Create an HR

Strategy
Focus HR resources where they will have
the greatest organizational impact

McLean & Company is a research and advisory firm that provides practical solutions
to human resources challenges with executable research, tools, and advice that will have a
clear and measurable impact on your business. © 1997-2018 McLean & Company.
McLean & Company is a division of Info-Tech Research Group Inc. McLean & Company 1
EXECUTIVE SUMMARY Key Insight:

Situation
• People are increasingly accepted as the key factor enabling
Senior leaders are demanding
organizational competitive advantage.
more strategic value from their HR
• HR needs to act to identify and improve the critical aspects of
talent that will determine the success of organizations. departments, but the level of
resources available to HR remains
Complication relatively unchanged.
• Truly understanding organizational goals, sources of HR leaders must develop a talent
competitive advantage, and critical capabilities requires a strategy which prioritizes the
different skill set and approach than HR may be accustomed talent processes, programs, and
to.
initiatives critical to executing
• Limited resources for strategic initiatives and an ongoing
organizational strategy.
commitment to deliver core HR services restrict HR’s ability to
create value for organizations.

Resolution
• Identifying the key talent implications required to achieve the
organization’s goals enables the creation of targeted HR
initiatives.
• Reviewing existing initiatives and reallocating resources to
strategically aligned activities will make the most out of limited
resources, while helping to build the case for additional
resources.

McLean & Company 2

 A talent strategy creates a competitive human
capital advantage that drives success
A unique competitive advantage

• A talent strategy works in conjunction with an Examples of competitive talent advantages

organizational strategy to provide a competitive that drive organizational performance results
talent advantage. include:
• A talent strategy that propels organizational culture is • Highly innovative corporate culture
much more difficult for competitors to replicate than • Attractive employee value proposition (EVP)
process or product features (Mapesa).
• Strong customer service ratings

Increased organizational success

“
Strategic HR departments drive talent management
effectiveness, which in turn drives organizational A number of HR strategy activities are
performance. related to organizational performance.
• Strategic HR teams are 2.5X more likely to effectively The strongest relationship is [having] a
manage talent (Andrianova et al., 2018). human capital strategy that is
• Organizations with HR teams that effectively deploy talent integrated with the business strategy.
based on strategic priorities are 1.4X more likely to – Lawler and Boudreau, Effective

”
financially outperform competitors (Andrianova et al., Human Resources Management: A
2018). Global Analysis
• High-growth companies are 4X more likely to have a
comprehensive talent strategy (Bravery et al., 2019).
McLean & Company 3
 Talent strategy is also vital in driving overall
HR effectiveness
Strategic HR departments drive effectiveness by:

Planning for the

future
Aligning programs
and services with
organizational
Using metrics and
analytics to support
business decision
“ The people strategy is a
key way to add value to
the business.
Transactional HR is
strategy making

”
important but it's just the
foundation.

2X more likely to be highly effective – Nan Oldroyd, HR

McLean & Company, 2019 HR Trends Report; N=907 Executive

A robust talent strategy allows HR to focus resources on key HR’s involvement in strategy pays
strategic initiatives, increasing departmental performance off:
and the ability to adapt to future challenges. A talent strategy • Seventy-one percent of
shows HR: organizations that achieved or
• Where it should help exceeded their goals had HR
• What contributions are required teams involved in the
organizational strategic planning
• How it will have a measurable impact on attainment of
process.
organizational goals
McLean & Company, 2019 HR Trends Report;
N=746

McLean & Company 4

A talent strategy enables HR to drive
organizational success in a VUCA world
Organizations currently operate in a volatile, uncertain, complex, and ambiguous (VUCA) world

Of executives anticipate significant A robust talent strategy enables HR to

73% disruption in their industries in the next address current and future challenges that
three years could hinder organizational success in a
Bravery et al., 2019 VUCA world.

Of executives rate addressing automation It will direct resources towards HR initiatives

66%
related skills gaps as a top ten priority to best deliver on strategic priorities,
informing if the organization will:
Illanes et al., 2018
However, only… • Build or buy talent to address skills gaps
• Retain talent in critical roles
Of business leaders feel “very prepared” to
16%
address this gap • Redesign jobs, workforce size,
composition or structure and more…
Illanes et al., 2018

McLean & Company insight

A talent strategy is the process of determining where limited resources can have the biggest impact for the
organization. It requires hard decisions that identify actions and initiatives HR will and will not be
pursuing.

McLean & Company 5

 High-performing HR functions drive strategic
priorities while being operationally efficient
• Focusing scarce discretionary resources on initiatives that will
An effective talent strategy drive strategic organizational goals.
ensures HR is supporting • Identifying HR initiatives that aren’t aligned with the strategy
organizational goals by… direction.
• Building and developing the most appropriate HR capabilities.

HR departments continue to be
High-performing organizations include HR in
challenged to do more with less. For
developing strategic priorities: 70% of high-
years, organizations report an
performing organizations include HR, compared to
increase in overall headcount, but not
57% of other organizations (Filipkowski, 2019).
in HR headcount.
HR departments that deliver constant value must Seventy-eight percent of respondents
continually evolve to match changing business expect each new HR member to
conditions (Ulrich). support more employees than they do
now.
High-performing organizations have stronger (McLean & Company, 2019 Trends Report; N=744)
alignment between talent management and
strategic priorities: 67% of high-performing Therefore, HR must become more
organizations compared to 40% of other organizations efficient and effective in order to meet
(Filipkowski, 2019). growing demands.

