CHAPTER TWO

Principles of Workforce Asset Management

THIS CHAPTER EXPLORES THE VISION of Workforce Asset Management (WAM) and why acting proactively in this field is critical to the overall efficiency and maturity of an organization today. This material introduces and explains the central positioning of the workforce management office (WMO) in the workplace. The topics underscore the vital principles that allow workforce management systems to be fully integrated into the organization's structure, processes, and culture. Realizing the potential of what workforce management (WFM) systems can accomplish when positioned in close alignment with organizational objectives, the material describes the support needed by personnel who are responsible for WFM systems to achieve both tactical and strategic outcomes.

Learning Objectives
By the end of Chapter 2, you should be able to:
  • Define the A.C.T.I.V.E principles and how they relate to WAM.
  • Identify the seven areas of WAM practice and technology design.
  • Explain how the vision for the system becomes a blueprint for proactively maintaining success.
  • Define the benefits and key components of vision integrity checks.
  • Identify the five stages of development and implementation for the new workforce management office (WMO) model.
  • Understand the steps to effectively engage the WMO.

2.1 THE A.C.T.I.V.E. PRINCIPLES

A fundamental component of enabling WAM technology to live up to its full potential is a concentrated effort to break down the traditional approach to WFM and replace it with a new blueprint. The framework for this new operational model is a set of principles that put the proper emphasis on outcomes over process. These principles take WFM from tactical to strategic—replacing a mechanical construct with an intelligent design. This new blueprint positions WAM systems as a key enabler of the latest productivity, cost, and talent management strategies.

The centerpiece among these principles is the A.C.T.I.V.E. approach to WFM system implementation. These guiding objectives put the people and technology in the right place and time supported by the appropriate tools and environment to do their work and make good decisions. Today's WFM system is distinguished not just by more data and tools but by more useful tools and data represented in more meaningful ways. The WAM professional must be able to differentiate between simply adding more data and added processes and improving information and outcomes.

As shown in Figure 2.1, the A.C.T.I.V.E. framework is built around six principles designed to guide the WAM-Pro in many aspects of system design and administration over the life of the WFM solution. Following the A.C.T.I.V.E. principle framework is what makes the Workforce Asset Management Professional (WAM-Pro)'s work matter. These make up the enabling code of conduct, the way that WAM-Pros can measure the impact of their work.

Figure 2.1 The Six WAM Principles—A.C.T.I.V.E.

c02f001-edit.eps

The six principles are:

genf001.eps 1. Alignment. The principle that sits at the foundation of all others is the ability to deliver solutions that closely and successfully line up with important organizational goals at all levels. WFM systems and practices must embody a reason for their existence that supports and reflects what the organization needs to accomplish. Proper alignment prioritizes things. What is important to WFM should be important to the organization. Alignment naturally positions people in the proper roles and responsibilities. When WFM is properly oriented, concurrent activities are not a risk and may be enhanced. Alignment will be influenced by the organization's readiness and seriousness in achieving its mission. An organization that is not serious or ready will divert attention and resources away from the WFM solutions that matter. Alignment includes the Why, why not? questions the WAM-Pro must ask.
genf002.eps 2. Control. The second principle influences the ability of the organization to channel WFM activities and decisions into a narrow pipeline/stream of options that limit negative out-comes. Control is somewhat misleading because it is impossible and impractical to expect absolute control. Organizations are made up of people and operate in environments that are dynamic and unpredictable. WFM controls are touch points in the solution where the organization can exert different levels of influence over what happens yet meet the operational needs in real time. WAM-Pros measure the degree of control to be exerted and the level of effort to handle exceptions when needed. Controls include product features inside WFM systems, governance administered by people, and measurements to evaluate whether controls are working as expected. The What if questions reveal where controls come into play for the WAM-Pro.
genf003.eps 3. Timing. WFM systems are dependent on good timing. The flow of data, the processing of inputs, and the distribution of information should happen at the right time. But it is more than that. The WAM-Pro understands the sequencing of events and maintains a level of situational awareness about how the system is serving the organization. The timing of events outside of the WFM system may impact the business of managing the workforce. The WAM-Pro considers the leading indicators of trouble and opportunity ahead as the necessary preparation needed to deliver the expected outcomes. When does this need to happen? and How often? are the everyday questions that WAM-Pros answer.
genf004.eps 4. Information. WFM systems have consistently been about information. However, the WAM-Pro is concerned with delivering meaningful data, not just more information. Information is a WAM crop that should be cultivated, protected, harvested, and distributed. It should also be delicious in that it feeds the organization, excites it, sustains its health, and gives it strength. The handling of this crop is challenging. It is highly regulated, touched by everyone, processed by numerous technologies, widely distributed, and very visible. When WAM-Pros are asked for something, it is usually about information or influence and they should understand: How important is this? Is what I am providing meaningful? Can I share this?
genf005.eps 5. Visibility. WFM systems can create incredible transparency. What was hidden in manual or older systems is easily exposed, aggregated, and quantified. Visibility is the enabler of accountability. From executive to employee, visibility shines the light on what is and is not happening, when, where, and how often. WFM systems are by design gatekeepers of insight into the organization. The WAM-Pro expands the lens by translating needs into functionality. As the WAM-Pro works through design and administrative tasks the questions become: Who needs to know and how often? What must happen to make access possible? And within this feature, what happens?
genf006.eps 6. Execution, Engagement, and Efficiency. While alignment is at the foundation of these six principles, execution and engagement are how WFM systems come to life. Efficiency is fundamental to their efficacy. The five preceding principles dictate what can and cannot be done inside and around the WFM solution. The feasibility of achieving the desired outcomes depends on how things are executed. The work of encouraging end-user adoption determines how engaged people are in using the system—in executing their work within the solution. Efficiency is a component of both the system processes and the user activities. Automation should increase productivity and make things easier overall. WFM systems may add more tasks but the outcome should also be a progression toward working smarter and more effectively. The WAM-Pros carefully consider how systems and processes are executed, whether they are workable and sustainable long term, and what obstacles could prevent execution or discourage engagement. The WAM-Pro knows how to respond to How? Where? and Who? to avoid WMF systems from becoming shelfware. Success depends on training, communication, leadership, and integrity.

