Building Business Value Via Strategic Human Resource Management

The work of Human Resource management is of greatest value when it enables the strategy of the business. HR guru David Ulrich (1) states: “HR should not be defined by what it does but by what it delivers – results that enrich the organization’s value to customers, investors, and employees”.

What is strategic human resources management? HR strategy creates a framework/ blueprint to support business objectives with systems, processes and programs designed to achieve enhanced organizational performance as seen in this diagram below:

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By creating systems to achieve better organizational performance, strategic human resource management promotes the following benefits:

  • Talent Outcomes: Lower turnover, reduced absenteeism, increased job satisfaction, and higher employee commitment / engagement
  • Organizational Outcomes: Heightened productivity, collaboration, quality, service levels, efficiencies, and customer satisfaction; improved bench strength and depth (succession planning)
  • Financial Outcomes: Higher profits, sales, return on assets, and return on investment
  • Capital Market Outcomes: Increased market share, valuation, stock price, and growth

If your organization is challenged in any of these areas, call Kevin Shane for a complimentary discussion.

Kevin Shane is a Partner at Newport, LLC, and Chairs the Human Capital Practice for the Mid-Atlantic Region. Schedule time with Kevin at


(1) David Olson Ulrich (born 1953) is a university professor, author, speaker, management coach, and management consultant. Ulrich is a professor of business at the Ross School of Business, University of Michigan and co-founder of The RBL Group.


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