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Strategic Alignment with HR Score card

Strategic Alignment with HR Score


Card
An Approach to linking Plan, People and Performance

Title of the article:


Strategic Alignment with HR Score
Card
Authors Name
:
Manjushree Gupta
Course
: Executive MBA-2015, Christ University,
Bangalore
Reg no
:
1528944
Email id
: manjushreegupta@gmail.com
About Author
:
HR Generalist with over 6+ years of
experience in HealthCare IT & Medical Devices Company. Hands
on in entire gamut of HR activities, Providing as a liaison & Acting

Strategic Alignment with HR Score card

Abstract
Globalization of many companies and capital markets over the past two decades has changed the whole
business landscape, characterized by speed, innovation, less cycle time, quality, and customer
satisfaction. Firms, backed with Analytics and reporting have cutting edge technology to provide
innovative, lower-cost and optimal solutions for their customers, but these technological innovations
have led to rapid & constant movement of customers and competitors. All of these trends are pushing
companies to manage their assets as effectively as possibleespecially their Intangible Human
Assets.
In many organizations the top management wants to believe that people are the most important asset
but cannot understand how HR discipline can make this vision possible. The reason for this is HRs
influence on the firm is difficult to measure. It is said that what gets measured gets managed and what
gets managed gets accomplished. Hence it has become imperative to measure our activities.
This article emphasizes the evolving roles of HR and its imminent presence at the strategic table more
than ever and the importance of aligning HR discipline to the business goals of the organization and
managing HR as a Strategic Asset. Utilizing HR measurements in bringing visibility to HRs contribution
to organization growth. Highlighted in this article are the effective measurement techniques that can
accomplished with the implementation of HR Scorecard and HR metrics in providing the management
with actionable information, importance of choosing Strategy driven HR metrics and SMART KPIs over
the usual ones.
This article recognizes HR Score card as a strategic management tool used by HR departments to
reorganize their goals to Strategic goals of the organization. This article brings out a Strategy Map and
Key Performance indicators on the HR level. It also provides overview of how various HR activities are
supported in order to achieve HR goals. Overall objective of this article is to show the possibility of using
HR Score Card as a method for Management and Measurement of Human Capital.
Key words: SMART Key Performance indicators, Strategic goals, HR Scorecard, Strategy Map, HR
Metrics.

Strategic Alignment with HR Score card

Table of Contents
Preface
4
Literary Review
..5
Problem
Definition6
Objectives
.7
Proposition
.8
Importance of
KPIs9
Methodology
.10
Issues faced by Synergy Before HR Scorecard
implementation.12
HR Strategy
Map.13-14
Table wise Depiction of HR Strategy
Map.16
HR KPIs for Dash
Board17-18
Discussion on Advantages after the HR Scorecard
implementation 19
Conclusion
20
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Strategic Alignment with HR Score card

Bibliography
..20

Preface
Human Resources is the only department in organizations that has the mandate to
speak for the people and through people.
HR - Intangible Human Asset
As HR we are skilled in group process techniques we are the subject matter
experts on how to maximize human potential and yet are rarely called to Lead,
Strategize and design a high performance leadership team. We have to allow
ourselves to be marginalized-sidelined as implementers of Corporate Directives
despite capable of being so much more and offer much more.
Top Leadership finally needs to awaken to the new role of HR and increase its
value as one of the key player in designing the workplace of the future. These
arent soft skills rebuilding from a bad economy and gaining the commitment of a
completely different workforce in a brand new paradigm shift of Global Corporate
Structure will be some of the hardest tasks before us for the near future.
The winners will be those organisations that invite HR to the corporate table and
listen carefully as HR explains what it has to offer when it comes to being
most influential asset of the organisation .
Below mentioned points are why I think HR should hold a prominent place at
strategic table
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Strategic Alignment with HR Score card


HR builds trust
HR is not only limited to appraising people performance but also peoples
Heartbeat in the organization through Constant Employee Dialogs, Focus
groups. HR management deals with the most dynamic asset of the organisations .
If HR mgmt. is assertive in bringing the clear voice of its employees affront, it can
offset the critical impact the employee dis-enfranchisement may have on business
strategy. Trust is the most valuable ingredient when its comes to any relationship.
In the corporate world trust hugely impacts speed, quality and cost, and nothing will
undermine an organisation faster than Trust Bankruptcy.

