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Does your organization need

an Head Count Estimate?

Detecon’s Value Proposition


July 2016
HC Planning Summary

Head Count (HC) planning and revision is mainly required


during or after designing a new organization.

Why Done? Impact Factors

Labour is often the biggest expense in a company, Head Count planning is impacted by the following
with significant impact on profit. key dimensions:
therefore  Strategy

 Organization
Companies strive for profitability through efficient
and economical use of human resources.  People

 Processes and Systems

Understanding the Terms

Work Force Planning Work Force Analytics Head Count Planning


 Systematic identification and analysis of  Uses a combination of data analysis  Systematic identification and analysis of
what an organization is going to need in tools and statistical methods to measure what an organization is going to need in
terms of the size, type and quality of workforce performance. terms of Head Count.
workforce to achieve its objectives.  Includes predictive analytics, which aims  Right skills in the right place are
 It determines what mix of experience, to project future operations. assumed.
knowledge and skills are required, and it
sequences steps to get the right number
of right people in the right place.

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HC Planning Summary

Many drivers require HC changes which are not part of the


regular HC planning process.

Drivers For Change in Head Count Planning

Regulatory Events/Change of law/ Political decisions Introduction of New Technology


Example: Example:
Network unbundling driven regulator Migration from PSTN to fully IP based network

New Operating Model


Example:
Establishment of customer segment-driven Market Development
organization with dedicated new business units Example:
Introduction of Smart Phones

Establishment of New Business


Example:
Establishment of Mobile Financial Services
Company Development
Example:
Significant drop in revenues
Re-organization because of new competition
Example:
Centralization of a regionally M&A
focused organization Example:
Acquisition of a competitive organization
with very similar function

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HC Planning Summary

HC planning and optimization is a stepwise exercise to


reach best in class targets.

HC Optimization Steps

Effort Effort with focus on HC

Improvement of Org./ Done in the early stages of


Processes/ People/ “First HC Client’s transformation when The starting
Systems
Optimization” focus is on implementation of
the new business model.
point

Done in the second phase of a New business


transformation when Client’s model starts to
“HC Efficiency processes are in place,
get traction and
Optimization” business automation is
improved and full transparency performance is
of employee capabilities exists. improving!

Done in an improved The business


“HC Best in Class organization when organization, model reaches
Optimization” processes, people, and systems
are fixed and stabilized.
higher maturity
level

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HC Planning Approach

The manpower demand can be estimated using a


workload-driven approach.

Detecon’s Proven HC Approach

1 Strategy Remarks:
 Client’s strategy provides guidance for
Top-Down Approach - Benchmarking HC demand and need, leading to HC
planning
2 Benchmarking Manpower to validate estimates for new
organizational structure  Manpower requirements from
benchmarked telecom operators differ
significantly according to several
Reconciliation factors that include:
 Company strategy
Bottom-Up Approach and Findings  Organizational structure
3 Analysis of Manpower requirements based on
 Market dynamics
management discussions, functional statements and
best practice insights  Organizational maturity level
 Incumbent peculiarities
 Mobile operators vs. Fixed &
Headcount Plan Integrated operator
4 Challenging Head Count and providing  Benchmarks are only used as
recommendation validation for bottom-up manpower
estimates

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HC Planning Approach

Strategic intent determines organizational structure and


related Head Count per unit and department.

1 Connection Between Strategy, Organization and HC


CEO
Functional Strategy

Legal Audit

Target Organization
Performance Management
Corporate Communication
and Reporting

Executive Secretary

Strategy and
Human Technical
Corporate Commercial Finance
Resources Department
Development

Account HR Strategy and Planning nd


Strategy Accounting Performance
Management Development
Management

Process and Interconnection Planning and


Quality HR Management
Management Controlling
Management Information
Technology
Partnership Billing and HR Business
Program Management Settlement Partner
Management
Help Desk Applications Infrastructure
Commercial Facility and Fleet
Procurement Management
Product Support
Management Operations and
Maintenance

Network Planning Service and


Provisioning NOC Technical Support
& Resource Mgt. Quality Assurance

Corporate Strategy
Approach to develop
Corporate Strategy

Detecon translates business strategy and its functional strategy


needs into labor demand, taking into account:
 Top-down business assumptions and financial objectives
 International Benchmarks
 Productivity KPI’s
 Best practice and project/program experiences
 Feedback gained from interviews with Client’s line function

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HC Planning Approach

Telcos are comparable through mapping each operator’s


specific organizational entities to functional domains.

