HR Scorecard

What is the HR scorecard?

• The HR scorecard is a strategic HR measurement system that

helps to measure, manage, and improve the strategic role of
the HR department.
• The HR scorecard, first published by Becker, Huselid & Ulrich
in their 2001 book that bore the same title
There are five steps to create an HR scorecard

1.Create an HR strategy map

2.Identify HR deliverables
3.Creation of HR policies, processes, and practices
4.Aligning HR systems
5.Creating HR efficiencies
 Case-HPCL
Why measure HR effectiveness

 In HPCL Context

 How does HR Add Value to Business

(alignment with business)

 How is effectiveness of HR measured

Why measureAlignment
HR effectiveness
of HR with Business

Strategy
What are our strategic
and business
objectives?

Distinctive Competence
To achieve our strategy, what are
the key things we need to do
exceptionally well in order to
achieve our competitive advantage.

Workforce Capability
What are the key capabilities that our
workforce needs to excel in order to
achieve our business strategy?
 HPCL Model for alignment with business

Future/strategic focus

Strategic partner Change Agent

(Management of Strategic (Management of

Human Resources) Transformation
Processes

and change)

People
Administrative expert Employee champion

(Management of (Management of
Organisation infrastructure) Employee contribution)

Day-to-day operational focus

The Dave Ulrich Model

HR as Change Agent

Future/strategic focus

People Focus
Change Agent

(Management of
Transformation
and change)
 Project ‘ACE’ as a Change Initiative

 Project ‘ACE’ – Achieving Continuous Excellence

( An Organizational Transformation Initiative)

 A comprehensive exercise of co-creating a vision and

cascading it across all levels (based on principles of Learning
Organization propounded by Peter Senge)

 Series of ACE (visioning) workshops conducted starting from

Top Management down to Regional levels.

 Learning Organization workshops being conducted across all

the levels including staff (introduction to five disciplines and its
application)
 Project ‘ACE’ as a Change Initiative

 Project ‘ACE’ – Achieving Continuous Excellence

( An Organizational Transformation Initiative)

 Leadership Workshops

 People involvement in Strategy

 Involvement of front line officers witnessing the ‘moment of

truth’ in the strategizing process.

 Strategies formulated for Retail and LPG SBU’s and HR with

the involvement of over 500 front line officers.
 HR as Strategic Partner

Future/strategic focus

Processes Focus
Strategic partner

(Management of Strategic
Human Resources)
 Balanced Scorecard as a Strategic Initiative

 Strategic tool for translating vision into clearly

articulated strategy and cascading the same to
different SBU’s and levels through scorecards.

Financial Improved Profitability

Customer Satisfied Customer

CURRENT REALITY

Internal Processes Customer Centric Processes

Learning and Growth Improved People Competencies

 Why measure
Competency HR
Mapping andeffectiveness
Development as
Strategic Initiative

 A Strategic process to build people capabilities in

line with international benchmarks to meet future
business challenges.

 Competency Frameworks developed in line with international

standards

 Behavioral Competency Framework for all levels

 Technical Competency Framework for all job families

 Development Centers for assessing individuals against

competency profile for the position.

 Trained and Certified Internal Assessors

 Behavioral Competency Framework

LEADERSHIP FRAME

I 1 Creating Customer Delight

H 2 Leading Change and Creativity

3 Building Collaborative Partnerships

G
4 Promoting Synergistic Teamwork
F
GRADES AT HPCL

5 Demonstrating Business Savvy and Decisiveness

E
6 Driving Results and Excellence

D 7 Building Global and Strategic Perspective

INDIVIDUAL CONTRIBUTOR FRAME

C 1 3 Enduring Commitment
Dynamic Customer Focus
and Initiative
B 2 4
Active Learning and Agility Drive for Excellence
A
5
Cooperative Teamwork
 Competency Based Training

TRAINING NEED IDENTIFICATION

Individual
Development Plans As spelt out by SBU’s in
(competency gaps) line with business
requirements

Behavioral Technical

Concurrently address Behavioral and Technical Competencies

Junior Management Middle Management Top Management

Weightage to Behavioral and Technical Competencies

Managing Leading
 Six Sigma as a Strategic Initiative

 A Strategic initiative to review the critical business

processes and initiate continual improvements to the
same basis scientific methodology.

 Critical Business / Technical Processes identified for

improvements.

 Six Sigma Projects were selected to address these critical

processes in Refineries / LPG Plants / Terminals.

