Developing and executing an effective HR strategy September 2011

Developing and executing an effective Human Resources strategyby Toronto Training and HR September 2011

3-4 Introduction to Toronto Training and HR 5-6 Questions to ask7-8 Questions to answer9-11 Organizational succession 12-13 Achieving a fit14-16 The use of playscripts17-18 Putting a strategy in place19-21 High-value strategies22-28 Typical HR strategy-public sector29-36 Typical HR strategy-private sector37-40 Strategy execution41-42Implementing strategy43-44 Drill45-50 Case studies 51-52 Conclusion and questionsContentsPage 2

Introduction to Toronto Training and HRToronto Training and HRis a specialist training and human resources consultancy headed by Timothy Holden 10 years in banking10 years in training and human resourcesFreelance practitioner since 2006The core services provided by Toronto Training and HR are:Training course design

Training course delivery- Reducing costsSaving time

Improving employee engagement & morale

Services for job seekersPage 5Questions to ask

Questions to askSTRESS TESTWho is your primary customer?How do your core values prioritize shareholders, employees and customers?What critical performance variables are you tracking?What strategic boundaries have you set?How are you generating creative tension?How committed are your employees to helping each other?What strategic uncertainties keep you awake at night?

Questions to answerWhat is our capacity building plan?What is our succession plan strategy?What is our change management model to ensure our organization is able to stay fluid and dynamic?What is our process to ensure we are using the right measures to evaluate operational efficiency, knowledge management, transfer of learning and organizational capacity?What is our organizational learning strategy?

Organizational succession

Organizational succession 1 of 2DEFINING GLOBAL TO SPECIFIC SUCCESS BEHAVIOURSOrganizational development philosophyOperational managementDefine each critical position with competenciesDeconstruct the competencies into the behaviours and skills to help achieve the competencies definedFor each competency determine the key performance behavioursDetermine the standard for each key performance behaviour

Organizational succession 2 of 2ALIGNING SUCCESSION PLANNING WITH CAREER PLANNINGConduct an operational and human capital auditIdentify gapsCreate a recruiting planDevise a hiring planOn-boardingCareer development path

Achieving a fitFIT TYPESPerson-job fitPerson-group fitPerson-organization fit

The use of playscripts 1 of 2Corporate playscriptBusiness playscript

The use of playscripts 2 of 2DEVELOPING YOUR PLAYSCRIPTWrite your current corporate and business playscriptsRewrite your playscriptFuture-proof your playscript

Putting a strategy in place

Putting a strategy in placeState your intentTry again-this time in contextSet your measuresDefine the tasks implied by your intentDefine the boundaries

High-value strategies 1 of 2WHY STRATEGIES FAILThe highest value new ideas are the least understood and least acceptedGifted, creative and strategic thinkers often poorly communicate the new paradigmWhen the new strategy is articulated from on high, even if it is communicated clearly, it is often proclaimed as “doctrine” without any provision for feedback

High-value strategies 2 of 2ACHIEVING EFFECTIVE IMPLEMENTATIONClearly explain the reason why a new strategy is required, the rationale underlying the new strategy, and the perceived risks in its implementationEncourage questions and feedbackGo slow to go fastSeek to understand your strategic idea before trying to implement it

Typical HR strategy-public sector

Typical HR strategy-public sector 1 of 6 YEAR ONE KEY ELEMENTSCommunicationDiversityEmployee and Trade Union RelationsEmployee Development and MotivationHealth, Safety and WelfareOrganizational DevelopmentPerformance ManagementRecruitment and RetentionRemunerationWorkforce Data

Typical HR strategy-public sector 2 of 6 YEAR ONE AIMS AND KEY OUTCOME MEASURESCommunicationDiversityEmployee and Trade Union RelationsEmployee Development and MotivationHealth, Safety and WelfareOrganizational DevelopmentPerformance ManagementRecruitment and RetentionRemunerationWorkforce Data

Typical HR strategy-public sector 3 of 6 UNDERLYING CORE PRINCIPLESA proactive approach to learning and taking advantage of all opportunities to spread good practice across the HR function, the wider organization and local community. The utilization of website and intranet for communication both externally and internally in addition to paper based systems.

