Balanced Scorecard Strategies And Hr Metrics Workshop Sept 13 Chicago, Il

1. Balanced Scorecard Strategies and HR Metrics
Presented by
Mr. Frederick S. Rick Buchman
Practitioner and Expert on Balanced Scorecard and Dashboard Applications, and
Co-Author,Balanced Scorecard Strategy for Dummies, Wiley & Sons, Inc. Sept 2007
September 13, 2010
Chicago, IL
9/13/2010
IQPC HR Metrics Summit, Sept 13, 2010-Balanced Scorecard Strategies Workshop Presenter: Rick Buchman
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2. Discussion of the Workshop
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For this Workshop
Objectives of the course:
Understand the fundamentals of the Balanced Scorecard and Dashboard approach within an HR framework, (specific to HR Metrics), and be able to:
Develop a framework for your Strategy Map
Devise the elements for each Leg of your Balanced Scorecard
Design your Dashboard Concept
Conduct of the course:
Some introductory lecture, mostly interactive, individual work
Majority split into research time, collaborative, evaluative and presentation materials
Total time about 140 min.
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3. Overview and Definitions
What is meant by the term Balanced Scorecard?

Traditional Scorecards are mostly Financial Based

4. Revenue, Margin, Profit, Cash Flow, Budget Compliance, While these are very important to a company, they do not tell the whole story and decisions based on these metrics may not work(like wagging a dog)

Balanced Scorecards look at the multiple dimensions of an organization, Primarily focusing on:

5. CustomerSatisfaction and Focus 6. Financial Performance 7. Business Process Performance 8. Employee Knowledge, Skills and Competencies9/13/2010
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9. The Four Legs of a Balanced Scorecard
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Business Process Performance
Employee Knowledge, Skill and Competencies
Per Delivery Plan
First Time Right
Exactly as Ordered
Excellent Condition
Cost Management
Good Handoffs
In-Process Checks & Great Quality
First Time Right
Customer Focus
Product Understanding
Process Understanding
Business Knowhow
Teamwork & Feedback
Continuous Improvement
On-TimeWorks Great!
Great Price!Durable
Customer Satisfaction
and Focus
LoyaltySelective
Confident Responsive
Financial Performance
Revenue Profitable
MarginCost Management
Competitive Advantage
Market ShareBusiness GrowthShareholder Value
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10. 9/13/2010
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Overview and Definitions
Write down 4 general items related to each Leg, related to HR Metrics. Then, code each item as S, O, or T for Strategic, Operational or Tactical.
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Overview and Definitions
Small Group Discussion

Small group discussion:

12. Get into groups of 5-6, sorted by Strategic, Operational or Tactical. 13. Focusing on the specific HR Metrics you are focusing on, discuss each Leg and the items you have written down.Share your thoughts with the other members of your discussion group.[15 minutes] 14. Ask questions for clarification, understanding.No Judging. 15. Feel free to change, add, correct your notes, based on your discussion. 16. Be prepared to talk briefly about what your group talked about, and any key insights discovered during the discussion.[General group review and summary 5 minutes] 17. Update your notes for the next step.IQPC HR Metrics Summit, Sept 13, 2010-Balanced Scorecard Strategies Workshop Presenter: Rick Buchman
18. The 4 Steps to Implementing Balanced Scorecards
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1. Establish your
Strategy Map
Feed Back Loops
[Quality, Issues, Timing, Performance, ]
2. Design the Legs of
Your Balanced Scorecard
Feed Forward Loops
[Information, Orders,..]
3. Develop Executive &
Department Dashboards
4. Continuously
Improve
Feed Back Loops
[Quality, Issues, Timing,
Performance, ]
Feed Back Loops
[Quality, Issues, Timing,
Performance, ]
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Step 1
Mapping your Strategy
20. Strategy Mapping for a Balanced Approach

What is Strategy Mapping?

21. Maps the key organizational strategies to the Legs of your scorecard 22. How is it done?Identify the top 3-4 organizational strategies
Set up a Matrix to align to the 4 Legs (Customer, Financial, Process, Competencies)
Identify Key Alignments, Actions, and Metrics
Link to and Design Department Dashboards for Real-Time Management and Adjustment

How does it add value?

