An evidence‐based approach to developing HR strategy: transformation in Royal Mail

Abstract

PurposeThis case study aims to describe the benefits of an evidence‐based, metrics‐driven approach to formulating HR strategy.Design/methodology/approachThe approach taken to developing the HR strategy at Royal Mail Letters involved five phases: identifying the priorities for the HR strategy based on key business objectives; conducting an analysis of the current state in the organization; developing the HR strategy supported by robust analysis; reviewing the proposed approach against data and with key stakeholders; and finalizing the HR strategy.FindingsFour factors were key to successfully delivering a successful HR strategy: identification of the right metrics; engagement with and facilitation across stakeholders; adopting a robust, evidence‐based approach; and adopting a business rather than HR focus.Practical implicationsFirstly, HR functions need the requisite analyst skills, combining “hard” data analysis relating to financial and operational performance measures alongside “soft” analysis of data such as employee opinion and assessment results. Secondly, understanding of the wider business strategy is critical. To act as a strategic partner, proactive engagement across stakeholders is vital. The credibility of HR in the business then flows from a reputation for robust analysis.Originality/valueThe paper outlines in practical terms how an HR strategy can be developed that is fundamentally based in the business strategy and uses objective analysis to help achieve a consensus among key stakeholder groups as the basis for action.