McLean & Company 6

 Misaligned talent strategies and organization
goals can lead to a perception of ineffectiveness
HR effectiveness scores are declining, but the #1 demand of HR is better strategic alignment:

HR/Talent strategy is Only 21% of non-HR professionals agree that their HR

highly effective departments offer a comprehensive portfolio of HR
programs aligned with their organizational strategy
compared to 50% of HR professionals.
29%
The gap 79%

71% Agree 50% 50%

Disagree
21%
McLean & Company, 2019 Trends Report; N=209

Strategy is critical with processes

moving from HR-owned to HR- HR professionals Other professionals
facilitated.
Agree Disagree

McLean & Company, 2019 Trends Report; N=209

Examples include:
• Leader-driven engagement Any misalignment between HR and its stakeholders will reduce
• Performance coaching vs. effectiveness across all functions. Start closing the gap by
annual appraisals confirming where these gaps exist.

McLean & Company 7

Talent strategy overview

Strategic Pillars
These are high-level, aspirational and directional statements about
the future of talent in the organization that focus on the critical
workforce attributes needed to achieve organizational goals.

HR Outcomes
These identify the concrete items that HR will
accomplish or change within the time frame of the strategy.

HR Initiatives
These are the specific HR deliverables needed
to achieve the HR goals, both externally to support
the organization and internally to improve HR.

The talent strategy cascades from high-level strategic pillars to more concrete HR
outcomes and specific HR initiatives needed to achieve the strategic pillars.

McLean & Company 8

 Use McLean & Company’s HR Stakeholder
Management Survey to make data-driven
decisions about organizational priorities
Completing this diagnostic is an easy way to gather data and inform the Gain the following insights with the
creation of strategic pillars, HR outcomes, and HR initiatives. This is HR Stakeholder Management
highly recommended before proceeding.
Survey program:
1. Overall Score Cards
• Top Business Priorities: An importance
ranking of all HR functions will reveal
what matters most to stakeholders.
• Overall HR Satisfaction and Value: A
report card on HR allows data-driven
decisions about where to allocate
additional resources.
2. Business Unit Score Cards
• Alignment of Business Units: See
individual departments’ view of what
matter’s most, and understand how
aligned the entire organization is.
• Business Leader Comments and
Suggestions: Understand their views to
be prepared to have conversations
around resource allocations.

McLean & Company 9

Create a talent strategy in four straightforward
steps
Create a
roadmap
Establish the
future state 4

1 3
Identify talent Pinpoint gaps
implications

McLean & Company 10

STEP 1: IDENTIFY TALENT IMPLICATIONS

AFTER COMPLETING THIS

STEP YOU WILL HAVE:
a) Derived key insights from the organizational
strategy.
b) Determined the scope of the talent strategy.
c) Identified talent implications that will inform
the talent strategy.

McLean & Company 11

 Determine the talent strategy’s scope Decision

Take into account factors across four dimensions when establishing the scope, then use the scope to set
expectations of all involved about what will, and what won’t, be addressed by the talent strategy.

The breadth of the talent strategy determines which

perspectives are in scope:
• Talent segments, competencies, culture, data, compliance,
and talent sources (details on the following slide).

The depth of coverage refers to the level of detail

that the talent strategy will go into for each
perspective. McLean & Company recommends that
depth should go to the initiative level (i.e. the main
Components of
deliverable for each initiative).
talent strategy
scope
The organizational coverage will determine which
part of the organization the talent strategy will
cover and the parts of HR that are within scope
(including if ongoing operational activities are in
scope).

The planning horizon of the strategy will dictate when

the HR outcomes should be reached, and the length of
the roadmap.

McLean & Company 12

 Information

Identify the strategic direction of the gathering &

analysis

organization
Before tackling a talent strategy, HR needs to understand the factors impacting the organization from various
perspectives, how it makes decisions, and ultimately, what it is trying to achieve.

External Factors and Political, economical, social, technological, legal, and environmental factors and industry trends that
Industry Trends impact the business.

Organization Vision, What the organization aspires to be and its purpose. This includes the desired culture for the
Mission, Mandate organization.

The goals the organization has set, the capabilities it uses to achieve its goals, and the projects it wants
Organization Strategy
to pursue – and how these three components support each other.

HR Stakeholder The expectations of key stakeholders that HR needs to deliver on and/or manage through the talent
Expectations strategy.

Legal Jurisdictions The labor rules governing the different areas in which the organization conducts operations.

Organizational
The process, structure, people, and rules by which the organization makes decisions.
Governance

McLean & Company insight

Listing objectives isn’t enough; HR leaders must understand where the organization is, where it is headed, where it
competes, and how it wins in the marketplace, and then use this to inform the talent strategy.
McLean & Company 13
 Information

Use McLean & Company’s Strategic gathering &

analysis

Knowledge Toolkit to identify any blind

spots
Identify and document key insights about where your organization is going
and how it will get there by answering the questions in McLean &
Company’s Strategy Discovery Tool.
This tool will identify the activities and analysis needed to ensure your
talent strategy is focused on the right priorities.

Find and complete the recommended analysis

and activities in McLean & Company’s
Strategy Exploration Guide before proceeding
with a talent strategy.

