Putting HR on Balanced Scorecard

Agenda Introduction Balanced Scorecard Implementing Balanced Scorecard into HR Case Study-Verizon Findings of the Study Conclusion Recommendation

1 Introduction The HR scorecard is a measurement as well as an evaluation system for redefining the role of HR as a strategic partner. It is based on the Balanced Scorecard framework developed by Kaplan and Norton and is set to revolutionize the way business perceives HR.

2 Balanced Scorecard Balanced Scorecard uses a balanced measurement system that comprises of “the old” financial side and four “new” perspectives of: Financial Perspective - How do we look at shareholders? Customer Perspective - How should we appear to our customers? Internal Business Processes Perspective - What must we excel at? Learning and Growth Perspective - Can we continue to improve and create value?

Implementing Balanced Scorecard into HR 3 Implementing Balanced Scorecard into HR Integrating HR into the performance measurement system The Seven-Step Model for Implementing HR’s Strategic Role

3.1 Implementing Balanced Scorecard into HR Integrating HR into the performance measurement system To integrate HR into a business performance measurement system, managers must identify the points of intersection between the HR and the organisation’s strategy implementation plan. These points are commonly called the HR deliverables. The deliverables can be classified into two groups, namely the performance drivers and the enablers.

3.2 Implementing Balanced Scorecard into HR The Seven-Step Model for Implementing HR’s Strategic Role 1 Periodically test HR measures against the firm’s strategy map and adjust as required 2 3 4 5 6 7

3.2 Implementing Balanced Scorecard into HR The Seven-Step Model for Implementing HR’s Strategic Role