FOUNDATION: FORM A CONTRACT
The contract is the most critical element of the strategic and HR planning integration process. A contract represents clear understanding of what all the different parties to the process expect of each other and the desired outcomes of the effort. Two contracts may be formed. First, between HR and strategic planners, a contract may be formed that highlights the goals, needs, and desired relationship which can be formed. This contract emerges as strategic and HR planners focus their work activities on meeting both customer and employee needs through the five stages shown in Exhibit 3. This contract comes from sharing information about customer and employee expectations, clarifying plans, meeting to discuss points of possible integration, and forming task forces on business planning which focus on both strategic and organizational capabilities. A second contract may be formed between the strategic and HR planners and general managers. This contract enables the planners to contract with the general manager about how plans will be developed and implemented within the business. As strategic and HR planners jointly approach general managers with planning agendas, general managers understand the importance of using strategic and HR plans to create unity between customers and employees.