Record the key insights in McLean & Company’s

Talent Strategy Presentation Template(or include in
your final own final deliverable) to help
communicate the rationale behind your talent
strategy.

McLean & Company 14

 Evaluate the organization’s strategic Decision

direction to infer talent implications

Talent implications are the requirements, effects, or consequences on talent due to the organizational direction, which
will inform the strategic pillars, HR outcomes, and initiatives needed in the future. If you have completed a
strategic workforce plan, it will inform this exercise.

Talent Segments
• The most critical roles, departments, or geographies that will enable the chosen direction. Use the
Talent
Competencies Implications
• The skills, knowledge, and abilities needed to achieve the chosen direction. Checklist to
help identify
Culture talent
implications.
• Specific values and behaviors that must be pervasive in the organization.
Compliance Be specific!
Identify
• The legal and regulatory factors that must be complied with.
attributes,
Data don’t just
create a list of
• Specific workforce information and demographics to support talent decisions.
buzzwords or
Core Processes feel good
statements
• Organizational talent processes required to achieve a competitive advantage.
(e.g. we need
Talent Sources to hire top
talent).
• The optimal physical location, or nature of the relationship (i.e. contingent or regular) talent.

McLean & Company insight

Don’t lose sight of HR operations and traditional services when identifying talent implications.
Advances in technology and services delivery means that these can be strategic activities.
McLean & Company 15
Communicate what you know, don’t wait for the
strategy to be completed
HR business partners and practitioners shouldn’t find out about the strategy from the businesses
they support. Let HR team members know what is going on, even if you don’t know what the
outcome will be. This practice, while scary, will improve HR engagement and buy-in, ultimately
benefiting the organization.

What? The expected timeline for the strategy creation.

• The dates when HR employees can expect to know the strategic pillars, HR outcomes, and
initiatives.
• The dates and methods they can use to ask questions.
• That both of these are subject to change, but if they do, this will be communicated as well.

How? A single communication to everyone.

• The traditional hierarchical flow of information

(cascading through management levels) is
inefficient and demotivating. Send the same
message to all HR employees, it’s less work and
more effective.

McLean & Company 16

STEP 2: ESTABLISH THE FUTURE STATE

AFTER COMPLETING THIS

STEP YOU WILL HAVE:
a) Prioritized talent implications.
b) Created strategic pillars.
c) Identified HR outcomes.

McLean & Company 17

Prioritize talent implications Decision

Start by consolidating the list of talent implications and drawing out themes where possible,
then rank them based on their impact and breadth.

How much will they derail or accelerate How many organizational

organizational outcomes? outcomes are they linked to?

Record and rank talent

implications on tab 2 of the Talent
Strategy Workbook.

McLean & Company insight

Strategy is about decisions and trade-offs; equally important to what HR needs to do is

what it won’t do. Take the time to debate and prioritize at each stage of the talent strategy.

McLean & Company 18

Define strategic pillars for talent within the Decision

organizations
Document strategic pillars
Strategic pillars are high-level, directional statements about the future
on tab 3 of the Talent Strategy
of talent in the organization.
Workbook.
→ The number of strategic pillars selected will depend on the scope of
talent strategy, but four to seven is a good starting point

A well-defined EVP can be

Organizational Organizational included as an organizational
Goal Goal goal.

Make sure
each pillar
connects
back to the
organizational Talent Talent Talent
Combining multiple talent implications
outcome Implication Implication Implication
(where appropriate) into one strategic
(goals,
pillar will help ensure they are specific
capabilities,
enough to be useful.
vision, etc.) it
supports.

Strategic Strategic pillars are statements about

Pillar the future (beyond the planning horizon
for the strategy), but that doesn’t mean
they have to be different then the
current state.

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Sample:
Strategic pillars
Organizational
Goal

Digital Transformation Put Customers First

Implications

Attract/retain Reward
Collect accurate Improve customer
Talent

employees with employees who

data on employee awareness
exceptional digital put needs of the
performance competency
abilities client first
Strategic Pillars

Create talent acquisition process Improve employee’s ability to exceed client

capable of efficiently identifying expectations by identifying strong and weak
and attracting digitally advanced performers and providing appropriate training and
candidates incentives

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Identify metrics that will indicate progress Decision

towards these objectives

Keep it manageable: Each pillar should have three to five relevant supporting metrics

Time-to-fill [selected digital roles]

Create talent acquisition process capable of efficiently
identifying and attracting digitally advanced Hiring manager candidate scores
candidates.
Digital projects completed on time/budget

Client orientation competency performance

management results
Improve employee’s ability to exceed client
expectations by identifying strong and weak
Customer renewal rate
performers and providing appropriate training and
incentives.
Customer net promoter score (NPS)

McLean & Company insight

Document metrics on
tab 3 of the Talent Don’t be afraid to use organizational metrics as a measure of success; this helps
Strategy Workbook. ensure that talent initiatives are focused on the same goals as the organization.

McLean & Company 21

Define the HR outcomes needed to support Decision

the strategic pillars

Articulate what is required of HR to achieve the strategic pillars of the
talent strategy :
Document HR outcomes
• Describe the ideal state of HR that would support each pillar, in greater
on tab 3 of the Talent
detail. These descriptions will form the basis of your HR outcomes by providing
Strategy Workbook.
an understanding of what needs to be achieved.
• Each strategic pillar should be supported by one to three HR outcomes.

