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8/6/2019 hrandorganizationstrategyfinal10-08-101117053124-phpapp02

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HR and

Organization Strategy

Steven V. Manderscheid, Ed.D.


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For more on Indian HR industry, click here

Road Map

Introductions and course overview.

Changes in the professional world.

Strategic HR/strategy alignment and

competencies.

Leadership and management.

Strategy management and planning.

Strategic formation and implementation.
http://bit.ly/shrmindiahomehttp://bit.ly/shrmindiahome


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Strategic HR Defined

Strategic HR increases an organizations abilityto achieve its vision, mission and strategicobjectives. This is done by developing (not in avacuum) HR strategies (initiatives) that align

with the organizations direction.


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Strategic HR

What does it mean to be strategic from

an HR standpoint?


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How Can this Be Done?

One or more HR professionals (leaders) areinvolved in the organizations strategic planningefforts (best-case scenario).

HR will develop a strategic plan to support theoverarching plan.

HR is asked to lead strategic planning for theorganization.

HR is asked to find a professional to leadstrategic planning for the organization.

HR is an advocate for strategic planning so theorganization has a foundation to develop itsplans.


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Effective HR Leaders

Identify someone you believe is aneffective HR leader. Then identify someoneyou believe is a marginal HR leader.

Identify the attributes and characteristics ofeach. Why would you want to work or notwant to work with them in the future?

Work in small groups. Share yourexamples and create a list that showsmarginal leadership characteristics and

best leadership characteristics.


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HR Competencies

HR Professional

BusinessCompetence

Professional &TechnicalKnowledge

Integration

Competence

Ability to Manageand/or Lead Change

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2000).Human resource management: Gaining a competitiveadvantage (3rd ed.). New York, NY: Irwin McGraw-Hill


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HR Leaders

How do you differentiate between

HR leaders and HR managers?


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Managers andLeaders

Management isresponsible for

maintaining order;leadership is responsiblefor producing change or

movement.

Kotter, J. P. (1990). What leaders really do. Harvard Business Review, May-June, p. 1


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Managers and Leaders

In addition to Kotters definition, Bennis providesthe following for differentiating between managers

and leaders: Managers administer; leaders innovate.

Managers maintain; leaders develop.

Managers control; leaders inspire.

Managers have a short-term view; leaders, a

long-term view.

Managers ask how and when; leaders askwhat and why.

Managers accept the status quo; leaders

challenge it.Bennis, W. G. (1989). On becoming a leader. Reading, MA: Addison-Wesle


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Leadership Defined

Northouse defines leadership as a process.Leadership involves influence; leadership occurswithin a group context; leadership involves goalattainment. Based on the previous construct,Northouse further defines leadership as a processwhereby an individual influences a group of

individuals to achieve a common goal.

According to Bennis, leaders tend to share some, ifnot all, of the following three characteristics: theyestablish a guiding vision; they have passion; andthey act with integrity. Bennis further defines

leadership as a process by which an agent inducesa subordinate to behave in a desired manner.

Bennis, W. G. (1989). On becoming a leader. Reading, MA:Addison-Wesley.Northouse, P. G. (2001). Leadership: theory and practice.

Thousand Oaks, CA: Sage.


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Consensus

Consensus is a decision that all team memberscan support. It may be--but is not necessarily--thealternative most preferred by all members. Whentrue consensus is reached through a process inwhich everyone participates, the output is usuallya superior quality decision. Moreover, it is adecision having widespread acceptance andsupport for implementation. Most important, teammembers are motivated to see the decisionthrough to completion (Brilhart and Galanes,1989).

Brilhart, J. K., and Galanes, G. J. (1989). Effective Group Decisions.

Dubuque, IA: William C Brown Publishers. p. 201-203.


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Involvement

Involvementis a key leadership practice toensure you facilitate ownership and gain

commitment and involvement. It results in

better decisions before moving forward with

valuable organizational resources.

