Build an HR Strategy That Fuels Enterprise Growth

Create and update an HR strategy that enables key business objectives and maximizes workforce performance.
HR Strategic Planning Template

A business-aligned HR strategy is crucial today

CEOs today are looking to execute on new corporate objectives of sustainable growth, cost optimization and technology transformation. However, in a highly volatile, complex and ambiguous business environment, CHROs must ensure their HR strategies are aligned to corporate objectives in order to drive the necessary talent and business results. This comes at a critical time of increased hesitancy and uncertainty.

High-impact HR strategies are built for growth, agility and results. They align people priorities with business imperatives, unlock workforce productivity and quickly adapt to economic shifts and talent market pressures. Crafting one requires rethinking how HR operates, moving talent where it’s most needed and investing where it counts. 

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    Build an HR strategy that moves the business forward

    A holistic HR strategy positions CHROs to make their organizations more agile, streamline operations and ensure strategic alignment, thus transforming HR into a pivotal driver of enterprisewide growth and innovation.

    Enhance HR operating models for alignment and efficiency

    As organizations strive to align their HR strategies with dynamic business goals, CHROs must evolve their HR operating models to balance strategic impact with operational efficiency, and ensure their HR strategy remains at the forefront of business transformation. However, these transformation efforts often encounter significant roadblocks, including change resistance and fatigue, and misaligned technological capabilities. To navigate these challenges, first determine the optimal timing for, and extent of, transformation, then secure buy-in from senior leadership and commitment to include HR team members at each stage of the process.

    The imperative for continuous HR transformation

    Eighty-eight percent of CHROs agree that shifting business needs require continuous HR transformation, according to the 2025 Gartner HR Priorities Survey. This ongoing transformation is crucial in light of cost pressures, frequent strategy shifts and evolving employee expectations. While many HR teams feel stretched by constant change, it’s important to recognize that transformation doesn’t have to be a massive overhaul. Incremental evolution of the HR function’s leadership, capabilities, operating model and/or technology can make a significant impact on critical business outcomes.

    Key HR transformation focus areas 

    Successful HR transformation requires a comprehensive approach that considers changes in four critical areas:

    1. World-class leadership. Effective CHROs transcend traditional HR roles, positioning themselves as strategic business leaders who drive enterprise success. They put into practice an adaptable HR strategy that contributes to enterprise strategy and optimizes the HR budget.

    2. Modern HR operating model. The HR operating model, which organizes the structures, capabilities and processes through which HR delivers value, is foundational to any HR strategy. Progressive CHROs reinvent the HR business partner (HRBP) role to focus on strategic talent leadership, create dynamic problem-solving teams and build robust HR operations that can swiftly adapt to changing business needs.

    3. Future-proofed HR team competencies. For HR to be a strategic partner, CHROs must help their teams develop competencies such as agility and strategic consulting.

    4. HR technology enablement. CHROs need to implement advanced HR technologies –– such as AI for HR –– that streamline processes, improve data analytics capabilities and facilitate seamless communication across the organization. Focusing on high-impact technology projects drives digital transformation and fosters innovation.

    Develop future-ready HR leaders

    Heightened demands on HR mean heightened demands on HR talent, who must now shape HR strategy to align with complex business transformations, technological advancements and labor market shifts. Key HR talent focus areas for HR professionals include: 

    • Building leader and manager capabilities. To guide leader and manager development, identify and cultivate leadership skills — and equip leaders with tools to master them. Collaborate with business partners to realign manager roles, eliminate process hurdles and build long-term habits that sustain behavioral change.

    • Performance management. Only 48% of managers believe performance management meets organizational needs. Help managers align employee ambitions with business priorities using frequent goal reviews and performance discussions. This ensures employees focus on critical objectives and receive fair feedback.

    • Succession and high-potential employee management. With 54% of HR leaders concerned about succession planning, it’s crucial to rebuild and diversify the leadership pipeline and update high-potential management strategies. Internal mobility tools like job rotations and cross-functional career pathing can fill critical roles and serve as career development opportunities.

    • Career management. Just 19% of HRBPs agree that employees feel encouraged to develop skills beyond their roles. To close talent gaps and offer meaningful career development, ensure managers assess career aspirations and promote internal mobility.

    Optimize necessary HR budget and resources

    Despite HR’s critical role in driving organizational success, it often receives one of the smallest functional budgets. To increase HR’s budget and deliver on strategic goals, CHROs can do the following:

    • Conduct workforce segmentation and risk analyses. Identify talent segments critical to strategy execution and assess risks to business performance if these segments lack financial support.

    • Focus on organizationwide talent challenges and opportunities. Address talent challenges and opportunities across the organization, not just within HR. To demonstrate HR’s ability to scale its influence beyond its function, highlight how HR initiatives mitigate these challenges and how additional budget can enhance their impact –– showcasing HR as a business partner.

    • Identify future of work trends to tackle. Articulate future work trends, their impact and that talent investments need to respond as the organization sets strategic talent goals. Positioning HR as a leader in navigating these changes can increase the appeal of investing in critical HR initiatives.

    • Lead the discussion with HR data and benchmarks. Use benchmarks and HR investment trends data to advocate for future investment opportunities. Benchmarking, in particular, provides context for required optimization and investment strategies.

    • Demonstrate positive impacts of HR on business performance. Link HR topics to business outcomes to demonstrate how increased budget fuels organizational success.

    HR strategy FAQs

    What is an HR strategy?

    An HR strategy defines which HR practices and activities to pursue to deliver outcomes that align with business goals. It serves as a roadmap for syncing human resources with organizational objectives and helps ensure that the workforce is equipped to meet current and future challenges.

    Why is an HR strategy important?

    An HR strategy sets up the workforce to meet organizational goals and navigate challenges such as economic volatility. By aligning HR practices with business objectives, organizations can enhance their competitiveness and drive sustainable growth.

    How can HR strategy be aligned with business goals?

    To align HR strategy with business goals, continuously adapt to shifting needs, focus on talent outcomes and leverage operational efficiency. This requires fostering a culture of innovation, collaboration and continuous improvement in which HR is seen as a strategic partner in driving business success.

    Drive stronger performance on your mission-critical priorities.