I’ve seen time and time again how easy it is for leaders to get stuck in the weeds. Ticking off tasks, implementing processes, and focusing on execution without truly aligning with the bigger picture. But real strategic impact comes from shifting our perspective from an “inside-out” approach, where we start with internal priorities, to an “outside-in” approach, where we begin with a deep understanding of the business and its goals.
From Inside-Out to Outside-In
One of the most common mistakes I see is leaders starting with the to-do list rather than the business strategy. It’s understandable. There is always a long list of things to be done, and focusing on execution feels productive. However, if the execution isn’t aligned with what the business actually needs to thrive, then it’s just busy work.
Instead, we need to take a step back and ask some fundamental questions:
- What is the specific aim of your business, and what do you want to achieve?
- What phase is the business in? Growth, consolidation, or diversification?
- Who are the customers, and where does the business generate revenue?
- What external factors (eg market trends, competitor activity, regulatory changes) influence the business?
By starting with these questions, leaders can avoid falling into the trap of reacting to the noise around them. Instead, they can focus on building initiatives that will move the business toward its objectives.
How Do We Make Money?
A particularly crucial question is: How do we make money? It’s straightforward, yet this essential question often goes unasked. Understanding your company’s business model is vital in crafting a strategy that works. For example, are we making our money by offering services where people are the product? Think law firms, consultancies, or accountancies, where the value comes from expertise, charged by the hour. Or are we in the product business, where we innovate and produce tangible goods, which may bring their own set of challenges around cost and quality control? Understanding this distinction shapes everything, from resource allocation to hiring practices.
It might sound simple, but too often, companies can’t answer this question in clear terms. For example, a consultancy may not realise that 40% of their business is retainer-based while 60% is project-based or that they need to shift the balance to grow in one area over the other. It’s not just about understanding the numbers – it’s also about knowing where the revenue is coming from and how to prioritise strategies to scale the business.
When it comes to HR strategy, knowing how a business makes money and who its customers are is pivotal. HR’s role isn’t just about filling positions; it’s about aligning talent and development initiatives to ensure that the people who make the business’s product or deliver its service are supported and equipped for success. In other words, HR is not separate from the commercial heart of the business.
HR professionals must understand the core drivers of revenue so that they can attract the right people, invest in their development, and ensure their performance aligns with the company’s strategic goals.
What is the Current Business Model?
Understanding the business model also informs HR strategy. For instance, if your business relies on innovation and creating high-quality, technical products, HR must understand that innovation will be at the heart of the company’s strategy. This means attracting and retaining talent who are skilled in product development and fostering a culture that thrives on creativity and technical excellence. Alternatively, if your business thrives on services, HR’s focus may shift to developing customer-centric teams that are experts in the service areas that matter most to your clients.
In HR, it’s wrong to think of ourselves as a reactive support function. We are a strategic business partner. By tailoring HR initiatives to what the business needs to thrive – whether it’s innovating products, delivering services, or expanding into new markets – we are not just ensuring operational success; we are helping shape the business’s future. This commercial awareness builds credibility, positioning HR as more than a functional unit within the business. Instead, HR becomes an essential force that directly influences the company’s ability to succeed, adapt, and grow.
HR leaders must be able to answer the big questions about the business model. If they can’t clearly articulate how the company generates revenue and who their key customers are, they risk being disconnected from the broader strategic goals. Just as a marketing or finance leader must understand these fundamental drivers, so must HR professionals because everything they do should support and enhance the company’s path to growth and profitability.
In the end, the best HR strategy is one that is firmly aligned with the business strategy. When HR professionals understand the business’s revenue streams, its customer base, and its overall strategy, they can deliver initiatives that directly contribute to the company’s success.
Identifying Strengths, Gaps, and Priorities
Once we have clarity on the business’s objectives, the next step is to assess the current state. This involves conducting an honest and thorough analysis of where the business stands today and where it wants to go. To do this effectively, we need to ask some critical questions:
- What are the organisation’s strengths that can be leveraged?
- Where are the gaps that need to be addressed?
- Which areas require immediate attention to drive the most significant impact?
This process is not about criticising what’s not working. It’s about taking a step back and making informed, strategic choices that will move the business forward. It’s about prioritising and focusing on the initiatives that will deliver the most value. After all, not everything can be tackled at once, and spreading efforts too thinly can result in missed opportunities.
It’s also important to ask the hard question: What are we doing right now that doesn’t fit with where we’re heading? Deciding what NOT to do is just as important as deciding what to do. Sometimes, a business might have resources tied up in initiatives that no longer align with the strategic objectives. This is the time to decide whether to stop those projects, redirect resources, or even shift focus entirely. Strategy is as much about saying no as it is about saying yes. As one of my favourite strategy quotes goes: What do we need to say no to? It’s difficult, but it’s necessary. Refocusing on a key objective often means letting go of things that are no longer relevant, such as ceasing to support a certain market or winding down underperforming projects.
The ability to prioritise AND deprioritise is critical in this stage. Once we’ve identified the gaps and resources we need, we must ask: What do we really need to focus on? It could be a specific strategic goal or even a steady-state improvement, but it’s vital to pinpoint the top priority. This can often be identified by trusting our instincts. If you were to step away from all the formal documents and strategy plans and ask, “What’s the one thing that would make the biggest difference to this business?” That’s likely to be your focus area.
