A true HR strategy is about more than HR

Raising the Role of HR to Foster a Sustainable Business Future

Published by Arthur Mazor Amy Sobey and Ken Kunkleman on November 15, 2017.

Despite the evolution of HR over the last 20 years, HR does not systematically create sustainable business value for organizations. Only 20% of business leaders believe that HR adequately plans the future talent needs of their businesses1. And only 22% of them are convinced that their organization fits well with the needs of employees. Coupled with interruptions of work and manpower, the HR challenge is clear: step up, or you could lose your place at the table.

Conventional wisdom suggests that a "good" HR strategy should only answer three basic questions: Who are we? What are we delivering? And why do we do it? 2 While these questions attempt to focus HR efforts and align HR with overall business strategy, they are too internal-focused and relegate HR to a simple support function.

Imagine that HR "plays" a role and move from a support function that offers "HR" advice and guidance to business leaders to a co-owner, a facilitator and an influencer of the business strategy and operations. We propose that a truly effective HR strategy identifies the components of an organization's overall strategy that HR is responsible for performing, holding accountable and consulting for formatting. For example, HR can and must influence culture; create differentiated experiences for people in the organization who help the company to offer a "simply irresistible experience" to its employees; and increase the productivity of the workforce through innovation. When human resources can effectively drive these types of significant results in partnership with other leaders of the organization, they will be able to steer the company and the workforce towards a sustainable future.

What does the HR strategy really mean?
A business strategy provides the framework through which an organization develops, innovates and creates a sustainable future with a defined purpose. However, organizations realize their strategies only through the focused efforts of their employees. In practice, this means that the HR strategy should include the following:

Evolve organizational culture and purpose
Improve productivity and innovation
Navigate the workforce and work interruptions

Evolution of the culture and purpose of the organization . Culture is one of the most talked about topics in 2017 and is on the radar of executives looking to mobilize their organizations to meet the challenges of today. However, the majority of organizations do not understand their culture or do not know how to evolve it.3 When the strategy and culture are aligned, companies can post up to 50% difference in performance4; and to help energize a culture in a competitive advantage, the active ingredient is the emotional connection between the company and its employees. HR should be responsible for influencing leaders and staff, helping leaders to project the right behaviors and values ​​to foster the desired organizational culture.

Your organization can already identify a set of common cultural values ​​that you want to maintain. Now, imagine if you could identify critical behaviors that fuel cultural values, refine skill models, consolidate behavioral change with measures and rewards, and ultimately generate differentiated business performance.
Your HR organization can already provide employees with development opportunities that help them find a purpose. Now, imagine if you can use stories and images to link your organization's work to a higher goal, work with business leaders to connect the specific accomplishments of employees to broader organizational goals and create experiences. differentiated where talent can help them reach their full potential. .

Your HR organization can already measure your culture and engagement through annual surveys. Now, imagine if you could use tools that analyze and derive ideas about culture and purpose, and guide you in developing programs and policies that meet the needs of your people

Improve productivity and innovation. In thousands of companies, the commitment is stable year after year5. Despite the increase in the average number of hours worked by employees in the United States5, productivity is growing at only about 1% per year6. Why? Few organizations master the engaging talent or motivate a multigenerational workforce. Engaged talent is critical to being competitive in today 's talent market and capitalizing on technological innovations. HR should help their organizations revolutionize employee experience, drive innovation and create value with a high impact for the company.

Your HR organization can already work hard to meet the urgent demands of your customers, but do you respond to one-off, isolated solutions? Now imagine if you could use data to proactively identify and influence the interactions that combine to create an overwhelming experience for employees.
Your HR organization can already be looking for innovation through investments in a core technology that allows for the self-service of HR employees. Now imagine if you could implement technologies that boost engagement and productivity across the workforce, such as immersive learning software to develop new features.
Your HR organization can already use feedback mechanisms to understand the opinions of your staff. Now, imagine if you could develop the capabilities to scale up new information and ideas in a way that matches the needs and desires of your talent.

Navigating in the workforce and interruptions of work . Human resources are particularly well placed to lead the organization through manpower and work interruptions. To do this, however, human resources should adopt the data, structure, and strategy tools to remain agile. HR can only lead to value creation at the organizational level if, as a function, it is both truly proactive and strategically proactive and truly leads the front.

Your HR organization can already use benchmarks and market research to determine if they add business value. Now, imagine if you could reverse what is common across successful HR organizations, identify key features and take advantage of an "adapted" framework that matches a sustainable impact on the business and a tailored approach the unique priorities and culture of the organization.
Your HR organization can already use customer data to make business decisions. Now imagine if you could synthesize several types, sources and iterations of employee, customer and workplace data to evolve appropriately and maintain a competitive edge, even in a constantly disrupted market.
Your HR organization can already prepare for a sustainable future by building effective team structures that support your vision. Now, imagine if you could dedicate your organization to agility through the development of a network of dynamic and flat teams, and exploit and enhance their potential by examining creation, performance and collaboration individual used to do the work.

The tie all together

In a world where evolution is synonymous with survival, "climbing a level" should be the only viable option for HR. Bersin ™ research shows that mature HR organizations tend to have better results in terms of activity and manpower. They are 1.3 times more likely to meet financial goals and 3.2 times more likely to effectively manage change7. It's time now to redefine your HR strategy: transition from a support function offering HR advice to a business owner, influencer and strategy facilitator.

Arthur Mazor is a director at Deloitte Consulting LLP and the leader in HR strategy and employee experience as well as service delivery Global HR. He collaborates with complex international clients to achieve a high commercial impact by focusing on the transformation of human capital strategies, programs and services.

Amy Sobey is a specialist in Deloitte Consulting LLP's HR strategy and experience solution. She works with large organizations to guide the global, complex and business-driven HR transformation.

Ken Kunkleman is General Manager of Deloitte Consulting LLP in the field of Human Resources Transformation and HR Strategy and Employee Experience . His areas of intervention include HR strategy, HR transformation, HR service delivery and human dimensions of transformations.

The authors would like to thank the following people for their contributions to this article: Hannah Keenan Jessica Simon and Saloni Rajpal .

1Global Human Capital Trends 2015: Leader in the New World of Work, Deloitte University Press, February 2016.

2David Ulrich, and. al., HR Transformation: Building Human Resources from Abroad, RBL Institute, McGraw-Hill, June 22, 2009.

3Global Human Capital Trends 2016: The New Organization: Different by Design, Deloitte University Press, February 2016.

4James Heskett, The Cycle of Culture: How to Shape the Invisible Force That Transforms Performance, FT Press, 2012.

5Bersin by Deloitte searches for owners with Glassdoor.

6Kim Gittleson, "Can a company live forever?" BBC News, New York, January 19, 2012.

7Stacia Sherman Garr and Candace Atarnanik, High-Impact Talent Management: The Maturity Model of Talent Management, Bersin by Deloitte, Deloitte Consulting LLP, 2015.

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