Build a Better HR Scorecard Colorado SHRM Human Resources Conference 1.
Transcript of Build a Better HR Scorecard Colorado SHRM Human Resources Conference 1.
Build a Better HR ScorecardColorado SHRM Human Resources Conference
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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
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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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