strategy
Understanding strategic
formulation
Not always as per textbook:
■intended strategies
■emergent strategies
■political strategies
How does HR contribute:
■operationalises business strategy
■provides separate people thrust:
• connected with organisational aims
• disconnected: HR best practice model
■is an integral part of business strategy
Types of linkage between
business & HR strategy
business strategy
integrative
informs HR actions
passing ships:
independent HR two way linkage:
and business mutual influence
strategies
Linking business & HR strategy
Factors that affect this linkage:
Planning process
■ formal or informal
■ deliberative or emergent
Degree and timing of HR involvement
Extent of challenge permitted
Legitimate areas for HR input
Extent of HR’s alignment with business -
broad objectives and current imperatives
Understanding the decision
making process
If decided by Get a seat at the
formal processes decision making
table
If matters are Build coalitions,
settled beforehand work to influence
outside meetings
If real action Ensure you have
happens at business partners
operational level effective at BU
level
Stakeholder management
board what is their stake?
executive committee what are their goals?
senior managers what are their
line managers expectations?
how will change affect
team
them?
leaders/supervisors
what do they know
employees
already?
employee what influence do they
representatives have?
external suppliers what power do they
government bodies have?
other agencies
Characteristics of strategic HR
A philosophy underpinning people
management
Seeing people as a competitive
resource
Making the case: what Human
Capital HR can deliver
Improved utilisation of talent
Higher productivity
Reduced costs
Better service delivery
Organisational integration
Aligned culture & organisational values
Greater employee engagement
Stronger employee proposition etc
Service-Profit-Chain Model
Customer
Line Employee Customer
Company satisfactio Change in
Manageme Commitme spending
Culture n with sales
nt nt intention
service
Employee
Absence
Characteristics of strategic HR
A philosophy underpinning people
management
Seeing people as a competitive
resource
A planning approach to resources
■ numbers
in line with
■ skills business need
■ potential
Adds long-term rather than short term
value
Characteristics of strategic HR
Integrated – brings together
multifaceted activities
People management
integration
vertical
integration business
strategy
horizontal integration
Characteristics of strategic HR
Integrated – brings together
multifaceted activities
Comprehensive – covers the entire
operation (at BU or corporate level)
High value added – focuses on business
critical issues
Builds social capital – helps sharing,
networking and relationships
Characteristics of strategic HR
Integrated – brings together multifaceted
activities
Comprehensive –covers the entire
operation (at BU or corporate level)
High value-added –focuses business critical
issues
Builds social capital – helps knowledge
sharing, networking and relationships
Anticipates change – through horizon
scanning and internal sensing
Connecting business & HR
strategies
Internal
drivers
External
drivers
How is people & business
alignment achieved
What is the Big
organisation’s big idea
idea?
What are the
business priorities? Business
priorities
What are the
people priorities?
How do they link?
People
priorities
Establishing people priorities
ability: motivation:
skills, training engagement
education involvement
Development Deployment
access: application:
resourcing OD
recruitment product
succession market
strategy
Organisational action
What are external influences?
Corporate HR
BU BU BU BU BU
business partner business partner business partner business partner business partner
HR’s own problem areas
Obstacles to Relationships with
success: management not
■ time working.
■ capacity The villains:
■ focus ■HR – not letting go
■ capability ■the line – not taking
it up
■ positioning
■senior mgt – sending
■ organisation
wrong signals
Results
Inadequate HR service performance
Concentrating on low value tasks
HR policies are disjoined & inconsistent
They serve functional not organisational
needs
Weak functional leadership
Poor internal reputation
Human capital not exploited, developed
What should HR do?
Construct a workforce plan
Establish the supply/demand balance
Are the right people, in right jobs?
Review your recruitment model
Why do
■ able to attract - all types? they
join?
■ brand
■ proposition
Review your retention model Why do
they
■ right level of wastage? leave?
■ numbers, types, quality
A strategic review of
recruitment and retention
H
Attract &
retain
Organisational
impact
Outsource
Commoditise
L
H Market availability L
Different propositions for
different groups
Hire Exploit Fire
People
HR
management
efficiency
efficiency
People
HR
Management
effectiveness
effectiveness
Examples of measures in multi
dimensional measurement
Cost/Income
Process metrics
against
Ratios
headcount
Customer
views
Strategic alignment
Human Capital
Functional positioning
Human capital measuring & doing
business goals
HR policies
& practices
HCM
measuring
reporting acting
managing
internal external people
business
performance
… thank you