1. Aligning Human Resources
University of Budapest MBA
Visiting Professor Program
Gary Wheeler, SPHR, GPHR, CCP, CBP

2. Objective
• How to implement an HR
strategy that is aligned to the
overall business strategy
• HR Competencies
• HR best practices
• Case study of HR as a strategic
partner
Gary Wheeler, The Virtual HR Director, LLC

3. Business Background
• Restaurant Manager & Area Manager
 Shoney’s Big Boy Enterprises
 Pizza Hut, Inc.
• United Parcel Service
 Industrial Engineering, Operations
and Human Resources
 District Human Resources Manager:
 Central Tex - San Antonio, Texas
 North Ohio - Cleveland, Ohio
 West Long Island - Brooklyn, Queens, Bronx,
Westchester, NY
Gary Wheeler, The Virtual HR Director, LLC

4. Education
• University of Maryland University College
– B.S. Human Resources
– Master’s Business Administration (MBA)
Gary Wheeler, The Virtual HR Director, LLC

5. Agenda
• Evolution of HR
• Why HR?
• HR Competency Model
• Developing an HR Strategy
• Sysco Foods Case Study
(video)
• Best Practices
• Marcus Buckingham (video)
Gary Wheeler, The Virtual HR Director, LLC

6. Opportunity
• Ask questions
• Clarify any myths
• Gain a better understanding
of U.S. corporations
• Share some of your thoughts
and ideas
Gary Wheeler, The Virtual HR Director, LLC

7. Tell Me About You
• First Name
• Your Company
– Local
– Regional
– Global
• Does your company do
business in the U.S.
• Have you ever traveled to the
U.S.
Gary Wheeler, The Virtual HR Director, LLC

8. A Few of Questions
• Do you have an HR
department?
• What does HR do?
• Are you in HR?
• Do you want to be in HR?
• Certificate?
Gary Wheeler, The Virtual HR Director, LLC

9. Curious
• How many of you would like to
get rid of HR?
Gary Wheeler, The Virtual HR Director, LLC

10. Interview Questions Quiz
• What country were you born
in?
• Are you married?
• How many kids do you have?
• Do you have a car?
• How old are you?
• What year did you graduate
from high school?
• Do you have a handicap?
Gary Wheeler, The Virtual HR Director, LLC

11. Should HR Executives
Understand your company’s?
• Project management
• The balance sheet
• The income statement
• Financial ratios
• Revenue and profit projections
• Risk assessment
• The company’s value proposition
• Supply chain management
Gary Wheeler, The Virtual HR Director, LLC

12. Historically HR is about People
Gary Wheeler, The Virtual HR Director, LLC

13. Evolution of HR
• Pre 1970’s
– Industrial Relations
• Workers
• Health and Safety
– Accounting
• Compensation
• Benefits
• Administration
• Personnel Activities
Gary Wheeler, The Virtual HR Director, LLC

14. Evolution of HR cont.
• Human Resources
– Strategic Business Partner
– Employment & Workforce
Planning
– Employee Relations
– Compensation and Benefits
– Learning and Development
– Health and Safety
– Administration
– Employee Services
Gary Wheeler, The Virtual HR Director, LLC

15. Why HR?
• Environmental factors
• Business trends
• Stakeholder expectations
Gary Wheeler, The Virtual HR Director, LLC

16. Changes in Business
• Regulatory change has
resulted in deregulation and
tariff reductions
• Technological advances
• The Internet
• Lower transportation costs
Gary Wheeler, The Virtual HR Director, LLC

17. Business Trends
• Globalization
• Competition
• Note:
• The next ten slides from author Dave Ulrich
Gary Wheeler, The Virtual HR Director, LLC

18. Shareholder Expectations
• Employee retention
• Reputation management
• Customer loyalty
• Shareholder returns

19. Organizational Capabilities
• Productivity costs
• Speed
• Service
• Mergers, acquisitions, alliances
• Innovation
• Collaboration /synergy
• Branding
• Quality

20. HR Competency Model

21. Strategic Contribution
• Culture management
• Fast change
• Strategic decision making
• Market-driven connectivity

22. Personal Credibility
• Effective relationships
• Achieving results
• Personal communication

23. HR Delivery
• Staffing
• Development
• Organization structure
• HR measurement
• Legal compliance
• Performance management

