It’s believed that many HR processes can either positively or negatively impact the businesses. You, therefore, need to know how to build an effective and clear HR strategy plan for the success and productivity of the business.
Since digital marketing is increasingly affecting all parts of businesses, the HR department needs to adapt to these new practices and changes while also supporting the company. According to recent research sponsored by Cornerstone, about 80% of all European company managers think HR plays a key role in digital transportation.
It’s also believed that HR is in a unique position to help leaders understand what the strategy is and how strategy is developed. HR has the competencies, tools, and capabilities to help the organization in bringing the strategy to life. In order to achieve a successful process, the HR department must balance participating in the development of the business’s digital strategy and also in the running day to day business smoothly, as Jeff Finder, founder of LaptopCut.com put it.
Here are the ways HR can influence business strategy
- Share Responsibility for Business Plans and Goals
Did you know that your business goals are your goals too? When you come up with plans for your department you should direct them to achieve the overall business goals as well as the HR objectives. Developing a performance culture is, therefore, a goal that every HR department needs to own.
The HR department contributes to the inventory, supply the best people who are trained by the business and continuously ask questions that encourage continuous improvement by all.
2. Prioritize Business Culture
The best business strategy can easily be affected by a dysfunctional culture. A good culture powerfully allows the right plan and strategic vision. Leaders must, therefore, think carefully about how their organization’s culture supports and aligns with its strategy.
As the only department with the company’s wide view on employees’ effectiveness and performance, HR is typically positioned to drive the right conversations about the present culture and how the culture may need to change to support the business strategy. The most successful HR leaders help both employees and leaders to articulate the desired culture in relatable specific examples and behaviors.
3. Run the Department like a Business so as to Influence Business Strategy
HR should not get caught up in the business of the overall business such that they forget to run the department like a business. HR needs to meet with their staff and department members weekly to ensure that all of them are pointed in the right direction.
The HR goals must also contribute to the goals of the overall business goals. The action plans should translate into a daily to-do list for the staff members. In every significant activity, there should be feedback so that what has been set can be achieved. HR should also frequently audit the records and ensure that everything is happening well.
4. Streamline the Organization
HR needs to do away with the individual mentality and encourage networking between different departments that normally work together. They should use tools that facilitate communication and collaboration no matter where the employees are located. While startups are masters in the art of flexible working and flat structures they also realize that all the company’s energy should be aimed at one goal which is to create value for the customer.
5. Help Leaders to Identify and Articulate the People Component of the Strategy
While the company’s financial goals are often at the center in a top-level strategy, in most organizations, talent, and people priorities are very important. These may include retaining and attracting top talent, developing core capabilities and enhancing inclusion and diversity. HR can ensure that people and talent factors are addressed head-on in an organization strategy.
Although the talent and people’s needs are owned by the managers and business leaders, HR personnel can establish people's requirements and make sure that the company is set to take care of those requirements. HR often has information about the current and future talent strengths, weaknesses, threats and opportunities.
6. Express Thoughtful Opinions Supported by Study and Data
In order to offer a substantial and intelligent opinion about business direction, HR should understand the numbers. The HR professional needs to learn about everything and ensure that their opinions are backed by data. They need to understand the decisions that their office makes so that things can work smoothly. For instance, while hiring employees they need to back up their recruiting strategy and decision making with data.
7. Change the Way They Work
Implementing change can be a bit challenging. To encourage new changes and inspire the company, HR needs to discuss these changes with the key players and adopt a taste and learn approach to push the patterns that meet the expectations of the workforce. Companies must also endorse a cultural change and not have the fear of failing.
8. Keep the Employees Engaged Around the Strategy and Other Changes
HR is often able to tap into the feelings and opinions of employees across business units, levels, geographies, and functions. Engaging the employees earlier on is, therefore, important in capturing their minds and hearts in the long term. By engaging the people the strategy will move from just mere words to blueprint for success.
Final Thoughts
From strategic planning to the company image, HR is important to organizations in very many areas. HR practitioners who have well-rounded expertise can help provide a number of services to both the employees and the company. For instance, they can help solicit ideas, feedback, suggestions, and reactions about the strategy and how it should be implemented. HR can also act as a change architect by creating and executing plans and strategies necessary to communicate change.
Latest posts by Jeff Finder (see all)
- 8 Tips On How HR Can Influence Business Strategy - April 25, 2023
