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Future of HR Metrics   A Brave New World
Add Value &  Maximize Upside Limit Liability  & Protect Downside Impact/Contribution to the   Business Strategic HR Planning Organizational Design HR as  Business Partner Compensation Benefits Safety & Workers’ Compensation Compliance Labor/Union  Relations Staffing Training & Development Culture & Image EEO/AA Employee Relations Performance Management Survey Action Planning HR Information Systems (HRIS) A Century of Evolution in the Function Labor  Employee  Personnel  Human  Organizational Relations  Relations  Resources  Effectiveness HR Continues to Evolve & the model defines our aspirations continue to grow Source:  Rich Vosburgh
The Role of HR ,[object Object],Source: University of Michigan Business School
The Role of HR ,[object Object],[object Object],Source: HRPS/Center for Effective Organizations
 
Efficiency and Effectiveness
Three Levels of Metrics Efficiency ,[object Object],[object Object],[object Object],[object Object],Source: Boudreau and Ramstead Effectiveness Impact
Three Levels of Metrics Effectiveness ,[object Object],[object Object],[object Object],[object Object],Source: Boudreau and Ramstead Efficiency Impact
Internal and External Historical Benchmarks
The Role of HR People Processes Future / Strategic Focus Day to Day Operational Focus ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Administrative Expert Compensation   Payroll as %--total operating costs (benchmarked); compensation targets benchmarked against peer companies; turnover rates; quality of management review and Board material. Benefits Medical cost per participant; dental cost per participant; 401K employee participation rate; $ saved in union negotiations.  HRIS Systems Support   HRIS implementation on time and within budget; customer satisfaction.   Compliance # New EEO Charges; # Old EEO Charges Closed; Progress on AA Goals; Outcomes of Inspections and Audits.
Employee Relations Turnover rates, “Best Place to Work” rankings, legal compliance, efficiency, union activity (or lack thereof).   Labor Relations Absence of the extreme negative (strikes, slowdowns, sit-downs, boycotts); $ outcome of new contracts, both immediate & longer term; timeliness & quality of new contracts; productivity per employee; safety & quality measures. Safety and Workers’ Compensation Employee Relations Expert # Incidents & $ value of accidents; # employees trained; % required training & certifications completed; audit results.  Diversity & EEO Attitude survey measures of perceived fairness; # people trained in Diversity Awareness and Diversity Leadership programs; perceived tolerance.
Staffing $ to Fill; Days to Fill; # Filled; Quality of Hires; Retention of Hires.   Organizational Design Benchmarking headcount; effectiveness of communications & key processes (no bottlenecks); spans and layers; management ratios.   Survey Action Planning   Employee satisfaction results at the work group level; rolled up to Business Unit level; norms available for Business Unit analysis.  Performance Management Performance Reviews: Timeliness and Quality; #/% Positions with written accountabilities and measures; other measures vary with the position.  Training & Development # Programs; #Days/Person Training; Impact of Training; effectiveness measures within new groups. Change Agent
Strategic HR Planning Quality of succession management program assessment.  Quality of Bench Strength.  Quality of Succession Plan Follow-up (% Actions Completed).   HR as Business Partner Any business measure of effectiveness.  360-Degree Feedback on the extent to which HR is considered a partner by those they support . Culture and Image Employee Satisfaction data; quality of the description and utilization of culture & image understanding; standing on the Fortune 100 Greatest Places to Work. Strategic Partner
Starting with the Business Strategy
Basic Process for HR Strategy Scan the External Environment Identify  Strategic Business Issues Develop HR  Strategy Communicate the  HR Strategy Identify People Issues
The Common HR Approach HR practices, processes, and systems   Articulate how what we do adds value to The business   Communicate to the business what a good job we are doing  The Inside-Out Approach Source: Patrick Wright
The Better HR Planning Approach Identify the  business model components and areas to drive value   Develop an HR strategy to execute the business model with relevant metrics Use the metrics to demonstrate or prove how we are driving business performance The Outside-In Approach Source: Patrick Wright
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Organization HR People Metrics Model Source: Patrick Wright
Do We Really Measure how HR is Driving Business Performance? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
The Role of HR ,[object Object],[object Object],[object Object],[object Object]
Impact
Three Levels of Metrics ,[object Object],[object Object],[object Object],[object Object],Impact Source: Boudreau and Ramstead Effectiveness Efficiency
Company Business Environment HR Department Outputs Inputs Internal Feedback: Efficiency Effectiveness External Feedback: Impact
Scope of HR Measurement Approaches   Value  Time Source:  Center for Effective Organizations, USC Ad hoc HR Measures Benchmarks Data Systems and Portals Scorecards  and  Drill Downs Strategic Impact Organizational Effectiveness Validity and Rigor Causation Leading Indicators
Building an Impact Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Tough Times for Top Executives ,[object Object]
Food for thought ,[object Object],[object Object],[object Object]
Execution Strategy People Processes Alignment =  Successful Execution To execute strategy you need to align your strategy, process and people!
[object Object],[object Object],[object Object],The biggest questions facing CEOs today
The Alignment Challenge Strategy People Processes Alignment =  Successful Execution Fast -  Logical ! Fast -  Logical ! Slow . . . And follows a  different logic . . . Success and speed of execution depend on  people  alignment, Yet this is the hardest element to align!
 
