Internal and External HR Strategy Alignment

The HR Strategy cannot live on its own. The HR Strategy has to be linked internally and externally. When the HR Strategy is not properly linked, it is a dead document, which cannot be used to navigate Human Resources and managers in the area of the people management in the organization.
The internal alignment of the HR Strategy is about respecting the overall business strategy and aiming the main drivers of the profitability. When the HR Strategy is set for the manufacturing company with a very low margin, the main driver of the HR Strategy will be about keeping the costs low and potential cost cuts in the future. The consulting company with very experienced staff will have a completely different demands from Human Resources.
The external alignment is about knowledge of the local labor market and the future demands of the clients and customers. The HR Strategy is not focused on the immediate needs and gaps, the HR Strategy has to prepare the organization to the challenges of the future. The HR Strategy has to reflect the expected development on the job market and the shifts in products and services. The HR Strategy should describe the transition from NOW to THEN.