Use a people, processes, and technology (PPT) Make this a team exercise to identify
framework to outline what is required: what needs to happen:
• Examine each strategic pillar and evaluate what people, • Leverage the collective knowledge and
processes, or technology will support the future state. expertise of HR.
• The future state description may depend on one of these • Generate buy-in for the talent strategy by
aspects or several in conjunction. involving key internal stakeholders early.

Ensure HR outcomes are in scope.

While the strategic pillars reflect the vision for the future of talent in the
organization, HR outcomes should be achievable within the planning
horizon defined in the scope.
If you’re working with limited resources and a short time frame, your
outcomes will be less aspirational than with a broader scope.

McLean & Company 22

Sample:
HR Outcomes
Strategic

Improve employee’s ability to exceed client expectations

Pillars

Create talent acquisition process capable

of efficiently identifying and attracting by identifying strong and weak performers and providing
digitally advanced candidates appropriate training and incentives

• Time-to-fill [digital roles] • Client orientation competency performance

Metrics

• Hiring manager candidate scores management results

• Digital projects completed on • Customer renewal rate
time/budget • Customer net promoter score (NPS)

Brand organization Identify and reward

Effectively evaluate
as a desirable place employees who
digital and cultural
HR Outcomes

for digital talent to exceed employee

skills needed to thrive
work expectations

Proactively source Provide training that

digital talent into a improves customer
pipeline awareness

McLean & Company 23

STEP 3: PINPOINT GAPS

AFTER COMPLETING THIS

STEP YOU WILL HAVE:
a) Analyzed the current state of HR.
b) Identified gaps between current abilities and
HR outcomes.
c) Created HR initiatives to close the gaps.

McLean & Company 24

 Information

Dive deeper into organizational data to gathering &

analysis

determine the nature and breadth of gaps

Take baseline measurements of the metrics identified in step 2 to identify how far the organization has to go. You’ll also need
to review additional information to clarify the nature of the gaps between the current state and the desired outcomes.

Gather data on talent programs and Surveys to look at include:

processes from surveys and systems
currently in place.
Look for specific questions, metrics, or
information related to the identified strategic
pillars and HR outcomes. Pay attention as McLean Exit
well for trends related to particular Employee
demographics (age, department, job level, Experience Employee New
gender). Monitor Engagement Hire

Review data in existing talent systems:

Human Resource Information System (HRIS): Turnover, internal movement, diversity, and employee demographics
should all be reviewed to ensure that problems or potential issues are clear.
Learning Management System (LMS): Information about which courses employees are accessing, and how they are
performing will help identify the depth and breadth of competency gaps.
360-Degree Feedback or Performance Management: High or low areas will indicate areas of strength or weakness.
Applicant Tracking System (ATS): Longer time-to-fill for certain roles indicates how difficult it is to recruit the required
talent, plus provide more information on the types of candidates being hired.
Procurement (Vendor Management System): Contingent workers are sometimes managed through a separate
system, but can be an important component for the workforce to evaluate.

McLean & Company 25

 Information

Review stakeholder feedback on HR’s gathering &

analysis

abilities to effectively deliver services

Stakeholder feedback should validate the chosen direction, and help identify where additional internal HR
resources and initiatives are needed for the HR function to successful achieve its outcomes.

Take a data-driven approach to

collecting stakeholder feedback by
using McLean & Company’s HR
Stakeholder Management (HRSM)
survey

Review:
• HR Satisfaction Scorecard to determine which core services (related to the HR outcomes)
stakeholders feel are needed for improved performance.
• HR Alignment and Capacity Scorecard to assess HR’s ability to deliver on administrative
duties compared to effective programs and planning.
• Business Unit Scorecards to identify how HR performance differs across the organization. If
particular areas have been identified as priorities pay close attention to these results. Core
service gaps help you prioritize areas of need.

McLean & Company 26

 Information

Gather internal feedback on HR’s current gathering &

analysis

strengths and weaknesses

Systematically identify factors, both internally and externally, that will impact the ability to deliver on the HR
outcomes. Involve functional HR leaders at a minimum to ensure a broader perspective is present, and is informed by the
results of your HRSM survey.

Use a simple SWOT analysis as a straightforward framework to identify and classify important factors
Make sure to discuss the following factors: Internal
• Ability to embrace change (within HR function).
Strengths Weaknesses
• Additional resources (budget) available to HR.
Capitalize Limit/Improve
• Influence of HR in the broader organization.
• Available documentation and data on current HR performance.

Negative
Positive
• Prevalence of ‘shadow HR’ in the organization. SWOT
• Comfort with, and availability of, HR technology. Analysis

Complete your SWOT analysis using McLean

& Company’s Standard SWOT Analysis Opportunities Threats
Template. Invest Minimize

External

McLean & Company insight

The best assessments combine multiple perspectives; frontline HR team members have a great
perspective of the function’s current strengths and weaknesses. Involving the broader team will also
help generate buy-in to the eventual initiatives that come out of the talent strategy.

