Developing a Strategic Human Resources Plan

Jan 20, 2010

Author: Tim Pervin for HR-on-Demand

We have observed a number of companies that, in fighting the recession, have diverted their attention from employee and other operational matters. This forces them to become creative around how they execute their overall business strategy. Now, there is no point in returning to the “old”, but fuzziness may have crept into the decision-making process.

According to a recent research report, 20% of high potential employees are choosing to leave their current positions for other opportunities despite the uncertain economy (source: “Many High Potentials Leave Despite Recession”, Chief Learning Officer, Aug. 18, 2009). External data also shows that turnover typically spikes after a recession, and even though there are some signs of improvement in our market, high-potential employees aren’t afraid to jump ship. We believe that many of these people have lost faith in the plan.

As a result, we recommend revisiting current business strategies and its component parts to ensure that they’re reflective of the new marketplace. One of the tools that can be economically applied is a balanced scorecard process.

The balanced scorecard is a strategic planning and management system that is widely applicable to organizations regardless of size or type of business. It provides a method of aligning business activities to the vision and strategy of an organization, improving internal and external communications and monitoring performance against strategic goals.

Because the balanced scorecard is a generic term, it means different things to different people and, in practice, there are wide variations in both its understanding and implementation. To some, the balanced scorecard is a simple console of performance measures, while to others it is a comprehensive planning and management system covering the whole organization and designed to focus efforts on its strategy and, more importantly, on performance and results. The range of answers is correct because the rigor or the analysis is a function of what the company wants to find out.

 There are several major challenges to developing and sustaining a balanced scorecard. They include:

• Engaging leadership

• Maintaining momentum

• Measuring what matters

• Not just using a disciplined framework to build the system

• Mistakenly thinking a scorecard system is a short-term project (it’s not; it’s a journey)

• Not involving a cross-section of the organization in developing the answers

• Not thinking strategically enough

• Not incentivizing desired behaviour changes

Some people ask whether the balanced scorecard is just the latest management fad that will soon pass away. Our belief is that the "buzz word" may change, but not the underlying concepts (thinking strategically, measuring performance and evaluating result and feedback), which are here to stay for a long time. These are fundamental management concepts that have been around a long time and will remain. So managers who learn the methods of the balanced scorecard will be in a better position to lead in the future. They will have the right skills to think, plan and assess the success of their organizations. These skills will be valuable for the foreseeable future.

There are up to nine steps that we can use to help clients create a balanced scorecard. They include:

• Organizational assessment

• Strategy development

• Strategic objectives

• Strategy mapping

• Performance measures and targets

• Strategic initiatives

• Automation

• Cascading the results throughout the organization

• Evaluation

When we meet with a client, our approach involves three guiding principles:

• “The answer is in the room”, which means that within your company, you will find that your peers have great knowledge and general ideas of what you want to see happen but need someone to help you coax out the direction (which is us).

• The best path is through building community, learning and sharing knowledge. Legislation of ideas will not create compliance.

• The client must be self-sufficient when our work is done. You need to own the plan; we’re around for a short time to help you through the process.

 If you are interested in finding out how we might be able to save some of your key employees, or turning the recession into a marketing advantage, give us a call.

Return to previous page

Human Resource Outsourcing Outlook 2009

Aug 12, 2009

Author: Vendorseek.com

Human Resource Outsourcing Outlook 2009

In a recession, all arrows point to outsourcing. The Human Resources Outsourcing (HRO) industry projects growth at five percent in 2009 amid the most severe economic downturn since the Great Depression. Some of the industry changes driving this growth promise to translate into improved ROI for HRO clients. Find out which behind-the-scenes strategies will save you money in 2009.

To reach a projected $3.2 billion in sales, HRO intends to drive new business through several strategic initiatives.

A La Carte Service

Industry analysts are predicting more componentized deals, allowing companies to select specific services to outsource while retaining others in-house. HR outsourcing suppliers are building greater flexibility into service agreements, allowing clients on-demand service changes and pay-as-you-go pricing. With cost reduction a top priority, new clients will target transaction-intensive processes for outsourcing. Human resources outsourcing services include:
- Payroll and benefits
- Recruiting
- Performance management
- Compensation
- Learning

HRO clients can trim expenses by accessing available resources only as needed, scaling outsourced services to meet changing needs. In a volatile economy, this sort of flexibility is crucial to maintaining a lean business.

Human Resource Management System (HRMS) Technology

Human resource management system (HRMS) technology has hitherto served as something of a competitor to HRO. HRMS facilitates in-house human resources, providing a global view of human capital and automating tasks such as payroll, benefits, recruiting, training, and performance tracking. A technological solution can increase in-house efficiency, rendering outsourcing unnecessary.

In 2009, however, analysts predict an increased adoption of HR technology by outsourcing providers. By making this technology available to clients on a Software as a Service basis, HRO suppliers present an attractive proposition for companies looking to avoid a large capital outlay. Clients benefit from subscription-based access to both the state-of-the-art technology and the providers outsourced human resources team.

Consolidation in the HRO Industry

Consolidation among HRO suppliers will bring better value to clients outsourcing multiple processes or implementing a large-scope human resources solution. Industry analyst Everest Research Institute expects to see consolidation via mergers and acquisitions as well as via partnerships among independent suppliers. Providers will consolidate in order to broaden their expertise into new processes and technology; widen their geographical footprint; and expand their market share.

For HRO clients, consolidation promises greater efficiency and access to broader services, as well as a reduction in the cost of multi-process service contracts. Continuity between services alone produces greater value. For example, a global HRO supplier might partner with a specialized Recruitment Process Outsourcing (RPO) provider to deeper recruiting services in specific geographies. Their clients benefit from both the reach and economy of a global HRO and the local recruitment relationships of the partner.

The coming year offers a promising outlook for human resource outsourcing suppliers and clients alike. As the market for outsourcing human resources matures, the industry will drive growth by increasing the efficiency and breadth of its services. In a climate of pessimism and gloomy forecasts, companies finally have something to cheer about.

by VendorSeek.com

Return to previous page