The HR Scorecard: Linking People, Strategy, and Performance Review

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The HR Scorecard: Linking People, Strategy, and Performance ReviewAs a seasoned HR professional, I have spent the last decade looking for the "Holy Grail" of H.R. Metrics. My quest is not over after reading The HR Scorecard, but the book presented many helpful concepts and tools that we can use to measure the effectiveness of HR as a function, to measure R.O.I. on talent and talent initiatives, to measure the impact of HR on organizational performance, and as a basis for business case development of our deliverables.
Three well respected thought leaders in the HR field have conducted extensive research of more than 2500 companies to uncover a model for implementing HR strategy and measuring results. If fully employed HR will deliver results linked to higher functional and organizational performance.
To transform the structure of HR into a strategic function, HR leaders must:
1.Clearly define the business strategy.
2.Build a business case for HR as a strategic asset.
3.Create a strategy map (with leading and lagging indicators, and tangibles and intangibles.)
4.Identify HR Deliverables within the strategy map.
5.Align the HR architecture with HR deliverables.
6.Design the strategic measurement System.
7.Implement management by measurement.
The concepts in this book are useful but may not be practical for all HR leaders. This book is for organizations that have the resources to implement an in-depth system of measuring their HR performance. It is not a way to create a simple snapshot to be included in business reviews. While the authors suggest using no more than 25 measures so as not to create a burdensome systems, many of the examples in the book are quite complex and can by used only by the largest of organizations. It is also difficult to pick just a few efficiency measures and performance drivers from the comprehesive list prepared by the authors.
Real life examples of scorecards are shown from organizations such as Verizon/GTE, General Mills, and General Electric. While these examples can help any size HR department think through how to measure the performance of their function, I would like to see a smaller organization profiled with more simple measures.
This book should be in the library of all serious HR practitioners. It is well written, well researched, and well presented. If the tools and concepts are implemented, the HR function can rise to a new level. For those in smaller organizations, a few HR efficiency measures can be gleaned to build a simpler scorecard based on the key HR deliverables for the enterprise.The HR Scorecard: Linking People, Strategy, and Performance Overview

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