Aligning HR & Business Strategies

8/7/2019 Aligning HR & Business Strategies

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Aligning HR & Business Strategy


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The long-

held notion t

hat HR wouldbecome a truly strategic function is

finally being realized.


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A new kind of HR professional is emerging to

manage this transformed function, someonewho deeply understands not only talent-

management processes but also an

organizations strategy and business model.


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Becoming A Strategic Business Partner

Knowledge Requirements

Staying focused on issues that matter tothe business

Delivering capabilities that make a real

difference


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Knowledge Requirement

Bring strong technical expertise to the table and anunderstanding of your company and its strategy.

The courage and conviction for change and to be what yourorganization wants you to be.

Develop new skills as needed. Understand the data, thefinancials, the market, etc.

Be a true Partner and a true Coach, withhonesty, integrityand courage.


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Business Partner Knowledge

Requirements

Strategic

Operational

BusinessHRCompensation/Benefits

Recruiting

Hiring/Firing

Data Reporting

Performance Assessment

Succession Planning

Orientation/Training

Relocation

Policy/FairTreatment

Talent Planning

Talent Development

Performance Management

Executive Succession

Executive Compensation

HRIS

Shared Services

Acquisition Assessment

Cultural Integration

Quality

Cost Reduction

Process Reengineering

Customer Relationship ManagementProduct Development

Change Management

Metrics

Team Effectiveness

Strategic Alignment

Globalization

Organizational Architecture

Enterprise Integration

Acquisition Planning

Organizational Learning

Executive DevelopmentBoard Relations


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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 anticipatechanges in the environment.

Focus on Core Values Ensure that core values are embedded in key HRelements, e.g. hiring, job requirements, rewards


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Requirements

Strategic

Operational


Recruiting

Hiring/Firing

Data Reporting


Succession Planning


Relocation


Talent Planning

Talent Development




HRIS

Shared Services



Quality

Cost Reduction


Customer Relationship Management

Product Development

Change Management

Metrics

Team Effectiveness

Strategic Alignment

Globalization





Executive Development

Board Relations

HR

Specialist

HR

Generalist

Operations

Professional

Business

Partner

HR

Executive

Business

Executive

Strategic

Business

Partner


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Requirements

Strategic

Operational


Recruiting

Hiring/Firing

Data Reporting


Succession Planning


Relocation


Talent Planning

Talent Development




HRIS

Shared Services



Quality

Cost Reduction


Customer Relationship Management

Product Development

Change Management

Metrics

Team Effectiveness

Strategic Alignment

Globalization





Executive Development

Board Relations

HR

Specialist

HR

Generalist

Operations

Professional

HR

Executive

Business

Executive


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Defining HR Planning

Human resources planning is a process that identifies current and

future human resources needs for an organization to achieve itsgoals.

Human resources planning should serve as a link between

human resources management and the overall strategic plan of

an organization.


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Approaches to Merging Strategic andHR Planning

Aftert

houg

ht /

Add-on

Isolated

Integration


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Approaches to Merging Strategic and HR Planning

Afterthought/Add-on

The focus is on

business planning, withHR practices

considered as an

afterthought.

Afterthought/Add-on

The focus is on

business planning, withHR practices

considered as an

afterthought.

Integration

The focus is on a

synthesis of businessand HR planning.

Integration

The focus is on a

synthesis of businessand HR planning.

Isolated

The focus is on HR

practices and how theHR function can add

value to the business.

Isolated

The focus is on HR

practices and how theHR function can add

value to the business.


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Afterthought/Add-on

Line managers own the

HR discussions, withtangential involvement

of HR professionals.

Afterthought/Add-on

Line managers own the

HR discussions, withtangential involvement

of HR professionals.

Integration

Line managers and HR

professionals work aspartners to ensure than

an integrated HR

planning process

occurs.

Integration

Line managers and HR

professionals work aspartners to ensure than

an integrated HR

planning process

occurs.

Isolated

HR professionals work

on the plan andpresent it to line

managers.

Isolated

HR professionals work

on the plan andpresent it to line

managers.


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Afterthought/Add-on

The outcome is a

summary of HRpractices required to

accomplish business

plans.

Afterthought/Add-on

The outcome is a

summary of HRpractices required to

accomplish business

plans.

Integration

The outcome is a plan

that highlights HRpractices that are

priorities for

accomplishing business

results.

Integration

The outcome is a plan

that highlights HRpractices that are

priorities for

accomplishing business

results.

Isolated

The outcome is an

agenda for the HRfunction, including

priority HR practices.

Isolated

The outcome is an

agenda for the HRfunction, including

priority HR practices.


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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, employeeengagement, promotion, succession, and employment equity.


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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.


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Notes


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Integrated HR and Business 5-Step Process

Determine your business goals.

Scan the environment.

Conduct a gap analysis.

Set HR priorities toh

elp ach

ieve business goals.

Measure, monitor and report on progress.

Step 1:

Perspective

Step 2:

Scan

Step 3:

GapAnalysis

Step 5:

Performance

Step 4:

Priorities


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Determine Your Business GoalsStep 1:

Perspective

Step 2:

Scan

Step 2:

Scan

Step 3:

Gap Analysis

Step 3:

Gap Analysis

Step 5:

Performance

Step 5:

Performance

Step 4:

Priorities

Step 4:

Priorities

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?


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Employment Information to be AnalyzedStep 1:

Perspective

Step 1:

Perspective

Step 2:

Scan

Step 3:

Gap Analysis

Step 3:

Gap Analysis

Step 5:

Performance

Step 5:

Performance

Step 4:

Priorities

Step 4:

Priorities

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


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Internal ScanStep 1:

Perspective

Step 1:

Perspective

Step 2:

Scan

Step 3:

Gap Analysis

Step 3:

Gap Analysis

Step 5:

Performance

Step 5:

Performance

Step 4:

Priorities

Step 4:

Priorities

Identify factors internal to the organization that may

affect HR capacity to meet organizational goals.

Have you considered?

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


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External ScanStep 1:

Perspective

Step 1:

Perspective

Step 2:

Scan

Step 3:

Gap Analysis

Step 3:

Gap Analysis

Step 5:

Performance

Step 5:

Performance

Step 4:

Priorities

Step 4:

Priorities

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


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Conduct a Gap AnalysisStep 1:

Perspective

Step 1:

Perspective

Step 2:

Scan

Step 2:

Scan

Step 3:

GapAnalysis

Step 5:

Performance

Step 5:

Performance

Step 4:

Priorities

Step 4:

Priorities

What are the organizations current and future

HR needs?

Do you foresee a skills shortage?

Will changes in program delivery requirethe acquisition of new skills?

Do you have enough qualified middle

managers?

Conduct a risk assessment on elements of

the scan critical to your organizationssuccess.


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Set HR PrioritiesStep 1:

Perspective

Step 1:

Perspective

Step 2:

Scan

Step 2:

Scan

Step 3:

Gap Analysis

Step 3:

Gap Analysis

Step 5:

Performance

Step 5:

Performance

Step 4:

Priorities

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


Competency/Skills Development

Succession and Contingency Planning Compensation

Labor Management Relations

Values and Ethics


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Measure, Monitor and Report on ProgressStep 1:

Perspective

Step 1:

Perspective

Step 2:

Scan

Step 2:

Scan

Step 3:

Gap Analysis

Step 3:

Gap Analysis

Step 5:

Performance

Step 4:

Priorities

Step 4:

Priorities

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 s

hould inform yourpriority setting for the next fiscal year.

Aligning HR & Business Strategies

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