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5Stepsto

Buildingan

HRStrategy

HRStrategyCreationMap

HRStrategyCreationMap

OrganizationalStrategy

Organizational

Goal#1

GapAssessment

Source:Gartner

Organizational

Goal#2

Organizational

Goal#3

FutureHRFunctionand

FutureTalentNeeds

FutureHRFunctionand

FutureTalentNeeds

FutureHRFunctionand

FutureTalentNeeds

CurrentCapabilitiesof

HRFunctionandTalent

GapAssessment

GapAssessment

HRGoalandCriteriafor

Success

HRGoalandCriteriafor

Success

HRGoalandCriteriafor

Success

HRStrategy

Only32%ofHRleadersstatethattheirHRstrategicplanningprocessisfullyintegratedwiththebusiness'planningprocess.Theplanningprocessshouldincludethefollowingfivesteps:

1Understandyourorganization'sstrategyandgoals. 2Identifycapabilitiesandskillsforthefuture.

3Evaluatecurrentcapabilitiesandskills.

4DevelopHRgoalsandcriteriaforsuccess.

5CommunicateyourHRstrategy.

5StepstoBuildinganHRStrategy

Gartnerfor

HR

FollowUsonLinkedIn

BecomeaClient

2

1

Source:Gartner

UnderstandOrganization’sStrategyandGoals

RelationshipBetweenBusinessandHRStrategy

ThefirststeptobuildinganHRstrategyistounderstand

yourorganization’smission,strategyandbusinessgoals.

AlignmentbetweenHRstrategyandtheorganization’s

mission,strategyandbusinessgoalsnotonlyensuresthat

theHRfunctiondrivestodesiredbusinessresultsbutalso

providesaclearbusinesscaseforHRinitiativesdownthe

road.HRleadersshouldworkwithseniorbusinessleaders

toverifywhatbusinessprioritiesmeanfortheHRfunction.

TipstoalignHRstrategywithbusinesspriorities:

•RoutinelymeetwiththeCEOone-on-oneineitheraformalorinformalsettingtodiscusstheirprioritiesandcurrentstrategy.

•PartnerwiththeCFObyroutinelyreviewingfinancialupdatesandprofit-and-lossstatements,participatinginregularbusinessreviews,anddiscussingfinancialprioritiesandinitiatives.

•Reviewquarterlymarketanalysisreportsandroutinelydiscussmarketresearchfindingsandtheirimpactonbusinessprioritieswiththeorganization’sfunctionalleaders.

3

5StepstoBuildinganHRStrategy

Gartnerfor

HR

FollowUsonLinkedIn

BecomeaClient

2

Source:Gartner

IdentifyCapabilitiesandSkillsforFuture

ExamplesofWorkforceCapabilitiesNeededtoExecuteBusinessNeeds

HRleadersshouldmeetwithleadersofeachbusinessunit

orfunctiontounderstandtheimplicationsforeachofthe

organization’sgoalsontheirfunction’sworkforce.Atthis

pointinyourstrategycreationprocess,youshouldtalkto

theheadsofeachfunctiontounderstandhowthestrategy

willimpacttheirindividualfunctionsandwhattheywill

needfromHRinthefuture.

Samplequestions:

•Fromatalentperspective,whatmustbetruefortheorganizationtoachieveitsobjectives?

•What,ifputinplace,wouldsignificantlyaccelerateachievementofgoalsorenhancetheorganization’sabilitytoexecuteitsstrategy?

•Consideringdifferenttalentrisks(e.g.,competitors),whatisthedegreeofimpactandlikelihoodofriskforeachtalentrisk?

•Whattalentissueswouldbothleadersandemployeesagreemustbeaddressedfortheorganizationtosucceed?

5StepstoBuildinganHRStrategy

Gartnerfor

HR

FollowUsonLinkedIn

BecomeaClient

4

3

OrganizationalGoal

DoWeHavethe

SkillsNeeded

toAccomplish?(Y/N)

DoWeHave

theResourceCapacityNeededtoAccomplish?(Y/N)

IfNo,WhatSkillsand/orResources

AreNeeded?

