You are on page 1of 22

Cisco Systems: Working with the Business Units on Workforce Plans

April Sandoval
Director, HR Business Intelligence and Workforce Analytics Nancy Bremer Heine Services Program Manager
June 2013
2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1

Who is Cisco? Why Workforce Planning and Why now?

Approach to Workforce Planning: Phase 1: Enterprise 3 Year

Plan: The What


Approach Scope Process Deliverables

Whats Next: Phase 2: Functional Plans The How


Approach Scope Deliverables

Key Learnings
2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

Solve Environmental Challenges

Thrive in Smart Communities

Live Enriched, Healthier Lives

Redefine Work Models

Focus on Improved Safety

Achieve Energy Efficiency

to
Return to Outline

2010 Cisco and/or its affiliates. All rights reserved.

Cisco Confidential

Our employees and partners are our strength. They help make Cisco a strong competitor in a rapidly changing world.
World Class Expertise 20,000+ Engineers

Services and Ecosystem 11,000+ Services Professionals Nearly 70,000 Partners

Diverse and Global 165+ Countries / 470+ Offices Nearly 70,000 Employees

Culture
Customer Centric Leadership across Service Provider, Enterprise, and Public Sector Societal Impact 10,000 Networking Academies Nearly 170,000 Volunteer Hours

71K+
employees
2010 Cisco and/or its affiliates. All rights reserved.

97+
countries

375+
sites

Return to Outline

Cisco Confidential

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

Our strategy is guided by the market transitions

that affect our customers and our

future workforce
FY06 $28.4B FY01 $22.3B FY97 $6.44B
All in One: Data/Voice/Video Network of Networks Network as Platform

FY12 $46B
Next Cisco & Op Excellence/ The Internet of Everything/ #1 IT Company

FY09 $36.1B
Collaboration/ Web 2.0

1997
2010 Cisco and/or its affiliates. All rights reserved.

2000

2006

2008-2011

2012-2013
Cisco Confidential 6

Return to Outline

Many companies start this work in small pilots... but at Cisco we opted to rally the troops and decided to do everyone at once.
-Mark Hamberlin, VP of Staffing and Workforce Planning

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

Cisco Workforce Planning Framework


0
1
Obtain Strategic Alignment

BEFORE STEP 1: Business Strategy Alignment and Environmental Scan/Scenarios

1
Quantify future state demand scenarios and supply gaps
Quantify Future State Demand Scenarios 2 and Supply Gaps

2
Prioritize options to address the gaps

3
Prioritize Options 4 to Address Gaps

implementation plan and mobilize

Build Implementation Build Plan, Mobilize

1.a

1.b

Identify future state workforce requirements


Understand strategy scenarios Agree right unit of analysis Competitive benchmarking on workforce composition Consider other constraints (e.g. internal cost targets) Develop demand scenarios (geo, capability, grade level)

2.a Prioritize supply gaps


(by business criticality/size)

Current state workforce assessment

Codify resulting workforce plan and capability roadmap

2.b

Identify options to address supply gaps


(e.g. recruiting, retraining, redeployment, regrading, divestments)

1.c

Determine supply gaps


Assess size and trends of addressable labor pools (internal and external) Estimate expected share of labor pools Identify gaps under different demand scenarios (both over and under-supply)

2.c Prioritize options based on aggregate impact

Create detailed implementation plan of initiatives to deliver on workforce plan

Design sustainable workforce planning capability (incl. cost/ benefit, risk)

Design sustainable workforce planning capability


Aggregate best practice benchmarks, tools and reusable fact base Clarify automation and other process interfaces (incl. strategic planning)

Establish initiative governance

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

FY 14 LRP
(Due May 2013)

FY 15 LRP
(Jun 2013-May 2014)

FY 16 LRP
(Jun 2014-May 2015)

FY17 onwards

Initiate dialogue on talent planning to enable business strategy


Business aligned talent strategy Initiate dialogue on talent strategy 3 year headcount growth plans by location

Build Strategic Talent Capabilities & Structure


Workforce plan current and future state capabilities, sourcing Metrics and analytics dashboard Talent acquisition Plan globalization, site strategy and sourcing Leadership & succession plan

Institutionalize strategic workforce planning and infrastructure


Workforce acquisition and management process optimization plan
Recruiting strategy Onboarding plan Performance Mgt plan Learning/training plan

