hr value chain
TRANSCRIPT
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Module 4 – Lesson 2
ALIGNING METRICS TO SUPPORT ORGANIZATIONAL DECISION-MAKING
The Workforce Scorecard & Related HR Metrics
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Copyright © AIHR Academy 2Strategic HR Metrics: Module 4 – Lesson 2
HR VALUE CHAIN
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Copyright © AIHR Academy 3Strategic HR Metrics: Module 1 – Lesson 1
CONSIDERING YOUR METRICS
The HR metrics and
data that all
organisations
should maintain for statutory or base
recording reasons
Minimum Required
RECORDINGSAdding Value
INFORMING
The HR metrics and
data that all
organizations should maintain to improve
the integrity of data
and decision-making
Influencing & Directing
DRIVING
The HR metrics and data that
many organisations should aspire
to maintain not only to improve
the range and depth of their HR
information, but to facilitate
more sophisticated information and decision-making from the
Boards down
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Copyright © AIHR Academy 4Strategic HR Metrics: Module 1 – Lesson 1
EXAMPLE METRICS
• Payroll data (e.g. records of employees’ gross earnings, tax, expenses and benefits in kind, etc)
• Pensions data
• Records of periods of absence due to incapacity, maternity and paternity leave, etc
• Records of accidents and injuries at work
• Records required by Regulators (e.g. evidence of ‘fitness and probity’ for FSA Approved persons)
• Training Days delivered
• Compensation and reward metrics (e.g. average fixed compensation, average variable compensation, employee benefit expense, etc)
• Individual employee metrics and data (e.g. performance ratings, training records, potential ratings, etc)
• HR effectiveness & efficiency measures (e.g. average time to hire, cost per employee of the HR function, etc)
• Satisfaction/Engagement scores
• Leadership development measures (e.g. who are your next generation leaders, and probability of their success, etc)
• Future workforce planning and forecasting (e.g. types of talent required in the future, including key demographic trends, etc)
• Assessments of the impact of HR programmes on organisational effectiveness
• Human Capital ROI
• Human Capital Value Added
• Human Economic Value Added
• External benchmarking
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Copyright © AIHR Academy 5Strategic HR Metrics: Module 4 – Lesson 2
HR VALUE CHAIN
RECORDINGMinimum Required
INFORMINGAdding Value
DRIVINGInfluencing & Directing
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Copyright © AIHR Academy 6Strategic HR Metrics: Module 4 – Lesson 2
THE EMPLOYEE LIFECYCLE
CommunicationRecognition
Experiential learning
InductionOrientationCore skills
Performance MgmtTechnical Skills
RewardPromotion
Knowledge Sharing
AttractionRecruitment
Selection
EXIT FROM CURRENT ROLE
Lawrence, MT, 2015
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Copyright © AIHR Academy 7Strategic HR Metrics: Module 4 – Lesson 2
THE EMPLOYEE LIFECYCLE
CommunicationRecognition
Experiential learning
InductionOrientationCore skills
Performance MgmtTechnical Skills
RewardPromotion
Knowledge Sharing
AttractionRecruitment
Selection
EXIT FROM CURRENT ROLE
Lawrence, MT, 2015
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PARTNER WITH THE BUSINESS
8Strategic HR Metrics: Module 4 – Lesson 2
So, how do we select the right methodology?
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Copyright © AIHR Academy
PARTNER WITH THE BUSINESS
9Strategic HR Metrics: Module 4 – Lesson 2
Are they all valid?
So, how do we select the right methodology?