 General Electric Experts are mentors for all the projects to

monitor progress till completion.
 HR as Administrative Expert

Processes Focus
Administrative expert

(Management of
Organisation infrastructure)

Day-to-day operational focus

 HR as Administrative Experts - Initiatives

 Leveraging Information Technology

 Enterprise Resource Planning (ERP) leveraged for prompt
employee service.
 Leveraging technology to provide access to employee
information through intranet.
 Finger touch Kiosks at major locations to help non-
management employees access their personal information.

 Leveraging IT for creating a Learning Organization

 Experience Sharing enabled through intranet.
 Knowledge database created on different portals on intranet.
HR as Employee Champion

People Focus
Employee champion

(Management of
Employee contribution)

Day-to-day operational focus

 HR as Employee Champion - Initiatives

 DGM’s as Mentors to different regions

 Role of facilitating effective performance reviews and

feedback.
 Act as a management representative to communicate
management philosophy, priorities and initiatives to
employees at large.
 Highlight issues of concern at regions to the
management.

 360 Degree Multi-rater Feedback System

 To provide officers with an all round feedback from

various individuals interacting with them , giving
insights into their managerial/leadership behavior
displayed at workplace
 Project Darpan - Gauging Employee Engagement

 Employee Survey to understand the dimensions of

employee engagement that drive business
outcomes

 Annual Employee Survey across all locations

of the Corporation in partnership with The
Gallup Organization .
 Measuring HR effectiveness

 Investment in HR processes and initiatives need to

culminate into business results, and therefore the
need to measure HR effectiveness

 Meets demands for external accountability

( CEO, Business Heads )

 Establishes clear, significant mission and goals

 Fosters strong sense of internal accountability

 Metric – A basic definition

A quantifiable measure (not the measurement itself)

made over time, which communicates vital
information about the quality of a process, activity,
or resource.

Can be subjective, relative or absolute

 Characteristics of a good metric

What gets measured is

what gets done
 Aligned with Business
 Actionable and Predictive
 Consistent
 Simple, understandable, logical and repeatable
 Unambiguously defined
 Capable of tracked over time
 Capable of comparison (external benchmarks)
 MOST IMPORTANTLY – It should drive
appropriate action
 WhySelecting
measure the HR
‘RIGHT METRIC’
effectiveness

 Selecting the right metric is the key to success

(A wrong metric can destroy value in medium term)

 Common Mistakes in design and use of metric include:

 Metrics for the sake of metrics (not aligned)

 Too many metrics (no action)
 Metrics not driving the intended action
 No record of methodology
 No benchmarks
 Measuring
Why measureHR effectiveness at HPCL
HR effectiveness

Balanced Scorecard Methodology

 HR Scorecard linked to Corporate Scorecard
 Developing
Why HR Scorecard
measure – The process
HR effectiveness

 Define Business Strategy (Corporate Scorecard)

 Outline Company’s Value Chain
(Activities companies undertake to create value to
Customers)
 Identify strategically required organizational
outcomes
 Identify required employee competencies and
Behaviors
contd…..
 Developing
Why HR Scorecard
measure – The process
HR effectiveness

 Identify strategically relevant HR Systems, policies

and initiatives.
 Design HR Scorecard Measurement System
 Periodically evaluate the measurement system
 Periodically review the way HR metrices are
reviewed
 THE HRD SCORECARD

HP HR
THE IR SCORECARD
 HRD Financial Metrices (examples)

Scoreca
Strategic Objectives Metrics Description
rd Key
F1 Management value Value added per Measures utilization efficiency of
add management employee resource
employee
 IR Financial Metrices (examples)

Scorecard
Strategic Objectives Metrics Description
Key

F1a Reduce incidents of Incidents of labour Measures number of labour disputes in

and downtime due disputes the period
to labour disputes

F1b Reduce incidents of Total man-days lost due Measures the total number of man-days
and downtime due to labour disputes lost due to labour disputes
to labour disputes

F2 Resolve IR related Number of IR related Measures the total number of IR related

legal cases legal cases resolved legal cases resolved during the period
F3 Optimize workmen Non-management Index measures the aggregate company
productivity employee productivity level non-management productivity as
index weighted average of SBU level
productivity(throughput per non-
management employee)

F4 Optimize legal and Overall legal and dispute Measures the total cost incurred in
dispute settlement settlement cost resolution of labour disputes through
cost settlement and legal cases
 HRD Customer Metrices (examples)

Scorecard
Strategic Objectives Metrics Description
Key
C1 Competent Management employee Measures overall improvement in
Management competency levels employees competency levels
employees
C2a Management Management employee Employee satisfaction index measures
employee and Retired satisfaction index the satisfaction levels of management
employee delight employees

