Transcript Aligning-HR-Business-Strategies

Aligning HR & Business Strategy
“The long-held notion that HR would
become a truly strategic function is
finally being realized.”
“A new kind of HR professional is emerging to
manage this transformed function, someone
who deeply understands not only talentmanagement processes but also an
organization’s strategy and business model.”
Becoming A Strategic Business Partner
 Knowledge Requirements
 Staying focused on issues that matter to
the business
 Delivering capabilities that make a real
difference
Knowledge Requirement
 Bring strong technical expertise to the table and an
understanding of your company and its strategy.
 The courage and conviction for change and to be what your
organization wants you to be.
 Develop new skills as needed. Understand the data, the
financials, the market, etc.
 Be a true Partner and a true Coach, with honesty, integrity
and courage.
Business Partner Knowledge
Requirements
Strategic
Talent Planning
Talent Development
Performance Management
Executive Succession
Executive Compensation
HRIS
Shared Services
Acquisition Assessment
Cultural Integration
Strategic Alignment
Globalization
Organizational Architecture
Enterprise Integration
Acquisition Planning
Organizational Learning
Executive Development
Board Relations
HR
Business
Compensation/Benefits
Recruiting
Hiring/Firing
Data Reporting
Performance Assessment
Succession Planning
Orientation/Training
Relocation
Policy/Fair Treatment
Quality
Cost Reduction
Process Reengineering
Customer Relationship Management
Product Development
Change Management
Metrics
Team Effectiveness
Operational
Staying Focused On Business Issues
 What are the issues that matter?
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What’s keeping business leaders up at night?
What’s the “elephant on the table” regarding the future?
What drives the bottom line?
 Changing on how you spend your time
 Not getting pulled or pushed back into the old
HR box
Staying Focused On Business Issues
 Focus on Business Objectives
•
Structure activities around key business objectives
 Focus on the Environment
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Scenario planning on workforce issues to anticipate
changes in the environment.
 Focus on Core Values
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Ensure that core values are embedded in key HR
elements, e.g. hiring, job requirements, rewards
Business Partner Knowledge
Requirements
Strategic
HR
Executive
Talent Planning
Talent Development
Performance Management
Executive Succession
Executive Compensation
HRIS
Shared Services
Acquisition Assessment
Cultural Integration
Strategic Alignment
Globalization
Organizational Architecture
Enterprise Integration
Acquisition Planning
Organizational Learning
Executive Development
Board Relations
HR
HR
Generalist
HR
Specialist
Business
Executive
Strategic
Business
Partner
Business
Compensation/Benefits
Recruiting
Hiring/Firing
Data Reporting
Performance Assessment
Succession Planning
Orientation/Training
Relocation
Policy/Fair Treatment
Quality
Cost Reduction
Process Reengineering
Customer Relationship Management
Product Development
Change Management
Metrics
Team Effectiveness
Business
Partner
Operations
Professional
Operational
Business Partner Knowledge
Requirements
Strategic
HR
Executive
Talent Planning
Talent Development
Performance Management
Executive Succession
Executive Compensation
HRIS
Shared Services
Acquisition Assessment
Cultural Integration
Strategic Alignment
Globalization
Organizational Architecture
Enterprise Integration
Acquisition Planning
Organizational Learning
Executive Development
Board Relations
HR
HR
Generalist
HR
Specialist
Business
Executive
Business
Compensation/Benefits
Recruiting
Hiring/Firing
Data Reporting
Performance Assessment
Succession Planning
Orientation/Training
Relocation
Policy/Fair Treatment
Quality
Cost Reduction
Process Reengineering
Customer Relationship Management
Product Development
Change Management
Metrics
Team Effectiveness
Operations
Professional
Operational
Defining HR Planning
 Human resources planning is a process that identifies
current and future human resources needs for an
organization to achieve its goals.
 Human resources planning should serve as a link
between human resources management and the
overall strategic plan of an organization.
Approaches to Merging Strategic and
HR Planning
Afterthought / “Add-on”
Isolated
Integration
Approaches to Merging Strategic and HR Planning
Afterthought/“Add-on”
 The focus is on
business planning, with
HR practices
considered as an
afterthought.
