Aligning HR to Business Strategy
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Aligning HR to Business Strategy

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Learn how human resources can become an important part of your business strategy

Learn how human resources can become an important part of your business strategy

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Aligning HR to Business Strategy Presentation Transcript

  • 1. Aligning Human Resources University of Budapest MBA Visiting Professor Program Gary Wheeler, SPHR, GPHR, CCP, CBP
  • 2. Objective• How to implement an HR strategy that is aligned to the overall business strategy• HR Competencies• HR best practices• Case study of HR as a strategic partner Gary Wheeler, The Virtual HR Director, LLC
  • 3. Business Background• Restaurant Manager & Area Manager  Shoney’s Big Boy Enterprises  Pizza Hut, Inc.• United Parcel Service  Industrial Engineering, Operations and Human Resources  District Human Resources Manager:  Central Tex - San Antonio, Texas  North Ohio - Cleveland, Ohio  West Long Island - Brooklyn, Queens, Bronx, Westchester, NY Gary Wheeler, The Virtual HR Director, LLC
  • 4. Education• University of Maryland University College – B.S. Human Resources – Master’s Business Administration (MBA) Gary Wheeler, The Virtual HR Director, LLC
  • 5. Agenda• Evolution of HR• Why HR?• HR Competency Model• Developing an HR Strategy• Sysco Foods Case Study (video)• Best Practices• Marcus Buckingham (video) Gary Wheeler, The Virtual HR Director, LLC
  • 6. Opportunity• Ask questions• Clarify any myths• Gain a better understanding of U.S. corporations• Share some of your thoughts and ideas Gary Wheeler, The Virtual HR Director, LLC
  • 7. Tell Me About You• First Name• Your Company – Local – Regional – Global• Does your company do business in the U.S.• Have you ever traveled to the U.S. Gary Wheeler, The Virtual HR Director, LLC
  • 8. A Few of Questions• Do you have an HR department?• What does HR do?• Are you in HR?• Do you want to be in HR?• Certificate? Gary Wheeler, The Virtual HR Director, LLC
  • 9. Curious• How many of you would like to get rid of HR? Gary Wheeler, The Virtual HR Director, LLC
  • 10. Interview Questions Quiz• What country were you born in?• Are you married?• How many kids do you have?• Do you have a car?• How old are you?• What year did you graduate from high school?• Do you have a handicap? Gary Wheeler, The Virtual HR Director, LLC
  • 11. Should HR ExecutivesUnderstand your company’s?• Project management• The balance sheet• The income statement• Financial ratios• Revenue and profit projections• Risk assessment• The company’s value proposition• Supply chain management Gary Wheeler, The Virtual HR Director, LLC
  • 12. Historically HR is about People Gary Wheeler, The Virtual HR Director, LLC
  • 13. Evolution of HR• Pre 1970’s – Industrial Relations • Workers • Health and Safety – Accounting • Compensation • Benefits • Administration • Personnel Activities Gary Wheeler, The Virtual HR Director, LLC
  • 14. Evolution of HR cont.• Human Resources – Strategic Business Partner – Employment & Workforce Planning – Employee Relations – Compensation and Benefits – Learning and Development – Health and Safety – Administration – Employee Services Gary Wheeler, The Virtual HR Director, LLC
  • 15. Why HR?• Environmental factors• Business trends• Stakeholder expectations Gary Wheeler, The Virtual HR Director, LLC
  • 16. Changes in Business• Regulatory change has resulted in deregulation and tariff reductions• Technological advances• The Internet• Lower transportation costs Gary Wheeler, The Virtual HR Director, LLC
  • 17. Business Trends• Globalization• Competition• Note:• The next ten slides from author Dave Ulrich Gary Wheeler, The Virtual HR Director, LLC
  • 18. Shareholder Expectations• Employee retention• Reputation management• Customer loyalty• Shareholder returns
  • 19. Organizational Capabilities• Productivity costs• Speed• Service• Mergers, acquisitions, alliances• Innovation• Collaboration /synergy• Branding• Quality
  • 20. HR Competency Model
  • 21. Strategic Contribution• Culture management• Fast change• Strategic decision making• Market-driven connectivity
  • 22. Personal Credibility• Effective relationships• Achieving results• Personal communication
  • 23. HR Delivery• Staffing• Development• Organization structure• HR measurement• Legal compliance• Performance management
  • 24. Business Knowledge• Value chain knowledge• Value proposition knowledge• Labor knowledge
  • 25. HR Technology• HR technology