HR the key liaison between Top Management and the workforce, holding
hands with each entity and convey to eachother, what is truly meant. Quite often
Top management speaks in lofty, corporate terms that lack any practical reality to
the workforce. On one hand the workforce hears these talks as so much selfaggrandizing for maneuvering and control. Top management in turn considers the
worker as a complainer who is always out for personal gain and cant see the
business limitations the organization faces. Somewhere between these two voices,
HR must function as the bridge the Counselor ,the facilitator of understanding
that will get the focus back on a true path of mutual respect and value.

Literary Review
Coming of Age for HR Transforming roles
Until the 80s, HR functions in India generally involved smoothening relations
between the management and workers. It has grown to include performance
management
and
resource
planning.
And
in
the
recent
times, HR
transformation has been a buzzword in India Inc.
The reinforcing voice has been to align HR with business goals, and to focus less on
basic functions and more on adding value. There has been a shift in focus globally,
from enhancing internal operations to maximizing contribution to the corporations
business.
With HR managers growing importance. In India, Globalization and the
resulting sea change in corporate culture in India have impacted HR. As has the
tightening supply of skilled workers. Talent crunch had not been a critical factor in
the 1980s..
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Strategic Alignment with HR Score card


The role of HR personnel was to improve productivity and create an
acceptance of technology. Things, however, changed in the 1990s, when there was
a distinct shift in the economy from manufacturing to the services sector.

Changing demands on HR have given rise to new challenges. The top challenges
cited by HR leaders around the world in the Mercer study are:

Acquiring key talent (43%),

Driving cultural and behavioural change in the organisation (40%) and

Building leadership capabilities (40%).

These challenges directly correspond with the new version of transformation and
shift from a focus on process and technology to human capital strategy. .(Business
World)
To manage talent, HR managers are placing more emphasis on learning and
development. The shelf-life of knowledge is less than two years and, therefore,
continuous learning is key to succeeding in business today, says Ramkumar VP HR
ICICI.
Experts say most progressive companies are spending more time in training
and development and creating a talent pool. Investing in education helps enhance
the market, produce more employable workforce and build manpower, says Prabir
Jha, global head, human resources, Dr Reddys Laboratories Ltd.
51% of the respondents report directly to the CEO, up from 28% in 2003. HRs
direct reporting to the CEO is a positive trend, showing HR has direct involvement
with business and operational planning, says Business India.

Considering the transforming roles of HR I would like bring to focus some of facts
the hinders it, in my understanding the key issue is that the leadership team
creates the strategic plan and hands it over to managers and frontline employees to
execute. What happens between leadership and management is the problem.
There is no in-depth explanation of the strategy and, if there is, it sounds almost
like a foreign language, loaded with words like stakeholder value, profitable
growth and creating value for customers.

Strategic Alignment with HR Score card


Employees need to see strategic initiatives broken down into digestible chunks
called goals and objectives.
HR has the perfect skill sets and tools to drive goals and objectives down to the
employees on the frontline HRs strategic role goes well beyond a team role in
deciding the strategy. Execution is where most s struggle or fail, and HR can
significantly impact execution( Rosanna Nadeau, SPHR)
The Best way for HR and talent leaders can demonstrate they are strategic: throw
out your existing hiring processes and start over by implementing a process that
actually raises your companys talent level, not just sustains it.
Aligning HR and strategic plans is an important endeavor for every . Studies
strongly support the alignment between strategies, HR, and performance and thus
show the potential role HR can play in implementing strategy and developing an
organizations competitive advantage (Wright, Smart, McMahan, 1995).

Problem Definition
Lack of Alignment and HR Visibility
To focus more on strategy, many companies have started outsourcing
administrative and transactional HR functions. Use of outsourcing agencies or
automated self-service tools for all transactional HR activities is the key to creating
time and capacity for the HR to provide strategic support, says Business India
One way to examine the not-so-successful relationship between the business and
HR is to look at the types of services HR delivers. These include strategic functions
such as workforce and performance management, talent management and
management, besides the basic HR operational processes such as employee
support, compensation and benefits support, HR operations, and so on.
The Mercer findings show that HR departments spend almost three-fourths of their
time on traditional HR activities, such as recordkeeping, compliance and delivering
HR services. In Asia, the gap between current and desired for
transactional work is closing, while the gap between strategic partnering
and designing programs or systems is growing, says Adam Kassab, senior
consultant, Mercer Human Resource Consulting Ltd.
This suggests that HR, after its recent exposure to the realities of the business, has
a greater understanding of the actual challenges involved in playing a strategic
role.

