Human Capital Analytics: How to Harness the Potential of Your Organization's Greatest Asset

CHAPTER 2

Alignment

“A senior manager hoping to influence behavior has no stronger lever than his or her choice of measures.”

—Scott Anthony, Mark Johnson, Joseph Sinfield, and Elizabeth Altman, An Innovator’s Guide to Growth1

Alignment is a popular topic of conversation in human resources today. Yet few HR leaders are able to follow through on true alignment with their business. So what is alignment? Alignment is a plan that explicitly connects investments to strategic goals via the metrics. Alignment is about finding the relevant stakeholders in the company and connecting them to the parts in that plan. Alignment positions human resources as a strategic partner in support of the business. To follow through on alignment means that HR understands and helps drive business goals (rather than the converse, where business drives HR goals). It requires a fundamental shift in thinking—from HR as a cost center to HR as an investment, a business partner, and an important seat at the C-suite table.

It is crucial for HR to design people investments that drive business goals. We do not think HR can design those investments without systematically evaluating and improving on the impact of those investments on key metrics. For human capital investments to be truly successful, they must be aligned with business goals and, ultimately, to the organization’s strategy. Organizations spend billions annually on human capital investments. All too often, HR interventions are designed without business ...