Clarifying and Measuring HR's Strategic Influence: Introduction to a Seven-Step Process

In order to achieve strategy alignment, managers must first understand how value is created in their firm, and then must develop a measurement system based on that value chain. This chapter offers a seven-step process to help integrate HR into a business-performance measurement system, emphasizing the importance of a strategically focused HR architecture as a prerequisite. The seven steps for implementing HR's strategic role range from clearly defining business strategy and creating a strategy map, to aligning the HR architecture with HR deliverables and designing a strategic measurement system.