Strategic Alignment with HR Score card


HR is either growing into, or evolving into, a value-based intervention role in India.
but the industry needs to deliver returns on human resources faster.

Implementing a business process that achieves Strategic edge would be the ideal
opportunity to demonstrate HRs Alignment and Visibility. But the main
problem is that HR and talent leaders do exactly the opposite.
Rather than improve quality of hire which represents an awesome
opportunity We go out of their way to maintain their existing processes thinking
that cost control and improved efficiency is a more important goal. Often it is found
that most hiring process are designed to clone a companys existing Strategic
competency blue print, not improve it, and doing these things faster is not a
strategy that leads to organizational goals.

According to Forbes magazine


15% believed senior management was well informed about what employees think
and do
34% did not have a great deal of trust in management
20% agreed that their HR department had a clear strategy guiding its activities
36% agreed that people received the training they needed to do their jobs well

A litmus test of whether transformation has set in is the role of the companys HR
manager in the management team. According to the 2006 Global HR
Transformation Mercer study, only 32% of the 618 senior HR professionals in Asia
thought they were seen as strategic and had decision-making power. The
respondents represented 11 markets in the Asia region, covering more than 20
industries. India scored higher than countries such as China, Japan and Singapore.

Strategic Alignment with HR Score card

Objectives
Enhancing of HR visibility with HR measurement
Aligning HR and strategic plans is an important endeavor for every organization.
Studies strongly support the alignment between strategies, HR, and performance
and thus show the potential role HR can play in implementing strategy and
developing an s competitive advantage (Wright, Smart, McMahan, 1995).
In order to develop alignment between HR activities and strategy planning, HR
needs to expand beyond an administrative function and focus more on how it can
support the organization in strategic planning and implementation.
By increasing the competencies of HR personal, the department will increase its
creditability and be integrated into a strategic role. When HR measures itself
from a business perspective and by the value it brings an , top
management will not ignore HRs imminent importance in strategy
process of the organisation.
Instead, top management will welcome HR input because it will have a clear
understanding of how HR affects the bottom line from a business and/or strategic
Most organizations will agree that HR plays an important part in its success,
but continue to prevent HR from being included in the true strategic objectives of
an . To overcome the resistance to HR having a say in al strategy, HR needs to
measure and identify the benefit from being a part of the strategic process.

To be a Valuable contributor HR needs to measure is its impact on al strategy


and its efforts to build programs to better manage the development of an
organizations human assets. According to Kaplan and Norton (BSC) Specifically, HR
needs to measure the: competencies, leadership, culture, alignment, and learning
Measuring these issues provide a framework for describing the drivers of an
organizations strategy. When assessing its value added to the , HR must look to
these strategic drivers as their point of reference. In each measurement, HR will be
accountable for the organizations readiness for each component of the strategy.

Strategic Alignment with HR Score card

Proposition
HR Score Card
Often many people will build a list of measurements that are non-financial and think
that they have a balanced scorecard, but what differentiates the HR scorecard from
other business performance measurement frameworks in the marketplace is that
HR scorecard tells story of companys strategy.
A wrong notion perceived by many organizations is that they think that scorecard is
just about measurement.
HR Scorecard is designed to guide management of the HR function. The HR
Scorecard argues that HR measurement systems must be based on a clear
understanding of organizational strategy and the capabilities and behaviors of the
workforce required to implement that strategy. Thus, an HR Scorecard is a
mechanism for describing and measuring how people and people management
systems create value in organizations, as well as communicating key organizational
objectives to the workforce. The essential part of the HR scorecard is the strategy
map.
Based on a strategy map which is a visual depiction of what causes what in an
organization, beginning with people and ending with shareholder or other
stakeholder outcomes. The HR Scorecard is built around a series of examples and a
process that helps managers to do this work in their own firms designing an HR
architecture that relentlessly emphasizes and reinforces the implementation of the
firms strategy.

