Once you have assessed your Organizational Culture and understand where you stand, you can move on to HR Strategy in support of that strategy.
The journey toward assessing and implementing your HR strategy may follow the same below five stages.
Minimal overarching strategies direct the HR team’s efforts. The HR team is largely reactive to the business stakeholders with respect to independent processes (talent acquisition, training, succession, compliance, compensation, etc.) The scope of HR’s roles and structure hold the function back from understanding the business and the employees. Several HR systems may still be manual. The team is focused on the day to day activities without understanding their impact on the organization.
Strategies regarding critical HR functions (talent acquisition, management development and performance management) are project managed and process-driven, but they are not integrated. There may also be differing degrees of maturity. All functions within HR begin to engage more proactively with the business to ensure alignment, but efforts are not consistent, and change tends to happen slowly. There are no launch plans and programs introduced, while valuable, may seem disjointed.
Key HR processes start to become integrated as the organization recognizes the need for greater adaptability. Better alignment between the HR strategies and the business strategies is starting to take place. The cascading of organizational goals as a way to guide individual and team objectives and development begins to become pervasive. Employees start to see the alignment between HR programs from various functions.
HR Programs such as talent acquisition, management development, succession, engagement and incentives are connected to one another in order to heighten the output of the organization. The business strategies are routinely translated into HR strategies, so the HR team remains in-step with the company. There is a path that HR is capable of walking the organization down. An understanding of how each program introduced flows into and builds upon the one before.
Sophisticated and integrated near and long-term HR strategies exist, usually in the 3-year range. Strategic objectives, which are typically cross-organizational, require HR leaders to collaborate cross functionally, creating shared goals and actions. Collectively these behaviors drive successful business outcomes. The strategy is continually reviewed to ensure it is on track with the business and averting unnecessary risk. When necessary, the strategy is rapidly altered based on data-driven inputs to stay on course. Automation and data based decision making are key at this advanced stage.
Not every organization will achieve the optimized state, but it is, nevertheless, a worthy goal. HR gains their seat at the table by being able to positively impact the business and align their processes to business outcomes.