Apply These 3 Tips to Connect People Programs with Business Strategy

Are you one of those leaders who is skeptical about whether your people programs have an impact on your company performance? In fact, very few CEOs see a strong connection between their company’s human resources initiatives and business strategies. Yet the results of our latest research show how every employee’s performance must contribute to company purpose and goals. 

Of course, the challenge isn’t limited to mission-driven companies. All types of organizations spend thousands of dollars every year on employee surveys, professional development, coaching, and training trying to improve performance for company success.

Just the other day, the president and CEO of our client company in the financial industry shared her concerns about their “people programs.” She said she understood why employees want to be happy at work. However, she was befuddled by the lack of connection between the human resource’s initiatives and behavior changes supporting their impact investments business strategy. In her opinion, the company was not getting the essential payback for the time, effort and dollars that went into these programs. Needless to say, the point of people programs must be about more than just making people happy at work!

I was intrigued by this observation and I investigated how the company determined which people programs to either purchase or design. Here is what I found:

• Decision-makers tended to jump on the latest fad or purchase from the most convincing salespeople.
• Most often they offered programs that their colleagues in other companies recommended without evidence that these programs were right for their company’s business strategy.
• Company leaders tended to delegate all the work concerning people issues to others. They did not see this work as part of their roles.

My conclusion was that their programs didn’t connect with strategy because the leaders failed to adequately contribute to a planning process. What can go wrong when leaders do not recognize the significance of their role in ensuring alignment? Consider this example: 

The HR department of our financial firm client company routinely administered a popular assessment tool to prospective employees as part of their hiring process. They believed this practice enabled them to select people who would fit into their current culture. So what is the problem here? They did not consider whether the tool would support their company’s emphasis on diversity and inclusion as central to their business strategy. By selecting people who “fit in”, they were excluding the potential disruptors who were most likely to contribute to the change and innovation that the business strategy required. They adopted the tool because many of their colleagues in other companies recommended it and the salesperson was very persuasive.

 No wonder the leaders were disappointed by employees who defended the status quo at every turn rather than challenging and innovating.

Of course, the CEO was disillusioned with the people programs. Her perceptions were accurate. The hiring practices weren’t furthering the company strategy.

Since people are key to a company’s ability to balance purpose and profit, the disconnects are serious. Afterall, people programs involve selecting talent, delivering messages, reinforcing values and developing skills for a culture that will support company mission and strategy.

So, if you want employees’ behaviors to support your business goals, follow these simple tips:

#1 Work closely with those in charge of people programs.

Sure, this work takes time. But the time is well spent. Do not delegate this work to your HR department. Consider them as partners. Engage them in conversations about business strategy and the implications for what people need to understand, learn, think and do to support it.

#2 Participate in the design and development of the initiatives.

While you may not believe that this work is crucial to your leadership role, consider this: organizational culture can make or break your company’s performance. And your employees are the primary contributors to your culture. Thus, your role includes staying on top of how you select, train, engage and reward them.

#3 Take periodic pulse checks of your culture and the people who comprise it.

Way too often leaders are unaware of what people in their organizations really think and do day-to-day. If you are out of touch with the culture from your employees’ perspectives, you cannot hope to accomplish your company’s performance goals. And, moreover, you run the risk of allowing a toxic culture to sneak up on you. We have all seen evidence of the damage that toxic cultures can do to a company. Make no mistake, if the culture affects your company’s reputation and performance adversely, the public will hold you responsible. And for purpose-driven companies, reputation and performance are everything.

So, the next time you find yourself complaining that your people programs have no strategic impact, get busy and change this picture.