Aligning HR Business Strategy The longheld notion that

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 organization’s 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? • What’s keeping business leaders up at night? • What’s 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 Ø Focus on Business Objectives • Structure activities around key business objectives Ø Focus on the Environment • Scenario planning on workforce issues to anticipate changes in the environment. Ø 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” § The focus is on business planning, with HR practices considered as an afterthought. Integration § 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 Isolated § 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. § 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 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 organization’s 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 organization’s 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.