Professional Documents
Culture Documents
Dissertation Report
On
Putting HR on Balanced Scorecard
(A Case Study of Verizon)
(SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POST
GRADUATE DIPLOMA IN MANAGEMENT)
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(Approved by AICTE, Govt. of India)
ACADEMIC SESSION
(2008-10)
Submitted by:
Supervisor Name
Lecturer (college name)
Your Name
Roll: - PGDM-08/012
College Address
PREFACE
There is a famous saying The theory without practical is lame and
practical without theory is blind.
Alignment of the Human Resource with the overall strategy of the
company is a very big and toughest challenge for the company.
Human resource is an important part of any business and managing them
is an important task.
Our institution has come forward with the opportunity to bridge the gap
by imparting modern scientific management principle underlying the
concept of the future prospective managers.
To the emphasis on practical aspect of management education the faculty
of College Name has with a modern system of practical training of repute
and following management technique to the student as integral part of
PGDM.
ACKNOWLEDGEMENT
It is not possible to prepare a project report without the assistance &
encouragement of other people. This one is certainly no exception.
On the very outset of this report, I would like to extend my sincere & heartfelt
obligation towards all the personages who have helped me in this endeavor.
Without their active guidance, help, cooperation & encouragement, I would not
have made headway in the project.
I am ineffably indebted to Supervisor Name for conscientious guidance and
encouragement to accomplish this assignment.
I am extremely thankful and pay my gratitude to my faculty guide
Guidance Name, College Name for her valuable guidance and support on
completion of this project in its presently.
I extend my gratitude to College Name for giving me this opportunity.
I also acknowledge with a deep sense of reverence, my gratitude towards
my parents and member of my family, who has always supported me
morally as well as economically.
At last but not least gratitude goes to all of my friends who directly or
indirectly helped me to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thanking You
Your Name
TABLE OF CONTENTS
1.
2.
RESEARCH METHODOLOGY 2
3.
4.
INTRODUCTION
LITERATURE REVIEW
6
5.
5.1.
5.2.
5.3.
THE HR FUNCTION 8
THE HR SYSTEM 9
EMPLOYEE BEHAVIOURS 11
6.
6.1.
6.2.
6.3.
6.4.
6.5.
7.
7.1.
7.2.
9.1.
9.2.
9.3.
9.4.
9.5.
9.6.
9.7.
34
43
INTRODUCTION: VERIZON 45
HR CHALLENGE & STRATEGY
47
THE TEAM 48
THE PROCESS
50
EARLY RESULTS
57
COMMUNICATING THE HR SCORECARD 57
WEB-BASED IMPLEMENTATION AND GRAPHICS (FRONTEND AND BACKEND) 59
FINDINGS OF THE STUDY
62
64
RECOMMENDATIONS
REFERENCES
67
65
TABLE OF FIGURES
FIGURE 1: HR ARCHITECTURE STRATEGIC COMPONENTS.....................................8
FIGURE 3:- THE MAIN FRAMEWORK OF BALANCED SCORECARD......................30
FIGURE 4:- MODEL FOR IMPLEMENTING HRS STRATEGIC ROLE.......................34
FIGURE 5: A HIGH PERFORMANCE WORK SYSTEM.............................................36
FIGURE 6: SIMPLE STRATEGY MAP.....................................................................38
FIGURE 7:- INITIAL MODEL USED TO ALIGN HR STRATEGY TO BUSINESS
STRATEGY......................................................................................................51
1. INTRODUCTION
The new economic paradigm is characterised by speed, innovation, quality and customer
satisfaction. The essence of the competitive advantage has shifted from tangible assets to
intangible ones. The focus is now on human capital and its effective alignment with the
overall strategy of organisations. This is a new age for Human Resources. The entire system
of measuring HRs contribution to the organisations success as well as the architecture of the
HR system needs to change to reflect the demands of succeeding in the new economy. 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 revolutionise the way business perceives HR.
Based on various studies, it can be concluded that firms with more effective HR management
systems consistently outperform the competition. However, evidence that HR can contribute
to a firms success doesnt mean it is now effectively contributing to success in business. It is
a challenge for managers to make HR a strategic asset. The HR scorecard is a lever that
enables them to do so. Implementing effective measurement systems for intangible assets is a
very difficult task and demands the existence of a unified framework to guide the HR
managers. It is this difficulty that has been the prime reason why managers tend to avoid
dealing with intangible assets as far as possible. In the process firms under-invest in their
people and at times invest in the wrong ways. Another difficulty is, managers cannot foresee
the consequences of their investments in intangible human assets in a well-defined
measurable manner and they are not willing to take the risk. Thus, the most effective way to
change this mindset is obvious to build a framework just like the balanced scorecard, which
has sound measurement strategies and is able to link HR functions, activity and investment
with the overall business strategy. The HR scorecard framework was specifically designed for
these purposes.
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2. RESEARCH METHODOLOGY
2.1.Research Objectives
1. To highlight the importance of Balanced Scorecard as a measurement tool.
2. To find out the need of Balanced Scorecard in todays competitive environment.
3. To find out how Balanced Scorecard is useful for developing the Human Resource as
a strategic partner.
4. To find out how Balanced Scorecard can be implemented to Human Resource.
2.4.Data Analysis: The research is divided into the six sections. The First section
deals with the overall introduction of the research and the Second section highlights
the Human Resource as a strategic partner and the traditional human resource and the
human resource in present and the future of the human resource. Third section
explains in detail the HR Architecture as a strategic asset which contains the hr
function, hr system and the employee behavior. Fourth section explains the
background and the concept of balanced scorecard, need of the balanced scorecard in
todays competitive environment, and defines the balanced scorecard as a
measurement tool. Fifth section explains how balanced scorecard can be
implemented into the human resource to develop the HR as a strategic partner. Sixth
section contains the case study of Verizon and explains how Verizon has
implemented the balanced scorecard to human resource to generate the value through
the intangible asset.
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3. LITERATURE REVIEW
1. Is the balanced scorecard HR's ticket to the board? Nelson, Paul. Personnel
Today, 3/5/2002.
Most thoughts comprised of some combination of BC is a wonderful tool to allow HR to
show its value to a firm, BSCs will only work with senior management buy-in and BSCs
alone will not bring a firm closer to its goal, contributing to the overall business will.
