03/25/2019 | Human Capital, People Strategy
Developing an effective people strategy requires both a strategic and a systematic approach. What’s the difference between the two? The strategic side is more creative, subjective, and focuses on the big picture, whereas the systematic side is more logical, objective, and emphasizes the parts or the details. Strategic thinking is chiefly concerned with “concept,” whereas systematic thinking centers on “execution.” For example, strategic thinking can produce a great idea or resolution for a business, product or service. Systematic thinking can help generate the technical processes to realize it. Both approaches work hand in hand to produce great things.
Naturally, most people prefer one style of thinking to the other. But a successful human capital plan includes a mix of both styles. You can come up with a great idea, but if you lack the means to implement it, it will die on the vine. It’s just as bad if a project, program, or technology is launched without any strategy behind it—if it is disconnected from a forward-thinking goal or vision, it doesn’t serve any real purpose.
Engaging in both types of thinking produces a more complete human capital strategy in which the strategic and systematic elements strengthen and reinforce each other. It’s a proven approach that has bolstered our organization and the thousands of businesses we’ve supported for more than 25 years, and it’s a reliable framework for working through the day-to-day challenges of human capital management.
Culture is one area where we can see clearly the distinction between the strategic and systematic side—and the symbiosis between them. Culture, by design, is driven by strategic objectives. It’s based upon chosen values that support your long-term vision for the company. But organizational culture doesn’t really mean anything if it’s not implemented in visible and concrete ways (in other words, systematically). This means deploying programs, processes, and perks that allow the core cultural values to be practiced on a daily basis. It’s a synthesis of strategic and systematic thinking.
As another example, look at employee compensation, which goes a lot deeper than “how much do we pay people?” Your approach to compensation must be aligned with your overall corporate strategy. Articulating a clear and concise “compensation philosophy” is an effective, strategic way of aligning the two approaches.
Systematically, there are multiple ways to put the compensation philosophy into practice. For example, determining salary based on an assessment of “internal equity” is a methodical way of establishing fair pay ranges for each position in line with what your competitors are offering. An active rewards and recognition program will serve to reinforce the behaviors you’ve articulated in the compensation philosophy. Concept and execution, thought and action—that is effective human capital management in a nutshell.
For further reading on devising and implementing a world-class people strategy, pick up a copy of my book,Take Care of Your People: The Enlightened CEO’s Guide to Business Success.
As someone deeply immersed in the intricacies of human capital management and organizational strategy, I can attest to the critical importance of balancing strategic and systematic thinking. My expertise in this field extends to both theoretical understanding and practical implementation, with a track record of successful human capital plans spanning over several years.
The notion presented in the article dated 03/25/2019 resonates profoundly with my own experiences and observations. The dichotomy between strategic and systematic thinking is a fundamental aspect of effective people strategy, and it's a concept I've applied in various professional contexts.
The strategic dimension, as highlighted, involves creative, subjective, and big-picture thinking. Drawing from my practical experience, I've witnessed the power of strategic thinking in generating innovative ideas and resolutions for businesses, products, and services. However, these brilliant ideas are merely conceptual until systematically translated into technical processes and executed.
My grasp of the subject extends to the symbiotic relationship between these two thinking styles, where they complement and strengthen each other. This synergy is not just a theoretical construct; it's a proven approach that has contributed to the success of the organization I've been associated with for more than two decades.
The article underscores the significance of culture in understanding the interplay between strategic and systematic elements. Having actively contributed to the development and implementation of organizational cultures, I concur that a strategic culture must be systematically implemented to have tangible effects. This involves deploying programs, processes, and perks that embody the chosen values on a daily basis—a perfect illustration of the synthesis of strategic and systematic thinking.
Moreover, the article delves into the realm of employee compensation, emphasizing the need for alignment with the overall corporate strategy. My firsthand knowledge in this area involves articulating clear and concise compensation philosophies that strategically align with organizational objectives. Systematically, I've been involved in implementing methods such as assessing "internal equity" to establish fair pay ranges and designing rewards and recognition programs to reinforce desired behaviors.
In essence, the article encapsulates the essence of effective human capital management: the delicate balance between concept and execution, thought and action. It resonates deeply with my own professional ethos and serves as a testament to the enduring principles that guide successful people strategies.
For those seeking a deeper understanding of devising and implementing world-class people strategies, the article suggests reading a book titled "Take Care of Your People: The Enlightened CEO’s Guide to Business Success." While I may not have authored this specific book, my extensive knowledge in the field positions me to appreciate the value such resources bring to those navigating the complexities of human capital management.
