Seven steps for aligning HR to business strategy
Professionally managed companies, such as Unilever, Citicorp, Hewlett Packard, AT&T and others use this basic framework to make sure their HR practices are fully and exactly aligned to create the organisational capabilities required to execute strategy in the most powerful way possible.
Identify the organisational unit for which a human resource strategy is being developed. This would be your SBU or business division.
Identify and prioritise the externally driven forces and trends in your business environment that are influencing your business unit
In the context of the externally driven forces determined in step 2, determine key sources of competitive advantage. Identify 3 to 5 measures of success for each source of competitive advantage
Identify the cultural and technical capabilities that you need to have to win in the market place. What mindset and behaviours do we need to have more of in the future than we have had in the past in order to achieve our numbers to a greater extent in the future than we have in the past?
Identify behavioural examples for each category of organisation capabilities
Do a gap analysis
Identify which HR practices will have the greatest influence on creating your ideal human organisation. Ask yourself: What major HR practices will best create an organisation with the above cultural capabilities? Which practices will have the greatest influence? In what order and over what time frame should the initiatives be implemented?
Decide how the identified HR initiatives need to be created or changed in order to create your ideal human organisation. Which HR practices will receive attention over the next 12 to 18 months? What changes need to occur in each HR practice so that each practice will be more effective in creating these cultural capabilities in your people?
Identify action plans
What will be done? By...