 And how workforce planning fits into the larger scheme of talent management and how talent management fits into the larger scheme of knowledge management. So we're gonna talk about what is strategic workforce planning when introduced you to the industry model. Then we'll talk a little bit about recruiting the next generation. We're gonna talk a little bit about succession planning and engagement and some strategies for success. Some of these I'm gonna go through very fast because you can read it in the PowerPoint. So I don't even know if this is the right particular definition anymore, but it's the integrated knowledge management is the integrated systematic approach to identifying, acquiring, transforming and developing, disseminating, using, sharing, preserving, blah, blah, blah, specific objects known as knowledge management. It's about getting the right skills, the right information at the right place at the right time when you need it. Simple as that. Making sure you've got the right ability to execute the work in an efficient, effective manner. So a little background on strategic workforce planning. What does that really mean? Through their 80s and 90s, most utilities were tactical, they were labor budgets, right? We can only budget for so much headcount. Little strategic planning didn't go in an effective. Think about the skills that they need or the types of transformational change that was gonna take place. The HR organization, typically called personnel, they really weren't involved in their attrition management or workforce planning strategies. They weren't, they were transactionally based. They weren't helping the organization think out. And only recently have utilities begin to start to be more strategic in driving about how to manage loss of staff and how to understand the turnover and the impacts of that. So what is strategic workforce planning? It's the right number of people with the right skill sets and knowledge, the right location at the right time at the right cost to ensure successful outcomes from the business. Sounds a little bit like knowledge management, right? The right knowledge, the right skills, the right abilities, the right time, the right place. It's the same thing, they're very connected. So strategic workforce planning is understanding the business strategy that you're in, linking it to the demographics and the workforce, big data, developing and executing strategies for people. Because the end of the day, it's all about the people. It may be, you've heard a lot of information stuff about IT systems, right? A lot of IT systems, knowledge management's about people because without people, you don't need the IT systems, do you? We're not at artificial intelligence yet where we're no longer germane at this point. Although the speaker earlier feels in the next 10 years we're all gone and the robots take over. But until then, it's about people. So the evolution of workforce planning went from counting heads to kinda looking at the analytics, to kinda thinking about how you need to position your people to be more strategic about looking forward ahead, planning for the future, seeing into the crystal ball so what you're gonna need. And so we're gonna walk through some of these sort of stages. We're gonna talk a little bit about analytics, so we're gonna talk a little bit about planning for the future and we're gonna talk a little bit about thinking ahead, thinking in the future and how you can do this in your business. So notice the graphic, he stole my graphic. No, do you have a directional understanding? Do you know where you're heading? Do you know what your risk are? Do you know what your employee turnover rate is? Do you know who your stakeholders are and what their needs are? Are you heading in the right direction? Are you just lost and you're just going in circles? I don't know where I'm going, I'm lost. I don't know, I don't have any sense of where do I begin on this journey? So about five years ago, the US industry came together, nuclear industry came together and we developed a model for strategic workforce planning that actually came out of the work that I did at Palo Verde or we did at Palo Verde. Now we didn't start with this model in hand, we just kind of developed it as we went through our recovery process and we said to have an effective strategic plan, you have to have these four elements and I'm gonna go through each one of these quadrants. We did not copyright this model, it is public domain. It is now the industry model in the US for workforce planning, total electric industry, no longer just nuclear, all electric. IMPO uses it, which means WANO uses it, Center for Engineering Workforce Development uses it, the NEI Nuclear Energy Institute uses it and we've been starting to embed it in some IAEA documents. So it's for yours to use. If you become a consultant like me, you can't sell the model or you give me royalties but you can use the model. So it'll help you give direction, right? So let's look at the four quadrants and try to understand them a little bit. So Quadrant One is understanding the business that you're in. What are some of, these are some of the questions you're trying to answer through this process. What are my internal and external sort of events that are gonna affect my business? They are called game changers. What can I expect happened to me? An example of that in the US industry was the ability to find cheap gas through fracking. Now we haven't blown up the US yet. I mean we have some earthquakes but not too many. Right now we're fracking until somebody realizes that may not be the best thing to do. So we have cheap gas which means it's affecting the nuclear industry because we no longer can compete with the price of gas. Price of gas has gone very low and it costs more to split the atom than it