BudgetImplications

BusinessCaseRequired?

1.ExpandmarketintoAsia

No

No

•Hiringand/orrelocationof

200FTEtostaffofficesinAsia

•Multilingualemployees

•Compensationandbenefitsfornewhires

•Relocationpackagesandincentivesforexpats

No

2.

3.

4.

Source:Gartner

EvaluateCurrentCapabilitiesandSkills

Conductinganevaluationofthecurrentcapabilitiesand

skillsoftheorganizationallowsHRleaderstounderstand

thetalentimplicationsoftheorganizationalstrategyand

identifygapsbetweenthecurrentstateandfutureneeds

oftheorganization.HRleadersshouldenlistexecutives

fromfunctionsacrosstheorganizationaswellastheHR

leadershipteamtodiscussthecurrentstateofskillsand

capabilities.Dependingontheorganizationalstrategy,

theexistingworkforcemaynotbepreparedtosupportthe

futureneedsofthebusiness.ThisstepenablesHRleaders

toidentifypotentialtalentobjectivesfortheHRstrategy.

5StepstoBuildinganHRStrategy

Gartnerfor

HR

FollowUsonLinkedIn

BecomeaClient

5

1.DefineHRstrategicgoals

basedonbusinessgoals.

Supportmarketexpansionvia

acquisition.

4

DevelopHRGoalsandCriteriaforSuccess

Developgoalsandestablishthecriteriaformeasuringsuccessfulstrategyexecution.Whenthinkingaboutgoals,considerwhatdefineslong-termsuccessforyourHRfunctionandhowyouwouldprioritizethesegoals(basedonwhatwillbemosthelpfulinsupportingtheorganization’sstrategy).

Havingdevelopedyourgoals,identifythebestindicators(4to7keyperformancemeasures)thatdescribethelevelofperformanceoftheHRfunctioncurrentlyandusethesesameindicatorstomeasureperformanceinthefuture.Youshouldmakesurethatthesemeasuresarespecific,quantifiable

andclearlytiedtothedesiredperformance.

2.IdentifypotentialtalentobjectiveofHRstrategicgoals.

Acquirenewstaff.

Relocatecurrentstaff.

3.BrainstormHRactionstepsrequiredtoachievetalentobjectives.

Recruitlocally.

Absorbtalentfromacquiredcompanies.

Selectandprepareemployeesforchange.

Developrelocationpackages.

4.Determinesubfunction

involvement.

Talentacquisition

Compensationandbenefits

Talentacquisition

Learninganddevelopment

Compensationandbenefits

Source:Gartner

5StepstoBuildinganHRStrategy

Gartnerfor

HR

FollowUsonLinkedIn

BecomeaClient

6

5

Stakeholders/Audience

C-SuiteandExecutive

Committee

DirectReportstoHeadofHR

CommunicateYourHRStrategy

CraftaclearandconcisestatementthatcapturesthecoreofthestrategyandsummarizesthekeyobjectivesonwhichtheHRfunctionwillfocusover

thenextyear.Tailorthecommunicationtoeachstakeholdergrouptoprovideemployeeswithdirectionfortheirdecisionmaking.

CommunicationTips

•Providehigh-leveloverviewoftheHRstrategyanditsalignmenttothecorporatestrategy.

•Identifyanymajorchangesthatmayresultfromstrategy(suchasrestructuringortechnologyimplementationrequiringcapitalexpenditure).

•Conductone-on-onediscussionwitheachbusinessunithead.

BusinessUnitLeaders

•Customizethepresentationtoindicatebenefitsofthestrategyfortherelevantbusinessunit.

•Findhigh-impactregionalorgloballeaderswhocanbechampionstohelpbuildsupportforthelocalHRstrategicplan.

•Identifypeoplelikelytoresistchangeandtargetthemproactively.

•Segregatetheteamintosmallergroupsforcommunicatingstrategyplans.

•Personalizepresentationsforeachgrouptotellthemexactlywhattheymustdotosupporttheimplementationofobjectives.

•Describehowthestrategyrelatestothebusinessplanandorganizationaldirection.

