HR as a Strategic Planning Partner
by Linda Gravett, Ph.D., SPHR

As I’ve guided Human Resource Departments through their planning processes over the last several years, I’ve found that not all Human Resource professionals are convinced of the necessity of strategic planning.  If you’re one of those nonbelievers, in this article I’ll attempt to persuade you of the importance of strategic planning.  If you already believe this is a critical process, I’m also offering some guidelines on establishing an effective strategic planning process.

The first order of business is to clarify what strategic planning is and is not.  The process is not goal setting.  Goals can’t be effective in a vacuum – they have to be aligned with specific objectives in order to be meaningful.  You can say that you’ve set a goal for recruiting and hiring 50 employees this year who are fluent in Hindu.  Unless your organization has a need now or in the future for employees with this ability, why set this goal?  Even if a goal is meaningful, there still needs to be a plan (tactics) for actually implementing the goal.  Strategic planning is not a one-time event, but rather it’s an ongoing process that must be fluid to address the changing environment in which your organization exists.  Even though you establish specific, sound objectives and goals in January, be prepared to adjust if a major change occurs in your organization or industry in June.  Strategic planning is not short-term – i.e., one or two quarters out.  Strategic planning is a future oriented, with a vision that stretches out into three or five years so that you can actually have time to set goals, carry them out, and measure the results.

Strategic planning is a dynamic process that must constantly revisit how the world events of the day are affecting your long term objectives.  The strategic plan can serve as a roadmap, providing tactics to achieve your department’s (and your organization’s) vision and mission.  A vision without a plan is a group of lofty words…and that won’t move you closer to getting results.  The purpose, then, for establishing a strategic plan is to:

·         Decide where your department is going over the next three to five years

·         Establish an action plan (tactics) to get where you want to go

·         Help your staff focus on the truly important activities

·         Define the resources you’ll need to accomplish your objectives

·         Create a plan to acquire necessary resources

My experience has led me to a strategic planning framework that I’d like to share.  The first step in this framework is position planning.  By that I mean, how do you as the HR leader want to be viewed within your organization?  Perhaps you want HR to be seen as an internal consultant, or a business partner, a change agent or a profit center.  Decide first how you want to position yourself.

The next step is data gathering to find out whether there’s a gap in how HR is actually perceived and how you want to be perceived.  There are some excellent survey tools available on the SHRM website (www.shrm.org) that HR can use to survey its internal customers.  Maybe you’re thinking that you don’t want to hear what people are thinking.  I encourage you to be proactive and find out how you’re perceived before your CEO gets negative reports.  You can’t act on data you don’t possess.

After you receive input about what services employees, managers, and organizational leaders want from HR, you’re in a position to assess the implications of this information.  Do you have the right staff (number and skills) to provide the level of customer service that is expected of HR?  If not, this is the time to develop an action plan to update the skills and competencies your staff need in order to be effective and credible.  In other words, enhancing skill levels or number of staff should be one objective in HR’s strategic plan.

Next, it’s time to establish an action plan.  This is the heart of the strategic planning process.  If you’ll note in the attached strategic planning framework, strategic planning starts with a Mission Statement (why are we here), a Vision Statement (where do we want to position ourselves in the future), a candid analysis of environmental barriers and support mechanisms that help or hinder HR effectiveness, and then objectives, goals, and tactics.  Many HR Departments have great fun spending time pondering over a Mission and Vision statements, or even go on to establish objectives and goals.  But don’t forget the tactics:  that’s the action plan for how, who, and when. 

At the end of each year, I recommend that you set time aside to evaluate how well your department has met its strategic objectives.  Did you set success criteria when you set your goals?  Did you meet those criteria?  What prevented success and how can you change your approach?

If you want to take your strategic planning to the next level, encourage breakthrough thinking when your department sets its objectives.  By that I mean, ensure that objectives you set accomplish at least one of the following:

·         Provide a significant benefit to the customer

·         Change the basis of competition

·         Require a radically different allocation of resources

·         Create a new standard or system

I’m suggesting that you endeavor to set objectives that provide your organization with a distinct competitive advantage in recruiting, developing, and retaining employees.  What can your organization do that’s different or better than other companies?

If you engage in strategic planning and measurement of results, there are some clear advantages:

·         You’ll be perceived as a business partner who understands “the business of the business”

·         You’ll have increased credibility when you request resources

·         You’ll strengthen your influence within the organization

For more information on strategic planning for HR, don’t hesitate to email me at linda@gravett.com or call me at (513)753-8870.