...causes challenges for hospital executives to align the organizational strategies and main principles with performance measurement and management indicators within all areas of service. The balanced scorecard (BSC) is an option for hospitals to measure not only a company’s financial performance but how the company is satisfying its customers and employees. The BSC is designed to manage strategy not tactics (Kocakulah 2007). As of the year 2000, only about 70 of the country’s 6,000 hospitals were using the BSC method. Part of the reason for lag in adoption is hospitals have always used nonfinancial statistics and believed that they were using measures similar to a BSC already. Unfortunately, this is not the case in terms of effectiveness ( ). How to implement an effective BSC is the most important question. The single most critical condition in implementing a BSC is the involvement and ownership of the executive team. The approach is usually top-down. A top level BSC is created for the board of trustees, and then is cascaded down the organization to the department level. This is done with a team-based collaborative approach that consists of an “organizational change expert” as the leader (Kacakulah 2007). This “organizational change expert” should be the head of human resources. A HR manager is best suited for this role in many ways in which will be discussed later ( ). In the case study of Peer Memorial Hospital, Harber (1998) explains that a combination of financial...
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...Executive Summary Verizon Communications, Inc Implementation of HR balanced Scorecard Overview In 1996, J. Randall MacDonald, Executive Vice President of Human Resources at the GTE Corporation was facing the challenge to create an HR strategy supporting GTE's workforce through a major business transformation. Moreover Charles R. Lee, GTE's CEO wanted to know what the company was actually getting back for the money spent on various HR related activities. The main problems for GTE and other American based telecommunication companies were high employee and customer turnover rates and the declining quality of customer service. A tight labor market made it difficult to find qualified people. There was no system in place at GTE to measure employee's performance and MacDonald realized that a quantitative model was needed, showing whether the HR department's activities contributed to the company's financial goals. Balanced Scorecard, a conceptual framework to measure a company's performance, utilizing financial and non-financial measures was selected as a method to quantify "intangible realities" at GTE. Case Details In February 1996 the U.S. Congress passed the Telecommunications Act of 1996. Recognizing the enormous changes that had been occurring in communications technologies and markets, the Telecommunications Act deregulated much of the telecommunications industry. It aimed to get telephone, cable, and Internet companies to compete...
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...Benchmarking in HR/ HR Balanced Scorecard /SEM SAP AG HCM EMEA - public - Agenda Benchmarking Balanced Scorecard © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 2 Agenda Benchmarking Balanced Scorecard © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 3 Benchmarking – Definition Benchmarking is the comparison of similar processes across organizations, companies and industries to identify best practices and develop improvement plans and actions (Score Research) [ Learn from the best by enterprise comparison!!! ] [ Learn from each other by enterprise comparison!!! ] © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 4 Integration with Benchmark Provider: Data Flow Payroll Benchmark Provider SEM Measure Catalog (HR Measures) Administration 0100010101 1011001010 1101001010 1010100011 1010100101 1011010101 1001010101 XML Time Management HR Benchmarks Business Content Benchmarks from Provider 0100010101 1011001010 1101001010 1010100011 1010100101 1011010101 1001010101 XML Developments BW Rel. 3.0 HR InfoCube for external Benchmarking © SAP AG 2002, The HR Balanced Scorecard, Dr. Martina Schuh, Page 5 Measures: Data Flow SAP SEM Objective/Measure Actual Plan B.mark Develop key skills Strategic skills available 17 26 25,5 Employee retention 73 70 68 Improve corporate culture Employee satisfaction 9,1 8,5 9,0 Measure Builder Measure definition Balanced Scorecard MEASURES are defined from a purely business point...
