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O
ur Premise: Traditional corporate scorecards often The challenge in metrics is what to measure versus how to
fail to capture the HR metrics that impact a firms measure.
strategic success. During this call we addressed HR Strategic workforce planning is a critical part of any discus-
scorecards by focusing on HR analytics: What to measure and sion of HR metrics as this helps organizations to identify
how to measure as applied to the impact of the HR function which positions have primary impact. HR needs to identify
on the firms strategic success. Both firm level outcomes and where, how, and who creates wealth for the firm. In most
HR line manager practices, which impact these outcomes, organizations, no more than 15% of positions are strategic.
were discussed. Specific metric examples were provided for Different lines of business in the same company may have
the workforce, strategic talent, and line managers as well as very different goals and cultures. Some units win by cost
the HR function. and price, while others win through innovation and creativ-
ity. Different strategies require different metrics.
QUESTIONS A D D RESSED Line managers need to be held accountable for the HR work
they do. There needs to be much greater accountability for
What metrics, if you had them, could be used to intervene in
line leaders, especially around talent and culture. Leaders
your firm and have an impact on the success of its business
are essentially unmanaged resources and HR needs to do
strategy?
a better job discerning which leaders are doing a good job
How, where, and who creates customer and economic value
when it comes to the HR work line leaders do (e.g., perfor-
for your firm?
mance and rewards, selection, development, etc.).
How are you now measuring workforce mindset, talent suc-
cess, the line managers success in managing their work-
DATA F O R D E C I S I O N M A K I N G : ST R AT E G I C
force, and the success of the HR function?
WO R K F O R C E M E T R I C S
What are you measuring about HR and the workforce now
and what decisions are you making that impact the success The central issue with respect to metrics is what to mea-
of your organization? sure versus how to measure it. Most organizations have
too much data but too little usable decision-making data that
INSIGHTS FRO M TH E D I SC U SSI O N will have a strategic impact on the organization. At the end of
the day, HR professionals must always remember that metrics
All metrics start with the business strategy.
are simply answers to questions. The key is asking the right
Metrics are answers to questions so you need to be asking
questions first, and then determining the metrics that will
the right questions to have good data. Its important to
drive a decision.
know what are the deliverables first, and then what the right
measures are.
The fundamental question the strategic workforce metrics V = Influences the customers perception of value
model seeks to address is: where, how, and who creates P = Enables us to charge our desired price
wealth for the firm? C = Enables us to produce at our desired cost
The Quest for a Global Scorecard what is common across all business lines, some global metrics
can be used in a global scorecard. But the real question then
In large multinational companies such as AXA with over
becomes, once you have that data, what do you do with it? In
160,000 employees around the world it is a challenging task
the end, you want data that you can use to make a strategic
to try to converge data together into a single global score-
difference for the enterprise.
card that aligns with all its various business units. Different
countries within the same company often use different HRIS At Mars, they find that the most important place to have in-
systems and data definitions vary country to country making a sight and data is locally (in a global/local company). Mars has
unified scorecard on a global scale extremely complex. Creat- very diverse product lines (from chocolate to pet care prod-
ing a global scorecard requires an understanding of the strate- ucts) so they only have a very few key global metrics that they
gic capabilities that need to be owned by corporate because roll up into a global people scorecard; others are measured
different lines of business in the same organization may have and managed in local units. Key metrics at Mars include three
different capabilities, goals, and cultures. For example, some levels: 1) enterprise level (e.g., the triple bottom line Perfor-
business units try to win on cost and price while others try to mance, People, and Planet), 2) strategy (e.g., key metrics would
win through innovation and creativity both require different include engagement metrics, talent metrics, and succession
business strategies and different strategic capabilities. The information, etc.), and 3) the HR people scorecard. For Mars,
key metrics for one business may be useless to another. they wrestle with finding the golden thread across those
three levels of metrics.
The quest to develop a global scorecard requires a deep
understanding of the strategy of multiple business lines Holding Line Leaders Accountable for HR Work
because strategy is all about differentiation. In this scenario Its important to hold line leaders accountable because they
HR needs to know how to leverage the differences and ask play a critical role in HR work in areas such as selection,
what is common and what is unique. If you can figure out development, rewards, performance management, etc. How
ment, performance and rewards, etc. and hold them account- against Global HRs key objectives and targets for the year
able. Again, it comes down to asking the right questions. Are (including both People Strategy and HR Strategy priorities for
the leaders losing top talent? How do they measure talent? the year).
How well are they managing critical talent? A People Strategy Dashboard that reviews progress against
metrics, are tools. Whether or not engagement metrics are against the measures for success within AstraZenecas HR
looked at and used in meaningful ways. For example, in some A HR Service Delivery Dashboard that reviews progress
organizations those with the highest levels of engagement against the key aspects of HR service delivery, particularly
are the lowest performers. So the question to ask is: who in those aspects delivered by their outsourced partner.
the organization do you want to be engaged? Despite the
AstraZeneca also runs three key annual projects that support
popularity of employee engagement metrics, there is very
these and deliver specific business benefits, namely:
little evidence that it links to performance. But again, an
engagement metric is just another tool; its how you use it in An annual employee survey with particular focus on em-
the strategic context of the business and the questions that ployee engagement (also leadership, development, work-life
you ask that really matter. balance, etc.).
At BASF, they have found success using metrics to monitor An annual HR voice of the customer survey focusing on HR
their leadership pipeline. They know what their leadership effectiveness.
pipeline is and can use data to assess if they have enough of An annual benchmarking study focusing on both human
the right talent to plan effectively for the business and help capital measures and HR effectiveness/efficiency.
leaders to make good talent choices. By also introducing the
CO N C L U D I N G P O I N T S
concept of segmentation and critical roles, BASF is moving to-
wards a more robust supply and demand talent pipeline story. Numbers are the language of the organization.
HR is helping to coach people on what roles are critical in Most firms have too much data and too little decision-mak-
their business based on their metrics and individual business ing information.
strategies. BASF is focused on providing business insight HR must focus on what to measure, not how to measure.
while continuing to emphasize the importance of measure- The workforce is the deliverable of HR.
ment/measuring. Line mangers influence the business more than HR does so
line managers must be held accountable for the workforce
At AstraZeneca, the Strategy, Planning & Analytics team
they lead.
exists to provide planning and governance leadership to the
Strategy should drive metrics and metrics should drive
HR function. It also exists to create impactful insights into
decision-making.
AstraZenecas people and the HR function that combined
Metrics are answers to questions.