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The HR Dashboard

Developing a Powerful Measure for tracking HR Results
Lee Wiersma and Jeffrey Russell

Our Objectives
1. Identify the purpose and importance of measuring HR’s effectiveness. 2. Discuss the two types of measures: lagging and leading — and how to use each. 3. Identify the prerequisites for developing an “HR Dashboard” of leading indicators. 4. Describe methods for developing the HR Dashboard. 5. Identify how the HR Dashboard is used to influence HR, HRD, and OD policies and practices.
© 2003, Russell Consulting, Inc. and UW Credit Union

Improving Human Performance
• How can HR and HRD professionals move an organization toward improvement in human performance? • What HR initiatives enable great performance as an organizational outcome?

© 2003, Russell Consulting, Inc. and UW Credit Union

Measuring HR Results . . .
• How do you know if your HR efforts are successful? • How do you measure the effects or results of these HR, training, and OD efforts? • How will you know that your efforts and initiatives have paid off?
© 2003, Russell Consulting, Inc. and UW Credit Union

Russell Consulting.Measuring Human Health • What are the key signs of human health? • How do you know if you are healthy or unhealthy? • Which of your “vital signs” might you chart over time? • What might happen if you ignore these vital signs? © 2003. Inc. and UW Credit Union .

• Failing to measure these vital signs — or ignoring the signs can lead to . Inc.Measuring Health After the Fact • Tracking your “vital signs” along the way can give you an early warning of emerging health concerns. and UW Credit Union . . © 2003. . Russell Consulting.

• Indicates the end result of the system. Use of the “lagging” term reflects the delay or gap between your actions and a change in the final end result.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. Characteristics • Outcome measure. not what is happening. and UW Credit Union . Russell Consulting. • Tells you what happened. © 2003. Inc. • Less effective at measuring the effects of specific changes made to the system.

unemployment rate. citation from traffic enforcement. national debt. • Customer retention. • ? Lagging indicators have a direct bearing on a company’s bottom line. stroke. • Organizational performance. . and UW Credit Union . Inc. etc.Lagging Indicator Examples Non-HR Examples . HR Examples . • Economy — GNP growth. engine failure. etc. © 2003. • Employee productivity. . death. etc. • Health — heart attack. • Automobile — arrived safely at destination (or not). . Russell Consulting. • Employee retention. blown tire. liver failure. There is a business interest in and financial benefit from improvement in these areas. • Employee performance. .

and UW Credit Union Characteristics • Process measure. Since leading indicators measure the results from your processes. Russell Consulting. • Provides an “early warning” of emerging results.Leading Indicators Leading indicators are process measures that help you gauge incremental progress you are making toward key HR outcome (lagging) measures. • Tells you what is happening now. Inc. • Can be tracked over time. • Very responsive to changes in the system . They are the performance drivers — the key factors that enable the overall end result (outcome) you want to achieve. there is less of a delay between your actions and a change in the system. • Immediate feedback to the system. © 2003.

exchange rates. Russell Consulting.Leading Indicator Examples Non-HR Examples . etc. blood pressure. • Automobile — gas gauge. • Health — Heartbeat. HR Examples . . blood sugar levels. etc. public confidence. there is not often an immediate financial benefit to the company. etc. . layoffs. • Customer satisfaction surveys. and UW Credit Union . capital equipment purchases. While there is a business interest in improvement in these areas. . • Employee absenteeism. rumble strips on the roadway. © 2003. • Economy — home starts. • Employee satisfaction surveys. engine temperature. oil level. body temperature. stock market value. speedometer. Inc. • ? Leading indicators have an indirect bearing on a company’s bottom line. indicator lights. . cholesterol levels. GPS coordinates. • Employee sick leave use. odometer.

Our history 2. HR Issues 4. Our environment 3. Russell Consulting. Data-driven decisions © 2003. Inc. and UW Credit Union .UW Credit Union About the Organization 1.

• Madison. © 2003.000 Members. 6 branches. and UW Credit Union . – 90. $2. – $650 million in assets. Russell Consulting. 2 branches. campus branches. – Third Largest Credit Union in Wisconsin. Inc. • Milwaukee. • Green Bay & Whitewater. • 88 members.500 in assets.History – Founded in 1931. – 10 Branches.

