Following on from Part 12 perhaps it would be a good idea to start identifying the elements of a real HR strategy.
Top of the list is that HR strategy has to be owned by the Chief Executive. In GE, Jack Welch came up with their performance management strategy based on his concept of the ‘vitality curve’. It was his idea to get rid of the bottom 10% of managers every year. This was not something dreamed up by his HR team. It was also so radical that only having the weight of the CEO behind it would ensure that it happened. So if you think you have an HR strategy would the CEO be able to explain what it was and why they should drive it?
Another key element in HR strategy is the use of business measures to drive individual and organisational behaviours. ‘What gets measured gets done’ and if you want to achieve your strategic goals what better way than to make clear, direct and causal connections between the business measures you set (i.e. costs, profits, customer service) and the behaviours you need? An absence of clear measurement is a clear signal of an absence of HR strategy.
Probably, the third most important element is a focus on value. Value is not like other measures. Value takes everything into account. So just reducing operating costs would not qualify as a value measure. The value measure would take into account other factors such as quality assurance and customer satisfaction. If cost reductions mean ‘cutting corners’ or keeping customers waiting then you are just as likely to de subtracting value as adding it. HR strategists must understand the concept and practical application of added value measures.
As you can see, these are all tough challenges and this is only the start of what is required for an effective HR strategy to be in place. No wonder real HR strategy is so rare as to be almost non-existent.
So how does your ‘strategy’ stack up against these criteria?
New HR Charter series
You can also read all the debates around the New HR Charter and add your own comments by clicking on the links below.
The New HR Charter – Introduction
The New HR Charter Part 1 – Does HR have a reputation problem?
The New HR Charter Part 2 – What does best practice mean in HR?
The New HR Charter: Part 3 – Do competencies and 360 work?
The New HR Charter: Part 4 – The opposite of best practice?
The New HR Charter: Part 5 – HR Causality – which way does the arrow point?
The New HR Charter: Part 6 – Employer of choice?
The New HR Charter: Part 7 – HR professionals: GP’s, consultants, homeopaths or quacks
The New HR Charter: Part 8 – Politically correct yes – but is HR more effective?
The New HR Charter: Part 9 – Unions have no part to play
The New HR Charter: Part 10 – Where does HR go after outsourcing?
The New HR Charter: Part 11a – Auditing HR