23. Ensures Actions, Focus are aligned to Strategic Direction 24. Enables Real-Time Response and Adjustment to Changes9/13/2010
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25. 9/13/2010
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Strategy Mapping for a Balanced Approach

Key Concepts

26. There is an important difference between an Objective or Goal, and the Strategy to achieve it. 27. Objective or Goal:This is the desired End State to be achieved by the organization.It can be a financial (Make $XX Million Net Profit), Market (Own XX% Market Share), or any other specific, measurable target. 28. Strategy:This is the method that the organization will employ, to achieve its objective or goal. Example:Objective:Achieve 15% increase in Market Share in 3 yrs.
Strategy: Add new major clients, through:1) Acquiring 3-5
smaller competitors, 2) Converting 20 potential
clients from competitor companies

KISS Keep It Simple Strategically Strategy should be clear and explainable to anyone within 60 seconds or less.

SM
29. HR Current Processes and Practices alignment to Balanced Scorecard Legs- Survey of 100 Medium to Large Companies
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Current HR Processes and Practices are NOT well aligned in a balanced way to meet
the needs of the business, nor do we see a strong relationship toward customer
Satisfaction, organizational goal achievement or overarching / long term strategies.
Source:BBI Study, 2010
30. An Example of a Strategy Map
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A Company seeks to increase Market Share through Growth, providing added
Value to customers through knowhow and performance, and increasing shareholder
Value through improved Profitability and increased Margin performance
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31. HR Metrics
HR KeyMetrics Considerations:
HR Capability Requirements of the Organization
Technical skills, knowledge and competencies to design, produce, deliver, and support the products and services
Other skills and capabilities necessary leadership, project management, functional competencies (i.e. financial competency, systems thinking,)
HR Practice skills, knowledge and competencies Career planning/ employee development, coaching/facilitating, problem solving, conflict management, Communication skills,
HR Processes & Systems
Those processes which the HR department/group manages and executes to support the organization staffing/hiring, resource planning, training and development,, compensation and benefits, performance appraisals, personnel data management, labor relations, succession planning,
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Source:The HR Scorecard Linking People, Strategy and Performance, by Becker, Huselid and Ulrich, HBS Press, 2001
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CurrentConsiderations Some thoughts about whats important
Elements of a High Performing Organization
- Leadership- Motivation / Alignment
- Talent- Positive Work Environment
Source:Understanding the Balanced Scorecard; An HR Perspective, by James Creeland, Copywrite HR.Com 2002
Goal alignment achieving definable Return on Investment (ROI)
To effectively achieve ROI, you must link the training experience and utilization to the impact on the business, and allow for real-time adjustment
Source:The Human Resources Scorecard Measuring the Return on Investment, by Phillips, Stone and Phillips, published by Butterworth-Heinemann, 2001
5 Core Principles to Effective Talent Management

People Equity Framework

33.Strategic Focus on Talent Management 34.Align your Talent Management Practice to Trends & World Environment 35.Measure Talent Manager per Business Performance 36.Talent GrowthSource:Reinventing Talent Management: How to Maximize Performance in the New Marketplace, by William A. Schiemann, published 2009 by Wiley & Sons, Inc.
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Strategy Mapping

38. Get into groups of 5-6, sorted by Strategic, Operational or Tactical. 39. Discuss potential issues for Managing Human Resources and how best to measure success, relate to Strategy Mapping and the 4 legs of the Balanced Scorecard.Discuss how they might be addressed.Share your thoughts with the other members of your discussion group.[15 minutes] 40. Ask questions for clarification, understanding.No Judging. 41. Feel free to change, add, correct your notes, based on your discussion. 42. Be prepared to talk brieflyabout what your group talked about, and any key insights discovered during the discussion.[General group review and summary 5 minutes] 43. Update your notes for the next individual exercise.IQPC HR Metrics Summit, Sept 13, 2010-Balanced Scorecard Strategies Workshop Presenter: Rick Buchman
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Strategy Mapping Select Level:
Write down your Objectives/Goals,
and specific Strategies:
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Step 2
Designing your Balanced Scorecard
Defining and Aligning the 4 Legs
46. The Balanced Scorecard
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What is a Balanced Scorecard?

47. Business Multi-Discipline Tracking and Management Tool to help achieve and sustain desired performance levels , based on 4 Legs:Customer FocusFinancial Performance
Business Process PerformanceEmployee Knowledge, Skills & Competence

How is it created?