• High Tech / High Touch.etc – Active and Progressive Board of Directors.Our Environment – Volatile Environment • Strong tradition of member service. Russell Consulting. – Local – Non-traditional. Inc. • Commitment to being “Employer of Choice”. insurance companies. internet. • Strong ties within UW Madison community. © 2003. • Increased competition with markets. and UW Credit Union .

and UW Credit Union . “Order Takers” to “Retail Environment”. – Human Capital Improvement • • • • Improve retention Attract talent Performance measurement Skill training © 2003. Appropriate growth.HR Issues – Cultural Change Ongoing • • Negotiate change Introduce level of accountability. Inc. – Shift in Business Focus • • • Known as “Student Bank” in past. Russell Consulting.

ETA • • • Staff Satisfaction Compensation/Rewards Internal Customer Satisfaction © 2003. OPM. Russell Consulting. and UW Credit Union . Deposit Growth.Data Driven Decisions – Critical Measures (Balanced Scorecard) • Member Measures – Satisfaction. Inc. retention • Financial – ROA.

Core Values. Russell Consulting. © 2003.What is the HR Dashboard? The UW Credit Union’s HR Dashboard is a panel of indicators that present a reading of the relative health/satisfaction of credit union employees on three dimensions: QWL Score. Inc. and Overall Job Satisfaction. and UW Credit Union .

A desire to communicate progress on key indicators along the way. Inc.Why an HR “Dashboard?” 1. The importance of leadership accountability. 6. 3. 5. Desire to stay connected to employees. The need for timely feedback. Russell Consulting. 4. 2. Ensure organizational alignment. 8. Traditional employee surveys too infrequent. Desire to establish measurable targets. and UW Credit Union . Enable HR and leadership to make adjustments along the way. © 2003. 7.

and UW Credit Union . 2. Integrated performance management system.Pre-Conditions 1. Technological capability. Culture of accountability. 4. Intelligent use of the HR Dashboard. Clarity of vision. © 2003. Inc. 5. Russell Consulting. 3.

” © 2003.” • Strategic Position: “Grow through respect in our marketplace. and UW Credit Union .Clarity of Vision Organizational Alignment Critical • Purpose: “Working for members to enable their financial dreams. Russell Consulting. and by developing relationships through customer intimacy. Inc.

Inc. Russell Consulting. © 2003.Culture of Accountability • Core Values – – – – – Act in the members' best interest Embrace Change Education Teamwork Work/Life Balance • Staff perception measured on regular basis. and UW Credit Union . • Leadership expectations defined – Multiple feedback mechanisms utilized including 360 degree feedback.

www. The Cardwell Group. coaching. Russell Consulting. Inc. Development of position accountabilities. © 2003. and UW Credit Union . James Cardwell & Karla Norwood. Consistent & regular feedback.connectionsonline. Connections Process Implemented in 2001. Development of skill inventories.Integrated Performance Management System • • • Traditional performance appraisal system disbanded in mid 1990’s. Compensation system not up-to-date. Base pay Bonus (Variable Reward) • – – – – – – – Pay for performance compensation system implemented in 2002. & alignment.net / 800-395-1410. inadequate merit type system.

Inc. – Communication • • • Up-to-date and relevant. training. policies. Procedures. • Use of intranet technologies.Technological capability • All staff must have sufficient access. – – Delivery system for “Connections. Russell Consulting. and UW Credit Union . Share results of data.” Delivery of surveys • Use of E-mail systems © 2003.

Inc. © 2003. Russell Consulting. Maintain historical data. • Continually reaffirm commitment to it. and UW Credit Union . Do not share names of individuals mentioned in a bad light.Intelligent Use of Dashboard • Define uses for dashboard • Summarize and organize data • Do not censure information – – – Complete data available on intranet site.

1998. 2001. and UW Credit Union . and 2003. Inc. Russell Consulting. © 2003.Developing the HR Dashboard Comprehensive Employee Attitudes Survey (EAS) conducted in 1995.

Russell Consulting. © 2003.Dimensions of the EAS • Quality of Worklife Dimensions: leadership. Inc. • Open-Ended Questions — (a) what people like best about working for credit union and (b) ideas to improve QWL. pay/benefits. • Overall Job Satisfaction — 10-point scale. etc. supervision. and UW Credit Union . communication. [53 questions] • Core Values — Measuring the “gap” between actions and aspirations. • Job Descriptive Index — six dimensions.

and (d) two open-ended questions. 3. Reporting Results — Three “instruments” on the HR Dashboard © 2003. and UW Credit Union . Administration — e-mail link to survey. 5. (b) five core values. 2. Russell Consulting. Quarterly Survey — (a) 20 questions. Inc.1%. (c) overall satisfaction. 4.Quarterly HR Dashboard 1. Sample Size — 60 to 65 employees. Confidentiality — external consultant. Validity — accurate +/. 6.

