Updated: Dec 10, 2018
What is ‘People Planning’?
People Planning and the idea of organising people in the most resource-efficient and effective manner is not new, especially for professional services companies. People Planning, is about organising the people within the organisation to optimise efficiency.
For professional services companies, such as legal firms, the personnel are the largest source of revenue, i.e. they are “Fee Earners” . Hence it is essential for professional services companies, to have effective people planning mechanisms in place to plan, budget, and forecast for the future.
What problems are there now?
With many professional services companies, movement of people across departments in different locations, teams and practices (or cost centres) means managing the variances in costs across the different positions and locations. Re-allocation of people into different departments and/or locations can mean potential differences in both income and expenses including salary, payroll tax, superannuation, etc.
The financial implications and the differences in this can significantly affect planning, budgeting and forecasting for companies whose revenue is driven by people. Thus, companies need to find the best method of allocation with the optimal combination of people, or be able to understand the impact staff movement may have.
However, allocation of people within organisations across different cost centres and practices can be an arduous and complicated task. Furthermore, understanding the impact of staff relocation/people movement across the organisation can involve long hours of manually going through spreadsheets and planning the various combinations of people in different departments and locations. Not only that, creating any changes or creating different versions is extremely time-consuming and difficult.
For companies to have their financials properly align and reflect upon the allocation of human resources with traditional planning methods , can involve long hours of extensive modelling from the finance team.
How can you make people planning more efficient?
There are technology driven solutions to streamline the process of people planning and make it easier for organisations to accurately understand the impact.
Instead of the time-consuming task of manually calculating the financial implications every time a person is re-allocated, companies can have systems in place which link the allocation of people in the organisation to the financials of the company. This leads to accurate reflection of the budget, resulting in better planning, and the efficient management of company resources.
OYB have created a custom people planner. The people planner facilitates easy viewing of people within the organisation, and allows for the manipulation of their movements across various cost-centres and positions accounting for the on-costs of changes and movements. It also enables companies to “scenario plan”, by exploring the various options that best suit the company’s interests by representing the effect of the staff movement in the P&L.
Implementing such a solution can resolve many issues associated with the cumbersome task of people planning, maximising a professional services driven business’s efficiency in planning, budgeting and forecasting.
If you want to learn more about people planning and OYB’s People Planner, contact us at: