We have discussed the changing role of HR numerous times on this blog. Those of you who read our insights may already know that due to the complexity of the current business landscape, HR is faced with great challenges but also offered an unrivaled opportunity to drive business strategy instead of being shaped by it. In this sense, there is an ever-increasing need for HR and CEOs to work in tandem in order to fulfill a set of crucial priorities that will considerably enhance the bottom line. These priorities include finding the right future leaders, embracing changing conditions and diversity. Ultimately, these are topped by the urgency to redefine people strategy.
Redefining people strategy means that HR and the C-suite should depart from the idea that people strategy should cater to the needs of an already established business strategy and move towards a people strategy which- backed by data analytics- can shape the business strategy as much as the business strategy shapes it. This, of course, has not been achieved yet as HR is still held back by its very systems –designed to boost operational rather than strategic excellence- and by IT which, in most cases, cannot figure out how to provide valuable insights. In simple terms, HR systems do generate copious amounts of data yet their focus is more transactional than strategic, while any data analysis help they might receive from IT usually hits the wall. Hence, HR cannot draw the link between workforce decisions and business value.
This is, precisely, where the people strategy platform comes in to play. In essence, this new platform allows HR to tie people management to strategy using data both from HR’s existing systems and business systems. Thus, its focus is on strategic excellence by providing actionable strategic intelligence. For example, unlike HR management systems that can simply track performance reviews and provide rewards and recognition, the people strategy platform uses employee history data to develop more star talent, use training programs and assess their impact on business value, track bias and ensure equity and determine employee qualities that add the most value.
Nevertheless, a high-impact people strategy platform should include a set of crucial capabilities:
- Answering the right questions
- Linking people to business results
- Providing insights based on the past, present and future
- Sharing insights clearly with all interested parties
- Cost-Effective, collaborative workforce planning