THE HR SCORE CARD

MEGHNA HARIDAS

INTRODUCTION
Competitive advantage shifted to intangible
assets
Senior management is sceptical of HR
department
Difficult to measure
Human capital a strategic asset

THE HR ARCHITECTURE AS A STRATEGIC

ASSET
HR function
Two major functional categories
-Technical
-strategic

HR SYSTEM
Link selection an promotion decisions with
competency model
Develop strategies
Enact compensation and performance
management policies that attract high
performance employees

HR SYSTEM
Alignment of all HR parts
The alignment process
Identify kind of value

EMPLOYEE BEHAVIOUR
Core behavior
Situation specific behavior

THE BALANCE SCORE & BALANCED PERFORMANCE MEASUREMENT

What is balance scorecard

Strategic implementation process
- Breadth
- Causal flow
communication

The Seven Step Model for implementing HRs Strategic role.

 Define Business Strategy

goals, communicated throughout the organization

Building a case for HR as a strategy asset.

HR professional need to build a clear case for this strategic role for HR.
Internal and external research
HR policies and practices consolidated into coherent internal system
Easier to choose an appropriate strategy then to implement one.

 Creating a strategic map

Balance scorecard framework refers to this process and creating a
strategic map
Diagram that shows link in the value chain
Performance management system must account for each of the links in
the value chain.
Some key questions need to be asked during strategic map creation
process
Identification of critical strategic goals and performance drivers of goals
How progress an be measured toward these goals etc.

 Company should conduct service within the organization to identify

how much employee understand the organizational goals.
Once value chain is understood, firm can translate it into conceptual
model using language & graphics that make sense to the member.
Strategic map essentially contains predictors about which organizational
processes drive from performance.

 Identifying HR deliverables within the strategic map

HR creates its value at the point of intersection between the HR system
by the overall strategy implementation system.
HR is responsible to depict HR deliverable including performance HR
enablers (Performance drivers such as employee competence,
motivation etc.)
It is important to identify those HR deliverables.

 Aligning the HR architecture with the HR deliverables

This step enhances the value creation aspects of the firm by aligning the
HR system with firms target strategy implementation system.
Internal and external alignment are important.

 Designing the strategic HR measurement system

This step is ato design the measurement system
HR needs to resolve several new technical issues that it
might not be familiar with.
Firm needs to develop valid measure of HR deliverables.
First stage of developing HR scorecard is normally the
traditional category measures (operational ones)
The second stage, HR measures have a strategic
importance but dont help in making a case for HR as a
strategic asset.

 The link between various measures are also identified and

placed in the strategic map.
In the final stage the HR measurement system enable the firm
to estimate impact of HR policies on firms performance.
If value chain is short, strategy map is simple, if it is complex
then impact can be measured in local segments of map.

 Implementing the strategy by using the measures.

Next step is to use this new management tool in a right way.

Helps to measure the HR impact on firm performance.
It also helps HR professionals have new insights.
Helps HR to dip deeper into the causes of success and failure.
Implementing the strategy using the HR scorecard requires change and
flexibility as well as monitoring and re-thinking.
Its not a one time event.

ADVANTAGES OF HR SCORECARD
It reinforces the distinction between HR do-ables and
deliverables.
It enables cost control and value creation.
It measures leading indicators
It assures HRs contribution to strategy implementation.
It lets HR professional effectively manage their strategic
responsibilities.
It encourage flexibility and change.

CASE STUDY: VERIZON

HR CHALLENGE AND STRATEGY

Hr leaders inventories
Identify critical people imperatives

STRATEGIC THRUSTS

Talent
Leadership
Customer service and support
Organizational integration
HR capability

THE TEAM
Created to design and implement a tool
Team included a director and four employees to
design , development , implementation and
operation of the HR measurement system.
HR core team included 8 subject matter experts

CRITERIA TO SELECT A CORE TEAM

MEMBER
Common link: selected by functional VP
Knowledgeable on key processes within your HR
functional area;
Dedicated to building awareness and
accountability toward achieving better outcomes;
and
Focused on measuring what matters to enable
better decision making and resource allocation.

KEY RESPONSIBILITIES
Attend core team meetings
Communicating to your function the message of
why we are measuring HR;
Establish SMEs within your function;
Identify key processes within your function;
Establish key performance indicators/ measures
reflecting key processes;
Submit data within designed timeframe; and
Responsible for overseeing target setting process
for your functional area.

PERSPECTIVES

Strategic perspective
operations perspective
Customer perspective
Financial perspective

THE PROCESS

EARLY RESULTS

COMMUNICATING THE HR SCORECCORD

CONCLUSION

BALANCED SCORECARD

T H E B A L A N C E D S C O R E C A R D I S A S T R AT E G I C
PLANNING AND MANAGEMENT SYSTEM USED
TO
ALIGN
B U S I N E SS
ACTIVITIES
TO
THE
V I S I O N A N D S T R AT E G Y O F T H E O R G A N I Z AT I O N
BY
MONITORING
PERFORMANCE
AGAINST
S T R AT E G I C G O A L S

 Performance standards are specifically applied to

four perspectives:
customer relations,
finance,
internal processes
learning and growth.

SHORT-TERM AND LONG-TERM GOALS

To ensure that both short-term and long-term
goals are correlated, the scorecard relies on four
processes:
translating the vision,
communicating and linking,
business planning
Innovation and learning.

 Translating the vision: helping all employees

understand how their day-to-day work contributes
to long-term goals.
Communicating and linking: disseminating
long-term goals both up and down an
organizational hierarchy,

 Business planning: taking long-term strategy

and using it as the basis for resources and capital
are allocated.
Innovation and learning: the scorecard
enables strategic and real-time learning.

the balanced score card can help

reconcile the problem of conflicting
objective between department and
over differ timescale, because it take
an overview of the organization