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PARTNER WITH THE BUSINESS
10Strategic HR Metrics: Module 4 – Lesson 2
1 Stakeholder mapping• Know who the interested parties are, and devise a strategy to work with them
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Copyright © AIHR Academy
PARTNER WITH THE BUSINESS
11Strategic HR Metrics: Module 4 – Lesson 2
Corporate Business Operational
Manufacturing Power/Interest Power/Interest Power/Interest
Engineering Power/Interest Power/Interest Power/Interest
Distribution Power/Interest Power/Interest Power/Interest
Consulting Power/Interest Power/Interest Power/Interest
Marketing Power/Interest Power/Interest Power/Interest
1 Stakeholder mapping• Know who the interested parties are, and devise a strategy to work with them
Mendelow, AL, 1991
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1. STAKEHOLDERMAPPING
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Stakeholder Interest
Stak
eho
lder
Po
wer
Low High
High
Low
Mendelow, AL, 1991
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1. STAKEHOLDERMAPPING
13Strategic HR Metrics: Module 4 – Lesson 2
Keep Satisfied
Actively Engage
Monitor (Minimal Effort)
Keep Informed
Stakeholder Interest
Stak
eho
lder
Po
wer
Low High
High
Low
Mendelow, AL, 1991
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1. STAKEHOLDERMAPPING
14Strategic HR Metrics: Module 4 – Lesson 2
Stakeholder Interest
Stak
eho
lder
Po
wer
Low High
High
Low
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Copyright © AIHR Academy
PARTNER WITH THE BUSINESS
15Strategic HR Metrics: Module 4 – Lesson 2
1 Stakeholder mapping• Know who the interested parties are, and devise a strategy to work with them
2 Relationship building• Approach your priority stakeholders with the notion of ‘value’
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2. RELATIONSHIP BUILDING
16Strategic HR Metrics: Module 4 – Lesson 2
“THE RIGHT CONVERSATION”
BUSINESS OBJECTIVES
DATALawrence, MT, 2015
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2. RELATIONSHIP BUILDING
17Strategic HR Metrics: Module 4 – Lesson 2
Worthwhile conversations
Information gathering
Refinement and review against strategic
imperatives
Inputs
Outputs
Alignment to strategy
Review, consideration and adjustment Lawrence, MT, 2015
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Copyright © AIHR Academy
PARTNER WITH THE BUSINESS
18Strategic HR Metrics: Module 4 – Lesson 2
1 Stakeholder mapping• Know who the interested parties are, and devise a strategy to work with them
2 Relationship building• Approach your priority stakeholders with the notion of ‘value’
3 Root Cause Analysis• Be open; but beware anyone who tells you they know what the problem is!
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Copyright © AIHR Academy 19Strategic HR Metrics: Module 4 – Lesson 2
3. ROOT CAUSE ANALYSIS
Why was my bi n not empt ied?
Ishikawa, K, 1968
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Copyright © AIHR Academy 20Strategic HR Metrics: Module 4 – Lesson 2
The refuse collection truck didn’t turn up!
Why?
3. ROOT CAUSE ANALYSIS
Why was my bi n not empt ied?
Ishikawa, K, 1968
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Copyright © AIHR Academy 21Strategic HR Metrics: Module 4 – Lesson 2
The refuse collection truck didn’t turn up!
Why?
The driver didn’t turn up for work
Why?
3. ROOT CAUSE ANALYSIS
Why was my bi n not empt ied?
Ishikawa, K, 1968
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Copyright © AIHR Academy 22Strategic HR Metrics: Module 4 – Lesson 2
The refuse collection truck didn’t turn up!
Why?
The driver didn’t turn up for work
She has been increasingly late
Why?
Why?
3. ROOT CAUSE ANALYSIS
Why was my bi n not empt ied?
Ishikawa, K, 1968
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Copyright © AIHR Academy 23Strategic HR Metrics: Module 4 – Lesson 2
The refuse collection truck didn’t turn up!
Why?
The driver didn’t turn up for work
She has been increasingly late
Why?
Why?
She and her family had to move further away from work
Why?
3. ROOT CAUSE ANALYSIS
Why was my bi n not empt ied?
Ishikawa, K, 1968
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Copyright © AIHR Academy 24Strategic HR Metrics: Module 4 – Lesson 2
The refuse collection truck didn’t turn up!
Why?
The driver didn’t turn up for work
She has been increasingly late
Why?
Why?
She and her family had to move further away from work
Why?
Her rent increased, but her salary hasn’t
Why?
3. ROOT CAUSE ANALYSIS
Why was my bi n not empt ied?
