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World-Class HR: The New Measurement Agenda

Published by: Business Intelligence

Published: May. 1, 2005 - 182 Pages


Table of Contents


Chapter 1: Introduction

Redefining HR Strategy: Survey Findings

Measuring HR Value: Confidence and Demonstrability

Measuring HR Value: the Intangible made Tangible

Measuring HR Value: the Human Dimension of Business


Accounting for human capital: first attempts

The balanced scorecard approach to human capital

Measuring people’s contribution: The Human Capital Monitor


Measuring HR Value: Four Key Truths


Truth No 1: having a measure capable of being linked to essential corporate goals does not mean you are using it in that way

Truth No 2: casual links are never self-evident - they have to be proved (and re-proved)

Truth No 3: Validity is only achieved if the metric succeeds in capturing what it is supposed to

Truth No 4: The right data is useless if it is not acted on


Conclusion: Linking Measurement to Change


Case Study: Novo Nordisk




Chapter 2: Measuring Human Capital

Tailored or Benchmarked?

Big Picture or Small Picture?

Tangible or Intangible?

Conclusion: Alignment or Projection?

Action Points


Case Study: Reuters




Chapter 3: Measuring Commitment

Measuring Commitment: The Lessons from Tracking M&As

Conclusion: Tracking Changing Goalposts

Action Points


Case Study: Deutsche Bank




Chapter 4: Measuring Engagement

Measuring Engagement: Ongoing assessment


Case Report: Royal Bank of Scotland


Case Report: Reuters


Measuring Engagement: Specific Initiatives


Case Report: British Airways


Case Report: The Children’s Mutual


Case Study: Central Norfolk Health and Social Care Economy




Chapter 5: Measuring Innovation

The Creative Class Index

The Strategic Competencies Approach

The Cultural Assessment Approach

The Importance of Cross-correlated Indicators


Case Report: Measuring and assessing ‘freedom to fail’

Case Study: Nortel




Chapter 6: Measuring Strategic Capabilities

Measuring Strategic Capabilities: The Ulrich/Smallwood Model


Case Report: InterContinental Hotels Group


Conclusion: Alignment and the Role of the Balanced Scorecard


Case Study: Yorkshire Water Services




Chapter 7: Reporting and Benchmarking Human Capital

Attempts to Quantify Value

Establishing the Right Framework

Conclusion: More than a Collection of Indicators

Action Points


Case Study: Allied Irish Bank




Chapter 8: Developing Strategic HR Measurement Capability

The Mercer/CIPD Framework

A Training Needs Assessment


Setting human capital management in context

Getting started: gathering and collating the data

Tools and methodologies

Reporting the data


Conclusion: Towards a Dedicated Human Capital Model


Case Study: Royal Bank of Scotland




Chapter 9: Executive Summary

The Pathway to Strategic HR Measurement Excellence


Gathering the data

Collating the data

Choosing the tools and techniques

Training HR staff

Integration into the operational and finance review cycle

Internal reporting

External reporting

Towards a dedicated human capital model


Abstract

Practical advice on developing strategic HR measures

HR Directors are under unprecedented pressure to demonstrate the value of HR to the business. Senior managers, along with other stakeholders inside and outside the organization, are looking for hard evidence of HR’s contribution to business development and performance.

The new HR measurement agenda is being driven by a number of groups:
  • Senior managers looking for a demonstration of HR's bottom line contribution.
  • Government and regulatory bodies calling for companies to report on human capital and people performance issues
  • Investors, analysts, partners and other stakeholders who want greater understanding of HR’s impact on the business.
  • Not least, those HR Directors who want to be accepted as equal partners by the business and know how vital it is to demonstrate incontrovertibly that HR is essential to the achievement of business goals.
For all these reasons, there is a new strategic HR measurement agenda in the making.

World-Class HR: the new measurement agenda combines the experience of innovative companies with emerging best-practice principles to show you how to build indicators and measurement programme that supports the development of a world-class HR capability.

With this management report find out how to:
  • Improve the visibility of HR’s business value
  • Define actionable HR measures
  • Assess the value of your organization’s human capital
  • Use the balanced scorecard to align HR measures with corporate goals
  • Link intangible measures to bottom-line performance
  • Use measures as a catalyst for performance improvement
  • Develop effective benchmarking and reporting


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