Cuadro De Mandos

Scorecards and Dashboards
Translating HR Strategies Into Meaningful Metrics and Staying Focused
By Charles H. Hannabarger and Frederick S. Buchman

Human Resources Scorecards and Dashboards
Translating Human Resources Strategies into Meaningful Metrics and Staying Focused Today, achieving competitive advantage for your business is more complex than ever. Knowing that you are headed in theright direction for the long-term is tough. It’s hard enough just knowing where you are sometimes, let alone where you are going and why.

Not Just for Labor Relations Anymore
There was a time when the Human Resources organization was a small, tightly focused group within a company, mostly focused on labor relations. Today, Human Resources is involved in almost every aspect of the business, withdirect impact to the bottom line. The end result? Human Resources is now involved at very strategic levels within a company. The problem is, many Human Resource Departments are scrambling to keep up: hiring the right people, effectively providing the right training, pursuing competitive employee pay and benefits, managing shared services and outsourcing, just to name a few.

Finding Help in theBalanced Scorecard
Though it has been around for some time, there are some advances being made in the Balanced Scorecard. Once viewed as only a process, it is now being viewed as a system for management. A critical element of that system is Human Resources. Recognizing this, successful HR departments are helping to manage their organizations using the Balanced Scorecard, by planning theirperformance measurements across the 4 distinct ‘legs’ of the balanced scorecard, to maximize their overall financial performance while building a solid foundation for the future. The 4 ‘legs’ are: 1. Customer focus, 2. Financial performance, 3. Internal process performance, and 4. Employee learning and growth. The relationships between the 4 ‘Legs’ are depicted directionally in the figure below. Theorganization must develop employee competence and skills within solid business process performance, to enable customer focus and satisfaction, resulting in desired financial performance and achieving competitive advantage and business growth. HR plays a vital part in developing competent, knowledgeable human resources to the ever changing process and performance demands of the business.

Theprocess to develop and implement a balanced scorecard is really quite simple, yet somewhat involved, consisting of four steps, as depicted in the diagram below: 1. Create a Strategic Map; 2. Set up a balanced scorecard, 3. Design and implement dashboards to monitor and adjust in real time, and 4. Continuously review, assess, and improve the system through feedback and feed forward loops back to thescorecard and strategy map.

It Starts With the Strategy Map
Every company has 2-3 major strategic goals or objectives for the year, or the next 5 years. The Strategy Map establishes key objectives within the framework of the 4 ‘legs’ as they relate to achieving the overall goals of the organization. With this map, the organization can develop strategic initiatives that will ensure the goals aremet, focusing on all 4 ‘Legs’ collaboratively. The following figure provides a good example of a top-level strategy map, linking the 4 ‘legs’ to the 3 long term goals of an organization.

‘Legs’ of the Balanced Scorecard
Customer Focus Financial Performance

Growth & Market Share Create desire for our products, at our price Increasing Revenue, Price Competitive
Deliver when, where, and howmuch, f lexible to demand changes Demonstrated Leaders and Experts in the Industry

Highly Regarded Expert in the Industry Looked to for Expertise First

Increased Shareholder Value Profitability Leader for our Shareholders Higher Margins, Cost competitive

Business Processes
Knowledge, Skills and competence

Demonstrated Best Practices, LeadingEdge Processes Demonstrated Leaders and...