ALIGNING BUSINESS AND HR STRATEGIES

In the 1990s the key is not just having the right strategy, but being able to execute, to implement the strategy having, in other words, effective operational capabilities !fefer, 1999"#$ %he main focus of this chapter is on exploring what is meant by corporate strategy and the links between that and &' strategy$ In the previous two chapters we have looked at what is meant by organisational effectiveness$ (e will start by considering approaches to strategy and then assess the implications for &' strategies$

Approaches to developing corporate strategy )ne of the key challenges for the leaders of any organisation is to provide a sense of direction and a focus for the organisation*s activities$ Ideally, strategic direction involves creating a situation in organisations where the present is being driftnet from the future, rather than simply being seen as an extrapolation from the past$ In changing times there is a greater need for clarity of business direction than in more stable times when the status +uo provides employees with guidance as to what is expected of them$ If employees are to be able contribute their skills in the most effective way in order to reali,e business aims, it helps if people know what these aims are$ !eople need to know what they are expected to do any why$ -ome organisations make clear their medium.term aspirations through vision and mission statements$ In the absence of visions, people often gain their understanding of where the organisation is going from statements about its purpose, however ill defined, from statements of business values and other broad ways of indicating what

the organisation is about and where it is heading$ In some organisations, the business direction is made clear in strategic imperatives and the business plan$ )f coruse, coporatre stratgies