Spending time with midsize business owners and executives, one common theme I often hear is that “people issues” are among the top things they worry about. I’ve heard owners say, “if I didn’t have to worry about people, my business would be a lot easier!” Managing the issues around people in your company can be made easier with the implementation of a People Strategy.
A People Strategy is a defined and focused plan for the people in your company or organization. It is a comprehensive roadmap for managing and growing one of your largest assets—your people. The People Strategy supports your business plan and details how your people will be most effective in your company. A solid People Strategy will help drive your business forward.
Spending the time to strategize how you want to use your people to be effective is of critical importance. Research has shown that investments in people prove to be a solid business strategy, as profitability and shareholder returns tend to be higher in companies with a proactive approach to managing their human capital.
People Strategies:
- should reflect your attitude toward the people in your organization.
- can include guidelines on corporate culture
- often lay out policies and plans for training and development
- will have a mechanism to identify emerging leaders and a plan for providing those individuals with the needed opportunities, tools and experiences to move to a leadership role
- should work hand in hand with your company strategy and business plan.
Your people are the ones who will help you implement your corporate strategy. Are they the right people? Can they get you to where you need to go?
A people strategy can actually drive a company’s business strategy. Think for a moment about a business expansion. Perhaps your company is looking to globalize – move operations overseas. Or even move to a more tax-friendly state in the U.S. Understanding the people issues first—before making that move— will help the move be successful. What does the local talent pool look like? You might be saving on labor costs, but will you need a higher priced set of managers to oversee the workers? Understanding the people issues before committing to a business strategy can save money and resources in the long run.
