Balanced Scorecard Strategies And Hr Metrics   Workshop Sept 13   Chicago, Il
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Balanced Scorecard Strategies And Hr Metrics Workshop Sept 13 Chicago, Il

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A brief overview of the Balanced Scorecard and Dashboard Management System for Human Resources

A brief overview of the Balanced Scorecard and Dashboard Management System for Human Resources

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  • Introduction of Rick and Chuck, talk briefly on the title of the workshop, and then turn it over to Rick, to do the Agenda[next slide]
  • RICKTalk to the workshop in May, what to expect:Specific application to HR Shared ServicesInteractive workshop, not just lecture. Attendees will be able to walk out with specific tools developed in draft, that they can then refine.So, Katherine, that is a brief overview of the Balanced Scorecard system for management, with some examples as to how it is being used today.KATHERINE ASKS A QUESTION HERE: What are the issues currently with HR and the Balanced Scorecard today?ANSWER: There is one important concern that has surfaced where Balanced Scorecards were deployed to support HR, specifically with respect to instances involving HR and applications of Balanced Scorecards that were used to conduct Annual performance appraisals. This is an incorrect application of the tool, and unfortunately, where this has happened, we see elevated sensitivities within the workforce regarding any type of scorecard after that, so there is no receptivity to doing it right at that point. We need to use the scorecard and dashboards to help us manage and optimized our business performance, rather than assessing individual performance. Thanks, Katherine, for the opportunity to talk with you and your audience today about the Balanced Scorecard. I would like to turn the reigns over to you at this point.[DONE]
  • RICKKey points:Financial metrics are important!! However, Financial management is not enoughFinancial measure performance is often the result of good process performance, coupled with a competent and capable workforce, meeting or exceeding customer expectations on a daily, weekly and monthly basis. The Balanced Scorecard provides a sound Business Management System, or also called a System for Management (SFM) within some circles…So, let’s look at these 4 ‘legs’ in great depth, and how they interact… [Next slide]
  • CHUCKKey points:The 4 legs interact, and so are co-dependant on each other for optimum overall organizational performance, to support this business management systems approach.Each Leg has distinct characteristics, which we will discuss in brief here, and go into more detail at the workshop.To see how this works, We follow a roadmap to developing your scorecard, so that all of the actions taken align with the business strategy, direction, and focus. Let’s take a look at this roadmap, and get a better understanding of what it take to deploy your scorecards successfully…. [Next Slide]
  • CHUCKKey Steps:Establish your Strategy Map. - Aligns your scorecard with key organizational strategic initiatives.2. Design the individual ‘Legs’ of your Balanced Scorecard. - Focus on each of the 4 aspects, and what you need to have in place to be effective. Design each ‘Leg’ with attention to the strategic, operational and tactical aspects needed, to maximize integration and collaboration throughout your organization.3. Develop Department ‘Dashboards’ for Real-Time Performance management and adjustment. - Dashboards are ‘Real-Time Indicators’ of what is going on, providing performance intelligence with which managers can make decisions.Use the Balanced Scorecard for continuous improvement of the business entity. - Create a competitive advantage through continually assessing and improving performance of each ‘Leg’ of the Balanced ScorecardSo, let’s take a look at the first step, that of creating your Strategy Map…[Next Slide]
  • RICKKey points:Critical first step to a Business Management System – need to get the direction and focus right! It is also required so that everyone can see what is required from a strategic perspective, so that they can develop their specific goals and actions accordingly.Go through the steps briefly.Cover the value added.Let’s look at an example, to get a better understanding of this connection…. [Next Slide]
