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HRs contribution to business strategy

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HR's contribution to business strategy. Peter Reilly ... mentation. Monitor. Internal. drivers. External. drivers. How is people & business alignment achieved ... – PowerPoint PPT presentation

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Title: HRs contribution to business strategy


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HRs contribution to business strategy
  • Peter Reilly

3
Understanding strategic formulation
  • Not always as per textbook
  • intended strategies
  • emergent strategies
  • political strategies
  • How does HR contribute
  • operationalises business strategy
  • provides separate people thrust
  • connected with organisational aims
  • disconnected HR best practice model
  • is an integral part of business strategy

4
Types of linkage between business HR strategy
business strategy informs HR actions
integrative
passing shipsindependent HRand
businessstrategies
two way linkagemutual influence
5
Linking business HR strategy
  • Factors that affect this linkage
  • Planning process
  • formal or informal
  • deliberative or emergent
  • Degree and timing of HR involvement
  • Extent of challenge permitted
  • Legitimate areas for HR input
  • Extent of HRs alignment with business - broad
    objectives and current imperatives

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Understanding the decision making process
  • If decided by formal processes
  • If matters are settled beforehand
  • If real action happens at operational level
  • Get a seat at the decision making table
  • Build coalitions, work to influence outside
    meetings
  • Ensure you have business partners effective at BU
    level

7
Stakeholder management
  • board
  • executive committee
  • senior managers
  • line managers
  • team leaders/supervisors
  • employees
  • employee representatives
  • external suppliers
  • government bodies
  • other agencies
  • what is their stake?
  • what are their goals?
  • what are their expectations?
  • how will change affect them?
  • what do they know already?
  • what influence do they have?
  • what power do they have?

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Characteristics of strategic HR
  • A philosophy underpinning people management
  • Seeing people as a competitive resource

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Making the case what Human Capital HR can deliver
  • Improved utilisation of talent
  • Higher productivity
  • Reduced costs
  • Better service delivery
  • Organisational integration
  • Aligned culture organisational values
  • Greater employee engagement
  • Stronger employee proposition etc

10
IES service-profit-chain model
Line Management
Company Culture
Employee Commitment
Customer satisfaction with service
Customer spending intention
Change in sales
Employee Absence
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Characteristics of strategic HR
  • A philosophy underpinning people management
  • Seeing people as a competitive resource
  • A planning approach to resources
  • numbers
  • skills
  • potential
  • Adds long-term rather than short term value

in line with business need
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Characteristics of strategic HR
  • Integrated brings together multifaceted
    activities

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People management integration
business strategy
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Characteristics of strategic HR
  • Integrated brings together multifaceted
    activities
  • Comprehensive covers the entire operation (at
    BU or corporate level)
  • High value added focuses on business critical
    issues
  • Builds social capital helps sharing, networking
    and relationships

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Characteristics of strategic HR
  • Integrated brings together multifaceted
    activities
  • Comprehensive covers the entire operation (at BU
    or corporate level)
  • High value-added focuses business critical
    issues
  • Builds social capital helps knowledge sharing,
    networking and relationships
  • Anticipates change through horizon scanning and
    internal sensing

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Connecting business HR strategies
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How is people business alignment achieved
  • What is the organisations big idea?
  • What are the business priorities?
  • What are the people priorities?
  • How do they link?

Bigidea
Businesspriorities
Peoplepriorities
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Establishing people priorities
What causes people to come to work, be motivated
and perform?
What stops them from being effective?
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A model of capability
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What are external influences?
  • Conduct environmental scanning
  • what is the legal context
  • how tight/loose is the labour market
  • are the right skills available
  • at what price
  • what is the output from schools, universities,
    etc
  • what are the political priorities

21
What is the state of the current workforce?
  • What proportion is skilled for their current and
    for future jobs?
  • What is its demographic shape?
  • How committed are employees?
  • attendance
  • productivity
  • staying or leaving
  • What are collective relationships like?
  • To what extent is employee potential being
    harnessed?

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What stops HR succeeding?
  • Human capital not recognised as a source of
    advantage
  • Weak organisational leadership
  • Poor teamworking across organisation
  • Business strategy poorly defined
  • There is little forward planning
  • People resources assumed to be unlimited, free or
    fully trained
  • Resources are hoarded not shared

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HRs own problem areas
  • Obstacles to success
  • time
  • capacity
  • focus
  • capability
  • positioning
  • organisation

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The default operating model
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HRs own problem areas
  • Obstacles to success
  • time
  • capacity
  • focus
  • capability
  • positioning
  • organisation
  • Relationships with management not working.The
    villains
  • HR not letting go
  • the line not taking it up
  • senior mgt sending wrong signals

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Results
  • Inadequate HR service performance
  • Concentrating on low value tasks
  • HR policies are disjoined inconsistent
  • They serve functional not organisational needs
  • Weak functional leadership
  • Poor internal reputation
  • Human capital not exploited, developed

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What should HR do?
  • Construct a workforce plan
  • Establish the supply/demand balance
  • Are the right people, in right jobs?
  • Review your recruitment model
  • able to attract - all types?
  • brand
  • proposition

Why dothey join?
Why dothey leave?
  • Review your retention model
  • right level of wastage?
  • numbers, types, quality

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A strategic review of recruitment and retention
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Different propositions for different groups
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What should HR do? (2)
  • Are you able to motivate staff?
  • degree of engagement
  • what motivates them?
  • what demotivates them?
  • what impact does pay and performance management
    have?

How do you know?
  • How well are employees aware of
  • the bigger picture?
  • their job?
  • what success looks like?

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What should HR do? (3)
  • How skilled are line managers in
  • Appraising performance?
  • Giving feedback?
  • Developing skills?
  • How effectively are
  • Employees allocated to jobs?
  • How well are jobs/the organisation structured?
  • Employees moved to meet business needs?

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What should HR do? (4)
  • What is the organisations
  • Ability to change/innovate
  • How good is the organisations governance
    structure?
  • How strong (and respected) are the organisational
    values, eg
  • On diversity?
  • Whistleblowing?
  • Meritocratic progression?

33
Measure people and HR functional performance
  • Through for example
  • Critical success factors/areas
  • Key performance indicators
  • Service level reviews
  • Customer surveys
  • Employee attitude surveys
  • Process mapping/activity analysis
  • Audits/reviews (incl... quality)
  • Scorecards
  • Benchmarking

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Improve measurement
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Examples of measures in multi dimensional
measurement
Customer views
36
Human capital measuring doing
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For further information contact www.employment-st
udies.co.uk peter.reilly_at_employment-studies.co.uk
thank you
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