HR's contribution to business strategy
HR has an unenviable role in supporting leaders shape the business strategy because HR professionals have unique insights which they can apply at the planning, developing and implementing stages.
During the planning phase of a business strategy, HR has access to unique data in the form of competitor knowledge (based on recruitment, compensation analysis and sharing data with fellow HR professionals in the industry and third party recruiters); insight into the overall capability of the existing workforce (based on development and training plans); it has access to all parts of the organisation and so is able to perceive the inter-relationships, strengths and weaknesses.
When supporting the business during the development phase, HR can call on its technical knowledge of change management (very often HR professionals are seen as ‘change experts’. HR understands the importance of the foundations of strategy, values and culture, it has experience of how to use engagement ‘levers’ e.g. reward, recognition, group dynamics; finally, HR understand the regulatory, cultural and marketplace risks.
Supporting the business to implement its strategy should be where you excel most as HR is technically proficient in supporting the implementation process while as the same time differentiating between ‘people’ and ‘HR’ strategy. Without HR who would do the recruiting, developing and exiting appropriate employees?