The core element of the HR transformation

The establishment of a powerful HR strategy

Process for laying out an HR strategy and-Firs define what it means for HR to be strategic

Something is strategically meets one of five if it meets all of five criteria. First of all, to be strategic
something must be sustainable it can’t just be short-term, it has to be sustainable.

Second it has to add substantial value beyond that value which the competitors can add if you are only
adding value that’s less than the competition then it’s not very strategic.

Third it has to be comprehensive as a strategy something strategic that cover the whole organization not
just pieces of it.

Fourth something is strategic if it integrates the firm and makes the firm whole worth more than the
sum of the parts and finally something is strategic. If it can be translated into specific and powerful
actions.

The question is what is it that HR does that meets all of those criteria being integrated, compressive,
adding value beyond that of the competition that is sustainable and is actionable. High value-added
agenda for the HR profession is organization is the creation and sustaining of organization capabilities
including cultural capabilities.

HR Strategy

Step 1:

Identify the organizational unit for which a human resource strategy is being developed

To be clear on the organization unit for which going to develop HR strategy.

Does it going to develop the HR strategy for a business unit for a plant for a division or for the
corporation as the whole. That has to be clearly designed and specified. The danger is that if you don’t
get that right then you can be in all kinds of trouble as you go down the further steps in designing your
HR strategy.

Second

Identify the prioritized trends in your business environment

Clear and precise prioritized definition of what’s going on in your business environment.

What are the trends to the that we face today and where are those trends leading us to in the future
with the assumption that nothing we do inside matters unless it finally results in positive cash flow from
the outside.
Third
Determine key sources of competitive advantages
Translate those external requirements and expectations into what we do on the inside that is what is
the business strategy. What are the ways in which you choose to compete as a company

Fourth
Identify the key desired organizational and cultural capabilities

Define what are the organization capabilities we need to have where the organization capabilities and
what kind of cultural do we need to have to make those capabilities of reality. We need to not only be
able to specify the organizational capabilities and cultural capabilities but we need to translate them
into how people are going to behave.

Once organizational capabilities are required we then ask the question

How will people behave differently in the future than they do today if those capabilities were being
executed at an ideal level. So those organizational and cultural capabilities finally have to be expressed
in terms of what people do.

Fifth

Eliminate negative organizational and cultural capabilities

We not only need to define what the capabilities we need to have morale but we also need to define
what we need to have less of and that’s

Six

Develop major (HR) practice

Clear definition of which of our HR practices are currently being designed and delivered to make those
capabilities reality and which are not. Therefore, we can prioritizes identify and execute those HR
practices that will give us greatest impact on the capabilities we need to create and to help us to not
focus on those that may not have any impact on the capabilities that we need most desperately to
compete better.

Identify Action Plan

How do we then take this logic and translate it into a specific set of accountabilities and action plans
that can then be carried out over a reasonable period of time

Measure Results

How do we then make sure we have a measurement system in place to measure whether in fact the HR
strategy as it is executed is creating the value that we want it to have that is value as defined first by the
customers on the outside by the execution of the strategy on the inside by the creation and sustaining of
the organization capabilities and by the execution of HR practices as we then measure those measure a
change value added each of those levels. HR the strategy