  • RICKKey Points: DON’T READ VERBATIM!!!!This is a key table, that provides specific focus to each strategy, so that the organization can develop plans and metrics aligned to each ‘leg’ of the balanced scorecard.With this example, we see the top 3 strategies of the organization, and the focus to support them from each ‘Leg’ perspective. For Example, look at the business process focus to support growth, and then shareholder value…..notice the key items and what are the key drivers to support the strategies.Note also that we don’t force alignment, if it is not appropriate. For example, Financial Performance will directly impact Growth and Market Share, as well as Shareholder value, but will probably not influence how well regarded the company is as a Subject Matter Expert.KATHERINE ASKS A QUESTION AT THIS POINT: So, you have to understand the strategy of a business in order to develop the ‘balanced scorecard you would use to manage it?ANSWER: Yes, Katherine. Too often, groups launch into measuring their performance, focusing on what they track and manage, but don’t tie back to the overall strategic direction. This is vital, especially in today’s economy, where change is as fast as ever, and you have to have a fast and flexible way to see what changes are needed to stay ahead and retain your competitive advantage.4. So, let’s take a look at how this might work for a Shared Services entity. An important note in this regard is to remember that Shared Services is an evolving industry, with players at the initial, advanced and high performing levels. We will look at this in the next slide, to get a better understanding of how we can apply the balanced scorecard approach within this developing business model….. [Next Slide]
  • RICKKey point:This model helps us first determine where we are as a Shared Services entity, in terms of progressing levels of capability moving to higher levels of performance. This is very important, because where you are on this ‘ramp’ will influence the key strategic goals and direction for the organization, which is fundamental to establishing a sound strategy map.Note the different ‘stage’ descriptors: in the initial stages, Shared Services entities focus on each service provided and the quality aspects of how well it was done, in a standard way, with minimal variation and down time. In the advanced stages, they move to a more ‘systems’ approach, coupling similar/like services from a functional, geographic or client perspective, and also moving to a more complex system to enable greater flexibility for all involved. In the high performing stages, we see a more ‘holistic’ approach, implemented within a globally deployed, strategically focused capability.Once we know where you are in your deployment, we can then look at how to focus our resources and energy, based on the 4 ‘legs’ of our balanced scorecard, as depicted on the next slide…. [Next Slide]
  • CHUCKKey points:Definition: The Balanced Scorecard is the cornerstone of the system for management, enabling real-time performance measurement, and providing up-to-date intelligence about the organization and what to focus on. This provides the decision makers critical information necessary to make adjustments and retain competitive advantage.The methodology to develop your dashboard starts with determining key focus areas and measures from the strategy map and deciding what key actions we need to take and how to measure them. In this respect, we will develop our measures based on 3 types of actions: Strategic, Operational and Tactical. Let’s take a closer look at these three, and get a better understanding of what they mean….[Next Slide]
  • CHUCKNote: Talk to the connections between strategic, operational and tactical, as they relate to the specific metrics selected. Use the Pen to circle key areas as you discuss differences and interconnections.Also discuss the need to build in anticipated changes per health care changes recently, and to have a way to detect future changes early, so as to enable management to detect, understand and adjust in a timely way to remain competitive.Now, let’s look at an example of a Balanced Scorecard….[Next Slide]
  • CHUCKKey Points:This is an example of a balanced scorecard. Talk to the format, use the pen. First the 4 ‘legs, then the indicators, (also known as key performance indicators [KPI], critical performance indicators [CPI], …), measures, ….Touch on the indicators and measures, for each leg, but briefly… only have 1-2 minutes for this slide!KATHERINE ASKS A QUESTION AT THIS POINT: How would you see this working in an HR Shared Services Environment?ANSWER: Katherine, I could see dozens of applications within HR Shared Services, from assessing customer satisfaction with the services provided to process measurement on how fast, good, and cost effective different services were provided, to determining possible gaps in capability within the organization and developing critical training courses to close them. And, given Ricks model of ever increasing capability, we would see different goals and measures as the Shared Services groups evolved to higher levels as well, maybe adding measures to help optimize Excellence Center performance, highlight key skill needs, and enable breakthrough improvements to redesign and drastically reduce time and error rates.3. With the dashboard in place, our next step is to develop the Dashboards we would put in place, to enable visibility and management information in real-time. Let’s talk about what is a Dashboard, and how it might look with some examples…[Next Slide]
