HR BSC

AJAX MANAGEMENT : 

AJAX MANAGEMENT

WHAT DO YOU THINK?? : 

WHAT DO YOU THINK?? “The Day you don’t face any problem/Challenges, Think and You will realize that your walking on the wrong path.”

Introduction : 

Introduction It was originated by Dr. Robert Kaplan (Harvard Business School) and Dr.David Norton in 1992 as a performance measurement platform that added strategic non-financial performance measures to traditional financial metrics to give managers a more 'balanced' view of organizational performance.

: 

Balanced Scorecards provide a framework for communicating strategy in operating terms (measurements and targets). You must communicate strategy in operating terms if you expect people to execute on your strategy. When people are asked about strategy, they reach for their balanced scorecard.

Why the Balanced Scorecard : 

Why the Balanced Scorecard Improves how you communicate strategy Superimposes a discipline whereby you capture cause-effect; otherwise you create pockets of under-performance. Also forces you to think about strategic measurement as opposed to tactical or operating type measurements

Background : 

Background Earlier we focused on Financial measures like: Return on Capital Operating Income Sales Growth Fund Flows Financial Statements Balance Sheet Ratios & Analysis

Background : 

Background But we did not lay any emphasis on Performance measures like: Customers Suppliers Employees Internal Process Learning & Growth

Advantages : 

Advantages Balance score card is a system by which we integrate financial measures of past performance and it introduces the driver of future performance ie Customers, Process, Human Resource.

Importance : 

Importance Gives Competitive Advantage to the Organization Improves Organizational Performance Performance is documented Increased Focus on Strategies and Results Aligns Organisational strategies with the work people do on a day to day basis Improves communication of the Organization Vision and Strategies

How Performance is Measured : 

How Performance is Measured Vision, Goals, Objectives and Strategies are signaled downwards from top to the bottom in the organisation. These signals should be clear and should have value. Users should understand the signal and sends it further down the organisation. The users should be involved in its development. Feedback and performance report should travel from bottom upwards to the top.

How Does it Works in HR : 

How Does it Works in HR Vision, Goals, Objective, Strategy Sharing Measurement System

Methodology : 

Methodology Clarify mission and vision statements Financial Sub Goals Develop Strategic goals Derive Sub Goals Maps Sub goals to each quadrants of the Balanced score card Mission Vision Strategic goals Sub goals Customer Sub Goals Internal Business Sub goals Learning & Growth Sub Goals

How to use Balanced score card : 

How to use Balanced score card Clarifying and Translating The Vision and Strategies Clarifying the vision Gaining consensus Strategic Feedback and Learning Articulating the shared vision Obtaining feedback Strategy review Communicating and linking Communicating and educating Setting goals Rewards for performance Planning and setting targets Setting targets Strategic initiative alignment Resource Allocation Establishing milestones Balance Scorecard

Framework : 

Framework

Four Perspectives : 

Four Perspectives Before we build strategic maps, we need to define four perspectives: Financial: Top layer in the map, represents financial outcomes (profits, revenues, etc.) Customer: Next layer down, enables financial results (service, image, price, quality, etc.) Internal Processes: The values added to customers, such as delivery, production, distribution, etc. Learning & Growth: The people, systems, and organization that enable processes.

Financial Perspective in HR : 

Financial Perspective in HR Strategic Objectives Objective:-Reduce HR related costs Reduce turnover Cost Reduce absenteeism Reduce workers compensation cost Engage staff to identify areas of opportunities. Measures Turnover rates Absence Rate Workers compensation rate Lost work day rate

Internal Perspective in HR : 

Internal Perspective in HR Strategic Objectives Objective: Improve employee satisfaction Continue efforts to brand the organization as the great place to work Effective Strategies within the organisation to improve satisfaction. Measures Employee Opinion Survey Turnover data Identify new process of growth and development of the organisation

Customer Perspective in HR : 

Customer Perspective in HR Strategic Objectives Objective: Improve Customer satisfaction Define Customer Service Validate customers expectations Enhance service standards Evaluate results from Survey Measures Customers satisfaction Retention of Customers Acquisition of new customers Profitability of the the organisation

Learning and Growth Perspective in HR : 

Learning and Growth Perspective in HR Strategic Objectives Objective: Improving HR personnel knowledge & skills in key areas Identify skills Measure gaps Develop learning tools and plans Develop training Programs Measures HR skills learning plan complete Courses conducted Validate HR competency level Enhancing IT and systems

Summary : 

Summary Balance scorecard is a tool which tells us the knowledge, skills and systems that employees will need (Learning & growth) to innovate build and adopt the right strategic capabilities and efficiencies (Internal process) that delivers desired value to the market (Customer) which will eventually lead to the accumulation of shareholder value (Financial)

Thank you : 

Thank you