Integrated planning handbook for deputy ministers and senior managers

Table of Contents

• The current context for integrating human resources (HR) and business planning
• Integrated planning environment
• Line managers guide to integrating HR and business planning
• Integrated human resources and business planning checklist
• Integrated planning calendar
• Succession planning and management guide

The current context for integrating human resources (HR) and business planning

Introduction

Integrated HR and business planning is the foundation for assessing and understanding the current and future needs of departments, agencies and the Public Service (PS) as a whole.

Integrated planning is central to the successful implementation of the Public Service Modernization Act (PSMA) and to the promotion of healthy organizations that retain competent, committed and engaged employees across the PS.

Integrated planning is an important building block in continuously improving and building the human capacity of the PS to deliver services to Canadians (Results for Canadians). Integrated, rigorous planning can mitigate risks associated with aging workforces, tight labour markets, technological change, and so on.

Integrated planning can help identify optimal strategies and activities for such important HR management components as recruitment, retention, learning, development, employee engagement, promotion, succession, employment equity (EE) and official languages (OL).

Some departments and agencies are recognized as having taken innovative approaches to planning. Overall, however, there is widespread recognition at all levels of government that over the last ten years, the HR planning capacity across the PS of Canada has diminished. The time is right to rigorously rebuild capacity in HR planning. The need for sound HR planning, integrated with business planning, has never been more important.

Why integrate HR and business?

• It aligns an organization’s workforce with the government’s priorities, and the organization’s mission, strategic plan and budgetary resources;
• It is central to the successful implementation of modern HR management as referenced in the Public Service Employment Act (PSEA);
• It supports HR strategies (e.g. training, career development, organization design and classification) that are tailored to meet the current and future needs of the organization;
• It supports the achievement of business excellence by promoting initiatives to attract and retain an engaged, sustainable, competent and diverse workforce;
• It leads to a supportive workplace and continuous learning culture through planning efforts associated with both employee and organizational learning;
• It informs the development of business cases to justify resources identified through current and future HR needs analysis;
• It assists managers in realigning their workforce (e.g. reduction, expansion, change in business lines);
• It ultimately helps managers meet their responsibilities and accountabilities;
• It helps develop and ensure sustained, strong leadership across the PS; and
• It facilitates performance improvement and reporting through the development of performance measures, which is an important aspect of any planning-related endeavour.

Defining HR Planning

HR planning is defined as follows:

Integrated HR and Business Planning Principles

Some key principles of integrated HR and business planning are as follows:

Planning takes place at all levels: Reflecting business needs and strong people management practices, rigorous, integrated HR and business planning takes place in all organizations and at all levels across the PS.

Planning is information driven: Planning processes and decisions are based on factual and timely information on current and future needs (demographic data, environmental scans, employee feedback, labour market information, etc.).

Planning identifies risks and challenges: Planning processes identify challenges and key risks in delivering on priorities, and outlines options to mitigate critical issues.

Planning is transparent, values-based and well communicated: Plans are communicated to employees and stakeholders.

Regular reporting on integrated planning takes place: Planning efforts and results are reported on annually by all organizations.

Planning efforts are monitored, measured and evaluated: Processes are established in all organizations to monitor performance and progress in achieving HR objectives outlined in the integrated plan.

Key Drivers to Improving the Integration of HR and Business Planning

Some of the key drivers that speak to the importance of improving our HR planning capacity are as follows:

1) The requirements of the Public Service Modernization Act (PSMA)

The legislative base for HR planning is the amended Financial Administration Act (FAA) and the new Public Service Employment Act (PSEA) contained in the PSMA. Other related Acts include the Employment Equity Act and Official Languages Act. The PSMA highlights expectations for deputy heads and the employer.

Deputy heads may

• establish qualifications for their positions, including essential and asset qualifications and operational needs (including official language proficiency); and
• determine the learning, training, development, staffing and recruitment requirements of persons employed in the PS.

The employer’s responsibility involves:

• identifying the current and future needs of the PS;
• determining the HR requirements of the PS and providing for the allocation and effective utilization of HR in the PS; and
• preparing annual reports to Parliament on the administration of the HR management provisions of the amended FAA, on the employer’s responsibilities under the new PSEA and on the state of EE in the PS.

For additional information on the PSMA, visit the Agency Web site.

2) Guidance for Deputy Ministers (DMs)

The Guidance for Deputy Ministers document, sent to all DMs, clarifies how DMs fulfill their role in the Government of Canada. It speaks to:

• securing the right people, work environment and focus on capacity building to assure their department’s success and a confident future for the PS;
• ensuring that information on the workforce is gathered and used to make departmental decisions, and that departmental reporting is balanced, defensible and easy to understand;
• ensuring effective integration of HR planning with the planning of departmental activities. DMs must ensure that key recruitment elements and strategies are included in their HR plans, and that the plans are communicated widely; and
• ensuring their department has the necessary staff and that an appropriate balance of skills is maintained to deliver programs and services to the public.

