The Human Resources Strategy

Navigating Toward Strength In Performance

Navigating Toward Strength in Performance - HR Strategy Design - Human Resources, Strategy Development, Compensation, Benefits, HR Strategies Now, Elements, Talent Acquisition, Training & Development, Performance Management, Onboarding, Employee Relations, Off-boarding, Consulting

Like any business-related strategy, the purpose of the Human Resources strategy is to help an organization make meaningful progress toward achieving an end state or goal. Over time, I’ve found that many small businesses partner with a payroll provider to ensure their people are paid properly and away they go. “But why would you need anything more?”, you might ask. The fact is that the long-term future and success of your organization is dependent on the performance of your people...even more than your products or services. 

 

The Human Resource strategy is your overall plan for managing your human capital and aligning it with your business activities. It sets the direction for all of the key functional areas of HR, including organizational design, compensation, benefits, manpower planning, talent acquisition, on-boarding, training and development, performance management, employee relations, succession planning and off-boarding. The strategy also serves as the foundation for policy and procedure development and risk management efforts. All of these components serve one purpose… to move you closer toward your end goal of growing your business. 

 

The fact is that the starting point for any HR strategy should be the overall business strategy. Most annual business plans focus on five to seven key elements of the business where there’s a desire to drive improvement. This is in addition to the annual sales and revenue targets. Those objectives will often be impacted by market conditions, sales, operating conditions, supply chain, etc. But they will also be impacted by Human Resource practices, the employment market, the competency level of your team, the business culture, the availability of resources and much more. 

 

Advances in team performance rarely happen overnight. It takes time and focused energy to find the right talent, align the right resources, create training and development experiences, ensure that procedures are identified and outlined and create the underlying structures and systems that keep all of it running. Left to chance, the results will be moderately effective at best. Business success happens when people do the right things the right way. The HR strategy is a roadmap that keeps the focus on the “right things” that will move the business forward. 

 

In preparing your HR strategy, some of the key questions that you may want to address are as follows:

  • What are the connection points between your HR function and your company’s P&L?
  • What are the key operational initiatives and how does HR need to better support them going forward?
  • Is the organization structured properly to support your next phase of growth? Do you have the right people in the right seats with the right skill sets? Will they still be right in two years?
  • Is there a clear vision in place for the next three years and, if so, how well is that vision being communicated down through the organization?
  • Do you have an employee handbook in place along with policies and procedures for your day-to-day business? (HINT: This is where traction is most often gained.) Does it present the company’s mission and values?
  • Is there an intentional focus on articulating and designing the culture and other organizational dimensions that are going to propel your team forward? (HINT: This will have a significant impact on your ability to retain your top performers.)
  • Are all weekly transactional processes working effectively (payroll, recruiting, benefits administration, etc.)?
  • Do you understand your current top three risks in your HR practice and are you working to address them?
  • Have you created job descriptions for all positions?

 

These are just a few of the questions that should be considered each year and really cover the basics. Creating an effective HR strategy does not have to be difficult and it doesn’t have to monopolize your time. It’s a matter of using the right information to create incremental changes that can pay big dividends in the future.

Brian Wallace • August 2, 2022
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The Role of Performance Management in Succession Planning

By Brian Wallace • November 5, 2024
Are you ready for the next leadership transition in your organization? In today's fast-paced business environment, ensuring you have a strong succession plan in place is more important than ever. Organizations that neglect this aspect may face skills gaps and leadership shortages that can significantly impact their competitive edge. But how can you effectively integrate performance management into your succession planning strategy to ensure a seamless transition? Let's explore how these two processes can work together to empower your organization. Identifying High-Potential Employees A fundamental part of effective succession planning is the ability to identify high potential. Performance management processes open lines of communication and observation that reveal it. Clear performance measurements, delivered through fair and regular appraisals, enable managers to identify people who have the skills, experience, and qualities required to succeed as leaders. For example, an organization will conduct performance reviews to evaluate its employees based on their ability to solve problems, work in teams, and make decisions. The sooner these high-potential candidates are identified, the better it is for organizations as they work to build a strong pipeline of future leaders. It’s a practice that enables organizations to avoid significant disruptions when key positions become vacant because competent candidates are immediately available to fill the roles. Developing Future Leaders The development of identified high-potential employees is truly crucial. Performance management systems are useful for this purpose, enabling the organization to tailor training and developmental programs to their specific competency gaps. For example, a strong performer with little experience or exposure to leadership can work under a development plan that includes leadership workshops or mentoring programs. Organizations that invest in these individuals not only enrich their talent pool but they also foster employee loyalty and retention. Employees who perceive they are supported and valued are more likely to fully engage and remain with the organization. Setting Clear Goals and Expectations Effective goal setting helps ensure the proper alignment between individual and organizational performance. Performance management clarifies roles and prioritizes responsibilities to ensure that individual, unit, and organizational goals are achieved. Constant review and updating of these goals keep employees focused on their development while keeping an eye on organizational success. Employees often seek more than just a job—they want to be part of something bigger, a vision or initiative they can rally behind. Performance management processes play a critical role in preparing future leaders to recognize, embrace, and actively engage with that greater purpose. Understanding how their role fits into the bigger picture and contributes to the organization’s success is essential, especially for those transitioning into leadership. It provides them with a clear roadmap for personal development and growth. Fostering a Culture of Feedback and Coaching Performance management plays a crucial role in shaping a culture that nurtures and prepares future leaders for succession. By setting clear expectations, providing ongoing feedback, and aligning individual goals with organizational objectives, performance management helps employees understand how their contributions fit into the bigger picture. This creates a sense of purpose and engagement, fostering an environment where individuals are motivated to grow and develop. The process encourages continuous learning, guiding employees to take ownership of their development and positioning them for leadership opportunities. Through structured conversations and development opportunities, employees gain not only technical competence but also the leadership behaviors and cultural awareness necessary for future roles. Over time, this process builds a talent pipeline of individuals who are highly aligned with the organization’s values and capable of driving the company’s vision forward. Conclusion Integrating performance management with succession planning is essential for organizations that want to build sustainable leadership pipelines and maintain long-term success. By identifying high-potential employees early, developing their skills, and aligning individual goals with the company’s objectives, performance management ensures that future leaders are prepared to step into critical roles when the need arises. This proactive approach not only minimizes the disruptions caused by leadership transitions but also strengthens the organization’s ability to stay competitive in a rapidly evolving business environment. Moreover, performance management fosters a culture of growth and continuous learning, empowering employees to develop both personally and professionally. When employees understand how their roles contribute to the organization’s success and feel supported through coaching and feedback, they are more engaged and motivated to grow within the company. This alignment between individual development and organizational goals creates a foundation for effective succession planning—ensuring that each leadership transition builds on a legacy of competence, purpose, and cultural alignment. So, are you ready to take your succession planning to the next level? If so, consider contacting HR Strategies Now . We’ll help you create a customized approach that ensures your organization is prepared for future leadership changes. HR Strategies Now – HR consulting in Cypress, Houston, The Woodlands, and beyond.