CEB Guide To Strategic Planning For Human Resources

CEB Ignition™ Guide to
Strategic Planning for

Human Resources
CEB Corporate Leadership Council™
This six-step guide includes 21 documents that will help you: Time:1 8–12 Weeks
■■ Establish strategic objectives for the function, Effort: 2
3–4 FTEs
■■ Prioritize action steps to achieve the function’s objectives, Input: ■■ Organization
and business
■■ Align HR initiatives with business goals, and
unit strategy
■■ Build a strategic plan document. documents
■■ The previous
year’s strategic
plan
1
Time refers to the total duration for completing the activity end to end.
2
Effort refers to the total number of FTEs required to execute the activity.
© 2016 CEB. All rights reserved. CLC166038PR cebglobal.com

Download this CEB Ignition™ Guide and all featured tools at cebglobal.com/member/corporate-leadership-council.
Overview
Plan
1. Plan the Strategic Planning Process CEB Ignition™ Project Manager (.xls)
HR Strategic Plan Template (.ppt)
Strategy Dictionary (.ppt)
Build
2. Determine the Implications of the Business Strategy for Human Resources
2.1 Engage with line leaders to understand the business strategy Line Leader Interview Guide (.doc)
and objectives. Business Strategy Summary
Template (.doc)
2.2 Analyze the impact of external business conditions on the HR External Forces Assessment Tool
function. (.xls)
2.3 Identify the capabilities critical for supporting business objectives. Capability Heat Map Template (.xls)
3. Diagnose HR’s Capability Gaps

3.1 Gather feedback from line leaders on HR’s performance. HR Business Alignment Tool (.pdf)
3.2 Collect data on key talent and organizational metrics. HR Metrics Generator and Review
Template (.xls)
3.3 Assess HR’s current capabilities. CEB Ignition ™ Diagnostic for HR
(.pdf)
3.4 Discuss the function’s strategic direction with your HR leadership Strategy Discussion Planning
team. Template (.ppt)
4. Determine Actions to Meet HR’s Objectives

4.1 Translate business goals into HR objectives. Objectives Definition Template
(.doc)
4.2 Identify key initiatives and/or projects to address HR objectives. Initiative Prioritization Tool (.xls)
4.3 Identify broad metrics to measure the progress of the HR strategic Metrics Selection Tool (.xls)
plan.
4.4 Determine the resource investment needed for plan execution. Project Cost Estimation Template
(.xls)
4.5 Assess key execution risks, and set triggers for strategy reviews. Risk Assessment Tool (.xls)
Strategy Triggers Template (.xls)
5. Communicate the Strategic Plan to All Stakeholders

5.1 Build a strategy communication plan. Communication Plan Template (.xls)
5.2 Sequence and tailor the message to key stakeholder groups. Strategy Communication Guide
(.ppt)
Monitor
6. Monitor Progress on Strategic Objectives CEB Ignition™ Project Reviewer
(.xls)
Project Tracker (.xls)
Note: Tasks marked with a gold flag are items that CEB has identified as essential for the successful execution of this project.
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6
Step 1 of 6: Plan the Strategic Planning

Process
Lay the groundwork for the strategic planning process and ensure all participants
understand their responsibilities, process timeline, and expected outcomes.
Project
Objectives
Project Outcomes Problems Addressed
■■ HR objectives aligned to business ■■ Misalignment between HR’s
priorities strategy and business priorities
■■ Prioritized list of strategic ■■ The strategic plan is created
initiatives and filed away, rather than
■■ Organization-wide commitment being used as a focused
to HR’s strategy execution plan.
Roles and
Responsibilities
Head of HR
CEB Ignition™ Define and finalize the function’s objectives and action plan.
Project Manager
(.xls) CEO/Executive Committee
Approve the function’s strategy and key investments.
Business Unit Leaders
Provide input on business strategy and the function’s performance.
Other Functional Leaders
Provide input on the function’s performance.
Provide process- and activity-level input.
Direct Reports to Head of HR
Build project proposals and estimate resource requirements.
HR Managers
Conduct planning analyses and provide process- and activity-level input.
Get Help
from Peers
3
Before
You Start ■■ Download the HR Strategic Plan Template to document the key
HR Strategic Plan components of your HR strategy. This guide provides guidance and tools to
Template (.ppt) help you populate this template.
Strategy ■■ Download the Strategic Planning Process Map. This guide helps you execute
Dictionary (.ppt) the steps laid out in this process map.
■■ Download the Strategy Dictionary. This guide uses standard definitions and
terminologies specified in this document.
Common
Pitfalls & Keys
to Success
Insular Planning Process Engage Line Leaders
Early On
The planning process fails to Involve line leaders in the planning
consider business strategy, changes process to understand their
in stakeholder expectations, and priorities.
external business conditions.
Misaligned Business and HR Sync the HR and Business

