Overview Page

CEB Ignition™ Guide to

Strategic Planning for
Human Resources
CEB Corporate Leadership Council ™

This six-step guide includes 22 documents that will help you: Time1: 8–12 weeks
■■ Establish strategic objectives for the function, Effort : 3–4 FTEs
2

■■ Prioritize action steps to achieve the function’s objectives, Costs3: $0

■■ Align HR initiatives with business goals, and Input: ■■ Organization
and business
■■ Build a strategic plan document. unit strategy
documents
■■ The previous
year’s strategic
plan

Plan
Step 1: Plan the strategic planning process.
1 Task, 5 Documents
Build
Step 2: Determine the implications of the business strategy for HR.
3 Tasks, 4 Documents
Step 3: Diagnose HR’s performance gaps.
4 Tasks, 2 Documents
Step 4: Determine actions to meet HR’s objectives.
5 Tasks, 7 Documents
Step 5: Communicate the strategic plan to all stakeholders.
2 Tasks, 2 Documents
Monitor
Step 6: Monitor progress on strategic objectives.
1 Task, 2 Documents

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. Get Help
3 Cost refers to the incremental expenses required for the activity, and excludes internal resources. from Peers

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Step 1

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

Step 1 of 1: 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.

Business Case
for Change
Project Outcomes Problems Addressed
Action Plan ■■ HR objectives aligned to business ■■ Misalignment between HR’s
priorities strategy and business priorities
■■ Prioritized list of strategic initiatives ■■ The strategic plan is created and
■■ Organization-wide commitment filed away, rather than being used
to HR’s strategy as a focused execution plan.

Roles
Head of HR
RACI Chart Define and finalize the function’s objectives and action plan.
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.

Before You
Download the HR Strategic Plan Template to document the key
Start
■■

components of your HR strategy. This guide provides guidance and tools

to help you populate this template.
HR Strategic
Plan Template ■■ Download the Strategic Planning Process Map. This guide helps you
execute the steps laid out in this process map.
Strategy Planning
Process Map ■■ Download the Strategy Dictionary. This guide uses standard definitions and
terminologies specified in this document.
Strategy Dictionary
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from Peers

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 STEP 1 STEP 2 STEP 3 STEP 4
Common
Pitfalls & Keys
to Success
Insular Planning Process
The planning process fails to
consider business strategy,
changes in stakeholder
expectations, and external
business conditions.
Misaligned Business and
HR Strategic Planning
Processes
Few organizations time the
business and HR strategic
planning processes to enable
each to inform the other.
False Executive “Head
Nods”
Executives often withdraw from
initial commitments in the face of
short-term priorities, ultimately
rendering the strategic plan
ineffective.
Changing Plans, Not
Behaviors
Leaders fail to engage key
managers and employees, leading
to a lack of urgency in making
progress toward strategic goals.
© 2015 CEB. All rights reserved. CLC2767715SYN 3 cebglobal.com
STEP 5 STEP 6
Engage Line Leaders
Early On
Involve line leaders in the
planning process to understand
their priorities.
Sync the HR and Business
Planning Calendars
HR should start the strategic
planning process before the
line has finalized its objectives
to ensure HR informs business
strategy and vice versa.
Align the Leadership Team
Throughout the Year
Actively manage alignment and
win buy-in across the function’s
leadership team throughout the
year.
Eliminate Legacy Behaviors
And Activities
Assist managers in eliminating
behaviors and activities that do
not support the strategy.
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from Peers
Step 2

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

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.

Your 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 that
Business Strategy HR strategy should enable.
Summary Template

2.2 Analyze the impact of external business conditions on the HR function.

External Forces Assess external environment forces (such as competitive, economic, political and
Assessment Tool regulatory, customer, and technological factors) to identify key trends that may
affect the organization and HR.

