Aligning Human Resources and Business Strategy The Personnel Today Portfolio is a collection of Reed Business Information’s titles that serve the complete spec- trum of human resources management in the UK and inter- nationally. Each of the titles featured here offers expert com- mentary, news and analysis relevant to personnel and relat- ed professions today. The HR professional's essential weekly news magazine ■ first for news throughout the HR community ■ delivers practical business information ■ identifies the latest jobs in the HR community The monthly magazine for training and HR professionals ■ provides news, data, comment and advice ■ organises the TD2001 Award for the UK’s top training team (formerly hrworld magazine) The NEW monthly magazine for senior HR professionals with international responsibilities ■ provides invaluable information, analysis and case studies ■ offers data on global workforce trends Occupational Health The only monthly magazine for those managing health at work ■ provides a practical business tool to aid health and safety ■ delivers a wealth of jobs ■ offers news, features and research as well as a section encouraging professional development The monthly magazine offering senior HR practitioners up to date employment law information ■ supplies analysis through case law and practical guides ■ offers questions and answers on legal matters affecting ALL employers The essential business tool for the HR professional ■ offers a complete archive of all news and articles from Personnel Today, Training and personneltoday.com since January 2000 ■ presents breaking news daily and the latest HR jobs ■ delivers a comprehensive online directory of HR products and services For more information on subscriptions to any of these magazines, please contact Personnel Today Portfolio Subscriptions, Marketing Department, Reed Business Information, Quadrant House, The Quadrant, Sutton, Surrey SM2 5AS or visit our website at www.com Tel: +44 (0)20 8652 8803 Fax: +44 (0)20 8652 8986 Email: lizzi.uk Aligning Human Resources and Business Strategy Linda Holbeche OXFORD AUCKLAND BOSTON JOHANNESBURG MELBOURNE NEW DELHI To my loving husband Barney, my parents Elsie and Bill and to the memory of my parents-in-law, Philippa and Brian Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 225 Wildwood Avenue, Woburn, MA 01801-2041 A division of Reed Educational and Professional Publishing Ltd A member of the Reed Elsevier plc group First published 1999 Paperback edition 2001 © Roffey Park Institute 1999, 2001 All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1P 0LP.
Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publishers British Library Cataloguing in Publication Data Holbeche, Linda Aligning HR and business strategy 1.3 ISBN 0 7506 5362 0 For information on all Butterworth-Heinemann publications visit our website at www.com Printed and bound in Great Britain Composition by Scribe Design, Gillingham, Kent Foreword by David Hussey. Foreword by Clive Morton. 1 Part 1: The need for strategic HRM. 1 1 Beyond internal consultancy the need for strategic Human Resources.
1 The changing role of Personnel. 5 People as assets. 10 Raising the game. 11 What makes strategic HRM more strategic than HRM?.
12 Fit with business strategy. 14 Operating as a business partner what do. 15 CEOs need from HR?. 15 Reorienting HR to high added-value contributions.
17 Transforming HRs role. 20 What HR can be valued for and should build on. 21 Towards a strategic HR agenda. 23 Checklists on the role of HR.
27 2 The context for strategic Human Resources. Governance of society is mutating. 31 The changing nature of the workplace. 32 What can HR do about balance?.
46 Checklists on organizational design. 49 3 Measuring the impact of strategic HRM. The business case for addressing employee needs. 52 Predictors of business results.
54 Holistic frameworks the Business Excellence. 56 Model and the Balanced Scorecard. 56 The Executive Scorecard. 58 How can HR add value?.
62 The serviceprofit chain. 65 The Sears turnaround. 68 Strategic planning in Dow Corning. 81 4 Aligning business and HR strategies.
Planned versus emergent. 84 Aligning the organization to the business direction. 87 Building competitive advantage. 90 How can HR strategies be fully aligned?.
91 Aligning HR and business strategies through. 92 Alignment through organization development. 95 Aligning the structure of HR with the organizational strategy. 97 Aligning training and development to business strategy.
98 Strategic alignment through competencies. 100 Integrating HR processes at BNFL. 103 Aligning HR strategies in UK local government. 115 Part 2: Strategies for managing and developing talent.
5 Managing and rewarding for high performance. The changing nature of workplaces. The role of HR in creating integration. 120 High-performance work practices.
121 How can HR help to implement high performance work practices?. 129 The need to revise reward strategies. 132 What reward strategies are appropriate in changing organizations?. 139 How do people want to be rewarded?.
143 Checklist for reward strategies. 146 6 Working across organizational boundaries. The challenges of working across boundaries. 150 Cross-boundary working a manufacturing case study.
154 The characteristics of successful cross boundary teamworking. 155 International teamworking at Ericsson. 164 Checklist for cross-boundary teams. 165 7 Recruitment and retention strategies.
167 The recruitment process. 171 Recruiting and getting the best out of. 173 Motivation and retention. 174 Towards a strategic approach to retention.