These six principles underlie each part of the Workforce Asset Management Book of Knowledge (WAMBOK) and every aspect of the WAM-Pro's work. The standards and leading practices support these guiding objectives. These principles transform what has been happening informally, inconsistently, and with varying degrees of achievement into an emerging discipline, into work that matters. The principles allow the industry to institute common terms and standards of performance, measurements of appropriateness and efficacy, and methodologies for success.

The purpose of the WAMBOK is to establish these principles and explain how to apply them to the work of the WAM-Pro. The principles and content in this book guide the WAM-Pro in seven areas:

1. Translating what the organization needs, its strategic goals, into system design. This happens not only when systems and processes are implemented for the first time. Strategic alignment is also an ongoing, critical element of delivering successful workforce management solutions. Employer situations and their workforce do not remain the same; nor do the available technologies. Alignment is a daily activity and a fundamental practice that must be mastered. When aligned effectively, the goals penetrate down to each level in the organization and magnetize people and systems keeping them tightly lined up doing the right things well.
2. Advancing time and labor management activities beyond basic, mechanical timekeeping processes into strategic solutions delivering meaningful information and impactful outcomes to the organization. Time and attendance, in its most rudimentary form, has no place in the boardroom. Workforce management, on the other hand, is an important operational and financial business function that merits the attention and support of leadership at all levels. As a structured discipline with demonstrated methodologies and a well-integrated design, the business of workforce management can deliver significant, measurable, and sustainable results.
3. Establishing proper controls. Workforce management systems have the capability to manage a significant part of the business: people. The workforce brings in revenue while also creating expense. Variations, even minor ones, in expense and income matter to the health of the organization. Therefore, judicious controls must be set to monitor and manage assets. The A.C.T.I.V.E. principles help employers recognize which controls are essential and to what degree.
4. Reprogramming people and technology. The Workforce Asset Management Professional designation is, by its name, about both people and technology and the gray matter between them: policy, process, and culture. Systems are easy to program. They essentially do what they are designed to do (barring any bugs or wrongdoing). Organizations and people should not be expected to train themselves. Training is more of a static process of imparting information. But reprogramming is going beyond that and changing attitudes, fundamental models, placing things in different context, and looking at outcomes. People are more difficult than technology to reprogram, but they are still malleable. They just need direction and support. To help reprogram people, set rules, discuss priorities and goals, and encourage collaboration and accountability.
The six (A.C.T.I.V.E.) principles help the organization focus on what is important and see the linkages among processes, policies, and people and the eventual outcomes. If WAM-Pros simply set up and plug in systems and do not address the people component, the organization's investment in technology will not reach its fullest potential.
The WAMBOK may introduce to some organizations and professionals new areas of WFM. This is the result of the technology outpacing the way employers think about workforce management. The intent is to enable the market to catch up to the systems so that employers can benefit from the available features and new models of managing workers. These areas include issues such as fatigue management, work-life balance, creating a legally defensible system, highly optimized scheduling, and advanced workforce data analytics. These responsibilities may not be part of the WFM model experienced today. However, they are out there and likely on the horizon for more organizations as well.
When these issues and the solutions are introduced they will require convincing people to think, act, and use technology in new ways. It goes back to breaking down how things operate today and creating a new operational model. Instituting that model will require educating and motivating people at each level to engage differently with WFM systems.
Together with controls, reprogramming people enables workforce management to deliver an expanded span of influence over the business.
