change management, coaching, development and commercialisation of diagnostic
surveys including administering and reporting on the same, employee engagement and retention, high
performance teams in alliances and large multi-disciplinary projects, HR, human capital measurement, M/A,
OH&S, organisational reviews and development, psychometric testing, selection and recruitment, start-ups,
strategic workforce planning and business improvement, talent management, and TNAs.

Apart from developing and commercialising the Workplace Relationship Development Indicator (WRDI)
diagnostic survey tool, Colin has also developed and commercialised a number of other diagnostic survey tools
(all based on a model of the psychological contract applied to different contexts), and other HR tools and IP.

He has written and published two books:
Aligning Workforce and Business Strategies: Mobilising the 21st Century Workforce.
Transforming Organisational Human Capital: Emerging Stronger from the GFC and Beyond (now in its
3rd edition). In this book, Colin examines emerging trends of management and organisational studies
over the past two decades and how these can be harnessed to guide management practice and improve
organisational performance.





Do You Really Have a Workforce Strategy? 26


About Advanced Workforce Strategies

Advanced Workforce Strategies (formerly known as the WRDI Institute), is a boutique Australian consultancy
firm specialising in the development and provision of a range of cutting edge human capital consulting services,
products, tools, and resources.
We believe in the adage that if you cant measure it, then you cant manage it! Our work is holistic, rigorous
and innovative, combining latest empirical research underpinned with sound methodologies, applied in the form
of practical solutions that work.
We are committed to enhancing people management and performance, and raising the importance of the
people factor in organisations arguably the biggest single driver of business success. To that end, we assist
organizations, their executives and HR professionals to:
Adopt better people measures and reporting;
Align their business strategies with their workforce strategies;
Address the people challenges and complexities of the 21st century workplace; and
Manage people risk and make better people decisions;
Improve performance and achieve enhanced business outcomes.
Our consulting approach is highly collaborative, resource rich, high yield and designed to maximise the transfer
of learning and knowledge. We aim to build capability and self-sufficiency in our clients, whilst minimising our
consultancy input.
Our client list includes local and state government organisations and private sector organisations from blue
chips through to SMEs.

Contact Details
Postal:
Locked Bag 4012
South Melbourne
VIC 3205, Australia

Tel: + 61 0411484923; Fax: + 61 3 9505 9044

Email: info@advancedworkforcestrategies.com
Web: www.advancedworkforcestrategies.com