For additional information: Guidance for Deputy Ministers

3) The TBS Management Accountability Framework (MAF)

The MAF, distributed to all DMs, has important implications for HR planning. The MAF outlines the expectation that each department and agency “… has the people, work environment and focus on building capacity and leadership to assure its success and a confident future for the Public Service of Canada.”

HR Outcomes in the People Component of the MAF are as follows:

For additional information on the MAF, visit the TBS Web site: http://www.tbs-sct.gc.ca/maf-crg/index-eng.asp

4) The Staffing Management Accountability Framework (SMAF)

The SMAF serves as a guide to departments and agencies when they report to the Public Service Commission (PSC) on the management of their staffing systems and the use of their delegated staffing authorities. In turn, the SMAF will serve as a critical context piece when the President of the PSC reports to parliament on the health of the PS staffing system.

For additional information on the SMAF, visit the PSC web site

5) The Clerk of the Privy Council’s Corporate Priorities

The priorities sent to all DMs and heads of agencies outlines important HR management goals:

• demonstrating support and leadership in the successful implementation of the PSMA;
• improving departmental capacity for the integration of HR management with departmental business planning; and
• upgrading HR management skills of managers.

For more information please consult the Privy Council Office website

Legislative Base and Other Drivers of Human Resources Planning

PSMA (FAA; PSEA)

Establishes the employer's responsibility to:

• Identify the current and future needs of the PS
• Determine the HR requirements of the PS
• Provide for the allocation and effective utilization of HR in the PS

Accountability act

Establishes the accountability for the performance of any assigned duties in relation to the administration of the department

Guidance for deputy ministers document

• Sets out the responsibilities and multiple accountabilities of DMs
• “ Deputy Ministers ensure they have the right people, work environment and capacity to ensure the department’s success […] Effective departmental management requires careful integration of HR management planning with the planning of departmental activities.”

Clerk’s corporate priorities

Auditor general’s findings

• Absence of comprehensive HR planning integrated with operational business plans
• PS not doing effective, efficient and economical recruitment
• Key recruitment elements & strategies should be included in HR Plans

Management accountability framework

• Accountability instrument that assesses the general obligations DMs carry to the Government Management Board and to the Secretary of the TB for the overall management capacity and performance of their department

People component

“Departments and agencies have the people, work environment and focus on building capacity and leadership to assure success and a confident future for the PS of Canada”

2005-2006 Indicators:

• Do you have an HR plan?
• Do you have a process in place to integrate HR and Business Planning?

Staffing management accountability framework

• Accountability instrument to report to the PSC on the management on staffing systems and on the use of delegated staffing authorities

Integrated planning principles and process

Six Principles

• Planning takes place at all levels
• Planning is information driven
• Planning identifies risks and challenges
• Planning is transparent, values-based and well communicated
• Regular reporting on integrated planning takes place
• Planning efforts are monitored, measured and evaluated

Integrated planning calendar

Five-Step approach to determining and building for current and future needs

1. Determine your business goals
2. Scan the environment
3. Conduct a gap analysis
4. Set HR priorities to help achieve business goals
5. Measure, monitor and report on progress

Integrated Planning Tools

• Integrated HR and business planning tool kit
• Integrated planning : handbook for deputy ministers and senior managers
• Succession planning and management tool
• Succession planning and management tool for senior managers
• Succession planning and management tool for managers
• Integrated planning templates (under development)

Line manager's guide to integrating HR and business planning

Integrated human resources and business planning checklist

A five-step approach to determining and building for current and future needs

The following steps are widely recognized as key to integrating HR and business planning. They reflect national and international research into the practices of leading public and private sector employers.

Moreover, they have been validated in the PS by way of extensive consultation across the country with stakeholders. Line managers, HR professionals, bargaining agent representatives, as well as functional community representatives and other stakeholders all contributed to this model.

The five steps to integrating business and HR Planning include:

1. determining your business goals;
2. analyzing your environment to see if you have the right mix and complement to meet your current and future needs;
3. assessing the gaps in your workforce – what are you missing from an HR perspective in order for you to achieve your goals;
4. setting priorities and taking action. Initiating strategies to close the gap and help get the resources you need; and
5. reviewing, monitoring and measuring whether efforts were successful.

Some additional information on each of these steps is outlined on the following pages.

Step one: Determine your business goals

A solid understanding of your business goals is critical for integrated planning. Ask the following questions:

• What are your key goals and deliverables for the next fiscal year?
• Do you foresee any changes in direction that might have an impact on your business goals or HR requirements?
• Who are the strategic partners you need to work with to achieve your goals?

Step two: Scan the environment

A) Workforce analysis

A key component of HR planning is understanding your workforce and planning for projected shortages and surpluses in specific occupations and skill sets. By way of example, has the following workforce information been analyzed for various occupational categories in your team?

• Demographics and employment characteristics (eligibility for retirement, vacancy rates, turnover rates, internal staff mobility such as deployments, promotions, secondments)
• Skills/competencies (e.g. training/learning data, performance management data, language competencies?)