Kaplan and Norton the founders of Balanced Score Card proposed a strategy map
to represent the a companys value chain system.
Financial Perspective

Customer Perspective

Return on Captial Employed


Cost Leadership

Customer Satisfaction Customer Loyalty

On-time Delivery

Internal/ Business Process

Process Quality

Process Cycle Time


10

Learning and Growth

Employee Competencies

Strategic Alignment with HR Score card

Importance of KPIs
A key performance indicator (KPI) is a type of performance measurement that
evaluate the success of an organization or of a particular activity in which it
engages.
Often success is simply the repeated, periodic achievement of some levels of
operational goal (e.g. zero defects, 10/10 customer satisfaction, etc.), and
sometimes success is defined in terms of making progress toward strategic goals.
Hence choosing the right KPIs relies upon a good understanding of what is
important to the organization. In turn 'What is important' often depends on the
department measuring the performance.
For Eg. The KPIs useful to finance will really differ from the KPIs assigned
to operations
Hence there is a need to understand well what is important, various
techniques to assess the present state of the business, and its key activities, are
associated with the selection of performance indicators. These assessments often
lead to the identification of potential improvements, so performance indicators are
routinely associated with 'performance improvement' initiatives.

In above mention figure Key performance indicators are assigned to each


perspective in above strategy map and lately KPIs on HR level became significant
benchmark in the HR Scorecard. Also KPIs are valid and effective when applied in a
consistent and comprehensive manner.
Most importantly it is to be noted that financial performance must be respected as
the ultimate critical measure of the success for every business but financial KPIs are
closely related set of operational metrics i. e. on HR level, too.
Once KPIs have been identified, defined and formalized, Top management may feel
that KPI battle is won.

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Strategic Alignment with HR Score card


KPI targets must be based on concrete data and non-manipulative formulas. There
should be a direct link

From KPIs -> goals

From goals -> objectives

From objectives ->strategies.

All KPIs should impact a business decision in some time scale, depending on the
window of time available. That makes the decision process difficult from the
decisions made under no time constraint. Organizations should identify areas of
business processes that are the most critical to the financial success of the
organization.

Functionally KPIs can be divided into lagging and leading.

Leading indicator is a metric that mainly refers to future developments and


drivers/causes.
SMART KPI

E.g. Total number of qualified leads to be contacted for the month."

HR metrics are powerful force that can drive change in an organization but only if
the right metrics are developed and applied. The biggest of key concerns during
implementation of KPIs is the Top Managements ability to differentiate more
important strategy-driven metrics from the normal and usual ones. Selection of the
wrong metrics for KPIs can significantly destruct or even undermine the
performance management initiatives. The wrong metrics can sabotage an
organization processes and demoralize employees.

Characteristics of effective KPIs are:


Sparse: The fewer KPIs the better.
Drillable: Users can drill into detail.
Simple: Users understand the KPI.
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Strategic Alignment with HR Score card


Actionable: Users know how to affect outcomes.
Owned: KPIs have and owner.
Referenced: Users can view origins and context.
Correlated: KPIs drive desired outcomes.
Balanced: KPIs consist of both financial and non-financial metrics.
Aligned: KPIs dont undermine each other.
Validated: Workers cant circumvent the KPIs.

On a S-M-A-R-T note, for making efficient KPI selections:

Specific

Measurable

Attainable

Relevant

Time bound
(Courtesy: Kaplan and Norton , Balanced ScoreCard)

Methodogy
The aim of this article is study the HR Score Card Framework of my organization

Synergy Digital Healthcare Systems Pvt Ltd.

To Identify Strategic Goals and Objectives.

Definition of organizations strategic goals and intermediate functional goals


in each perspective in HR Scorecard in HRM level based on BSC perspectives.
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Strategic Alignment with HR Score card

Implementation of BSC on human resources management (HRM) level.

Describing mutual connection among partial goals in frame of the strategy


map.

Assigning used KPIs to each objective in the strategy map.

Developing KPI dashboard for 4 perspectives.

Key Steps in Creating HR Score Card

To briefly mention the process about establishing KPIs:

Determine your corporate goals.

Identify metrics to grade progress against those goals.

Capture actual data for those metrics.


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Strategic Alignment with HR Score card

Jam metrics into scorecards.

