aligning hr to business strategy

Aligning Human Resources

University of Budapest MBAVisiting Professor Program

Gary Wheeler, SPHR, GPHR, CCP, CBP

Objective• How to implement an HR

strategy that is aligned to the overall business strategy

• HR Competencies• HR best practices• Case study of HR as a

strategic partner

Gary Wheeler, The Virtual HR Director, LLC

Business Background

• Restaurant Manager & Area Manager Shoney’s Big Boy Enterprises Pizza Hut, Inc.

• United Parcel Service Industrial Engineering, Operations

and Human ResourcesDistrict Human Resources

Manager: Central Tex - San Antonio, Texas North Ohio - Cleveland, Ohio West Long Island - Brooklyn, Queens,

Bronx, Westchester, NY


Education

• University of Maryland University College– B.S. Human Resources– Master’s Business Administration (MBA)


Agenda• Evolution of HR• Why HR?• HR Competency Model• Developing an HR Strategy• Sysco Foods Case Study

(video)• Best Practices• Marcus Buckingham (video)


Opportunity• Ask questions• Clarify any myths• Gain a better understanding

of U.S. corporations• Share some of your thoughts

and ideas


Tell Me About You• First Name• Your Company

– Local– Regional– Global

• Does your company do business in the U.S.

• Have you ever traveled to the U.S.


A Few of Questions• Do you have an HR

department?• What does HR do?• Are you in HR?• Do you want to be in HR?• Certificate?


Curious• How many of you would like

to get rid of HR?


Interview Questions Quiz• What country were you born

in?• Are you married?• How many kids do you have?• Do you have a car?• How old are you?• What year did you graduate

from high school?• Do you have a handicap?


Should HR Executives Understand your company’s?• Project management• The balance sheet• The income statement• Financial ratios• Revenue and profit projections• Risk assessment• The company’s value proposition• Supply chain management


Historically HR is about People


Evolution of HR• Pre 1970’s

– Industrial Relations• Workers• Health and Safety

– Accounting• Compensation• Benefits• Administration• Personnel Activities


Evolution of HR cont.• Human Resources

– Strategic Business Partner– Employment & Workforce

Planning– Employee Relations– Compensation and Benefits– Learning and Development– Health and Safety– Administration– Employee Services


Why HR?• Environmental factors• Business trends• Stakeholder expectations


Changes in Business• Regulatory change has

resulted in deregulation and tariff reductions

• Technological advances• The Internet • Lower transportation costs


Business Trends• Globalization• Competition

• Note: • The next ten slides from author Dave

Ulrich


Shareholder Expectations• Employee retention• Reputation management• Customer loyalty• Shareholder returns

Organizational Capabilities• Productivity costs• Speed• Service• Mergers, acquisitions,

alliances• Innovation• Collaboration /synergy• Branding• Quality

HR Competency Model

Strategic Contribut

ion

Business Knowledg

e

HR Delivery

HR Technolo

gy

PersonalCredibilit

y

Strategic Contribution• Culture management

• Fast change

• Strategic decision making

• Market-driven connectivity

Personal Credibility• Effective relationships

• Achieving results

• Personal communication

HR Delivery• Staffing• Development• Organization structure• HR measurement• Legal compliance• Performance management

Business Knowledge• Value chain knowledge

• Value proposition knowledge

• Labor knowledge

HR Technology• HR technology


HR Strategy An image of the desired

future / inspirational & aspirational

A clear and compelling goal

Needs/wants to achieve

The plan by which the goals and mission will be

achieved

Vision

Mission

Goals

Strategies

InitiativesTactical / operational plans to implement the strategy

© Copyright Human Resource Business Partner Consultant 2005

Strategic Planning Process

InitiateProject

AssessExternal

Environment

EvaluateInternal

Environment

ConductStakeholder

Surveys

AnalyzeStrategic

Options

Finalize Strategy

DevelopImplementation

Plan

Analyze and prioritize strategic

options and developa vision

Complete dataCollection and analysis

Developing an HR Strategy• Cross-functional team• Company vision statement

– HR vision statement• Company mission

– HR mission statement• Company strategic

imperatives– HR strategic imperatives


HR Metrics• Organization metrics

– HR metrics aligned to improve organization goals

– HR metrics are a part of line management metrics

– Measure outcomes not just activities

– Measures should equate to dollars


Metric Examples• Retention or turnover• Employee benefit costs• Employee satisfaction survey• Injury rates or frequencies• Customer complaints• % Performance targets met• Return on training

investment• Training costsGary Wheeler, The Virtual HR Director, LLC

Balanced Score Card• Financial

– Retention or turnover– Employee benefit costs

• People– Employee Satisfaction – Injury rates of frequency

• Customer– Costumer complaints– % Targets Met

• Internal Business Processes– Return on training investment– Training costs


Initiatives, Programs, Projects• Strategic Imperative–Initiatives

•Programs–Projects


Example• Employee Performance and

Satisfaction– Employee safety

• New safety training• Safety awareness campaign• Health and Safety Committees• Safety Awareness Day

– Employee communication• Online newsletter• Employee portal• Annual one-on-one communication


Best Practices

Key Themes• HR executives must first be business

people, speaking the language of business and presenting a compelling business case.

• The key responsibility of HR is to create the workforce that delivers on the business strategy.

• HR executives must demonstrate courage, values, and leadership


Good to Great

• Great companies think first about “who”, and then about “what”

• Once a company has created momentum, it needs to keep a balance between preserving its core values and changing its operation practices

Jim Collins – Good to Great: Strategies for Your Business


Corporate Governance• The key to an ethical company is a

culture of values, integrity, and respect for the law. HR is at the core of creating this culture.

Richard C. Breeden – Corporate Governance, Ethics and Corporate Culture


Structures and Systems• The HR strategy is driven by the

business strategy.• Sysco’s human capital model supports

the company’s overall business strategy:

1. Customer Centric2. Cost effective3. Capability4. Commitment5. Compliance6. Clear expectations7. Common understanding

Ken Carrig – Creating Competitive Advantage Through People – Strategy, Structure and Systems


Structures and Systems cont.• Transformational HR departments focus

on driving the business by building the organization.

• Companies need to pay well, but find other ways to motivate employees after they are hired.

Ken Carrig – Creating Competitive Advantage Through People – Strategy, Structure and Systems


Coaching for Leadership• Participating in a feedback process is

critical to realigning a person’s view with reality and helping develop as a leader.

Marshall Goldsmith – Coaching for Leadership


Contribution to Bottom Line• The ultimate competitive advantage is

an empowered workforce aligned with and focused on executing the company’s strategy.

• Achieving an organization’s strategic goals may involve redesigning work responsibilities and evaluation systems.

Carleen Haas – Strategic HR’s Contribution to the Bottom Line


Questions?

Thank You


[email protected]://www.thevirtualhrdirector.com

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