Strategy Acrchitect A New Hat For The Hr Pro


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Aligning People Strategy with Business Strategy

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  • Aligning People Strategy With Business Strategy
  • Strategy Acrchitect A New Hat For The Hr Pro

    1. 1. Strategy Architect: A New Hat for the HR Pro
    2. 2. <ul><li>I think HR owns the intersection of work , money , power and politics . We are not just the traffic cops. We are the architects and leaders who build and manage the entire global employment infrastructure. …we know more about job creation than anyone in America. We spend more time with CEOs than anyone on TV. And we are awesome. </li></ul><ul><ul><ul><ul><ul><li>Laurie Ruettimann, Formerly Punk Rock HR Blog, now The Cynical Girl Blog </li></ul></ul></ul></ul></ul>
    3. 3. Where We’re Heading… <ul><li>Define Strategic Planning </li></ul><ul><li>Four critical questions which form the basis of the strategic planning process </li></ul><ul><li>Four process tools/methods used for strategic planning </li></ul><ul><li>Strategy Architect HR Competency Domain </li></ul><ul><li>A basic framework for aligning people strategy with business strategy </li></ul>
    4. 4. <ul><li>“No amount of sophistication is going to allay the fact that all your knowledge is about the past and all your decisions are about the future.” Ian E. Wilson </li></ul>
    5. 5. Strategic Planning <ul><li>Provides a roadmap for change and a vision for an enduring future </li></ul><ul><li>Determines where an organization is going </li></ul><ul><li>Involves long-term planning (3 to even 20 years) </li></ul><ul><li>Involves major decisions and long term commitments </li></ul>
    6. 6. Four Critical Questions <ul><li>Where are we now? (Assess the current situation.) </li></ul><ul><li>Where do we want to be? (Envision and articulate a desired future.) </li></ul><ul><li>How do we get there? (Formulate and implement a strategy and strategic objectives.) </li></ul><ul><li>How will we know if we are on track? (Establish a mechanism to evaluate progress.) </li></ul>
    7. 7. Four Tools <ul><li>SWOT Analysis </li></ul><ul><li>Balanced Scorecard </li></ul><ul><li>Appreciative Inquiry </li></ul><ul><li>Open Space Technology </li></ul><ul><li>Others include Mind Mapping, World Café & more </li></ul>
    8. 8. SWOT Analysis Environmental Scan External Factors Internal Factors Strengths Weaknesses Opportunities Threats
    9. 9. SWOT Matrix Threats Weaknesses Opportunities Strengths
    10. 10. Balanced Scorecard <ul><li>A metrics-based tool that translates the organization's strategy into four perspectives, with a balance between measures. </li></ul>
    11. 11. Diagram of the Balanced Scorecard Financial       Customer        Strategy        Business Processes         Learning & Growth   
    12. 12. Appreciative Inquiry <ul><li>A strength-based, interactive tool that engages people in a structured process </li></ul><ul><li>Traditional OD approach – find out what’s wrong and fix it </li></ul><ul><ul><li>“ Medical model” – The organization is a sick, passive patient to be “cured” </li></ul></ul><ul><li>AI approach – find out what’s right, and grow it </li></ul><ul><ul><li>The organization is a strong, active participant in creating opportunities </li></ul></ul>
    13. 13. Four D Cycle 1. Discover 3. Design 2. Dream 4. Destiny
    14. 14. Open Space Technology <ul><li>A strength-based, interactive tool that engages people in an unstructured process </li></ul><ul><ul><li>Supports action planning at the event itself and beyond </li></ul></ul><ul><ul><li>Enables group members to design their own agenda </li></ul></ul><ul><ul><li>Ensures participants will work with others who share their interests </li></ul></ul><ul><ul><li>Enables participants to move from one discussion group to another, either learning or contributing </li></ul></ul>
    15. 15. Basic Principles in OST <ul><li>Whoever comes is the right people </li></ul><ul><li>Whatever happens is the only thing that could have happened </li></ul><ul><li>When it starts is the right time </li></ul><ul><li>When it’s over, it’s over </li></ul><ul><li>Law of Personal Initiative: If you feel you are neither contributing nor learning where you are, go somewhere else. </li></ul>
    16. 16. Strategy Architect <ul><li>HR Professionals must thoroughly master the strategic architecture of the organization in which they work. They need an in-depth appreciation of the organization’s “business portfolio” and what makes each business distinctive in customer’s eyes . </li></ul><ul><li>David Ulrich “HR Competencies” </li></ul>
