The Architectural Emphasis: Which HR Value Chain Elements Go into the Scorecard?

Since the primary focus of HR’s strategic role is value creation, thinking about HR architecture means taking broad view of HR’s value chain. Just as a corporate scorecard contains both leading and lagging indicators, the HR Scorecard must so the same. Of the four HR architecture elements that we recommend including in the Scorecard- High Performance Work System, HR system alignment, HR efficiency, and HR deliverables- the first two are leading indicators and the second two are lagging indicators of HR performance. The following illustration gives you a basic idea of how Hi-Tech’s R%D HR Scorecard might look. Of course, an HR Scorecard for the entire company would include many more entries. This diagram represents a concise but comprehensive measurement system that will both guide HR strategic decision making and assess HR’s contribution to R&D’s performance. More important, the scorecard is represented in such way that it reinforces the “casual logic” or strategy map of how HR creates value at Hi-Tech. HR Scorecard for HI-tech’s R&D Function

* Extent to which a validated competency model serves as the basis for hiring, developing, managing and rewarding employees * Percentage of the workForce that is regularly Assesses via a formal performance appraisal

In R&D * Percentage of selection decisions based on competency model. * Percentage of hires made at “elite” level * Extent to which Appropriate retention policies have been developed and implemented. * HR Alignment Index Above 80 percent In Manufacturing * Recruiting cycle Time at or below 14 days. * HR Alignment Index above 80 percent

* Percentage of employees who have the requisite technical competencies. * Percentage of turnover among high performing R&D scientist. * Percentage of open Job requisition in Manufacturing.


Lower R&D Cycle time

* Cost per hire

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