The effective management of the people of an organisation has been closely linked with higher levels of revenue, greater profitability and overall competitive advantage. A robust HR strategy is therefore essential if people management is to be taken seriously and the HR function is to make a contribution to the business.
Although most people agree that HR strategy needs to be closely aligned to the overall business strategy, many HR strategies are essentially HR functional objectives or, worse, a series of vague, general statements that lack measures, focus or context. HR strategy should ensure that there is a clear framework for planning and decision making about the people in the organisation and provide a focus for activities such as recruitment, reward, performance management, succession planning, career development and training.
It also sets the framework for how HR services are delivered and the processes needed to support the strategy. The difference between an organisation without an HR strategy and one that does, is stark:
| In organisations without an HR strategy... |
In organisations with a mature HR strategy... |
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HR is seen as a separate activity to the core business.
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HR is a driver in the creation of a corporate strategy.
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HR planning is not done in conjunction with business plans.
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The organisation does not just state that people are its most important asset - it demonstrates this through all its processes.
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| There is no conscious planning of HR policies or practices in relation to business objectives HR measures and targets are seen to drive business measures and targets. |
HR activities are reactive to short term needs. HR professionals facilitate business strategy formulation and the management of change. |
Our Solutions: From Strategy to Operation
We see HR strategy development as a rational process with the following steps:
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HR Strategy Analysis and Validation
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HR Business Strategy Alignment
Creating the landscape in which we can develop the strategy and aligning the HR Strategy with the overall business goals.
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HR Strategy Development
Looking across all the key HR process areas and develop plans how the strategy will be delivered, with implications for service delivery, technology and partners.
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HR Action Planning and follow up
Generation of formal action plans to deliver the agreed HR strategy.
Our Approach to Strategy Design
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HR Strategy Analysis and Validation
Through workshops and a series of interviews with key stakeholders in the organisation we create an As-Is view on the current HR processes and delivery. These numerous findings are registered and prepared to use in the Alignment and Validation sessions.
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HR Business Strategy Alignment and Validation
Through a series of workshops, we help organisations to set people issues in the context of the overall business strategy and in turn, to explore how people issues shape the business strategy. This requires a thorough analysis of the economic environment, the employment market for the industry/sector and any internal drivers or constraints. This discovery phase creates the landscape within which we can develop the strategy. This phase will address questions such as:
- Vision - what does the future of the business look like?
- Mission - Where is the business going?
- Business Strategy - How are we going to get there and what is the people contribution?
- Business Plan - What financial targets are there over the next three years?
- Operating Plan - What are the specific actions and targets we need to achieve
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HR Strategy Development
We next work with clients to develop a series of options for HR strategy, which can then be evaluated and prioritised. We look across all the key process areas (for example, recruitment, reward, development, performance) to ensure that each activity works as part of a whole HR strategy. Once the basic structure is in place, we then develop plans for how the strategy will be delivered, with implications for service delivery, technology and partners. Appropriate performance indicators will also be developed to ensure that the success of the strategy can be measured. Communication of the strategy and any change management considerations is also a feature of this phase.
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HR Action Planning
A strategy that is not or cannot be delivered is of little use. Therefore, once the HR strategy has been agreed, this phase ensures that a series of formal actions is generated, which can be formally assigned to those accountable and responsible for achieving them. A regular review, monitoring and feedback process will also be put in place to ensure the strategy is meeting the needs of the business.
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