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Aligning HR to Business Strategy
The document outlines Gary Wheeler's presentation on aligning human resources with business strategy. The presentation covers: 1) How to implement an HR strategy aligned to the overall business strategy and discusses HR competencies and best practices. 2) A case study of Sysco Foods demonstrating HR's role as a strategic partner. 3) Key themes from best practices literature emphasizing HR executives must speak the business language and create the workforce to deliver the business strategy.
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Aligning HR to Business Strategy
- 1. Aligning Human Resources University of Budapest MBA Visiting Professor Program Gary Wheeler, SPHR, GPHR, CCP, CBP
- 2. Objective • How toimplement 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 • RestaurantManager & 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 ofMaryland University College – B.S. Human Resources – Master’s Business Administration (MBA) Gary Wheeler, The Virtual HR Director, LLC
- 5. Agenda • Evolution ofHR • 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 AboutYou • 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 ofQuestions • 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 manyof 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 Executives Understandyour 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 isabout 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 HRcont. • 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? • Environmentalfactors • 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 • Employeeretention • Reputation management • Customer loyalty • Shareholder returns
- 19. Organizational Capabilities • Productivitycosts • Speed • Service • Mergers, acquisitions, alliances • Innovation • Collaboration /synergy • Branding • Quality
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- 21. Strategic Contribution • Culturemanagement • Fast change • Strategic decision making • Market-driven connectivity
- 22. Personal Credibility • Effectiverelationships • Achieving results • Personal communication
- 23. HR Delivery • Staffing •Development • Organization structure • HR measurement • Legal compliance • Performance management
- 24. Business Knowledge • Valuechain knowledge • Value proposition knowledge • Labor knowledge
- 25. HR Technology • HRtechnology
- 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 Strategies Tactical / 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 Develop Initiate Finalize Internal Strategic Implementation Project Strategy Environment Options Plan Conduct Stakeholder Surveys Complete data Collection and analysis
- 28. Developing an HRStrategy • 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 • Organizationmetrics – 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 • Retentionor 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 •StrategicImperative –Initiatives •Programs –Projects Gary Wheeler, The Virtual HR Director, LLC
- 33. Example • Employee Performanceand 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
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- 35. Key Themes • HRexecutives 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 • Thekey 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 Systemscont. • 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 BottomLine • 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
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- 43. Thank You Gary Wheeler,The Virtual HR Director, LLC gary@thevirtualhrdirector.com http://www.thevirtualhrdirector.com