Integration
 The focus is on a
synthesis of business
and HR planning.
Isolated
 The focus is on HR
practices and how the
HR function can add
value to the business.
Approaches to Merging Strategic and HR Planning
Afterthought/“Add-on”
Integration
Isolated
 Line managers own the
HR discussions, with
tangential involvement
of HR professionals.
 Line managers and HR
professionals work as
partners to ensure than
an integrated HR
planning process
occurs.
 HR professionals work
on the plan and
present it to line
managers.
Approaches to Merging Strategic and HR Planning
Afterthought/“Add-on”
 The outcome is a
summary of HR
practices required to
accomplish business
plans.
Integration
 The outcome is a plan
that highlights HR
practices that are
priorities for
accomplishing business
results.
Isolated
 The outcome is an
agenda for the HR
function, including
priority HR practices.
Integrated HR and Business Planning
 Is the foundation for assessing and understanding the current and
future needs of the organization.
 Is an important building block in continuously improving and
building the human capacity of the organization to deliver services
to our clients.
 Identifies optimal strategies and activities for important HR
management components as recruitment, retention, learning,
development, employee engagement, promotion, succession, and
employment equity.
Integrated HR and Business Planning Principles
 Takes place at all levels.
 Is information driven.
 Identifies risks and challenges.
 Is transparent, values-based and well communicated.
 Planning efforts are monitored, measured and evaluated.
Integrated HR and Business 5-Step Process
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 4:
Priorities
Step 5:
Performance
Determine your business goals.
Scan the environment.
Conduct a gap analysis.
Set HR priorities to help achieve business goals.
Measure, monitor and report on progress.
Determine Your Business Goals
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 4:
Priorities
Step 5:
Performance
 What are your organization's
ongoing HR and business
priorities?
 What emerging directions and
changes will have an impact on
HR issues?
 Have all necessary strategic
partnerships been established to
facilitate facilitation of HR
strategy?
Employment Information to be Analyzed
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
 Demographics and employment
characteristics
• Age
• Employment type
 Training/learning data
 Performance management
Step 4:
Priorities
Step 5:
Performance
 Internal workforce trends (e.g.
vacancy rates, turnover rates,
internal staff mobility,
promotions, secondments
Internal Scan
Step 1:
Perspective
Identify factors internal to the organization that may
affect HR capacity to meet organizational goals.
Have you considered…?
Step 2:
Scan
Step 3:
Gap Analysis
Step 4:
Priorities
Step 5:
Performance
 Labor management relations
 Anticipated changes to funding levels
 Changes in leadership & priorities
 Organizational re-structuring
 Corporate culture change
 Client satisfaction
 Capacity and quality of information
systems
 Training needs
External Scan
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 4:
Priorities
Step 5:
Performance
Determine the most important environmental factors
expected to affect workforce capacity.
 Current workforce trends among
competitors
 Demand and supply of employees in
growing occupations
 Current and projected economic
conditions
 Technological advancements Sources of
recruitment
Conduct a Gap Analysis
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 4:
Priorities
Step 5:
Performance
What are the organization’s current and future
HR needs?
 Do you foresee a skills shortage?
 Will changes in program delivery require
the acquisition of new skills?
 Do you have enough qualified middle
managers?
 Conduct a risk assessment on elements of
the scan critical to your organization’s
success.
Set HR Priorities
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 4:
Priorities
Step 5:
Performance
What are the major HR priorities; and What
strategies will achieve the desired outcomes?
Work plans may include strategies on:
 Recruitment/Staffing/Retention
 Organizational Design
 Change Management
 Leadership Development
 Performance Management
 Competency/Skills Development
 Succession and Contingency Planning
 Compensation
 Labor Management Relations
 Values and Ethics
Measure, Monitor and Report on Progress
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 4:
Priorities
Step 5:
Performance
 Develop clear and measurable HR-related
goals.
 HR performance measures should align
with indicators in the business.
 Put systems in place to track performance
indicators and analyze cost benefit.
 Performance indicators should inform your
priority setting for the next fiscal year.