McLean & Company 27

 Socialize strategic pillars and outcomes Decision

with stakeholders

“ Get your upfront buy-in, make sure stakeholders are involved, and test the water. Don’t
take things personally if people tell you something isn’t going to work – understand why!
”
– Danielle Mandell, VP, People, Habitat for Humanity GTA

Signs that strategic pillars or HR outcomes should be revisited:

Issue • There is a discrepancy between stakeholders’ vision for HR (as indicated by the HRSM survey, or
through consultation) and the path outlined in the talent strategy.
Action • Speak with stakeholders to understand why the difference exists, and ensure HR (and the
stakeholders) are clear on the rationale.

Issue • There are minimal gaps between the strategic pillars and the current reality.

Action • Confirm that the pillars are reflective of the desired future for the organization and not the
current reality.

Executives HR Employees
• Communicate the talent strategy, placing it in a broader, • Provide a high-level overview of the talent
organizational-level perspective. strategy.
• Address any feedback from previous stakeholder • Inform them that this is just a
discussions and describe how it informed the strategy. preliminary step, and they will be
• Avoid HR jargon and emphasize how the talent strategy and receiving more information about their
sub-strategies will support achieving organizational goals. responsibilities and initiatives as an action
plan is developed.

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Assess the difference between the current Decision
reality and desired state to identify initiatives
Focus on identifying the appropriate initiatives for now; they will be developed and prioritized in the next step.

Begin with: Identify gaps: End with:

HR Outcome What must be changed, maintained, created, or removed Strategic
Initiatives
People (Competency) Location and Clients
• Required skills, knowledge, and abilities in • Changes in groups that require HR support
HR

People (Capacity - FTE) Technology

• Additional or redundant headcount in HR • Existing systems or new types of
purchases to be considered

Process Structure
• Existing, new, or modified talent processes • New teams or changes to reporting
(e.g. succession management) structure

! Focus on initiatives within the scope of the talent strategy.

Document gaps on tab 3 of the McLean & Company insight

Talent Strategy Workbook, and
related initiatives on tab 4. Focus efforts on closing gaps, but do not lose sight of what is needed to
sustain the positive aspects of the current state.

McLean & Company 29

Sample:
Strategic Initiatives
Outcome
HR

Brand organization as a desirable place for digital talent to work.

People People Process Location Technology Structure

(Competency) (Capacity) & Client
• Lack of • No additional • No promotion • No change • No change • No change
Gaps

digital capacity on of employer

marketing talent brand
ability acquisition • No EVP for
team digital

Hire additional TA specialist with Create EVP with focus on Create employee
Strategic
Initiatives

background in digital marketing digital talent ambassador program

Create and launch marketing

campaign targeting digital talent

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Review McLean & Company’s resources for
help deciding on the proper initiative
Determining the right initiative to address a gap can be challenging. Review the
following sample resources for guidance in each area, or contact your account
manager to set up a call with our analysts as a sounding board.

• Unleash HR Capabilities
Building HR Capability
• Assess HR Outsourcing

Creating/Modifying • Modernize Performance Management

Talent Processes • Formalize a Learning & Development Strategy + many more

Changing Locations
• Align the HR Function With the Organization’s Global Business Strategy
or Clients

• Drive Business Value With an HRIS Strategy

Maximizing Technology
• Take an Educated Approach to Developing a Learning Management System Strategy

HR Structure • HR Delivery Models of the Future

McLean & Company 31

STEP 4: CREATE A ROADMAP

AFTER COMPLETING THIS

STEP YOU WILL HAVE:
a) Identified surplus resources.
b) Prioritized initiatives.
c) Created an action plan.
d) Communicated the final talent strategy.

McLean & Company 32

 Information

Examine the HR budget to determine how gathering &

analysis

resources are currently deployed

Understanding where HR resources are currently deployed and what objectives they are
supporting is crucial to identify additional resources to deploy to strategic initiatives.

Administrative Budget
This budget is allocated for operational HR costs that recur yearly,
typically used to ‘keep the lights on’ for the organization, and is
The operational
likely to take up a majority of the total budget. This budget typically
budget can be a
supports administrative activities that are:
potential source of
• Essential, regular, and ongoing. additional resources
• Process or system-oriented. through efficiencies.
Total • Related to administration, policy, and/or legislation.
HR
Program and Planning Budget
Budget
This budget is used for new projects/initiatives and is likely the The project budget
lesser part of the total HR budget. These initiatives should be: represents the most
• Directly supporting strategic initiatives. fluid pool of
resources available to
• Focused on achieving a longer-term impact. fund new initiatives.

Work with finance to identify actual spend, both within and outside of the HR budget, and to discuss
how the budget is expected to change during talent strategy’s planning horizon.

McLean & Company 33

 Categorize existing initiatives and budget Decision

to identify surplus resources

Inventory current HR programs to better understand where HR resources are
currently deployed and what HR outcome they are supporting. Each Document each initiative, along
initiative should be classified as core, strategic, or surplus. with its desired outcome,
owner, timeline, and
McLean & Company insight classification on tab 6 of the
Talent Strategy Workbook.
Identifying potential initiatives to discontinue should go beyond looking for
activities that aren’t aligned. Identify current HR methods of operations that
will hold you back in the future.

Core Strategic Surplus

These are administrative initiatives These are ongoing initiatives These initiatives do not support
that support core HR operations but that support the chosen HR the chosen HR outcomes.
don’t necessarily drive HR outcomes. outcomes. They are sources of additional
resources if needed.

Is it worth keeping? Beware the ‘Endowment Effect’!

