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BUSINESS STRATEGY
Foundation for all org decisions
Business strategy- Decisions, processes, and hchoices that firms make to position themselves for
sustainable success
HR Strategy- about how to manage their people
Senior leaders have to consider external environment, consumer trends, competitive positioning,
internal strengths and weaknesses
Defines pivotal elements for success
Leaders can ensure that all resources are deployed and managed in relation to their importance to
strategic success
Ensuring Coherence in Strategic Direction
o Organizations are successful if everyone strives for common goals
Form a hierarchy of vision, mission, strategic objectives
o Vision must be inspiring, overarching, long term, emotionally driven
May or may not succeed depending on strategy
Alignment of strat, analysis, implementation is key
o Mission statement includes PURPOSE and basis of COMPETITION and
COMPETITIVE ADVANTAGE
Most important audience is employees
Builds common understanding of purpose and basis of advantages
Guidance on how org can fulfill or move toward higher level goals (vision and
mission)
o SMART objectives
Specific, measurable, appropriate, Realistic, Timely
Channel efforts toward common goals and motivate and inspire
Measures performance and distribution of rewards
o Downside to planning business strategy
Locks companies into vision of future that may not come to pass
How do you plan for future when future changes quickly??
Make a planning process democratic, including line managers to
customers to suppliers
Top managers listen and prepare to shift plans
Recognize that customers are arbiters of choice
WORKFORCE FORECAST
estimate labor requirements at some future time period
two types
o external and internal supply of labor
o aggregate external and internal demand of labor
internal supply relates to INSIDE the organization
o age distribution of workforce, terminations, retirements, new hires
internal and external demand forecasts depend on behavior of biz factor to which HR needs can
be related
o subject to many uncertainties (domestic or worldwide econ conditions, tech, consumer
behavior)
forecasting external workforce supply
o hiring new employees are essential
o projections of external labor market conditions & estimates of supply of labor
Bureau of Labor Statistics, National Science Foundation, Department of Ed
National Assoc of Colleges and Employers have survey of offers to grads
(naceweb.org)
orgs in varied industries like oil and gas, digial advertising, construction, etc. use
projections to prevent surpluses or deficits of employees
forecasting internal workforce supply
o starting point for projecting future labor supply is current supply
form of risk management
o succession plan
developed for management employees, nonmanagement employees, or both
similar to insurance policy, being there when you need it
o top challenge identified was fueling business growth, with improving leadership
development and growing talent internally viewed as key vehicles for implementing biz-
growth strategies
o some deep-seated reasons why firms don’t deal with succession issues:
personality, ego, power, mortality
o assuming barriers can be overcome, developing a plan should include
gaining alignment on biz strat
assessing current performance and promotion readiness
identifying replacement candidates based on fit with biz strat
identifying career development needs
integrating career goals with company goals
leadership-succession planning
o considered by many firms to be sum and substance of SWP
o stated objective: to assure top quality and ready talent for all executive positions
o responsible executive makes formal presentation to corporate policy committee
consists of assessments of stress and weaknesses of units’ executive resources
highlights present performances and potential of key execs and potential
replacements
o policy committee reviews and critiques info, adds insight to line management
o important to note that common set of leadership attributes links all management practices
thinks from outside in
drives innovation and growth
develops, teaches, and engages others
makes courageous decisions
leads with energy, passion, urgency
lives company values
o 5 broad objectives
align available KSAOs with strat of business
identify talent and development needs early
build depth in org, leverage talent across businesses, drive diversity
performance-appraisal process captures and documents individual
results
management team conducts consensus reviews
use assessments of performance and leadership attributes to build mgmt.
consensus on each employee’s contributions and development needs
3M leadership attributes underlie assessment, development, and succession
Lessons to apply
o Ceo must drive talent agenda.
Commitment from the top is key
o Identify and communicate a common set of leadership attributes to serve as a “road map”
for people in leadership positions and all other employees
o Use candid, comprehensive performance reviews as building block for assessment,
development, and management consensus of performance and potential
o Keep to regular schedule for perf reviews, broader talent reviews, and IDing talent pools
o Link all decisions about talent to strat of org
Forecasting workforce demand
o Multiple uncertainties
Changes in tech, consumer attitudes, patterns of buying behavior, local / natl /
intl economies
Forecasts of demand are more subjective than quantitative
Identify pivotal talent
o ID jobs that drive strat and revenue
o Differentiate your org in the marketplace
o Link specific positions to quantifiable revenues, biz objectives, and biz ops
Assessing future workforce demand
o Central purpose of SWP is to ensure that biz demands for talents are met ASAP
What is impact if not filling open sales positions
What is correlation btwn safety violations and accidents?
o To develop estimate of numbers and skills needed, ask questions like
What are key biz goals for the next __ years
What are top three priorities we have to execute well
What are critical workforce issues we face
What are 3-5 core capabilities we need to win in markets
What actions are necessary to align resources with priorities
How accurate is accurate
o Accuracy varies by firm and industry type
o Factors like duration of planning period, quality of data on which forecasts are based,
degree of integration with strategic biz planning… all affect accuracy
o As SWP matures, org boundaries disappear so talent and skills are managed and utilized
more efficiently
o Also SWP gains broader support
o SWP starts incorporating tools from other functions and frameworks (finance, marketing,
supply chain management
o SWP becomes more data driven
Integrating supply and demand forecasts
o Forecasts must result in understandable and meaningful product
o REQUIRES concise statement of projected staffing requirements that integrates supply
and demand forecasts
Make or buy
o Is it better to select workers who already have skills or select workers that don’t but can
be trained to perform?
o Guidelines for determining buying vs making
Accuracy of forecast of demand: if not accurate, do more buying
Possess “scale” to develop?: if not, do more buying
Job ladder to pull talent through? If not long, do more buying
How long will talent be needed? If not long, do more buying
Change culture/direction? If yes, more buying