  • CHUCKKey Points:Dashboards provide the critical real-time visibility to the measures of the balanced scorecard at all levels. The steps surrounding the creation of a dashboard involve:First assessing the measures desired from the dashboard, Determine what you would want to see on an on-going basis, and thenDesign the dashboard, considering Key content, types of charts and graphs based on visual clarity, with some regard to format and keeping it simple. Finally, you put the dashboard into action, and adjust it/improve it through time.Discuss the value again, especially considering the real-time capability to see what it going on, and allows for real-time adjustment (hopefully avoiding rather than responding to issues, before they happen…)Let’s look at some examples, to illustrate dashboard design and integration…..[Next Slide]
  • CHUCKKey point: Here, we see, looking at the Director’s Dashboard, the layout, with 6-8 key measures being tracked.We also see the Linking between the executive, management and workgroup dashboards. This is important, to ensure vertical alignment with the key measures involved from the scorecard.Now, let’s look at another example, that shows a different way to use charts, color and ‘meters’…..[Next Slide]
  • CHUCKKey point:On this dashboard example, we see different types of charts, graphs and a ‘meter’ approach. This is particularly popular, and readily indicates if there is a problem with a key metric. Note also lots of color, and a sense of ‘balance’ on the page. Also, there are only 4 key areas, you want to have maybe no more than 10 or the dashboard gets cluttered.It is important to try to have key indicator flags to show immediately when something is not right (or better, when something is starting to waver, but is still ok… just needs some attention, adjustment, etc…)The next example is a little more complex, yet we can see how the whole operation works from the one page…..[Next Slide]
  • CHUCKKey Points:This is an example of a fairly complex dashboard, with all components. It seems complicated, yet when we look at it, we can see everything, and can assess the ‘health’ of how the business is doing based on the charts. It could use some key indicators, to help the viewer see where there might be some trouble spots, if possible….Use the pen, point out/circle key aspects of this dashboard, related to the 4 ‘legs’. For example, Revenue is financial, Flight data is operational process related, as is Top 10 Flights tracking, while Customers, and Flight disruptions are customer related.So, let’s wrap up, Rick. What can they expect from the Workshop?Hand off to Rick..[Next Slide]

Balanced Scorecard Strategies And Hr Metrics   Workshop Sept 13   Chicago, Il Balanced Scorecard Strategies And Hr Metrics Workshop Sept 13 Chicago, Il Presentation Transcript

  • Balanced Scorecard Strategies and HR Metrics
    Presented by
    Mr. Frederick S. ‘Rick Buchman
    Practitioner and Expert on Balanced Scorecard and Dashboard Applications, and
    Co-Author, Balanced Scorecard Strategy for Dummies, Wiley & Sons, Inc. Sept 2007
    September 13, 2010
    Chicago, IL
    9/13/2010
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
    1
  • Discussion of the Workshop
    9/13/2010
    For this Workshop
    Objectives of the course:
    Understand the fundamentals of the Balanced Scorecard and Dashboard approach within an HR framework, (specific to HR Metrics), and be able to:
    Develop a framework for your Strategy Map
    Devise the elements for each ‘Leg’ of your Balanced Scorecard
    Design your Dashboard Concept
    Conduct of the course:
    Some introductory lecture, mostly interactive, individual work
    Majority split into research time, collaborative, evaluative and presentation materials
    Total time – about 140 min.
    2
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • Overview and Definitions
    What is meant by the term “Balanced Scorecard?”
    • Traditional “Scorecards” are mostly Financial Based
    • Revenue, Margin, Profit, Cash Flow, Budget Compliance, …
    While these are very important to a company, they do not tell the whole story… and decisions based on these metrics may not work… (like wagging a dog…)
    • “Balanced Scorecards” look at the multiple dimensions of an organization, Primarily focusing on:
    • Customer Satisfaction and Focus
    • Financial Performance
    • Business Process Performance
    • Employee Knowledge, Skills and Competencies
    9/13/2010
    3
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • The Four ‘Legs’ of a Balanced Scorecard
    9/13/2010
    Business Process Performance
    Employee Knowledge, Skill and Competencies
    Per Delivery Plan
    First Time Right
    Exactly as Ordered
    Excellent Condition
    Cost Management
    Good ‘Handoffs’
    In-Process Checks & Great Quality
    First Time Right
    Customer Focus
    Product Understanding
    Process Understanding
    Business Knowhow
    Teamwork & Feedback
    Continuous Improvement
    On-Time Works Great!
