Strategic Workforce

Planning
Playbook
July 2020

CONFIDENTIAL AND PROPRIETARY

Any use of this material without specific permission of McKinsey & Company
is strictly prohibited
Strategic workforce planning & development can help unlock
Engro’s future growth potential

… and businesses that can mobilize talent

We are in an era of unprecedented change…, faster stand to win, probability of total return to
average time in the S&P 500, Years shareholders being higher than competitors, percent
90

63%

61

29%
25
18 15

1935 1958 1980 2011 2015 Slow Dynamic

Speed of talent reallocation

Source: The Economic Value of Emotional Intelligence Competencies and EIC-Based HR Programs McKinsey & Company 2
What does it mean to do strategic workforce planning?
Strategic workforce planning
ensures the organization has the
right people with the right skills
in the right place at the right
time to achieve the business
strategy
From
Headcount changes
determined primarily by
availability of resources
Passive understanding of
talent gaps
Hiring and firing as the only
levers to manage headcount
needs
To
Future headcount and
capabilities planned to meet
long-term strategic needs
Active management of future
talent needs to avoid
headcount and capability
gaps
Dynamic use of the full suite
of talent levers to ensure
talent enables strategy
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Our vision is that the Engro will continue to conduct strategic
workforce planning on annual basis following a 5-step process
Illustrative

​1
Translate the business
​2 ​3 ​4 ​5
strategy into Prioritize key talent Identify future Identify future
supporting initiatives pools linked to the headcount gaps for capability gaps within Plan and execute
and identify main prioritized strategic through supply and prioritized headcount talent strategy to close
sources of value initiatives demand models gaps gaps
30
20
A surplus of 10 with current E.g., decrease hiring rate
1.5x revenue
Actuaries hiring rate, all have relevant
by 2024 Medicare experience
15
10
A deficit of 5 with current E.g., reduce attrition rate
Increase in Medicare Provider
attrition, and not all have
membership by 2024 representatives
Medicare expertise
Example
output from 15 15
each step
Our 15 marketing analysts do E.g., upskill existing
206k new members Marketing analysts
not have digital skills workforce
by 2024

2023 2023
Demand Supply

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1. Translate business strategy into supporting
initiatives and identify main sources of future value
Sample artifacts: Value agenda

​How to use
​Distribution of relative value
among lines of business
can be determined with a
peg for value in the
organization, e.g., revenue
or profit

​Relative weights are

assigned to strategic
imperatives based on
growth drivers identified
through executive
interviews and strategic
documents

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1. Translate business strategy into supporting initiatives and
identify main sources of future value
Journey example
Owner of the step

Sub-step Input Action Approval Output

​1.1 Identify ​ et’s take a look at the 3
L Link goals to growth levers:
prioritized years financial /
strategic goals strategic goals Financial and Strategic goal:
from strategy ​OK looks good!
Grow Medicare revenue to 20% of total by 2024 ​ ffer
O
documents
and financial
Strategy & FP&A supplemental
data benefits
​ ere are the growth
H
levers we would use in Key growth levers ​Become preferred
my function State Ops Sales  Offer supplemental benefits health plan with
sponsors
Steering  Become preferred plan with sponsors (digital) Executive
Committee (digitally)
committee

​1.2 ​Given the strategic Work with SMEs to understand what initiatives
imperatives and my are supporting the strategic imperatives:
​Determine the ​ new cost and
3
functional expertise…
specific  care management
COO: We have an opportunity to manage our
initiatives that initiatives to
Strategy & FP&A costs to offer supplemental benefits State Ops Sales
will be increase oppor-
​Our goals are:
launched for  State Programs: More Medicare members
BU Leads tunities for supple-
the prioritized • Reach new mental benefits
means more care management, particularly if
strategic goals populations
we are offering supplemental benefits ​Additional
State Ops Sales
• Provide marketing and
Steering  Sales: We can re-focus our sales to Hudson ​This makes sense
supplemental sales to new
Committee Valley to increase membership there to me!
benefits to members populations

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2. Prioritize key talent pools linked to the
prioritized strategic initiatives
Sample artifacts: Prioritization excel

​How to use
​Use the information from
executive interviews and
strategic documents to select
around 5-10 “high criticality” job
families for each strategic
imperative

​Select an additional 1-5

“medium criticality” job families
for each strategic imperative

​Following the steps outlined in

the manual, determine the
relative ranking of criticality for
all job families

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2. Prioritize key talent pools linked to the prioritized strategic
initiatives
Journey example
Owner of the step

Sub-step Input Action Approval Output

​2.1 Identify ​Our “work to be done” is Work with SMEs to identify key talent pools for
and prioritize to launch 3 new cost supporting initiatives:
talent pools and care management Cost and care management initiatives ​OK that makes
needed to initiatives sense! ​Actuarial, provider
achieve services, and
SWP lead
strategy marketing are the
​Given initiatives and my key job families
functional expertise... Top job families needed
needed to achieve
Here are the job Actuarial the overall strategy
families needed Ops
Ops Provider services BU Leads
BU SMEs
Marketing

​2.2   ​Given our strategic Work with SMEs to identify downstream effects on
Identify initiatives, what are supporting roles:
additional additional roles needed
talent pools to support the work? The new membership in Medicare and new ​Additional 30 care
needed to SWP lead benefits require significant increase of clinical managers needed
Clinical
provide staff to support members to support growth
ongoing Supporting in MA membership
support to the ​Given the initiative and BU SMEs
strategic my functional
imperative expertise…. Clinical ​This makes sense
Supporting to me!
BU SMEs

