Strategic Workforce Planning: Insights from Interviewing 100 CTOs

Strategic workforce planning is a critical function for CTOs, balancing immediate technical needs with long-term team and organisational goals. Having interviewed 100 CTOs, I have a clear idea of the current processes, challenges, and strategies for effective workforce planning that this community is working through. This article explores these insights, highlighting the complexities faced by CTOs, particularly in the current economic climate of the UK in 2024.

Traditionally, the first step in strategic workforce planning is assessing the current capabilities of your team. This involves understanding the skills, strengths, and gaps within your existing workforce.

The CTO’s I spoke to about the processes they were following indicated they were taking different approaches, however most were following a combination of the following: creating a skills inventory to document the technical skills and proficiencies of their team members, some then looked at performance reviews to identify high performers and also areas where additional training may be needed. Most then conducted a gap analysis to identify discrepancies between current capabilities and future requirements.

Challenges at this point included a lack of time and sometimes motivation “to conduct a thorough assessment of your team takes time and most of the time, that is something I just don’t have.

“The HR team get involved but because they don’t always fully understand the nuances of the roles, they need my input, which is a catch 22 because I am being pulled in different directions. The process then loops and it doesn’t get finalised”

“I can see the value in it, but I also know that on the other side, the business doesn’t have the appetite to spend on headcount at the moment. We need more people to help get projects over the line but they are slow to recruit”.

Looking at future needs of the team is however a crucial element within cost and time saving activities. Those that were following this protocol were typically taking these next steps.

Looking at the company’s business strategy and aligning the team planning. ?If you want to take it further, at this point you could also include market trends to help predict which skills will be in high demand. Other CTO’s were using scenario planning at this point to help them understand how external factors affect the dynamics of the team.

Developing a Talent Acquisition Strategy

Once the research around current capabilities, gaps, trends and future needs was done, those CTO’s that were fully committed to a strategic workforce planning exercise began by prioritising roles. Because they had the back story it was easier for them to understand the critical roles that needed to be filled first rather than guessing based on gut instinct or past experiences.

On this, to determine which roles to secure first, CTOs should consider these 3 factors:

1. Prioritise roles that have the most significant impact on achieving business goals.
2. Focus on roles with skills that are scarce in the market.
3. Ensure that the roles align with the company’s strategic objectives.

As one CTO advised, "It's crucial to secure roles that drive innovation and support our strategic initiatives."

One of the areas that many CTO’s overlooked was the power of the team EVP. A good EVP forms part of a workforce strategy. How the brand is perceived externally can make the difference between a person choosing you or a competitor as an employer of choice, but even more powerful is how the team EVP is perceived. Documenting and showcasing the projects, tech stacks, team dynamics, department vision and roadmap is something that can be left out of the recruitment process, but it is a very powerful tool to leverage.

I spoke to CTO’s about how they built a business case for workforce budgets.

Those that were most successful were great at demonstrating the ROI of investing in talent. Here are some of the strategies they pulled on:

1. Focus on how it will increase productivity: e.g faster-to-market or improve innovation.
2. Emphasise the risks of not investing in the workforce, including project delays, lower quality, and reduced competitiveness.
3. Leverage data and analytics to support your case. Present metrics such as turnover rates, time-to-fill, and the cost of vacancies.
4. Provide regular updates on workforce planning progress and challenges.
5. Involve key stakeholders in the planning process to ensure their perspectives are considered.
6. Use clear and concise communication to explain the rationale behind workforce decisions.

Conclusion

Strategic workforce planning is a complex but essential function for CTOs, particularly in the dynamic tech landscape of 2024. By understanding the process, anticipating challenges, and leveraging best practices, you can build a team capable of driving your company’s success. From what I can see, despite the current economic challenges in the UK, proactive and strategic workforce planning remains a cornerstone for organisational growth and innovation.