Since the primary focus of HR’s strategic role is value creation, thinking about HR architecture means taking broad view of HR’s value chain. Just as a corporate scorecard contains both leading and lagging indicators, the HR Scorecard must so the same. Of the four HR architecture elements that we recommend including in the Scorecard- High Performance Work System, HR system alignment, HR efficiency, and HR deliverables- the first two are leading indicators and the second two are lagging indicators of HR performance.
The following illustration gives you a basic idea of how Hi-Tech’s R%D HR Scorecard might look. Of course, an HR Scorecard for the entire company would include many more entries. This diagram represents a concise but comprehensive measurement system that will both guide HR strategic decision making and assess HR’s contribution to R&D’s performance. More important, the scorecard is represented in such way that it reinforces the “casual logic” or strategy map of how HR creates value at Hi-Tech.
HR Scorecard for HI-tech’s R&D Function
|HIGH PERFORMANCE | |HR SYSTEM | |HR DELIVERABLES |
|WORK SYSTEM | |ALIGNMENT | | |
|* Extent to which a | | In R&D | |* Percentage of empl- |
|validated competency | |* Percentage of | |oyees who have the |
|model serves as the basis | |selection decisions | |requisite technical |
|for hiring, developing, | |based on compete- | |competencies. |
|managing and rewarding | |ncy model. | |*