Jam scorecards down throats of employees

HR Value Chain of Activities


A series of activities involving Input, Activity, Outcome and leading onto Business
Impact is the strategy map for HR or really HCM, as the focus is on producing
human capital or al capability as an outcome of HRs activities. This shift in
strategic thinking forms the base for HR Strategy Map
Activity
Input / investment
Resourcing
Capability
EVP
Manpower
Management
time
Cost

Business Impact
Operations
Emp. of Choice
Customers
Financial

Outcome
Human Capital
organisational

After consultations with our Business leaders, The Grand Strategic goals of the
organization are defined as follows:

Profit Maximization

Product Differentiation

Cost Leadership

Customer Orientation

Employer of Choice

Issues face by HR department at Synergy, before the


implementation of HR Scorecard:
1. Lack of forward thinking and future planning.

Most of the existing HR processes were all about maintain the current process
structure and blue print. Importance was given only to MIS reporting. The existing
KPIs did not help in depicting the future.
2. Dissatisfied Internal Customers.

Internal customer lacked clear understanding of how HR System worked, as a result


of which grievance handling was inefficient.
15

Strategic Alignment with HR Score card


3. Lack of Flexibility in the Internal Processes

Due to habitual follow up of the pre-existing processes the HR Department lack


flexibility which resulted redundant and repetitive process, lack of centralized
information sharing which reflected on cost and budget.
4. Lack of Strategic focus among the HR Staff

Due to lack of de-centralization the pre-existing HR process did not lead the staff to
any strategy related decision making. As a result of which HR Staff found it difficult
focus whenever organizational strategic were on mention.

HR Strategy Map
Developing the strategy map on the HR level, managers have to define clear,
measurable and attainable targets which lead to the enhancement of efficiency of
the organization. In each perspective of the HR scorecard i.e. in financial, customer,
internal and learning and growth, the goals must be determined from HR attitude.

The inseparable part of HR strategy map should not be used on orientation of only
profit or quality but focus on orientation on the customer, because employees
are tightly in touch with the customers
For e.g. deal with complaints, provide Quality Customer service and
Information, how to deal with an angry customer.
Employees should always resolve problems quickly, efficiently and at the heart of
customer service process. Further, top management should realize in which phase
the organization is situated, it means in the beginning, in the expansion or in the
depression. This is very necessary to consider due to the cost perspective.

An HR Scorecard becomes a much more valuable tool when the measures within it
are based on the objectives and links within an HR Strategy Map. The problem with
all other forms of HR Scorecard is that they are not based on the Organizational
Strategy Map.
The reason that the strategy map, the key tool is that it is not setting measures that
is often difficult, it is agreeing what you are going to do.
Once the executives agreed to the word statements of what they wanted to
accomplish how they wanted to describe success the selection of the
16

Strategic Alignment with HR Score card


measurements became much simpler. And in an interesting twist, the selection of
measures became somewhat less consequential

During the creation and implementation strategy maps, it is necessary to take into
consideration the dynamics of each organization (e.g. organization structure, levels
of hierarchies, reporting structure and HR Management Process,).

The Top Management should take into account this fact from each of the 4
perspective.
I.e. to develop feasible and effective method for improving the performance of the
organization on HR level. KPIs, both financial and non-financial, are critical element
of effective communication of a companys progress towards its goals.
Therefore Strategy map comprises essential part of HR scorecard. Creating
the strategy map should also respect the external and internal HR factors
influencing the organization performance. Another important fact linked to the
strategy map is that executives should take into account the size of the
organization.

Management and Measurement of Human Capital with HR Score


Card
Choosing organization relevant KPIs requires your thinking to be aligned with the
strategies and objectives of your organization, once this is done, the choice of
measures of success is often obvious one.

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Strategic Alignment with HR Score card

Although it is inappropriate to specify how many KPIs an organization should have


the study suggests that there is a key for most organisations between four and ten
measures. No matter which KPIs are used, they should reflect the business,
corporate and should be subjected to periodical reformulation in order to adapt to
the changing corporate environment.
The priority for organizations

Is to use KPIs in a business context with the business agenda at all times.

To measure customer and service mark ups.

Make effective business decisions.

Propose and motivate employee to drive business forward.

The elements in the HR Scorecard are key leading indicators for workforce success.

A HR Score Card has 4 perspectives:

Learning and Growth

Internal Process

Customer

Financial

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Strategic Alignment with HR Score card


Every perspective has some intermediate set of goals that is derived on
HR Level and every intermediate HR goal has related Activities

HR Discipline strongly relates to Learning and Growth Perspective of the


Organization.it is one of the key perspectives in the Balanced Scorecard
that serves to map some big learning goals; something that is relevant to the
current business challenges.

