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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
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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
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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
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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
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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
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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
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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
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FutureState
4to7keymetricscharacterizingyour
targetstate
9
ReserveYourSpot
DownloadNow
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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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