Strategic Planning Processes Planning Calendars
Few organizations time the HR should start the strategic
business and HR strategic planning planning process before the line has
processes to enable each to inform finalized its objectives to ensure HR
the other. informs business strategy and vice
versa.
False Executive “Head Nods” Align the Leadership Team

Throughout the Year
Executives often withdraw from Actively manage alignment and
initial commitments in the face of win buy-in across the function’s
short-term priorities, ultimately leadership team throughout the
rendering the strategic plan year.
ineffective.
Changing Plans, Eliminate Legacy Behaviors

Not Behaviors And Activities
Leaders fail to engage key Assist managers in eliminating
managers and employees, leading behaviors and activities that do not
to a lack of urgency in making support the strategy.
progress toward strategic goals.
Get Help
from Peers
4
Step 2 of 6: Determine the Implications of

the Business Strategy for Human Resources
Understand business goals and identify the HR capabilities required to support them.
Tasks
2.1 Engage with line leaders to understand the business strategy
Line Leader and objectives.
Interview Guide Interview executives and business leaders to understand the business goals
(.doc) that HR strategy should enable.
Business Strategy
Summary
Template (.doc)
2.2 Analyze the impact of external business conditions on the HR

External Forces function.
Assessment Tool Assess external environment forces (such as competitive, economic, political
(.xls) and regulatory, customer, and technological factors) to identify key trends that
may affect the organization and HR.
2.3 Identify the capabilities critical for supporting business

Capability Heat objectives. Essential
Map Template Assess the extent to which HR capabilities support business goals to identify
(.xls) the most important capabilities.
Advice from Peers
“It’s typical of our department to be reactive to what the business is doing. By

proactively focusing on high-value capabilities, we have increased our profile with the
lines of business. We are challenging traditional thinking, pushing back on low-value
activities, and providing insightful information and actionable ideas.”
Senior Executive, Financial Services Company
Note: Tasks marked with a gold flag are items that CEB has identified as essential
Get Help
for the successful execution of this project. from Peers
5
Related
Resources ■■ Case Study: Goal Alignment Cascade (Seagate)
■■ Case Study: Business-Integrated Talent Management Delivery
(Lion Nathan Ltd)
How to Set Up
for Success
Success Criteria Red Flag
■■ Meaningful dialogue with line Focusing on tactical rather than

leaders on their priorities and strategic business priorities
challenges
■■ A prioritized list of HR capabilities
that support the business’s goals
Get Help
from Peers
6
Step 3 of 6: Diagnose HR’s Capability Gaps

Assess the function’s capabilities and their business impact to prioritize improvement
areas.
Tasks
3.1 Gather feedback from line leaders on HR’s
HR Business performance. Essential
Alignment Tool Survey or interview line leaders to understand their perspective on the
(.pdf) function’s performance and improvement areas.
3.2 Collect data on key talent and organizational metrics.

HR Metrics Identify and collect data on the key talent and organizational metrics that will
Generator and help you determine where HR is effectively supporting the organization and
Review Template where it can provide better support.
(.xls)
Get Help
7
3.3 Assess HR’s current capabilities.

CEB Ignition ™ Self-assess the function’s effectiveness at key capabilities, and benchmark
Diagnostic for HR it against peers to identify strengths and weaknesses.
(.pdf)
Advice from Peers
“The Functional Maturity Diagnostic helped us refocus on priorities that had lost
momentum—one of these was a competency model for the compensation team that had
stalled. Diagnostic results related to managing the compensation team motivated us to
implement improvements before the upcoming performance review cycle
Tim McKeown
Vice President, Total Rewards and Policy, American Red Cross
CEB’s HR Functional Activity Map

Manage
Manage Manage Enable
Recruit New Develop Employee Manage the
Workforce Existing Organizational
Employees Employees Rewards and Function
Strategy Employees Effectiveness
Benefits
Identify and Analyze L&D Manage Manage

