Measuring the Effectiveness of Human Resources Through the HR Scorecards
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This course will provide participants with a sound foundation for implementing the Balanced Scorecard approach to convert organizational strategy into performance achievements.
It will examine the intricate relationship between the organization’s vision and strategy and the linking elements of customers, financial arrangements, internal business processes and the organization’s ability to innovate, learn and develop in its mission to exceed customers’ expectations.
Upon successful completion of this course, participants will:
- Know the concepts of Balanced Scorecard
- Understand the phases of integrated performance measurement
- Appreciate the uses and benefits of a range of measurement tools
- Understand the implementation issues for an integrated performance measurement system
- Understand how individual, departmental and organizational goals link and align
- Review the similarities between BSC and performance management
- Review best practices and how to overcome obstacles to using a BSC
- Focus on HR strategic Directions and how HR Balanced scorecard & performance measures can contribute to achieving corporate goals & strategy success.
- Be able to practice the approaches to integrated performance measurement
- Understand the three levels of performance - organization, process and activity
- Constantly assess their own organization's integrated performance measurement strengths and weaknesses ( SWOT Analysis )
Introduction to the Balanced Scorecard
- Review the history of the Balanced Scorecard
- The Balanced Scorecard and the strategy focused organizations
- Components of the Balanced Scorecard
- HR Balanced Scorecard
- Performance management and the elements of performance management systems
- Mission statements and communicating organization values.
- Motivation and organization culture, including ethical and value-related issues.
- Change management, and the reasons for resistance to change.
- Competencies - both technical/professional and generic.
- Competency development and the learning organization.
- Reward management - pay, pay variation and job evaluation.
- Setting performance Measures
- HR Measures and Key performance Indicators
- Using the Balanced Scorecard for setting individual performance goals – Activity
- How to Implement an Integrated Performance Measurement System
- How to approach and Implement the HR scorecard
Introduction and Objectives
The Balanced Scorecard – What is it? And how can it help the Organization?
- The Concept of Balanced Scorecard
- Basic Design of a Balanced Scorecard Performance System
- Why a Balanced Scorecard?
- The Balanced Scorecard - Strategic Control
- Relationship of Balanced Scorecard to other Concepts
- Building a Balanced Scorecard
- Thinking in terms of process
- The Process of building a Balanced Scorecard
- Cases from different industries
- Important Issues in the Building Process
- Scorecards as management control
- Measures and their causal relations
- The enabling role of Information Technology
- Implementing a Balanced Scorecard Approach
- Systems thinking and application
- Systems and IT Solutions for Scorecards
- Towards a Learning Organization
- Using Scorecards to Inform Outside Parties
- Implementation of the approach – Change Management
- The Implementation Team
- Overcoming Resistance
- Communication and Change
- Factors influencing Successful Implementation
- Information Technology and the effects on Managers
- Information as a common resource
- The changing Management role
- Benefits of information technology in the workplace
- Performance Improvement Framework
- Balanced Scorecard and Quality Management
- Cost of quality
- Efficiency and/or Effectiveness
- Reconciling quality with cost containment
- Similarity and differences between Balanced Scorecard, BPR and TQM
- The contribution of each to the organisation
How to Implement an Integrated Performance Measurement System
Step 1 Establish Organization Level Goals
- Strategy is the linkage between activities, processes and common purpose in pursuit of a goal
- Strategy formulation (situation analysis, analysis of stakeholders' needs and expectations, analysis of organization strengths and weaknesses, analysis of organization corporate culture)
- Identifying the critical business issues and opportunities
- How to direct strategy and profit improvement at Human Resources
Step 2 Develop Activity and Process Measures
- Defining and identifying processes
- Identifying activities and assigning them to processes
- Using process and activity to link work with strategy
- Assigning measures to the critical process and activity points
- How activity analysis links to process improvement and management
- The big picture of what measurements in the process driven organizations should look like
- Understand the four attributes of measurement; financial, time, quality, quantity
- How to recognize the dangers of dysfunctional measures and management system
Step 3 Measures Development and Benchmarking
- The concept of the measures meter
- Working from a process through to activities (and tasks)
- Calculating measures at key points that support strategy
- The integrated role of effective benchmarking
- Benchmarking as a key to setting goals for critical measures
- The role of surveys for measures / results validation
- Defining the dimensions of "the critical few" measures
Step 5 Construct Dashboards, Control Panels and the Measures Wiring Diagram
- Learn how to design a Performance Measurement system
- Creating a design that clearly links the three levels of performance
- Typical organizational dashboards and control panels
- Using the dashboard concept to focus, align and report measures
- The Performance Measurement framework as a base
Step 6 Collect Data and Build the Measures System
- How the Performance Measurement framework works with all software options
- Understanding the criteria to choose software
- Determining where all the information comes from
- The role of software as an enabling device
- The Performance Measurement framework determines software options
- Useful software on the market today
Step 7 Managing with Measures
- Integration of measures with organizational management
- Using the framework as a base for continuous improvement
- Linking and aligning other initiatives for results
- Creating clear responsibility for process, activity and results
- Effective resource management through linking activity and process budgeting
- An effective system - critical success factors.
How to approach the HR scorecard
A. Understanding the reason for implementing the HR Scorecard
Measuring HR effectiveness - HR scorecard design
The HR scorecard – metrics hierarchy consists of:
- Values based HR metrics linked to corporate based metrics that reflect value-based measures
- HR outcome measures that focus on business outcomes
- Operational HR metrics that focus on efficiencies
- HR analytics that focus on workforce data
B. Understanding the Business context of HR
- What are the value drivers of the business (units)?
- What is HR’s value proposition to the business?
- Where are HR’s biggest value points?
- Where is HR’s contribution recognized – by senior management, the line, employees, HR itself and/or investors?
- What does the HR function currently measure?
- Are the metrics activity driven or value driven?
- What human capital metrics are included in the general business reporting?
.Defining The HR Value
- The value of the HR function to the business as a whole
- The value of HR processes as practiced throughout the organization,
- The quantification of people value to the organization, and their input to strategic
C. Developing the HR Value Map and Constructing HR metric trees.
D. Selecting the relevant measures and metrics
E. Maintaining the HR scorecard Framework
A variety of methodologies will be used during the course that includes:
- (30%) Based on Case Studies
- (30%) Techniques
- (30%) Role Play
- (10%) Concepts
- Pre-test and Post-test
- Variety of Learning Methods
- Case Studies and Self Questionaires
- Group Work
Who should attend
Executives, directors, middle managers, and team leaders involved in or affected by the need to achieve organizational success, as well as those who decide and implement organizational change.
It is suitable for those with organizational re-engineering experience as well as for new practitioners.
The course will be of benefit to all those who have responsibility for the ‘output’ of others including, superintendents, senior managers, HR Managers, Current and Future Managers as well as Current and Future Supervisors Participants will be able to:
- Review your organization’s culture and performance, and assess its readiness for change.
- Review the effectiveness of performance management systems and procedures, both at organization and team level, including:
- Goal and objective setting
- Performance appraisal and reward
- Motivation and team culture
- Developing new competencies and suggest innovations where appropriate.
- Ensure that performance management systems are sensitive to the particular needs and circumstances of the organization
- Produce constructive proposals for change and improvement
- Raise awareness of the importance of clear goals and objectives
- Encourage good coaching, feedback project management and team development skills
- Devise appropriate incentives to reward and motivate staff.