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...CASE MEMO VERIZON COMMUNICATIONS INC: IMPLEMENTING A BALANCED SCORECARD By : Pallabi Roy (35) Pranjal Yadav (37) Rudra Prasad Banerjee (43) Sherin S Mathews (49) Sohini Banerjee (52) Srijan Sinha (53) Supratim Datta (55) By : Pallabi Roy (35) Pranjal Yadav (37) Rudra Prasad Banerjee (43) Sherin S Mathews (49) Sohini Banerjee (52) Srijan Sinha (53) Supratim Datta (55) CASE SUMMARY Company profile: Verizon is a global leader in delivering innovation in communications, information and entertainment. It has close to 90.0 million customers. 130 million customer connections (wireless, wireline, broadband and TV) are served every day by them. It has its headquarters in New York City and Operations Center in Basking Ridge, N.J. Its key products and services are: * Wireline voice and data services * Wireless services * Publishing of print and electronic directories Company Evolution: Originally, before the passage of the Act, Bell Atlantic, NYNEX, and other “baby bell” companies were formed. Then in 1996, Congress passed the Telecommunications Act which aimed at deregulation in the telecommunications industry. The total value of mergers and acquisitions had increased considerably after the passage of the act. Soon after this, Bell Atlantic / GTE merger was announced. The entity thus created was named as Verizon. Verizon had more than $22 billion in cash flow. * It had $6 billion revenues and 260,000 employees * It was the largest...
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....CHAPTER 10 Coolbrook Company has the following information available for the past year: | | River Division | Stream Division | Sales revenue | $ | 1,200,000 | $ | 1,800,000 | Cost of goods sold and operating expenses | | 900,000 | | 1,300,000 | | | | | | Net operating income | $ | 300,000 | $ | 500,000 | | | | | | Average invested assets | $ | 1,200,000 | $ | 1,800,000 | | The company’s hurdle rate is 6 percent. | | Required: | 1. | Calculate return on investment (ROI) and residual income for each division for last year. (Do not round your intermediate calculations. Round "ROI" answers to 1 decimal place.) | River Division | Stream Division | ROI | +/-1%25.0 | % | +/-1%27.8 | % | Residual Income | $228,000 | | $392,000 | | | | | | | 2. | Recalculate ROI and residual income for each division for each independent situation that follows: | a. | Operating income increases by 10 percent. (Do not round your intermediate calculations. Round "ROI" answers to 2 decimal places.) | | | | | River Division | Stream Division | ROI | +/-1%27.50 | % | +/-1%30.56 | % | Residual Income | $258,000 | | $442,000 | | | b. | Operating income decreases by 10 percent. (Do not round your intermediate calculations. Round "ROI" answers to 1 decimal place.) | | River Division | Stream Division | ROI | +/-1%22.5 | % | +/-1%25...
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...indicators (KPIs) in human resources (HR). The article provides an overview of how HR activities are supported in order to reach the partial goals of HR as defined in the strategic map. Overall the aim of the paper is to show the possibilities of using the modern Balanced Scorecard method in human capital. Key words: key performance indicators, entrepreneurial sector, HR scorecard, performance, Balanced Scorecard 1. INTRODUCTION Many companies have implemented tools for measuring their performance in order to stay in business and come in contact with tough competition. Organizations must face not only to more demanding conditions but in the current period to the world financial crisis as well. Due to these reasons, the organizations are forced to measure performance of the organization and contribute to the stability of the organization in today´s competitive environment. Organizations try to measure performance according to the financial drivers but in the recent period top leaders attempted to find new performance indicators which would take the “wind from sail” to their rivals in the market. One of these competitive advantages is human capital. As the Tootell et al. (2009) stated “since 1980s there has been an increasing emphasis on the importance of HR measurement.” Yeung and Berman (1997) declared that “HR measures should be impact rather than activity orientated, forward looking than backward looking, and should focus on the entire HR system not just on individual practices...
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...A Dissertation Report On “Putting HR on Balanced Scorecard” (A Case Study of Verizon) (SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT) (Approved by AICTE, Govt. of India) ACADEMIC SESSION (2008-10) Under the guidance of: Submitted by: Supervisor Name Your Name Lecturer (college name) Roll: - PGDM-08/012 College Address PREFACE There is a famous saying “The theory without practical is lame and practical without theory is blind.” Alignment of the Human Resource with the overall strategy of the company is a very big and toughest challenge for the company. Human resource is an important part of any business and managing them is an important task. Our institution has come forward with the opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospective managers. To the emphasis on practical aspect of management education the faculty of College Name has with a modern system of practical training of repute and following management technique to the student as integral part of PGDM. ACKNOWLEDGEMENT “It is not possible to prepare a project report without the assistance & encouragement of other people. This one is certainly no exception.” On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards all the personages...
