HR Forecasting

Forecasting the Future with MEC

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The marketplace for the current retail industry is competitive and challenging. It also provides us with the opportunity to analyze the realities that businesses face in order to stay alive. MEC, formerly known as Mountain Equipment Co-op, is a case in point.

MEC is a Canadian outdoor equipment and clothing sales retailer with a targeted consumer base. Customers are members who can purchase a lifetime membership card to buy high-end adventuring products. If we were to apply one of the corporate strategies from our HR planning studies, MEC would most likely fit into the ‘differentiation strategy’ category. Established in 1971, MEC continued to persevere successfully until 2019, when it faced multimillion dollar losses as reported by the CBC.

As noted in the CBC article, MEC faced numerous environmental challenges. Again, if we were to apply our HR planning studies to this case, we would see that an environmental scan of the strategic business challenges facing MEC include both internal (organizational and staffing structures) and external (online and big-box store competition) impacts.

In January 2020, MEC announced the implementation of significant staffing and structural changes in response to the aforementioned financial and retail losses. As noted in this article, which summarizes their proactive strategic business initiatives, MEC appears to be implementing a ‘turnaround strategy’ in order to increase its organizational viability.

Part of this new business plan includes the need to convert a number of existing part-time or casual roles to full-time, permanent employment positions. This step provides an example of the need for HR forecasting, which must take into account the current HR supply measured against the future HR demand for human capital. With the implementation of this kind of staffing strategy, both the number of employees, and the corporate knowledge that these employees bring to their roles, should be retained, and will increase profitability and much-needed viability.

In order to survive, any business strategy that is focused on the need for change comes with the expectation of success in implementation, along with an escalated level of risk. It remains yet to be seen how these changes will all play out in this real-time application of human resources and business strategic planning for MEC.

Discussion Questions:

  1. What other types of business strategies could MEC use in order to remain viable in the current marketplace?
  2. What type of staffing strategies is MEC using to bolster employee support and confidence?
  3. What are ongoing environmental risks that MEC must consider in order to remain viable?
  4. If you were to apply a SWOT analysis to MEC’s new strategic directions, what would be the results?

Forecasting for Diversity

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How can organizations address the ongoing issues of diversity gaps in leadership?

This question is one that is explored by Rocio Lorenzo in the Ted Talk posted below.

[embedyt] https://www.youtube.com/watch?v=lPtPG2lAmm4[/embedyt]

As identified through Lorenzo’s research, organizations have two decisions to make:

  1. Who to hire?
  2. Who to develop and promote?

These two simple questions are critical when considering the development of the HR forecasting plan. When diversity in leadership is actively embedded into strategic goals, the answers to these two questions help to build a better organization.

Not, as Lorenzo says, that changing the face of leadership is about checking the targeted hiring box. Token targets through diversity plans are not enough to bring innovative change. Instead, organizations that think and build creativity into their forecasting plans use leadership development programs, tools and pools as a solid investment for future success. In order to change what leadership looks like at the top, a commitment to filling the diversity gaps through the HR forecasting process must drive through all levels of the organization.

The content for this Ted Talk is based on evidence based research. According to Lorenzo, diversity in leadership is not just a theoretical ‘nice-to-have’. The research tells us that it is an organizational ‘must-have’. As Lorenzo points out, achieving diversity with women in leadership roles is doable.

It takes an organizational commitment and the organizational decision to do better in order to make the doable achievable. In order to be achievable, the HR forecasting plan must come into play through targets and goals which implement diversity as a plan of action.

Diversity goes hand in hand with innovation. Together they drive organizational success, for real.

Discussion questions:

  1. Do you agree that organizations should establish active and measurable targets in order to implement diversity, specifically for women, in leadership? Explain your rationale.
  2. Identify how an HR forecasting plan can address both short and long term diversity goals.
  3. What types of HR programs and policies need to be in place in order to support an HR forecasting plan that promotes innovation and diversity?