Volkswagen Harvard Case Study

The McKinsey 7S framework says that strategy is defined as a coherent set of actions aimed at gaining a sustainable competitive advantage over competition improving position vis-a-vis customers and allocating resources. Even the most basic definition of any business strategy the need to manage resources is always seen most prominently. In this age where technology is in the hands of every person and organization differentiation is achieved solely through the kind of people the organization has. The most valuable resource for any firm is the human capital it possesses.

The role of the HR Department has improved over the years from a mere assisting nature to handling the most precious resource of the company in a definitive manner to achieve

The company realized that it had to change the way its strategy was formed. The strategy was situational and operational and it frequently fluctuated and varied across departments. This was changed to a single uniform strategy implemented across departments and communicated to all in a simple and interesting manner. Innovative techniques like live LCD screens, mascots and comic strips were used to communicate the strategy to employees regularly. This made the employees identify with their role and understand their aims both long term and short

Strategy should be linked to existing HR programs for performance management.

Personal relevance can only bring strategy to life. This is the key challenge for the HR Department. When this is attained only then can we say that the HR Department is functioning like a business process in itself. Sustained communication uses different channels to get the message across. Different way like regular staff meetings, intranet, CEO or leaders visiting and meeting, newsletters and informal discussions like lunches etc. can be used to reiterate the individual strategy for the employees. This gives a feeling of inclusiveness and better connection is established between the employee and company.

The main impact area, which makes HR professionals a strategic partner, is talent management. In all phases—recruitment, training, development, retention, and performance planning—human resources plays a vital role in fulfilling strategic goals.

It is thus important to align the recruitment and selection, training and development, employee compensation and performance management functions similarly. This gives relevance to the employees and brings the strategy to functional