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...Harvard College Align employees to the strategy: Four HR processes 1. Create Strategic Awareness Communicate Communicate Communicate 2. Align Personal Goals Personal Scorecard Make Strategy Everyone’s Job 3. Provide Necessary Skills Strategic Job Families Strategic Readiness 4. Align Personal Incentives Variable pay Team based You need a formal process to improve workforce readiness. Strategy should be linked to existing HR programs for performance management. How do we align employees to the strategy? 1. Create Strategic Awareness Communicate Communicate Communicate 2. Align Personal Goals Personal Scorecard Make Strategy Everyone’s Job 3. Provide Necessary Skills Strategic Job Families Strategic Readiness 4. Align Personal Incentives Variable pay Team based Communicate “seven times seven different ways” to make strategy everyone’s job Personal relevance brings the strategy to life Sustained communication uses different channels to get the message across • Leadership meetings • CEO random visits to employees • Dear Colleague Quarterly Letter in Mellon News • Learning lunches & informal discussions • Intranet • Working groups facilitated by HR • Staff briefings Source: Presented by Jack Klinck, Vice Chairman, Mellon Europe at BSCol European Summit, June 2005 4 VW do Brasil CEO demonstrates commitment to using the strategy map and scorecard as his strategy management system Mr. Thomas Schmall...
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...goals • Scorecard: has measures of key indicators that focuses managers’ and employees’ attention on what is important to the organization organization • Reminder – objective is to: • Measure progress • Pinpoint weaknesses • Discover and address gaps The Importance of Evaluating HRM • Many people dislike the HR department and see it as a cost that adds no value. • HR department treated as an operational unit and is subject to questions about its contribution to organizational performance. • HR managers must “add value” show contribution and value of HR activities in the numbers and language of business, to decrease HR’s vulnerability to destructive proposals. “Make a difference” or be abolished! Slow Growth in HR Measurement • Some HR managers resist measuring their work because outcomes such as employee attitudes or managerial productivity are impossible to calibrate meaningfully. If you can’t measure, then you can’t manage or improve! • Measurement is fueled by: 1. Business improvement efforts 2. Positioning HR as a strategic partner 3. The need for objective indicators of success Sarbanes-Oxley – A Case for HR Measurement • US legislation that affects Canadian companies operating in the US • Provides another reason to measure HR performance. • Under the legislation, disclosure requirements include: requirements include: • Executive compensation • Pension plans • Whistleblower protection - These requirements bring about pressure for measuring HR Reasons...
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...(Kavanagh & Thite, 2009). There will continue to be a lack of support if Jan is unable to increase the company’s revenue and return on investment. Another key business issue is board members demanding that Jan seek ways to decrease employee cost before approving any future plans. Employee cost consists of things such as recruiting cost, income, training, and benefits. As a result, Jan is forced to choose between HR Vice-President John Nosmas practices or the board, both who affect her maneuvering power for future plans. John Nosmas defends his practice of paying higher wages along with providing expensive benefit programs because he believes in hiring the best employees. He feels that these practices help with recruitment and retention. Lastly, as CEO Jan is faced with the growing concerns over working conditions in their foreign facilities which are being targeted by activists accusing the company of inhumane working conditions. The key issues discussed are challenges that must be overcome if Jan hopes to become the leader in RFID products. Calleeta’s HR operations greatly contributed to the company’s...
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...indicators (KPIs) in human resources (HR). The article provides an overview of how HR activities are supported in order to reach the partial goals of HR as defined in the strategic map. Overall the aim of the paper is to show the possibilities of using the modern Balanced Scorecard method in human capital. Key words: key performance indicators, entrepreneurial sector, HR scorecard, performance, Balanced Scorecard 1. INTRODUCTION Many companies have implemented tools for measuring their performance in order to stay in business and come in contact with tough competition. Organizations must face not only to more demanding conditions but in the current period to the world financial crisis as well. Due to these reasons, the organizations are forced to measure performance of the organization and contribute to the stability of the organization in today´s competitive environment. Organizations try to measure performance according to the financial drivers but in the recent period top leaders attempted to find new performance indicators which would take the “wind from sail” to their rivals in the market. One of these competitive advantages is human capital. As the Tootell et al. (2009) stated “since 1980s there has been an increasing emphasis on the importance of HR measurement.” Yeung and Berman (1997) declared that “HR measures should be impact rather than activity orientated, forward looking than backward looking, and should focus on the entire HR system not just on individual...
