The document discusses strategies for connecting an HR strategy to business goals and objectives. It explains that an HR strategy should align the goals of the HR department with the overall business goals. The HR strategy should seek to support the business goals either directly or indirectly. It also outlines six steps to develop an effective HR strategy, which includes understanding organizational objectives, evaluating current capabilities, and defining metrics and measures. Additionally, it provides examples of an HR strategy map and key performance indicators that can be used to measure the success of the HR strategy.

1. HR STRATEGY to Drive Your
Business Performance

2. What Is An HR Strategy? An HR strategy is a document, a
plan, or a vision that an HR or People Team puts together
to help guide their efforts over an extended period of
time. It is meant to align the goals of the HR department
with the goals of the business, in order to formulate a
plan and concrete set of measures to reach those goals.

3. How Connected Are HR and
Business Strategy?
They are incredibly connected.
The internal goals set out in an
HR strategy should seek to
support the overall business
goals. While this can be done
directly or indirectly, there needs
to be an understanding of how it
is happening and how it can help.
Without this, you risk your HR
strategy being too isolated from
the rest of the business, and
from upper management,
reducing visibility and long-term
efficacy.

4. 2 3
4 5 6
1. Understand
your
organization’s
objectives
1
Evaluate your
current
capabilities
Assess your
future HR
needs
Develop and
Implement
your strategy
Define Metrics
and Measures
Evaluate
your
process
6 Steps to Craft Your HR Strategy

5. Three Tests of Best HR Strategy
The Performance
Test
The Competitive
Advantage Test
The Goodness of
Fit Test
The Best
Strategy

6. • A good HR strategy has to be well
matched to industry and competitive
conditions, market opportunities and
threats, and other aspects of the
enterprise's external environment.
• At the same time, it has to be tailored
to the company's resource strengths
and weaknesses, competencies, and
competitive capabilities.
Three Tests of Best HR Strategy
The Goodness
of Fit Test

7. • A good HR strategy leads to
sustainable competitive
advantage.
• The bigger the competitive
edge that a strategy helps
build, the more powerful and
effective it is.
Three Tests of Best HR Strategy
The
Competitive
Advantage
Test

8. • A good HR strategy boosts company
performance.
• Two kinds of performance
improvements are the most telling of
a strategy's caliber: gains in
profitability and gains in the
company's competitive strength and
long-term market position.
Three Tests of Best HR Strategy
The
Performance
Test

9. 9
Sample of HR Strategy
Map and HR Metrics

10. Implement a Great Talent
Development Program
Develop Great Employee
Competencies
Implement HR Digital
Services
HR Strategy Map
Financial
Internal Customer
Business
Process
Increase Employee
Engagement &
Satisfaction
Learning &
Growth
Increase HR Employee
Satisfaction
Develop Great HR
Competencies
Increase Employee
Productivity
Achieve HR
Excellent Services
Manage Employee
Cost Optimally

11. HR Strategy Map needs to be translated into a
series of measurable performance indicators.
In other words, each strategic target listed in
previous slides must be transformed into a set
of KPI (or key performance indicators) and
backed with measurable targets.

12. No. Strategic Objectives Key Performance Indicators (KPI) Target Number
Financial Perspective
1. Increase Employee
Productivity
Net profit / Employees USD 5 million per
employee
2. Manage Employee Cost
Optimally
The Ratio of employee cost to total cost Maximum 10%
Internal Customer
Perspective
3. Increase Employee
Satisfaction
Employee satisfaction score Score 8 on a scale of 1 –
10 (the higher the
better)
4. Increase Satisfaction
for HR Department
Services
HR Department Service satisfaction score Score 8 on a scale of 1 –
10
HR Strategy Map and HR KPIs (HR Metrics)

13. HR Strategy Map and HR KPIs (HR Metrics)
No. Strategic Objectives Key Performance Indicators (KPI) Target Number
Business Process Perspective
5. Develop a Talent Development
Program
The percentage of the Talent Development
Program system and policy formulation that has
been completed.
100% completed in
June
6. Develop Employee Competencies Average Competency Score (Technical
Competence and Managerial Competence) of
Employees
Average Score of 8 (on
a scale of 1 – 10)
7. Implement the digitalization of HR
Services
The percentage of HR services digitalization
process that has been completed.
100% completed in
August
Learning Perspective
8. Develop Employee Competencies
in the HR Department
Average Employee Competency Score in the HR
Department
Average Score of 8 (on
a scale of 1 – 10)
9. Increase Employee Job Satisfaction
in the HR Department
Employee Job Satisfaction Score in the HR
Department
Score 8 (on a scale of 1
– 10)

14. Develop HR Action Plan to
Implement HR Strategy

15. Great HR
Strategy
PROGRESS
Clear
Goals
Great HR
Action
Plan
Focus on
Solution
Continual
Monitoring
Be
Resourceful
Continual
Improvement
1 8
7
2
6
3
5
4
Great HR Implementation Principles

16. Full version of these amazing PPT slides can be
downloaded at :
https://management-training-guru.com/hr-
premium-slides/
You can copy the above link and paste into your browser – to get the
full version of our slides