As follows from its name and from the Balanced Scorecard paradigm, Learning
and Growths perspective answers the a vital question:
How must the company learn and improve in order to achieve its vision?
In other words, in this perspective we should explain what the company has to learn
in order to:

Satisfy customers needs,

Improve business processes, and

Achieve financial goals.

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Strategic Alignment with HR Score card

Below mention table shows the Intermediate HR Goals seen through Learning
and Growth perspective and its Related HR activities of my organisation.

Intermediate HR Goals for


Learning and Growth
Perspective

Related HR activities

Periodical employee dialogue


Partnering with key Academic Institutions
Organizational Training Academy.
Training Needs Analysis and Feed Back

Effective communication of Organizational


Vision, Mission and Culture
Follow a thorough Communication Plan
Communication Across multiple Channels
Make the content employee centric
Determination of Critical Positions
Competency Profiling
Periodical employee dialogue
Job rotation
Internal Recruitments and Promotions

Employee Engagement and


Motivation

Enabling Peer to Peer Recognition


On Spot Rewards System
Performance Incentive
Celebrating High Performance Teams

Leadership Development
Programs

Yearly employee dialogue


Management of Internal Talks on Efficient
Experiences
Continuous education of the Functional
Heads and Team Leads

Consistently fostering
employees Competencies

Internal Customer Support


and Orientation

Advocacy of Multiprofession

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Strategic Alignment with HR Score card

Table wise Depiction of HR Strategy map with 4 perspectives linking to


Strategic Organisational Goals

Learning &
Growth

Internal

Customer

Financial

Strategic goals

Succession
Reduction in
Consistently
planning
Employee
fostering Internal flexibilityUtilization of
turnover
employees
human potential rate
Competencies
Retention of the
employees

Cost Leadership
Profit Maximization
employer of Choice
Customer
Orientation
Product
Differentiation

Decentralization Retention of the


Cost Leadership
Labour
costs
of Hiring
employees
Customer
Internal
Effective
Process
Corporate
Orientation
Customer
utilization
Competency
Citizenship
Support and
of training
Survey
Increase in
Orientation
budget
HRMS
Employee
Commitment

Advocacy of Internal
Recruitment
MultiSystem
profession

Succession
planning
Utilization of
manpower
capital

Corporate
Employee
Idea
Citizenship
Engagement
management Employee
and Motivation
Employee driven
involvement
improvement Retention of the
systems
employees

Cost Leadership
Product
Labour costs
Differentiation
employer of Choice
Customer
Orientation
Cost Leadership
employer of Choice
Labour costs Customer
Orientation

21

Strategic Alignment with HR Score card

Financial

Leadership Internal training


Development
Vs. External
Programs
training
Competency
enhancement
systems
Institutional
Partnership

HR KPIs for Dash boards


Objectives
Lagging KPIs
F1- Labour costs

Absent Rate
Labour
Cost/Employee
% of Turnover

F2- Reduction in
Employee Turnover
F3- Effective
utilization of Training
Budge

Objectives

Customer

Effective Training Employee


Cost Leadership
Needs Analysis
turnover Profit Maximization
rate
Succession
employer of Choice
Effective
Planning
Customer
utilization
Utilization of
Orientation
of training
Manpower
budget
Retention
Labour Costs

C1- Employee
Retention

ROI of Training

Lagging KPI
% of employees

participated in
periodical
employee
dialogue
program

C2-Effective
% employees
Utilization of Human
having more
Capital
than 3 core
Competencies

Leading KPIs

Productivity

Hiring Costs

Investment on
competency
enhancement
Future Technologies

Leading KPI
No. of participation

career coaching
program.