Know who to involve, when, how much,

how often, etc. Each situation is different

but before moving forward with a strategicinitiative, be sure you have laid a

foundation for success.


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What is Strategic Planning?

A strategic plan is a road map to lead anorganization from where it is now to whereit would like to be.

Strategy formation is a set of processes

involved in creating or determining theorganizations strategies.

Strategy implementation are the methodsby which strategies are operationalized orexecuted.

Griffin, R. W. (2002). Management(7th ed.). Boston:Houghton Mifflin Company.


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Strategic Planning

Clarify or develop a vision, mission andvalues.

Conduct a SWOT analysis.

Identify four to six key focus areas.

Develop strategic goals.

Create action plans.

Develop a follow-up process and

communication plan.


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Two Constructs to Consider

Operational Effectiveness Is your organizationperforming similar activities better than yourcompetitors?

Strategic Positioning What actions can your

organization take to distinguish itself fromcompetitors? What does your organization considerto be its competitive differentiators in themarketplace?

Note: It is important to have clarity on these concepts beforestarting the strategic formation process because they providea guide as the organization develops strategic initiatives.

Porter, M. (1996, NovemberDecember). What isstrategy? Harvard Business Review, 74(6), 6178.


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Active Inertia

Active inertia is an organizations tendency

to follow established behavioral patterns

even in response to dramaticenvironmental shifts. Because they are

stuck in the modes of thinking and working

that brought success in the past, leaders

perpetuate their tried-and-true activities.

Sull, D. (1999, July-August). Why goodcompanies go bad. Harvard Business Review,

77(4), 42-52.


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Strategic Plan and Vision

A strategic plan is a road map to lead anorganization from where it is now to whereit would like to be.

A vision is an engineers rendering of theachievement of that map.

HR should have a supporting vision andstrategic plan as well; there must be

alignment.


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Vision

A vision is a depiction of what you would likeyour organization and HR department to belike in the future.

A vision statementis a brief explanation (one

or two sentences) with some explicitcommentary about why the vision is desirable.

Vision statements should be more thanslogans. They are a distillation of yourorganizations values, dreams and priorities.


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Characteristics of an Effective Vision

Imaginable: Conveys a picture of what the future will looklike.

Desirable: Appeals to your long-term interests and theinterests of other stakeholders.

Feasible: Has realistic, attainable goals.

Focused: Is clear enough to help guide decision-making.

Flexible: Is general enough to allow for individual initiativeand alternative responses in light of changing conditions.

Comprehensible: Is easy to communicate; can be

successfully explained within five minutes.

Kotter, J. (1996). Leading Change. Boston, MA: Harvard

Business School Press.


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Mission

Effective mission statements include thefollowing elements:

The concept of your organization.

The nature of your business. The reason your organization exists.

The people you serve.

The principles and values under which youintend to operate.


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Sample Mission Statements

XYZ is committed to delivering exemplary,compassionate and professionally rewardinginternal medicine care to patients with complexmulti-system diseases.

XYZs HR department is committed to providingprofessional, progressive and strategic humanresource leadership to all stakeholders.

XYZs HR department provides the organizationwith people, policies, processes and practices thatbest support a flow of talent capable of meetingbusinesses needs.


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Values

Values are the essential and enduring

tenets of an organization--the guiding

principles that have a profound effect on

how everyone in the organization thinksand acts.


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Types of Values

Core values are thevalues applied in dailychoices. For example, a core value might be

honesty; you act on it when you consistently tell

the truth and are frank and open with people.

Inspirational values are the values you want

more of in your life. A good example might be to

achieve better work/life balance. If you are not

actively working on it, develop strategies abouthow to achieve it.


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Why Values?

Why is it important to identify andarticulate values?

Values create alignment and drive

behavior. They provide a framework to

help make decisions, prioritize actions

and interact with each other.

Articulating values is a representation of

the organization to the outside worldyour stakeholders.