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...Leading Change for Strategy Execution Dr. Robert S. Kaplan Baker Foundation Professor, Harvard Business School Executing strategy: Senior executives’ #1 issue The Balanced Scorecard: The Central Component in a New Strategy Execution Management System Private Sector Organizations Financial Perspective "If we succeed, how will we look to our shareholders?” Customer Perspective "To achieve our vision, how must we look to our customers?” Process Perspective "To satisfy our customers and shareholders, at which processes must we excel?” Non Profit and Public Sector Organizations Mission (Customer) Perspective “How do we have a social impact with our citizens/constituents?” Support Perspective “How do we attract resources and authorization for our mission?” Process “To have a social impact and to attract resources and support, at which processes must we excel?” Learning & Growth “How do we align our intangible assets to improve critical processes?” Learning & Growth “How do we align our intangible assets to improve critical processes?” Financial “How should we manage and allocate our resources for maximum social impact?” 3 Palladium Balanced Scorecard Hall of Fame for Executing Strategy® : By Industry 2000-2010 The Management System for Strategy Execution Links Vision and Strategy to Operational Excellence 2 TRANSLATE THE STRATEGY DEVELOP THE STRATEGY • Mission, Values, Vision • Strategic Analysis • Strategy Formulation 1 • • • • Strategy...
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...HR 485: Strategic Human Resource Management Unit 7 Project March 14, 2012 Learning Journal For this assignment I will be expressing my thoughts about issues, concepts, and events from the reading and classroom discussions in this class. I will address what I have learned and how I will be applying this knowledge to my job. Some of the specific points I found interesting in this course are understanding what the purpose of HR business strategy is, learning what a high-value organization is, the components of an HR business strategy, learning about the HR business strategy matrix, learning what an HR business strategy looks and feels like, human systems and organizational culture, understanding the HR maturity scale, learning about teamwork, employee value, appreciation, and value measures and management tools. Human resource strategies are designed to ensure that small businesses have the staff they need to meet customer demand. Considerations that impact human resource strategy include both internal and external environmental changes, such as anticipated turnover, the need for new types of skills and experience, growth or expansion into a new market, changing economic pressure and competitive pressures. At the highest level, the objectives of a human resource strategy will require businesses to consider two key things: the type of staff needed to manage and run the business to meet stated business objectives, and the pay/benefits and other programs necessary to attract...
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...The Current Situation at Alto Company. The performance management system (PMS) is still a work in progress: Performance metrics need to be assigned for each job and linked to the position agreement in the job description. Then, employees will be able to self-monitor performance on their own dashboard displaying their contribution (Cokins, 2010), which is linked to their job evaluation. Before the PMS is finalized the following considerations are offered, followed by a plan to implement a holistic performance learning system that incorporates the considerations. Focus on Management Not Measurement. The PMS shares common data, allowing for transparency, and because metrics cascade from one dashboard to another, the system reveals the interdependency between departments and individual users. The PMS tracks an individual’s performance, based on the individual’s key performance indicators (KPI’s), but as the metrics cascade, performance requires inter-departmental participation and team work making this an effective way to leverage the firm’s intellectual capital (Bose & Thomas, 2007). However, empowering employees necessitates a redesign of the management model to one utilizing a leadership style of management that fosters inter-departmental teamwork in which members are encouraged to think for themselves to produce the best results for the company. Managers must transcend their traditional roles to become stewards of a performance-oriented culture by providing training...
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...What are Capital Metrics? A Review of Human Capital Metrics Human Resource Metrics has become crucial for Balanced Scorecards and other performance measurement systems. This is a result of the need for effective management over human resource capital. Senior management often fails to comprehend the value of human resources within the organization. Thus, there is too often little emphasis on human resource management within a balanced scorecard. As a result, it is essential to demonstrate the value of human resource capital to executive management. Human Capital Metrics represent the activities a company engages in to fully access the value of their employees. All companies have employees, from CEO’s to receptionists; knowing how well each employee does his or her job is critical to remaining competitive. A scorecard measures financial, business, workforce, and customer tasks completed by employees. These individual metrics allow a company to cumulatively put information together on each employee. The holistic perspective of each activity on the human capital scorecard typically starts singularly and is reviewed all together once it is complete. The first step for human resource management to make is to understand value-based and financial metrics. Once there is an understanding of value, then a company can move into developing a set of metrics that recognizes the relationship between human resources and finance. The primary focus in human Capital Metrics is...
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