    Great Price! Durable
    Customer Satisfaction
    and Focus
    Loyalty Selective
    Confident Responsive
    Financial Performance
    Revenue Profitable
    Margin Cost Management
    Competitive Advantage
    Market Share Business Growth Shareholder Value
    4
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    5
    Overview and Definitions
    Write down 4 general items related to each ‘Leg’, related to HR Metrics. Then, code each item as S, O, or T for Strategic, Operational or Tactical.
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    6
    Overview and Definitions
    Small Group Discussion
    • Small group discussion:
    • Get into groups of 5-6, sorted by Strategic, Operational or Tactical.
    • Focusing on the specific HR Metrics you are focusing on, discuss each ‘Leg’ and the items you have written down. Share your thoughts with the other members of your discussion group. [15 minutes]
    • Ask questions for clarification, understanding. No Judging.
    • Feel free to change, add, correct your notes, based on your discussion.
    • Be prepared to talk briefly about what your group talked about, and any key insights discovered during the discussion. [General group review and summary – 5 minutes]
    • Update your notes for the next step.
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • The 4 Steps to Implementing Balanced Scorecards
    9/13/2010
    1. Establish your
    Strategy Map
    Feed ‘Back’ Loops
    [Quality, Issues, Timing, Performance, …]
    2. Design the ‘Legs’ of
    Your Balanced Scorecard
    Feed ‘Forward’ Loops
    [Information, Orders,..]
    3. Develop Executive &
    Department ‘Dashboards’
    3. Develop Executive &
    Department ‘Dashboards’
    3. Develop Executive &
    Department ‘Dashboards’
    3. Develop Executive &
    Department ‘Dashboards’
    4. Continuously
    Improve
    Feed ‘Back’ Loops
    [Quality, Issues, Timing,
    Performance, …]
    Feed ‘Back’ Loops
    [Quality, Issues, Timing,
    Performance, …]
    7
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    8
    Step 1 –
    Mapping your Strategy
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • Strategy Mapping for a ‘Balanced Approach’
    • What is “Strategy Mapping?”
    • Maps the key organizational strategies to the ‘Legs’ of your scorecard
    • How is it done?
    Identify the top 3-4 organizational strategies
    Set up a Matrix to align to the 4 ‘Legs’ (Customer, Financial, Process, Competencies)
    Identify Key Alignments, Actions, and Metrics
    Link to and Design Department Dashboards for Real-Time Management and Adjustment
    • How does it add value?
    • Ensures Actions, Focus are aligned to Strategic Direction
    • Enables Real-Time Response and Adjustment to Changes
    9/13/2010
    9
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    10
    Strategy Mapping for a ‘Balanced Approach’
    • Key Concepts
    • There is an important difference between an Objective or Goal, and the Strategy to achieve it.
    • Objective or Goal: This is the desired ‘End State’ to be achieved by the organization. It can be a financial (Make $XX Million Net Profit), Market (Own XX% Market Share), or any other specific, measurable target.
    • Strategy: This is the method that the organization will employ, to achieve its objective or goal.
    Example: Objective: Achieve 15% increase in Market Share in 3 yrs.
    Strategy: Add new major clients, through: 1) Acquiring 3-5
    smaller competitors, 2) Converting 20 potential
    clients from competitor companies
    • KISS – “Keep It Simple Strategically ” – Strategy should be clear and explainable to anyone within 60 seconds or less.
    SM
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • HR – Current Processes and Practices alignment to Balanced Scorecard ‘Legs’ - Survey of 100 Medium to Large Companies
    9/13/2010
    11
    Current HR Processes and Practices are NOT well aligned in a ‘balanced’ way to meet
    the needs of the business, nor do we see a strong relationship toward customer
    Satisfaction, organizational goal achievement or overarching / long term strategies.
