Human Capital Strategy Exercise

1 Introduction

A company’s Human Capital strategy is the translation of the business strategy into a game plan that focuses on how to optimise the performance of the company’s people in order to achieve its business objectives. It will reflect how HR within the organisation will provide added value to line management in order to strengthen the company’s competitive position in its business arena.

Indeed the Human Capital strategy of an organisation is the line management’s strategic activity to attract, develop and retain – in a proactive and integrated way – the right people to accomplish its business strategy.

The added value of HR to the company will consist of providing excellent services with regard to personnel administration and positioning the organisation as an employer of choice, as well as being able to contribute to the achievement of the business strategy, if it is able to position itself towards line management as a change agent and business partner.

2 Human Capital Strategy Exercise

With this exercise the Acker Deboeck and Company consultants are aiming to help the client’s company in defining or reviewing its Human Capital strategy and crafting a concrete action plan in order to get there. This exercise has two components: assessing the company’s current Human Capital strategy and HR organistion, and then crafting the new strategy. In the first stage we try to understand the features of the client’s HC strategy and organisation. The purpose of this phase is to provide an answer to the following topics by interviewing a number of key people within the HR organisation and line management:

3 Understanding the client’s Human Capital needs:

  • What is the business strategy?
  • What are the present business challenges?
  • How is the current HC strategy perceived? Does it provide added value to the business?
  • Is the HR operating model in alignment with the business operating model?
  • How is the leadership perceived within the HR organisation?
  • How are the internal HR organisation and its processes perceived?
  • What is the quality of the HR people and talent?

4 Understanding the needs of the HR organisation:

  • What is the HC capital strategy of the HR function?
  • How is the HR function organised within the organisation?
  • What are the key HR processes?
  • How is the HC decision making process structured?
  • What are the features of the HR client service model?
  • People and talent within the HR organisation?

5 Strengths, weaknesses, opportunities and threats (SWOT) analysis of the HR organisation and its HC strategy.

The information gathered during the interviews will form the basis of a report that will be used in a strategic vision session with the HR management team. During this session the Acker Deboeck and Company consultants will facilitate the process in order to:

  • Define a strategic vision and direction
  • Define the most appropriate HR organisation
  • Define roles and responsibilities of the key actors within the HR organisation • Define key HR processes
  • Translate the strategy into concrete measurable objectives
  • Craft an action plan to accomplish the objectives
  • Design a process to implement the strategy
  • Define a process to monitor, evaluate and adjust the implementation process if necessary

This session will result in a concrete plan to implement the chosen strategy. In this process we will spend a lot of time aligning the HC strategy and the HR strategy with the business strategy and model. We therefore suggest Working Sessions with the principal HR actors, HR clients and line management.

At a later stage we will be able to coach the VP HR / HR director and his management team in the implementation, evaluation and adjustment of the defined strategy and new HR organisation.