The Endowment Effect is a bias whereby people place greater value on things that they own than is
warranted, and it can impact people’s view of programs and processes as well. Be objective about which
category initiatives fit in, then evaluate surplus initiatives to identify resources (people and budget) that can
be redeployed to a higher impact.

McLean & Company 34

 Information

Assess the effort and impact of each gathering &

analysis

strategic initiative to inform priorities

Effort Impact
Identify any required investments, additional HR Start broadly, and determine if/how an initiative will
capabilities, or any current processes/practices that impact a strategic pillar and associated metrics.
need to be modified. Evaluate how important it is to achieve an HR outcome, if
When assessing the required efforts, be sure to include HR other initiatives depend on it, and the visibility of the
stakeholders. They have the best insight as to the effort outcome within the organization.
required.

Assign each initiative an effort level: Assign each initiative an impact level:
• Low effort: Minimal additional resources required; the • Low impact: The initiative will slightly or indirectly
HR department has the capability to take on the improve the strategic pillar it supports, and does not
initiative. support any other major initiatives.
• Moderate effort: Some investment required; some HR • Moderate impact: The initiative does improve the
capabilities need to be built. strategic pillar, or is required for another initiative that
• High effort: Investment is required, significant HR will.
capabilities need to be developed, and new processes • High impact: Achievement of the strategic pillar
and programs need to be created and implemented. relies on completing the initiative.

Assess and document impact and effort scores on tab 4 of the Talent Strategy Workbook.

McLean & Company 35

 Prioritize initiatives to focus efforts on Decision

those with the highest impact

“ Strategy isn’t about doing it all – it’s about making trade-offs!

– Sonya Kunkel, Chief Inclusion Officer and Vice-President, Talent
Strategies, BMO
”
Target efforts accordingly
Quick wins are high-impact, low-effort initiatives that will build
traction and credibility within the organization.
Long-term initiatives require more time and need to be
planned for accordingly, but will still deliver a large impact.
Review the planning horizon to determine how early these need
to begin.
Re-evaluate low impact and low effort initiatives and identify
ones that either support other higher impact initiatives, or have
the highest impact to gain traction and credibility.
Deprioritize initiatives that will take a high degree of effort to
deliver lower levels of value.

Review your rankings on tab 5 of the

Talent Strategy Workbook.

McLean & Company insight

It is better to master fewer strategy-driven initiatives effectively rather than to under-deliver on a greater number
of unfocused initiatives – prioritize aggressively and really make an impact.

McLean & Company 36

 Information

Create a profile for each initiative gathering &

analysis

Identify the outcome(s)

that the initiative will
support.

If there are other

initiatives that
need to be
Describe the
completed before
outcomes of
this one can be
the initiative.
undertaken (or
vice-versa) list
them here.

See Appendix for a profile template.

McLean & Company 37

 Identify the estimated budget required to Decision

complete chosen initiatives

Current Additional Required

Budget Budget Budget

The projected budget, The proposed budget The budget required to

derived from the current needed to achieve the reach the defined target
state assessment. new initiatives. state.

Gap
Select an approach to limit any budgetary gap:
• Review the initiatives identified as ‘surplus’ and decide
which to discontinue.
• Examine operational capabilities to find efficiencies to
be reallocated.
• Appeal for additional resources, using the completed
Talent Strategy Presentation Template to demonstrate
the business rationale.

McLean & Company insight

Stakeholders may be more willing to provide additional resources if you have already identified areas of savings internally.

McLean & Company 38

 Create a roadmap of strategic initiatives Decision

A Gantt chart is a simple tool to visualize and communicate your roadmap. However, various other
methods like a sunrise diagram or even a to-do list may be ideal for your organization. The key is to create
a simple visualization that will help with approval and communication of the strategy.

Creating a Roadmap

• Ensure that perquisites are

identified and completed in the right
order.
• Map out initiatives to each HR
function, ensuring no one function
is overwhelmed by too many
initiatives occurring simultaneously.
• All initiatives should be completed
by the end of your strategic
timeline.
Create and visualize your roadmap using tabs 7 and 8
of the Talent Strategy Workbook.

McLean & Company 39

 Communicate your talent strategy and roadmap
to the organization
Executives HR Employees Employees
• Revisit the strategic pillars and • Ensure HR employees are aware of • Highlight the strategic pillars and
how they support organizational and understand the top strategic HR outcomes and why they
goals. pillar, HR outcomes, and initiatives. were chosen.
• Articulate why the top-priority • Be transparent on how and why Recommended channel: email
talent initiatives were chosen these areas were chosen. update.
over other gaps. • Highlight the areas that require the
• Identify the areas that will require greatest amount of their support Other Stakeholders
the greatest amount of support and effort.
Determine if the talent strategy
from executives. Recommended channel: departmental should be shared with external
Recommended channel: one-on- meetings. stakeholders including clients,
one or small group meetings. vendors, or potential candidates.

Use McLean & Company’s Talent

Strategy Presentation Template to
document and share your strategy in
a way that clearly communicates
priorities and makes clear the
rationale.

McLean & Company insight

Make sure you have clear understanding and buy-in from your executive and HR teams – ultimately, they are the
champions of your strategic priorities and initiatives. Without them on board, you limit the value and impact of your
talent strategy.