2. HR Performance Scoring Demonstrates Results. McKewen, Darren. 2004.
Career Journal.com Accessed from website.
The first part of this article gives numbers on the popularity of BCs throughout industry.
From the article: According to a recent survey by the Balanced Scorecard Collaborative and
the Society for Human Resource Management, about one-fourth of HR organizations have
adopted the Balanced Scorecard approach. However, virtually all of the 1,300 respondents
have explored the possibility. The rest of the article has no relation to balanced scorecards.
3. The Balanced Scorecard: Creating a Strategy-Focused Workforce. Frangos,
Cassandra.
A synopsis of three scholars (Jac Fitz-enz, David Norton, and Helen Drinanwork) in the field
of HR metrics and analysis, by way of selling the authors upcoming Net Conference.
1. Fitz-enz evaluates a firms HR process by cost, duration, accomplishment, error rate,
employee satisfaction, matricing these five over three distinct tasks: acquiring talent,
developing talent, and retaining it.
2. Norton developed the "Human Capital Readiness Report," which provides a snapshot
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So what is the profile of outstanding HR leaders? Among other things, they derive their
agendas from enterprise business objectives; they stay in touch with the workforce; think
"customer focus," not "customer service"; and concentrate on a few strategic priorities.
4. A Balanced Scorecard Changes HR Mgmt From Art to Science. Human
Resource Department Management Report. January, 2003. Issue 1-03, p. 1.
Objective:- Reasons for and application of using the BSC as a way to measure HR
productivity and effectiveness.
Biggest reason: a move to measuring tangible assets, and a need to turn the intangibility of
HR into something more measurable. Case: Alterra Health Care in Milwaukee, which used
HR as the centerpiece of a larger strategic transformation that targeted the firms 145%
turnover rate.
5. Understanding the Balanced Scorecard: An HR Perspective. ICG Research.
2003.
Objective:- How to implement the Balanced Scorecard to Human Resource.
1. Building the Balanced Scorecard should be a team effort at the executive level and
functional heads must not create their bits of Scorecard in isolation. Therefore, HR
can be custodians but not owners of the learning and growth perspective.
2. Implementation is a bigger issue than scorecard design. The difficulty of cultural
change that accompanies Scorecard implementation is typically underestimated. One
of the biggest problems is the (legitimate) fear that the Scorecard will be used to beat
up people.
3. The HR Scorecard must make visible the link from what staff does to strategic
outcomes. Cascading goals, which may be done through the ten-step process, is one
element of successfully creating the link.
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6. Secrets to Success with Balanced Scorecards. HR Focus. October, 2001 Vol. 78,
no. 10, p. S3.
Summarizes the 10 Commandments of Performance Management from a book by William
Abernathy: Managing Without Supervising: Creating an Organization- Wide Performance
System. Some of these commandments:
1. No one should design his or her own incentive plan
2. The frequency of measurement feedback is as important as the amount
3. Measure only controllable job outputs
7. Avoiding performance measurement traps: ensuring effective incentive design
and implementation. McKenzie F.C. & Shilling M.D. July/August, 1998.
Compensation and Benefits Review. Vol. 30 (4), p. 57-65.
Details methods of performance measurement and the traps associated with each.
Measurements evaluated include: Traditional accounting methods (ROI, EPS, RONA), ValueBased, such as Economic Value Added, and the Balanced Scorecard. Traps associated with
the BSC are as follows:
1. Assuming the Balanced Scorecard is a perfect tool for compensation.
2. Reduced focus on performance management
3. Using measures that are difficult to quantify
4. Contradicting goals or benchmarking
5. Getting tied-up in implementation
Nine guidelines for effective performance management are outlined:
1. Emphasize a few measures.
2. Focus on measures that participants can control.
3. Avoid all-or-nothing programs.
4. Balance accuracy and simplicity.
5. Include an appropriate subjective element.
6. Mind the corporate culture.
7. Communicate up-front, then keep communicating.
8. Revisit the program design often.
9. Integrate with long-term incentives.
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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important to align the HR strategy to the overall business strategy signifying a top-down
approach as opposed to a bottom-up approach where each division such as marketing, HR
etc. performs its standard individual roles without a clear outlook towards the firms strategy.
Many firms have realised this and have made efforts to measure HRs influence on the firms
performance. However, most of these approaches seem to focus on the individual, as it is
believed that if one can achieve an improvement in individual employee performance, it
would automatically enhance the performance of the organisation. The point that is missed is
the fact that organizational units, be it individuals or teams, do not function in isolation. The
stress is on streamlining and cooperatively working towards a common goal.
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The focus of corporate strategy is to create sustained competitive advantage whereas that of
HR strategy is to maximize the contribution of HR towards the same goal. Thinking about
HRs influence on the overall strategy of the company requires one to look at all aspects of
the HR architecture. The HR architecture describes the relationship of the HR function, the
HR system and the employee behaviour.
5.1.The HR function
The foundation of a value-creating HR strategy is a management infrastructure that
understands and can implement the firms strategy. The professionals in the HR function
would be expected to lead this effort. This clearly implies that HR managers and
professionals need to get a deeper understanding of the HR function. There are two basic
functional categories in HR management. The first is technical. It includes delivery of HR
basics such as recruiting, compensation and benefits. The second is strategic. It involves
delivering the above mentioned services in a way that directly supports the implementation of
the firms strategy. Most HR managers are proficient enough in the technical aspect but rarely
do they even know about the strategic aspect. Thus, the competencies that the HR managers
need to develop and the ones that have the largest impact on organisational performance are
the business and strategic competencies.
5.2.The HR system
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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5. It is important never to dissect the system and view each of its parts independently.
One must look at the system as a whole and the connections between the individual
parts is normally the vital place to look at for a solution to any of the problems.
Firms with high performance work systems tend to devote considerably more resources to
recruiting and selection. There is a strong emphasis on training and performance management
and compensation is tied to performance. Teamwork is encouraged, there is generally less
unionization and they have a large and effective HR team. It is important to note, that all
these factors in tandem, not in isolation, lead to better performance, once again showing the
systemic nature of HRs role in performance enhancement. The effects of these measures are
lower employee turnover, more retention, greater sales per employee and a greater market
value for the firm.
It is also important for the HR system to constantly check for alignment of all its parts i.e.
how much they reinforce or conflict with each other. An example of misalignment is a policy
that encourages teamwork but rewards individual contributions.
