Thursday, April 2, 2009
Outline of the presentation:
- Showing My Results – How BSC has transformed our Bottom Line.
- Linking Strategic Planning to Financial Forecasting and Budgeting.
- Successfully Cascading my BSC throughout My Organization – Exploring the Fundamental Steps Involved.
My presentation introduces the framework of the HR Balanced scorecard, which is modeled after the Balanced Scorecard developed by Dr. Robert S. Kaplan and Dr. David P. Norton. The first few minutes describe the problems with traditional approaches to viewing HR’s role in business performance. It explains why HR should be looked at as a strategic asset. The HR architecture is then described in brief. It highlights the links between the HR scorecard and the Balanced Scorecard. The nature of HR deliverables including performance drivers and enablers is explained. The 5 Star Performance-step models explain the details of implementing an HR Scorecard. The basic benefits of the HR Scorecard are highlighted. Finally, to highlight the implementation details, a case study of the Al-Sayer Group HR scorecard which I built and implemented is presented.
The HR Balanced Scorecard includes four perspectives:
— Strategic Perspective
- Measures success in achieving the five strategic thrusts. Since the basis for the HR Balanced Scorecard is achieving business goals, the aligned HR Strategic objectives are the drivers for the entire model.
— Internal Business Processes / Operations Perspective
- Measures HR’s success in operational excellence. The focus was primarily in three areas: staffing, technology, and HR processes and transactions.
— Customer Knowledge Perspective
- Includes measures of how HR is viewed by the key customer segments. Survey results were used to track customer perceptions of service as well as assess overall employee engagement, competitive capability, and links to productivity.
— Financial Performance Perspective
- Addresses how HR adds measurable financial value to the organization, including measures of ROI in training, technology, staffing, risk management, and cost of service delivery.
A deliberate approach to the project was clearly defined and communicated to each member of the team and to the HRD. The project was established and organized into four major components: Planning / Alignment, Assessment, Development, and Implementation. • Planning and Alignment set the foundation for the project. Project plan, objectives, and milestones were established. Team education and training was imparted on business performance management, the balanced scorecard methodology, and its application to HR measurement. • Assessment focused on understanding what was used at that time as measures to evaluate HR performance and to assess the relative value to the business. • Development began the actual process of designing the HR measurement model. Defining the measurement criteria and scorecard measures, establishing targets, defining the process for collecting and tracking results, and creating the communications strategy were the key deliverables in this phase. • Implementation operationalised the HR Scorecard from the drawing board to a management tool for HR to assess performance and value added to the business. Data collection, results reporting, evaluation, and analysis all came together as the scorecard was implemented. Communications and training were delivered to the HRD as the HR Scorecard rolls out. Once the team across the group was selected, and the mission and objectives were established and communicated, the work to link Business Strategy to HR Strategy began.
5 STAR PERFORMANCE MEASURE SUMMARIES
I. Customer Measures – Internal Customer Satisfaction
II. Employee Measures-Skills, Motivation, Recruitment, Staff Turnover, Leadership, learning and growth Analysis, Competency Based Assessment.
III. Community Measures – Compliance with Health & Safety, Kuwaitization.
IV. Finance Measures - Variance Analysis, Actual Vs Budget, Net Expenses…
V. Internal Process Measures – Internal Quality, Productivity, Communication /Feedback, Response Times etc.,
Historically, support units have been regarded as “discretionary expense centers”. But it’s a mistake to view them this way. When aligned to the strategy of the enterprise / group companies and the business units they support – through Strategy Maps and Balanced Scorecards – support units can become value creating organizations. But alignment isn’t a one-time event; sustaining it calls for establishing processes, relationships, and tools with which the support unit can carry out its partnership with corporate and the business units.
As being specialist I played as a BSC leader since we did not have General Manager for a year! I have developed KPI involving work identification, Metrics, Measure type with weightage with drill down activities, in order to facilitate the BSC “Best Practices” to ensure success.
I had Executive Sponsorship & Commitment. Presented my BSC 5 years plan to board and discussed in board room subsequently got approval. I felt it’s a journey!
Developed Measures to support each strategy for each perspective at each level.
Developed solid Baseline Data. Presented detailed Strategic Maps using VISIO.
Developed measures for past, present & future (lagging, Near- Time & Leading).
Developed Roles, Accountabilities and held responsible for their performance.