build a better hr scorecard colorado shrm human resources conference 1

Build a Better HR ScorecardColorado SHRM Human Resources Conference

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© ModernThink LLC 2012. All rights reserved.

Session Objectives

Define balanced scorecard and list reasons HR should adopt its use

Identify the components within the HR balanced scorecard

Identify what might be missing in your current scorecard

Start building your own HR balanced scorecard

Understand how to use your HR balanced scorecard to drive superior performance within your department

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The measurement challenge - -

How can we ensure HR is AT the table, not ON the table?

The HR Scorecard, Beckler, Huselid and Ulrich

HR as a strategic partner

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Yes56%

No40%

Not Sure4%

HR Departments with a Strategic Plan

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Yes96%

No2% Not Sure

2%

HR Strategic Plan Aligned with Organization Plan

5


Vision &

Strategy

Financials

Internal Processes

Learning & Growth

Customer

Balanced Scorecard

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Balanced Scorecard Basics

“The balanced scorecard translates an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system.”

Robert Kaplan and David Norton

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Vision & Strategy

Vision & Strategy

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Strategic Focus

HR Competencies

HR Deliverable

s

HR Systems

HR Practice

HR Balanced Scorecard

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Turnover

Cost per hire

Training/development hours, cost

Training ROI

Workers comp cases

Percent meeting performance goals

PE’s meeting deadline

What are you measuring?

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We’ve always measured it

Someone asked me to measure this

It was easy to measure

It’s important to HR

It’s important to the business

It supports our vision and mission

Why are you measuring it?

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Link measures to strategy

What is the vision for the future?

If this vision succeeds, how will we look?

What are the critical success factors?

What are the critical measurements?

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Yes49%No

48%

Not sure3%

Established Method to Measure Effectiveness of HR Strategy with Metrics

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HR department is not able to directly measure HR's impact on the bottom line

HR department focuses more on adminstrative duties rather than strategy

HR department lacks an established method for measuring the effectiveness of HR strategy

through metrics

24%

31%

35%

54%

55%

43%

22%

14%

22%

To a large extent To some extent To no extent

Factors that Limit HR’s Contribution to Bottom Line

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Grow Revenues

Develop Innovative Drugs

Utilize Innovative R&D Scientists

Hire Innovative R&D Scientists

Strategy map

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HR Competencies• What does HR need to know to properly recruit and assess talent?

HR Systems /Alignment• How does the R&D department feel HR has done hiring previous

candidates? Have we developed a model together to follow? HR Efficiency/Practices

• Cost per hire HR Deliverables

• Turnover percent for R&D Scientists

Linking measures to strategy

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Define service and validate customer expectations

Compile and analyze information

Review past performance

Develop service standards – set accountabilities

Measure, report, assess performance, make changes

Building good metrics

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Be SMART…

Specific

Measurable

Achievable

Results oriented

Time-bound

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HR Deliverables

Ask your customers…• What do we do well?• Where could we improve?• Does someone provide better service?• If so, what do they do?• What could we improve that would put us ahead of

competitors?• What would make your job easier?

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HR Practices

What do we do well?

Where are we most efficient?

What enables this efficiency?

What efficiencies do our competitors have that we don’t?

What could we improve that would put us ahead of competitors?

What would make our jobs easier?

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HR Competencies

What skills and tools will employees need to reach their goals?

What makes our employees better or different than those in other companies?

How can we prepare our people to lead in the future?

What skills and abilities should we improve for the future?

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HR Systems

Do our systems align with the organization?

How can we integrate our systems with the organization?

What is our firm’s focus on operational excellence, innovation or customer intimacy?

What is our firm’s culture and how does it affect how we perform our jobs ?

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Implement

Who will lead the change and be responsible?

What will you do to share the information?

What will this look like when you are done?

Who else needs to be involved?

How will we move forward?

How will we determine if the new scorecard is successful?

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Living the change

Maintain your metrics

Discuss at every meeting

Tweak, amend, add or delete as necessary

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Benefits

Better understand the impact of HR on the company vision and strategy

Identify opportunities for professional development and training

Link HR activity to strategy

Evaluate value of activities

Adopt industry best practices

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Q & A

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build a better hr scorecard colorado shrm human resources conference 1

Documents

strategy16 modernthink

metrics13 modernthink

line14 modernthink llc

strategy map15 modernthink

hr efficiencypracticescost

hr departments

hr deliverablesask

hr competencieswhat