In the service sector, the employee-customer relationship is very obvious and visible and so
the impact of value creation is unmistakable. But, in many firms, the value is derived from
the operational processes and quality of work that the employees generate. This is less
obvious to competitors and it cannot be imitated. It is especially in these kinds of firms that
the alignment of HR strategy and policy with the overall strategy of the firm matters the
most.
The alignment process begins with a clear understanding of what kind of value the
organisation is supposed to generate and how it should be generated. In the Balanced
Scorecard, this is referred to as the strategy map that stresses the relationship between the
ultimate goals and the key success factors at the four important levels of customers, internal
operations, people and systems. Once the firm has a clear understanding of the value-creation
process, it can then design an implementation model that specifies needed skills and
competencies and employee behaviours throughout the firm. The HR management section
can then be directed towards generating these necessary competencies and behaviours. The
stress is not just on the creation of sound HR policies and strategies. How these are
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implemented is also very important. There has to be a strong alignment with the firms
competitive strategy.
A high performance HR system will also tend be unique. This is because it depends on the
particular organisation, its goals, people and strategy. Hence, it proves to be a strategic asset.
5.3.Employee Behaviours
As mentioned above the final results of the strategies are mapped to required employee
behaviours. It is important that each employee be trained not just to do his or her job but also
to have a substantially clear understanding of where he or she stands in the big picture of the
overall strategy of the firm. Strategic behaviours are productive behaviours that directly serve
to implement the firms strategy. There are two basic categories. Core behaviours are
behaviours that are considered fundamental to the success of the firm, across all business
units and levels. Situation-specific behaviours on the other hand, are more circumstantial
behaviours. These are not required all the time but are absolutely necessary in certain
scenarios.
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Throughout the history of contemporary management theories starting from the ones that
were introduced by the intrusion of the mass production in the beginning of the 20th century
and until today, all the gurus of management have been trying to find uniform solutions on
more efficient allocation and use of very limited resources available to businesses. Those
paths in seeking the Holy Grail of operational efficiency have brought up several new
management theories.
In the dawn of the century, Frederick W. Taylor established the very concepts of resource
allocation in his Principles of ScientJlc Management. In 1920-ics it went around assembly
line and motion studies as the first experience from systematic mass production had given
theorists quite a lot of materials to be analysed from the point of view of using traditional
blue-collar employees more efficiently. In the I 930-ies, the main topic was motivation of
employees, as it turned out that human nature does not enable to work long hours on a
repetitive tasks without frustration level getting so high enough to diminish productivity. In
the l940-ics and 1950-ies, the first statistical and linear methods were introduced in trying to
measure logistics of the operations management and its implications to overall company
success in financial-analysis side. In the beginning of 1980-ics, partly because of introduction
of electronic data processing equipment and quick development of computers, the whole
array of management techniques were initiated. The particular reasons for the vast
development of the new theories were catalyzed mainly by ever growing competition
generated through more systematic use of computers, and of course also by rapid growth of
the importance of human capital.
Todays companies are in the midst of a revolutionary transformation. Industrial age
competition is shifting to information age competition. During the industrial age, roughly
from 1850 to about 1975, companies succeeded by how well they could capture the benefits
from economies of scale and scope. Technology mattered, but, ultimately, success accrued to
companies that could embed the new technology into physical assets that offered efficient,
mass production of standard products. During the industrial age, the financial control systems
were developed in major companies to facilitate and monitor efficient allocations of financial
and physical capital. A summary financial measure such as return-on-capital-employed
(ROCE) could both direct a companys internal capital to its most productive use and monitor
the efficiency by which operating divisions used financial and physical capital to create value
for shareholders.
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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The emergence of the information era, however, in the last decades of the 2O century, has
made obsolete many of the fundamental assumptions of industrial age competition. The
information age environment for both manufacturing and service organisations requires new
capabilities for competitive success. The ability of a company to mobilise and exploit its
intangible assets has become far more decisive than investing and managing tangible,
physical assets.
Industrial age companies created a sharp distinction between two groups of employees. The
intellectual elite managers and engineers used their analytical skills to design products
and processes, select and manage customers, and supervise day-to-day operations. The
second group was composed of the people who actually produced the products and delivered
the services. This direct labour work force was a principal factor of production, which
performed its tasks under supervision of the first group. Today automation and productivity
have increased the number of people performing analytic functions: engineering, marketing,
management and administration. Therefore, the people are more viewed as problem solvers,
not as variable costs. In other words, information age has brought about the concept of
knowledge management.
The shift to successful knowledge management has introduced a variety of improvement
initiatives:
1. Just-in-time
2. Total quality management,
3.
Lean enterprise,
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This innovative tool Balanced Scorecard developed by Robert S Kaplan and David P
Norton in 1992 is unique in two ways compared to the traditional performance measurement
tools. They are:1. It considers the financial indices as well the non-financial ones in determining the
corporate performance level and
2. It is not just a performance measurement tool but is also a performance management
system
The aim of the Balanced Scorecard is to direct, help manage and change in support of the
longer-term strategy in order to manage performance. The scorecard reflects what the
company and the strategies are all about. It acts as a catalyst for bringing in the change
element within the organization
Balanced Scorecard uses a balanced measurement system that comprises of the old
financial side and four new perspectives of:
1. Financial Perspective - How do we look at shareholders?
2. Customer Perspective - How should we appear to our customers?
3. Internal Business Processes Perspective - What must we excel at?
4. Learning and Growth Perspective - Can we continue to improve and create value?
Hence, from the above lines we can say that this tool has considered not only the financial
results to be important but also those factors which actually drive an organization towards
future successes as mentioned earlier. The tool has given stress on the other areas which are
required to balance the financial perspective in order to get a total view about the
organizational performance and improve the same.
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perspective (e.g. process quality and process cycle time) and finally learning and growth
perspective (e.g. employee skills) that is the leading indicator.
The next important step is communication. The top management that has done the above
analysis must communicate their findings and decisions to the middle and front-line
managers, who in turn must communicate it to the other employees. In this way, everyone in
the organisation is made aware and can participate in the strategy implementation process.
This also helps allocate resources intelligently and guides employees decisions. The
Balanced Scorecard model recognises the importance of both tangible and intangible assets
and of financial and non-financial measures. It focuses on the complex connections among
the firms customers, operations, employees and technology and places an important role for
HR. The BSC framework highlights the differences between leading and lagging indicators.
