HR as a Strategic Business Partner

Prof Sattar Bawany 

Strategy defines what we are going to do, why we are doing it, and how we will know we are done.

What business will we be in? Who are our customers and what are their needs? How will we reach them? 

 

What products and services will we offer? How will we compete – by low price or by differentiating in other ways? How will we create value for customers, investors, and employees?

 

There are many faces of business strategy, ranging from very formal and explicit planning processes

to informal, implicit, shared understanding of future direction and priorities. Strategy may emphasize

external competitive analysis and positioning or, as is the current emphasis in many companies, the

development and leveraging of internal resources and capabilities to gain and sustain a competitive

advantage. Strategy may be very aggressive, calling for radical business repositioning and transformation, or it may be relatively passive, adapting to changes in the business environment as

they unfold.

 

Most discussions of our strategic partner role focus on human resource implications of business

strategy – aligning people with strategies to enable strategy implementation. We recruit, develop, and

retain required talent. We build organizational capabilities. We communicate performance

expectations and goals, and we provide rewards for results achieved. We adapt human resource

practices to support new business priorities and to facilitate strategic change.

 

Business strategy charts a course of action designed to achieve an advantageous and sustainable market position (market share, margin/profitability, product or technical leadership, etc.). The strategic management process includes strategic analysis, strategy formulation, and strategy implementation.

 

Great human resource strategies are developed within the context of this ongoing strategic management process.