Understanding Terms of Reference and Their Strategic Importance

At Level 7, research projects are expected to do more than generate academically sound findings — they must connect people practice to organisational priorities in ways that command senior stakeholder attention. This video addresses AC 1.1 of 7CO04 by focusing on the nature and purpose of terms of reference as a foundational construct in business research. It covers what terms of reference encompass, including the research aim, objectives, scope, key definitions, constraints, and deliverables, and frames them not merely as an administrative project specification but as a form of contract between the researcher and the organisation, establishing mutual expectations and accountability.

A significant portion of the video is devoted to the concept of strategic alignment and what it means for terms of reference to carry genuine organisational value. The video distinguishes between operationally focused and strategically focused research aims, using people practice scenarios — including talent acquisition and workforce dynamics — to illustrate how the same broad subject area can be framed at very different levels of strategic relevance. The question of organisational buy-in and research implementation sits at the heart of this discussion, with the video examining the conditions under which research findings are acted upon rather than set aside.

The video also addresses how value creation functions within a research context, including improved decision-making capability, enhanced understanding of workforce dynamics, cost identification, the development of new people management approaches, and the strengthening of organisational capability. These are examined in relation to what justifying terms of reference actually requires at Level 7, where the connection between a people practice research focus and broader business strategy, performance outcomes, or competitive positioning must be made explicit from the outset.