Lagging indicators include financial metrics, which typically reflect only what has happened
in the past. Such metrics accurately measure impacts of past decisions but dont help in
making current decisions or guaranteeing future outcomes. The leading indicators are the
unique indicators for each firm. They include process cycle time, customer satisfaction or
employee strategic focus. These indicators assess the status of key success factors that drive
the implementation of the firms strategy and hence emphasise the future rather than the past.
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rapid growth organisations - are at the early stages of their life cycle. They may
have to make considerable investments to develop and enhance new products and
serviccs, to construct and expand production facilities, to build operating capabilities,
to invest in systems, infra-structure, and distribution networks that will support
relationships, and to nurture and develop customer relationships.
II.
III.
harvest organisations - have reached a mature phase of their life cycle, where the
company wants to harvest the investments made in the earlier to stages. These
businesses no longer warrant significant investment only enough to maintain
equipment and capabilities, not to expand or build new capabilities. Any investment
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project will have to have very short and definite payback periods. The main goal is to
maximise cash flow back to the organisation.
The financial objectives for businesses in each of these three stages are quite different.
Financial objectives in the growth stage will emphasise sales growth; sales in new markets
and to new customers; sales from new products and services; maintaining adequate spending
levels for product and process development, systems, employee capabilities; and
establishment of new marketing, sales, and distribution channels. Financial objectives in the
sustain stage will emphasise traditional financial measurements, such as return on capital
employed, operating income, and gross margin.
Investment projects for businesses in the sustain category will be evaluated by
standard, discounted cash flow, capital budgeting analyses. Some companies will employ
newer financial metrics, such as economic value added and shareholder value. These metrics
all represent the classic financial objective---earn excellent returns on the capital provided to
the business.
The financial objectives for the harvest businesses will stress cash flow. Any investments
must have immediate and certain cash paybacks. The goal is not to maximise return on
investment, which may encourage managers to seek additional investment funds based on
future return projections. Virtually no spending will be done for research or development or
on expanding capabilities, because of the short time remaining in the economic life of
business units in their harvest phase.
Some of the objectives together with a measurement measures
Objectives
Measures
Survive
Cash Flow
Prosper
Profitability
Return on Equity
Cost Leadership
Unit Cost
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I.
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the share of business with these targeted customers could be decreasing because these
customers are offering less business to all their suppliers. Companies can measurecustomer by customer or segment by segment-how much of the customers and
market segments business they are receiving. Such a measure provides a strong focus
to the company when trying to dominate its targeted customers purchases of products
or services in categories that it offers.
II.
Customer Retention
Clearly, a desirable way for maintaining or increasing market share in targeted
customer segments is to retain existing customers in those segments. Research on the
service profit chain has demonstrated the importance of customer retention.
Companies that can readily identify all of their customers-for example, industrial
companies, distributors and wholesalers, newspaper and magazine publishers,
computer on-line service companies, banks, credit card companies, and long-distance
telephone suppliers- can readily measure customer retention from period to period.
Beyond just retaining customers, many companies will wish to measure customer
loyalty by the percentage growth of business with existing customers
III.
Customer Acquisition
Companies seeking to grow their business will generally have an objective to increase
their customer base in targeted segments. The customer acquisition measure tracks, in
absolute or relative terms, the rate at which a business unit attracts or wins new
customers or business. Customer acquisition could be measured by either the number
of new customers or the total sales to new customers in these segments. Companies
such as those in the credit and charge card business, magazine subscriptions, cellular
telephone service, cable television, and banking and other financial services solicit
new customers through broad, often expensive, marketing efforts. These companies
could examine the number of customer responses to solicitations and the conversion
rate- number of actual new customers divided by number of prospective inquiries.
They could measure solicitation cost per new customer acquired, and the ratio of new
customer revenues per sales call or per dollar of solicitation expense.
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IV.
Customer Satisfaction
Both customer retention and customer acquisition are driven from meeting customers
needs. Customer satisfaction measures provide feedback on how well the company is
doing. The importance of customer satisfaction probably cannot be over-emphasised.
Recent research has indicated that just scoring adequately on customer satisfaction is
not sufficient for achieving high degrees of loyalty, retention, and profitability. Only
when customers rate their buying experience as completely or extremely satisfying
can the company count on their repeat purchasing behaviour.
V.
Customer Profitability
Succeeding in the core customer measures of share, retention, acquisition, and
satisfaction, however, does not guarantee that the company has profitable customers.
Obviously, one way to have extremely satisfied customers (and angry competitors) is
to sell products and services at very low prices. Since customer satisfaction and high
market share are themselves only a means to achieving higher financial returns,
companies will probably wish to measure not just the extent of business they do with
customers, but the profitability of this business, particularly in targeted customer
segments. Activity-based cost (ABC) systems permit companies to measure individual
and aggregate customer profitability. Companies should want more than satisfied and
happy customers; they should want profitable customers. A financial measure, such as
customer profitability, can help keep customer-focused organisations from becoming
customer-obsessed.
The customer profitability measure may reveal that certain targeted customers are
unprofitable. This is particularly likely to occur for newly acquired customers, where
the considerable sales effort to acquire a new customer has yet to be offset from the
margins earned by selling products and services to the customer. In these cases,
lifetime profitability becomes the basis for deciding whether to retain or discourage
currently unprofitable customers.
Newly acquired customers can still be valued, even if currently unprofitable, because
of their growth potential. But unprofitable customers who have been with the
company for many years will likely require explicit action to cope with their incurred
losses.
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VI.
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In summary, the customer perspective enables business unit managers to articulate their
unique customer and market-based strategy that will deliver superior future financial returns.
Some of the objectives together with a measurement measures
Objectives
Measures
New Product
Customer Relationship
% of retained customer
Responsive Supply
On time Delivery
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Internal business process objectives address the question of which processes are most critical
for satisfying customers and shareholders. These are the processes in which the firm must
concentrate its efforts to excel.
In the internal business process perspective, executives identify the critical internal processes
in which the organisation must excel. The critical internal business processes enable the
business unit to deliver on the value propositions of customers in targeted market segments,
and satisfy shareholder expectations of excellent financial returns. The measures should be
focused on the internal processes that will have the greatest impact on customer satisfaction
and achieving the organisations financial objectives.
