HR Strategy - How to develop and deploy your hrm strategy - a manual for HR and non HR professionals
Developing an HR Strategy
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Transcript of Developing an HR Strategy
Developing an HR Strategy Roadmap
6 Step Approach
6 Step Approach : Overview
Re-examines the role of HR function in the context of Business Strategy 20XX
5
HR Strategic Insights
2
Diagnose the Business Strategy
Integrates the conceptual understanding with the choices that the Business is likely to make to enable its 20XX aspirations
3
Organization Analysis
Identifies capabilities , mind-sets , processes which would enable/limit the business to deliver its Business Strategy 20XX
4
Integrating Steps (1-3) 6
The HR Big Moves
Identifies the Top 3-5 Big bets of HR
1Conceptually examine the Linkages between Business & HR Strategy
Answers the question “ How HR Impacts business results
Step 1 : Business and HR Strategy Linkages
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1Conceptually examine the Linkages between Business & HR Strategy
Answers the question “ How HR Impacts business results
Customer & Key Accounts Management Strategy
Business Results and HR Linkages : Manufacturing
What is evident and gets measured in the business at various levels
Turnover/Revenue Production Volume Cost of Manufacture
Pricing Premium(VAP) Product Mix Geo Mix
Capital Expenditure
Market Share Capacity Utilization Plant Mix
RM Source Mix/Securitisation Conversion Efficiencies /Operating Efficiencies Productivity- Assets Productivity-Manpower
Green Field/Brown Field Improvement & Maintenance Capex New Product Development/Innovation
What causes the results to happen
Operations /Technology Strategy R&D Strategy
Financing Strategy
HR Strategy
SCM Strategy Direct Impact In-Direct Impact
Service Delivery Model/Strategy
Business Results and HR Linkages : Services
What is evident and gets measured in the business at various levels
Turnover/Revenue Distribution Channels Cost to Serve
Pricing Premium (VAP) Product Mix Geo Mix
Capital Expenditure
Market Share Channel Mix Channel Partners
Service “Interface” Costs Back Office Costs Logistics Costs Marketing, Branding, Promotion Costs
Channel Capex Distribution Capex Technology Investments
What causes the results to happen
Operations /Technology Strategy
Brand Strategy
Financing Strategy
HR Strategy
Customer Engagement Model Direct Impact
In-Direct Impact
Step 2 : Understanding the Business Strategy
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Diagnose the Business Strategy
Integrates the conceptual understanding with the choices that the Business is likely to make to enable its 20XX aspirations
3
4
6
1
Business Strategy 20XX Diagnostic
Objective : Qualitatively understand the Business Strategy 20XX
Key Outputs
a) Identify “Strategic Choices” the business has made/likely going to make to achieve its Vision 20XX a) This can be done through a “structured questionnaire” /interview with the
Business Head and or respective CXO’s /Corporate Function Heads as the case maybe
Business Strategy 20XX Diagnostic (Illustrative Questions)
Manufacturing Sector 1. What is the Estimated Market Share going to be in 2020 ,
and what is the YOY CAGR
2. What is going to be the Revenue mix between Old and New Products ( Commodity vs VAP )
1. What % of revenues will come from new markets /geographies
3. What is the Capacity build up plan like ( Green field, brown field expansions ) , what are the key assumptions made for new plants to produce commercially
4. What % of growth has been assumed to be inorganic
5. What is the anticipated Gross Margin Growth YOY , what strategies are being devised to retain/increase margins
6. What are the strategies to secure critical raw material /feedstock
7. What are the major changes anticipated in the regulatory environment
8. How will new Projects/Expansions be funded ( Borrowals vs Internal Accruals )
Services Sector 1. What is the Estimated Market Share going to be in 2020 ,
and what is the YOY CAGR 2. What is going to be the Revenue mix between Old and New
Products ( Commodity vs VAP ) 1. What % of revenues will come from new markets /
geographies 3. What is going to be the Distribution Strategy, what new
channels , distribution models are being explored 4. What % of growth has been assumed to be inorganic 5. What is going to be the Technology focus ( IT, Digital
Enablement) and its likely impact on productivity 6. What is the Service Delivery Model going to be , what is
going to change , what will remain same 7. What is are the material regulatory changes that are
anticipated and how is it going to impact the product/service offerings
Illustr
ative
, will
be
custo
mised fo
r the c
lient
Step 3: Organization Analysis
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Organization Analysis
Identifies capabilities , mind-sets , processes which would enable/limit the business to deliver its Business Strategy 20XX
4
6
1
Organization Analysis
This Section has 4 parts
1.Organization Capabilities 2. Workforce Trends 3. Employee Feedback 4. Leadership
Expectations
The context of Organization Analysis is the Business Strategy 20XX . While doing this exercise , the CHRO’s need to continuously ask the question “ What are the capabilities , mind-sets , processes/innovation excellence that are required to deliver on the Strategy . Hence this is NOT an AS-IS assessment
Step 4 : Integration of Steps 1-3
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4
Integrating Steps (1-3) 6
1
Integrating Step Chapter Key Question The Process Output /Insight
Generated
HR Linkages to Business Results
How “could” HR impact Business Results?
Used a conceptual model to draw out the linkages ( Page 4)
The HR linkages to Business Strategy (Conceptual understanding)
Business Strategy 20XX
What choices will the Business make to deliver its Business Strategy 20XX?
Interviews , Document Review , Understanding of key assumptions
The priorities and milestones of the Business Strategy 20XX
Organizational Analysis
How ready is the business today to meet its goals for 20XX?
Assessed all the “soft” ( people, cultural, capability) dimensions of the Strategy
Insights on the Organizational factors that aid or impede the Business Strategy
Step 5 : HR Strategic Insights
Re-examines the role of HR function in the context of Business Strategy 20XX
5
HR Strategic Insights
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4
6
1
Step 6 : HR Big Moves
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6
1
6
The HR Big Moves
Identifies the Top 3-5 Big bets of HR