Case Study

Seagate’s Goal
Alignment Cascade

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from Peers

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 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

2.3 Identify the capabilities critical for supporting business objectives.

Capability Heat Assess the extent to which HR capabilities support business goals to identify the
Map Template 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

Case Study

Business-Integrated Talent
Management Delivery

Review Your
Progress
Success Red Flags Team
Stage-Gate Criteria Conversation
Review
■■ Meaningful dialogue Focusing on tactical What business
with line leaders on rather than strategic challenges must be
their priorities and business priorities considered in our
challenges strategic plan?
■■ A prioritized list
of HR capabilities
that support the
business’s goals

ADVICE FROM PEERS

“Do not over-focus on self-service resources at the expense of a thorough and effective
executive goal alignment process; top-level goals provide the foundation for the whole
cascade and are therefore the most important to get right first.”

Senior Executive, Technology Company

Get Help
from Peers

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Step 3

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

Step 3 of 6: Diagnose HR’s Capability Gaps

Assess the function’s capabilities and their business impact to prioritize improvement
areas.

Your Tasks
3.1 Gather feedback from line leaders on HR’s performance.
HR Business Survey or interview line leaders to understand their perspective on the function’s
Alignment Tool 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.

3.3 Assess HR’s current capabilities.

CEB Ignition ™ Self-assess the function’s effectiveness at key capabilities, and benchmark
Guide for HR it against peers to identify strengths and weaknesses.

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

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from Peers

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 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

3.4 Discuss the function’s strategic direction with your HR leadership team.
Strategy Discussion Review business priorities and brainstorm the function’s future direction
Planning Template with your HR leadership team.

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

Review Your
Progress
Success Red Flags Team
Stage-Gate Criteria Conversation
Review
Assessing impact Significant variation What is driving line
and value delivered in the function’s self- leaders’ perception of
by the function, not assessment and line our function?
merely operational leaders’ perceptions
performance indicators of strengths and
weaknesses

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from Peers

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Step 4

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

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

Objectives
Define HR objectives and the key investments needed to achieve them.

Your Tasks
4.1 Translate business goals into HR objectives.
Objectives Based on the function’s collective understanding of business goals and its own
Definition Template strengths and weaknesses, define HR objectives to support business strategy.

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
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

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from Peers

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 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

4.3 Identify broad metrics to measure the progress of the HR strategic plan.
Metrics Selection Select objective, measurable, and actionable metrics to evaluate progress against
Tool 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

Case Study

Trigger-Based Organization
Design Assessment

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

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 that might invalidate the plan.
Strategy Triggers
Template 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

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from Peers

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 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

Review Your
Progress
Success Red Flags Team
Stage-Gate Criteria Conversation
Review
■■ A prioritized list of ■■ Project sponsors try to How do we objectively
strategic initiatives force-fit initiatives to evaluate all projects
■■ Clear and actionable align with objectives and initiatives?
metrics to measure ■■ High-impact projects
progress not prioritized in the
strategic plan
■■ Metrics unclear,
complicated, or too
numerous to track
effectively

Get Help
from Peers

© 2015 CEB. All rights reserved. CLC2767715SYN 10 cebglobal.com

Step 5

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

Step 5 of 6: Communicate the Strategic Plan

to All Stakeholders
Drive alignment and commitment across the function and the organization.

Your Tasks
5.1 Build a strategy communication plan.
Communication Document the goal, frequency, and channel for communicating the strategic plan
Plan Template to various stakeholder groups.

5.2 Sequence and tailor the message to key stakeholder groups.

Strategy Finalize the strategic plan by reviewing and approving it with your CEO or
Communication executive committee. Communicate the strategic plan to business unit leaders
Guide 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

Review Your
Progress
Success Red Flags Team
Stage-Gate Criteria Conversation
Review
■■ Buy-in and ■■ Conflicting messages How do we deliver a
commitment from sent by managers consistent message
the organization’s and function leaders across the organization?
leadership team to employees
■■ Engaged and
motivated workforce
to implement
the plan

Get Help
from Peers

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Last Step

STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

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
Closing the Project
Postmortem ■■ Assess the process’s effectiveness.
Review
■■ Document lessons learned and make adjustments.
Project Tracker
■■ Get feedback from key stakeholders.

Review and Track Performance

■■ Track progress against HR objectives.
■■ 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
Resources ■■ HR Strategic Planning

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from Peers

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