    Source: BBI Study, 2010
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • An Example of a Strategy Map
    9/13/2010
    A Company seeks to increase Market Share through Growth, providing added
    Value to customers through knowhow and performance, and increasing shareholder
    Value through improved Profitability and increased Margin performance
    12
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • HR – Metrics
    HR – Key Metrics Considerations:
    HR Capability Requirements of the Organization
    Technical skills, knowledge and competencies to design, produce, deliver, and support the products and services
    Other skills and capabilities necessary – leadership, project management, functional competencies (i.e. financial competency, systems thinking,…)
    HR Practice skills, knowledge and competencies – Career planning/ employee development, coaching/facilitating, problem solving, conflict management, Communication skills, …
    HR Processes & Systems
    Those processes which the HR department/group manages and executes to support the organization – staffing/hiring, resource planning, training and development,, compensation and benefits, performance appraisals, personnel data management, labor relations, succession planning, …
    9/13/2010
    13
    Source: The HR Scorecard – Linking People, Strategy and Performance, by Becker, Huselid and Ulrich, HBS Press, 2001
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    14
    Current Considerations – Some thoughts about what’s important
    Elements of a High Performing Organization
    - Leadership - Motivation / Alignment
    - Talent - Positive Work Environment
    Source: Understanding the Balanced Scorecard; An HR Perspective, by James Creeland, Copywrite HR.Com 2002
    Goal alignment – achieving definable Return on Investment (ROI)
    To effectively achieve ROI, you must link the training experience and utilization to the impact on the business, and allow for real-time adjustment…
    Source: The Human Resources Scorecard – Measuring the Return on Investment, by Phillips, Stone and Phillips, published by Butterworth-Heinemann, 2001
    5 ‘Core Principles to Effective “Talent Management”
    • People Equity Framework
    • Strategic Focus on Talent Management
    • Align your Talent Management Practice to Trends & World Environment
    • Measure Talent Manager per Business Performance
    • Talent Growth
    Source: Reinventing Talent Management: How to Maximize Performance in the New Marketplace, by William A. Schiemann, published 2009 by Wiley & Sons, Inc.
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    15
    Strategy Mapping
    Small Group Discussion
    • Small group discussion:
    • Get into groups of 5-6, sorted by Strategic, Operational or Tactical.
    • Discuss potential issues for Managing Human Resources and how best to measure success, relate to Strategy Mapping and the 4 ‘legs’ of the Balanced Scorecard. Discuss how they might be addressed. Share your thoughts with the other members of your discussion group. [15 minutes]
    • Ask questions for clarification, understanding. No Judging.
    • Feel free to change, add, correct your notes, based on your discussion.
    • Be prepared to talk briefly about what your group talked about, and any key insights discovered during the discussion. [General group review and summary – 5 minutes]
    • Update your notes for the next individual exercise.
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    16
    Strategy Mapping –– Select Level:
    Write down your Objectives/Goals,
    and specific Strategies:
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    17
    Step 2 –
    Designing your Balanced Scorecard –
    Defining and Aligning the 4 ‘Legs’
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • The Balanced Scorecard
    9/13/2010
    18
    • What is a “Balanced Scorecard?”
    • Business Multi-Discipline Tracking and Management Tool to help achieve and sustain desired performance levels , based on 4 ‘Legs’:
    Customer Focus Financial Performance
    Business Process Performance Employee Knowledge, Skills & Competence
    • How is it created?
    Determine the key focus areas and measures for each ‘Leg’, tied back to the strategic direction, from the Strategy Map
    Decide the Strategic, Operational and Tactical Actions to be tracked and measured for your group
    Design your Balanced Scorecard, get concurrence and deploy
    • How does it add value?
