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Strategic planning is a process that involves describing the organization’s destination, assessing barriers that stand in the way, and deciding how to move forward. The mere presence of a strategic plan does not guarantee that this information will be used effectively as part of the performance management system.

To be most useful and impactful, an organization’s performance management system must rely on its strategic plan. Job descriptions, which serve as roadmaps for what individuals are supposed to do and what results will be produced, must be aligned with the vision, mission, objectives, and strategies of the organization and unit. Job descriptions, which serve as roadmaps for what individuals are supposed to do and what results will be produced, must be aligned with the vision, mission, objectives, and strategies of the organization and unit.

The HR function can be a good conduit to communicate the various components of the strategic plan (e.g., mission, vision, and objectives) to all employees. The HR function, through work analysis, understands the KSAs needed for successful implementation of the strategic plan. They can offer suggestions about what types of employees should be hired and what training put in place. In addition to serving as a necessary guide for individual and team performance, clarity around mission and vision shows HR how to design the performance management system.

Knowledge of the vision and mission results from the strategic planning process. This allows the HR function to serve as an internal consultant and make informed decisions about performance management design choices.