Workforce 2020

Managing industry supply and demand

It doesn’t seem that long ago when talk about planning for the 21st century workforce was too far ahead to warrant a second thought, let alone actually putting pen to strategic paper. Now, with the third decade of the century fast approaching, it may be just the right time for the outdoor power equipment industry to consider strategic, tangible and long-term workforce planning, development and succession for the future – even though the future is only a few years away.

The outdoor power equipment (OPE) industry stands at a crossroads in its history. The next generation of talent and the successor potential they represent requires a strategic, innovative and integrated approach to support and enable their growth and development. Managing the workforce of 2020 is not only part of a long term economic and workforce development strategy, but it also represents a unique opportunity to create an industry-sustaining competitive advantage.

In financial terms, the OPE industry is worth an estimated $15 billion (AUD) annually and commands an important component of the Australian economy. From a workforce perspective, however, industry supply and demand systems are passive, reactive and antiquated; old school thinking and loyalty maintenance limit cross-fertilisation of knowledge, development and participation, and stunt the growth and succession potential of talent. To ensure the industry is able to continuously grow the developmental, succession and participative trajectory of the OPE industry, a transformational shift in focus toward three strategic activities is required:
Engage a broad network of stakeholders to align and execute integrated industry sourcing, joint venture and retention strategies; Collect, analyse and forecast industry data to set and achieve workforce growth and development goals, objectives and milestones; and Build an industry-wide talent supply and demand model, succession capability, and focused group participation.

ENGAGE
The OPE industry is a collection of broadly defined participants linked by a vast network of industry-related affiliation. Industry power equipment stakeholders including brand manufacturers, business owners and end-users, span agricultural irrigation systems on the one hand, golf course landscaping on the other and all the hand-held power equipment in between. Regularly and effectively engaging a network of key stakeholders across a broad spectrum of perspectives, ideas and thinking provides a platform on which to find and develop common ground. Once debated, agreed and confirmed, the goal of the stakeholder network is to develop global industry strategies – aligned across diverse geographies, participants and interests – that can be executed locally and best practice, knowledge and impact shared. Key strategy development areas are sourcing, joint venture and retention.

Sourcing strategy
Developing a sourcing strategy from declining and adjacent industries is an opportunity to leverage talent with relevant skills and competencies that can be transferred and applied to the OPE industry. Declining and adjacent industries pose potential strategic and tangible value for known quantities of talent with related skills and industries. In declining industries, there is often minimal lag between exit and availability. Adjacent industries provide short ramp up time and knowledge transfer for high calibre talent.

Joint venture
Develop a joint venture strategy to increase the attraction on regional talent where multiple roles and opportunities are available. Joint venture strategies apply principles of cluster marketing, engagement and collaboration with key clients to tackle regional talent shortages. As part of strategy development, explore various models to understand associated risks and benefits. And, identify the skills and competencies required to develop incumbent and incoming talent.

Talent retention strategy
Develop a talent retention strategy to identify a strategic framework and implementation plan for retaining key talent and leveraging knowledge. Highlight and quantify retention and engagement programs and their impact on the industry. Use the strategy and subsequent program to form an integral part of internal and external succession planning, and identify an industry standard – by level, function, percentage and time-in-role – with the capacity for future successor and leadership roles.

COLLECT
From a data perspective, OPE is a fractured industry with limited capability to collect and analyse data, and leverage up-to-the minute robust information to forecast industry-wide or micro-forecast local relevant workforce and industry trends and insights. The benefit of an integrated systems (IS) approach to data collection, analysis and forecasting provides a platform on which to share, discuss and pin-point workforce issues and information including resourcing, talent supply and demand requirements, specific knowledge and skills needs.

In combination with relevant external data – for example, adjacent industry, employment, TAFE and tertiary participation data – IS underpins and facilitates strategic thinking and decision-making. As part of an agreed set of integrated industry strategic outcomes, accountability of workforce growth and development goals, objectives and milestones, and their related challenges can be monitored and change executed quickly through the IS without searching outdated, paper-based, or word-of-mouth information.

BUILD
Following on from engaging a network of stakeholders to align and execute integrated industry strategies and collecting, analysing and forecasting data from an integrated system, one of the most critical areas of competitive advantage for the OPE industry is planning, developing and building succession capability into talent pipelines. Building a talent supply forecasting model helps to predict, identify and source labour by region (or country), near–industry, partnership institution, focused group pipeline or project based on relevant knowledge, skills and competencies, and role category.

In parallel, a talent demand forecasting model supports an understanding of and preparation for drivers of labour sourcing that are aligned to growth and development strategies. However, the future of the OPE industry’s workforce is dependent upon the identification of high potential talent, planned capability development, designated and realised succession. In addition, there is an opportunity to identify and engage under-represented and underprivileged focused group pipeline as means of further industry differentiation and competitive advantage.

Supply
An industry talent supply forecasting model predicts, identifies and sources new and incumbent labour based on key designated locations and characteristics. The model works in conjunction with the demand forecasting model. Initially, the forecasting need not be complex or costly to initiate. Over time, the supply model will increase in sophistication as key data is captured, analysed and applied to gain validity and reliability.

Demand
An industry demand forecasting model helps to understand the impact of growth strategies and assist in analysing the return on investment in workforce utilisation. The aim is to build and develop a demand model from available data to an appropriate and feasible level. As the model demonstrates validity and reliability, relevant information can be incorporated and applied to further develop capability.

Succession
Identifying high potential talent, planning development and building succession capability is managing talent risk and ensuring the future of the industry’s workforce. Identified at candidate selection stage, supported by thoughtful development planning and confirmed through performance evaluation and appraisal, succession planning must be a deliberative and transparent process.
As a unique employee value proposition and recognition of the wider potential for diversity, the OPE industry should seize the opportunity to identify and engage under-represented and underprivileged groups as part of a broader pipeline development capability. These groups represent untapped industry differentiation and competitive advantage.

THE FUTURE OF WORKFORCE 2020
The future of the outdoor power equipment industry is at a crossroads and the next generation of talent and succession potential will likely require a level of strategic transformation that will test stakeholder resolve. A plausible approach to the challenges of workforce 2020 will require the industry to engage a broad network of stakeholders to develop and implement industry strategies; collect, analyse and forecast industry data to set and achieve workforce goals and objectives; and build an industry talent supply and demand model, succession capability and a diverse and inclusive pipeline. The future starts now.

Dr Wesley Payne McClendon is a global HR executive, thought leader and executive director, McClendon Research Group, Inc (MRG). Wes can be reached by e-mail at wpm@nullmrg-inc.org, on Twitter @BLKDOC or #AskDrWes. His book, Strategy, People and Performance, is available at Amazon, Bookworld, HolisticPage, Booktopia and EmporiumBooks.