Design Build HR
Manage Source Talent Needs and Employee Organizational
Compensation Strategic Plans
Competencies Investments Performance Design
Design and Manage Manage Manage HR

Assess and Hire Deliver
Review Talent Build L&D Employee Organizational Functional
Talent Compensation
Solutions Engagement Development Design
Acquire Manage
Develop a Implement L&D Manage Manage HR
Critical Talent Mobility and Design Benefits
Workforce Plan Solutions Change Staff
Segments Career Paths
Develop
Recruit Manage Manage HR
Manage EVP Critical Talent Deliver Benefits
Executives Succession Technology
Segments
Manage High Build Total

Manage Talent Develop Manage the HR
Potential Rewards
Analytics Leaders Budget
Employees Strategy
Manage
Partner with Compensate Manage HR
Diversity
the Business Executives Vendors
Inclusion
Interact with Manage

the CEO & Employee
Board Relations
Source: CEB analysis.
Get Help
from Peers
8
3.4 Discuss the function’s strategic direction with your HR

Strategy leadership team.
Discussion Review business priorities and brainstorm the function’s future direction
Planning Template with your HR leadership team.
(.ppt)
Advice from Peers
“Before the meeting, it is important to familiarize participants with key issues and
discussion objectives so that they come prepared. We also focus on creating an open
and transparent atmosphere during the meeting so that contrarian viewpoints can be
openly expressed.”
Senior Executive, Financial Services Company
How to Set Up
for Success
Success Criterion Red Flag
Assessing impact and value Significant variation in the function’s

delivered by the function, not self-assessment and line leaders’
merely operational performance perceptions of strengths and
indicators weaknesses
Get Help
from Peers
9
Step 4 of 6: Determine Actions to Meet HR’s

Objectives
Define HR objectives and the key investments needed to achieve them.
Tasks
4.1 Translate business goals into HR objectives.
Objectives Based on the function’s collective understanding of business goals and its own
Definition strengths and weaknesses, define HR objectives to support business strategy.
Template (.doc)
Advice from Peers
“The most important thing in a goal alignment process is the rigor that goes into
articulating the goal to begin with. Having alignment on paper is meaningless unless
you’ve defined your objectives in a specific, measurable, and actionable way.”
SVP HR, Technology Company
4.2 Identify key initiatives and/or projects to address HR objectives.

Initiative Ask the function’s leadership to develop proposals for initiatives to plug
Prioritization Tool capability gaps and meet HR objectives. Prioritize active initiatives and new
(.xls) proposals on criteria such as strategic fit and execution capabilities.
Advice from Peers
“A major reason for strategy execution failure is not clarifying what you should stop
doing. We focus on identifying the activities, projects, and tasks that are no longer
necessary. This helps our team direct their full and undivided attention to new priorities
and initiatives.”
Project Manager, Financial Services Company
Get Help
from Peers
10
4.3 Identify broad metrics to measure the progress of the HR

Metrics Selection strategic plan. Essential
Tool (.xls) Select objective, measurable, and actionable metrics to evaluate progress
against objectives.
Advice from Peers
“By enabling better business interpretation of HR metrics, we are able to contribute

more effectively to business decision making and can identify areas where action needs
to be taken.”
Poul Utzon
Vice President, Corporate and People Organization,
Organizational Development and Strategy Unit, Novo Nordisk
4.4 Determine the resource investment needed for plan execution.

Project Cost Estimate the capital and operational resources required to successfully deliver
Estimation the plan.
Template (.xls)
4.5 Assess key execution risks, and set triggers for strategy reviews.
Risk Assessment Identify and prioritize high-impact risks, and set triggers for any events
Tool (.xls) that might invalidate the plan.
Strategy Triggers
Template (.xls) Advice from Peers
“A key risk that has impacted our ability to implement the plan effectively in the past is
that fundamental staff behaviors and habits do not change in line with a new strategy.
This is something that we now consciously evaluate as part of day-to-day execution.”
Senior Executive, Technology Company
Related
Resource
Case Study: Trigger-Based Organization Design Assessment (Dupont)
How to Set Up
for Success
Success Criteria Red Flags
■■ A prioritized list of strategic ■■ Project sponsors try to force-fit

initiatives initiatives to align with objectives
■■ Clear and actionable metrics to ■■ High-impact projects not
measure progress prioritized in the strategic plan
■■ Metrics unclear, complicated, or
too numerous to track effectively
Get Help
11
Step 5 of 6: Communicate the Strategic Plan

to All Stakeholders
Drive alignment and commitment across the function and the organization.
Tasks
5.1 Build a strategy communication plan.
Communication Document the goal, frequency, and channel for communicating the strategic
Plan Template plan to various stakeholder groups.
(.xls)
5.2 Sequence and tailor the message to key stakeholder

