HR Balanced Scorecard. The balanced HR Scorecard is a set of measures that
gives top HR managers a fast but comprehensive view of the business.
HR Balanced Scorecard
The balanced HR Scorecard is a set of measures that gives top HR managers a fast but comprehensive view of the business. The purpose of a scorecard is to put strategy and vision at the center for establishing goals that can be adopted by employees. The HR value proposition is the basis for constructing the balanced scorecard. It is the promise of value to be delivered by HR, and the belief from the customer of the value that will be experienced. The scorecard includes financial measures that tell the results of actions already taken (lagging indicators), and complements those measures with operational measures on customer satisfaction, internal processes, and HR’s innovation and improvement activities (leading indicators) – which are the drivers of future financial performance. A balanced scorecard allows HR managers to look at the business from four important perspectives: 1. Financial –How is the firm regarded by all shareholders? 2. Customer – How is HR perceived by internal customers? 3. Internal Operations – What does HR promise and deliver to customers? What does HR do best? 4. Learning and Development – How does HR continue to improve and create value? Implementing the balanced scorecard will require dedicated involvement of the senior managers who have the most complete picture of the company’s vision and priorities. Kaplan and Norton 1992 – “The Balanced Scorecard”
