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HR Balncd Scorcard c

HR Balncd Scorcard c

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HR Balanced Scorecard
Implementing Metrics to Assess and
Drive Business Performance
Deloitte Consulting LLP
August , 2005

For Discussion Purposes Only
Prepared by: Aman Gupta
HC OPP

Copyright \u00a9 2005 Deloitte Consulting LLP. All rights reserved. For discussion purposes only.
2
Contents

\u2022Overview
\u2022Developing the scorecard
\u2022Balanced Scorecard Measures
\u2022HR Metrics
\u2022Examples / Selected Case Studies
\u2022Appendix: Key HR Metrics

Copyright \u00a9 2005 Deloitte Consulting LLP. All rights reserved. For discussion purposes only.
3
Balanced Scorecard: An Overview

HR metrics are becoming more complex as organizations seek to define the
strategic value of human capital. While traditional HR measures such as turnover
rates and time-to-fill often serve as benchmarks these days, the move toward
more strategic measures calls into question whether benchmarks are even
appropriate anymore.

One of the most basic challenges is the difficulty of measuring the value of
intangible assets with any level of precision. About 80% of a company\u2019s market
value is said to be attributable to intangible assets, according to Robert Kaplan
and David Norton, developers of the Balanced Scorecard methodology. As a
result, the current structure of financial statements \u2013 most of which do little to
present the details of intangible assets \u2013 renders them \u201cincreasingly irrelevant as
a tool supporting meaningful decision-making,\u201d said Dr. Junaid M. Shaikh in the

Journal of American Academy of Business.

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