• I have input into how I perform my job. © 2003. and UW Credit Union .Example Survey Statements Strongly Disagree Disagree slightly disagree slightly agree Agree Strongly Agree 1 2 3 4 5 6 • I feel pride and a sense of accomplishment in the work that I do. Inc. • The Credit Union’s managers and supervisors have clearly communicated the future direction and goals of the Credit Union to me. • My direct supervisor gives me clear performance expectations that enable me to do quality work. • I feel appreciated for the good work that I do. Russell Consulting.

anticipate and support change to meet corporate strategies and goals. Russell Consulting. take calculated risks and learn from experience. Current Never Almost Never Sometimes Generally Almost Always Always 1 2 Almost Never 3 Sometimes 4 Generally 5 Almost Always 6 Always Desired Never 1 2 3 4 5 6 The difference between “current” and “desired = A “gap of 2.0 © 2003.Example Value Statements • Embrace change: proactively seek improvement. and UW Credit Union . Inc.

Russell Consulting. Very Dissatisfied 1 2 3 4 5 6 7 8 9 10 Very Satisfied © 2003. and UW Credit Union . how satisfied are you overall with working at the University of Wisconsin Credit Union? Place a mark in the box that best reflects your overall job satisfaction level here. Inc.Overall Job Satisfaction Considering everything.

What is the HR Dashboard? The UW Credit Union’s HR Dashboard is a panel of indicators that present a reading of the relative health/satisfaction of credit union employees on three dimensions: QWL Score. Russell Consulting. and UW Credit Union . Core Values. Inc. and Overall Job Satisfaction. 3/03 © 2003.

Cooperation Employee Gro wth HR Scorecard Value 4. .73 4.6 1 4.77 4.8 9 Dashboard Value 4.60 4.6 4 4.62 Annual goals .9 2 4.50 4.0 0 4.4 0 4. Russell Consulting.8 0 4. Inc.QW L D im ensions for D ecem ber 2002 QWL Dimensions Leadership Ma nagement Communication Pay & Benefits Empow ermen t Jo b Pride W ork Environment Depart.50 4.72 4. . and UW Credit Union . 4.H R Dashboard -.90 5.7 0 HR Dashb oard Scores for Q W L Dim ension s © 2003.74 Meets Far Exceeds 4.

1 2001 June '01 Sept.6 Mean -.4 4.5 4. 02 December 02 Time of Assessment © 2003.2 4.3 Far Exceeds Meets 4.HR Dashboard: Composite QWL Score 4. and UW Credit Union . '01 March '02 June 02 Sept.HR Dashboard QWL Score 4.7 4.8 4. Russell Consulting. '01 Dec. Inc.

Inc.8 6. '01 March '02 June 02 Sept. 02 Decem ber 02 Year of Employee Assessment © 2003.4 6.2 Far Exceeds 7.2 1995 1998 2001 June '01 Sept.8 March 2003 assessment = 7.6 6.94 7.6 7.4 7. and UW Credit Union . '01 Dec.HR Dashboard: Overall Job Satisfaction 7.0 Mean Overall Job Satisfaction Meets 6. Russell Consulting.

00 . Inc.HR Dashboard: Composite Core Values Gap 1. '01 March '02 June 02 Sept.80 2001 June '01 Sept.10 1. '01 Dec.50 1. Russell Consulting. and UW Credit Union .20 1.90 . 02 Decem ber 02 Year of Employee Assessment Note: The ideal "gap" between "what is" and "what should be" = 0 © 2003.40 Mean Composite Core Values Gap Score 1.30 1.

1 1.4 1. Russell Consulting. and UW Credit Union .HR Dashboard: Core Values Gap Score -. 02 Decem ber 02 Time of Employee Assessment Note: The ideal "gap" between "what is" and "what should be" = 0 © 2003.2 1.3 1. '01 March '02 June 02 Sept.6 GAP: Promote a harmonious balance of work/non-work 1.0 2001 June '01 Sept. '01 Dec.Work/Life Balance 1. Inc.5 1.

Inc.HR Dashboard: Composite QWL Score -. '01 Dec. and UW Credit Union . Russell Consulting. '01 March '02 June 02 Sept.0 1995 1998 2001 June '01 Sept.2 QWL Score Retail Mean 4.6 4. 02 December 02 Support Time of Employee Assessment © 2003.4 Far Exceeds Meets 4.0 4.8 What happened after this assessment? 4.Retail & Support 5.

5 Retail Support 6.0 1995 1998 2001 June '01 Sept.0 7.HR Dashboard: Overall Job Satisfaction 8. '01 Dec. and UW Credit Union . Inc. 02 December 02 Mean Overall Time of Employee Assessment © 2003.0 6. Russell Consulting. '01 March '02 June 02 Sept.5 7.