A great exercise to facilitate this prioritisation is the “magic wand” question: If I handed you a magic wand, what would you change to make the biggest impact? The answer to that question will often reveal the fundamental issue that’s blocking progress or holding back success. By focusing on solving that one key challenge, the business can make significant strides toward its objectives.
This process of honest assessment and prioritisation is vital because it helps clarify the core issues and drives the business toward its most important goals. With a clear understanding of what the business needs, it’s much easier to align resources, efforts, and strategies to ensure success.
The Power of Quick Wins
Momentum is critical in strategy execution. While it’s important to have a long-term direction, we also need quick wins – simple, impactful initiatives that generate early success. These wins provide motivation, demonstrate progress, and help to build credibility and buy-in across the organisation.
Quick wins are sometimes referred to as ‘low-hanging fruit’. These are initiatives that are easy to implement but still offer significant value. They might involve streamlining an inefficient HR process, improving communication between teams, or implementing a small but impactful policy change. These wins don’t require extensive resources or time but can make a noticeable difference in the day-to-day functioning of the business. The key is to identify initiatives that strike the right balance between being easy to execute and generating positive results quickly.
It’s important to evaluate potential quick wins based on their feasibility and impact. While some initiatives may be simple to implement, others may take longer to yield results. It’s essential to weigh the short-term benefits against the time and effort required to see meaningful outcomes. If a project, whether a quick win or a long-term effort, doesn’t promise significant results, it shouldn’t be prioritised.
Focus on what will genuinely contribute to the business’s success.
A helpful approach to gaining traction on a strategy is to ask critical questions before diving in: What’s the easiest change we can make that will still drive positive results? and Where can we make a quick impact without overextending resources? These questions help focus efforts on initiatives that will generate momentum while still aligning with the broader strategy.
Keep It Simple: Strategy on a Flip Chart
One of my favourite exercises is challenging leaders to explain their strategy with just a pen and a flip chart. If you can’t distil your strategy down to this level of simplicity, it’s probably too complicated. This exercise really highlights the importance of clarity and focus in strategy development.
In the early days of my career as a strategist, I remember receiving long, detailed strategy documents, sometimes 40 pages or more, filled with data, graphs, and various analyses. The moment I saw these lengthy reports, I always wanted to know the core messages.. My first question would always be: “Okay, but what’s the answer? What are the 3-5 key takeaways?” I realised that if they couldn’t articulate the core messages quickly and simply, then the strategy itself might be too complex or unfocused.
When leading a team, I would challenge my team members in the same way. I would ask them to distil the strategy down to its essence: If you had to explain it to me in just a few minutes, using nothing but a flip chart and a pen, what would you say? If they couldn’t do it, I knew we had to simplify things.
A great strategy is one that is:
- Clear: Everyone in the organisation should be able to understand it easily. If it’s not clear, it’s likely to get lost in complexity.
- Focused: A strategy should highlight the most important priorities rather than trying to cover everything under the sun. It’s about identifying the key initiatives that will move the business forward, not about listing every task the function delivers.
- Actionable: The strategy should translate into tangible steps that teams can take, enabling them to move forward with clear direction and purpose.
In practice, simplicity is key. You may have a 40-page document packed with details, but if you can’t express the core of your strategy in three clear bullet points, you’re likely to overwhelm your stakeholders and detract from focus.
One of the most powerful tools I use is to ask: If you could only focus on one thing, what would it be? It forces leaders to prioritise and really think about what is truly essential.
Of course, in some cases, detailed documentation is necessary, but the ability to boil down your strategy to its core elements on a one-pager is a sign of strength. Think of it like the “genie in a bottle” exercise: If you could only have three wishes, and your third wish cannot be ‘an unlimited number of wishes,’ what would your three wishes be? This helps push the boundaries of thinking and ensures you’re not spreading yourself too thin.
Stepping Away from the To-Do List
The most important shift we need to make is stepping away from the to-do list mentality. Strategy isn’t about checking off tasks – it’s about making meaningful, focused decisions that drive business success. Many leaders fall into the trap of feeling productive simply because they are busy, but true productivity comes from knowing that the work being done is moving the business in the right direction.
By focusing on business objectives, prioritising key areas, and maintaining a clear and simple approach, we can create strategies that genuinely move the needle.
For further insights on how to develop effective HR strategies, be sure to listen to the full podcast episode. You’ll hear more actionable advice and real-world examples that can help you sharpen your strategic thinking and drive your business forward.
HR Strategy Consultancy with Gemma Bullivant
Creating a strong HR strategy isn’t just about ticking boxes – it’s about making sure your people initiatives genuinely support your business goals. That’s where I come in. With years of experience helping businesses shape their HR strategies, I take a practical, no-nonsense approach to making HR a real driver of success.
I work with leaders to cut through the noise, focus on what really matters, and build strategies that are both realistic and impactful. Whether you need help aligning HR with your business objectives, tackling specific challenges, or figuring out where to start, I’m here to help. Let’s have a conversation and see how we can make your HR strategy work for you.