does to crack the ground and pull out the gas. What are the workforce requirements to meet my current and future workforce? So think about the technologies that are gonna affect the workforce in the future, right? More digital systems, more machine language understanding, right, more understanding on how we wanna manage that sort of interface between humans and equipment. Different skill sets than what we have today. What are my new skills and knowledges that's gonna be required to be successful for the future? The young men and women who are coming out of the universities today, they learned electronics, little E electronics, right? Microsurgery. Well when you're producing power, you're using big electronics, right? So you have to teach them that, you have to teach them the big E and not the little E. But what are the skill sets that we need today? And then one of my new critical jobs that might need to be analyzed for the future. And then do I have to redeploy people because I've eliminated some type of work and now it's gonna be going somewhere else to the robots? So as robotics comes into nuclear power more often than it will, we'll need different types of skills to manage the robotics side of the business and the intellectual sort of software that drives that as opposed to maybe how to turn the wrench. So thinking about where I'm heading from a business perspective. So once you understand where your business is going, then you need to understand kind of what does your workforce look like? So, you know, am I prepared for the retirement and attrition? Do I know my types of turnover, why I'm losing people? How come I can't keep my new workers? I have a high turnover rate for people with zero to five years of service with me. I lose them after five years or three years. You know, why? You know, what do I have to do? So understanding that. Turn over by critical jobs. What are my knowledge risks? Who has unique or critical knowledge? Competencies that I need for long-term success. And what are my hiring lead times? You know, I talked to you yesterday about it takes eight to 10 years to make our senior reactor operator, but I didn't tell you what the cost is. In the United States, and imagine it's the same place everywhere else, the cost to hire somebody and train them and get them to the senior reactor license is almost a million dollars. Think about that. By the time you hire them and you train them, the training costs, the eight years or wages, the wages of the instructors, all the investment of time is about a million dollars. So think about, if you were about to spend a million dollars on a decision, you'd really research that decision, right? But how much time we actually spend interviewing and thinking about the right candidate for our jobs? We may spend, for lucky, 20 hours on a candidate, right? When you got your job, how long were your interviews? Maybe three hours, an hour, a phone call? 20 minutes. 20 minutes. They made a million dollar decision in 20 minutes. That's pretty stupid, isn't it? But that's what we do. You don't think about it in the long term. But when we invest in our operators and our engineers and our scientists, we're investing in the long term and we're gonna spend money. Imagine if we put a little bit more effort on the front end, how much money will save on the back end for the business? How the business could be much more profitable and successful and not having to worry about constant turnover of talent? Now how long does it take for somebody to become an independent, competent employee? I just talked about that. What's your ramp up training time? When you bring somebody in to become an inspector, it takes a good three years, four years to be a good inspector. It just does. And you think about what you're paying those inspectors in time and development and everything else and benefits. You've got a pretty significant investment. A scientist looking at new technologies. Completely, the cost is just skyrocketed because of the potential revenue source from that new technology in new generation, forms of generation. So you've got to think about how long it takes. Then you got to understand your workforce development. Now this is where knowledge management really comes in play. Because as I said to you yesterday, we're not only a small section of us in the R&D is developing new knowledge, creating knowledge. Most of us is about knowledge preservation. How do we continue to preserve our knowledge for the future? And this is where the workforce development comes in. What are my pipelines, internal and external, for new knowledges and skills? How do I find my candidates internally and externally? What's the organization's accession planning for leaders and how's it being used to fill future talent? We'll talk a little bit about that in today's presentation. Is the organization's internal development programs designed to train employees in a timely manner? Now some organizations, they'll wait to have a class because they have to have at least six or seven people and they don't have the money, the budget to hire ahead people. So they have to wait till they get the vacancies, get the money saved and then have the class. And you're already behind the bell curve when you do that. A lot of companies do it that way. And as knowledge management in place and does it ensure our unique or critical knowledge is being captured and retained and put into training, put into storytelling, putting in the community of practices established so they can share it. So those are the kind of the things we're trying to enter in quadrant number three. And finally in quadrant number four, it's about measurement and actual hires. So you can't measure knowledge, right? We already talked about that, that's a duh. But you can measure the outcomes from that process. For