战略人力资源计分卡创建组织能力与价值

CreatingCredibilityandOrganizationalValue

LaunchingandManagingyourStrategicHRScorecard

SpecialThanksJeffHackel VeridianHomesLauraJaggi NorthCentralManagementVickiKampmeier TDSLeeWiersma UWCreditUnionDianeRivers BerbeeInformationServicesJodiChandler FirstBusinessFinancialClaudioDiaz WipfliLLPJaneLindebak HomeSavingsBankScottPollak PwC–SaratogaJimEllis PwC–Saratoga“ItiswithgreatgratitudeandhumilitythatIthanktheseleadersandorganizationsfortheirfaith,dedication&sacrifice.Withoutit,thisprojectwouldnothavesucceeded.” DanLoichinger,CMC2Today’sAgendaIntroductions/Background10MinutesReadinessAssessment10MinutesTools&Methods30MinutesHRValueProposition15MinutesLessonsLearned15MinutesQuestions&Answers10MinutesPresenterBiographies

3BackgroundEightMadison-areaorganizationsworkedonaStrategicHRMeasurementandDevelopmentprojectwithexecutivesintheirrespectiveorganizationsTodaywewillusetheexperiencesfromthatprojecttodiscusslaunchingandmanagingaStrategicHRscorecard,covering:Howtheprojectwasconceived,formedandexecutedKeyconceptsfrominitialGMASHRMpresentationMethodologiesandtoolsusedintheprojectParticipantreactionsandkeypointstosharewithpeersLessonslearned4Background–ProjectDevelopmentTheStrategicHRMeasurementandDevelopmentprojectbeganwithaGMA-SHRMpresentationonhumancapitalmeasurementConcurrently,alocalHumanCapitalAlliance(HCA)wasestablishedwiththecharterofbetterunderstandingstrategicHRmetricsAfterfurtherdiscussions,afewkeyHCAmembersagreedtobecomeSteeringCommitteememberstolaunchtheStrategicHRMeasurementandDevelopmentinitiativeAnorientationsessionwasheldtogaininterestandcommitmentofadditionalparticipantsThreeworkshopsweredesignedandexecutedoverathreemonthperiodinearly20065Background–Multi-ClientChallengesCompanyXResultsIndustryBenchmarks“Target”25PercentileMedian75thpercentileHRHeadcountRatio122:160:192:1111:1MedianHRExpenseperFTE$1,359$1,253$1,610$2,211MedianHRLaborCostperHRFTE$91,028$66,180$80,143$92,288MedianVariedmetricsthatareimportanttoeachorganizationDifferingstrategiesandpeopledriversMultipleperspectivesontargetsettingandadditionallayersofintendedaudiences6Background–LineofSight:StrategytoMetricDevelopanimbleworkforcewithreach

DevelopasuccessionplanforsustainableworkforceBecomeanEmployerofChoiceandimproveemployerreputationMetricsRevenueperFTEPoorQualityHireRateHumanCapitalROIVoluntarySeparationRateCompaRatioAverageTenurePeopleDriversBusinessStrategiesIncreaseWorkerProductivityDriveWorldClassHiringPracticesAlignWorkforceToGoalsDeveloptheLeadersoftheFutureInvestinEmployeeTrainingControlExpensesEngageEmployeesPayEmployeesAppropriatelyDevelopCultureBenchStrengthTrainingCostFactorLaborCostAsaPercentofRevenuePeopleStrategiesToMeetRequirementGrowtheBusinessImproveProfitabilityGreaterMarketAgilityandResponsiveness7Background–GMASHRMPresentation:

TheRoleofHRMeasurement

Provideacommonlanguageto:Developworkingrelationshipsw/businesspartnersSetexpectationsCommunicateresultsProvideanobjectivemeansto:Communicatefinancialimpactofinvestmentsorganization’shumancapitalQuantifyreturnoninvestmentsintheHumanResourcesfunctionProvidecomparisons:OvertimeBestpracticesinternallyGivesanideaofwhatisandwhatmaynotbepossibleforyourorganization8Background–GMASHRMPresentation:

