Sample Question - HR Scorecard

What are the challenges of following the 7-step model presented in The HR Scorecard?

Below, I'll take each step and provide comments about the challenges I've observed, both as an HR practitioner and as an independent consultant.

Step 1: Clearly Define the Business Strategy. The biggest challenge in following this step is taking the time out of a hectic day to learn more about the organization's strategic objectives and goals. The HR Department should be in a position to align its objectives and goals with those of the organization. In order to be in this position, the HR staff must get to know the Line Managers and their challenges, barriers and constraints. To achieve this first step, I recommend that the top HR person meet with Line Managers to understand their needs, then develop and conduct an audit of the HR function to determine if it has the competencies and skills necessary to help the company achieve its Mission, Vision, and Strategic Objectives.

Step 2: Build a Business Case for HR as a Strategic Asset.

Unfortunately, many Line Managers perceive Human Resources as an administrative function, or the "keeper of the rules". HR staff must make a proative effort to educate Line Managers and Executives about the potential HR has as a strategic business partner. I recommend what I call a return on investment approach to HR activities. This entails looking at activities undertaken by HR as necessary to solve a business problem or need, helping to determine the cost of the business problem, recommending and implementing solutions, determining the cost of the solution(s), and calculating the savings to the company (the difference between the cost of the problem after HR interventions and the cost of the solution). A R.O.I. worksheet is attached that walks you through this process.

Step 3. Create a Strategy Map. Like any other department, HR needs to provide a value proposition for its activities. The challenge here is to change the perception that HR is overhead, strictly an expense generating department. HR staff should take the time to map out each of their processes, such as benefits administration, to ensure that the processes are streamlined, provide a quality product or service, and are targeted to meet specific organizational objectives.

Step 4. Identify HR Deliverables within the Strategy Map. The challenge in this step is to distinguish between qualitative and quantitative deliverables. Tangible deliverables might be saving $485,000 a year in turnover expenses following an HR intervention such as supervisory coaching. The types of deliverables that are more qualitative, and therefore difficult to put a solid number on, are those like time savings for managers who must handle conflict among direct reports. If their direct reports receive training and assistance to handle conflict themselves, this results in less time for that manager, who is then free to engage in other activities that might be more productive for the company. The real challenge is making this connection between the intervention and the results.

Step 5. Align the HR Architecture with HR Deliverables. The education and training that too many HR practitioners receive focuses on HR's role as "the police", people who hire and fire, or administrators whose job is simply to keep personnel records. The challenge, then, in following this step is to recruit and hire HR staff that takes a strategic, wholistic approach towards the HR functions. The HR competencies are expanding all the time, so that now problem solving, decision making, strategic planning, business acumen, etc. are critical HR competencies.

Step 6. Design the Strategic Measurement System. The challenge here is to identify appropriate measures for your unique organizational needs.

Many HR people conduct benchmark studies; however, the companies against which they benchmark are in entirely different industries or in a different growth stage. The Society of Human Resource Management, SHRM, has white papers on establishing appropriate metrics that you may want to read. Their web site is www.shrm.org and the white papers and articles are under the heading, HR Resources, on their site map.

Step 7. Implement Management by Measurement. The challenge here is for the leadership of the HR function to be diligent in first selecting, and then consistently measuring, the appropriate success criteria. I recommend that HR sets process checkpoints at three or four times during the year to honestly discuss how they're doing in relationship to their strategic objectives. This takes time and effort to accomplish on a regular basis. For articles on strategic planning, I invite you to visit my other web site, www.gravett.com, and click on articles.

(Disclaimer: The recommendations and opinions provided by e-HResources.com are based on general human resource management fundamentals, practices and principles, and are not legal opinions or guaranteed outcomes. We strongly recommend, as part of a team approach to management, that clients consult with legal counsel of their choice to address legal concerns related to human resource issues).

Disclaimer: The recommendations and opinions provided by e-HResources.com, LLC are based on general human resource management fundamentals, practices and principles, and are not legal opinions or guaranteed outcomes. We strongly recommend, as part of a team approach to management, that clients consult with legal counsel of their choice to address legal concerns related to human resource issues