180 Elements of a retention strategy. 180 Helping managers to make the difference. 187 Recruitment and retention checklist. 188 8 Strategies for developing people.
191 Prioritizing development needs using competencies. 194 Prioritizing resource allocation according to different development needs. 196 Development needs of high flyers. 198 How do high flyers learn best?.
199 Supporting the development of high flyers. 200 How can directors be developed?. 203 Supporting managers development. 205 Methods of learning.
210 Checklist for development needs. 213 9 Developing effective career strategies. The effect of flatter structures on employees. 215 The growth of flatter structures.
216 New forms of career development?. 216 The paradoxical effects of flatter structures on roles. 219 The role of HR professionals. 219 Towards a new psychological contract helping people to help themselves.
221 Career Development at Standard Life an update. 224 Developing innovative career tracks in a scientific environment. 225 Career management within KPMG UK. 229 Corporate-wide support mechanisms.
234 Some local initiatives. 238 Tensions relating to achieving career success. 239 Careers in the future opportunities and challenges. 242 Checklist for the new career structures.
244 10 Developing international managers. What is an international organization?. 246 The role of the international manager. 247 What does an international role look like?.
248 How willing are managers to accept an international assignment?. 249 Organizational versus individual expectations. 250 The role of HR in managing assignments. 251 International mobility at Ericsson.
252 Selecting international managers. 253 Recruiting and developing international managers in BP Amoco. 254 The skills of international high flyers. 256 Developing international managers.
258 Developing international managers at Standard Chartered Bank. 260 Conclusion benefiting from international leadership. 264 Checklist for international management strategies. 265 11 High-potential assessment and succession planning.
Conventional fast-track schemes and succession planning. 269 Changing career messages. 271 The assessment and development of high potential at BP Amoco. 274 Succession planning for the top jobs in BP.
281 Amoco a strategic approach. 281 The changing employment context. 284 Whats happening to fast tracking?. 285 Recommendation one: Integrate succession planning with other initiatives.
289 Recommendation two: Be clear about what else you want to achieve though succession planning. 291 Recommendation three: Create the processes, then assess and monitor performance. 294 A partnership balancing the needs of the organization with those of the individual. 301 Checklist for succession planning.
302 Part 3: HR as a strategic function. 12 Developing a strategic HR agenda. HR strategists in action. Repositioning HR from transactional to value.
311 Adding value at Standard Life. 333 Checklist for strategic HR practitioners. 335 13 International approaches to HRM. A global HR agenda.
337 Developing global leaders. 339 Supporting transnational teams. 340 Building a global culture in Standard. 342 Checklists on globalizing and supporting the.
354 Part 4: Implementing strategic change. 14 Bringing about strategic change. What is meant by culture change?. 360 Approaches to changing cultures.
365 Communication and leadership. 367 Helps and hindrances in managing change. 370 Checklist Developing a positive climate for change. 372 Developing a customer-focused culture in.
372 The role of HR in supporting change. 374 Measuring progress and success. 380 Change at Thresher updating the Operations. 380 Development Project story.
380 Winning board commitment. 382 Creating the principles for managing change. 383 The HR contribution. 384 Capturing the learning.
387 An individuals experience of the change process. 388 Getting the balance right and beyond. 389 Key learning points. 391 Checklists on change management.
393 15 Mergers and strategic alliances. The growth of mergers. 396 What separates merger partners. 398 Mergers need managing.
401 Waves of change. 404 The Whitbread case: the integration of Peter. 406 Dominic with Thresher. 406 Key learning points.
413 How HR can help an organization through a merger. 419 Making alliances work. 422 16 Creating a learning culture. 424 How can barriers to the sharing of knowledge be overcome?.
428 How organizations are developing intellectual capital. 432 Moving towards organizational learning. 437 Culture change at Sainsburys Logistics division. 437 Open Access Development Centres at.
439 Creating a self-development culture at the. 439 National Air Traffic Services (NATS) .1 The human resource cycle and ‘fit’ with business strategy 14 3.1 Moving up the HR ROI scale 61 3.2 The components of the ideal human organization 72 3.3 The strategic HR planning process 73 4.1 The competency framework for BNFL 103 7.1 The top motivators 179 9.1 The possible elements of a career framework 223 11.1 Linking competency assessment to development 281 11.2 The supporting committee infrastructure in BP Amoco 282 11.3 The cohort review process in BP Amoco 283 13.1 The HR global team at Standard Chartered Bank 346 13.2 Global HR priorities at Standard Chartered Bank 348 14.1 The organizational HR scorecard 378 15.1 Typical emotional waves following a merger 405 Foreword by David Hussey When the term Human Resource Management began to be used, it was intended to be more than a more fashionable job title. The intention was that HRM should take a more strategic role than personnel management. Unfortunately, just as many people in sales became marketing managers overnight and cor- porate planning departments swapped their titles for strategic management, so many personnel departments took the new name of HRM: in too few cases was the change in name matched by an increase in strategic behaviour.