Workforce optimization targets & plans (SPOC, Org pyramid)


Executive Talent Diversity/ Performance Per

Workforce systems and infrastructure implementation Change Mgt

Refresh annually

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

Engineering Services

Streamlines several process efforts into one

Sales
Finance IT

body of work that addresses Executive Talent, Organizational Health and Workforce Capabilities. presented by all major functions

Workforce Talent Plans will be created for and

Required Content:
Talent Implications of the Business Strategy Summary of Committed Actions Targets & Projections on Key Talent/Workforce

HR
Supply Chain Legal

Measures

Marketing
Global Shared

Services
2010 Cisco and/or its affiliates. All rights reserved.

Executive Talent Measures Workforce Effectiveness: Spans, Layers, Org Pyramid & Sites Workforce skills & capabilities: Bottom Performance Management & Diversity Return to Outline

Cisco Confidential

10

Discussion Points: 1. What external market trends will impact our Categories OC REQUIRIED ability to get the talent we need? Metrics Executive Location Executive (VP+) 2. Based on our current employee makeup, site Aspirational Diversity Levels strategy and org pyramid, what are the most Category Expertise concerning trends? CLEAD Capabilities Critical Role Succession 3. What capabilities will be most critical to VP+ 9 Block Summary accomplish your key strategies? Specific Spans/Layers Workforce Effectiveness Pyramid? (including University Hiring) roles, skills/competencies Site Geographies 4. What are the highest priority gaps and address Aspirational Diversity Levels Workforce Skills & Capabilities when/how will you them? Internal Performance Management Goals (E.g.. Bottom with training or External talent? Performer Management )

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

11

Support Team
Workforce

Playbook: How to Guide on definition, approach, support, and resources and tools available. 100 pages Tools: on-line tools for current state, SPOC modeling tool Org Pyramid modeling tool

Planning Rep
HR Workforce

Analyst Rep
Performance

Mgmt Rep
Executive Talent

Rep
Diversity Rep
Where applicable,

Mandatory templates: each function filled out and current numbers were pre-populated for consistency

Site Rep Finance Controller


2010 Cisco and/or its affiliates. All rights reserved.

Executive readout: summary level and quarterly monitoring

Return to Outline

Cisco Confidential

12

SAMPLE
Spans
+5% +10%

Pyramid After years of 20%, going forward 10% then13-14 5%


12 10-11 8-9

Plan in place to cost avoid $20M over next 2 years linked to divest and Early Career Hiring

13-14 12 10-11 8-9

Opportunity to 1-5 remove 1 layer by realigning 788 employees through org Grades optimization Non-Exempt
1-5

6-7

42%

6-745% 1-5

$20M cost avoidance by FY15

Baseline

Benchmark

FY13 Projected

FY14 Projected

FY15 Projected

1.2% 2.8% 20.7%

1.2% 2.8% 10.7%

1%
4% 15% 22% 20% 19%

1% 6%

Layers Baseline FY13 Goal FY14 Goal FY15 Goal 8 8 7 6


-788 Employees (6%)

6-7

27%
14% 29% 7% 12% 3%

8-9
10 11 12 13 14

12.1%
24.6% 31.5% 2.0% 3.5% 1.2%

22.1%
24.6% 21.5% 12.0% 3.5% 1.2%

13%
4% 1.5%

1.25%
Cisco Confidential 13

2010 Cisco and/or its affiliates. All rights reserved.

Exec

0.4%

Return to0.5% Outline 0.50% 0.4%

Work will happen at three levels coordination will be key Enterprise-wide: Single Talent Scorecard Platform/Horizontal: rotational programs Specific Function: shared services hub locations

Drive coordinated plans to deliver on todays actions Debrief

individual with each of you


Raise up your best practices and extend across the enterprise Consider implications to HR priorities and capabilities Updated WFP annual planning process designed and

socialization (July/Aug)
Launch annual WFP process aligned with business and financial

planning process (Q1)


Move to Phase 2:

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

14

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

15

Cisco Services is embarking on growth journey that will drive profound changes in our workforce and in how we work together
- This future growth and new business models pose capacity and capability challenges - Three to five year time horizon on strategy execution provides opportunity to more proactively plan talent supply to have the right skills at the right staffing levels in the right place at the right time at the lowest possible cost