C2b Management Number of unresolved Measures the number of unresolved

employee and Retired complaints complaints from retired employees
employee delight

C3 Reduce employee % attrition among high Measures attrition rate among high
attrition performers performers in the organization

C4 Inter-SBU Number of exceptions Measures the number of exceptions

coordination to SLAs agreed to and signed with other SBUs
and departments

C5 Acceptance and Delay in implementation Measures the implementation

ownership of new of new initiatives effectiveness of new initiatives
initiatives
 IR Customer Metrices (examples)

Scorecard Strategic
Metrics Description
Key Objectives
C1a Satisfied and Non-management Metric measures the satisfaction levels of non-
flexible employee satisfaction management employees through annual survey
workmen index carried out by an external agency

C1b Satisfied and Instances of vacancy Metric measures the number of non-
flexible filling by existing management vacancies that are filled up by re-
workmen manpower deploying existing manpower

C2 Constructive Net positive unions Measures the net number of positive unions
employee (unions for which number of issues taken to
unions and conciliation stage as percentage of
association memberships is less than benchmark number)

C3 Inter SBU co- Number of exceptions Measures the number of exceptions to SLAs
ordination to SLAs agreed and signed with SBUs and other
departments

C4 Enlightened Pre and post training Measures the effectiveness of IR training progg.
line managers evaluation through pre and post training progg. evaluation
of line managers
 HRD Processes Metrices (examples)

Scorecard
Strategic Objectives Metrics Description
Key
P1 Organisation Design Delay in implementation Measures the delay in implementation
Alignment of changes to the of changes to organization structure
organization structure that have been proposed to, and
beyond scheduled time accepted by Management
frame

P2 Manpower Planning Percentage shortfall or Measures the efficiency of manpower

excess manpower planning process by determining
deviation of actual number of
employees from required manpower
strength

P3 Job evaluation & Average competency gap Measures the effectiveness of human
competency fit resource allocation by comparing the
competencies required for position
with competencies exhibited by
incumbents

P4 Talent attraction and Average CGPA of Measures the attractiveness of HPCL

retention applications received to best talent
during campus
recruitment
 IR Processes Metrices (examples)

Scorecard Strategic
Metrics Description
Key Objectives
P1a Legal Percentage of Metric measures the effectiveness of preventive
Management disputes at legal management as percentage of cases that
conciliation stage got resolved prior at conciliation stage
that go into judicial
process

P1b Legal Number of Measures the violations made to the internal

Management exceptions to legal documented legal management process
management
process
P2 Statutory Number of Measures the number of exceptions to IR
compliance exceptions to IR related statutory laws and norms
management related regulations
P3a Proactive union Measures the Measures the effectiveness of union
management number of strong management as a number of strong union
union leaders leaders converted from negative bias to neutral
converted from or positive bias (polarity to be defined by ED-IR
negative to neutral based on parameters like number of disputes
or positive bias raised with third party, agitation and aggressive
behavior etc
 HRD Learning & Growth Metrices (examples)

Scorecard
Strategic Objectives Metrics Description
Key
L1 Quality of HR talent Competency score of HR Measures overall score of HR
department employees on identified competencies
L2 IT integration of HR Number of online HR Measures the number of HR processes
processes processes and and procedures that can be accesses by
procedures employees online
L3 Knowledge Knowledge Management Milestone metric measures the setting
Management system set-up up of a Knowledge Management system
L4 Strategic thinking HR strategic thinking Measures average score of HR senior
score management on strategic thinking
 Value Creation Example - HRD

Financial Management Value Add

Customer
Competent Management Employees

Internal/business process Competency Development Processes

Learning and growth

Quality of HR Talent
(to design appropriate competency development initiatives
 Value Creation Example - IR

Reduce incidents of and downtime

Financial due to labour disputes

Customer
Constructive employee unions and association

Internal/business process Proactive union management

Learning and growth

Strategic Thinking
(to anticipate implications of present actions and
take proactive steps)
 Payoff’s
Why of measuring
measure HR HR effectiveness
effectiveness

 Show contributions of selected HR projects

 Earn respect of senior management
 Gain the confidence of clients
 Improve support for human resources
 Enhance HR processes
 Identify processes for mid term corrections
 Identify successful HR projects
 Forecast HR project success
 Finallymeasure
Why , create a Value System for HR
HR effectiveness

Values co-created and adopted by HP HR Team

 Respect the individual

 Honor your commitments
 Work in Teams