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Align HR Strategy With Business Strategy - Worked Example

Author: XpertHR Editorial Team

The HR function affects the way all other departments within an organization operate. So when HR's strategy is aligned with the organization's business strategy, the organization has a better chance of achieving its mission and goals.

To determine an organization's long-term objectives and establish the goals necessary to achieve those objectives, HR professionals should engage in strategic planning - making an in-depth analysis of current and anticipated conditions that may affect the organization's ability to achieve its mission.

This Worked Example shows how an HR professional may use strategic planning to:

  • Anticipate business needs; and
  • Align HR strategy accordingly.

Although business strategies and plans are necessarily complex, this Worked Example only focuses on one core HR function - workforce planning - because similar analysis and assessment is required for each element of a strategic plan.

In each of the following three scenarios, the organization's strategic plan includes expansion into a new area - data security - within two years.  In discussions with the Chief Human Resources Officer (CHRO), the Chief Executive Officer (CEO) has stated, "I feel we're going to need a lot of people to make this work."

Although the business strategy and executive expectation is the same in each of the three scenarios, the unique circumstances of each organization results in substantially different HR strategies. Nevertheless, each one successfully aligns with the organization's strategic plan.