Francis Jeyaraj

The essay introduces the framework of the HR scorecard, which is modelled after the Balanced Scorecard developed by Kaplan and Norton. The first few sections describe the problems with traditional approaches to viewing HR’s role in business performance. It explains why HR should be looked at as a strategic asset. The HR architecture is then described in brief. It highlights the links between the HR scorecard and the Balanced Scorecard. The nature of HR deliverables including performance drivers and enablers is explained. The seven-step model explains the details of implementing an HR Scorecard. The basic benefits of the HR Scorecard are highlighted. Finally, to highlight the implementation details, a case study of the Verizon HR scorecard is presented.
The HR Balanced Scorecard includes four perspectives:
— 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.
— Operations Perspective
• Measures HR’s success in operational excellence. The focus was primarily in three areas: staffing, technology, and HR processes and transactions.
— 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.
— Financial Perspective
• Addresses how HR adds measurable financial value to the organisation, including measures of ROI in training, technology, staffing, risk management, and cost of service delivery.
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.
• 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.
• Assessment focused on understanding what was used at that time as measures to evaluate HR performance and to assess the relative value to the business.
• 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 results, and creating the communications strategy were the key deliverables in this phase.
• Implementation operationalised the HR Scorecard from the drawing board to a management tool for HR to assess performance and value added to the business. Data collection, results reporting, evaluation, and analysis all came together as the scorecard was implemented. Communications and training were delivered to the HR organisation as the HR Scorecard rolls out. Once the team was selected, and the mission and objectives were established and communicated, the work to link Business Strategy to HR Strategy began.