    • Ensures Actions, Focus are linked to key goals, and measured
    • Enables Real-Time Response and Adjustment to Changes
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    19
    Tying Strategic, Operational and Tactical to the 4 ‘Legs’
    VISION / STRATEGIES
    STRATEGIC LEVEL
    • TIMEFRAME: 3 TO 5 YEARS
    • ASSESSMENT
    • SELECTION
    • DEPLOYMENT
    • REVIEW: AT LEAST MONTHLY
    OPERATIONAL LEVEL
    • TIMEFRAME: 1 YEAR
    • ASSESSMENT
    • SELECTION
    • DEPLOYMENT
    • REVIEW: AT LEAST WEEKLY
    KNOWLEDGE & GROWTH
    FINANCIAL
    CUSTOMER
    SYSTEMS & PROCESSES
    TACTICAL LEVEL
    • TIMEFRAME: REAL TIME
    • ASSESSMENT
    • SELECTION
    • DEPLOYMENT
    • REVIEW: REAL TIME, DAILY, WEEKLY
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • Strategic, Operational and Tactical Focus – An Example
    9/13/2010
    20
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • Another Example of a Balanced Scorecard
    9/13/2010
    21
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    22
    Developing your Balanced Scorecard
    Small Group Discussion
    • Small group discussion:
    • Get into groups of 5-6, sorted by Strategic, Operational or Tactical.
    • Discuss different aspects for HR Shared Services and Outsourcing, relate to the 4 ‘legs’ of the Balanced Scorecard. Share your thoughts with the other members of your discussion group. [15 minutes]
    • Ask questions for clarification, understanding. No Judging.
    • Feel free to change, add, correct your notes, based on your discussion.
    • Be prepared to talk briefly about what your group talked about, and any key insights discovered during the discussion. [General group review and summary – 5 minutes]
    • Update your notes for the next individual exercise.
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    23
    Developing your Scorecard – Select Level:
    Enter your Key Performance Metrics (KPM) related to
    each ‘Leg’ of your Balanced Scorecard from Step 2:
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    24
    Defining the 4 ‘Legs’ of the Balanced Scorecard
    Enter your Strategies down the left side. Then, in each box, identify a specific initiative that will support achieving each strategy related to the specific ‘Leg’ of your scorecard.
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    IQPC HR SSO Summit, May 10, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Frederick S. ‘Rick Buchman
    25
    A Potential Risk with HR Metrics
    How good is your data?
    How can you know?
    How do you ensure your information is reliable?
    • Utilizing Measurement Systems Analysis (MSA)
    • Resource multiple sources – validation
    • Check often, always ask where the information came from, and what is the basis for any conclusions or decisions made
    • Use the ‘Smell Test’ – if it “smells or feels funny”, don’t just accept or act on it, check it out to be sure, especially if it is something different or particularly ‘interesting’.
    The criticality of the decisions that depend on this information demand reliability, which requires rigorous discipline in ensuring the highest levels of quality and accuracy.
  • 9/13/2010
    26
    Step 3 –
    Develop your Dashboards–
    Executive/Organization
    Department / Division
    Section / Workgroup
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • The Dashboard
    9/13/2010
    27
    • What is a “Dashboard?”
    • Visual Management Tool that provides Real-Time critical information on key business measures, to enable timely decisions, based on the 4 ‘legs of the Balanced Scorecard:
    Customer Focus Financial Performance
    Business Process Performance Employee Knowledge, Skills & Competence
    • How is it created?
    Assess your business operation/process, and determine what you would need to see on an on-going basis, in order to assess the ‘health’ of your operation/department, as related to each of the 4 ‘legs’
    Design your Dashboard to provide Real-Time, up to date intelligence on these measurements
    Install the Dashboard, test it, and improve on it, and make it part of your daily management system.
    • How does it add value?
    • Ensures Actions, Focus are continually aligned to key performance goals
    • Enables Real-Time Response and Adjustment to Changes
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    28
    Developing your Dashboard
    • Consider various ways to portray, arrange and display your visual and graphical indicators.
    • Important points:
    • Must clearly indicate when something requires attention
    • Should be simple
    • Easy to understand
    • Flow naturally
    • Use Color, different shades…
    • Updated in real time
    • Flexible to requirements changes
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • Example of Exec, Mgmt and Workgroup Dashboards
    9/13/2010
    A Real State Department of Human Services Finance set-up
    29
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • Dashboard Example – Ad Group
    9/13/2010
    LEGEND:
    Home page
    Dept Web Pages
    Key Points:
    • Lots of Color, Graphics, Charts, clearly labeled, and well understood by all.