Determine the key focus areas and measures for each Leg, tied back to the strategic direction, from the Strategy Map
Decide the Strategic, Operational and Tactical Actions to be tracked and measured for your group
Design your Balanced Scorecard, get concurrence and deploy

48. Ensures Actions, Focus are linked to key goals, and measured 49. Enables Real-Time Response and Adjustment to ChangesIQPC HR Metrics Summit, Sept 13, 2010-Balanced Scorecard Strategies Workshop Presenter: Rick Buchman
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Tying Strategic, Operational and Tactical to the 4 Legs
VISION / STRATEGIES
STRATEGIC LEVEL

TIMEFRAME:3 TO 5 YEARS

51. ASSESSMENT 52. SELECTION 53. DEPLOYMENT 54. REVIEW: AT LEAST MONTHLYOPERATIONAL LEVEL

TIMEFRAME:1 YEAR

55. ASSESSMENT 56. SELECTION 57. DEPLOYMENT 58. REVIEW: AT LEAST WEEKLYKNOWLEDGE & GROWTH
FINANCIAL
CUSTOMER
SYSTEMS & PROCESSES
TACTICAL LEVEL

TIMEFRAME:REAL TIME

59. ASSESSMENT 60. SELECTION 61. DEPLOYMENT 62. REVIEW: REAL TIME, DAILY, WEEKLYIQPC HR Metrics Summit, Sept 13, 2010-Balanced Scorecard Strategies Workshop Presenter: Rick Buchman
63. Strategic, Operational and Tactical Focus An Example
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64. Another Example of a Balanced Scorecard
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65. 9/13/2010
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Developing your Balanced Scorecard

66. Get into groups of 5-6, sorted by Strategic, Operational or Tactical. 67. Discuss different aspects for HR Shared Services and Outsourcing, relate to the 4 legs of the Balanced Scorecard.Share your thoughts with the other members of your discussion group.[15 minutes] 68. Ask questions for clarification, understanding.No Judging. 69. Feel free to change, add, correct your notes, based on your discussion. 70. Be prepared to talk brieflyabout what your group talked about, and any key insights discovered during the discussion.[General group review and summary 5 minutes] 71. Update your notes for the next individual exercise.IQPC HR Metrics Summit, Sept 13, 2010-Balanced Scorecard Strategies Workshop Presenter: Rick Buchman
72. 9/13/2010
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Developing your Scorecard Select Level:
Enteryour Key Performance Metrics (KPM) related to
each Leg of your Balanced Scorecard from Step 2:
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Defining the 4 Legs of the Balanced Scorecard
Enteryour Strategies down the left side.Then, in each box, identify a specific initiative that will support achieving each strategy related to the specific Leg of your scorecard.
74. 9/13/2010
IQPC HR SSO Summit, May 10, 2010-Balanced Scorecard Strategies Workshop Presenter:Frederick S. Rick Buchman
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A Potential Risk with HR Metrics
How good is your data?
How can you know?
How do you ensure your information is reliable?

Utilizing Measurement Systems Analysis (MSA)

75. Resource multiple sources validation 76. Check often, always ask where the information came from, and what is the basis for any conclusions or decisions made 77. Use the Smell Test if it smells or feels funny, dont just accept or act on it, check it out to be sure, especially if it is something different or particularly interesting.The criticality of the decisions that depend on this information demand reliability, which requires rigorous discipline in ensuring the highest levels of quality and accuracy.
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Step 3
Develop your Dashboards
Executive/Organization
Department / Division
Section / Workgroup
79. The Dashboard
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What is a Dashboard?

80. Visual Management Tool that provides Real-Time critical information on key business measures, to enable timely decisions, based on the 4 legs of the Balanced Scorecard:Customer FocusFinancial Performance
Business Process PerformanceEmployee Knowledge, Skills & Competence

How is it created?

Assess your business operation/process, and determine what you would need to see on an on-going basis, in order to assess the health of your operation/department, as related to each of the 4 legs
Design your Dashboard to provide Real-Time, up to date intelligence on these measurements
Install the Dashboard, test it, and improve on it, and make it part of your daily management system.

81. Ensures Actions, Focus are continually aligned to key performance goals 82. Enables Real-Time Response and Adjustment to ChangesIQPC HR Metrics Summit, Sept 13, 2010-Balanced Scorecard Strategies Workshop Presenter: Rick Buchman
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Developing your Dashboard

Consider various ways to portray, arrange and display your visual and graphical indicators.

84. Important points: 85. Must clearly indicate when something requires attention 86. Should be simple 87. Easy to understand 88. Flow naturally 89. Use Color, different shades 90. Updated in real time 91. Flexible to requirements changesIQPC HR Metrics Summit, Sept 13, 2010-Balanced Scorecard Strategies Workshop Presenter: Rick Buchman
92. Example of Exec, Mgmt and Workgroup Dashboards
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A Real State Department of Human Services Finance set-up
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93. Dashboard Example Ad Group
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LEGEND:
Home page
Dept Web Pages
Key Points:

Lots of Color, Graphics, Charts, clearly labeled, and well understood by all.

