The evolution of the Human Resources function continues. Leadership expectations have shifted the focus of the HR department from accountability to achieve HR objectives to an accountability to achieve overall business objectives. HR metrics are embedded into the organization's success measures and linkages to business results are clear.
Today's most effective HR organizations are nimble, innovative and solutions-oriented. They are designed to allow HR resources to be quickly shifted to address changes in business needs. The HR infrastructure is built on strong technology and rational processes that enable consistent and reliable service delivery regardless of where managers and employees reside within the organization.
Briefly stated, the Business Strategy is overall scope and direction of an organization and the way in which its various business operations work together to achieve particular goals.
A definition of Business Strategy articulated by Dr. Michael Watkins illustrates the importance of having a clear People Strategy. He wrote: " A Business Strategy is a set of guiding principles that, when communicated and adopted in the organization, generates a desired pattern of decision making. A strategy is therefore about how people throughout the organization should make decisions and allocate resources in order accomplish key objectives. A good strategy provides a clear roadmap, consisting of a set of guiding principles or rules, that defines the actions people in the business should take (and not take) and the things they should prioritize (and not prioritize) to achieve desired goals."
The People Strategy defines how the organization will manage and motivate a workforce that can effectively implement the Business Strategy. This involves more than identification of the competencies that will be required for implementation.
At a minimum, this includes:
- the ability to monitor and analyze the market for talent and the implementation of a multi-faceted, nimble sourcing strategy
- clear communication of the factors that differentiate the organization as an employer (the people culture)
- a comprehensive on-boarding and support program
- identifying the tools that enable managers to provide feedback, mentor and develop staff members, each with unique needs and desires
- articulation of the expectations that the organization has regarding people management
- developing a line of sight to business results and how you will know the people strategy is achieving the desired outcomes
An HR Strategy is the foundation for HR functional design. It provides both a framework and guiding principles for the development of an HR operating model. The HR Strategy articulates how the HR function will support the People Strategy, deliver value and employ resources and services to support business priorities.
There are three major design components:
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