Guidelines:BusinessAreaCompetencePlanning

{BusinessAreaHumanResourcePlanning}

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Guidelines

The body of this pattern is a process model showing a process that integrates human resource planning and business planning.
To ensure the desired alignment of strategic business objectives and Human Resource Management objectives through the chain of goal decomposition, from strategic planning at Group level to operational planning at department and individual level, it is necessary to give special attention also to the planning processes at the Business Area level. This is where the strategic goals are converted to operational objectives and activities.
The process model can be divided up into four major steps:

A. Direction of business

The initial step in the general Business Area planning process is setting the “direction of business”. This is where the strategic business objectives for the Business Area are formulated.
Inputs to this process are:
1. CEO’s preconditions for business planning work.
2. Local Business plan from previous year.
3. Feed back information on previous years activities.
4. Analysis of surrounding world including customer attitudes and market situation.

B. Competence requirements and objectives

In this step the competence section in the Business Area business plan is developed and formulated.
The competence section in the business plan consists of following parts:
1. Overall Business Area competence requirements.
2. Business Area scorecard competence objectives.
3. Business Area strategy for competence.
4. List of conjoint Business Area activities.

C. Identify competency needs and availability

In this step the surplus and/or shortage of competence is identified. This is done by describing and analysing the competence available and by comparing this with the need of competence, derived from the business objectives. This process is called the competence gap analysis.
The gap analysis is executed on individual employee level as well as on department and Business area level.

D. Plan and perform actions

The gap analysis helps to identify what competencies should be developed and what other competencies should be transformed.
The next step is then to define what actions are needed in order to fill the gap and achieve the formulated competence objectives. This actions following this can be, for instance:
1. Competency development programs.
2. Recruitment.
3. Co-operation with customers and suppliers.
4. Co-operation with consultants and universities.
5. Outsourcing.
These activities are then planned and performed in a way that is most suitable in each specific situation.

E. The follow-up procedure

The final step in the Business Area process is to follow up activities, measurements and indicators in order to see how well the formulated competency objectives are met. This is done on a quarterly as well as on an annual basis. The results are then fed back to former steps in the process in order to improve the performance.

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