instance, how well are your pipelines working in terms of meeting quality? Candidates, do you have turnover rates that are too high? Are you able to get your lead times for hiring? Can you get that down to like 90 days or 120 days? So you can measure some things to improve it. Later on in this week, we'll have some KPIs that Armanda will be presenting. There will also be some metrics to measure. But these are just some examples of it. I told you yesterday, the best metric on knowledge management is pass rates of operators and pass rates on exams for training. Another great measure of knowledge management is the number of human performance errors caused by new employees. If you have minimum number of human performance errors caused by new employees, you have a measurement and indicator that they're getting the right training and skills to be able to execute and do the job. If your new employees create lots of errors and problems, then you've got a training problem. All right, so when we look at managing our workforce planning risk, we wanna look at our risk indicators and that little button doesn't work. So things like percent of attrition by the job, percent of eligibility or average years of service and employees, housing impacting our business drivers, housing impacting risk events, and then housing impacting potential safety issues. So are things like unplanned outages occurring, equipment failures, do you have to increase regulatory oversight because you're having performance problems? All that affects your ability to have impact on earnings, safety, and business performance. So real quickly, I'm not gonna go through this a lot. This is a quick model on how you kinda do attrition process planning, what goes in must come out. You have to, there's models for some of this stuff. These are dashboards that we've put together to measure kind of a demographic profile. But I wanna show you this particular dashboard. This is a dashboard from a utility that I've done some work for. I want you to see these blue bars. You see these blue bars right here? These are people with zero to five years of service. And then the red bar is six to 10 years of service. Notice how they have an over large amount of new workers in this organization. The reason for that is that they had offered a severance package because they were trying to downsize their organization. Lots of experienced talent left. They didn't capture the knowledge or the skills, understand the impact of the business. Those people left on a severance package. The performance of the plant went into the toilet. Very poor performance. And they had to go hire several hundred new people to make out for it and guess what? They weren't skilled or ready to do the work. And that's exactly what happened at this nuclear plant in the United States. This trend is happening all over the United States. It's happening at a parts of the world. We weren't prepared for it. Organizations were financially focused and they lost their talent. So things like these workforce dashboards will help them understand kind of how to look at that and manage that. And these are another examples of graphical illustrations of your age and years of service. You have to understand what that impact is in your business. This is simple to do. Anybody with Excel can do this. You simply build yourself a chart between numbers of people with age brackets and years of service and just plot it. Then you want to do some forecasting on your attrition and hires going out at least five years. There's tools to do this. Or you can simply do it yourself by looking at your historical attrition and doing some sort of trend line analysis. But you want to have an understanding of what you think your losses are going to be by your key jobs. These key jobs on this particular document are generic and they represent probably about 85% of the jobs that appear at an NPP. So when you get this yourself, you can look at it in more detail and kind of see the data. But you want to kind of come up with some analytics, right? Now an HR guy did this. So if I can do this, I'm just a dumb HR guy. Now imagine what you engineers can come up with, right? And then you want some long-lead hiring analysis as to what you're going to need by organization based on this sort of analysis. And then future talent needs. Now the most important piece about this is understanding how you're going to get people into the business, right? Now everybody comes from the outside. Now everybody comes from the inside. So what's your mix and where do you come from? You'll need to do some analysis on your critical feeder jobs. And understand, where do I get my people? And this is an example. It's a FISH diagram. But it helps you to say, if I hire electrical technicians, they come from outside training programs. Other 25% come from other parts of the business. And then I get 25% from the outside. So I mean, just trying to understand how you feed your jobs and where they come from is really helpful. All right, recruiting challenges for the next generation. It is difficult in today's economy to attract new talent into our business because of a number of reasons. In the United States, with plants closing, people are worried that they won't have a career for the future. So they're less likely to go to other industries now. And we're seeing that happen in the United States. You may have that same challenge in your country. So you have to think about the branding and how quickly you get in front of these students and getting in front of them at a college level or in some cases even a high school level in order to start talking to them about the brand of nuclear energy and the value it offers. I mean, let's face it, we are carbon free. We were carbon free before carbon free was popular. Think about that, right? That carbon