5. Operating from a financial perspective. Time and attendance has historically been a back office administrative function. Personnel administering these systems were measured by their ability to support the payroll function. The actual amount of the payroll expenses was not something the function was expected to impact. In other words, time and attendance professionals had no role in managing the financial outcomes of labor costs. Because the systems used to administer these processes were relatively inexpensive, return on investment was also not a target practitioners were held accountable for.
These financial results do not come without careful planning and execution. And although it is not the WAM-Pro's job alone, he or she is the designated leader in this area. The WAM-Pro's duty is to make sure that each participant understands his or her role and responsibility in managing the costs and ROI. The six principles make that easier by focusing the organization on results.
6. Transforming the organization to address inherent qualities that may become impediments to system workability. The six principles can be used as a tool for change. Some of the most significant hurdles for organizations to overcome are the ones that define the organization. The cultural character of the organization, comprised of the individuals and their collective actions, is often a significant barrier to system workability. The agenda the principles establish can be leveraged to call attention to the problem areas and demonstrate how they affect what can be achieved. In Chapter 4, the concepts of organizational integrity and system workability are explored so that practitioners have the knowledge and tools to resolve these issues.
7. Becoming an architect for change. WAM-Pros become groundbreakers as they work to mature their organization. More than technology designers, these leaders have the skills and abilities to draft a new operating blueprint. The six principles are meant to involve the right people and to fully synchronize the technology with their needs. WAM-Pros' work is to champion and institute the belief that WAM is integral to their area and important institutional objectives. Not only do WAM-Pros need to be visionaries (thinkers), they should also be doers, supporting the internal change agents so that things that matter do happen. And they will need to be vigilant and flexible as change is not a one-time occurrence. Transformation is an ongoing activity across and up and down the organizational hierarchy. The WAM-Pro stands as the conduit, the focal point of the organization's efforts to continually improve its WAM. Not only do WAM-Pros create the blueprint, they use it, along with the support of the WMO, to steer the organization and analyze when things veer off course. The new architecture is not only technology, process, and people but governance and authority to make certain the mission is accomplished again and again.
Today the investment in WFM systems is considerably larger and the correlation between their efficacy and payroll expense is more clearly understood. Therefore, WAM-Pros take on a financial stewardship role. This responsibility includes system implementation and maintenance as well as operational performance and financial results.

2.2 SUSTAINING THE WAM STRATEGIC VISION1

Organizations and their operating environments are dynamic, especially in today's fast-paced, 24/7, global marketplace. New challenges and new claims emerge constantly, pulling at the attention and resources of the organization and its leaders. In this climate, top-priority initiatives can easily become last year's fads. However, when an initiative is as mission-critical as Workforce Asset Management, the WAM-Pro and important stakeholders have to guard against such organizational drift. They have to intentionally set in motion an overt and active method of vision sustainment. The two most important elements of proactive vision sustainment are continuous leadership engagement and vision integrity checks.

(a) Continuous Leadership Engagement

Engaging the right senior leaders early in the visioning process lends credibility to the WAM strategic vision and increases the likelihood of its success. This fact is as true during vision implementation as it is during vision creation. To keep leaders engaged, it is vital that they remain continuously informed about the progress being made in vision implementation. It also is essential to keep them in the forefront of the organization as a whole, expressing the value of the WAM vision to the organization's mission and strategy, and also motivating all stakeholders to do their part to enact the vision. Senior leaders embed organizational values and behavior through their words and actions, so no vision will fully take hold without these leaders remaining engaged and active.

