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The Most Important
Organizational Performance Metrics:
What Every HR Organization Should Be Measuring…
Results Training Co...
Today’s Itinerary
Today’s Purpose
What Value Does
Your HR
Operation Bring?
What Is Wrong w/
HR?
Holistic &
Strategic
Appro...
T
Why Are You Here?
3
Why Are We Here?
Major Goals:
To improve HR and Human Capital by
way of measurement.
Elevate the Strategic level of HR.
...
The Beneficial Journey of HR Metrics..
5
Measurement
Transparency
Navigation and Direction
Informed Decision- Making
Perfo...
6
7
What Value Does Your HR Operation Bring?
Do You Motivate Great Performance?
Do You Increase the ROI?
Do you Keep Star Em...
8
How Do You Know?
HR is considered
one of the
least strategic
departments in
organizations…
9
Why is the
missing link
of
HR
missing?
770.367.5444 www.resultstrainingcompany.com
10
Where’s the Beef?
11
Your Data is Your Compass…
You must have it to Know Your Location.
Lack of data
=
lack of ability
to ...
The First Step is Holistic Scanning…
People
Technology
Processes
Financial Resources
Customer
Structure
Competitive...
What Are the Causes and Effects?
13
770.367.5444 www.resultstrainingcompany.com
Human
Resources
Programs
Individual Perfor...
HR Strategy Should
Directly Support the Corporate Strategy…
14
VISION
MISSION
GOALS
HR OBJECTIVES
CORPORATE
H
R
770.367.5444 www.resultstrainingcompany.com
15
S.M.A.R.T.
16
SPECIFIC
MEASURABLE
ATTAINABLE
RELEVANT
TIME- BOUND
Build a Balanced Scorecard
that clearly reflects the performance level.
17
Good
Risky
Low
METRICS
• Numbers
• Information
• Tools
• Current Performance
• State of Condition
ANALYTICS
• Meaning
• Comprehension
• A...
The Importance of Benchmarking
19
770.367.5444 www.resultstrainingcompany.com
Know Your Competitors and Counterparts
Compe...
20
21
The Dollar Value of the Increased Workforce Productivity
between This Year and Last Year…
Organization Revenue (2010)
HR /...
Employee Engagement
The % of employees who feel
that their managers exercise
expected management
behaviors
23
770.367.5444...
Quality of Hire
For example:
P+R
2 (N)
P = Average job performance rating of new hires
R = % of new hires retained after o...
Diversity
The % of diversity hires
in
managerial and senior
positions
25
770.367.5444 www.resultstrainingcompany.com
For E...
The Turnover Rate of “Star” Employees
% of employees to exit over past year
Number of employees in total organization
Star...
Succession Planning
% of critical positions
with
immediately identifiable
replacements
27
770.367.5444 www.resultstraining...
Incentive Compensation Differential
Monetary incentives to high performers-
Monetary incentives to low performers
Monetary...
Staffing & Learning
% of goals on
Development Plan that
were completed on time
29
770.367.5444 www.resultstrainingcompany....
Staffing & Learning
% of Performance Appraisals
completed on time
30
770.367.5444 www.resultstrainingcompany.com
Training ROI
31
770.367.5444 www.resultstrainingcompany.com
Increased Revenue (Benefits) - Training Costs
Training Costs
E...
Time To Start
TTS= RR- SD
TTS: Time until the new hire starts
RR: Date the requisition is received
SD: Date the new hire s...
Legal/ Compliance
Costs of HR related litigation
33
770.367.5444 www.resultstrainingcompany.com
May compare to prior year ...
Legal/ Compliance
Average time for
HR dispute resolution
34
770.367.5444 www.resultstrainingcompany.com
May compare to pri...
QUALITATIVE DATA
Top reasons for
voluntary turnover
Retention
35
770.367.5444 www.resultstrainingcompany.com
QUALITATIVE DATA
HR provides quality
consultative advice
HR Business Partner
36
770.367.5444 www.resultstrainingcompany.com
Build a Solid Business Case
for EVERY Project..
37770.367.5444 www.resultstrainingcompany.com
Aligned with
Corporate Strat...
Alternative Options…
• Pros
• Cons
• Costs
• Solutions to Obstacles
38
Obstacles?
What are Your
Current Obstacles
to a
Better or New HR
Metrics
Program?
39
770.367.5444 www.resultstrainingcompa...
770.367.5444 www.resultstrainingcompany.com
40
Contact Info:
Dr. Lepora Menefee,
PMP, SPHR, Prosci, SSBB
lepora@resultsconsulting.net
www.resultsconsulting.net
www.drlep...
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Most important organizational performance metrics

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This presentation addresses the most important metrics to use to measure organizational effectiveness for an organization.

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Most important organizational performance metrics