Strategy groups. Essential
Communication Finalize the strategic plan by reviewing and approving it with your CEO or
Guide (.ppt) executive committee. Communicate the strategic plan to business unit leaders
first, followed by the function’s leadership team, and finally to all staff members.
Advice from Peers
“It is important to find the few employees who will contribute most to strategy
implementation and gain their commitment and buy-in for the new strategy.”
Senior Executive, Chemicals Company
How to Set Up
for Success
Success Criteria Red Flag
■■ Buy-in and commitment from the Conflicting messages sent by

organization’s leadership team managers and function leaders to
■■ Engaged and motivated employees
workforce to implement
the plan
Get Help
from Peers
12
Step 6 of 6: Monitor Progress on Strategic

Objectives
Upon completion of the strategic plan, measure the progress toward objectives, and
adapt the function’s strategy as business conditions change.
Review Your
Performance ■■ Assess the process’s effectiveness.
CEB Ignition™ ■■ Document lessons learned and make adjustments.
Project Reviewer
(.xls)
■■ Get feedback from key stakeholders.
■■ Track progress against HR objectives.
Project Tracker
(.xls) ■■ Track success of initiatives and projects.
■■ Track execution risks and make course corrections.
Keys to
Continued
Success
Eliminate Risk Aversion as a Reason for Inaction
Eliminate misconceptions about acceptable risks that could prevent the
function from executing a new strategy.
Invalidate Alternative Paths and Remove All Doubt

To discourage any potential resistance stemming from a belief that business
leaders did not explore other options, elaborate on what executives decided
not to pursue.
Kill Underperforming Projects Quickly

Ask project owners to define, well in advance, a list of decision factors that
will guide project discontinuation decisions.
Related
Resource
Topic Center: HR Strategic Planning
Get Help
from Peers
13

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CEB Ignition™ Guide to

Strategic Planning for

© 2016 CEB. All rights reserved. CLC166038PR cebglobal.com

3. Diagnose HR’s Capability Gaps

4. Determine Actions to Meet HR’s Objectives

5. Communicate the Strategic Plan to All Stakeholders

Step 1 of 6: Plan the Strategic Planning

Misaligned Business and HR Sync the HR and Business

False Executive “Head Nods” Align the Leadership Team

Changing Plans, Eliminate Legacy Behaviors

Step 2 of 6: Determine the Implications of

2.2 Analyze the impact of external business conditions on the HR

2.3 Identify the capabilities critical for supporting business

Advice from Peers

“It’s typical of our department to be reactive to what the business is doing. By

■■ Meaningful dialogue with line Focusing on tactical rather than

Step 3 of 6: Diagnose HR’s Capability Gaps

3.2 Collect data on key talent and organizational metrics.

3.3 Assess HR’s current capabilities.

Vice President, Total Rewards and Policy, American Red Cross

CEB’s HR Functional Activity Map

Identify and Analyze L&D Manage Manage

Design and Manage Manage Manage HR

Manage High Build Total

Interact with Manage

Source: CEB analysis.

3.4 Discuss the function’s strategic direction with your HR

Assessing impact and value Significant variation in the function’s

Step 4 of 6: Determine Actions to Meet HR’s

4.2 Identify key initiatives and/or projects to address HR objectives.

Advice from Peers

4.3 Identify broad metrics to measure the progress of the HR

Advice from Peers

“By enabling better business interpretation of HR metrics, we are able to contribute

4.4 Determine the resource investment needed for plan execution.

■■ A prioritized list of strategic ■■ Project sponsors try to force-fit

Step 5 of 6: Communicate the Strategic Plan

5.2 Sequence and tailor the message to key stakeholder

Advice from Peers

■■ Buy-in and commitment from the Conflicting messages sent by

Step 6 of 6: Monitor Progress on Strategic

Invalidate Alternative Paths and Remove All Doubt

Kill Underperforming Projects Quickly

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