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uring the last two decades, HR key responsibilities have shifted drastically, moving from a transactional nature to one that is more consultative and strategic. In the current scenario, more so in the knowledge industry, new demands are placed on HR to provide solutions that will contribute to the performance and agility of the business. In this context, a careful alignment process with overarching business strategy is no longer an option, but a requirement. In a traditional sense, HR was seen as adding value to the organization by reducing costs and becoming more efficient, but if we have to look at the new HR architecture that is required to drive strategy execution in any organization, the emphasis should be more on numerator management rather than denominator management. In other words, HR should gear itself up for value creation through direct or indirect contribution to revenue and growth rather than only striving for cutting costs and reducing overheads.

geared for high performance and has strategically aligned policies and practices, which in turn drives employee behaviour encompassing strategically focused competencies and commitments. HR as a strategic asset must address the following four questions: How can the HR architecture be aligned with the organization's vision, mission and strategy? How can HR play a central role in implementing the organization's vision, mission and strategy? How can HR facilitate creation of value for the organization? How can HR measure such value creation process?

The HR alignment
While discussing HR alignment with the organization's mission, it may be worthwhile to enumerate certain fundamental understanding. These include: A clear understanding of the value chain: What kind of value organizations generate and how that value is created? Understanding of the organization's ultimate financial goals and how they are linked to key success factors at the level of customer, operation, people and systems. With the above knowledge, design of a strategy implementation model that should specify the needed competencies/capabilities/employee behaviour. The HR system can be geared towards generation of these competencies and behaviours.

Strategic HR architecture
To be able to picturize HR to evolve from being a professional partner to being a strategic partner, it may be worthwhile to appreciate HR's strategic architecture. The first link in the value chain may be the HR function which is driven by HR professionals with strategic competencies, the next being the HR system which is

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The multi-dimensional alignment
The alignment process has to be seen as a collection of alignments in the HR context, the first of which is alignment of HR strategies with business strategies, for example, the business revenue growth plans would have to be linked with the strategic workforce growth plans. Strategic objective for globalization should have direct linkage with Learning & Development plans encompassing cross-culturalization and likewise. The next alignment should be that of organization goals with the group and individual goals cascaded down and should address clear definition of roles for various roleoccupants in the organization structure. The next dimension should be alignment of the human capability at the organization's disposal with customer requirements, which in other words means alignment between knowledge, skill and attitude with delivery excellence leading to customer delight. The other aspect could be cultural alignment of the individual, group and the company across geographies in a global perspective and also with that of the customer. All HR practices and processes should also get aligned with the overall HR strategies in sync with the business needs and business strategies. If the goal of corporate strategy is described as creation of sustained competitive advantage, the goal

Redefine

the HR agenda
By Dilip K. Mohapatra

How can HR emerge as a strategic partner with the business and be recognised as a source of competitive advantage. TCS shows the way.
MAY 2006

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of HR strategy could be maximizing the contribution of HR towards that goal. up to the company's human resource efficiency and human capital effectiveness. Delivery of human capability though continuous and consistent value addition by enhancing competencies, leadership alignment, team synergy and a supportive culture ensures continuous improvement of internal business processes and customer relationships in the short term and financial gains in the long term.

HR strategy and operations

Coming down to brass tacks, the HR must see the connectivity between strategy and delivery and appreciate that while planning is a top-down process, execution must be bottom-up. The best framework to appreciate such connectivity is the Balanced Score Card (BSC). While the meta-enablers at the bottom of the framework would comprise of competency, incentives and work practices that support high performance, the end objective should be to create value and joy for the shareholder through maximization of both internal and external customer delight.

HR delivery alignment @ TCS

It may be worthwhile to see how HR delivery is aligned with the TCS business objective. TCS as a performancebased organization considers EVA as the main driver of its business objective. EVA has got basically two aspects; revenue and costs. Revenue is driven by the realization rates and the number of people engaged in client delivery. This primary driver defines the HR sourcing targets across geographies, across skill sets, across technology stacks and across workforce categories. Learning & Development objectives and programmes are aligned with the needs for induction training required to be delivered to the workforce recruited and also with the needs for continuous competency development for the workforce in the system. Both these pipelines continue to populate and enrich the competencies in the available resource pool, which drives effective project staffing while ensuring optimal utilization of the human resources and enhancing better delivery effectiveness. On the cost side, the performance management group ensures optimal utilization of the budget to structure compensation packages to attract, retain and recognize talent within the organization.

