This document discusses how to better align HR with business strategy. It outlines signs of poor alignment like short-term thinking and lack of innovation. To improve, HR must understand the business strategy, value proposition, and how employee work supports strategic goals. An engaged workforce is key. The document proposes a 5-step process for HR to integrate with business: determine goals, scan internal/external factors, identify gaps, set priorities, and monitor progress. The goal is for HR to become a strategic partner by focusing on issues that impact business objectives and core values.

1. ALIGNING HR WITH BUSINESS
Animation of a mis-aligned motor

2. SYMPTOMS OF POOR ALIGNMENT
Short term focus on results
High Turnover & Low morale
Lack of Innovation
Passive –aggressive behavior
Inability to articulate strategy
Reduced Accountability
Sub-optimal teamwork
Little upward information
flow
Inappropriate or
misguided initiative

4. 07 DEADLY SIGNS OF POOR ALIGNMENT
1. Expectations not met
2. Job Mismatch
3. Feeling of devalued, Lack of Recognition
4. Insufficient growth Prospects
5. Too Little coaching & Feedback
6. Lack of trust & confidence in senior leaders
7. Stress & Overwork

5. WHAT ARE WE LOOKING FOR?
The Key Questions are:-
1. What is our Business strategy?
2. What do you do/ What is our business?
3. How does what you do support the
strategy?

6. EMPLOYEE ENGAGEMENT
It is the outcome of one’s personal:
1. Satisfaction
2. Commitment
3. Pride
4. Loyalty
5. Sense of Purpose
6. Advocacy
7. Initiative
8. Persistence
A pre-requisite to correct alignment

7. IS IT NECESSARY FOR HR EXECUTIVES TO
UNDERSTAND COMPANY’S BUSINESS?
Project Management
Balance Sheet
Revenue & Profit Projection
Risk Assessment
Supply chain Management
Company’s Value propositio

8. HUMAN RESOURCE
Evolution of HR, Pre 1970’s

9. NEW ERA’S EXPECTATION
Shareholder’s Expectation
Employee Retention
Reputation Management
Customer’s Loyalty
Shareholder’s Return

10. WHAT IS EXPECTED FROM HR?
Staffing
Development
Organization Structure
Human Resource
Management
Legal Compliance
PMS

12. BUSINESS KNOWLEDGE
Value Chain Knowledge
Value Proposition
Knowledge
Labor Knowledge

13.  Knowledge Requirements
 Staying focused on issues that
matter to the business
 Delivering capabilities that
make a real difference
BECOMING A STRATEGIC BUSINESS PARTNER

14. STAYING FOCUSED ON BUSINESS ISSUES
Focus on Business Objectives
• Structure activities around key business objectives
Focus on the Environment
• Scenario planning on workforce issues to anticipate changes in the
environment.
Focus on Core Values
• Ensure that core values are embedded in key HR
elements, e.g. hiring, job requirements, rewards

15. INTEGRATED HR AND BUSINESS 5-STEP PROCESS
Determine your business goals.
Scan the environment.
Conduct a gap analysis.
Set HR priorities to help achieve business
goals.
Measure, monitor and report on progress.
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 5:
Performance
Step 4:
Priorities

16. DETERMINE YOUR BUSINESS GOALS
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 5:
Performance
Step 4:
Priorities
 What are your organization's ongoing
HR and business priorities?
 What emerging directions and
changes will have an impact on HR
issues?
 Have all necessary strategic
partnerships been established to
facilitate facilitation of HR strategy?

17. EMPLOYMENT INFORMATION TO BE ANALYZED
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 5:
Performance
Step 4:
Priorities
Demographics and employment
characteristics
 Age
 Employment type
Training/learning data
Performance management
Internal workforce trends (e.g. vacancy
rates, turnover rates, internal staff
mobility, promotions, secondments

18. INTERNAL SCAN
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 5:
Performance
Step 4:
Priorities
Identify factors internal to the organization that may affect HR
capacity to meet organizational goals.
Have you considered…?
 Labor management relations
 Anticipated changes to funding levels
 Changes in leadership & priorities
 Organizational re-structuring
 Corporate culture change
 Client satisfaction
 Capacity and quality of information systems
 Training needs

19. CONDUCT A GAP ANALYSIS
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 5:
Performance
Step 4:
Priorities
What are the organization’s current and future HR
needs?
 Do you foresee a skills shortage?
 Will changes in program delivery require the
acquisition of new skills?
 Do you have enough qualified middle
managers?
 Conduct a risk assessment on elements of the
scan critical to your organization’s success.

20. SET HR PRIORITIES
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 5:
Performance
Step 4:
Priorities
What are the major HR priorities; and What strategies
will achieve the desired outcomes? Work plans may
include strategies on:
 Recruitment/Staffing/Retention
 Organizational Design
 Change Management
 Leadership Development
 Performance Management
 Competency/Skills Development
 Succession and Contingency Planning
 Compensation
 Labor Management Relations
 Values and Ethics

21. MEASURE, MONITOR AND REPORT ON PROGRESS
Step 1:
Perspective
Step 2:
Scan
Step 3:
Gap Analysis
Step 5:
Performance
Step 4:
Priorities
Develop clear and measurable HR-
related goals.
HR performance measures should align
with indicators in the business.
Put systems in place to track
performance indicators and analyze cost
benefit.
Performance indicators should inform
your priority setting for the next fiscal
year.

22. THANK YOU