The Strategic HR is based on the on the deep knowledge of the organization, processes, procedures and the business strategy. But it needs a strong link to the critical success factors, which can enable the HRM Function to measure its own success on the way of implementing the Strategic HR in the organization.
It is the task of the HRM Function’s Management Team to select the correct set of critical success factors and to define the correct KPIs to measure their development. The management team of Human Resources has to select the critical success factors, which are in the direct influence of the HRM Functions not to blame the rest of the organization for not meeting the defined goals.
The HRM Function Management Team usually selects the critical success factors, which have a common roots in the business strategy and their improvement has a direct impact to the profits of the organization, by increasing the income or by decreasing the costs.
The common best practice in the Strategic HR is to select the critical success factors from the following list:
- High Performance Corporate Culture
- Strategic Planning
By developing the skills and abilities of the HRM Function employees the HR Management Team can assure the highest achieved benefits for the organization and the measurement of the accomplishment can be pretty accurate.
The critical success factors have to be defined in the detail as the HR Employees and also the line management can make a proper view on the measure as the measure “Leadership” can mean different things to the people in the organization.
The Critical Success Factors in the detail
The Leadership Critical Success is one of the most important aspects to implement in the effort of introducing the Strategic HR Approach in the organization. The Leadership Critical Success Factor is about the work of the HRM Function with the managers to see the workforce in the organization as the key asset of the organization, which needs its investments and the development is a key to the success in the future. The Leadership Critical Success Factor needs a very careful definition as it is very easy to make the definition in the negative term, but to allow the management to implement this factor, it has to be defined positive way. The Leadership Critical Success Factor defines how the organization will approach its employees and work on the human capital development.
The Talents Critical Success Factor is about movement from the HRM Function servicing as the sourcing supporting function to deliver the best potential candidates to hire to the support unit helping to identify the gaps in the organization with right retention and development initiatives. The Talents Critical Success Factor is a bit controversial factor as it divides employees into several group and just one group of employees is a receiver of huge investments into human capital, which can bring a bit of a tension to the organization. Generally, the organization does not have money enough to develop all of its employees and the investment must be protected.
High Performance Corporate Culture
The High Performance Corporate Culture is about a transfer of the responsibilities from the management levels to the individual employees and supporting employees to act individually, but with the mind of the business goals of the organization. On the other hand, the HRM Function has to develop new performance management system, which support the direct link between the individual performance and the performance of the whole organization.
The Strategic Planning Critical Factor is about movement from the reaction to the business objectives and the following planning activities to the proactive planning in the organization. The planning must be organized around the major business initiatives and the HRM Function has to follow the strategic tasks defined by the Top Management of the organization. This critical success factor looks easy to implement in the Strategic HR, but it takes a lot of effort from the HRM Function.