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
organizations 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?

Whats keeping business leaders up at night?

Whats 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

Scenario planning on workforce issues to anticipate changes in

the environment.

Focus on Core Values

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

Integration

The focus is on
business planning, with
HR practices considered
as an afterthought.

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

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.

Isolated
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
Step 4:
Priorities
Step 5:
Performance

Demographics and employment

characteristics
Age
Employment type

Training/learning data
Performance management
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 organizations 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 organizations
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.