The document outlines Gary Wheeler's presentation on aligning human resources with business strategy. The presentation covers: 1) How to implement an HR strategy aligned to the overall business strategy and discusses HR competencies and best practices. 2) A case study of Sysco Foods demonstrating HR's role as a strategic partner. 3) Key themes from best practices literature emphasizing HR executives must speak the business language and create the workforce to deliver the business strategy.

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