DEVELOP AND MANAGE HUMAN RESOURCES

PLANS, POLICIES, AND STRATEGIES

A summary of best practices

As the first stop on the HCM map, Develop and manage human resources plans, policies, and
strategies is a critical process. Organizations that invest more time upfront in HR strategic
planning can position themselves to proactively and accurately meet business needs. APQC’s
Process Classification Framework® (PCF) divides human capital management (HCM) activities
into the categories depicted in Figure 1. This article will highlight best practices for the Develop
and manage human resources plans, policies, and strategies process.

(7.1) Develop and

(7.7) Manage
manage human (7.6) Redeploy and
employee information
resources planning, retire employees
and analytics
policies, and strategies

(7.8) Manage
(7.2) Recruit, source, (7.5) Reward and
employee
and select employees retain employees
communication

(7.3) Develop and (7.4) Manage (7.9) Deliver employee

counsel employees employee relations communications

Figure 1

PCF sub-processes related to developing and managing HR plans, policies, and strategies
include:

 7.1.1 Develop human resources strategy;

 7.1.2 Develop and implement workforce strategy and policies;
 7.1.3 Monitor and update strategy, plans, and policies; and
 7.1.4 Develop competency management models.

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 Organizations can use this summary of Develop and manage human
resources plans, policies, and strategies best practices to guide them in
gaining the trust of business leaders, offering value-added advice to
business units, and preparing to proactively meet the human capital
needs of their organizations.

(7.1.1) DEVELOP HUMAN RESOURCES STRATEGY

The Develop human resources strategy sub-process consists of identifying strategic HR needs,
defining HR and business-function roles and accountabilities, determining HR costs, establishing
HR measures, and communicating HR strategy. Organizations that excel at this sub-process have
HR functions that understand broad enterprise strategy, anticipate and plan for future staffing
requirements, and incorporate employee needs and suggestions into HR strategy.

Best practices for Developing Human Resources Strategy

 Ensuring that the HR function has a strong understanding of organizational strategy and
business operations
 Using outsourcing, technology, and shared services to deliver administrative HR tasks
 Tying HR plans—especially those regarding resourcing, organizational structure,
compensation, and benefits—to overall organizational strategic plans
 Tracking the demographic profile of the workforce and adjusting resource plans to account
for gaps between workforce projections and anticipated organizational needs
 Using data and analytics capabilities to proactively consult with the business to craft HR
plans
 Incorporating employee feedback/survey responses into HR strategy setting

(7.1.2) DEVELOP AND IMPLEMENT WORKFORCE STRATEGY AND POLICIES

The Develop and implement workforce strategy and policies sub-process encompasses
workforce, compensation, succession, and employee benefits planning. It also involves
developing an employee diversity plan; developing/administering HR programs and policies; and
developing strategies for HR systems, tools, and technologies. Organizations that excel at this
sub-process have senior leaders who are heavily engaged in the development and
implementation of HR plans. These organizations develop employee diversity plans that go
beyond legal compliance requirements to address issues of organizational inclusiveness. They
also integrate the talent review and succession planning processes with the overall
organizational strategy and strategy-setting process.

Best practices for Developing and Implementing Human Resources Plans

 Having senior leaders play a significant role in the talent management process
 Focusing on both short- and long-term talent needs with the intent of having a qualified and
interested pool of candidates to choose from whenever a hiring need arises

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  Developing employee diversity and inclusion strategies and plans that go beyond
compliance with legal requirements
 Integrating annual talent review and succession planning with the organization’s overall
strategy and strategic planning process

(7.1.3) MONITOR AND UPDATE STRATEGY, PLANS, AND POLICIES

The Monitor and update strategy, plans, and policies sub-process consists of measuring the
outcomes of HR activities and the contributions of HR to business strategy. It involves
communicating HR plans to stakeholders, determining the value added by the HR function, and
reviewing and revising HR plans. Organizations that excel at this sub-process use a balanced set
of simple and uniformly defined metrics to assess the performance of their HR plans. They try to
measure the contributions that HR plans and policies have made to key business outcomes. In
addition, they align the timing of their HR review and planning processes with the schedule of
the overall organizational review and planning process.

Best practices for Monitoring and Updating Human Resources Plans

 Keeping metrics simple and defining them uniformly across the organization
 Using a balanced set of metrics to assess the effectiveness of the HR function, including
employee satisfaction level, attrition/retention rate, and recruiting statistics
 Having HR strategy and planning reviews coincide with the overall organizational review and
planning process
 Linking HR plan performance to business outcomes
 Using HR scorecards and measures to track and demonstrate HR’s contribution to achieving
business strategy

(7.1.4) DEVELOP COMPETENCY MANAGEMENT MODELS

The Develop competency management models sub-process involves identifying the sets of skills,
bodies of knowledge, and combination of abilities that employees need to perform specific jobs
well.

Best practices for Developing Competency Management Models

 Identifying the competencies of top performing employees and using these to inform
competency models
 Designing competency models to connect different talent management processes including
recruiting, training, and performance management
 Developing a leadership competency model
 Creating an HR competency model

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 CONCLUSION
The information provided in this article is designed as a starting point for organizations looking
to evaluate and improve their performance of the Develop and manage human resources
planning, policies, and strategies process. Once an organization is familiar with best practices for
developing and managing human resources plans, policies, and strategies, the next step is to
conduct a formal best practices assessment, enabling leadership to prioritize improvement
activities and formulate a plan of action. Organizations that take the time to evaluate and
improve their HR planning practices are likely to see a range of positive outcomes, including a
strengthened partnership between HR and the business, leadership buy-in for HR initiatives,
engaged employees, and adequate staff to meet business needs.

ABOUT APQC
APQC helps organizations work smarter, faster, and with greater confidence. It is the world’s
foremost authority in benchmarking, best practices, process and performance improvement,
and knowledge management. APQC’s unique structure as a member-based nonprofit makes it a
differentiator in the marketplace. APQC partners with more than 500 member organizations
worldwide in all industries. With more than 40 years of experience, APQC remains the world’s
leader in transforming organizations. Visit us at www.apqc.org, and learn how you can make
best practices your practices.

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