connecting to the business strategy & defining the people strategy

Connecting to the Business Strategy /Defining the People Strategy

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Connecting to the Business Strategy

/Defining the People Strategy

Aviva GattNovember 2016


“The HR Value proposition” (Ulrich & Brockbank- HBS press 2013)

• “Human Resources work does not begin with HR- it begins with the business…Competitive advantage exists when a firm does something unique that competitors cannot easily copy. HR passes the wallet test when it creates human abilities and organizational capabilities that are substantially better than those of the firms competitors”


Today’s agenda

• In todays presentation we are going to define the process of how HR supports the business strategy AND defines and implements the people & organizational strategy

• We are going to look at the leadership, talent & organizational aspects needed to align with the overall company strategy.

• KPIs• Think strategically• Plan • Execute & measure (+ budget accordingly)• Communicate & align with others….


Once the company has defined its goals- ask….• Do you know the strategic business goals of your organization?• What are the key drivers of these goals?• Where does it connect to people, organization, processes?• What is the leadership, talent, knowledge and organizational aspects

needed to achieve this plan**• What do we have, what needs to improve or change? what is missing?

What do we need to keep? “ Build, Buy? Adapt?”• How do we measure success? What are the most effective metrics?• Cost


Questions to ask** • Is the senior leadership capable of creating and achieving the strategic

advantage we need – both individually and as a team?• Exec team- do we have the capability to execute- both each individual , as an

exec team and within their department?• Middle management (depends on size)-do we have ability to execute? To scale?

• -as a manager, team, individual

• What is the talent needed to achieve our strategy & plans? Do we have it? Are we developing organically or recruiting externally? (both

professional/technical & management), succession plans..• Organization -Is our culture & environment productive /high

energy/motivating? How can we drive performance to higher level? In our structure robust enough to support our plans & growth? Is our

compensation strategy aligned – both in practices & rewards? Is our team connected & motivated?


Once you have your assessment and draft…• Get feedback- meet with CFO, CEO, other C-level, other leaders

• Further definition of what is needed to succeed• Identify your unique aspects that will make a difference- leverage them• Implement best practices, ensure alignment with all other functions• Base your plan on data and analytics, connect to the $ (time to hire, cost to

hire, training/onboarding cost, qualify recruiting sources etc..)• Talk metrics & ROI, Budget it….• Your plan should be concise:

• summarizing key objectives, • list key initiatives• identify metrics – current versus target• Cost (budget needed)


What are the Business Issues (that connect to HR) ?

• Talent Acquisition & Retention• Growth• Globalization• Culture or organizational changes• Mergers & Acquisitions• Changing Demographics• Changing Psychological Contract


Example- Annual HR Planarea Strategic

goalgoal metrics Cost (?) status achievement

Recruiting Talent acquisition

Recruit 7 JAVA SW each quarter 100% achievement, 50% exceed expectations

Training Talent, Leadership

Onboarding effectivity – within 8 weeks

Individual on boarding plan before start date-100%, evaluation at week 9- 100%, review Q2

Retention Talent Retain all key employees, retention plans for all key employees

Mapping of key employees – Jan 2017, 90% retention- q4June 2017- review/update list

Compensation Compensation mapping ( company versus market, key employees versus market),MBO & Retention plans

Q1 – plan, q3- 100% implementation

Successor coverage

Organization readiness, scalability, resilience

Coverage for all critical positions

Q1 – define critical position, Q2 – successors mapped,q3- individual plan review for each

Global Growth Organization, Talent, Global, Business

2 subsidiaries in Europe, 1 subsidiary in APACUS HQ

Q1- map out legal, accounting, recruiting sources / info, Q2 recruit country manager & support, communication channels Q3 relocate….


Annual Budget- templatecost to company/nominal 2017

q1 q2 q3 q4# employees

education & training technical training

skill training management training

conferences

employee relations gifts- birthday/wedding etc..

holiday gifts

team building activities company trip

company evening company party

Meals

Total Payroll bonus raise cars

Total Outside Services

Consulting Recruiting

Outside Services


Basic Process for HR Strategy• Scan the external environment• Identify Strategic Business Issues• Identify People Issues• Develop HR Strategy• Communicate the HR Strategy• Measure & update


Where can you find HR strategy?• Performance/productivity• Leadership• Talent management (incl. acquisition, retention & development)• Work environment• Change management• Execution• Culture• Globalization


HR Challenges• Recruitment - right people, right timing• Develop management & leadership• Retention (including replace weak performers)• Execution-effective processes, interfaces• Competitive compensation• Change management• Internal communications• Global infrastructure


Backup Slides


HR – Connecting to the Business

• “Good to great companies become so by getting the right people in the right roles, having “level 5 “ leaders and having discipline in thought and action” (Jim Collins “good to great”/”built to last”)

• HR plays a key role in making organizations great by getting the right people in the right roles, helping create and maintain culture, define and preserve the core values, find and promote level 5 leaders, installing discipline throughout the organization.


Ram Charan• “No company can succeed long term without organic growth that is

sustainable and profitable” • growth is a result of a company’s strategy, culture, capabilities and

ability to execute- because these factors are people driven- hr plays a key role in companies ability to grow.

• The responsibility rests with HR to create practices for hiring, training, evaluating, and rewarding employees based on growth and to adopt programs and a culture that encourages growth”


Ram Charan-2

6 important qualities are needed:• Culture- focused on driving growth, resilience, making it

happen, growing employees• Experimentation (ideas, markets, learn from failures)• Marketing skills(developing customer insights, segmenting

market to find unmet needs, compelling value propositions, forge link to product development)

• Growth leaders• Reward growth• Discipline

“strategy is easy: making it happen is the hard part”


Example (US)

connecting to the business strategy & defining the people strategy

Documents