Dear Colleagues:
We know most of you are working on closing out 2009 and developing
your strategy and tactics for 2010. For most of us caught up in the whirl
of daily business activities the year end sometimes represents one of the
few times that we actually set aside time to plan for rather than react to
business activities.
As we look back on the research we’ve compiled for 2009 I note three
major themes that are characteristic of high performing businesses which
are directly related to business planning.
First: Connecting HR activities and resources to company strategy to ensure
there is a clear line of sight between business objectives and HR activities.
As you look for opportunities to grow your bottom line in 2010 consider
auditing your HR activities as to their effectiveness in delivering your
company’s strategy and creating a strategic advantage for the business.
Second: Designing HR programs around the bottom line costs of doing
business. For example identify the business costs (i.e. cost of goods sold)
then identify the underlying HR issues that financially affect the bottom line
(i.e. turnover, high rework/scrap rates, accidents, poor up selling, poor
customer service) measure these costs metrically then create solutions that
reduce these financial pressure.
Third: Leading the organization by connecting each employee to the organizations success. Executives in the organization who are excellent managers London of their human capital achieve better financial and operating
results than those who are not. Thus, businesses that develop the
management capabilities of their leadership team create a competitive
advantage for their organization which results in improved financial metrics.
It is said in Ireland, “If you don’t know where you’re going, any road will
take you there”. The business outlook for 2010 however, Off will be demanding and financially penalize organizations that amble along without
focus. The good news is that the three suggestions above provide a good
start to thinking about using HR activities to increase your financial
performance for 2010.
Kind regards,
Janet Walsh
(From Paradise Valley, Montana)
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