free only happened the last several years. We have been making nuclear energy since the 50s. Nobody heard about that. So how do we get these people into our business? How do we brand what we do? And so you've got to think about that for your organization. So things like website, specialized websites, papers, university curfairs, conferences, external recruiting firms and employee referrals. Employee referrals are some of the best methods for getting talent into your organization. Because you are the best salespeople. You work there, you know about it. Those are the best form of referrals. And then the recent college graduate hire take that individual with you when you go to the colleges and your career fairs. But you've got to get in front of those college students. And in some cases you've got to get to the instructors at the high school level and at the junior college level to get them to talk about what we do and the value we provide for people and the lives of people. I mean, we power lives without us. What would life be like without our iPads and our iPhones? There would be no energy. Without us you can't have an iPhone or a smartphone. You just can't. There's no electricity. So think about that. Here's a way to sell the business. When you get up in the morning and you turned on the light switch, did you think about us? The regulator has to regulate us. The plants have to operate us, right? I mean, what's it take to turn on that electricity? And when that electricity doesn't work, there's an outage. They think about you, but until then they don't give a hoots about you, right? They don't care. But it takes a lot to make energy and to distribute it. And so what we do is we power lives. So don't use that tagline. Well, it's accession planning. So what does, so this came from Palo Verde. They said, accession planning begins at a time of hire. What will your organization look like five, 10 or 15 years from now? I just told you, you're gonna spend somewhere between 100,000 for the lower level positions to potentially a million dollars for a senior level position to get them ready for the next level. And so when you hire somebody, are you hiring them just for that role? Right, just for what you need right there? Are you hiring them for the future? Think about that. You should always be thinking about what do I need to hire for the future? So as you become a leader or a manager, you're making selections. Always think about the long term. It's very important to think about that. And so we do things like a nine block assessment. We have mentoring rotation programs. A nine block assessment talks about potential and performance and how will you're performing. We look at that for succession plans. Let's see, retaining top talent. We talk about positive branding, culture in the work environment. Employees are engaged compared to work environment and salary and good rewards. Now we don't always pay the best in industry anymore, but what we do has value and we have purpose and we're carbon free. So that's kind of how we sell our business. So I wanna talk a little bit about leadership because at the end of the day, everything we're talking about here, almost everything we're talking about, it's about leadership. Leadership as you are leaders and as your managers are leaders. And I'm gonna show you an example of the Palo Verde leadership model. Now these red squares right down here are the foundation blocks, right? They're employee engagement, equipment, people, problem identification, resolution, safety, knowledge and training. This is a fundamental block at Palo Verde. And so they're focused on this thing, knowledge and training. I told you they wanna be top-designed in knowledge and training. And so they have these leadership philosophies and notice I highlighted the runs that directly affect knowledge management. So first of all I wanna talk to you about, it's not in red. Every employee is a leader regardless of position or title. So think about that. Do you agree with that? Everybody's a leader regardless of position or regardless of title or position. So what does that mean? You can either lead the organization to help drive the organization's success or you can be a roadblock. If you're a roadblock, you need to move on and find something you like to go do. You need to be a leader in helping drive the organization to success no matter what your role is. You should always be leading and as knowledge champions, you're leading the knowledge champion effort to implement these sort of efforts. The next one, we're a continuous learning and organization that's fundamental to knowledge management is continuous learning. And then the other one, knowledge is fundamental, share it. That's a management philosophy at Palo Verde and the Co-General Administration. Now how simple is that as an operating philosophy? Knowledge is fundamental, share it. As simple as that. It goes in all the documents and leaders talk about it. And they all let you read the rest of those things. So the key thing that they found at Palo Verde under all the different programs is employee engagement. And then how they were able to identify and play engagement as they put together some processes about what does it take to be an engaged leader? What's it take to be an engaged employee? What's it take to be an engaged thinking organization? I won't read all of these to you, but it's about everybody's role on that particular area. You basically, you as a leader want to explain the whys of decisions or actions. Your role as an employee is to understand that, ask questions, get clarity, be empowered to execute, and then you would get an engaged organization. They do a lot, at Palo Verde they've done a lot of work with employee engagement groups. They call employee affinity groups. These groups look, our community