The internal business process perspective reveals two fundamental differences between
traditional and the Balanced Scorecard approaches to performance measurement. Traditional
approaches attempt to monitor and improve existing business processes.
They may go beyond just financial measures of performance by incorporating quality and
time-based metrics. But they still focus on improving existing processes. The Balanced
Scorecard approach, however, will usually identify entirely new processes at which the
organisation must excel to meet customer and financial objectives. The internal business
process objectives highlight the processes most critical for the organisations strategy to
succeed.
The second departure of the Balanced Scorecard approach is to incorporate innovation
processes into the internal business process perspective. Traditional performance
measurement systems focus on the processes of delivering todays products and services to
todays customers. They attempt to control and improve existing operations - the short wave
of value creation. But the drivers of long-term financial success may require the organisation
to create entirely new products and services that will meet the emerging needs of current and
future customers. The innovation process-the long-wave of value creations, for many
companies, is a more powerful driver of future financial performance than the short-term
operating cycle. But managers do not have to choose between these two vital internal
processes. The internal business process perspective of the Balanced Scorecard incorporates
objectives and measures for both the long-wave innovation cycle as well as the short-wave
operations cycle.
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Measures
Manufacturing Excellence
Number of Accidents
Engineering Efficiency
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Measures
Technology Leadership
Manufacturing Learning
Product Focus
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The four perspectives as mentioned above are highly interlinked. There is a logical
connection between them. The explanation is as follows If an organization focuses on the
learning and the growth aspect, it is definitely going to lead to better business processes. This
in turn would be followed by increased customer value by producing better products which
ultimately gives rise to improved financial performance.
Figure 2: The Cause and Effect relationships among the four perspectives
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Explanation:
Following steps are to be taken so as to utilize the Balanced Scorecard as a strategic
management tool:
1. The major objectives are to be set for each of the perspectives.
2. Measures of performance arc required to be identified under each of the Objectives
which would help the organization to realize the goals set under each of the
perspectives. These would act as parameters to measure the progress towards the
objectives.
3. The next important step is the setting of specific targets around each of the identified
key areas which would act as a benchmark for performance appraisal. Hence, a
performance measurement system is build around these critical factors. Any deviation
in attaining the results should raise a red signal to the management which would
investigate the reasons for the deviation and rectify the same.
4. The appropriate strategies and the action plans that arc to be taken in the various
activities should be decided so that it is clear as to how the organization has decided
to pursue the pre-decided goals. Because of this reason, the Balanced Scorecard is
often referred to as a blueprint of the company strategies.
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To succeed financially,
how should we appear to
our
shareholders?
Financial
Objectives
Measures
Targets
Initiatives
Vision and
Strategy
To
Satisfy
our
shareholders
and
customers, processes
must we excel at?
Internal
Process
Objectives Measures
Targets Initiatives
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future outcomes.
Performance Drivers:
HR managers tend to focus on performance drivers in an attempt to demonstrate
their strategic impact. However, in most cases although they do stress on these
drivers they are unable to make a solid case for it since they do not have the right
measures. Without measures one cannot display HRs actual contribution to the
overall mission. Most of the measures used are very simplistic and it undermines
HRs credibility in the organisation. This credibility is very important since it is
what matters when a manager is faced with a conflict between financial and nonfinancial reports. For example, if people measures are good but financial
measures are bad, the manager will go for the solution that supports the credibility
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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Periodically
test HR
measures
against the
firms strategy
map and
adjust as
required
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goals in such a way that the employees understand what exactly their role in the
organisation is and thus the organisation knows how to measure success in
achieving these goals.
2. Building a case for HR as a strategic asset:
Once a firm clarifies its strategy, HR professionals need to build a clear case for
the strategic role of HR. In concrete terms, they must be able to explain how and
why HR can support the strategy. It is important to look at as much of case
histories and internal as well as external research while going through this phase.
Although it is not wise to imitate others, one can learn a lot by looking through
past experiences of others. Basically, the direct impact on the HR systems high
performance characteristics is non-linearly related to the increase in market value.
This is because in the lower ranges of performance, increase in market value is
basically because HR stops making mistakes it used to make in the past. It is
almost like it is getting out of the way and avoids blunders and wrong practices
that worsen the situation. In the middle range of performance, HR starts
consolidating its efforts. It is learning from its mistakes and in the process does
not actually add much to the market value of the employees and the company, but
once a certain threshold is crossed indicating that the firm has adopted the
appropriate HR practices and implemented them effectively, the market value
soars exponentially. This is mainly because the HR system starts getting
integrated into the overall strategic system of the firm. Basically, the firms must
consolidate the appropriate HR policies and practices into an internally coherent
system that is directly aligned with business priorities and strategies that are most
likely to create economic value. This can lead to significant financial returns to
the company. It is this plan that must be made concrete and shown as a strong
case to make senior management believe in HRs potential.
It is important to note however, that simple changes in an HR practice do not
make a difference. The HR measures describe the whole HR system and changing
the system to cross the threshold mentioned above needs time, effort, insight and
perseverance since results are not directly proportional. This clearly indicates the
requirement of an HR transformation rather than a change. It is this very character
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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Knowledge
Management
System
Strategic
Alignment
System
Performance
Measurement
System
A High
Performanc
e Work
System
Along with value creation, there must also be a strong case for HRs role in
strategy implementation. Strategy implementation rather than strategy content
separates the successful from the unsuccessful firms. It is easier to choose an
appropriate strategy than to implement one. This once again shows the strategic
nature of HRs role in performance improvements. Successful strategy
implementation is driven by employee strategic focus, HRs strategic alignment
and a balanced performance measurement system. The most important HR
performance driver is a strategically focused workforce. Effective knowledge
management combined with the above-mentioned factors creates a strategically
focused organization.
3. Creating a Strategy Map:
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The first two steps clarify the firms strategy. This paves the way for the
implementation process. But, before this is done, the firm must get a clear
understanding of its value chain. The value chain is the complex cumulative set of
interactions and combinatorial effects that create the customer value in the
products and services of the firm. It is important that the firms performance
management system must account for each of the links and dependencies in the
value chain. The Balanced scorecard framework refers to this process and
creating a strategy map. These are basically diagrams that show the links in the
value chain. It shows how different components in different layers interact. It is
what provides managers and employees the big picture of how their tasks affect
the other elements in the firm and how it affects overall strategy. This process
should involve managers from all over the organisation, not just HR. The broad
participation is required to improve the quality of the strategy map. It also allows
each member of the team who is an expert in his or her domain to provide his or
her own insights into what is accomplishable.
