Strategic planning is the roadmap to an organization’s success, providing a clear vision of where the company is heading, how it will get there, and what resources are needed along the way. This process is essential for sustainable growth, competitive advantage, and long-term profitability. However, having a plan is not enough—organizations must align every function, including Human Resources (HR), to support and drive the strategy effectively.
HR professionals often struggle to secure a seat at the strategic planning table because many still view HR as a purely administrative function. That must change. To truly participate, HR professionals must understand business strategy, financials, market trends, and operational drivers—not just talent management. This article explores the five critical steps of the strategic planning process, HR’s role in participating and supporting the strategy, and how HR leaders can earn the right to contribute meaningfully.
Step 1: Strategy Formulation – Defining the Organization’s Vision
Strategy formulation is the foundation of the strategic planning process. In this stage, leaders:
- Define the company’s mission and vision—What does the organization stand for? Where is it heading?
- Set long-term and short-term objectives—What specific business goals need to be met?
- Conduct an external and internal environment analysis—What factors will impact success?
HR’s role in participating in this phase requires:
Understanding the business landscape—Who are our competitors? What market trends are shaping our industry?
Knowing organizational financials—How do finance, sales, and marketing impact profitability?
Speaking the language of business—CEOs and CFOs talk in numbers, market share, and ROI—HR must do the same.
HR supports this phase by scanning the environment using strategic tools like SWOT Analysis, Porter’s Five Forces, PESTLE, and the Growth-Share Matrix. These help identify opportunities, threats, and workforce trends that may impact the company’s ability to execute its strategy.
Step 4: Strategy Evaluation – Measuring Results and Adjusting as Needed
A strategy is only effective if it delivers measurable results. Strategy evaluation includes:
- Assessing the results—Did the strategy achieve its intended objectives?
- Measuring performance—Using financial and operational metrics to track success.
- Comparing return on investment (ROI)—Was the financial investment in strategic initiatives worth it?
- Taking corrective action—Making modifications to improve strategy effectiveness.
HR contributes by:
Tracking HR metrics (turnover rates, engagement levels, talent acquisition success).
Providing workforce analytics to show how people-related strategies impact overall business performance.
Adjusting HR strategies (e.g., upskilling programs, retention initiatives) based on evaluation findings.
HR’s Role in Strategic Planning: Participate and Support
To participate in strategic planning, HR professionals must earn their seat at the table by:
Understanding the business, industry, market, and competition.
Knowing financials, sales, operations, and customer insights.
Developing expertise beyond talent management (A.R.M.—Attracting, Retaining, and Motivating employees).
If HR professionals only focus on administrative tasks, they will be invited only to take meeting notes and refill coffee. That is NOT where we belong!
To support the process, HR must:
Act as an advisor—Providing workforce insights and recommendations.
Ensure compliance—Aligning policies with laws and regulations.
Enhance employee engagement—Boosting productivity and innovation.
Drive change management—Facilitating communication and adaptation.
HR leaders who master these skills become strategic business partners, not just HR practitioners.
Conclusion: Strategic HR Equals Business Success
HR is no longer just about managing employees—it is about driving business strategy. If HR professionals fail to understand business operations, financials, and strategic decision-making, they will remain on the sidelines instead of being strategic contributors.
Successful HR leaders don’t wait for an invitation to the strategy table—they earn their seat by proving their business acumen, analytical skills, and strategic thinking. HR must go beyond administrative tasks and become an engine for business transformation. Because in the end, if we don’t adapt and evolve, we will be replaced by organizations that will.
Elga Lejarza
Founder & CEO
Lejarza Workforce Solutions
