HRM STRATEGY HOW-TO-GUIDE

HRM STRATEGY HOW-TO-GUIDE

How to develop and

deploy your HRM strategy

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Using this

Guide

©HRM Toolshop, 2016, all rights reserved www.hrmtoolshop.com

HRM TOOLSHOP

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• This Guide is part of the HRM STRATEGY TOOLKIT. This toolkit helps you to build your own HRM Strategy.

• In the Category of HR STRATEGY & PLANNING, you can also find the related HR Toolkits for further deploying your HRM Strategy:

– HR Reporting Toolkit

– Project Management Toolkit

– Workforce Planning Toolkit (under construction)

– Succession Planning Toolkit (under construction)

• Go to www.hrmtoolshop.com for more HR Toolkits & Guides.


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• Is your organization in need of a long term

strategy for managing HR? Does your CEO

challenge you to come up with HR plans that

are aligned with the business plans? Do you

have a strong strategic HR plan in your head but

little time and no standard templates to turn this

plan into a formal HR Strategy Document?

• Having a clearly defined Strategic HR Plan

helps you to become a strategic HR Business

Partner, and will increase your credibility with

Senior Management.

• It will also help you to follow up on defined HR

actions and report on progress in a highly

professional way.

About this

Guide


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• The Theory : Introducing the Concept & Model

What is Strategic HRM?

• The Practice : A roadmap for creating your HRM

Strategy

How to develop your HRM Strategy?

• The Experience : Sharing experiences

How to be successful?

Inside this

Guide


What is strategic HRM?

The Theory : introducing concepts & models

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• Strategic Human Resources Management

(strategic HRM, or SHRM) may be regarded as

an approach to the management of Human

Resources that provides a strategic framework

to support long-term business goals and

outcomes.

• The approach is concerned with longer-term

people issues and macro-concerns about

structure, quality, culture, values, commitment

and matching resources to future needs.

(source: CIPD book Strategic HRM: the key to improved

business performance)

What is

Strategic

HRM?


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• Aligning HRM Strategy with the Business

Strategy A Model that

works


Company Vision &

Mission

Business Strategy

& Plans

HRM 5 Year

Strategy & Prios

HR Department

Annual

Strategic Plan

Analysis of

External

Environment

Analysis of

Internal

Environment

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• Business Strategy:

– The priorities and actions that a company decides

upon to match internal processes to meet external

challenges. The end goal is to increase shareholder

value and marketshare (through customers).

• Human Resources Management (HRM) Strategy:

– The part of the business plan that describes how a

company deals with critical people and organization

related challenges in order to realize the business

targets considering external risks and challenges.

• Human Resources Department Plan (HRP):

– This plan sets the activities for the HR department

and should derive from the HRM strategy ; it

ensures that resources are available (people,

financials, infrastructure) to realize the plan.

Some

Definitions


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• Strategy and Human Resource Management 3d Edition. by BOXALL and PURCELL, 2011

• Roadmap to Strategic HR. by Ralph Christensen, 2006

• Strategic HRM: the key to improved business performance. Developing practice. by ARMSTRONG and BARON, 2002

• Why Some Companies Make the Leap ... And Others Don’t. by Jim Collins, 2001

• Managing in a Time of Great Change. by Peter Drucker, 1998

Books &

articles


How to develop your HRM

strategy?

The Practice : A roadmap for creating your HRM

Strategy

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Roadmap Overview Steps for developing your HRM Strategy


A. Define

measures and

KPIs against

each strategic

action and

agree on

reporting

approach

B. Formulate

your HRM

Strategy based

on the agreed

Priorities and

Action Plans

D. Plan the roll-

out of the

HR(M) Strategy

with the HR

team

C. Define your

HR Department

Plan

A. Define the 5-

yr targets and

actions related

to

WORKFORCE

PLANNING &

STAFFING

B. Define the 5-

yr targets and

actions related

to

ORGANIZATIO

N

DEVELOPMEN

T

D. Define the

5-yr targets

and actions

related to

EMPLOYEE

ENGAGEMEN

T

C. Define the

5-yr targets

and actions

related to

TALENT

MANAGEMEN

T

II. Defining the strategic

HRM Priorities for the

Business

C. Map the

agreed

priorities into

your Strategic

HRM

Framework

A. Prepare a

complete

Report on the

Organization &

People

Management

Gaps &

Challenges

B. Conduct a

workshop with

the

Management

Team to share

the key findings

and agree on

the Business

Priorities

I. Identifying future

organizational & people

challenges

A. Understand

the Business

Plan

&

External

Business

Drivers for

Change

C. Assess the

current

Organizational

Performance

D. Survey the

Voice of the

Employees

B. Analyze

External

Labour and

Workforce

Trends

for the Future

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• Objective =

To collect all relevant data about

the future organization and people

management challenges and

compare this with current

performance related issues.

• Critical HR Competencies to have:

– Business Understanding

– Customer Orientation

– Facilitating & Consulting

– Conceptual Thinking

– Analytical Thinking

Step I – Identifying Future Organizational &

People Challenges


I. Identifying future organizational

& people challenges

A. Understand

the Business Plan

&

External Business

Drivers for Change

C. Assess the

current

Organizational

Performance

D. Survey the

Voice of the

Employees

B. Analyze

External Labour

and Workforce

Trends

for the Future

Want to learn more?

• When you purchase the entire toolkit:

– you can discover the step-by-step approach

at your own pace

– explore and customize all related tools and

templates!

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SAMPLE GUIDE - SNEAK PREVIEW

• Begin by selecting the entity for which the HRM

strategy is being developed:

a) Entire organization

b) One specific business unit

c) One location or geographical area

• In case of b) or c), verify whether a corporate HRM

strategy exists which you would need to use as the

foundation for developing your business or location-

specific one.

• Once you have defined your scope, identify the

leaders who are responsible for the overall business

plans.

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A. Understand the

Business Plan &

External Business

Drivers – 1


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HRM STRATEGY – Tools Overview Available tools per step in the process


IV. Implementing your

HRM Strategy

III. Translating the

Strategic HRM

Priorities in 5-year

action plans

II. Defining the

strategic HRM Priorities

for the Business

I. Identifying future

organizational & people

challenges

HR Business Review -

Questionnaire

HR Business Review -

Reporting Template

Future HR Trends Analysis

-Worksheet

Organization Review –

Questionnaire &

Reporting Template

The Voice of the

Employees Survey –

Questionnaire

The Voice of the

Employees Survey -

Reporting Template

HRM Gap Analysis -

Worksheet

HR Business Prioritization

Workshop - Template

Strategic HRM Priority

Mapping - Template

Strategic HRM 5-yr Action

Plan -Template

See HR Project

Management Tools

Strategic HRM Dashboard

– Reporting Template

HRM Strategy Document

–Template

HR Department Strategic

Plan - Template

See HR Reporting Tools

See HR Organization Tools

See HR Policies

See Organization & Change

Tools

See HR Project Management

Tools

Critical Success Factors &

Potential Pitfalls

The Experience : Sharing Lessons Learned

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• Avoid surprises: know the concerns and level of

strategy-experience of your management team.

• Think and talk like a business leader during the

first two steps of this project. So make sure you

know all the business issues your company is

facing.

• You have to know the organizational structures,

HRM strategies and challenges of the key

competitors of your company – this is where

your management peers will start using your

expertise. You often can find this kind of

information through internal staff that came from

these competitors.

Critical

Success

Factors


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User Terms


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