The HR Scorecard argues that HR measurement systems must be based on a clear understanding of organizational strategy and the capabilities and behaviors of the workforce required to implement that strategy. Thus, an HR Scorecard is a mechanism for describing and measuring how people and people management systems create value in organizations, as well as communicating key organizational objectives to the workforce.
It is based on a strategy map which is a visual depiction of “what causes what” in an organization, beginning with people and ending with shareholder or other stakeholder outcomes. The HR Scorecard is built around a series of examples and a process that helps managers to do this work in their own firms designing an HR architecture that relentlessly emphasizes and reinforces the implementation of the firm’s strategy.
The HR Scorecard has five key elements:
- The first element is what we called Workforce Success. It asks: Has the workforce accomplished the key strategic objectives for the business?
- The second element is we called Right HR Costs. It asks: Is our total investment in the workforce (not just the HR function) appropriate (not just minimized)?
- The third element we describe as Right Types of HR Alignment. It asks: Are our HR practices aligned with the business strategy and differentiated across positions, where appropriate?
- The fourth element is Right HR Practices. It asks: Have we designed and implemented world class HR management policies and practices throughout the business?
- The fifth element is Right HR Professionals. It asks: Do our HR professionals have the skills they need to design and implement a world-class HR management system?
The HR Scorecard: Linking People Strategy, and Performance (with Brian Becker & Dave Ulrich), was published in 2001 by the Harvard Business School Press. It is an international bestseller, and has been translated by the HBS Press into Chinese, Danish, Dutch, Japanese, Korean, Polish, Portuguese, and Spanish. It received the Soundview Executive Book Summary, 30 Best Business Books of 2001 Award. It has been listed as a Bestseller by BusinessWeek, the Harvard Business School Press (2001, 2002, 2003, 2004), and several other sources. The book has also generated numerous speaking engagements (including many keynote addresses) from academic and professional organizations throughout the world.
The files at right capture some of the key concepts presented in The HR Scorecard.
Our books have been translated into multiple languages and are international best sellers.