HR. Strategy using the HR. Scorecard. Thought Leadership. Heritage includes
being part of the firm that developed the Balanced. Scorecard. BSC Experience.
HR Strategy using the HR Scorecard
Thought Leadership
BSC Experience
Innovation
Heritage includes being part of the firm that developed the Balanced Scorecard
Have designed over 250 scorecards across the globe and industry sectors
Innovation in BSC design and implementation to customize to individual firm needs
CEOs worldwide are creating strategy focused organizations Cedar has thought leadership in helping achieve that with the Balanced Scorecard The Challenge in Implementing Corporate Strategy The implementation of corporate strategy has always been a significant challenge for most organisations. Research conducted at Harvard Business School shows that less than one in ten companies that formulate strategy can effectively implement it. The Balanced Scorecard was created to address this problem. Since 1992 the Balanced Scorecard has been recognised as one of the most innovative management tools of the century. Bain & Company estimates that over 50% of North American corporations use the Balanced Scorecard to implement strategy. Based on the Balanced Scorecard approach, Cedar has developed the HR Scorecard that can help
an organisation in not only successfully formulating and implementing its HR Strategy, but also aligning it with its overall Corporate strategy. What is the Balanced Scorecard? A Balanced Scorecard is a framework that focuses on shareholder, customer, internal and learning requirements of a business in order to create a system of linked objectives, measures, targets and initiatives which collectively describe the strategy of an organisation and how that strategy can be achieved. A Balanced Scorecard provides a framework to reorient the management system to the 'long view' for the organization while keeping the strategy of the organisation
central to the decision making process. The Balanced Scorecard today is no longer confined to just corporate use. It needs to be transcended to support functions like HR in order to maximise their strategic contribution to the larger unit and optimising their resource allocation by linking decisions directly to corporate and business unit goals. Positioning of the “New” HR Department Support functions are under scrutiny and are viewed as having “lost touch with the market place”. They are being managed as pure cost centres. However, the Balanced Scorecard can change these perceptions and demonstrate that support functions in fact constitute the glue that holds the organisation
together. Targeting and evaluating intersecting businesses and support functions on shared objectives fosters cooperation, communication, creative problem solving and value creation. The 'new' HR department positions itself in four distinct categories, i.e. as a Change Maker, Advisor, Regulator and Hand Maiden, which is based upon the approach that the HR department takes on issues faced, i.e. strategic, operational, interventionist or non-interventionist. Under these categories, the HR department will deal with varying issues. Integrating HR Strategy with the Overall Corporate Strategy The Balanced Scorecard aligns support functions with the business strategy. The HR Scorecard provides a framework for evaluating and illustrating the strategic impact of HR services and projects and enables HR to demonstrate its value through more than short-term financial outcomes. Adopting the Balanced Scorecard as a strategic management system ensures that HR views all its activities in terms of their contribution to the organisation's goals. The HR Scorecard enables Human Resource organisations to articulate and measure their strategic contribution to the enterprise based on the four perspective model. This has proven to be an important benefit to HR executives and managers who are striving to maximise their organisations' contribution to the goals of the larger enterprise. The Balanced Scorecard also drives crossbusiness synergies. Once the Corporate Scorecard has been developed then each SBU develops a long-range plan and Scorecard consistent with the Corporate Strategic Agenda. Each support function in turn develops a plan for “best practice” sharing to create synergies across SBUs. The Balanced Scorecard process produces key benefits for support units: 1. Aligns support function strategies to business strategies Links support function goals to business goals 2. Drives increased customer focus in support functions Identifies key internal customers Focuses attention on customer service & partnering through formal feedback
process 3. Articulates clear strategy for each support function Helps support functions to identify and communicate their unique strategies 4. Supports the management of the support organisation initiatives and projects Creates a framework for initiative prioritisation and budgeting Enables better dialogue around prioritisation issues with partner business units Aligns measurement with business goal achievement Creates an HR Strategy Implementation Roadmap that identifies a set of objectives The HR Strategy Map Cedar translates the results of the strategy formulation phase into a Strategy Map which not only identifies the revenue growth and operating efficiency opportunities it provides but also clearly identifies the impact across the organisation and its marketplace. The strategy map also helps the organisation focus on the top 15-25 key HR objectives that the organisation needs to deliver on. For each of these objectives, a set of performance measures need to be identified to help an organisation track the implementation of the strategy. More importantly what are the top 15-20 projects/initiatives that an organisation needs to focus on also need to be identified. One of the reasons HR projects fail is that most organisations focus on the technical projects, but underestimate other issues or objectives that need to be managed. For example, there may be projects in the area of resource planning, training, competence assessment, performance management, compensation, union relations, etc. that also need to be identified and completed successfully. Benefits of the HR Scorecard Approach Formulates an HR Strategy that is aligned with the overall corporate strategy. Ensures that the strategy is comprehensive covering financial, customer, internal process and organisational issues. Creates an HR Strategy Implementation Roadmap that identifies a set of performance measures, sets targets,
identifies initiatives and identifies ownership within the organisation to deliver the strategy. Provides an integrated and fast track strategy formulation and deployment framework. Focuses Human Resources staff on serving internal customers. The HR Scorecard defines group and individual performance measures in terms of delivering service to customers. Prioritises HR Initiatives by linking activities to business goals. The HR Scorecard assures that HR resources are devoted to those projects that support strategic objectives. Demonstrates the Strategic value of Human Resources. The Scorecard defines and measures HR's strategic contribution in concrete and clearly understood terms.
About Cedar Cedar is a global consulting, advisory and analytics firm. With over 25 years of experience, Cedar has assisted more than 1000 clients across industry sectors. Formerly part of Renaissance Worldwide, a $1 Billion consulting firm, co-founded by the creators of the Balanced Scorecard, Cedar has significant capability in the international market strategy, business strategy development, organizational and operational transformation. Cedar, winner of the 2010, 2011 & 2012 Industry Award for The Best Advisory Firm, is headquartered in the US and has a network of offices in 16 locations, worldwide. For more information, please visit www.cedar-consulting.com v2 7.2.2102 Chicago New York Sao Paulo Mexico London Brussels Paris Munich Johannesburg Dubai Mumbai Singapore Shanghai Seoul Tokyo
