HR SCORECARD

Presented By ADEEL TARIQ

MOBASHIR ALI

SEQUENCE

Introduction Tangible Vs Intangible Assets Tracking HR Effectiveness Effective HR Measures Balanced Scorecard HR Deliverables Lagging Indicators Leading Indicators HR Scorecard Creating HR Scorecard HR Dashboard Conclusion

INTRODUCTION
New economic paradigm characterized by Speed,

innovation, quality and customer satisfaction Essence of competitive advantage shifted from tangible to intangible assets Focus on human capital and its effective alignment with overall organizational strategy HR Scorecard measurement/ evaluation system for redefining the role of HR as a strategic partner Based on Balanced scorecard developed by Kaplan and Norton HR transformed from administrative to strategic role Challenge for managers to make HR a strategic asset HR scorecard is a lever that enables managers to do so

TANGIBLE VS INTANGIBLE ASSETS

WHY TRACK HR EFFECTIVENESS?

To Guide Decision Making

It helps HR staff in how best to manage the HR system to support the company.

To Evaluate Program/Department Effectiveness

It constitutes a report card to guide improvement efforts.

EFFECTIVE HR MEASURES

Identify a clear, consistent, and compelling connection between the companys strategy and the work of each employee.

Focus on the critical few measures that have the greatest impact on the companys bottom line. Document the effects of HR on company performance in credible ways that employees, line supervisors, and managers can understand.

BALANCED SCORECARD
Kaplan and Norton model (1996)
Customer perspective Corrective activity Developmental activity Balancing compliance with added value Financial Measures Key performance ratios Financial health Balancing leading with trailing indicators

Balanced Scorecard
Learning and growth People measures Knowledge measures Balancing soft and hard indicators

Business Processes Drumbeat Time, cost, quality Balancing inputs and outputs
HR Function Fits Here as HR Deliverables

HR DELIVERABLES

HR Performance Drivers

Determines the results Unique to the firm Identification and direct integration into performance criteria e.g employee productivity

HR Enablers

Reinforce the core performance drivers Strategy implementation impossible without properly aligned enablers For employee productivity enabler could be training

LAGGING INDICATORS

Lagging indicators are outcome measures that help you gauge your HR progress by examining the final end result or outcomes of your collective efforts.

Use of the lagging term reflects the delay or gap between your actions and a change in the final end result.

Non-HR Example
Economy GNP growth, national debt,

unemployment rate, etc.

HR Examples

Employee retention. Employee performance. Employee productivity.

LEADING INDICATORS
Leading indicators are process measures that help you

gauge incremental progress you are making toward key HR outcome (lagging) measures.
Since leading indicators measure the results from your processes, there is less of a delay between your actions and a change in the system. They are the performance drivers the key factors that enable the overall end result (outcome) you want to achieve.

Non-HR Examples
Economy capital equipment purchases,

layoffs, stock market value, confidence, exchange rates, etc.

public

HR Examples
A reduction in absenteeism in key positions. % increase in internal people expressing

interest in position

HR SCORECARD

Measures effectiveness and efficiency of HR functions in producing the employees behaviors required to achieve organizational strategic aims

Focuses on leading indicators Identifies the differences between HR doables and HR deliverables Demonstrates HRs contribution to strategy implementation and to the companys bottom line

Helps HR managers focus on and manage their strategic responsibilities

Encourages HR flexibility and change.

CREATING HR SCORECARD
The 10-Step HR Scorecard Process

Define the business strategy

Identify required HR policies and activities

Outline value chain activities

Create HR Scorecard

Outline a strategy map

Choose HR Scorecard measures Summarize Scorecard measures on digital dashboard

Identify strategically required outcomes Identify required workforce competencies and behaviors

10

Monitor, predict, evaluate

OUT LINE VALUE CHAIN AND STRATEGY MAP

Value chain analysis

A tool for identifying, isolating, visualizing, and analyzing the firms most important activities and strategic costs Identifying the primary and crucial activities that create value for customers and the related support activities

Strategy Map A diagram that summarizes the chain of major inter related activities that contributes to a company's success

STRATEGY MAP

IDENTIFYING WORK FORCE REQUIREMENTS AND STRATEGIC OUTCOMES

IDENTIFYING COMPETENCIES, SYSTEMS, PRACTICES

HR Systems Alignment with Strategy Internal HR Alignment Matching HR Strategy to Company Culture HR Competencies Operational Efficiency High Performance Work Sys Employee Relations Strategy Execution

HR Strategic Focus

HR Deliverables High Employee Satisfaction High Customer Satisfaction Low Key Staff Turnover Knowledge Growth

HR Practices Recruitment & Selection Employee Orientation Performance Measurement Training & Development

CREATE HR SCORECARD

NOT CLEAR WHAT TO ADD HERE

NEED YOUR INPUT

HR SCORECARD MEASURES

Review existing measures and identify their strengths and weaknesses

Identify corporate goals and HRs contribution toward these goals

Create a customer diagram and list of results HR produces to support the organization Define measures for each result Define levels of goals for each measure Define two tracking reports to communicate actual vs. planned performance.

HR DASHBOARD
A picture is worth a thousand words sums up the purpose

of HR Dashboard.
An HR Dashboard presents the manager, via a PC desktop

screen containing graphs and charts , with a birds eye view of how the HR management function is doing
Summarizes how core measures from HR scorecard are

doing

SUMMARIZING MEASURES ON DASHBOARD

QWL Score Core Values Overall Job Satisfaction

CONCLUSION
HR Scorecard Enables Managers to Understand how to

Align HR Strategy with Overall Business Objectives

Tracking and Performance Evaluation Of Business

Strategies
HR Scorecard a Tool to Ensure Continued Learning

and Change Management

THANKS