Towards an Understanding of HRDLean Strategy Linkages: A Multicase Study of Four U.S. Based Firms

• Author: Meera Alagaraja,Richard W. Woodman,Toby Marshall Egan
• Date: 01 December 2017
• DOI: http://doi.org/10.1002/hrdq.21292
• Published date: 01 December 2017

HUMAN RESOURCE DEVELOPMENT QUARTERLY, vol. 28, no. 4, Winter 2017 © 2017 Wiley Periodicals, Inc.

Published online in Wiley Online Library (wileyonlinelibrary.com) • DOI: 10.1002/hrdq.21292 553

QUALITATIVE STUDY

Towards an Understanding of

HRD Lean Strategy Linkages:

A Multicase Study of Four U.S.

Based Firms

Meera Alagaraja , Toby Marshall Egan , Richard W. Woodman

The link between HRD and Lean strategy is not well explored in the

existing literature and lacks empirical depth regarding how the two

conceptual domains are connected. Specifically, we focus on the role of

HRD in organizations undergoing Lean strategy implementation. We

adopt a qualitative multicase study approach and identify ways in which

organizations develop HRD and Lean strategy linkages (HRD Lean).

Building on previous research, we investigate four firms, all involved in

the implementation of Lean strategy, and present a three-phase emergent

model that reflects our study findings regarding the distinct HRD Lean

linkages developed in these organizations. The model representing the

case study data identifies sense making, alignment, and value-enabling

mechanisms as three distinctive outcomes that enhance the value of HRD

in Lean strategy implementation. The strength of the HRD Lean linkages

demonstrate the value of integrating HRD with Operations for sustaining

unit-level performance and positively influence the perceptions of HRD

contributions to organizational strategy in general. The implications for

enhancing the role of HRD in organizations implementing strategy are

explored.

Key Words: HRD Lean, lean strategy, strategic HRD, strategy implementation

Within the HRD literature, alignment between HRD and core business strate-

gies has been emphasized but explored infrequently (e.g., Alagaraja & Egan,

2013 ; Anderson, 2009 ; Semler, 1997 ). Even though many scholars have

suggested the importance of HRD to organizational strategy (e.g., Garavan,

2007 ; Torraco & Swanson, 1995 ) and the value of HRD strategy to firm

554 Alagaraja, Egan, Woodman

HUMAN RESOURCE DEVELOPMENT QUARTERLY • DOI: 10.1002/hrdq

performance, the empirically based HRD literature is limited in explicating

whether and/or how organizations integrate HRD in the formulation and

implementation phase of a specific business strategy. At present, it is unclear

as to how HRD may support or fail to support organization-wide strategy

(Gao, 2011 ; Poell, Rocco, & Roth, 2014 ; Short, Bing, & Kehrhahn, 2003 ) and

the extent of its influence in shaping the course of strategy implementation

such as Lean. Developing such an understanding will further clarify the value

of aligning and integrating HRD in organization-wide change efforts.

There is general agreement on the transformative role of HRD for enhanc-

ing firm performance (Gold, Holden, Iles, Stewart, & Beardwell, 2013 ; Leng-

nick-Hall, Lengnick-Hall, Andrade, & Drake, 2009 ; Poell et al., 2014 ; Teo,

2002 ). According to Garavan and Carbery ( 2012 ), HRD is concer ned with

the “long-term development of human resources in organizations; it is a

shaper of business strategy in addition to its role in strategy implementation;

it emphasizes learning for the purpose of performance; it utilizes a multiplic-

ity of strategies to facilitate performance, learning and change in individu-

als and organizations; and it is continuously aligned with the strategic goals

of the organization” (p. 23). What remains lacking, however, is a systematic

empirical understanding of how organizations can gainfully combine and uti-

lize strategic HRD perspectives during the implementation of a company-wide

business strategy.

