Human Resources and Business Strategy

The business strategy is the most important business document, which defines the long term goals for the organization. Human Resources has to become the part of the project team to bring the business strategy. The business strategy should not be about the size of the organization and the projected sales volumes.

The business strategy is about the future of the organization and the employees should find a nice vision of their own future. The employees do not like sales numbers and projects to achieve giant sales numbers, they love the soft part of the business strategy.

The business strategy is about a nice future and the employees want their part and the role in it. Human Resources has to represent them and HR has to estimate the future of the of job market and it has develop HR initiatives to be included in the business strategy.

The business strategy is not just about the vision, but it is also about a proper cost benefit analysis of the HR initiatives. HR is not good in making cost benefit analysis, just few employees from Compensation and Benefits are good in making financial analysis and the HR Managers should involve them.

The top management does not like to include the initiatives without the business case. The top management likes to see the costs associated with the HR initiative as they can trust it and they are confident about sustainability of the costs.