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Employee skills
Process
Quality
Internal/Business
Process
cycle time
Processes
On-time Delivery
Customer
Customer Loyalty
Financial
3. Think about how one can measure progress towards these goals.
4.
5.
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The above steps guide the development of the HR architecture and lay the
groundwork necessary to measure the performance relationship between HR and
the firms strategy. The next step is to design the measurement system itself. This
requires a new, modern perspective on measuring HR performance. It also
requires HR to resolve several new technical issues that it might not be familiar
with. To accurately measure the HR-firm performance relationship, it is
imperative that the firm develops valid measures of HR deliverables.
This task has two dimensions.
Firstly, HR has to be confident that they have chosen the correct HR
deliverables. This requires that HR have a clear understanding of the
causality in the value chain for effective strategy implementation.
Secondly, HR must choose the correct measures for those deliverables.
During this process of developing the HR scorecard, the firm might go
through several stages of increasing sophistication.
The first stage is normally the traditional category of measures. These mainly
include operational measures such as cost per hire, activity counts etc. These are
not exactly strategic measures. In the second stage, HR measures have a strategic
importance but they dont help much in making a case for HR as a strategic asset.
Firms may declare several people measures such as employee satisfaction as
strategic measures and these might be included directly into the reward systems.
In this stage, there tends to be a balance between financial and non-financial
measures but there is less of an agreement on how exactly they combine together
to implement the strategy. These are normally hasty decisions and the firms might
have not gone through all the previous steps mentioned above.
The next stage represents a transition point whereby the firm includes nonfinancial measures such as HR measures into its strategic performance
measurement system. The links between the various measures are also identified
i.e. they are placed appropriately in the strategy map. The HR measures now
actually track HRs contribution to strategy implementation.
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In the final stages, the HR measurement system will enable the firm to estimate
impacts of HR policies on firm performance. If the value chain is short and the
strategy map is relatively simple, the complete impact of HR on the overall
performance can be measured. For more complex value chains, the impact can be
more accurately measured on local segments or sectors of the strategy map. These
local impacts can then be assimilated to give a good measure of the total impact
on the firms performance. Thus, each level of sophistication of the measurement
system adds value to the non-financial measures and forces in the firm and
enables a better performance appraisal.
7. Implementing the strategy by using the measures:
The previous step completes the HR scorecard development process. The next
step is to use this powerful new management tool in the right way. This tool not
only helps the firm measure HRs impact on firm performance, but also helps HR
professionals have new insights into what steps must be taken to maintain HR as a
strategic asset. It helps the HR professionals dig deeper into the causes of success
and failure and helps them promote the former and avoid the latter. Implementing
the strategy using the HR scorecard requires change and flexibility as well as
constant monitoring and re-thinking. The process is not a one-time event. HR
professionals must regularly review the measures and their impacts. They must
review the HR deliverables identified as important and see to it that the drivers
and enablers and internally as well as externally aligned. Special reviews of the
HR enablers must be conducted as these have the maximum direct impact on
specific business objectives. Enablers that do not tend to play a positive role
should be replaced.
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5.
It lets
HR
professionals
effectively
manage
their
strategic
responsibilities:
The scorecard encourages HR managers to focus on exactly how their
decisions affect the successful implementation of the firms strategy. This
is due to the systemic nature of the scorecard. It provides a clear
framework to think in a systemic manner.
6. It encourages flexibility and change:
The basic nature of the scorecard with its causal emphasis and feedback
loops helps fight against measurement systems getting too standardised.
Standardisation is good for things that dont tend to have a dynamic nature
but firm performance is a dynamic phenomenon. Every decision needs to
be taken based on the past and future scenarios. One of the common
problems of measurement systems is that managers tend to get skilled to
obtain the right numbers once they get used to a particular measurement
system. The HR scorecard engenders flexibility and change because it
focuses on the firms strategy implementation, which constantly demands
change. With this framework, measures simply become indicators of the
underlying logic that managers accept as legitimate. It helps them look at
the bigger picture and since there are no perfect numbers it makes it easier
for managers to change direction when needed.
We see talent as the emerging single sustainable competitive advantage in the
future. To capitalize on this opportunity, HR must evolve from a Business Partner
to a critical asset manager for human capital within the business. The HR
scorecard is designed to translate business strategy directly to HR objectives and
actions. We communicate strategic intent while motivating and tracking
performance against HR and business goals. This allows each HR employee to be
aligned with business strategy and link everyday actions with business
outcomes.
Garrett Walker, Director HR Strategic
Performance Measurement, GTE
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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9.1.Introduction: Verizon
Verizon HR has effectively designed and implemented a strategic management
system, which is based upon the balanced scorecard model of Dr. David Norton
and Dr. Robert Kaplan of Harvard Business School. The HR Balanced Scorecard
was conceived with new economy organisational dynamics in mind. The
scorecard uses a broad range of leading and lagging indicators which include
overall strategy, operational processes, customer perceptions, and financials to
evaluate the effectiveness of HR initiatives to the bottom line. The HR Balanced
Scorecard provides the means to monitor workforce indicators, analyse workforce
statistics, diagnose workforce issues, calculate the negative financial impact,
prescribe solutions, and track improvements. Verizon believed that in the coming
years the primary source of competitive advantage for their business would
continue to increasingly focus on the talent within the organisation, which meant
that the ability to effectively manage the employee talent within the organisation
was critical.
While management tends to make decisions about how to invest in human capital,
few companies have an effective process to measure the value created by this
most valuable asset. In Verizon, they believed that HR could effectively manage
the value created by thorough investments in employees. Managers knew was
how much was paid to reward, hire, train, develop, and provide benefits to
employees. What managers needed to know, however, was where the investments
were most effective and valuable. Some of the questions that did not have
answers at that time were:
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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1.
2.
3.
4.
5.
6.
7.
8.