To support these key leaders, WAM-Pros can provide recurring face-to-face or electronic updates on how the organization is meeting WAM goals; issues that arise; responses and corrective action plans; workforce feedback; periodic benchmarking and metric analysis; and profiling internal champions and successes. WAM-Pros also can seek a seat on strategic committees and leadership boards within the organization to ensure that the core messages of the WAM vision are kept in the forefront of the organization. Finally, WAM-Pros may also provide leadership with talking points that relate the WAM vision to new strategic initiatives. That will enable leaders to easily articulate how WAM fits into programs across the organization.

(b) Vision Integrity Checks

If designed correctly, the WAM vision road map contains a path of action with concrete milestones to achieve. Additionally, the vision road map includes feedback mechanisms for gathering real-time data on progress made, new problems to solve, and recommended modifications to make in the WAM vision. This feedback comes from both internal sources and from external benchmarking. After that, it is to be collected, summarized, evaluated, and acted on at regular intervals known as vision integrity checks. The purpose of these integrity checks is to keep the vision dynamic and responsive to the changing environment, like new information technology (IT) options, while simultaneously aligning with the four essential elements of the WAM vision—people criticality, data centrism and integrity, scheduling equilibrium, and management convergence.

At a minimum, these vision integrity checks need to assess and align the key components of vision implementation, which are:

  • Leadership engagement
  • Stakeholder commitment and contributions
  • Resources
    • Funding
    • People
    • Tools
  • Continuous education and reporting
  • Milestone progress and achievement

Vision integrity checks can be performed on a quarterly basis, at least until the organization has reached the final step of the process—Being the Vision.

Another approach to vision integrity checks is to incorporate a report from organizational business units on how they are aligning their own strategic goals with the WAM vision. Engagement and accountability can be built at every level by confirming that managers understand how their plans support and align with WAM objectives and outcomes, and by checking in on previous plans for outcome alignment. The important goal in all of these actions is to keep the WAM vision alive and evolving among organizational leaders across the enterprise.

2.3 A NEW MODEL: WORKFORCE MANAGEMENT OFFICE2

Setting up an effective workforce management system is more than just installing time clocks and printing off reports. Once installed, the system is not structured to function or produce meaningful outcomes and analytics completely autonomously. It needs consistent engagement and utilization, continuous monitoring, and proper management and positioning (meaning that it has to have authority and priority). There needs to be an entity to make certain that the organization fully supports the WFM system with people, policy, and funding.

(a) Defining the New WMO Model

Establishing a workforce management office (WMO) is an essential step to prepare for the successful usage of the WFM system. This office, or officer in smaller organizations, has responsibilities beyond basic compliance, accuracy, and efficiency objectives; it is positioned as a sphere of influence and takes control of financial and operational outcomes orchestrated through technology. The WMO's clearly defined accountability and ownership facilitates actionable data production and utilization. It also increases visibility into labor spending and productivity, keeping all levels alert to cost, revenue, productivity, and clinical issues impacted by the workforce. This insight can transform the organization's expectations of technology, processes, and management.

There are five stages of development and implementation for the WMO. During this process, it is imperative to establish and maintain strategic focus. To help maintain focus, develop a budget based on needs and requirements. This budget is a guide, yet it is important to remain within budget during implementation. Efficient change is meant to reduce overall costs, not increase them. The WMO is in place to make the current system work more effectively. Its focus should be on delivering measurable hard dollar savings and operational improvements.

Five Stages of Development and Implementation for WMO
1. Assessment and proposal to executive management
2. Start-up and structuring
3. Introduction and rollout to organization
4. Monitoring, reporting, and improvement requests
5. Continual improvements

The WMO has the potential to be the focal point of meaningful data integration and management synchronicity across the company. However, continued success relies on the approval, support, and direct involvement from executives. Executive support is what enables the WMO to perform this difficult work. Tangible support can be demonstrated through long-term investments, such as through education and training programs. The WMO model needs managers and analysts proficient in workforce assessments; without properly prepared resources, expected progress and benefits will be stultified. Proper knowledge and competency helps analysts to distinguish between problems and symptoms of problems. Valuable time can be wasted when an untrained eye searches for solutions to superficial symptoms instead of solutions for the underlying problems. And without a clear understanding of WAM issues, the WMO's importance may not be clear.

Executives may choose to hire outside consultants or contractors because they arrive as subject matter advisors. These experienced resources can be leveraged during WMO launch and gradually have their responsibilities transitioned to internal personnel assignments. Executives may also train their own employees, promptly assigning people who already have some handle on labor cost and productivity from an operations and technology perspective. But they should consider the monetary and time investment of both options. In the end, either option can give the company a strategic competitive advantage.

