The HR Scorecard

Linking People, Strategy, and Performance

Brian E. Becker, Mark A. Huselid, Dave Ulrich

Publisher: Harvard Business School, 2001 , 234 pages

ISBN: 1-57851-136-4

Synopsis:

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Providing the tools and systems required for leading a "measurement managed" HR architecture, this important book heralds the emergence of human resources as a strategic powerhouse in today's organizations.

Three experts in the field outline a powerful measurement system that highlights the indisputable role HR can play as both a prime source of sustainable competitive advantage and a key driver of value creation. They draw from an ongoing study of nearly 3,000 firms to outline a seven-step process they call an HR Scorecard, specifically designed to embed human resources systems within a firm's overall strategy and manage the HR architecture as a strategic asset. Building on the proven Balanced Scorecard model, they also show how to link HR's results to measures-such as profitability and shareholder value-that line managers and senior executives will understand and respect.

The authors argue that human resources's strategic role begins with designing an HR architecture — the HR function, the HR system, and strategic employee behaviors — that relentlessly emphasizes and reinforces the implementation of the firm's strategy. Using compelling examples from a variety of leading companies, they explain how to develop and implement an HR Scorecard in order to both manage the HR architecture as a strategic asset, as well as measure the contribution of that asset to firm

Table of Contents:

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• Foreword by David Norton

1. HR as a Strategic Partner: The Measurement Challenge
2. Clarifying and Measuring HR's Strategic Influence: Introduction to a Seven-Step Process
3. Creating an HR Scorecard
4. Cost-Benefit Analyses for HR Interventions
5. The Principles of Good Measurements
6. Measuring HR Alignment
7. Competencies for HR Professionals
8. Guidelines for Implementing an HR Scorecard

• Appendix: Research and Results