What is the Alignment of People?
Research Team Dr. Albert A. Vicere Pennsylvania State  University Dr. Elena Granell Instituto De Empressa,  Madrid Dr. Miles H. Overholt Human Resource Institute & Riverton Management  Consulting Group Jay J. Jamrog Human Resource Institute The University of Tampa
Research Questions Strategy People Processes Alignment =  Successful Execution ,[object Object],[object Object],[object Object],[object Object]
Grounded in Management Theories from key disciplines ,[object Object],[object Object],[object Object],[object Object],[object Object]
Included an analysis of four large data bases ,[object Object],[object Object],[object Object],[object Object]
The Alignment of People Strategy People Processes Alignment =  Successful Execution Five Key Elements ,[object Object],[object Object],[object Object],[object Object],[object Object],Processes
Impact Measurement It’s all about Change ,[object Object],[object Object],[object Object],[object Object]
Higher Values for HR ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
Conclusion
Key Attributes for the 21 st  Century HR Professional INTELLIGENCE ACCOUNTABILITY CURIOSITY Source:  Steve Miranda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Faster up the Learning Curve HIGHER PERFORMANCE   SOONER WHAT YOU  NEED TO KNOW PROCESS
Pushing The HR Curve   # People Who Know the Solution   Problem  Complexity Success = Intelligence + Access Source:  Steve Miranda
It’s Not HR’s Productivity We Should Be Concerned About The “Evolving” HR Professional Never Forgets …
Getting Computers To Do the Work Is A Waste of Time The “Evolving” HR Professional Never Forgets…
Because You Can Do It Doesn’t Mean You Should Do It The “Evolving” HR Professional Never Forgets…
“ It is not the strongest of the species that survive, nor the most intelligent, but rather the one most responsive to change.” Charles Darwin, “On the Origin of the Species by Natural Selection”, 1859 Charles Darwin, “On the Origin of the Species by Natural Selection”, 1859
 