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3. Identify future headcount gaps for roles
through supply and demand models
Sample artifacts: Supply / demand projections

​How to use
​The supply model projects
employee population
growth in the organization
over the next 3-5 years
​The demand model projects
headcount needs for the job
family based on financial
projections and ratio of FTEs
needed per unit of growth

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3. Identify future headcount gaps for roles through supply and
demand models
Journey example
Owner of the step

Sub-step Input Action Approval Output

​3.1 ​Key job families identified: Model supply with the past talent movement data:
Model future provider services, actuarial, ​I think the model
workforce supply Past movement Headcount prediction looks right ​Refined supply
marketing
based on patterns Hired Left FP&A model for next 3-5
from past 3-5 SWP lead Provider Analyst years
years representatives I agree with the ​Aligned-on supply
​Here are the HRIS data with Actuaries hiring projections, projections
past talent movement HR but attrition rate
COO
information for specific roles Marketing seems over-
Analyst BU Leads estimated
specialists

Given past headcount and financial targets, forecast demand and

​3.2 ​Here is our current total ​This makes sense, but we will
validate with each function:
Evaluate future headcount also have to build our
workforce Enrollment growth by LOB Current and future headcount analytics workforce at a ​Refined demand
demand to higher rate to achieve our model for next 3-5
​Here is how we allocate SWP lead
identify headcount by each of our strategy ​Aligned-on demand
headcount gaps products projections
2019 2022
Headcount allocation by LOB

​Given enrollment targets for COO

each product in the next 3-5 FP&A Strategy BU Leads
years…

​3.3 ​Here is the supply data and the Upload supply and demand data to SWP Tool to identify gaps:
demand data from the models. ​This makes sense. Let’s see ​All headcount
​Identify Headcount demand and supply for what levers we can use to
Let’s upload them to the tool… We have a gap of gaps identified
headcount gaps provider reps close the gap in the future.
20 provider reps in and aligned-on
from looking at SWP lead
​Demand the future. How are
supply and we going to close ​SWP Tool with
demand together that gap? loaded data, ready
in SWP tool for action planning
​Supply COO
BU Leads
​19 ​20 ​21

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4. Identify future capability gaps within
prioritized headcount gaps
Sample artifacts: Capability prioritization workshop

​How to use
​Conduct capability prioritization
workshop with one of the
prioritized job families
​The session is 2 hours overall,
meant to cover:
 Current state of skills in one
job family
 Future skills needed to fulfill
the strategic priorities of the
organization and external
demands of the market

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4. Identify future capability gaps within prioritized headcount gaps
Journey example
Owner of the step

Sub-step Input Action Approval Output

​Identify key Identify capability needs and evaluate if needs are ​ ist of capability
L
capability ​From step 2 , here are currently met ： Steerco
gaps by subfunction
gaps to the prioritized job Strategy BU leads
to build when
address families Future Current solving gaps in
when closing SWP lead Capability Need status step 5:
headcount
 Big gap in
gaps ​Provider MA
digital
​Here is a capability services experience
marketing skills
assessment of our
current talent using the HR ​This makes sense
​Actuarial MA to me!
outside-in analysis HR Analyst experience
and/or HRIS data ​Let’s focus on
increasing digital
skills in our
​Marketing Digital skills
marketing job
​Here is a list of future family by 2023
COO
capabilities we would
like to see in this job BU Lead
family to achieve our
initiatives

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5. Plan and execute a talent strategy to close the
gaps
Sample artifacts: Action planning workshop

​How to use
​The purpose of this workshop
is to align on projected state of
supply and demand and
develop an action plan to close
both headcount and capability
gaps

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5. Plan and execute a talent strategy to close the gaps
Journey example
Owner of the step

Sub-step Input Action Approval Output

​5.1 ​Gaps identified in step 4 For each gap identify the timing and use of different ​ roposed lever by
P
Identify levers talent levers subfunction and
to fill each ​ROI of each lever
​I think this is year :
talent and identified from past Demand Supply reasonable
capability gap planning data ​Reduce hiring
HRBPs Actuaries Decrease hiring rate
next year
actuaries
​Reduce attrition in
C
​ riteria for prioritizing Provider Reduce attrition rate
representatives starting now provider reps
each talent lever (e.g.
outsourcing strategy, Marketing Upskill between now
HR ​Upskill marketing
COO
redeployment strategy) specialists and 2023 Steerco BU Leads specialists
BU Leads

​5.2 ​Take the talent strategies, discuss with supporting

Execute talent ​Here are the talent strategies identified functions responsible for execution
strategy and in the last step:
​Given we will be recruiting for digital
inform talent  Reduce hiring actuaries marketing, we will need to up-skill HR ​Alignment on talent
support  Reduce attrition in provider reps recruiters with more “digital” literacy strategy
functions to Talent
 Upskill marketing specialists ​Additional
enable their Management and
​Ok, we will ​We need new refinement of
own planning
Change
Acquisition
reduce hiring of management
technical L&D leads to demand for
Acquisition L&D
actuaries and run develop up-skilling functions supporting
an attrition study programs, and must
​That makes sense talent strategies
– we have the partner with change
HR capacity for that mgmt. to me!
HRBPs

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