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,
with significant impact on profit.
Head Count planning is impacted by the following
key dimensions:
 Strategy
 Organization
 People
 Processes and Systems
therefore
Companies strive for profitability through efficient
and economical use of human resources.
Understanding the Terms
Work Force Planning

Systematic identification and analysis of
what an organization is going to need in
terms of the size, type and quality of
workforce to achieve its objectives.

It determines what mix of experience,
knowledge and skills are required, and it
sequences steps to get the right number
of right people in the right place.
Work Force Analytics
Head Count Planning

Uses a combination of data analysis
tools and statistical methods to measure
workforce performance.

Systematic identification and analysis of
what an organization is going to need in
terms of Head Count.

Includes predictive analytics, which aims
to project future operations.

Right skills in the right place are
assumed.
2
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:
Network unbundling driven regulator
Example:
Migration from PSTN to fully IP based network
New Operating Model
Example:
Establishment of customer segment-driven
organization with dedicated new business units
Market Development
Example:
Introduction of Smart Phones
Establishment of New Business
Example:
Establishment of Mobile Financial Services
Company Development
Example:
Significant drop in revenues
because of new competition
Re-organization
Example:
Centralization of a regionally
focused organization
M&A
Example:
Acquisition of a competitive organization
with very similar function
3
HC Planning Summary
HC planning and optimization is a stepwise exercise to
reach best in class targets.
HC Optimization Steps
Effort
Improvement of Org./
Processes/ People/
Systems
Effort with focus on HC
“First HC
Optimization”
“HC Efficiency
Optimization”
“HC Best in Class
Optimization”
4
Done in the early stages of
Client’s transformation when
focus is on implementation of
the new business model.
The starting
point
Done in the second phase of a
transformation when Client’s
processes are in place,
business automation is
improved and full transparency
of employee capabilities exists.
New business
model starts to
get traction and
performance is
improving!
Done in an improved
organization when organization,
processes, people, and systems
are fixed and stabilized.
The business
model reaches
higher maturity
level
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
HC demand and need, leading to HC
planning

Manpower requirements from
benchmarked telecom operators differ
significantly according to several
factors that include:
Top-Down Approach - Benchmarking
2
Benchmarking Manpower to validate estimates for new
organizational structure
Reconciliation
Bottom-Up Approach and Findings
3
Analysis of Manpower requirements based on
management discussions, functional statements and
best practice insights
Headcount Plan
4

Challenging Head Count and providing
recommendation
5

Company strategy

Organizational structure

Market dynamics

Organizational maturity level

Incumbent peculiarities

Mobile operators vs. Fixed &
Integrated operator
Benchmarks are only used as
validation for bottom-up manpower
estimates
HC Planning Approach
Strategic intent determines organizational structure and
related Head Count per unit and department.
Connection Between Strategy, Organization and HC
Approach to develop
Corporate Strategy
Corporate Strategy
Target Organization
CEO
Functional Strategy
1
Legal
Audit
Corporate Communication
Performance Management
and Reporting
Executive Secretary
Strategy and
Corporate
Development
Strategy
Process and
Quality
Management
Program
Management
Product
Management
Commercial
Finance
Human
Resources
Account
Management
Accounting
HR Strategy and
Development
Interconnection
Management
Planning and
Controlling
HR Management
Partnership
Management
Billing and
Settlement
HR Business
Partner
Commercial
Support
Procurement
Facility and Fleet
Management
Technical
Department
Planning nd
Performance
Management
Information
Technology
Help Desk
Applications
Infrastructure
Service and
Quality Assurance
Provisioning
Operations and
Maintenance
Network Planning
& Resource Mgt.
NOC
Technical Support
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
6
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
4%
11% 2%
1%
Benchmark Partner 3
12% 5% 7%
1%
12% 5% 7%
1%
Benchmark Partner 4
14%
7%
5%
4%
22%
21%
28%
28%
33%
27%
19%
6%
2%
19%
30%
19%
Average Percentage of Workforce per
Domain - All Operators
10%
28%
28%
Domains
Average Percentage of Workforce per
Domain - Client
Finance
6%
12%
IT
5% 10%
Marketing & Sales
26%
27%

Technology
Customer Care
HR
23%
Corporate Services
7
5%
50%
18%
HC Planning Approach
DTC will provide its clients with estimates of the optimal
FTE’s per business function down to an appropriate level.
Manpower Requirement Estimates
3
Function/Title
Level
Activities
Manpower Rational
HR
#HC
Vacancy
Operational HC
#FTE
28
4
44
22
0
10
6
Human Resources
HR Resourcing
L-2
Develop recruitment plan based on manpower plan.
Develop/execute recruitment processes, procedures &
policies. Manage capacity requests from all departments.
1 FTE in a senior
managerial role
1
0
2
1
Manpower Planning &
Staffing - Marketing,
Sales & Finance
L-3
Define and coordinate manpower requirements and manage
planning of workforce and staffing requirements for the
company.
1 FTE in an
operational/
assistant
management role
1
0
2
1
Manpower Planning &
Staffing - Operations
L-3
Define and coordinate manpower requirements and manage
planning of workforce and staffing requirements for the
company.
1 FTE in an
operational role
1
0
2
1
Manpower Planning &
Staffing - Support
department
L-3
Define and coordinate manpower requirements and manage
planning of workforce and staffing requirements for the
company.
2
0
2
2
Organizational
Development
L-3
Conduct org design activities, organizational processes,
policies and guidelines.
1
0
2
1
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
Resourcing
•
•
1 FTE in an
operational role
1 FTE in
operational-support
role
1 FTE in operational
role
Operational Head Count includes all local employees, expatriates and contractors as they are needed to run the business
FTE= Full Time Equivalent.
8
HC Planning Approach
Organizational analysis, Benchmarks and applicable Key
Performance Indicators justify the proposed final HC.
4
Sample of Total Head Count (HC) Split
Unit - A
67
10 55
278
178
29
2
-30%
86
4
-59%
10
-48%
70
1,024
132 13
Unit - D
-80%
30
43
Expats
FTE
Contr.
Expats
73
12
HC
25
Prop.
0
66 20
45
…
Unit - E
-21%
316
Contr.
HC
Prop.
FTE
Expats
Contr.
HC
Unit - C
57 934
3
47
Prop.
FTE
Expats
1,368
Contr.
- 25%
199
HC
200
Prop.
-7%
300 30
Unit - B
FTE
Overall
Headcount
-32%
372 56
-14%
29
250
39
234
320
Prop.
219
4
* LTC = Long Term Contractor
9
LTC*
Expats
HC
Contr.
Prop.
FTE
LTC*
Expats
Contr.
HC
Prop.
FTE
Expats
Contr.
HC
Prop.
FTE
Expats
Contr.
45
HC
Proposed
FTE
LTC*
Expats
Contracts
Headcount
89
3
FTE
53
54
27
HC Planning Reasoning
Our unique set of references and experienced staff enable
us to get the job done.
Why us for HC Planning?
1
Holistic Telco Consultant with numerous
projects in all corporate functions/domains
2
Senior staff with a large amount of
line function work experience in Telco carriers
3
In-depth Telco expertise from globally executed
Plan/Build/Run projects
4
Proven Methodology for HC Planning and
HC Optimization programs
5
Largest Telco Benchmark/Research Database
guarantees applicable peer comparisons
10
Your Detecon Contact
Silvia Flachowsky
Detecon International GmbH
Managing Consultant
Phone: +49 171 2234959
E-Mail: [email protected]
Thomas Wehr
Detecon Asia-Pacific Ltd.
Managing Director
e-Mail: [email protected]
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