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Future Of Hr Metrics

  • 1. Future of HR Metrics A Brave New World
  • 2. Add Value & Maximize Upside Limit Liability & Protect Downside Impact/Contribution to the Business Strategic HR Planning Organizational Design HR as Business Partner Compensation Benefits Safety & Workers’ Compensation Compliance Labor/Union Relations Staffing Training & Development Culture & Image EEO/AA Employee Relations Performance Management Survey Action Planning HR Information Systems (HRIS) A Century of Evolution in the Function Labor Employee Personnel Human Organizational Relations Relations Resources Effectiveness HR Continues to Evolve & the model defines our aspirations continue to grow Source: Rich Vosburgh
  • 3.
  • 4.
  • 5.  
  • 7.
  • 8.
  • 9. Internal and External Historical Benchmarks
  • 10.
  • 11. Administrative Expert Compensation Payroll as %--total operating costs (benchmarked); compensation targets benchmarked against peer companies; turnover rates; quality of management review and Board material. Benefits Medical cost per participant; dental cost per participant; 401K employee participation rate; $ saved in union negotiations. HRIS Systems Support HRIS implementation on time and within budget; customer satisfaction. Compliance # New EEO Charges; # Old EEO Charges Closed; Progress on AA Goals; Outcomes of Inspections and Audits.
  • 12. Employee Relations Turnover rates, “Best Place to Work” rankings, legal compliance, efficiency, union activity (or lack thereof). Labor Relations Absence of the extreme negative (strikes, slowdowns, sit-downs, boycotts); $ outcome of new contracts, both immediate & longer term; timeliness & quality of new contracts; productivity per employee; safety & quality measures. Safety and Workers’ Compensation Employee Relations Expert # Incidents & $ value of accidents; # employees trained; % required training & certifications completed; audit results. Diversity & EEO Attitude survey measures of perceived fairness; # people trained in Diversity Awareness and Diversity Leadership programs; perceived tolerance.
  • 13. Staffing $ to Fill; Days to Fill; # Filled; Quality of Hires; Retention of Hires. Organizational Design Benchmarking headcount; effectiveness of communications & key processes (no bottlenecks); spans and layers; management ratios. Survey Action Planning Employee satisfaction results at the work group level; rolled up to Business Unit level; norms available for Business Unit analysis. Performance Management Performance Reviews: Timeliness and Quality; #/% Positions with written accountabilities and measures; other measures vary with the position. Training & Development # Programs; #Days/Person Training; Impact of Training; effectiveness measures within new groups. Change Agent
  • 14. Strategic HR Planning Quality of succession management program assessment. Quality of Bench Strength. Quality of Succession Plan Follow-up (% Actions Completed). HR as Business Partner Any business measure of effectiveness. 360-Degree Feedback on the extent to which HR is considered a partner by those they support . Culture and Image Employee Satisfaction data; quality of the description and utilization of culture & image understanding; standing on the Fortune 100 Greatest Places to Work. Strategic Partner
  • 15. Starting with the Business Strategy
  • 16. Basic Process for HR Strategy Scan the External Environment Identify Strategic Business Issues Develop HR Strategy Communicate the HR Strategy Identify People Issues
  • 17. The Common HR Approach HR practices, processes, and systems Articulate how what we do adds value to The business Communicate to the business what a good job we are doing The Inside-Out Approach Source: Patrick Wright
  • 18. The Better HR Planning Approach Identify the business model components and areas to drive value Develop an HR strategy to execute the business model with relevant metrics Use the metrics to demonstrate or prove how we are driving business performance The Outside-In Approach Source: Patrick Wright
  • 19.
  • 20.
  • 21.  
  • 22.
  • 24.
  • 25. Company Business Environment HR Department Outputs Inputs Internal Feedback: Efficiency Effectiveness External Feedback: Impact
  • 26. Scope of HR Measurement Approaches Value Time Source: Center for Effective Organizations, USC Ad hoc HR Measures Benchmarks Data Systems and Portals Scorecards and Drill Downs Strategic Impact Organizational Effectiveness Validity and Rigor Causation Leading Indicators
  • 27.
  • 28.  
  • 29.
  • 30.
  • 31. Execution Strategy People Processes Alignment = Successful Execution To execute strategy you need to align your strategy, process and people!
  • 32.
  • 33. The Alignment Challenge Strategy People Processes Alignment = Successful Execution Fast - Logical ! Fast - Logical ! Slow . . . And follows a different logic . . . Success and speed of execution depend on people alignment, Yet this is the hardest element to align!
  • 34.  
  • 35. What is the Alignment of People?
  • 36. Research Team Dr. Albert A. Vicere Pennsylvania State University Dr. Elena Granell Instituto De Empressa, Madrid Dr. Miles H. Overholt Human Resource Institute & Riverton Management Consulting Group Jay J. Jamrog Human Resource Institute The University of Tampa
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
  • 42.
  • 43.  
  • 45.
  • 46. Faster up the Learning Curve HIGHER PERFORMANCE SOONER WHAT YOU NEED TO KNOW PROCESS
  • 47. Pushing The HR Curve # People Who Know the Solution Problem Complexity Success = Intelligence + Access Source: Steve Miranda
  • 48. It’s Not HR’s Productivity We Should Be Concerned About The “Evolving” HR Professional Never Forgets …
  • 49. Getting Computers To Do the Work Is A Waste of Time The “Evolving” HR Professional Never Forgets…
  • 50. Because You Can Do It Doesn’t Mean You Should Do It The “Evolving” HR Professional Never Forgets…
  • 51. “ It is not the strongest of the species that survive, nor the most intelligent, but rather the one most responsive to change.” Charles Darwin, “On the Origin of the Species by Natural Selection”, 1859 Charles Darwin, “On the Origin of the Species by Natural Selection”, 1859
  • 52.  

Editor's Notes

  1. 62 17 Upgrade this one if you have any good ideas (maybe carry over any visual elements from previous slide). Make next two slides match format that you decide for this slide.
  2. 62 17 Upgrade this one if you have any good ideas (maybe carry over any visual elements from previous slide). Make next two slides match format that you decide for this slide.
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