The TCS model

If we use TCS as a backdrop to appreciate the process of this alignment, first we should consider the TCS Vision, Mission & Values. TCS Vision of being Global Top 10 by 2010 in the IT industry is supported by a clear Mission Statement which encompasses customer delight by providing best-in-class consulting, IT solutions & services and also delivering value and joy to all stakeholders. TCS has five espoused values which support its Mission and Vision. These are Integrity, Leading change, Excellence, Respect for individual, and Learning & Sharing. Against this backdrop, TCS has in place a robust HR alignment framework starting from the Vision and Mission, which drive the strategic objectives and the business plans. TCS uses extensively, the BSC for aligning all HR & OD activities across geographies, industry practices, service practices and its delivery centres, through goal alignment, role alignment, performance alignment and practice alignment. TCS recognizes its principal HR offering to the customer as the capabilities of its workforce, which are enabled by competency, leadership abilities, a conducive cultural climate, commitment and team integration. The delivery routes to enhancement of the shareholder value are distinctly bimodal; the first route is through enhancement of customer delight though delivery excellence of world-class services and successful management of customer relationships and the second route is by enhancing employee delight through effective management of their operating efficiency. All these add

Alignment through a cascading BSC

The Balanced Score Card is used as an effective instrument for linking the HR strategies and the HR delivery with the organization's vision, mission and business strategies. At the topmost level lies the TCS corporate strategy map and embedded into the four layers of the BSC namely, Financial, Customer, Internal Processes and Learning & Growth (L&G) are well articulated business objectives. For example, the first layer concerning Finance contains the Company's vision of being Global Top 10 by 2010 and lays down objectives and targets like growing revenue @ X % p.a. by increasing steady stream of revenue generating assets, investing to build new business models, securing growth from

HR FUNCTION
HR PROFESSIONALS WITH STRATEGIC COMPETENCIES (DELIVERY OF HR SERVICES IN A WAY THAT SUPPORTS THE IMPLEMENTATION OF THE FIRMS STRATEGY)

HR SYSTEM
HIGH-PERFORMANCE, STRATEGICALLY ALIGNED HR POLICIES & PRACTICES

EMPLOYEE BEHAVIORS
STRATEGICALLY FOCUSED COMPETENCIES, MOTIVATIONS AND BEHAVIOR

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DELIVERY OF HUMAN CAPABILITY THROUGH TWO ROUTES TO MAXIMIZE SHAREHOLDER VALUE
Shareholder value

FINANCIAL PERSPECTIVE

Human capital effectiveness

Human resource efficiency

CUSTOMER PERSPECTIVE

Customer delight

Employee delight

INTERNAL PROCESS PERSPECTIVE

ENABLERS

Deliver world class services

Manage customer relationships

Manage operating efficiency

LEARNING & GROWTH PERSPECTIVE

Competencies

Leadership

Cultural climate

Strategic alignment / motivation

Team integration

META ENABLERS

Work capability

strategic customers, increasing customer base amongst global F1000 companies, ensuring EVA margin of Y % and the like. At the customer layer, the focus is on customer delight through the quality and spectrum of the offerings and timely delivery. The internal process takes into account both marketing and operational excellence, and the L&G layer contains aspects of knowledge, innovation and competence. The HR related bubbles are spread over this BSC. At the next level, is the derivative BSC that is dedicated to the HR/OD Strategy of the company. At the top layer of this BSC, the HR Strategies focus on maximization of Human Capital performance, establishment of employment brand and to be Employer of Choice (EOC) and provision of state-ofthe-art associate support systems and services. The second layer is devoted both to the external and internal customers and the focus is on role clarity, goal clarity, associate development and career planning, associate recognition, associate entitlements, performance management, etc. In the internal process layer, alignments are focused in HR Sourcing, branding in Academic institutes, people capability improvement processes in line with business needs, structured communication processes, performance-oriented culture, people engagement processes and the like. In the L&G layer, learning & sharing and enhancing strategic

& functional capability of the HR associates finds central attention. Cascaded down to the next level the TCS L&D strategy map spells out specific programmes and initiatives well-aligned with the HR/OD strategy map across the four layers.

In conclusion
HR is emerging as a strategic partner with the business and being recognised as a source of competitive advantage. Apart from the conventional HR delivery which has to be aligned with business, the central focus must lie in culture management facilitating fast change, enabling strategic decision making and creating marketdriven connectivity. HR must be capable of providing the company with human competencies and behaviours necessary to achieve the organization's strategic objectives and realize its vision, mission and values through alignment of HR deliverables, HR doables, HR HC performance drivers and HR enablers.

Dilip K. Mohapatra is Global Head, Learning & Development, Tata Consultancy Services Limited

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