Rule 4: Relevance II

The Relevance Rule – Part II:  Align All Human Resource Strategies

Added to the requirement to align organization line of business process initiatives and activities is the need to align enterprise-wide human resource-related strategies.

One of the circumstances that most significantly disable successful Enterprise Performance Management is the dis-integration of human resource strategies and implementation across the enterprise.

For most organizations, recruiting, hiring, salary administration and compensation, and legal and regulatory employer compliance are administered by centralized Human Resources departments; while performance planning, coaching, recognition, and performance incentives are managed by separate field-level line-of-business units (i.e. Retail Division, Manufacturing Division, etc.).

The challenge with the set-up of this “conventional wisdom” approach is that, from the workforce’s perspective, they actually must serve (at least) two masters: one that controls the purse, the other that controls the money in it, neither of which always agree and coordinate.  This, of course, makes many human resource guidelines functionally Irrelevant and create tremendous levels of workforce Uncertainty, both of which diminish workforce engagement, motivation and success.

The resolution lays in formalized and regular communication and coordination between all parties that impact human resource strategies, processes and procedures in any way.  To optimize the Relevance to enterprise and workforce performance, rigorously and comprehensively standardize across the enterprise:

  • The terminology used: what are the very specific company-wide definitions for the words “performance plans”, “evaluations”, “coaching”, “expectations”, “goals”, “incentives”, et. al.
  • The integration/coordination of the timing and frequency of Enterprise Performance Management processes and events: when is it “coaching”, when is it a “performance evaluation”, and when is it “performance planning”, etc.?
  • The interaction between back-office administrative personnel and front-line business unit supervisors: who defines incentive budgets, who defines the goals that drive incentive results, etc.?

Aligned human resource strategies and their consistent execution enables organization integration that is vital to Performance Management success.

# # #

>>> Rule 5