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Unformatted text preview: wo years for strategic workforce
planning. Measuring Employee Performance
Traditional metrics, such as return on assets or return on
equity, measure capital productivity. Such metrics are of
little use in measuring employee performance. To identify
where and how people are creating—or squandering—
value, companies need performance metrics that are as
rigorous as those used in the ﬁnance department but are
designed to measure human productivity. As a senior executive from a global pharmaceutical company said, “We
are trying to align our KPIs with the de facto strategy.” T B C G • W F P M A Lufthansa Technik
Mitigating Capacity Risk
Luhansa Technik, an industry leader in aviation technology services, has successfully incorporated a longerterm perspective into its strategic workforce planning.
(See the exhibit below.)
The airline created a taxonomy of approximately 230 job
functions, 150 job families, and 90 job family groups. Individual job functions at the airline are highly specialized,
yet the taxonomy allowed Luhansa Technik to identify
opportunities for cross-divisional exchange of personnel
as well as for training personnel to move up into more
complex job functions.
Luhansa Technik uses supply-and-demand modeling to
forecast future gaps in the workforce and take the appropriate countermeasures.
Supply modeling identiﬁes the impact of personnel aging
and retirements, employees moving among company
divisions, and employees leaving the company, as well as
other parameters that inﬂuence staﬀ capacity at the job
Demand modeling requires precise knowledge of inﬂuencing factors and strategies; these insights result from discussions among HR, the business units, and the ﬁnance
function. At Luhansa Technik, these conversations re- sulted in the maintenance services demand model being
based on drivers such as aircra type, year of construction, maintenance measures, and eﬃciency increase.
The degree of uncertainty that is always inherent in supply-and-demand modeling makes the simulation of scenarios indispensable. Through scenario simulations, market developments can be reﬂected in the strategic
workforce plan along with the impact of corporate decisions, such as the introduction of new aircra types, on
Results from the supply-and-demand simulations are
combined in a gap analysis to calculate the diﬀerence between the existing and the required workforce for each job
cluster over a set period. The gap analysis provides a
meaningful, quantitative foundation for taking actions to
reduce Luhansa Technik’s capacity risk.
For example, maintenance employees undergo ﬁve to six
years of training beyond the vocational level so that they
can be certiﬁed for aircra maintenance work. This investment oﬀsets the risk associated with underestimating
demand and suﬀering a critical capacity shortage in this
job function that cannot be addressed on short notice—
or, if it can, only at great eﬀort and...
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- Fall '13