HR Dashboard: Core Value Gaps -.4 What happened after this assessment? 1. Russell Consulting. and UW Credit Union . 02 December 02 Retail Gap Time of Employee Assessment © 2003. Inc. '01 Dec.2 1.6 1995 1998 2001 June '01 Sept.Support & Retail 1.8 Desired “gap is 0 Composite Gap Support Gap Mean .0 . '01 March '02 June 02 Sept.6 1.

Lessons learned — What did we do that worked? Didn’t work? © 2003. Inc. Managerial performance feedback. HR programs and services. 3. 4. 2. Variable pay. and UW Credit Union .Applying the Dashboard 1. Russell Consulting.

Inc. Explore the differences between groups (retail vs. Relationship to other critical measures: – – – – – Member/Customer Satisfaction Member Retention Financial Performance Employee Satisfaction Internal Customer Service 6. support).Applying the Dashboard 5. 7. © 2003. and UW Credit Union . Focus of monthly management meetings. Russell Consulting.

02 OJS Time of Assessment Note: Each critical measure uses a different scale © 2003. 01 Dec. 02 Dec. Russell Consulting. and UW Credit Union . Inc.Comparison of Financial Critical Measures Critical Indicators Line Chart 30 25 20 15 ROA OPM 10 DG ETA 5 Mean QWL 0 March 01 June 01 Sept. 01 March 02 June 02 Sept.

24% 1.82 4. and UW Credit Union .09% 7.74% 13.60% 4.Employee Critical Measures to Financial Measures Financial Critical Measures ROA OPM DG ETA March 2001 June September December March 2002 June September December 1.15% 1.25% 8.61 7.94 4.62% 26.96% 5.40% 19.42 4. Russell Consulting.59% 8.09 4.22 6.15 7.45% 25.55% 16.13% 1.27 6.66% 8.47 6. Inc.57% 7.95% 1.73% 19.13% 20.21 6.51 © 2003.04% 1.14% Employee Critical Measures QWL OJS March 2001 June September December March 2002 June September December 4.21% 21.57% 26.50% 8.6 4.08% 8.99% 9.72 7.47 6.71% 27.07% 8.60% 13.42 4.92% 7.35% 18.54% 1.10% 1.72 4.

Employee Critical Measures to Customer Satisfaction Measures Financial Critical Measures Retention Member Service March 2001 June September December March 2002 June September December 88.61 7.72 4.50% 83.09 4.51 © 2003.72 7.27 6.47 6.47 6. and UW Credit Union .6 4.42 4.38% 86.88% 83.42 4.50% Employee Critical Measures QWL OJS March 2001 June September December March 2002 June September December 4.08% na 84.93% 85.75% na 84.21 6.22 6.15 7.82 4.95% 92.00% na 83.94 4.87 na na na 88. Inc. Russell Consulting.

• Limited training for support staff. Russell Consulting.Differences Between Retail and Support Departments • 2001 kicked off retail training for frontline staff. and UW Credit Union . • Active improvement of retail management • Reorganization of support staff & departments. Inc. © 2003. we needed to be “Frontline or Retail focused first”. • Beginning of “Refi” boom. • In order to be member focused.

4. © 2003. Allow time for the HR Dashboard to tell the story. 3. Inc. and line charts. bar charts. don’t move too quickly to make changes or adjust your HR efforts. and UW Credit Union . Russell Consulting. Select the right measures — and adjust as issues emerge.Challenges/Lesson’s Learned 1. 2. Present the HR Dashboard graphically: radial dials. Establish realistically challenging goals or targets. Provide guidance to leadership and staff in how to interpret and respond. 5.

Use open-ended comments carefully.Challenges/Lesson’s Learned 6. Anchor the quarterly assessments with periodic assessments of the entire employee population. 9. Russell Consulting. Use the HR Dashboard to help you identify areas of “high leverage” for effecting change in employee attitudes. If using the HR Dashboard in variable compensation: (a) use as only one component and (b) test the HR Dashboard methodology for at least one full year to test its volatility and its responsiveness to managerial actions. 7. and UW Credit Union . © 2003. Inc. 8.

What is YOUR HR Dashboard? What are the key dials on your HR dashboard? © 2003. Russell Consulting. and UW Credit Union . Inc.

RussellConsultingInc.org For a FREE copy of our PowerPoint presentation (in PDF format) go to: www.Thank you! For more information on the HR Dashboard and the UW Credit Union . .uwcu. . www.com www.com .RussellConsultingInc.