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SWOT Analysis

A SWOT analysis is a strategic planning toolused to evaluate strengths, weaknesses,opportunities and threats. A SWOT analysisinforms the goal-setting process and providesa context for future strategic planning

discussions.

Strengths and weaknesses are internal toan organization.

Opportunities and threats originate fromoutside the organization.


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A Sample SWOT Analysis Matrix

StrengthsHigh-quality employees.Strong, committed HR staff.

Good reputation in theorganization.

Location (close to ourstakeholders).

Good rapport with otherdepartments.

Work well as a team.

Good technical competence andtools.

WeaknessesVagueness of role in our acquisitionstrategy.

Lack of data or measurements.

Poor communication.

HR partner bandwidth.

The volume of HR initiative on the table.

Compensation design and benefitprogram.

Opportunities

Stability in leadership.Expansion of services.

Referral centers.

Integrate talent managementsystems.

Secure new talent via our merger.

Further develop our self-servicemodel.

Threats

Budgetary constraints.Stagnation/complacency.

Turnover/leadership changes.

Rising health care costs.

Internal conflicts & overworkedemployees.

Marketplace uncertainty.

Positive Negative

In

t

erna

l

Ex

terna

l


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Key Focus Areas

Key focus areas are the areas in which theorganization will focus its attention in the next 1-3

years.

Leaders should assign ownership of each key focus

area and identify objectives and action plans. From

an HR perspective, key owners could be HRDmanagers, compensation specialists, HR regional

directors, etc.

Note: Ensure consensus on 4-6 key focus areas. This

will increase the likelihood of cross organizationalsupport.

Kusy, M., & McBain, R. (2000). Putting real value into strategicplanning: Moving beyond never-never land! Organization

Development Practitioner, 32(2), 22.


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Sample Key Focus Areas

Employees: XYZ Corporation will proactivelyattract and retain a committed and qualified

professional staff to meet our clients needs.

Programs: The HR department will define HR IT

systems and programs to streamline processesand better serve our stakeholders.


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SMARTS Goals

SSpecific:pecific:Is the statement clearand concise?

MMeasurableeasurable::Is the statementquantifiable?

AAttainablettainable::Is the statementrealistic?

RReasonableeasonable::Can it beaccomplished under currentconditions and with currentresources?

TTime S ecificime S ecific::Does have a


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Sample SMARTS Goals

By June 15, reduce the average human

resource service center response time by 15percent.Performance measure: Response time.

Develop and communicate an organization-wide total rewards and value proposition byMay 1.Performance measure: A plan with strategies, actionsteps and measures that starts in late May.

Conduct two formal manager feedbacksessions every three months and use thefeedback to develop a written report withrecommendations to improve theorganizations talent acquisition process.


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Template

Owner:

Team:

Key Focus Area:

Strategic Objective#1

Activities CompletionDate

Measurement

Strategic Objective#2


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Implementing Strategy

Ensure that leaders can communicate the planand manage performance.

Assign ownership of key focus areas and

goals.

Establish interim debrief sessions with ownersand measure the progress.

Acknowledge and make success visible.

Link strategic goals and values to the

performance systems.

Manderscheid, S., & Kusy, M. (2005). How to Design Strategy WithNo DustJust Results!

Organization Development Journal, 23(2), 62-70.
http://bit.ly/shrmindiahomehttp://bit.ly/shrmindiahomehttp://bit.ly/shrmindiahome


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Emergent v. Intended Strategies

An intendedordeliberate strategyis an intendedplan which is then realized.

An emergent strategyis a set of actions or behaviorthat is consistent over time; a realized pattern [that]was not expressly intended in the original planning

of strategy.

Most strategies involve a bit of both. A puredeliberate strategy requires that the outcome wasrealized totally as intended (unlikely). An emergentstrategy typically incorporates consistent actions that

will have some intentionality.

Mintzberg, H. (1994). The rise and fall of strategic planning. New

York: The Free Press.


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Thank You!


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