Typical HR strategy-public sector 4 of 6 UNDERLYING CORE PRINCIPLESA commitment to the highest possible standards of confidentiality, professional conduct and competency.A commitment to a ‘quality’ proactive approach and philosophy of ‘continuous improvement’ both individually and for the function.The promotion of employment practices that remove discrimination and support consistency of application across the organization.

Typical HR strategy-public sector 5 of 6 YEAR TWODeveloping leadershipDeveloping workforce skills and capacityOrganizational developmentResourcing: recruitment, retention and diversityPay and rewardsService and local priorities

Typical HR strategy-public sector 6 of 6 YEAR THREECommunication Employee developmentOrganizational developmentPerformance management

Typical HR strategy-private sector

Typical HR strategy-private sector 1 of 7 YEAR ONE KEY ELEMENTSCommunicationDiversityEmployee and Trade Union RelationsEmployee Development and MotivationHealth, Safety and Welfareorganizational DevelopmentPerformance ManagementRecruitment and RetentionRemunerationWorkforce Data

Typical HR strategy-private sector 2 of 7 BUSINESS IMPACT MEASURES-FOCUSING ON BUSINESS ACHIEVEMENTS INFLUENCED BY PEOPLE-RELATED INITIATIVESTools/approachesStrategic analysisBusiness-driven approachValue chain analysisStakeholder perceptions of impactGoodwill/intangible asset impact

Typical HR strategy-private sector 3 of 7 CAPABILITIES IMPACT MEASURES-FOCUSING ON ORGANIZATIONAL CAPABILITIESTools/approachesOrganization priorities and initiativesEnhancing people management and HR systemsCritical success factors

Typical HR strategy-private sector 4 of 7 CAPABILITIES IMPACT MEASURES-FOCUSING ON INITIATIVES THAT HAVE SHOWN TO DRIVE BUSINESS PERFORMANCE Tools/approachesResearch initiatives and surveys

Typical HR strategy-private sector 5 of 7 HR OPERATIONAL IMPACT MEASURES-FOCUSING ON OUTCOMES/RESULTS OF HRM ACTIVITIESTools/approachesEffectivenessCost/effectivenessSix Sigma measuresReturn on knowledgeHR dashboard

Typical HR strategy-private sector 6 of 7 HR OPERATIONAL IMPACT MEASURES-EVALUATING COST & QUALITY OF ACTIVITIES/SERVICES PERFORMED BY THE HR FUNCTION & VENDOR MGTTools/approachesCustomer-user satisfactionEfficiencyOverall costs of the HR function

Typical HR strategy-private sector 7 of 7 USING A BALANCED SCORECARDTools/approachesThe approach is simple and compellingThemes used as a prescriptive framework to guide thinking-strategic skills/competencies, leadership, culture and strategic awareness, strategic alignment and strategic integration/learningHR programs/functions, high performance practices and measures are defined for each category

Strategy execution 1 of 3WHAT PREVENTS SUCCESSFUL EXECUTION?DisengagementDisconnection

Strategy execution 2 of 3Leaders need to define and communicate a common mental model for the strategy, presenting it as a shared picture that means the same thing to everyone-this can be difficult for four reasons:Words are inadequate conveyors of meaningManagers have to receive and send strategic information at the same timeIndividual contributors must see the common mental model and have their managers translate it into what they’ll have to do (and do differently)People need to practice the new skills and behaviours necessary to execute strategy in way that is safe

Strategy execution 3 of 3POINTS TO BEAR IN MINDTo be engaged, people want to solve their strategic puzzlesThey must be linked in a process that spells out the roles of leaders, managers, and individual contributors in executing that strategy

Implementing strategyGet the big pictureUncover and collaborateElicit genuine buy-inBuild trust firstFocus on process

Developing and executing an effective HR strategy September 2011

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