Because the inter nal operating environment of organizations in terms of

leadership, structure , and culture is diverse and unique, the utilization of stra-

tegic HRD to achieve organizational goals also varies, including approaches

that positively impact HRD-related outcomes such as organizational learning

culture (Egan, Yang, & Bartlett, 2004 ). By explicitly considering the role and

extent of HRD involvement, we attempt to expand the understanding of the

effects of utilizing HRD during organizational strategy implementation. It is

important to note that strategic HRD discussions are commonly focused on

strategy within the learning and development function of an organization and

generally involve the use of HRD tools such as training, e-learning, and orga-

nization development (e.g. , Garavan, 2007 ; McCracken & Wallace , 2000 ).

This is consistent with the operational definition of organization-level HRD

utilized—“HRD is a process for developing and unleashing human expertise

through organization development and training and development for the pur-

pose of improving performance” (Swanson & Holton, 2001 , p. 4). Although

HRD is defined in a variety of ways (Woodall, 2001 ) , this definition best fits

the extant HRD professional practices and overlapping features of the four

organizations participating in this study. The focal firms often emphasized

training, which commonly “constitutes a major part of human resource devel-

opment activities” (Werner & DeSimone, 2012 , p. 12).

The purpose of this study is to identify the contributions of HRD

to the implementation of organizational strategy. In the selected case

HRD Lean Strategy Linkages 555

HUMAN RESOURCE DEVELOPMENT QUARTERLY • DOI: 10.1002/hrdq

examples exploring the role of HRD in strategy deployment, Lean strategy

implementation was the focus for all four participating organizations. We

are particularly interested in the HRD-linkage-to-Lean-strategy implementa-

tion and use the abbreviation “ HRD Lean” to parsimoniously represent this

concept. Lean strategy is a systemic, organizational - level approach aimed

toward waste elimination in core processes, products , and services to opti-

mize operational and organizational performance (Hines, Holweg, & Rich,

2004 ) . Lean strategy builds on methods, tools , and knowledge derived over

decades of collective, systematic efforts focused on operational improvement

research and implementation—from the early work of Deming ( 1986 ) and

Juran ( 1964 ) to the implementation of Baldrige (Hart & Bogan, 1992 ) and

ISO 9000 standards (Naveh & Marcus, 2004 ). While initial efforts to deploy

Lean strategy primarily involved manufacturing processes, Lean strategy may

be applied far beyond process improvement, as it can be used to innovate in

all areas of organizations and across sectors (Aberdeen Group, 2015 ; Hines

et al., 2004 ).

Because of the broad strategic lens and systems approach, Lean strat-

egy implementation is ideal for examining the deployment of organizational

strategy. Despite the use of Lean strategy as a core approach by 71.3% of

28,000 U . S . organizations recently surveyed and the importance of training

and HRD - related functions to successful Lean strategy implementation (Aber-

deen Group, 2015 ; Compdata, 2016 ), little mention of Lean strategy can be

found in HRD - related literature.

Using an explorator y multicase study research design, we investigated

the role of HRD within four organizations sharing a similar industry focus

and undergoing the process of implementing a Lean strategy. Along with reg-

ular access to company briefings and related meetings, and examination of

hundreds of pages of related documents, 60 senior executives and manag-

ers, participated in the study involving in-depth interviews. Study results and

case analyses provided in a final presentation with top executives from each

organization and leader feedback contributed to confirmation and verifiability

of study results. Thorough examination of these four organizations, all imple-

menting Lean strategy, clarified linkages between HRD and organizational

strategy that promise to further explicate and contribute to an evidence-base

regarding the roles and impact of HRD for organizational strategy and strategy

implementation.

Our study findings elucidate the essential contributions of HRD to strat-

egy implementation in general and alignment of HRD function to business

strategy. The research presented has particular import for practice and has

potential to advance related theory and theory building. We begin framing

the study with key literature followed by elaboration regarding study pro-

cedures and findings. Our analysis and recommendations inform HRD and

organizational strategy by demonstrating several approaches to linking HRD