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“It's not a debate, but organisations need to make HR strategic. Rebuilding new processes needs cross-checking the processes and management of the organisation. They should differentiate between competition strategy and competition parody. The world has changed, but for some reason, HR hasn't. If an HR doesn't know the art of possible, they won't get there ever,” said Brian Sommer, Founder and Owner TechVentive while delivering a masterclass session on ‘Prepping for the next HR Revolution: How to Get Your Strategy Right’ at TechHR India 2023.
In this session, Sommer highlighted the key areas of making businesses HR strategic, along with the challenges and pitfalls that come along the way.
In the realm of HR strategy, it's crucial to understand that merely adopting new tactics or software is not enough. While some companies fall into the trap of treating tactical decisions as strategic moves, this approach fails to generate meaningful outcomes. True HR strategy involves charting a course towards new and valuable outcomes, often requiring a shift in perspective. Sharing a few examples, Sommer further explains, “Commonly, I've encountered companies that mistake tactical decisions or strategic ones:
He remarked, “Often, initial HR strategies are positioned similarly. Strategy cannot be taken right off a shelf; it must be unique to your organisation. Merely adopting practices that mirror competitors won't yield a competitive advantage. Instead, strive for bold policies that resonate with your organization's identity.”
Key insights:
Survey your organisation's perception: Sommer asked the audience whether they view HR as strategically valuable by saying, “Often, HR is seen as operational, not strategic. This gap needs to be addressed to demonstrate value to external stakeholders and recruits. It's not just about HR's perception of value; it's about external recognition”
Surveying the phases of explosive growth, mergers, or divestitures that can expose weaknesses of an organisation are the key factors to assess the organisation’s readiness for change. Moreover, these vulnerabilities must be rectified before embarking on a strategic transformation of HR. Meanwhile, addressing any integration issues, procedural gaps, or technology shortcomings along the transition.
He concluded, “Remember, a true HR strategy goes beyond tactics and embraces a holistic, transformative perspective. By shifting from 'tactical to strategic', HR can drive valuable outcomes and foster long-term success.”
Read the full report here.