  • 26. HR Strategy An image of the desired future / inspirational & aspirational Vision A clear and compelling goal Mission Needs/wants to Goals achieve The plan by which the goals and mission will be achieved StrategiesTactical / operational plans Initiatives to implement the strategy Gary Wheeler, The Virtual HR © Copyright Human Resource Business Director, LLC Partner Consultant 2005
  • 27. Strategic Planning Process Analyze and Assess prioritize strategic External options and develop Environment a vision Evaluate Analyze DevelopInitiate Finalize Internal Strategic ImplementationProject Strategy Environment Options Plan Conduct Stakeholder Surveys Complete data Collection and analysis
  • 28. Developing an HR Strategy• Cross-functional team• Company vision statement – HR vision statement• Company mission – HR mission statement• Company strategic imperatives – HR strategic imperatives Gary Wheeler, The Virtual HR Director, LLC
  • 29. HR Metrics• Organization metrics – HR metrics aligned to improve organization goals – HR metrics are a part of line management metrics – Measure outcomes not just activities – Measures should equate to dollars Gary Wheeler, The Virtual HR Director, LLC
  • 30. Metric Examples• Retention or turnover• Employee benefit costs• Employee satisfaction survey• Injury rates or frequencies• Customer complaints• % Performance targets met• Return on training investment• Training costs Gary Wheeler, The Virtual HR Director, LLC
  • 31. Balanced Score Card• Financial – Retention or turnover – Employee benefit costs• People – Employee Satisfaction – Injury rates of frequency• Customer – Costumer complaints – % Targets Met• Internal Business Processes – Return on training investment – Training costs Gary Wheeler, The Virtual HR Director, LLC
  • 32. Initiatives, Programs, Projects•Strategic Imperative –Initiatives •Programs –Projects Gary Wheeler, The Virtual HR Director, LLC
  • 33. Example• Employee Performance and Satisfaction – Employee safety • New safety training • Safety awareness campaign • Health and Safety Committees • Safety Awareness Day – Employee communication • Online newsletter • Employee portal • Annual one-on-one communication Gary Wheeler, The Virtual HR Director, LLC
  • 34. Best Practices
  • 35. Key Themes• HR executives must first be business people, speaking the language of business and presenting a compelling business case.• The key responsibility of HR is to create the workforce that delivers on the business strategy.• HR executives must demonstrate courage, values, and leadership Gary Wheeler, The Virtual HR Director, LLC
  • 36. Good to Great• Great companies think first about “who”, and then about “what”• Once a company has created momentum, it needs to keep a balance between preserving its core values and changing its operation practices Jim Collins – Good to Great: Strategies for Your Business Gary Wheeler, The Virtual HR Director, LLC
  • 37. Corporate Governance• The key to an ethical company is a culture of values, integrity, and respect for the law. HR is at the core of creating this culture. Richard C. Breeden – Corporate Governance, Ethics and Corporate Culture Gary Wheeler, The Virtual HR Director, LLC
  • 38. Structures and Systems• The HR strategy is driven by the business strategy.• Sysco’s human capital model supports the company’s overall business strategy: 1. Customer Centric 2. Cost effective 3. Capability 4. Commitment 5. Compliance 6. Clear expectations 7. Common understanding Ken Carrig – Creating Competitive Advantage Through People – Strategy, Structure and Systems Gary Wheeler, The Virtual HR Director, LLC
  • 39. Structures and Systems cont.• Transformational HR departments focus on driving the business by building the organization.• Companies need to pay well, but find other ways to motivate employees after they are hired. Ken Carrig – Creating Competitive Advantage Through People – Strategy, Structure and Systems Gary Wheeler, The Virtual HR Director, LLC
  • 40. Coaching for Leadership• Participating in a feedback process is critical to realigning a person’s view with reality and helping develop as a leader. Marshall Goldsmith – Coaching for Leadership Gary Wheeler, The Virtual HR Director, LLC
  • 41. Contribution to Bottom Line• The ultimate competitive advantage is an empowered workforce aligned with and focused on executing the company’s strategy.• Achieving an organization’s strategic goals may involve redesigning work responsibilities and evaluation systems. Carleen Haas – Strategic HR’s Contribution to the Bottom Line Gary Wheeler, The Virtual HR Director, LLC
  • 42. Questions?
  • 43. Thank YouGary Wheeler, The Virtual HR Director, LLC gary@thevirtualhrdirector.com http://www.thevirtualhrdirector.com