9.
into
highly
competitive
business
environment
for
the
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becoming price sensitive and could now demand superior service and advanced
support. The competition was in price, products, and technology. New mergers
and partnerships were beginning to occur; brand preferences and aggressive
tactics from non-traditional competitors were all part of the mix. GTE Business
Strategies were global in scope and translated directly to clearly communicate
targeted business results. Additionally, the workforce environment was
dramatically different and highly competitive. GTE faced the lowest United
States unemployment in 24 years. The employeremployee relationship had
changed; employees were less likely to remain with a single employer;
specialised talent was hard to find; employees expected more work/life balance;
and the diverse talent pool most sought had differing interests and needs. Creating
the value proposition to acquire the talent to drive the business was more difficult
to define and changed rapidly.
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5. HR Capability:
develop core HR competencies
identify key talent for growth and development
invest in technology
invest in employee self-service
better understand the relationship of HR actions to business
outcomes
The biggest problem was communicating and reinforcing the linkage between HR
actions and business results. The business had a clear strategy and targeted
business results. The HR Strategy was directly linked to the needs of the business
and expressed in terms of HR strategic thrusts. The prime objective was to
effectively communicate and execute on strategic intent, motivate and track
performance against organisation and business goals, and to align HR actions
with business results.
9.3.The Team
A newly formed HR Planning, Measurement, and Analysis team was created to
design and implement a tool that would quantify HRs contribution to the
business. The Balanced Scorecard model, which was at the time a leading edge
corporate performance assessment tool, was selected as the framework to adapt
and build an HR Measurement model. J. Randall MacDonald served as the senior
executive for the HR measurement initiative. This role was critical to the success
of the project. Randy MacDonald actively influenced his senior leadership team
within HR to secure their buy-in and to hold them accountable for supporting the
project. The newly formed Planning, Measurement, and Analysis team included a
director and four employees solely dedicated to the design, development,
implementation, and operation of the HR Measurement System. An HR
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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Measurement core team included eight subject matter experts representing each of
the functions within HR and the business units. The core team members were
instrumental in assuring alignment of the measurement model and communicating
and training HR departments on the applications and uses of the HR Scorecard.
The Balanced scorecard model complements financial measures of past
performance with measures of drivers of future performance. Unlike other
accounting
Scorecard incorporates
valuation
of
HR
Establish SMEs within your function
Identify key processes within your function
Establish key performance indicators/measures reflecting key processes
Submit data within designated timeframe
Responsible for overseeing target setting process for your functional area
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1. Strategic Perspective
Measures success in achieving the five strategic thrusts. Since the basis for
the HR Balanced Scorecard is achieving business goals, the aligned HR
Strategic objectives are the drivers for the entire model.
2. Operations Perspective
Measures HRs success in operational excellence. The focus was primarily
in three areas: staffing, technology, and HR processes and transactions.
3. Customer Perspective
Includes measures of how HR is viewed by the key customer segments.
Survey results were used to track customer perceptions of service as well
as assess overall employee engagement, competitive capability, and links
to productivity.
4. Financial Perspective
Addresses
how
HR
adds
measurable
financial
value
to
the
9.4.The Process
A deliberate approach to the project was clearly defined and communicated to
each member of the team and to the HR organisation. The project was established
and organised into four major components: Planning and Alignment, Assessment,
Development, and Implementation.
1. Planning and Alignment set the foundation for the project. Project plan
objectives, and milestones were established. Team education and training
was imparted on business performance management, the balanced
scorecard methodology, and its application to HR measurement.
2. Assessment focused on understanding what was used at that time as
measure to evaluate HR performance and to assess the relative value to the
business.
3. Development began the actual process of designing the HR measurement
model. Defining the measurement criteria and scorecard measures,
establishing targets, defining the process for collecting and tracking
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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Determining HR Deliverables
Output
Competitive Capability
Requiremnents
Translating HR Deliverables
into HR Strategy
Output
Clearly defined business
goals
Identifying Detailed
Metrics
Output
Metrics Model
Metrics Map
Beginning with a clear understanding of the business strategy and goals, the HR
team worked with the business leaders and HR leaders to determine the key
questions to be answered for the business and to determine what key drivers of
the business would translate into clear people requirements. The outcome was an
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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HR brainstorming Session
Line Survey
List of HR Outcomes
List of HR Performance
Requirements
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Contribute to
Corporate
Financial
Shareholder Value
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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Maximise
Human Capital
Customers
Minimize HR
Costs
Corporate/Business Units
Employees Business
Partner
(Strategic
Support)
Organisation
al Health &
Competitive
Capability
Skills,
Competencies
& Leadereship
Low Cost
Provider
Operations
Align HR
Planning with
Business
Strategy
Provide
Proactive
Workforce
Solutions
Ensure a
Strategy
Focused
Workforce
Develop &
Enhance World
Class Programs
Optimize
Service
Delivery
through
Strategic
Talent
Grow the
Talent Pool
Select, AssiMililate &
Retain Key
Talent
Organisation
al Renewal
Hi Potential
Development
Reduce
Turnover
Capability
(Build
Strategic
Competencies
Service Delivery
Design
Organizational
Change Skills
-Staffing
Expectations
-Design
Interventions
-Provide
Reinforcement
Enable a
performance
Based Culture
/Climate
Organizatio
nal
integration
Culture that
Values
-Results
-Customer
-Open
Communication
External trend
data
-HR Best
Practices/
Breakthroughs
Climate that
exhibits:
-Flexibility
-Clarity
-High Standard
Internal
Employee Data
Relationship
Building
HR Planning
-Demographic
Organizational
Strategy
Leadershi
p
Invest in
Leadership
Growth
Leadership
Competencies
Structure
Reward to
Foster
Leadership
Behavior
Industry Trends
Integrated
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Once they had defined the link from the financial objectives, HR focused on the
critical human capital requirements defined by the business. Previously, HR
Performance measurement at Verizon had focused solely on improvement of
administrative and transactional efficiency such as the error rate in employee
benefit processing and the number of training hours delivered per month. The
focus was expanding to include new processes for the HR organisation to develop
exceptional service delivery and increased employee value while ensuring a focus
on cost and value.
As the measurement model was being developed to support the businesss people
requirements, the objectives became clearer. HR recognised that the employees
would need to expand their skills and increase their productivity to provide the
new products and services that business would provide.
1. Sales representatives needed to be able to serve as the customers
telecommunications solution provider.
2. The customer service representatives also would need ready access to
customer account information and be trained to quickly recognise possible
customer needs and to communicate optimal mixes of products, services,
and price plans to customers.
3.
New incentive systems were needed to encourage the new behaviour and
skill acquisition as well as retention plans for critical skill employees.