•Explainhowthestrategywillaffecttheday-to-dayworkofemployeestominimizeuncertainty.

•Assessemployee-relatedfactorsthatmayimpactstrategyexecution.

HRManagersandStaff

Source:Gartner

Gartnerfor

HR

FollowUsonLinkedIn

BecomeaClient

7

5StepstoBuildinganHRStrategy

Bonus:UseapowerfulvisualtocommunicateyourHRfunction'sstrategicplan.

StrategicPlanforHumanResourcesLeaders,20XX-20XX

VisionStatement

Statewheretheorganizationwantstogo,whatyouwanttoaccomplish.

Example:Manageinvestmentsinpeopleandtechnologywhilecultivatingapositivecultureandemployeeexperience.

CurrentState

Plan

4to7keymetricscharacterizingyourcurrentstate

Do

•Accuratelymeasuretheorganization’sbaselineandprogresstowardtargetstate

•Captureriskstoachievingmission-criticalbusinesspriorities

Don’t

•Createoverlydetailedmetricsrelatedtoday-to-dayperformance

Example:Retentionrateforcriticaltalent—60%

Example:Successorcoverageforcriticalpositions—60%

4to7initiatives

requiredto

achievethe

targetendstate

Example:Embednewhybridworkmodeltodriveproductivity.

Example:Launchnewemploymentvaluepropositiontoattractnewdigitalskillsets.

Do

•Reconcileconflictingviews

•Buildstrongbuy-in

•Focusresourcesandattention

Don’t

•Pushaheadwithoutconsensusandbuy-in

4to7assumptions

thatmustbetrue

fortheplanto

succeed

Example:Digitalskillsetsmayonlybeavailableinlabormarketsoutsideourcorelocations.

Example:Budgetsforadditionalrewardpackageswillremainconstrained.

Do

•Communicateexplicitly

•Specifyquantifiablethresholds

•Allowforreal-timecoursecorrections

Don’t

•Createconfusionordisagreementaroundbasisofstrategy

•Omitrisksthatmustbemitigated

Thisisanexample.Usethefillabletemplateonpage9tocustomizeforyourneeds.

StatementofStrategy

Developaconcisestatementtosummarizetheessenceoftheplan,thetargetstateandrequiredinitiatives.

Example:Implementaformaldevelopmentprogramtobuildemployees’digitaldexterity,redeploystrategicnoncriticaltalentandidentifycurrentemployees’skillsintheworkforce.

FutureState

4to7keymetricscharacterizingyourtargetstate

Do

•Describetheorganization’sdesiredendstate

•Setgoalstodeterminewhentheendstatewillbereached

Don’t

•Targetscenariostoodistantfromthecurrentstate

Example:Retentionrateforcriticaltalent—85%within6months

Example:Successorcoverageforcriticalpositions—95%byendof20XX

Source:Gartner

5StepstoBuildinganHRStrategy

Gartnerfor

HR

FollowUsonLinkedIn

BecomeaClient

8

Typeinthefieldsbelowtocompletethe

interactiveform.

StatementofStrategy

Template:StrategicPlanonaPage

VisionStatement

CurrentState

4to7keymetricscharacterizingyourcurrentstate

Plan

4to7initiativesrequiredtoachievethetargetendstate

4to7assumptionsthatmustbetruefortheplantosucceed

Source:Gartner

5StepstoBuildinganHRStrategy

Gartnerfor

HR

FollowUsonLinkedIn

BecomeaClient

FutureState

4to7keymetricscharacterizingyour

targetstate

9

ReserveYourSpot

DownloadNow

WatchNow

LearnMore

Actionable,objectiveinsight

Exploretheseadditionalcomplimentaryresourcesandtools

onHRStrategyforHumanResourcesleaders:

Toolkit

HRTransformationToolkit

Explorethisgo-toresourcetotransform

theHRfunctiontodelivermoreimpact.

Webinar

The7KeyTrendsThatWillImpact

YourStrategicPlanning

Driveconfidenceindecisionmaking

whileexploringboldnewopportunities.

Tool

HYPERLINK"/en/human-resources/research/hr-

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