of practices within the organization. The craftsmanship lives here. That's for the craft workers, engineering excellence too. That's for the engineers. The women in nuclear, that's kind of an NEI effort and an IAEA effort. You see the engaged thinking operators. That's for the operators. Then VPP is a safety group. Organization is, forgot what it stands for now, but it's OSHA certified for safety efforts. Well these are the different types of clear lines that site their employee engagement. All right, it looks like we've got a replication here on slides here. So let's go to the next one. Strategies for sustainability. So this is a concept that we put in place at Palo Verde. So at every nuclear plant site, they have a process called a plant health committee. A plant health committee looks at equipment reliability, most important part of a plant. Reliable, understandable equipment, making sure they know how the plants behave and they're monitoring the equipment. A people health committee is about are you getting the results from your people programs which include your knowledge management programs. And it's the senior management team coming together, looking at these HR programs to ensure they're getting the right sort of success and results. And so there's KPIs that they design. It's a line around the, they get senior leadership line around the people programs. They're trying to monitor and assess the impacts and then they have kind of programs they monitor every quarter, every time they meet. And so the types of topics that are talked in people health are things like workforce planning, updates on staffing plans, succession planning, knowledge, KTNR is knowledge transfer and risk assessments, pipeline program updates, employee engagement program updates, more status updates and then ultimately kind of year-end sort of things of where you're going for the business. But this is a operational focus on HR programs. It's designed to create alignment and integration among the leadership team on the input, want to performance objectives and criteria. Now how many people know what the performance objectives and criteria are? They're called POs and Cs by Wano and Impo. They're very specific criteria that spells out the requirements of how a plant should operate. And anybody that's part of the regulatory industry or part of the plant industry have access to those and they spell out what you're supposed to be doing. Number two, they set strategy and direction for the plant's business plans. And so you're focused on the right people area. You're reviewing the program results. You're providing senior leadership oversight and you provide a sustainability process now because you've got the senior leadership team together looking at these people programs like knowledge management, succession planning, mentoring and development programs, your career mapping activities going on to make sure you get successes and traction in that area. And they're designed to meet on a monthly or every six week basis to stay focused on those initiatives. He's usually chaired by the deputy director along with the site and key managers from these organizations. They meet like I said, every four to eight weeks. They have a defined schedule and topics. They have key performance indicators. I'll show you some examples of them and the idea is that the outcomes are actionable. So these are some indicators, right? And then you'll have to use these. But retention rates, time to fill, employee headcount compared to goal, employee performance goals, succession planning, key positions filled with succession candidates, new higher attrition are examples. So here are some strategies for success. I'm gonna go through these. This is my last slide and we're gonna take a break. You have to institutionalize your processes. That means they have to be, the organization has to understand them. You have to create a guide or a procedure for sustainability. You have to have objective evidence that your programs are working. You have to have a way to measure them. You should be benchmarking others to make sure that you've got good practices and that you're learning from others. And then you have to find out you're getting the results that you're expecting, right? Follow these guidelines and any of your programs you'll have success. And actually, let me tell you how this came up, how this process came up to. My colleague, Tony Marco was at the Czech Republic for, it was an Ozark, 2000 and what year? 13 was an Ozark and they asked him. They said, Tony, how do you ensure you're gonna be successful? How do you sure these are successful? Tony kind of looked at him and he came up with it's okay to be right. If you put all those words together, he spells it's okay to be right. But he talked about every one of those aspects and that's where we put this in place because we find that this works, right? This is a good tool. So use this as your guide. All right, so key components. Have an effective workforce planning analysis and knowledge risk assessment. Have a robust accession planning and employee development programs. And finally, engaged employees are aligned with the organizational goals. Those are the key to a competent workforce from an HR perspective. Then finally, something to think about. The Urquai Nation, I think they're in Canada. When you make a decision, you must think out seven generations out. Now you don't need to think seven generations of nuclear power, but you ought to at least be thinking one or two generations out. And what's the impact? So the Indians thought about this long-term thinking a lot longer before as white guys did. So think about your decisions and how the impact there is not today, not tomorrow, but the years out. And it is now four o'clock. I'll take some questions and then it's coffee break.