McLean & Company 40

 Revisit your talent strategy quarterly to
determine effectiveness and impact

The talent strategy is a living document. Work Revisit the talent strategy
towards re-evaluating quarterly and match when the organization
organizational cadence as the talent strategy decides to update or revise
becomes more integrated. its strategy at a minimum –
continuously address gaps
Depending on the organization or industry, it may be in your organizational
appropriate to revisit the talent strategy less strategy with talent strategy
frequently. solutions.

Take these key factors into account when determining how often to revisit your
talent strategy:
• How often the organizational strategy changes.
• Typical rate of change in your industry.
• The degree of uncertainty and volatility within your industry.

Evaluate your progress using McLean & Company’s

Standard HR Scorecard.

McLean & Company insight

An effective talent strategy is not a one-time program – To address your broader organizational needs, you must
developing your talent strategy iteratively.

McLean & Company 41

 Adjust your talent strategy and communicate
with key stakeholders

1 Progress on initiatives to date 2 Your updated talent strategy

Make progress clear, and communicate both

Communicate the final result as you adjust your
successes and areas where your strategy has missed
talent strategy. You may be adjusting to meet
the mark to the entire organization.
changing organizational goals or you may be re-
evaluating and launching new initiatives to further drive
Your executives will already be aware of initiative
existing organizational goals.
progress based on prior consultation in this step.
Similarly, some HR employees may have more
awareness than others so make sure you
communicate progress to your department as a
whole.

Determine how your updated strategy will be communicated at different levels. Continue to keep
your audience in mind as you communicate your talent strategy and constantly emphasize the value
each audience can expect to gain from the talent strategy.

Executives HR Employees Employees

Other Stakeholders

McLean & Company 42

KEY INSIGHTS • People are increasingly accepted as the key enabling
factor that creates competitive advantage for
organizations, and whose capabilities decide whether
organizations succeed or fail. A talent strategy is the
process of identifying the most critical aspects of
talent and focusing resources on maximizing their
effectiveness.
• Listing objectives isn’t enough; HR leaders must
understand where the organization is, where it is
headed, where it competes, and how it wins in the
marketplace and use this to inform the talent strategy.
• Strategy is about decisions and trade-offs; equally
important to what HR needs to do is what it won’t do.
Take the time to debate and prioritize at each
stage of the talent strategy.
• It is better to master fewer strategy-driven
initiatives effectively rather than to under-deliver
on a greater number of unfocused initiatives –
prioritize aggressively and really make an impact.

McLean & Company 43

MCLEAN & COMPANY OFFERS VARIOUS LEVELS
OF SUPPORT TO BEST SUIT YOUR NEEDS

DIY GUIDED
WORKSHOP CONSULTING
TOOLKIT IMPLEMENTATION

“Our team has “Our team knows “We need to hit the “Our team does not
already made this that we need to fix a ground running and have the time or the
critical project a process, but we get this project knowledge to take
priority, and we have need assistance to kicked off this project on. We
the time and determine where to immediately. Our need assistance
capability, but some focus. Some check- team has the ability through the entirety
guidance along the ins along the way to take this over of this project.”
way would be would help keep us once we get a
helpful.” on track.” framework and
strategy in place.”

Diagnostics and consistent frameworks used throughout all four options

McLean & Company 44

 WORKSHOP OVERVIEW
Onsite we will…

DAY 1 DAY 2 DAY 3

• Business leaders (morning) • HR Leaders • HR Leaders

• HR Leaders

1.1 Review strategic documentation 2.1 Create strategic pillars 3.1 Conduct a SWOT for HR
1.2 Conduct a SWOT analysis 2.2 Identify metrics to support pillars 3.2 Identify gaps to deliver HR outcomes
1.3 Debrief HR Stakeholder Management 2.3 Create HR outcomes 3.3 Create initiatives and a timeline for
Survey implementation (as time permits)
ACTIVITIES

1.4 Prioritize talent implications 3.4 Review existing initiatives for

alignment with new Talent Strategy
(as time permits)

• SWOT and PESTLE Analysis • Talent Strategy strategic pillars • Critical gaps between HR outcomes
DELIVERABLES

• Talent implications • Talent Strategy HR outcomes and current ability to deliver on them
• Action plan
• Alignment of existing initiatives
identified

McLean & Company 45

 Interviews
• Carol Beatty, Director of the Industrial Relations Center, Queens
University, President, Warp Speed Training Enterprises
• Robert Carlyle, Director, Strategic Workforce Management, Royal Bank of
CONTRIBUTORS Canada
• Alfonsina Chang, Professor, Seneca College
• Courtney Harrison, Consultant
• Michael Hoseus, Executive Director, Center for Quality People &
Organizations (CQPO)
• Lisa Jenkins, Process Optimization and Change Management Consultant
• Sonya Kunkel, Chief Inclusion Officer and Vice-President, Talent
Strategies, BMO
• Danielle Mandell, VP, People, Habitat for Humanity GTA
• Andrew Mayo, Human Capital Management Professor, Middlesex
University London
• Jackie Meagher, VP of HR, Info-Tech Research Group
• Dennis Miller, Speaker, Author, and Leadership Coach, The Power of
Strategic Alignment: A Guide to Energizing Leadership and Maximizing
Potential in Today’s Nonprofit Organizations
• Nan Oldroyd, HR Executive
• Tracey Pope, Chief People Officer, Canadian Red Cross
• Jennifer Riel, Managing Director, Knowledge Infrastructure Project, Co-
author of Playing to Win: How Strategy Really Works, University of
Toronto, Rotman School of Business