2 Benchmark - Numbers of FTE’s (Workforce) per Domain


Benchmark Partner 1 Benchmark Partner 2 Benchmark Partner 3 Benchmark Partner 4

11% 2%
4% 12% 5% 7% 12% 5% 7% 14% 7%
1% 5%
1% 1%
22% 4%
21%
28% 28% 28% 28% 19%
33%

27%
19% 19% 30%

Average Percentage of Workforce per Average Percentage of Workforce per


Domains
Domain - All Operators Domain - Client

6%
Finance 5% 10%
10%
2% 6%
IT 12% 5%
Marketing & Sales
27% 26% Technology
Customer Care
 18%

HR
50%
23% Corporate Services

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HC Planning Approach

DTC will provide its clients with estimates of the optimal


FTE’s per business function down to an appropriate level.

3 Manpower Requirement Estimates

Function/Title Level Activities Manpower Rational #HC Vacancy Operational HC #FTE

HR 28 4 44 22
Human Resources
HR Resourcing 0 10 6
Develop recruitment plan based on manpower plan.
1 FTE in a senior
Resourcing L-2 Develop/execute recruitment processes, procedures & 1 0 2 1
managerial role
policies. Manage capacity requests from all departments.
1 FTE in an
Manpower Planning & Define and coordinate manpower requirements and manage
operational/
Staffing - Marketing, L-3 planning of workforce and staffing requirements for the 1 0 2 1
assistant
Sales & Finance company.
management role
Define and coordinate manpower requirements and manage
Manpower Planning & 1 FTE in an
L-3 planning of workforce and staffing requirements for the 1 0 2 1
Staffing - Operations operational role
company.
1 FTE in an
Manpower Planning & Define and coordinate manpower requirements and manage operational role
Staffing - Support L-3 planning of workforce and staffing requirements for the 1 FTE in 2 0 2 2
department company. operational-support
role
Organizational Conduct org design activities, organizational processes, 1 FTE in operational
L-3 1 0 2 1
Development policies and guidelines. role
Performance & Reward 6 2 7 3
HR Operations 3 0 5 2
Payroll & Benefit Admin 5 0 10 5
Training & Development 8 2 12 6

• Operational Head Count includes all local employees, expatriates and contractors as they are needed to run the business
• FTE= Full Time Equivalent.

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HC Planning Approach

Organizational analysis, Benchmarks and applicable Key


Performance Indicators justify the proposed final HC.

4 Sample of Total Head Count (HC) Split


Overall Unit - A Unit - B
Headcount
-7%
300 30 67 2 29 4 86 10
-30% -59% -48%
10 55
278
178 70 3
200 47
0 25 73
12 45

- 25%
HC

HC

HC

HC
Expats

Expats
Contr.

Contr.
FTE

FTE

FTE

FTE
Contr.

Contr.
Expats

Expats

Prop.
Prop.

Prop.

Prop.
199
1,368

57 934 Unit - C Unit - D Unit - E …


1,024 -21%
132 13 316 66 20 372 56
-80% -32% -14%
30 43 29
250
53
54 3
27 219 4
89 39 234 320
45
Proposed
Headcount

Expats

LTC*
Contracts

FTE

HC

HC

HC

HC

Prop.
LTC*

LTC*
FTE

FTE

Prop.

FTE

Prop.

FTE
Expats

Expats

Expats

Expats
Contr.

Contr.

Contr.

Contr.
Prop.

* LTC = Long Term Contractor

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HC Planning Reasoning

Our unique set of references and experienced staff enable


us to get the job done.

Why us for HC Planning?

Holistic Telco Consultant with numerous


1 projects in all corporate functions/domains

Senior staff with a large amount of


2 line function work experience in Telco carriers

In-depth Telco expertise from globally executed


3 Plan/Build/Run projects

Proven Methodology for HC Planning and


4 HC Optimization programs

Largest Telco Benchmark/Research Database


5 guarantees applicable peer comparisons

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Your Detecon Contact

Silvia Flachowsky
Detecon International GmbH
Managing Consultant
Phone: +49 171 2234959
E-Mail: Silvia.Flachowsky@detecon.com

Thomas Wehr
Detecon Asia-Pacific Ltd.
Managing Director
e-Mail: Thomas.Wehr@detecon.com

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