The new WMO is defined by the tools that are engaged. It is not necessary to equip the WMO with every one of the latest tools at its inception. However, it is necessary for the tools to be effectively utilized to meet the organization's needs as it progresses along the WFM maturity curve. The WMO is in place to manage the workforce and the technology is the enabler. To demonstrate a commitment to WAM, executives should invest in WFM applications and devices where the needs of people, policy, compensation, and technology converge.

(b) Engaging the WMO

To engage the new WMO, set clearly defined and documented roles and responsibilities. Give them the autonomy and authority needed to conduct their job most effectively. WMO leaders and analysts should have access to and input on all workforce assessments to improve consensus and coherency across the company. They cannot deliver on unknown objectives or operate blind of assessments results. These assessments will be enhanced by the types of tools and data available. Both the WFM system and the WMO are meant to work together to improve overall costs and efficiencies.

An organization should also integrate the WMO into executive level planning and decision making. Similar to the project management office, or PMO, the WMO should be involved in the decisions that impact the workforce directly and indirectly. This means being included in recurring and special leadership meetings and committees. An effective WMO is positioned as a key stakeholder in several disciplines, including human resources, finance and payroll, information technology, and operations.

Once a WMO team of specialists has been assembled, with the proper competencies and authority, they can begin to influence change and produce results. The WMO enables top level objectives to sustain priority status as they are pushed down through the organization, avoiding neglect and dilution even at the lowest local level. The WMO can also institutionalize the leading practices across the organization, as determined by the analysis of workforce management metrics. Now able to deploy proactive action plans and tools instead of reactionary approaches, organizational success objectives can be redefined and overcome the short-term dominance of competing needs.

A simple example of the WMO's influence on key decisions is the necessity and timing of technology upgrades. The WMO can balance the demands of the various workforce management constituencies—human resource policy advisors, budget managers, IT systems administrators and frontline managers—against the needs within the institution relative to the upgrade. The trained staff can perform a cost-benefit analysis and a feasibility assessment to properly qualify the upgrade decision within the context of organizational goals and frontline constraints.

Sample WMO Staffing Model

  • Senior director of workforce management (reports to CFO)
  • Workforce management business analyst
  • Workforce management financial analyst
  • Workforce management technologist
  • Subject matter specialists in regulatory issues and operating models

Note: The size of the organization will dictate the number of resources and whether multiple roles can be filled by one individual. Assignments could be shared, such as financial analyst and subject matter specialists working in an advisory capacity or allocated to project efforts.

A new WMO model provides the necessary organizational structure for real change. Using a WFM system as their foundational tool, WMOs can deliver meaningful results. The work of the WMO will make certain that current assets are protected and future savings can be captured.

Some examples of WMO responsibilities include:

  • Set workforce management metrics and standards for assessments and design relating to efficiency and effectiveness.
  • Accountability for the WFM system meeting the stated mission and operational objectives. Reporting progress to leadership.
  • Select appropriate analysis and reporting tools and documentation.
  • Maintain a repository of information on emerging technologies, regulations, and market trends. Develop external networks and research WAM issues.
  • Prepare documentation and training materials for new systems, diagnostic tools, and processes as well as new business problems and solutions.
  • Organize planned assessments. List assessments in a portfolio for selection, scheduling, and outcome.
  • Support leadership with strategic planning and financial management.
  • Review standard workforce reports, dashboards, and diagnostic outputs.
  • Receive improvement requests. Prioritize change requests and investments in WFM systems.
  • Examine new workforce policies and procedures developed outside the WMO.
  • Support internal and external audits and investigations into workforce activity and reporting
  • Assess user competency and provide for remedial and advanced training.
  • Benchmark the organization internally and externally. Expand the benchmark model to meet the growing needs of the organization.

As explained here, the WMO is an essential component of effective WAM. As a WAM herald, the WMO will take the initiative on and ownership of WFM projects and issues, providing full support and effort. Without a WMO model, WAM-Pros may be left unsupported and disjointed and WFM systems insufficiently utilized or stagnant. The WMO, staffed with certified and ready WAM-Pros, can help the organization achieve the full benefits and cost-efficiencies from WFM systems, and implement the necessary WAM practices and procedures to move the organization up on the maturity curve.

1. This section was contributed by Susan L. Koen, PhD.

2. This section was contributed by Lisa Disselkamp.

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