TheBenefitsofEffectiveHRMeasurement

EnablesHRtoaddresswaystodeliverservicesthatarebetter,smarter,faster,cheaperProvidesdetailsexecutiveswanttoknowonwhereyoustandrelativetopeergroupAllowsHRtogainsupportforstrategicvalue-addedservices(successionplanning,performancemanagement,leadershipdevelopmentetc.)Helpstoalignprioritiesandresourcestodirectlysupportthecompany’sever-changingbusinessinitiatives&workforcerequirements9Background–GMASHRMPresentation:

OptimizingHR’sRole

OptimalHROrganizationPerformanceRequiresStrategicAlignment…ConfiguringHRtodeliverhighvalueservices,practicesandprogramsthatmeetbusinessandhumancapitalneedsHRServiceDeliveryStrategyPracticesServicesProgramsHumanCapitalStrategyBusinessObjectivesPrioritizesSupportsDrivesExecutesWhereHRfocusesamajorityofitseffort10TalentOptimizationWorkforceEngagementWorkforceAnalyticsHRServiceDeliveryEffectivenessHRCustomerSatisfactionProcessEfficiency&CostEffectivenessSurveyMetricsHRProgramEffectivenessProgramSatisfactionTotalProgramCostsBylinkingopinionstooutcomeswecanidentifytheleadingindicatorstofutureoutcomesBackground–GMASHRMPresentation:DecisionGuidanceModel11WorkforceWorkforceEngagementSurveyWorkforceAnalyticsMetricsTurnoverdriversinourorganizationareSupervisorOpportunityCompensationVoluntaryturnoverinourorganizationis22%Andcostsus$17MBackground–GMASHRMPresentation:DecisionGuidanceModel12WorkforceProcessEfficiency&CostEffectivenessWorkforceAnalyticsWorkersshowLowRevenue/EmployeeHighTurnoverRateTraininginvestmentperemployeeIs25percentileorlowerHRDeliveryMetricsBackground–GMASHRMPresentation:DecisionGuidanceModel13pwcReadinessAssessmentSaratogaMadisonHCA––MeasurementOverviewManagingandCommunicatingResultsGainingBuy-inBusinessCaseforMeasurementUtilizingScorecardsDefiningscopeofmeasurementDeterminingreturnonmeasurementinvestmentAssessingriskstosuccessfulmeasurementprogramsIdentifyingresourcesformeasurementConfirmingorganizationalgoalsandstrategiesConfirmingseniorleadership’sexpectationofHRSeekinginputonkeymetricsBeginningstakeholderchangemanagementprocessDeveloplineofsightfrombusinessstrategytoHRLinkMetricstoStrategyDefineeffectivevs.ineffectivemetricsEvaluatestandardvs.non-standardmetricsMovetodatacollectionAvoidingcommonpitfallsIncludinganalysisofresultsalongwithmetricsSettingTargetsManagingmultiplescorecardsConsidering““nextgeneration”ofmetrics15OpeningThought:AllEyesAreonHRTheaverageorganizationinvests28¢incompensationandbenefitstoget$1inrevenueRETURN?16ConductingStakeholderAssessmentsStakeholderGroupInformationRequirementsHowDoneTodayWhatarethe“educationalrequirements”HowCanbedoneBetterRiskstoChangingExecutivesLineGeneralManagementLineUsersHRUsersIT17pwcToolsandMethodologiesSaratogaMakingaBusinessCaseDefineobjective/initiative/issueListoutassumptionsEstimaterevenuegenerated/preserved/costssavedCoststoachieve(hardandsoft)WhowillexecuteTimeframeProbabilityofsuccessBusinessCaseMeasurementReturnDeliverablesResourcesRisks19MeasurementReturnWorkforceandHRMeasurementleadstothreetypesofimprovements:HREfficiencyHREffective-nessWorkforceImprovementMagnitudeofImprovementLineandExecutiveInterest20MeasurementDeliverablesDeliverableNamePurposeMediaFrequencySupportCorporatePeopleReportAnnualpresentationtoBoardonworkforceinvestmentHardandSoftcopyreportAnnuallyNumberssupporttext,analysisandfindingsHRScorecardReviewatHRLeadershipmeetingsHardcopySpreadsheetMonthlyLeadershipcommitmentandfollowthroughonresultsHiringStrategyReviewAssessHiringSourcesTablesandanalysisAdhoc–asneededSupportbusinessstrategiesWorkforceScorecardDelivernear-realtimedatatolinemanagementWeb-basedportal&applicationWeekly/Bi-weeklyTechnology,Changemanagement,etc.Samplesinclude21MeasurementRisksOurNumberParadoxAnyonethat’sdevelopedanumberviewsitasfluid,dynamic,““WorksinProgress”ButAnyonethatviewsanumberconsidersitthe“RockofGibraltar”Giveyourselfenoughtimetoreview/reflectontheresultsSocializetheresultsindraftformSeekfeedback.Workineverenlargingcircles,startingwith“friendlies”andmovingtoward““influential””Developthestory.Thestoryiswhatyoucommunicate.Numberssupportthestory.22MeasurementResourcesPeopleSystemsInformationConsultantsIndividualcontributor,(halftime?)DirectorandTeamExistingReportingTeamRunningqueriesonexistingsystemsandexporttoexcelDevelopacubeDataWarehouseandImplementationSaratogaorOthersubscriptionsSurveynormativedatabasesAssociations/ConsortiumsTraining/Conferences/EventsProjectManagementAnalysis&CommunicationsTraining/ChangeManagement23Strategies-DefinitionBusinessStrategiesPeopleStrategiesBusinessStrategiesPeopleStrategiesNeedtoLeverage(i.e.copy)existinglanguageanddocumentationTheoverallplanthatdrivesactionstoachievebusinessobjectivesforanorganizationAnorganization’’soverallplanforitshumancapital(workforce)thatidentifiesareastoexecutebusinessstrategiesandachievebusinessobjectivesSelectthetoptwotofourstrategiesmostcritical24Strategies––SampleBusinessStrategiesBusinessStrategiesPeopleStrategiesSampleBusinessStrategiesNeedtoLeverage(copy)existinglanguageanddocumentationImproveProfitability/ShareholderreturnGrowRevenueControlCostsImproveCustomerService/SatisfactionDevelopNewProductsExpandGeographicallyAcquireandMergeNewBusinessesImproveSafetyImproveLeadership/BusinessSustainability25Strategies––SamplePeopleStrategiesBusinessStrategiesPeopleStrategiesSamplePeopleStrategiesNeedtoLeverage(copy)existinglanguageanddocumentationAttracttheRightTalentRetaintheRightPeopleRewardAppropriatelyforBothCompanyandEmployeeDevelopTalentRunHRLikeaBusinessLeadershipDevelopmentDevelopaCultureEngagetheWorkforceManagePerformance26PeopleDrivers––TheBridgeBetweenStrategiesandHRInterventionsPeopleDriversPeopleDriversPeopleDriversareoutcomesofHRinterventions(plans,programs,activities,etc.)thatattempttoachievethestrategiesPeopleDriversarenottheinterventionthemselvesForexample““improvecommunicationsbetweenstaffingandtheline”mightbeaninterventiontoachievethepeopledriverof““DriveWorldClassHiring”practicesMeasuringpeopledriverswillletyouknowifyouareachievingyourstrategiesMeasuringthestrategiesistoohighlevelMeasureinterventionsthemselvesistoo““intheweeds”QuitelikelyyourorganizationmayhavethreeorfourinterventionsunderwaytosupporteachpeopledriverWhiledriversmayapplytomultiplestrategies,pleasefocusononlythemostapplicable/criticaldriversinyourorganizationIncreaseWorkerProductivityDriveWorldClassHiringPracticesAlignWorkforceToGoalsDeveloptheLeadersoftheFutureInvestinEmployeeTrainingControlExpensesEngageEmployeesPayEmployeesAppropriatelyDevelopCulture27MeasurePeopleDrivers,notInterventionsDevelopanimbleworkforcewithreachMetricsPeopleDriversRevenueperFTEIncreaseWorkerProductivityPoorQualityHireRateSuccessfulHiringPracticesHumanCapitalROIAlignWorkforceToGoalsPeopleStrategiesToMeetRequirementInterventionDevelopaworkforceplanEvaluateLowPerformerStrategyImplementaCoachingProgramProcessMaptoImproveLine/HRcommunicationsImplementApplicantTrackingSystemOptimizeSourceofHireEvaluateCompensationStrategyImplementaPerformanceManagementSystem28pwcParticipantFeedbackSaratogaParticipantQuotes“TheworkshopseriespresentedbyPwC&SaratogaonstrategicHRmeasurementanddevelopmenthasbeenphenomenal.Thepresentershavefacilitatedasystematicprocessofassessingthebusinessclimateandstrategicinitiativesofourcompanyandthendeliveredthetoolstocreatemeasures.Thetoolhasacascadingeffectstartingwiththeoverallbusinessstrategies,movingtothepeoplestrategies,thenlinkingtopeopledrivers,andfinallyendingwiththeapplicablemeasures.Ihighlyrecommendthisworkshopseriestoanyorganizationlookingtoenhancetheirmeasurementpractices.”JeffHackel,VicePresident,HumanResources30pwcLessonsLearnedSaratogaKeyFindings–SuccessfulInitiativesAligntheHReffortwiththeorganizationsstrategicdirection&sponsorship.Temporarilysetasideyourexistingdatastreamsandmeasures.Assesstheneedsandinputofeachstakeholder,e.g.–risks,infoneeds,etc.EstablishastrongalliancewithyourfinancialexecutiveDeterminehowtobestcommunicate,display&discusswithothersPartnerwithotherHRexecutivesoutsideyourcompany–don’tdoitalone.Plantheorganizationeffortneededtosupport&enabletheplannedchanges:KeycommunicationvehiclestovariousstakeholdersManagingchange&droppingnon-valueaddedworkactivitiesUseyourself,oranothercapablestaffpersontomanagetheprojectAllowtime&efforttoanalyze,discuss&learnfromdatacominginContinueimprovementeffortsonasystemicandteambasis–ROIwillcome.32KeyFindings-MetricSelectionDiscussionsDistinguishamongcontextmetrics,inputmetricsandoutcomemetricsFocusonoutcomemetricsInputorcontextmetricscanbeusedforotherpurposesDown-selectmetricsDetermineprioritytotheorganization&management’sdefinitionsofmetricAssessabilitytocollectthedata&whoelsecanproviderelevantdataEliminateredundantmetricsorchoosebestfitbetweensimilaronesUtilizesurveymeasuressparinglyDonoteliminatecertainmetricsbecausethedatadoesn’’tyetexistConsiderhighprioritybuttoughtocollectmetricsforfutureversionsDevelopbusinesscaseforautomation/collectioneffortsDevelopbusinessprocessesforgatheringdatapointsofinterest*Rememberthatonemetriccanaddressmultipledriverswithinyourscorecard33CommunicatingResults-MessagingDeterminetherightmessagetobeconveyedwiththemeasurementinformationthataddresses:BackgroundofinitiativeThe“story””aroundtheresultsResults–includingbusinessimpactLinktobusinessstrategiesWhatshouldbedonewiththeinformationHowtointerpretcomparativeinformation34CommunicatingResults-TimingMeasurementshouldbedeliveredonafrequencythatprovidesnecessaryinformationtotheaudienceasrequired.Ideally,thisinformationwillcoincidewithbroadermeasurementeffortssuchas:BoardMeetingsQuarter-endReportingExecutiveTeam/LeadershipMeetingsAnnualBudgetingStrategicPlanningCustomerSatisfactionStudiesOperationalReviews35CommunicatingResults–AvoidingPitfallsDataDataisWrongMultipleVersionsoftheTruthNoLinktoImpactDevelopastrategyforassessingdataquality,accuracyWorkwith“drafts”FindoutwhatdataotherpeopleuseCalculatetheimpactContentDashboardMisalignedtoStrategyNoTimetoAnalyzeResultsTooMuchInformationTooFrequenttoDigest/ReviewAssessalignmentdevelopedintheseworkshopswithstakeholdersGethelpw/datacollection(fromfinance?)ContinuestakeholderassessmentsafterdeliveryNo“Story”LackofCausalAnalysisLackofActionPlansResultsareInconsistentw/ActionsDatashouldbeusedas“support”forwhatyouknownotan“aha”--butwatchoutforthe“aha”Bringdraftactionplanstoleadershipmeetingstogettheirbuy-inAskotherswhattheyseeinthedataChangeManagementLackofManagementUnderstandingofImportanceNoBuyinonDashboardUnderlyingBusinessProcessesDon’tSupportMetricsSeekbuy-inonthedashboardholdaninternalsessionliketheoneswehavehereFocusonthebusinessimpactsStayonMessage