The HR Scorecard: Linking People, Strategy, and Performance Review

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The HR Scorecard: Linking People, Strategy, and Performance ReviewAs a seasoned HR professional, I have spent the last decade looking for the "Holy Grail" of H.R. Metrics. My quest is not over after reading The HR Scorecard, but the book presented many helpful concepts and tools that we can use to measure the effectiveness of HR as a function, to measure R.O.I. on talent and talent initiatives, to measure the impact of HR on organizational performance, and as a basis for business case development of our deliverables.
Three well respected thought leaders in the HR field have conducted extensive research of more than 2500 companies to uncover a model for implementing HR strategy and measuring results. If fully employed HR will deliver results linked to higher functional and organizational performance.
To transform the structure of HR into a strategic function, HR leaders must:
1.Clearly define the business strategy.
2.Build a business case for HR as a strategic asset.
3.Create a strategy map (with leading and lagging indicators, and tangibles and intangibles.)
4.Identify HR Deliverables within the strategy map.
5.Align the HR architecture with HR deliverables.
6.Design the strategic measurement System.
7.Implement management by measurement.
The concepts in this book are useful but may not be practical for all HR leaders. This book is for organizations that have the resources to implement an in-depth system of measuring their HR performance. It is not a way to create a simple snapshot to be included in business reviews. While the authors suggest using no more than 25 measures so as not to create a burdensome systems, many of the examples in the book are quite complex and can by used only by the largest of organizations. It is also difficult to pick just a few efficiency measures and performance drivers from the comprehesive list prepared by the authors.
Real life examples of scorecards are shown from organizations such as Verizon/GTE, General Mills, and General Electric. While these examples can help any size HR department think through how to measure the performance of their function, I would like to see a smaller organization profiled with more simple measures.
This book should be in the library of all serious HR practitioners. It is well written, well researched, and well presented. If the tools and concepts are implemented, the HR function can rise to a new level. For those in smaller organizations, a few HR efficiency measures can be gleaned to build a simpler scorecard based on the key HR deliverables for the enterprise.The HR Scorecard: Linking People, Strategy, and Performance Overview

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The HR Value Proposition Review

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The HR Value Proposition ReviewThe authors' formulations in The HR Value Proposition draw on their 18-year study, which involved more than 29,000 HR professionals and line managers worldwide. On the basis of this study, they have come out with value-focused criteria for HR department, which suggests actions that HR must take to achieve them. The criteria range from monitoring external business realities to creating a clear connection between HR actions and stakeholders' value.
The book's prescriptions are meant for HR professionals as well as line managers, even as it highlights the path that HR must take to earn its position in the organization. It also seeks to provide a justification as to why a company should invest in HR--a question that CFOs (Chief Finance Officers) frequently ask about the HR function.
The book has argued that for creating value for the business, it has to know what value is." This in turn necessitates understanding the external business environment. The external context impacts business realities, including realities of technology, regulatory issues, and workforce demographics.

The book no doubt gives important insights into the changing roles of HR in the 21st century, and differentiates them from those performed by HR managers a decade ago. It has succeeded in building a useful framework for aligning human resource strategy with organizational strategy so that it enables the organization to efficaciously march towards its vision. It should be read not just by HR managers but by all line managers, who are key HR managers in today's context, so that they can help in organizational capacity-building and performance excellence. The book has outlined a strategic HR agenda in a comprehensive yet lucid way. The roadmap outlined is clear and helpful for different types of readers. It contains many intriguing ideas worth experimenting by practitioners of people management, and well succeeds in outlining the practices and competencies that make a difference in leveraging people potential for realizing organizational goals. The immense experience of the two eminent authors who have built tremendous credibility for themselves for academics as well as practitioners is amply reflected in the structuring of the book. So far as HR literature for managers in concerned, it is going to be a classic and will become a dominant HR book in the next five to ten years.

Debi S. Saini
Professor of Human Resource Management
Management Development Institute
Mehrauli Road, Sukhrali,
Gurgaon-1220 001, Haryana.The HR Value Proposition Overview

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Competitive Strategy: Techniques for Analyzing Industries and Competitors Review

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Competitive Strategy: Techniques for Analyzing Industries and Competitors ReviewMichael E. Porter is a professor at Harvard Business School and a leading authority on Strategy and Competitiveness. He did his MBA and Ph.D from Harvard. He has served as an advisor to several business and government organizations. He was also a founder of the strategy and management consulting firm, Monitor Group.
Professor Porter is best known for his landmark books that defined the field of Strategy - Competitive Strategy: Techniques for Analyzing Industries and Competitors (1980) and Competitive Advantage: Creating and Sustaining Superior Performance (1985). These books are must reads at the leading business schools.
I read Competitive Strategy (1980) for a Strategy course. It starts with a bang. On the very second page of the first chapter you will find the figure for the famous Five Forces Driving Industry Competition. While Porter did not intend this framework to be used for case interviews, in reality, this is a very important framework to know for the case interviews conducted by leading strategy and management consultancy firms. All top MBAs and anybody who has ever been hired by the best strategy and management consultancy firms knows this framework, and has probably read this book. The first chapter immediately proceeds to explaining each of the five forces:
1. Threat of new entrants
2. Intensity of rivalry among existing competitors
3. Pressure from substitute products
4. Bargaining power of buyers
5. Bargaining power of suppliers
While the first chapter alone is worth the cost of this book, I recommend it for the wisdom contained in the rest of the book. The chapters are organized under three parts (General Analytical Techniques, Generic Industry Environments, and Strategic Decisions). There are several thought provoking discussions on concepts such as A Framework for Competitor Analysis (Future goals, Assumptions, Current strategy, Capabilities), Market Signals and a Strategic Analysis of Vertical Integration.
This book is the single most important book on business strategy. It is a classic - like the management classics of Peter Drucker. As with every classic, the examples are old (not to be confused with outdated). But, the competition HP faced for electronic calculators in the 70s, it still faces for computers today. There have been several changes in the players, technology, industries, globalization, etc, but the foundation built by Porter's masterpieces are still relevant today.
Porter's second book Competitive Advantage (1985) introduced another important tool - The Value Chain. This analyzes primary activities (Inbound logistics, Operations, Outbound logistics, Marketing and Sales, Services) and support activities (Procurement, Technology development, Human resource management, Firm infrastructure) that firms must analyze to create value and competitive advantage.
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Business Process Improvement: The Breakthrough Strategy for Total Quality, Productivity, and Competitiveness Review

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Business Process Improvement: The Breakthrough Strategy for Total Quality, Productivity, and Competitiveness ReviewThis book is a great investement. This book explains much more than Business Process Improvement, it also breaks down the sub categories of Quality management into easy to digest pieces. Harrington makes the complex/theoretical Quality "mechanics" easy to understand. He explains today's business trends which can help any business become more productive.
Manufacturing Industries have been using these Quality techniques for years and Harrington helps any business adopt these "tried & true" measures. I recommend this book to anyone who is in the Quality field, or for anyone who is embarking in TQM.Business Process Improvement: The Breakthrough Strategy for Total Quality, Productivity, and Competitiveness Overview

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