PIHRA Scope - Fall 2008 - (Page 13) STRATEGIC PLANNING continued from page 11 everything can be outsourced! Regularly investigate and analyze the offerings of outsourcing companies capable of responding to requests for proposals to deliver any key aspect of your function. Similarly, investigate a business unit’s ability and/or interest in supplying itself with functional expertise. Lastly, demonstrate and communicate value at appropriate times. This is sometimes counter-cultural for the HR profession; however, your success in a competitive environment depends not just on the value you add but also on who knows you add value. The first step in demonstrating/communicating value is to measure outcomes, not output. In other words, focus on the consequence, not the action. Communicate the incremental revenue growth generated in a month, not just the number of new hires in a month. Discuss the impact on earnings per share made by the promotion of senior managers who successfully completed an executive development program. earnings per share (if your company is publicly traded). In order to really understand your business you must know how the money f lows as well as what are the levers that drive grow th and profitability. CONCLUSION The ultimate goal of strategic planning is the identification and exploitation of opportunities along with the mitigation of risks, by aligning the goals and initiatives of an organization and by allocating the necessary and appropriate resources to deliver the desired results of its stakeholders. The HR function can and should be involved at every step of the process. Successful execution of the aforementioned guiding principles throughout each phase of the planning process builds the perception of value of the HR professional and of the HR function. Furthermore, the HR professional’s position is strengthened by providing fact-based insight to stakeholders to enable their strategies, by shaping HR functional plans and policies and procedures to align resources to enable the appropriate initiatives and activities, and by aligning performance management systems to the strategic plan. This proactive approach, well executed, will ensure a “reserved seat at the table.” ■ Alan Frelix is President of The Frelix Group in Los Angeles. He can be reached at 310-242-6869 or afrelix@thefrelixgroup.com. TAKE A POSITION ON A STRATEGIC ISSUE When the time is right, leverage the aforementioned principles and take a position on a strategic issue that your company is facing. In order to get your invitation to the “table” you must be perceived as someone who can identify strategic issues and as someone who brings innovative solutions to the resolution of those issues. Use good judgment when selecting the issue(s) for which you will engage yourself. Be practical and choose one that will generate a “quick win.” Search for major new internal initiatives (particularly those that “bubble up” in the organization), a major customer-focused initiative or identify an issue generated by negative news and the need for risk management. Also, be sure to provide strategic-thought leadership, backed by facts and analysis when you engage. For example, it is not enough to tell the CEO or COO that turnover is high and that we need to work on employee engagement in certain business units to improve. Employee engagement, while real and effective, is still an esoteric concept to most at the C-level. Take the conversation deeper by explaining what the turnover is costing the company today and how much the continued cost will affect profitability over a multi-year period. Then, provide a list of initiatives that you propose (after consultation and involvement with line management) along with the expected costs and benefits of such activities. Show this information in terms of investments, costs and benefits over a period of time, along with how these initiatives will positively impact the bottom-line over multiple years. To score extra credit, explain the cost/ benefit analysis in terms of net present value, economic profit, and/or impact on Tel. (213) 386-3876 Comprehensive Immigration Services Top Credentials. Free Consultation. 3550 Wilshire Boulevard Suite 2000 Los Angeles, CA 90010 Tel. (213) 386-3876 Fax (213) 386-2876 E-Mail: info@marouflawgroup.com www.MAROUFLAWGROUP.com Fall 2008 PIHRAScope 13 6/18/08 10:50:12 PM 382751_MarcoufLawGroup.indd 1 http://www.marouflawgroup.com
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