    • Set up so that an executive or manager can look it over quickly, and should be able to spot something out of whack immediately.
    30
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • Example of a Dashboard for an Airline
    9/13/2010
    31
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
    32
    Strategy Mapping
    Small Group Exercise
    • Small group Exercise:
    • Get into groups of 5-6, sorted by Strategic, Operational or Tactical.
    • Imagine you are members of an HR Shared Services organization. As a group, on a Flip-Chart, lay out a Dashboard, considering everything we have discussed. Be sure to include aspects related to all 4 ‘Legs’ of the Balanced Scorecard, but specifically to your ‘level’ and how you would measure your organizational performance. [15 minutes]
    • Be prepared to talk briefly about what your group talked about, and any key insights discovered during the discussion. [General group review and summary – 10 minutes]
    • Update your notes for the final individual exercise.
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
  • 9/13/2010
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    Developing your Dashboard – Select Level:
    • List various visual and graphical ways to show current and updated status of your metrics, for each ‘Leg’, based on the metrics you chose for your Scorecard.
    • Suggestions:
    - Red, Yellow, Green Indicators - Gauges, Meters
    - Bar, Pie, Line, Radar Charts - Combinations
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
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    Developing your Dashboard – Select Level:
    • Layout your Dashboard:
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
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    Wrap up
    • What we covered today:
    • Understand the fundamentals of the Balanced Scorecard and Dashboard System for Management
    • Develop a Framework for Mapping your Strategy
    • Devise the Elements for each ‘Leg’ of your Balanced Scorecard
    • Design and layout a Dashboard for your particular level and management requirements
    • Where you can go to get more information:
    • Web
    • Books
    • Industry Examples
    • Other Resources
    • Remember…..
    • No ‘One’ answer for you, many different ways
    • Try something, and then adjust, but get it out there soon, and don’t be afraid to make changes and adjustments
    • Keep it Simple, Clear, Effective. Use the 20 second rule…
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman
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    - Your Presenter…Frederick S. ‘Rick Buchman
    Mr. Buchman has over 25 years hands-on international strategic, operational and organizational transformation experience, spanning multiple industries from missiles and electronics to medical devices. A certified Black Belt and Master Black Belt in Lean Six Sigma, He has been directing business improvement initiatives involving Strategy Planning, Lean and Six Sigma, Balanced Scorecard and Dashboard deployment, Operations, and Organizational optimization for over 20 years, both internally and as a contract consultant, supporting the automotive, electronics, semiconductor, oil & gas, electromechanical, medical device, commercial and components industries, and working with Engineering, Operations, R&D, Finance, HR and Legal divisions. Rick has also taught extensively at the graduate level for major institutions, including The ‘Eli Broad Graduate School of Management’ at MSU, and at Towson and George Mason Universities, in strategy planning, problem solving, business management, value stream mapping, balanced scorecard and dashboard strategies, coaching and team leadership. His clients have included AT&T, Raytheon Corp., Hughes, Texas Instruments, Ford Motor Company, Allied-Signal, ITT, Husky Oil, Slumberger, Gerdau, Remy, Dura GmbH, GKN, and several US State and Federal Government agencies. A retired 28 year US Army Officer, Mr. Buchman has a B.S. in Mathematics, an MBA in Business, and a PhD (ABD) in Business, and has been featured in International Who’s Who in Business, 2006, and recently presented at the HR Shared Services Summit earlier this year in May in Chicago.
    Rick recently co-authored the Amazon Productivity Best-seller Balanced Scorecard Strategy for Dummies, with Mr. Charles Hannabarger and Mr. Peter Economy, published by Wiley and Sons, Inc. in September 2007 (English Language), and again in March 2008 (Dutch Language) and September 2008 (German Language). This book was also just recently voted 5th out of the ‘Top 20 Must-Read Books’ by the Channel Insider Community, May 5, 2010, and #2 of Business Productivity books by Amazon, Sept. 6, 2010. Mr. Buchman currently resides in Louisville, KY.
    IQPC HR Metrics Summit, Sept 13, 2010 - Balanced Scorecard Strategies Workshop – Presenter: Rick Buchman