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How to Formulate a Human Capital Strategy
1- Identify the Goals Your Human Capital is to be Aligned With
Because the human capital strategy springs from the overall business strategy, the first step in formulating it is to take an overall look at the vision, mission, and values of the company. Now that you have formulated or revisited these and have ensured that they really reflect what you want to achieve, it’s time to start looking at the processes and people that will make it happen.
2- What are the Processes or Tasks That Directly or Indirectly Contribute to Business Goals?
Begin with the processes, and if you are re-engineering business systems, try to start with a blank slate. How do the processes you have identified within your business work towards your business goals? Which are core processes and which are vital support processes without which the core processes will be unable to function? Are these processes as efficient as they could be?
3- What Key Performance Areas and Indicators Would be Used to Measure Performance?
Now that you know the “what,” it’s time to look at the “how.” What would key performance indicators show that each department, and each person in each department or process area, is working towards your business strategy? At this stage of the process, you should not be thinking about existing employees and their skill-sets, but remain focused on the tasks themselves. What would be the ideal case scenario? What skills and traits should employees performing each role have?
4- Who Will Fill the Posts Effectively?
You now have a profile indicating what type of person would fit into each role, and you’re ready to either begin recruiting or assigning existing staff to positions. If you are working with existing employees, you may find that there are skills gaps. This is no reason for despair. It is an opportunity to start devising the recruitment strategies or individual career path plans that will help you to reach your business goals through your human resources.