B) Internal scan

It is important for line managers to identify factors internal to the organization that may affect the HR capacity of their teams with regard to meeting projected goals.

• Have you considered, for example…
• Potential changes in program and/or service delivery
• Management-union relations that might affect your team
• Anticipated changes to funding levels
• Changes in leadership & priorities
• Client satisfaction

C) External scan

Are external environmental factors expected to affect workforce capacity, given known operational and HR priorities and emerging issues.

Have you considered, for example

• Demand and supply of employees with the skills you need
• Sources of recruitment

Step three: Conduct a gap analysis

Based on an analysis of your business goals, as well as your understanding of environmental issues and your workforce, what do you see as your key current and future HR needs?

Examples of Considerations:

• Do you have any immediate hiring needs?
• Based on projections, do you foresee a skills shortage in specific occupational groups on your team?
• Will changes in program delivery require the acquisition of new skills on your team?
• Do you have enough qualified people on your team ready to fill key vacancies in the event of unexpected departures? If not, are you aware of where you can go to attract the right people?
• Have official language and employment equity obligations been met?
• Have you conducted a risk assessment on HR issues critical to your team’s success?

Step four: Set HR priorities to help achieve goals

Based on the organization’s goals, environmental scan and gap analysis: 1) What are the major HR priorities; and 2) What strategies will achieve the desired outcomes? Work plans may include strategies on:

Recruitment/ Staffing, Mobility/Redeployment, Employment Equity, Official Languages training, Training and Development, Corporate knowledge Retention and sharing and Workplace well-being

Step five: measure, monitor and report on progress

Measuring, monitoring and reporting is key to assessing progress.

• Does your team have clear and measurable HR-related goals?
• Are the HR performance measures aligned with indicators in the TBS Management Accountability Framework?
• Do you have a mechanism to track performance outcomes?

Integrated human resources and business planning checklist: steps and considerations

Step 1. Determine your business goals

A solid understanding of organizational priorities and the business planning cycle is critical for effective alignment of human resources (HR) and business goals.

• Identify the government’s key priorities, emerging directions or legislative reforms that could impact your organization’s mandate.
• Identify your organization’s ongoing HR and Business priorities.
• Develop an integrated plan in consideration of accountability requirements and HR supporting material.

Step 2. Scan the environment

Workforce Analysis

Understand your workforce and plan for projected shortages and surpluses in specific occupations and skill sets.

• Demographics and employment characteristics
• Skills/Competencies
• Internal workforce trends

Internal Analysis

Identify factors internal to the organization that may affect HR capacity to meet organizational goals.

• Changes in legislation, policy platform, program delivery
• Labour management relations
• HR Initiatives (e.g. EE)

External Analysis

Determine the most important environmental factors expected to affect workforce capacity.

• Current workforce trends
• Current and projected economic conditions
• Technological advancement

Step 3. Conduct a gap analysis

Based on an analysis of the environmental scan and business goals, what are the organization’s current and future HR needs?

• Based on projections, do you foresee a skills shortage in specific occupational groups or a need for the acquisition of new skills due to changes in program delivery?
• Do you have enough qualified middle managers to feed into EX group?
• Have OL and EE obligations been met?

Step 4. Set HR priorities to help achieve business goals

Based on the organization’s goals, environmental scan and gap analysis: 1) What are the major HR priorities; and 2) What strategies will achieve the desired outcomes?

• Are the HR priorities and key planning issues included as part of the Report on Plans & Priorities?
• Are budgetary considerations factored into the work plan/strategy?
• Is the work plan/strategy being cascaded to organizational units?

Step 5. Measure, monitor and report on progress

Measuring, monitoring and reporting HR performance outcomes is key to assessing progress in target areas, organizational learning and improvement and determining future priorities.

• Are the HR Performance measures aligned with indicators in the TBS Management Accountability Framework and the People Component of the Management Accountability Framework?
• Are systems in place to track performance indicators and analyze cost benefit?
• Do results from your performance indicators inform your priority setting for the next fiscal year?

Integrated planning calendar

This is a planning calendar with approximate timelines that organizations may follow, or adapt, to support their respective planning cycles.

1. Discussing strategic direction: April - June
2. Getting the priorities right: July - September
3. Detailed work planning: October - December
4. Reporting and readiness: January - March

Fiscal year 2, implement steps 1 to 4 and begin new planning cycle

Fiscal year 3, report on previous fiscal year, implement year 2 plan, and begin new planning cycle

Responsibilities of key partners in effective planning

• Align priorities
• Share information

Managers

• Proactively inform HR of risks
• Plan resource allocation ($ and people)
• Integrate HR into business planning

Human resources

• Proactively advise management on HR issues, risks, decisions and policies
• Provide HR tools to managers
• Support efforts to mitigate risks

Corporate planners

• Guide/facilitate planning process (RPP/DPR)
• Communicate approaches to planning
• Include HR requirements in relevant call letters to branches/regions