1. Jon Ingham Developing an HR Scorecard

4. Customer Internal Business Process Vision and Strategy Financial Learning and Growth This started as a Measurement tool Measures how well the organisation is meeting its financial objectives Measures whether the organisation is adding value to its customers/ clients Measures whether the organisation has in place the staff capability to support the needs of the business Measures how well the organisation is managing risk and protecting its assets Measures the efficiency and effectiveness of the service capability provided by the organisation

6. Showing the Links between Objectives Interpretation 1 Interpretation 2 Interpretation 3 Increase new product introductions by 10 per year Increase market share by 25% Increase profits by 30% Increase profits by 30% Increase market share by 25% Increase market share by 25% Increase profits by 30% Increase new product introductions by 10 per year Increase new product introductions by 10 per year Perhaps increasing market share will result in increased profits, thus providing funds for increasing new product development ... … or maybe enhancing new product development will directly increase both profits and market share ... … or does increasing profits allow us to buy market share by stepping up advertising and new product development? Action: Increase advertising Action: Increase R&D spend Action: Reduce costs Source: Kaplan and Norton, Harvard Business Review, May-June 1998 . Unless we know how objectives relate to each other, multiple interpretations are likely

7. And published as a ‘Strategy Map’ Internal processes People Financial Customer Maximise Operations Efficiency/Effectiveness Enhance Employee Skills Create Partnerships and Alignment within TCCS Continuously Optimise Marketing Spending Maximise Share Owner Value Ensure Highest Quality in Products Use Existing Information to Make Better Decisions Maximise Procurement Efficiency/Effectiveness Strengthen and Foster a Culture of Accountability Increase Volume Manage Cost, Profit & Capital Effectively Achieve Pervasive Penetration Drive Brand Preference Be Perceived by Consumers as Having the Best Value Enhance Portfolio of Goods & Services ahead of Competitors Partner Effectively with Customer to Fulfil Demand Maximise Distribution Efficiency/Effectiveness Expand Share of Worldwide Beverage Sales

10. Customer Internal Business Process Financial Learning and Growth Some Organisations put all their HR Objectives / Measures in Learning & Growth

11. And just doing this can be useful as it integrates HR into the Business Source: Tesco

14. Shareholder Value For Example: Kaplan and Norton’s Human Capital Readiness Report HR Processes HR Learning & Growth Financial Customer HR Effectiveness Productivity Strategic Skills Leadership Culture Alignment Learning Competency Development Leadership Development Culture Goals & Incentives Teams & Integration HR Skills & Leadership HR Systems HR Climate

18. HR Delivery HR System Alignment HR Efficiency HPWS To get round the problem, Becker and Huselid suggest another HR Scorecard

19. Leadership Workforce Behaviour Workforce Competence Workforce Success Workforce Mindset & Culture And a different Workforce Scorecard

22. There is plenty of evidence in academic research about what HR performs Source: David Guest, The Future of Work, City of London University

23. CIPD – Black Box

25. HCM Activities The HCM Value Chain 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 organisational capability as an outcome of HR’s activities. This is a useful shift in thinking.

26. HCM Activities Outcomes vs Activities “ I wanted to define the roles of HR as outcomes more than activities. I saw a lot of work in HR focused on activities (number of hours of training a leader receives; whether a firm is using 360 degree feedback; if it implements performance based pay or competence based hiring). I wanted to shift the focus to outcomes of the activities.” Source: David Ulrich, talking about his HR Champions book

29. The HR / HCM Strategy Map and Business Strategy are the same thing! Learning & Growth Business process Customer Financial Input Activity Outcome Business impact HCM Value Chain Business Value Chain Business strategy map HCM value chain © Strategic Dynamics, 2011

30. It is also what we already focus on Input Reaction Learning Activity Performance Outcome Results Impact Kirkpatrick Strategy Map

31. Output Activity Impact Input The HR / HCM Scorecard

32. For More Information [email_address] strategic-hcm.blogspot.com blog.social-advantage.com linkedin.com/in/joningham twitter.com/joningham strategic-hcm