Canadian HR Reporter

CANADIAN HR REPORTER April 20, 2015 10 EXECUTIVE SERIES Don't forget the other 'c' with strategy– clarity When it comes to discussions around peo- ple and strategy, commonly used phrases include capability, culture, competency and talent management. But often there is a lack of clarity on what these phrases mean. is lack of clarity can create confusion when organizations then attempt to link strategy to people management. Below are some thoughts and questions that may be helpful in navigating the maze. Strategy comes before people. While a strategy may evolve over time to leverage the talents of a workforce, the core components of mission, vision, values and val- ue proposition are the foundation of an organization. Are people, internal or external to the orga- nization, clear on what the orga- nization is about? Do functional strategies reflect the direction of the organization? And, if not, why not? Capabilities can be executed to support success. ese may be specific to one functional area or may require the ability to co-ordi- nate across two or more areas for a specific result. What are the or- ganization's strategic capabilities? What must it excel at for success and sustainable growth? Does development of an iden- tified capability reside primarily in one functional strategy or is it across functional strategies? If more than one, how are these co- ordinated and what are the syner- gies created? Culture is "how" an organi- zation operates. It reflects the real values of the organization, which may or may not align with the stated values. Culture sup- ports strategy and capabilities by providing an environment where such things as information shar- ing and teamwork, drive for suc- cess or tolerance for highly vari- able behaviour are considered the norm. Culture, to the extent it is specific and required for success of the strategy, may in fact be a capability. For example, where technological innovation is criti- cal to the organization's success and sustainability. Does the culture reflect the values or are the values just some- thing posted on the wall? What is the real evidence to support that? Is the evidence consistent, mea- surable and pervasive or anec- dotal? Are there easily understood linkages between mission, vision, strategy and culture? Competency is probably the most misunderstood term of all. Depending on its usage, compe- tency can refer to a technical pro- ficiency or skill, an attribute such as empathy or drive for results, a specific type of behaviour such as listening or influence, or a cluster of different skills and behaviours with a specific focus like meet- ing customer needs or managing projects. Each meaning is valid and not mutually exclusive as competencies may build on each other or be combined. ere may be confusion about which competencies apply across the organization and which are af- filiated with a specific role. Often those that go across the organiza- tion relate to values and culture or to leadership. In addition, there are critical roles where specific competencies are directly related to success and results in the role. How does the organization use the phrase competency? If there are multiple usages of the phrase, is it clear and understood how the different types of competencies work together? What competencies apply across the organization — to all roles? Are there too many to be re- alistic? Which ones really restate a value and are table stakes to being part of the organization? Which ones relate to driving a specific culture? Which ones primarily apply to managers and leaders? What are the critical roles for the organiza- tion? Are the competencies con- tributing to high performance in each role understood? Talent management is not a single process. Talent manage- ment is an umbrella that includes analysis of the fit of the workforce to meet strategy, identification of critical roles and competencies, recruiting and staffing approach- es to build the workforce, assess- ment and development processes for talent within the organization, deployment and re-deployment strategies for flexibility or mo- bility, and thoughtful, effective exit strategies for poor fit in the organization. Is the organization manag- ing talent in a comprehensive way aligned to its overall busi- ness strategy? What are the key HR processes in place and which ones need to be developed or rethought? Do the various ap- proaches and processes, individu- ally and in combination, contrib- ute to: development of the desired culture, demonstration of values, and delivery of the organization's strategy and value proposition? e critical point is to be clear about what each of these mean and how they relate to each other to reduce confusion and increase focus on moving the organization along its business strategy. Karen Gorsline is SCNetwork's lead commentator on strategic capability and leads HR Initiatives, a consult- ing practice focused on facilitation and tailored HR initiatives. Toronto- based, she has taught HR planning, held senior roles in strategy and poli- cy, managed a large decentralized HR function and directed a small busi- ness. She can be reached at gorslin@ pathcom.com. Karen Gorsline Strategic Capability

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