94.Set up so that an executive or manager can look it over quickly, and shouldbe able to spot something out of whack immediately.30
95. Example of a Dashboard for an Airline
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96. 9/13/2010
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Strategy Mapping
Small Group Exercise

Small group Exercise:

97. Get into groups of 5-6, sorted by Strategic, Operational or Tactical. 98. Imagine you are members of an HR Shared Services organization.As a group, on a Flip-Chart, lay out a Dashboard, considering everything we have discussed. Be sure to include aspects related to all 4 Legs of the Balanced Scorecard, but specifically to your level and how you would measure your organizational performance. [15 minutes] 99. Be prepared to talk brieflyabout what your group talked about, and any key insights discovered during the discussion.[General group review and summary 10 minutes] 100. Update your notes for the final individual exercise.IQPC HR Metrics Summit, Sept 13, 2010-Balanced Scorecard Strategies Workshop Presenter: Rick Buchman
101. 9/13/2010
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Developing your Dashboard Select Level:

List various visual and graphical ways to show current and updated status of your metrics, for each Leg, based on the metrics you chose for your Scorecard.

102. Suggestions:- Red, Yellow, Green Indicators - Gauges, Meters
- Bar, Pie, Line, Radar Charts- Combinations
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Developing your Dashboard Select Level:

Layout your Dashboard:

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Wrap up

What we covered today:

105. Understand the fundamentals of the Balanced Scorecard and Dashboard System for Management 106. Develop a Framework for Mapping your Strategy 107. Devise the Elements for each Leg of your Balanced Scorecard 108. Design and layout a Dashboard for your particular level and management requirements 109. Where you can go to get more information: 110. Web 111. Books 112. Industry Examples 113. Other Resources 114. Remember.. 115. No One answer for you, many different ways 116. Try something, and then adjust, but get it out there soon, and dont be afraid to make changes and adjustments 117. Keep it Simple, Clear, Effective.Use the 20 second ruleIQPC HR Metrics Summit, Sept 13, 2010-Balanced Scorecard Strategies Workshop Presenter: Rick Buchman
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- Your PresenterFrederick S. Rick Buchman
Mr. Buchman has over 25 years hands-on international strategic, operational and organizational transformation experience, spanning multiple industries from missiles and electronics to medical devices. A certified Black Belt and Master Black Belt in Lean Six Sigma, He has been directing business improvement initiatives involving Strategy Planning, Lean and Six Sigma, Balanced Scorecard and Dashboard deployment, Operations, and Organizational optimization for over 20 years, both internally and as a contract consultant, supporting the automotive, electronics, semiconductor, oil & gas, electromechanical, medical device, commercial and components industries, and working with Engineering, Operations, R&D, Finance, HR and Legal divisions. Rick has also taught extensively at the graduate level for major institutions, including The Eli Broad Graduate School of Management at MSU, and at Towson and George Mason Universities, in strategy planning, problem solving, business management, value stream mapping, balanced scorecard and dashboard strategies, coaching and team leadership.His clients have included AT&T, Raytheon Corp., Hughes, Texas Instruments, Ford Motor Company, Allied-Signal, ITT, Husky Oil, Slumberger, Gerdau, Remy, Dura GmbH, GKN, and several US State and Federal Government agencies.A retired 28 year US Army Officer, Mr. Buchman has a B.S. in Mathematics, an MBA in Business, and a PhD (ABD) in Business, and has been featured in International Whos Who in Business, 2006, and recently presented at the HR Shared Services Summit earlier this year in May in Chicago.
Rick recently co-authored the Amazon Productivity Best-seller Balanced Scorecard Strategy for Dummies, with Mr. Charles Hannabarger and Mr. Peter Economy, published by Wiley and Sons, Inc. in September 2007 (English Language), and again in March 2008 (Dutch Language) and September2008 (German Language). This book was also just recently voted 5th out of the Top 20 Must-Read Books by the Channel Insider Community, May 5, 2010, and #2 of Business Productivity books by Amazon, Sept. 6, 2010. Mr. Buchman currently resides in Louisville, KY.

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Balanced Scorecard Strategies And Hr Metrics Workshop Sept 13 Chicago, Il

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