    17. 17. The Intersection of People and Business <ul><li>An organization’s market value has two components: </li></ul><ul><li>Tangible assets </li></ul><ul><ul><li>Raw material and inventory, furniture, equipment, land, buildings, receivables, cash, other financial assets </li></ul></ul><ul><li>Intangible assets </li></ul><ul><ul><li>“ Know how”, corporate culture, ability to innovate </li></ul></ul><ul><ul><li>Client and customer relationships </li></ul></ul><ul><ul><li>Brand awareness & reputation, “good will” </li></ul></ul><ul><ul><li>Competencies, knowledge, skills and abilities of the employees </li></ul></ul>
    18. 18. Architecture of Intangible Assets David Ulrich “HR Competencies” Keeping Promises Building Trust A Compelling Strategy Clarity & Unity Align Competencies Execution Organizational Capabilities Distinctiveness/Differentiation
    19. 19. Differentiation <ul><li>HR Professionals … need an in-depth appreciation of the organization’s “business portfolio” and what makes each business distinctive in customer’s eyes . </li></ul><ul><li>The Brand Promise </li></ul>
    20. 20. Aligning People Strategy & Business Strategy Implementing an organization’s business strategy requires people who consistently demonstrate the knowledge, skills, abilities and behaviors required to keep the brand promise and execute the organizational capabilities. Brand Promise People Strategy How is our organization positioned in the marketplace? How are we distinctive/ differentiated? Who are our core customers and our competitors? What are the strategic drivers of organizational performance that will create our target results? What are the “A” positions that have critical impact? What Knowledge, Skills, Abilities, Traits must our people demonstrate to execute our organizational capabilities, deliver our brand promise, fit our culture? How do we get “the Right People on the Right Seats on the bus?” Attract, Recruit, On-Board, Recognize, Develop, Reward and Retain Organizational Capabilities People Competencies
    21. 21. Have you been to one of these restaurants?
    22. 22. The Brand Promise <ul><li>Dick's Last Resort servers are obnoxious. Patrons of Dick's will be insulted & placed in uncomfortable situations. Adult bibs and large, fun, hand-made, paper hats are given to diners to wear during their stay. There are no napkins on the tables. Napkins are generally thrown directly at the customers by the serving staff. (Warning – Dick’s is not for the easily offended) </li></ul>
    23. 23. Organizational Capabilities <ul><li>Clarify what the organization must be able to make happen to meet the customer expectations created by the brand promise </li></ul><ul><li>Start with the “A positions” – those that have direct impact on the organization’s ability to achieve those things </li></ul>
    24. 24. Competencies <ul><li>Competencies are characteristics that individuals have and use in appropriate, consistent ways in order to achieve desired performance. </li></ul><ul><ul><ul><li>William Rothwell, “Competency-Based Human Resource Management” </li></ul></ul></ul><ul><li>They include knowledge, skills, abilities and traits. </li></ul><ul><li>Competencies have been called “the DNA of an organization.” </li></ul>
    25. 25. Competency-Based HR System <ul><li>Competencies integrated into HR Programs & Processes </li></ul><ul><ul><li>HR Planning (Workforce and Succession) </li></ul></ul><ul><ul><li>Recruitment </li></ul></ul><ul><ul><li>Training & Development </li></ul></ul><ul><ul><li>Performance Management & Appraisal </li></ul></ul><ul><ul><li>Retention & Engagement </li></ul></ul><ul><ul><li>Rewards & Recognition </li></ul></ul>
    26. 26. People Strategy <ul><li>Get the Right Number of the Right People with the Right Competencies in the Right Seats on the bus at the Right Times. </li></ul>
    27. 27. Reading List <ul><li>HR Competencies - Mastery at the Intersection of People and Business , David Ulrich, et al. </li></ul><ul><li>Appreciative Inquiry - A Positive Revolution in Change , David Cooperrider & Diana Whitney </li></ul><ul><li>Open Space Technology – A User’s Guide , Harrison Owen </li></ul><ul><li>Competency-Based Human Resource Management , David Dubois and William Rothwell </li></ul><ul><li>Building Robust Competencies: Linking Human Resource Systems to Organizational Strategies , Paul Green </li></ul><ul><li>The Workforce Scorecard – Managing Human Capital to Execute Strategy , Mark Huselid, Brian Becker, Richard Beatty </li></ul>