In close coordination with Cisco HR, Cisco Services is developing a proof of concept of how strategic workforce planning should be done
- GSP: apply and refine methodology using the example of a global shared delivery service - Brazil: apply and refine methodology in an emerging market across all of Services

It is crucial that we get the process right, and build the muscles to do it again and again
- Discover what works.. and what doesnt - Determine how to overcome implementation challenges for GSP and Brazil - Capture the learning in a robust, ready to deploy WFP playbook

Were currently roughly half way through the process within Services
- Both pilots are on track - Playbook outline established

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

16

The Team
Steering Committee Edzard Staff
Chris Heckscher Advanced Services Tom Berghoff Technical Services Michael Carter Services HR Mark Hamberlin Enterprise HR

Executive Sponsors:

Initiative Leads:

Marcelo Mariaca Business Co-lead

Gianna Nall HR Lead (Bus)

Nancy Bremer (Heine) Business Co-lead

Deborah Casaubon HR (ENT)

April Sandoval HR Data Serv.

Alignment & Enablement: Project Execution:

Strategy

Engineering

Services Academy

Enterprise

Vicki Rios Program Manager

Tommy Henderson Services Academy Liaison

Greg Nakamura HR Analyst

Julie Vargo Services Staffing Lead

WFE Operational Leads:

Laura Brown / Danielle Monaghan TS


2010 Cisco and/or its affiliates. All rights reserved.

Russell Hoch / Tim Bonnet Services Sales

Greg Fountain / Brian Koldyke / Christy Nakashima AS


Cisco Confidential 17

What will Strategic Workforce Planning Cisco Framework Detailed inputs and outputs
Strategic inputs (LRP etc.)

Overall Strategy (e.g. Services strategy)


Other inputs (productivity, attrition, cost, margin constraints etc.) High level headcount output

Overall headcount Model (e.g. Services model)

Current state, detailed strategic inputs, operating parameters

Strategic Workforce Planning (Across organization, e.g. GSP, Brazil) Across roles, including for critical roles
Detailed WFP

Grade mix, foot print, spa ns etc.

Workforce Effectiveness (Foundation) Early in Career (EIC) Insertion Organizational Pyramid

Spans & Layers

Geography Footprint

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

18

What have we achieved so far and what is left to do?


GSP
Analysis of current state completed
WFP methodology (to forecast future state) validated

Brazil
Analysis of current state completed
WFP methodology (to forecast future state) validated Strategic inputs received for all groups except for SS Preliminary view on future demand developed (to be refined for SS)

Cross pilot
WFP work-plan and governance process set-up (core team, working session, steering com etc.)
Change management planning kicked off Playbook structure outlined & development kicked off Capability transfer ongoing

PROGRESS

Strategic inputs received and required scenarios agreed (except split by GDC still under discussion) Future demand analysis/scenarios completed Initial assessment of talent supply developed Initial view on options to fill gaps created Complete validation of future demand (GDC split still pending)

Gather strategic input for SS as well. Further validate strategic scenarios Finalize & validate view of future demand Develop & finalize view on talent supply & gaps

LEFT TO DO

Finalize view on talent supply & gaps Outline options to address gaps Develop implementation plan and mobilize Get approval from Steer Group

Complete change management plan & kick off Codify learning and finalize playbook Continue capability transfer

Outline options to address gaps


Develop implementation plan and mobilize Get approval from Steer Group

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

19

Senior Executive Sponsorship from Business and HR critical


Clarity on what this is important The case for change Start with the business strategies to talent Implications and

requisite actions
Clear organizational strategy and leader alignment down into org Link to the business planning cadence and rhythm is necessary

for it to scale and sustain


Early on land on a single methodology; tough when some efforts

are underway
Engage experts to accelerate effort, but make sure to build

capability in house
2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

20

Process is business led and owned and HR supported


Wear your company hat as opposed to function hat critical to

design optimization and acceleration (Finance, Corp, Biz Ops)


Parallel approach start small for enterprise wide effort; pilot for

more significant initiative with a critical skill


Taxonomy and early and often stakeholder engagement is key Need strong analytics and modeling

Need for job families, roles, skills architecture and inventory


Funding and resourcing

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

21

2010 Cisco and/or its affiliates. All rights reserved.

Return to Outline

Cisco Confidential

22