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Measuring HR Strategic Alignment Through The HR Scorecard 1232671113902404 3
Measuring HR Strategic Alignment Through The HR Scorecard 1232671113902404 3
Measuring HR Strategic Alignment Through The HR Scorecard 1232671113902404 3
HR as an administrative function vs. HR as a strategic partner capable of enhancing the organizations performance
HR as a strategic asset
New HR Focus: multiple levels of analysis: individual, team, organization Alignment of HR systems with the companys strategy How can HR play a central role in implementing the organizations vision & strategy? How do people create value for the organization? Ho do we measure such value-creation process?
HR as an investment, not an expense Conventional accounting was created at a time when tangible capital (financial & physical) was the primary source of profits.
Today: Intangibles such as human capital are the primary source of profits.
HR ARCHITECTURE
HR FUNCTION HR professionals with strategic competencies (delivery of HR services in a way that supports the implementation of the firms strategy HR SYSTEM High-performance, strategically aligned HR policies & practices EMPLOYEE BEHAVIORS Strategically focused competencies, motivations, and associated behaviors
HR Practice
No. of training hrs. for new employees Percentage of employees receiving a performance appraisal No. of employees per HR professional
Bottom 10%
35 41%
Top 10%
117 95%
254
140
4%
30%
HR alignment
Results
_ _ Behaviors
CUSTOMER RETENTION
Customer
SUPERIOR CUSTOMER SERVICE
CUSTOMER SATISFACTION
CONVENIENCE
SUPPLY-CHAIN MGMT.
PRICING
RELIABLE EMPLOYEES
TRUSTWORTHY SUPPLIERS
BALANCING COST CONTROL AND VALUE CREATION: THE HR SCORECARD 1. Do you want HR to be perceived as a cost control or as a value creation unit? 2. What gets measured gets managed. 3. If you measure only HR costs, your unit will be treated as a commodity without strategic value. 4. HR must control costs, but also create value. 5. Examples of instances where value was lost due to costcontrol efforts? (throw the baby with the bath water)
2.HR doables: HR efficiency & activity counts. 3.HR performance drivers: core people-related capabilities or
assets.
HR enablers
HR performance drivers
HR Deliverables
Strategy implementation
HR Doables
Impact
DISTINGUSHING AMONG HR PERFORMANCE DRIVERS (PD), DELIVERABLES (DE), DOABLES (DO), ENABLERS (EN)
SURVEY SAYS
Measure
Average time for dispute resolution Cost per trainee hour Cost per hire
PD DE DO EN
IN CONCLUSION
People can be our most important asset if we make the HR function our strategic partner