1. HR SCORECARD
Presented By
ADEEL TARIQ
MOBASHIR ALI

2. SEQUENCE Introduction Tangible Vs Intangible Assets
Tracking HR Effectiveness
Effective HR Measures
Balanced Scorecard
HR Deliverables
Lagging Indicators
Leading Indicators
HR Scorecard
Creating HR Scorecard
HR Dashboard
Conclusion

3. INTRODUCTION
New economic paradigm characterized by Speed, innovation, quality and customer satisfaction
Essence of competitive advantage shifted from tangible to intangible assets
Focus on human capital and its effective alignment with overall organizational strategy
HR Scorecard measurement/ evaluation system for redefining the role of HR as a strategic partner
Based on Balanced scorecard developed by Kaplan and Norton
HR transformed from administrative to strategic role
Challenge for managers to make HR a strategic asset
HR scorecard is a lever that enables managers to do so

4. TANGIBLE VS INTANGIBLE ASSETS

5. WHY TRACK HR EFFECTIVENESS?
To Guide Decision Making
It helps HR staff in how best to manage the HR system to support the company.
To Evaluate Program/Department Effectiveness
It constitutes a “report card” to guide improvement efforts.

6. EFFECTIVE HR MEASURES
Identify a clear, consistent, and compelling connection between the company’s strategy and the work of each employee.
Focus on the critical few measures that have the greatest impact on the company’s bottom line.
Document the effects of HR on company performance in credible ways that employees, line supervisors, and managers can understand.

7. Kaplan and Norton model (1996)
BALANCED SCORECARD
Kaplan and Norton model (1996)
Customer perspective
Corrective activity
Developmental activity
Balancing compliance with added value
Balanced
Scorecard
Financial Measures
Key performance ratios
Financial health
Balancing leading with trailing indicators
Learning and growth
People measures
Knowledge measures
Balancing soft and
hard indicators
Business Processes
Drumbeat
Time, cost, quality
Balancing inputs and outputs
HR Function
Fits Here as
HR Deliverables

8. HR DELIVERABLES HR Performance Drivers HR Enablers
Determines the results
Unique to the firm
Identification and direct integration into performance criteria e.g employee productivity
HR Enablers
Reinforce the core performance drivers
Strategy implementation impossible without properly aligned enablers
For employee productivity enabler could be training

9. LAGGING INDICATORS
Lagging indicators are outcome measures that help you gauge your HR progress by examining the final end result or outcomes of your collective efforts.
Use of the “lagging” term reflects the delay or gap between your actions and a change in the final end result.
Non-HR Example
Economy — GNP growth, national debt, unemployment rate, etc.
HR Examples
Employee retention.
Employee performance.
Employee productivity.

10. LEADING INDICATORS
Leading indicators are process measures that help you gauge incremental progress you are making toward key HR outcome (lagging) measures.
Since leading indicators measure the results from your processes, there is less of a delay between your actions and a change in the system.
They are the performance drivers — the key factors that enable the overall end result (outcome) you want to achieve.
Non-HR Examples
Economy — capital equipment purchases, layoffs, stock market value, public confidence, exchange rates, etc.
HR Examples
A reduction in absenteeism in key positions.
% increase in internal people expressing interest in position

11. HR SCORECARD
Measures effectiveness and efficiency of HR functions in producing the employees behaviors required to achieve organizational strategic aims
Focuses on leading indicators
Identifies the differences between HR doables and HR deliverables
Demonstrates HR’s contribution to strategy implementation and to the company’s bottom line
Helps HR managers focus on and manage their strategic responsibilities
Encourages HR flexibility and change.

12. The 10-Step HR Scorecard Process
CREATING HR SCORECARD 1 2 3 4 5
Outline value chain activities
Define the business strategy
Outline a strategy map
Identify strategically required outcomes
Identify required workforce competencies and behaviors 6 7 8 9 10
Create HR Scorecard
Identify required HR policies and activities
Choose HR Scorecard measures
Summarize Scorecard measures on digital dashboard
Monitor, predict, evaluate
The 10-Step HR Scorecard Process

13. OUT LINE VALUE CHAIN AND STRATEGY MAP
Value chain analysis
A tool for identifying, isolating, visualizing, and analyzing the firm’s most important activities and strategic costs
Identifying the primary and crucial activities that create value for customers and the related support activities
Strategy Map
A diagram that summarizes the chain of major inter related activities that contributes to a company's success

14. STRATEGY MAP

15. IDENTIFYING WORK FORCE REQUIREMENTS AND STRATEGIC OUTCOMES

16. IDENTIFYING COMPETENCIES, SYSTEMS, PRACTICES
HR Systems
Alignment with Strategy
Internal HR Alignment
Matching HR Strategy to
Company Culture
HR Strategic
Focus
HR Competencies
Operational Efficiency
High Performance Work Sys
Employee Relations Strategy Execution
HR Practices
Recruitment & Selection
Employee Orientation
Performance Measurement
Training & Development
HR Deliverables
High Employee Satisfaction
High Customer Satisfaction
Low Key Staff Turnover Knowledge Growth

17. NOT CLEAR WHAT TO ADD HERE NEED YOUR INPUT
CREATE HR SCORECARD
NOT CLEAR WHAT TO ADD HERE NEED YOUR INPUT

18. HR SCORECARD MEASURES
Review existing measures and identify their strengths and weaknesses
Identify corporate goals and HR’s contribution toward these goals
Create a customer diagram and list of results HR produces to support the organization
Define measures for each result
Define levels of goals for each measure
Define two tracking reports to communicate actual vs. planned performance.

19. HR DASHBOARD
“A picture is worth a thousand words” sums up the purpose of HR Dashboard.
An HR Dashboard presents the manager, via a PC desktop screen containing graphs and charts , with a bird’s eye view of how the HR management function is doing
Summarizes how core measures from HR scorecard are doing

20. SUMMARIZING MEASURES ON DASHBOARD
Overall Job Satisfaction
QWL Score
Core Values

21. CONCLUSION
HR Scorecard Enables Managers to Understand how to Align HR Strategy with Overall Business Objectives
Tracking and Performance Evaluation Of Business Strategies
HR Scorecard a Tool to Ensure Continued Learning and Change Management

22. THANKS

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