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ME GHNA HA R I DA S

 THE HR SCORE CARD

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INTRODUCTION

• Competitive advantage shifted to intangibleassets

• Senio management is s!epti!al of HRdepatment

• Di"!#lt to meas#e

• H#man !apital a stategi! asset

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 THE HR ARCHITECTURE AS A STRATEGIC ASSET

• HR f#n!tion

• T$o ma%o f#n!tional !ategoies

&Te!hni!al

&stategi!

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HR S'STEM

• (in) sele!tion an pomotion de!isions $ith!ompeten!* model

• Develop stategies

• Ena!t !ompensation and pefoman!emanagement poli!ies that atta!t high

pefoman!e emplo*ees

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HR S'STEM

• Alignment of all HR pats

• The alignment po!ess

• Identif* )ind of val#e

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EM+(O'EE ,EHA-IOUR

• Coe behavio

 

• Sit#ation spe!i.! behavio

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 THE ,A(ANCE SCORE / ,A(ANCED +ER0ORMANCE MEASUREMENT

• 1hat is balan!e s!oe!ad

• Stategi! implementation po!ess- ,eadth

- Ca#sal 2o$

• !omm#ni!ation

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The Seven Step Model for implementing HR’s Strategic role.

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• Define Business Strategy

• goals, communicated throughout the organization

• Building a case for HR as a strategy asset.

•

HR professional need to uild a clear case for this strategic role for HR.• !nternal and e"ternal research

• HR policies and practices consolidated into coherent internal system

• #asier to choose an appropriate strategy then to implement one.

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• $reating a strategic map

• Balance scorecard frame%or& refers to this process and creating a

strategic map

• Diagram that sho%s lin& in the value chain

• 'erformance management system must account for each of the lin&s in

the value chain.

• Some &ey (uestions need to e as&ed during strategic map creation

 process

•

!dentification of critical strategic goals and performance drivers of goals• Ho% progress an e measured to%ard these goals etc.

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• $ompany should conduct service %ithin the organization to identify

ho% much employee understand the organizational goals.

• )nce value chain is understood, firm can translate it into conceptual

model using language * graphics that ma&e sense to the memer.

• Strategic map essentially contains predictors aout %hich organizational processes drive from performance.

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• !dentifying HR deliverales %ithin the strategic map

• HR creates its value at the point of intersection et%een the HR system

 y the overall strategy implementation system.

• HR is responsile to depict HR deliverale including performance HR

enalers +'erformance drivers such as employee competence,

motivation etc.

• !t is important to identify those HR deliverales.

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• -ligning the HR architecture %ith the HR deliverales

• This step enhances the value creation aspects of the firm y aligning the

HR system %ith firm’s target strategy implementation system.

• !nternal and e"ternal alignment are important.

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• Designing the stategi! HR meas#ement s*stem•  This step is ato design the meas#ement s*stem

• HR needs to esolve seveal ne$ te!hni!al iss#es that itmight not be familia $ith3

• 0im needs to develop valid meas#e of HR deliveables3

• 0ist stage of developing HR s!oe!ad is nomall* thetaditional !atego* meas#es 4opeational ones5

•  The se!ond stage6 HR meas#es have a stategi!

impotan!e b#t don7t help in ma)ing a !ase fo HR as astategi! asset3

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• The lin& et%een various measures are also identified and

 placed in the strategic map.

• !n the final stage the HR measurement system enale the firm

to estimate impact of HR policies on firm’s performance.• !f value chain is short, strategy map is simple, if it is comple"

then impact can e measured in local segments of map.

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• !mplementing the strategy y using the measures.

•  e"t step is to use this ne% management tool in a right %ay.

• Helps to measure the HR impact on firm performance.

•

!t also helps HR professionals have ne% insights.• Helps HR to dip deeper into the causes of success and failure.

• !mplementing the strategy using the HR scorecard re(uires change and

fle"iility as %ell as monitoring and re/thin&ing.

• !ts not a one time event.

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AD-ANTAGES O0 HR SCORECARD

• !t reinforces the distinction et%een HR do/ales and

deliverales.

• !t enales cost control and value creation.

• !t measures leading indicators• !t assures HR’s contriution to strategy implementation.

• !t lets HR professional effectively manage their strategic

responsiilities.

• !t encourage fle"iility and change.

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CASE STUD'8 -ERI9ON

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HR CHA((ENGE AND STRATEG'

• H leades inventoies

• Identif* !iti!al people impeatives

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STRATEGIC THRUSTS

• Talent

• (eadeship

• C#stome sevi!e and s#ppot

• Ogani:ational integation• HR !apabilit*

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 THE TEAM

• Ceated to design and implement a tool

• Team in!l#ded a die!to and fo# emplo*ees todesign 6 development 6 implementation and

opeation of the HR meas#ement s*stem3• HR !oe team in!l#ded ; s#b%e!t matte e

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CRITERIA TO SE(ECT A CORE TEAMMEM,ER

• Common lin)8 sele!ted b* f#n!tional -+

• =no$ledgeable on )e* po!esses $ithin *o# HRf#n!tional aea>

•Dedi!ated to b#ilding a$aeness anda!!o#ntabilit* to$ad a!hieving bette o#t!omes>and

• 0o!#sed on meas#ing $hat mattes to enable

bette de!ision ma)ing and eso#!e allo!ation3

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=E' RES+ONSI,I(ITIES

• Attend !oe team meetings

• Comm#ni!ating to *o# f#n!tion the message of$h* $e ae meas#ing HR>

•Establish SMEs $ithin *o# f#n!tion>

• Identif* )e* po!esses $ithin *o# f#n!tion>

• Establish )e* pefoman!e indi!atos? meas#ese2e!ting )e* po!esses>

• S#bmit data $ithin designed timefame> and• Responsible fo oveseeing taget setting po!ess

fo *o# f#n!tional aea3

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+ERS+ECTI-ES

• Stategi! pespe!tive

• opeations pespe!tive

• C#stome pespe!tive

• 0inan!ial pespe!tive

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 THE +ROCESS

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EAR(' RESU(TS

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COMMUNICATING THE HR SCORECCORD

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CONC(USION

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THE BALANCED SCORECARD IS A STRATEGICPLANNING AND MANAGEMENT SYSTEM USEDTO AL IGN BUS INESS ACT IV IT IES TO THEVIS ION AND STRATEGY OF THE ORGANIZAT IONBY MONITOR ING PERFORMANCE AGAINSTSTRATEGIC GOALS

,A(ANCED SCORECARD

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• +efoman!e standads ae spe!i.!all* applied tofo# pespe!tives8

•  !#stome elations6

•  .nan!e6• intenal po!esses

•  leaning and go$th3

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SHORT&TERM AND (ONG&TERM GOA(S

• To ens#e that both shot&tem and long&temgoals ae !oelated6 the s!oe!ad elies on fo#po!esses8

•

 tanslating the vision6• !omm#ni!ating and lin)ing6

• b#siness planning

• Innovation and leaning3

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• Translating th !isi"n# helping all emplo*ees#ndestand ho$ thei da*&to&da* $o) !ontib#testo long&tem goals3

• C"$$%ni&ating an' lin(ing# disseminatinglong&tem goals both #p and do$n anogani:ational hiea!h*6

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• B%sinss )lanning# ta)ing long&tem stateg*and #sing it as the basis fo eso#!es and !apitalae allo!ated3

• Inn"!ati"n an' larning# the s!oe!adenables stategi! and eal&time leaning3

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