Ishikawa, K, 1968
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Copyright © AIHR Academy
PARTNER WITH THE BUSINESS
25Strategic HR Metrics: Module 4 – Lesson 2
1 Stakeholder mapping• Know who the interested parties are, and devise a strategy to work with them
2 Relationship building• Approach your priority stakeholders with the notion of ‘value’
3 Root Cause Analysis• Be open; but beware anyone who tells you they know what the problem is!
4 Engagement• Identify and commit the business sponsors for the Workforce Scorecard
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Copyright © AIHR Academy 26Strategic HR Metrics: Module 4 – Lesson 2
4. ENGAGEMENT
Engagement
Stakeholder Mapping
RelationshipBuilding
Root Cause Analysis
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THE ‘TRUSTED’ BUSINESS PARTNER
27Strategic HR Metrics: Module 4 – Lesson 2
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Copyright © AIHR Academy
THE ‘TRUSTED’ BUSINESS PARTNER
28Strategic HR Metrics: Module 4 – Lesson 2
1 Get to the point• Time is precious, use it wisely and don’t waste it
Few, SC, 2004; Turfte, ER, 1990; Nussbaumer Knaflic, c, 2015; Kahneman, D, 2011; Gigerenzer, G, 2002
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Copyright © AIHR Academy
THE ‘TRUSTED’ BUSINESS PARTNER
29Strategic HR Metrics: Module 4 – Lesson 2
1 Get to the point• Time is precious, use it wisely and don’t waste it
2 Check your data• To avoid embarrassing situations
Few, SC, 2004; Turfte, ER, 1990; Nussbaumer Knaflic, c, 2015; Kahneman, D, 2011; Gigerenzer, G, 2002
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Copyright © AIHR Academy
THE ‘TRUSTED’ BUSINESS PARTNER
30Strategic HR Metrics: Module 4 – Lesson 2
1 Get to the point• Time is precious, use it wisely and don’t waste it
2 Check your data• To avoid embarrassing situations
3 Less is more• Data visualization is encouraged by tools
Few, SC, 2004; Turfte, ER, 1990; Nussbaumer Knaflic, c, 2015; Kahneman, D, 2011; Gigerenzer, G, 2002
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Copyright © AIHR Academy
THE ‘TRUSTED’ BUSINESS PARTNER
31Strategic HR Metrics: Module 4 – Lesson 2
1 Get to the point• Time is precious, use it wisely and don’t waste it
2 Check your data• To avoid embarrassing situations
3 Less is more• Data visualization is encouraged by tools
4 Present interpretation and recommendations• But be very careful! Few, SC, 2004; Turfte, ER, 1990; Nussbaumer Knaflic,
c, 2015; Kahneman, D, 2011; Gigerenzer, G, 2002
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A WORD OF WARNING
32Strategic HR Metrics: Module 4 – Lesson 2
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A WORD OF WARNING
33Strategic HR Metrics: Module 4 – Lesson 2
It can be hard to maintain objectively
Kahneman, D, 2011
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Copyright © AIHR Academy
A WORD OF WARNING
34Strategic HR Metrics: Module 4 – Lesson 2
1 Confirmation Bias• Do not go fishing for data that tells you what you expected
It can be hard to maintain objectively
Kahneman, D, 2011
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Copyright © AIHR Academy
A WORD OF WARNING
35Strategic HR Metrics: Module 4 – Lesson 2
1 Confirmation Bias• Do not go fishing for data that tells you what you expected
2 Prospect Theory• Understand the human reactions to messages framed positively and negatively
It can be hard to maintain objectively
Kahneman, D, 2011
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Copyright © AIHR Academy 36Strategic HR Metrics: Module 4 – Lesson 2
1 Identify your key metrics 2 Create a stakeholder map
RECOMMENDED EXERCISES TO PERFORM
RECORDINGMinimum Required
INFORMINGAdding Value
DRIVINGInfluencing & Directing
Keep Satisfied Actively Engage
Monitor (Minimal Effort) Keep Informed
Stakeholder Interest
Stak
eho
lder
Po
wer
Low High
High
Low
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Module 4 – Lesson 2
ALIGNING METRICS TO SUPPORT ORGANIZATIONAL DECISION-MAKING
The Workforce Scorecard & Related HR Metrics
37