McLean & Company 46

 Interviews
• Brenda Rigney, Vice President of People Operations, Hootsuite Blog
• Harleen Smith, CHRO, Houston Airport System
• Dave Ulrich, Professor and Author, Ross School of Business, University of
CONTRIBUTORS Michigan
• Jeanne Wisniewski, Chief People Officer, Vitals

McLean & Company 47

RELATED MCLEAN & COMPANY RESEARCH

Align the HR
Function With the Unleash HR
Organization’s Capabilities
Ensure HR development
Global Business doesn’t drop off the radar;
Strategy help your HR team take flight
Apply a global mindset to with a simplified process.
your HR priorities.

Become a Data- Plan for HR Shared

Driven HR Function Services
Build the foundation for HR Engage in detailed planning
analytics to improve the and design to find the right
organization’s decisions. HR shared service model.

McLean & Company 48

Build an evidence-based HR
strategy while gathering insights LEVERAGE FEEDBACK TO
throughout the employee lifecycle.
DRIVE PERFORMANCE
Identify impactful initiatives using our diagnostic programs to collect
feedback from employees, stakeholders, and the HR team.

Optimize the HR Department for success

HR Stakeholder Management Survey
Align HR initiatives with business strategy and stakeholder needs.

HR Management & Governance

Improve HR’s core functions and drive project success.

Improve employee experience and HR processes

New Hire Survey
Ensure recruiting and onboarding programs are effective by surveying new employees.

Employee Engagement
Move beyond measuring job satisfaction with a comprehensive view of engagement.

McLean Employee Experience Monitor

Evolve to leader-driven engagement with a real-time dashboard and results.

Employee Exit Survey

Understand why people leave the organization in order to proactively retain top talent.

360 Degree Feedback

Empower employees with a holistic view of their performance to prioritize development.

View our diagnostic programs for more information.

McLean & Company 49

 London, Ontario, Canada
McLean & Company is a research and advisory firm providing Corporate headquarters
practical solutions to human resources challenges via executable 602 Queens Avenue
research, tools, and advice that have a clear and measurable London, Ontario N6B 1Y8
impact on your business.

Our research team uses a rigorous research process to identify Toronto, Ontario, Canada
and hone best practices; create practical tools, templates, and 888 Yonge Street
policies; and supply clients with the insight and guidance of our Toronto, Ontario M4W 2J2
subject matter experts. McLean & Company applies this proven
research approach to both human resources and company
management teams, creating complete solutions that supply the
tools you need to get each project done right.

McLean & Company analysts bring real-world experience to the

table and apply their knowledge to solving the challenges faced by
our clients on a daily basis. This process is informed by the
participation of a client base that includes over 30,000 members
and by an evolving client-driven research agenda.

McLean & Company is a division of Info-Tech Research Group Inc.

Contact Us
Website: Phone:
mcleanco.com North America: 1-877-281-0480
International: +1-519-936-2659

McLean & Company 50

APPENDIX

McLean & Company 51

 Create a profile for each initiative

DIGITAL EVP
INITIATIVE INFORMATION
Owner: TBD HR Outcome: Digital Brand
Outcome
The goal of this initiative is to create an EVP that reflects the lived experience of our digital roles in order
to attract additional talent to the organization.

Description
Duration: 1 month
Cost: $30,000

Consultants from ACME Corp. will be hired to create the EVP.

Benefits Prerequisites

• Improve brand awareness • None

• Increase application rate for job site traffic
• Increase number and quality of candidates for digital Dependencies
roles
• Digital talent marketing campaign

McLean & Company 52

WORKS
CITED

McLean & Company 53

Works cited

Andrianova, Svetlana et al. “Winning with your talent-management strategy.” McKinsey & Company, August 2018.
Web. October 2018.

Bravery Kate et al. “Global Talent Trends 2019.” Mercer, 2019. Web. October 2019.

Bression, Nathalie, et al. “The World-Class Performance Advantage: Seven HR Capabilities that Drive Performance
Leadership.” The Hackett Group, June 2015. Web. June 2016.

Filipkowski, Jenna. “Talent Pulse 6.1 – How to Influence Strategic Decisions.” Human Capital Institute, April 2019.
Web. Oct 2019.

Holley, Nick. What CEOs want from HR. Henley Business School, University of Reading, 2014. Report.

Illanes, Pablo et al. “Retraining and reskilling workers in the age of automation” McKinsey Global Institute, January
2018. Web. October 2019.

Lawler, Edward E., and John W. Boudreau. Effective Human Resource Management: A Global Analysis. Stanford
University Press, 2012. Print.

Mapesa, Nixjoen. Strategy and Sustainable Competitive Advantage in Business. 2014. Article.

Project Management Institute (PMI). The High Cost of Low Performance. PMI’s Pulse of the Profession, 2014.
Report.

Spence, John. Awesomely Simple: Essential Strategies for Turning Ideas into Action. San Francisco: Jossey-Bass,
2009. Print.

Strack, Rainer et al. “Creating People Advantage 2014-2015.” World Federation of People Management
Associations (WFPMA) and Boston Consulting Group, Dec. 2014. Web. March 2016.

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