Aligning HR

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Aligning HR Business Strategy
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The long-held notion that HR would become 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, someone who
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 to the
  business
• Delivering capabilities that make a real
  difference

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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.

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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
Business
HR
Compensation/Benefits Recruiting Hiring/Firing Dat
a Reporting Performance Assessment Succession
Planning Orientation/Training Relocation Policy/Fa
ir Treatment
Quality Cost Reduction Process Reengineering Custo
mer Relationship Management Product Development
Change Management Metrics Team Effectiveness
Operational
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Staying Focused On Business Issues

• What are the issues that matter?
• Whats keeping business leaders up at night?
• Whats 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

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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
  anticipate changes in the environment.
• Focus on Core Values
• Ensure that core values are embedded in key HR
  elements, e.g. hiring, job requirements, rewards

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Business Partner Knowledge Requirements
Strategic
Business Executive
Talent Planning Talent Development Performance
Management Executive Succession Executive
Compensation HRIS Shared Services Acquisition
Assessment Cultural Integration
HR Executive
Strategic Alignment Globalization Organizational
Architecture Enterprise Integration Acquisition
Planning Organizational Learning Executive
Development Board Relations
Strategic Business Partner
Business
HR
Compensation/Benefits Recruiting Hiring/Firing Dat
a Reporting Performance Assessment Succession
Planning Orientation/Training Relocation Policy/Fa
ir Treatment
Quality Cost Reduction Process Reengineering Custo
mer Relationship Management Product Development
Change Management Metrics Team Effectiveness
HR Generalist
Business Partner
HR Specialist
Operations Professional
Operational
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Business Partner Knowledge Requirements
Strategic
Business Executive
Talent Planning Talent Development Performance
Management Executive Succession Executive
Compensation HRIS Shared Services Acquisition
Assessment Cultural Integration
HR Executive
Strategic Alignment Globalization Organizational
Architecture Enterprise Integration Acquisition
Planning Organizational Learning Executive
Development Board Relations
Business
HR
Compensation/Benefits Recruiting Hiring/Firing Dat
a Reporting Performance Assessment Succession
Planning Orientation/Training Relocation Policy/Fa
ir Treatment
Quality Cost Reduction Process Reengineering Custo
mer Relationship Management Product Development
Change Management Metrics Team Effectiveness
HR Generalist
HR Specialist
Operations Professional
Operational
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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 its goals.
• 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 and HR Planning

• Afterthought / Add-on
• Isolated
• Integration

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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.

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Approaches to Merging Strategic and HR Planning

• Afterthought/Add-on
• Line managers own the HR discussions, with
  tangential involvement of HR professionals.

• Integration
• Line managers and HR professionals work as
  partners to ensure than an integrated HR planning
  process occurs.

• Isolated
• HR professionals work on the plan and present it
  to line managers.

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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.

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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,
  employee engagement, 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
Step 1 Perspective
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.
Step 2 Scan
Step 3 Gap Analysis
Step 4 Priorities
Step 5 Performance
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Determine Your Business Goals

• 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?

Step 1 Perspective
Step 2 Scan
Step 3 Gap Analysis
Step 4 Priorities
Step 5 Performance
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Employment Information to be Analyzed

• 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

Step 1 Perspective
Step 2 Scan
Step 3 Gap Analysis
Step 4 Priorities
Step 5 Performance
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Internal Scan
Identify factors internal to the organization
that may affect HR capacity to meet
organizational goals. Have you considered?
Step 1 Perspective
Step 2 Scan

• 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

Step 3 Gap Analysis
Step 4 Priorities
Step 5 Performance
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External Scan
Determine the most important environmental
factors expected to affect workforce capacity.
Step 1 Perspective

• Current workforce trends among competitors
• Demand and supply of employees in growing
  occupations
• Current and projected economic conditions
• Technological advancements Sources of recruitment

Step 2 Scan
Step 3 Gap Analysis
Step 4 Priorities
Step 5 Performance
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Conduct a Gap Analysis
What are the organizations current and future HR
needs?
Step 1 Perspective

• 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 organizations success.

Step 2 Scan
Step 3 Gap Analysis
Step 4 Priorities
Step 5 Performance
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Set HR Priorities
What are the major HR priorities and What
strategies will achieve the desired outcomes?
Work plans may include strategies on
Step 1 Perspective

• 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

Step 2 Scan
Step 3 Gap Analysis
Step 4 Priorities
Step 5 Performance
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Measure, Monitor and Report on Progress
Step 1 Perspective

• 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.

Step 2 Scan
Step 3 Gap Analysis
Step 4 Priorities
Step 5 Performance