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linked leadership development with competitive capability, people could see the
relationship between investing in these programs and achievement of long-term
business goals.
9.5.Early Results
An early benefit of the HR Scorecard work was that it provided a process for the
senior HR team to focus on a clear and common objective: to establish a common
strategy for HR in support of business objectives. The high level strategy was for
everyone to be a partner to the business. Rarely, however, did all of the HR
leadership agree on how to implement the strategy because each person had a
different opinion about what being business partner really meant and whom
exactly the customer was. Taking strategy and translating it into a measurement
and management model gave specific and operational definitions for being a
business partner and targeted business customers.
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value was to use the information provided in the scorecard and take action to
influence and improve business performance. For example, one of the most
important areas to manage in terms of cost was employee turnover. Turnover,
particularly within target front-line workforce centres, was critical to productivity
and expense control. High turnover results in lower productivity, higher training,
and staffing and occupational health costs. The impact is across the board and
affects business profitability.
Starting in 1998, with a new disciplined process using the HR Scorecard, HR
professionals tracked and analysed turnover statistics, determined reasons for
turnover, calculated the negative financial impact, prescribed solutions, tracked
improvement rends, and showed dramatic results. In partnership with the business
leadership in targeted call centres (where operators give minor technical
assistance and forward problems to specialists), significant costs were avoided by
reducing the regretted turnover.
Linkages between business processes and value chains to human resource actions
and services were clearly defined as the HR Scorecard became a business tool
understood and used across the HR organisation. Not only are human capital
initiatives needed to increase employee value delivered to the business, they are
vulnerable to business process changes and the measures taken in isolation can be
misleading. For example, in a regional call centre, the external business measures
of customer satisfaction were trending downward and accelerating. When HR
reviewed the call centre results from the HR Scorecard, there was no single
indicator that showed any direct relationship to the customer satisfaction issue;
however, the measures, together with input and analysis by HR professionals and
line management, pointed to both an issue and solution not readily apparent. The
HR metrics showed a very low cost per hire, a very quick cycle time to fill jobs,
and an average employee separation rate. On the surface nothing looked unusual.
Ironically, the staffing metrics showed a high efficiency and cost control. Drilling
deeper showed a high cost of training, a very high separation rate for short service
employees, and declining employee satisfaction for long service employees.
Further analysis revealed that six months prior a significant expense reduction
effort had been put in place for this call centre. HR responded to the required
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Goals/Measures/Targets
Goals/Measures/Targets
Awarenessand
and
Awareness
Communication
Communication
HRBalanced
BalancedScorecard
Scorecard
HR
Awarenessand
andCommunication
Communication
Awareness
RecommendAction
Action
Recommend
Understanding
Understanding
AJAY KUMAR GARG
INSTITUTE OF MANAGEMENT
Modeling
Multi
Historica
What-if
Dimensional
l
analysis
Drill Down
Segmentatio Perspect
Segmentation
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1. The primary source could not be used to collect the data because Balanced
Scorecard concept is not popular among Indian companies.
2. The data is collected through the secondary source so the reliability
depends only upon the data availability.
3. Lastly the duration of the study is only 3 months.
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CONCLUSION
HR Balanced Scorecard has made it possible for HR managers to understand how
to align HR strategy with the overall business objectives. They are able to explain
not only what they are tracking but also how they are performing on essential
strategies for the business.
We see talent as the emerging single sustainable competitive advantage in the
future. To capitalize on this opportunity, HR must evolve from a Business Partner
to a critical asset manager for human capital within the business. The HR
scorecard is designed to translate business strategy directly to HR objectives and
actions. We communicate strategic intent while motivating and tracking
performance against HR and business goals. This allows each HR employee to be
aligned with business strategy and link everyday actions with business
outcomes.
Garrett
Walker,
Director
HR
Strategic,
Performance
Measurement, GTE
Business environment and the objectives and strategies will continue to evolve,
and HR managers will continue to be flexible and creative in supporting the
changes. The value of the HR Scorecard as a tool is that it can get HR to the new
goals and measures and through the process ensure continued learning and change
management.
Building an HR scorecard should not be considered a one-time or even an
annual event. To manage by measurement, human resource leaders must stay
attuned to changes in the downstream performance drivers that HR is supporting.
If those drivers change, or if the key HR deliverables that support them change,
the scorecard must shift accordingly. In building an HR scorecard for your own
company, you may therefore want to include a component indicating how up to
date the HR deliverables are.
Brian Becker, Mark Huselid and Dave Ulrich
HR Scorecard is not a only solution to align the human resource with the overall
business strategy. It cannot solve all the problems of HR.
HR scorecards are not panaceas. They will not cure a poorly run HR function.
However, they do provide a means by which you can collect rigorous, predictable
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT
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and regular data that will help direct your firms attention to the most important
elements of the HR architecture. Constructed thoughtfully, the HR scorecard will
help your organization deliver increased value to its employees, customers and
investors.
Brian Becker, Mark Huselid and Dave Ulrich
RECOMMENDATIONS
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REFERENCES
1. Research papers
Human Resource Department Management Report. January, 2003. A Balanced
Scorecard Changes HR Mgmt From Art to Science.
Nelson, Paul. 3/5/2002. Is the balanced scorecard HR's ticket to the board?
Personnel Today
Bain and Co. 9/1/2003. Bain Study Reveals How Firms Are Using Three Main
Analytic Tools. Accessed from www.bain.com.
McKewen, Darren. 2004. HR Performance Scoring Demonstrates Results. Career
Journal.com Accessed from website.
Frangos, Cassandra. The Balanced Scorecard: Creating a Strategy-Focused
Workforce. Accessed from http://www.accountingnet.com/x40642.xml.
ICG Research. 2003. Understanding the Balanced Scorecard: An HR
Perspective Executive Summary available for download on http://www.hr.com.
2. Websites
SHRM Metrics forum: http://www.shrm.org/metrics/
Balanced Scorecard Collaboratives Strategy-Focused Organization series:
https://www.bscol.com/bsc_online/learning/sfo/
www.HR.com (has upwards of sixty articles on BSC, including interviews with
Kaplan, Norton)
Balanced Scorecard Institute: http://www.balancedscorecard.org/
3. Book
Achieving Functional Excellence through Balanced Scorecards edited by
Venkata Nimeesha Posa. Page no. 1 to 34.
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