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

2. © ModernThink LLC 2012. All rights reserved. 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 2

3. © ModernThink LLC 2012. All rights reserved. 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 3

4. © ModernThink LLC 2012. All rights reserved. HR Departments with a Strategic Plan 4

5. © ModernThink LLC 2012. All rights reserved. HR Strategic Plan Aligned with Organization Plan 5

6. © ModernThink LLC 2012. All rights reserved. Vision & Strategy Financials Internal Processes Learning & Growth Customer Balanced Scorecard 6

7. © ModernThink LLC 2012. All rights reserved. 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 7

8. © ModernThink LLC 2012. All rights reserved. Vision & Strategy 8

9. © ModernThink LLC 2012. All rights reserved. Strategic Focus HR Competencies HR Deliverables HR SystemsHR Practice HR Balanced Scorecard 9

10. © ModernThink LLC 2012. All rights reserved.  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? 10

11. © ModernThink LLC 2012. All rights reserved.  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? 11

12. © ModernThink LLC 2012. All rights reserved. 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? 12

13. © ModernThink LLC 2012. All rights reserved. Established Method to Measure Effectiveness of HR Strategy with Metrics 13

14. © ModernThink LLC 2012. All rights reserved. Factors that Limit HR’s Contribution to Bottom Line 14

15. © ModernThink LLC 2012. All rights reserved. Grow RevenuesDevelop Innovative DrugsUtilize Innovative R&D ScientistsHire Innovative R&D Scientists Strategy map 15

16. © ModernThink LLC 2012. All rights reserved.  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 16

17. © ModernThink LLC 2012. All rights reserved.  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 17

18. © ModernThink LLC 2012. All rights reserved. Be SMART…  Specific  Measurable  Achievable  Results oriented  Time-bound 18

19. © ModernThink LLC 2012. All rights reserved. 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? 19

20. © ModernThink LLC 2012. All rights reserved. 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? 20

21. © ModernThink LLC 2012. All rights reserved. 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? 21

22. © ModernThink LLC 2012. All rights reserved. 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 ? 22

23. © ModernThink LLC 2012. All rights reserved. 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? 23

24. © ModernThink LLC 2012. All rights reserved. Living the change  Maintain your metrics  Discuss at every meeting  Tweak, amend, add or delete as necessary 24

25. © ModernThink LLC 2012. All rights reserved. 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 25

26. © ModernThink LLC 2012. All rights reserved. Q & A 26