Employee

Competency Index

C3- Success Planning No. of Successors % of Promotion


in Critical
positions
C3- Motivation
Employee
Future Motivation
motivation
Drivers
Survey

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Strategic Alignment with HR Score card

Learning & Growth

Internal

Objectives

Lagging KPI

Leading KPI

I1- Decentralization No. process


of Hiring Process
successfully
included in
HRMS

% of HRMS Scope

I2- Internal
Flexibility

Job Rotation

Posts filled internally

L3- HR Tools

Time for

Reduction in Time

I4- Idea
Management

Reporting
Documentation
Employee driven
improvement
systems

for Reporting
Documentation
Quality Efficiency of
Improved Process

Objectives

Lagging KPI

Leading KPI

L1- Consistent
Fostering of
Employee
Competencies
L2- Internal
Customer Support
and Orientation

% of training

L3- Advocacy of
Multi-Profession

Cost of Training in Competency Index

L4- Rewards
Management
L5- Leadership
Development
Programs

Average number of

training hrs.
/employee
% of employees

participated in
communication
relating to
Multiple
Competencies
Compensation
and Benefits
Cost

Number of

Grievances handled

Average

Compensation and
Benefits of
Organization

No of Internal

Number of internal

Leadership
Programs
No. External
Leadership
Programs and
Institutional
Partnerships

leaders
participated.
Leadership Index
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Strategic Alignment with HR Score card

Discussion
Advantages found at Synergy after HR Scorecard implementation:

1 Focusing on Future

The HR scorecard links HR decisions and systems to HR deliverables which are, in


turn, the KPIs for fulfilling the organisationals performance and eventually leading
to organisations goals and strategy implementation attainment.
2. Employee self -service and Manager self -service

HR scorecard resulted in the initiation of decentralization of many HR related


customer relations and initiation HR Shared Services as a result of which both
Managers and Employees who are the internal customers to the HR department
were trained to utilize HR service on their own which in-turn measured to grievance
handling effectively with less help from HR in a more pro-active manner.
3. Providing Focus for HR and OD staff

HR Scorecard focuses HR staff to pay importance to metrics that are indirectly


connected to organisational key measures. Displaying the HR measures by the
way of HR Scorecard and Dashboard helps the HR team in refocusing themselves in
such a way that it enables a quick understanding of where you are in the journey
toward your HR outcomes and in helping to achieve the organizations goals.
4.

Encouraging HR flexibility and change

HR scorecard helps in decentralization at same time centralizing the information


sharing. HR department readjusts itself to prioritize on key activities with strategic
impact on the orgainsation thus killing the redundant time consuming ones. This
bring process flexibility and a better channel of communication with in the
organization.
4. Clear understanding of HR Do-ables and HR Deliverables

The HR Scorecard emphasizes Key HR deliverables that directly influence the


organsations strategic implementation goals and objectives. Staff now have a clear
vision of organisations Strategic bottonline. The scorecard encourages HR
managers to understand the way their decisions and actions affect the successful
implementation of the organisations strategy. Thus HR scorecard helps HR
professionals to think systematically about People strategy.

HR Scorecard provides HR with a focused, credible, and clear strategic


rationale for their work in service to the organization.

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Strategic Alignment with HR Score card

Conclusion
If all HR Business Leaders effectively implement HR Score Card its brings out
required results and helps to keep tabs on HR Processes.
When HR is strategically involved and well linked to organizational performance, it
plays an important role in the success of an organization. By measuring the key HR
contributors to strategy, execution of the HR function is transformed into a source
of value creation for the organisation. HR Score card is one such strategic tool that
measures the key HR issues by provide the alignment between HR and business
process and which finally can be used to link to financial drivers of the organization.
Key performance indicators reflect organisational performance.
Our top
management and business leaders can have many KPIs to choose from but it is
imperative that all one key mission all KPIs must be connected to is People
Mission that is HR mission. My main goal in this study of implementation of My
organizations HR Score Card, was to find and set KPIs on HR Level in accordance
with my Organisations derived HR Strategies and goals.
I have emphasized through my study that the HR Strategy Map plays an important
part of HR Scorecard and serves as a foundation for specifying HR KPIs. Be it
Manufacturing, IT or Financial Sector the ground rules in general for the
implementation of HR Score Card is same.
The main goal of organisation and HR Departments should be to have a
Sustainable, Practical, Manageable and HR scorecard with observable and
measurable KPIs. Provided KPIs include all 4 perspectives with respect to HR
strategy with aim to reach Greater organisational approach. The key task is to
evolve and improve continuously with respect organisational development which is
support by an organisational culture that fosters communication and stronger team
work.

Bibliography
1. The HR Scorecard, Linking People Strategy and Performance( Becker, Huelid,
Ulrich).
2. Alignment (Kaplan and Norton).
3. Alignment , Human Resources and business Strategy (Linda Holbeche)
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Strategic Alignment with HR Score card


4. Business India , Forbes , Business Today( Periodical Magazines)

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