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8/7/2019 Aligning HR & Business Strategies
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Aligning HR & Business Strategy
8/7/2019 Aligning HR & Business Strategies
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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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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 Management
Product Development
Change Management
Metrics
Team Effectiveness
Strategic Alignment
Globalization
Organizational Architecture
Enterprise Integration
Acquisition Planning
Organizational Learning
Executive Development
Board Relations
HR
Specialist
HR
Generalist
Operations
Professional
Business
Partner
HR
Executive
Business
Executive
Strategic
Business
Partner
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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 Management
Product Development
Change Management
Metrics
Team Effectiveness
Strategic Alignment
Globalization
Organizational Architecture
Enterprise Integration
Acquisition Planning
Organizational Learning
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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Approaches to Merging Strategic and HR Planning
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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Approaches to Merging Strategic and HR Planning
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
Performance Management
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.