24. Business Knowledge
• Value chain knowledge
• Value proposition knowledge
• Labor knowledge

25. HR Technology
• HR technology

26. HR Strategy
An image of the desired
future / inspirational &
aspirational Vision
A clear and
compelling goal Mission
Needs/wants to Goals
achieve
The plan by which the goals
and mission will be achieved Strategies
Tactical / operational plans Initiatives
to implement the strategy
Gary Wheeler, The Virtual HR
© Copyright Human Resource Business
Director, LLC Partner Consultant 2005

27. Strategic Planning Process
Analyze and
Assess
prioritize strategic
External
options and develop
Environment
a vision
Evaluate Analyze Develop
Initiate Finalize
Internal Strategic Implementation
Project Strategy
Environment Options Plan
Conduct
Stakeholder
Surveys
Complete data
Collection and analysis

28. Developing an HR Strategy
• Cross-functional team
• Company vision statement
– HR vision statement
• Company mission
– HR mission statement
• Company strategic
imperatives
– HR strategic imperatives
Gary Wheeler, The Virtual HR Director, LLC

29. HR Metrics
• Organization metrics
– HR metrics aligned to improve
organization goals
– HR metrics are a part of line
management metrics
– Measure outcomes not just
activities
– Measures should equate to
dollars
Gary Wheeler, The Virtual HR Director, LLC

30. Metric Examples
• Retention or turnover
• Employee benefit costs
• Employee satisfaction survey
• Injury rates or frequencies
• Customer complaints
• % Performance targets met
• Return on training investment
• Training costs
Gary Wheeler, The Virtual HR Director, LLC

31. Balanced Score Card
• Financial
– Retention or turnover
– Employee benefit costs
• People
– Employee Satisfaction
– Injury rates of frequency
• Customer
– Costumer complaints
– % Targets Met
• Internal Business Processes
– Return on training investment
– Training costs
Gary Wheeler, The Virtual HR Director, LLC

32. Initiatives, Programs, Projects
•Strategic Imperative
–Initiatives
•Programs
–Projects
Gary Wheeler, The Virtual HR Director, LLC

33. Example
• Employee Performance and
Satisfaction
– Employee safety
• New safety training
• Safety awareness campaign
• Health and Safety Committees
• Safety Awareness Day
– Employee communication
• Online newsletter
• Employee portal
• Annual one-on-one communication
Gary Wheeler, The Virtual HR Director, LLC

34. Best Practices

35. Key Themes
• HR executives must first be business
people, speaking the language of
business and presenting a compelling
business case.
• The key responsibility of HR is to create
the workforce that delivers on the
business strategy.
• HR executives must demonstrate
courage, values, and leadership
Gary Wheeler, The Virtual HR Director, LLC

36. Good to Great
• Great companies think first about “who”, and
then about “what”
• Once a company has created momentum, it
needs to keep a balance between preserving its
core values and changing its operation practices
Jim Collins – Good to Great: Strategies for Your Business
Gary Wheeler, The Virtual HR Director, LLC

37. Corporate Governance
• The key to an ethical company is a
culture of values, integrity, and respect
for the law. HR is at the core of creating
this culture.
Richard C. Breeden – Corporate Governance,
Ethics and Corporate Culture
Gary Wheeler, The Virtual HR Director, LLC

38. Structures and Systems
• The HR strategy is driven by the business
strategy.
• Sysco’s human capital model supports
the company’s overall business strategy:
1. Customer Centric
2. Cost effective
3. Capability
4. Commitment
5. Compliance
6. Clear expectations
7. Common understanding
Ken Carrig – Creating Competitive Advantage Through
People – Strategy, Structure and Systems
Gary Wheeler, The Virtual HR Director, LLC

39. Structures and Systems cont.
• Transformational HR departments focus
on driving the business by building the
organization.
• Companies need to pay well, but find
other ways to motivate employees after
they are hired.
Ken Carrig – Creating Competitive Advantage Through
People – Strategy, Structure and Systems
Gary Wheeler, The Virtual HR Director, LLC

40. Coaching for Leadership
• Participating in a feedback process is
critical to realigning a person’s view with
reality and helping develop as a leader.
Marshall Goldsmith – Coaching for Leadership
Gary Wheeler, The Virtual HR Director, LLC

41. Contribution to Bottom Line
• The ultimate competitive advantage is
an empowered workforce aligned with
and focused on executing the
company’s strategy.
• Achieving an organization’s strategic
goals may involve redesigning work
responsibilities and evaluation systems.
Carleen Haas – Strategic HR’s Contribution to the
Bottom Line
Gary Wheeler, The Virtual HR Director, LLC

42. Questions?

43. Thank You
Gary Wheeler, The Virtual HR Director, LLC
gary@thevirtualhrdirector.com
http://www.thevirtualhrdirector.com