  1. 1. The Most Important Organizational Performance Metrics: What Every HR Organization Should Be Measuring… Results Training Company Dr. Lepora Manigault, SPHR, PMP, Six Sigma Black Belt
  2. 2. Today’s Itinerary Today’s Purpose What Value Does Your HR Operation Bring? What Is Wrong w/ HR? Holistic & Strategic Approach What Metrics Are and Are Not… Characteristics of Metrics The Importance of Benchmarking Balanced Scorecard Essential HR Organizational Metrics What’s In a Business Case? Next Steps in Metrics for Your HR Operation 2
  3. 3. T Why Are You Here? 3
  4. 4. Why Are We Here? Major Goals: To improve HR and Human Capital by way of measurement. Elevate the Strategic level of HR. 4 770.367.5444 www.resultstrainingcompany.com
  5. 5. The Beneficial Journey of HR Metrics.. 5 Measurement Transparency Navigation and Direction Informed Decision- Making Performance Improvement Credibility
  6. 6. 6
  7. 7. 7 What Value Does Your HR Operation Bring? Do You Motivate Great Performance? Do You Increase the ROI? Do you Keep Star Employees?
  8. 8. 8 How Do You Know?
  9. 9. HR is considered one of the least strategic departments in organizations… 9
  10. 10. Why is the missing link of HR missing? 770.367.5444 www.resultstrainingcompany.com 10
  11. 11. Where’s the Beef? 11 Your Data is Your Compass… You must have it to Know Your Location. Lack of data = lack of ability to align with CEO in: •Priorities •Projects •Expected Performance •Decisions
  12. 12. The First Step is Holistic Scanning… People Technology Processes Financial Resources Customer Structure Competitive Environment 12 770.367.5444 www.resultstrainingcompany.com
  13. 13. What Are the Causes and Effects? 13 770.367.5444 www.resultstrainingcompany.com Human Resources Programs Individual Performance Technological Access and Automation Work Processes Cost Saving and Revenue Growth Customer Satisfaction Supporting Organizational Structure Competitive Advantage for Talent
  14. 14. HR Strategy Should Directly Support the Corporate Strategy… 14 VISION MISSION GOALS HR OBJECTIVES CORPORATE H R
  15. 15. 770.367.5444 www.resultstrainingcompany.com 15
  16. 16. S.M.A.R.T. 16 SPECIFIC MEASURABLE ATTAINABLE RELEVANT TIME- BOUND
  17. 17. Build a Balanced Scorecard that clearly reflects the performance level. 17 Good Risky Low
  18. 18. METRICS • Numbers • Information • Tools • Current Performance • State of Condition ANALYTICS • Meaning • Comprehension • Application • Future Performance • Implications 18 Metrics vs. Analytics METRICS • Numbers • Information • Tools • Current Performance • State of Condition ANALYTICS • Meaning • Comprehension • Application • Future Performance • Implications
  19. 19. The Importance of Benchmarking 19 770.367.5444 www.resultstrainingcompany.com Know Your Competitors and Counterparts Compete for Talent Compete for Customers Avoid Overpaying Manage Relevant Metrics Develop Realistic Metrics Note: Benchmarking is only as beneficial as the level of similarity (apples to apples)
  20. 20. 20
  21. 21. 21
  22. 22. The Dollar Value of the Increased Workforce Productivity between This Year and Last Year… Organization Revenue (2010) HR / Organization Expenses (2010) 22 770.367.5444 www.resultstrainingcompany.com Is there an organizational value of Continuous Improvement? For example…. vs. Productivity &Efficiency Organization Revenue (2009) HR / Organization Expenses (2009)
  23. 23. Employee Engagement The % of employees who feel that their managers exercise expected management behaviors 23 770.367.5444 www.resultstrainingcompany.com
  24. 24. Quality of Hire For example: P+R 2 (N) P = Average job performance rating of new hires R = % of new hires retained after one year N = number of indicators Hiring 24 770.367.5444 www.resultstrainingcompany.com
  25. 25. Diversity The % of diversity hires in managerial and senior positions 25 770.367.5444 www.resultstrainingcompany.com For Example: Relative to Company Goals, Company Organization, City Population Diversity
  26. 26. The Turnover Rate of “Star” Employees % of employees to exit over past year Number of employees in total organization Star Employee: Rank above average on Performance Evaluation; Identified Successor Retention, Succession Planning 26 770.367.5444 www.resultstrainingcompany.com
  27. 27. Succession Planning % of critical positions with immediately identifiable replacements 27 770.367.5444 www.resultstrainingcompany.com
  28. 28. Incentive Compensation Differential Monetary incentives to high performers- Monetary incentives to low performers Monetary incentives to high performers Rewards 28 770.367.5444 www.resultstrainingcompany.com X 100% There should be a stark difference between benefits received by high performers and low performers
  29. 29. Staffing & Learning % of goals on Development Plan that were completed on time 29 770.367.5444 www.resultstrainingcompany.com
  30. 30. Staffing & Learning % of Performance Appraisals completed on time 30 770.367.5444 www.resultstrainingcompany.com
  31. 31. Training ROI 31 770.367.5444 www.resultstrainingcompany.com Increased Revenue (Benefits) - Training Costs Training Costs Evaluate :  Reactions  Learning  Behavior, and  Results X 100% Staffing & Learning
  32. 32. Time To Start TTS= RR- SD TTS: Time until the new hire starts RR: Date the requisition is received SD: Date the new hire starts work Recruitment 32 770.367.5444 www.resultstrainingcompany.com
  33. 33. Legal/ Compliance Costs of HR related litigation 33 770.367.5444 www.resultstrainingcompany.com May compare to prior year to identify trends, improvement, etc.
  34. 34. Legal/ Compliance Average time for HR dispute resolution 34 770.367.5444 www.resultstrainingcompany.com May compare to prior year to identify trends, improvement, etc.
  35. 35. QUALITATIVE DATA Top reasons for voluntary turnover Retention 35 770.367.5444 www.resultstrainingcompany.com
  36. 36. QUALITATIVE DATA HR provides quality consultative advice HR Business Partner 36 770.367.5444 www.resultstrainingcompany.com
  37. 37. Build a Solid Business Case for EVERY Project.. 37770.367.5444 www.resultstrainingcompany.com Aligned with Corporate Strategy High Level Action Plan (Executable) Timeline & Milestones Description of Initiative Rationale/ Purpose Benefits/ Cost Ratio (Healthy) Alternative Options Break Even Analysis & Return On Investment Budget
  38. 38. Alternative Options… • Pros • Cons • Costs • Solutions to Obstacles 38
  39. 39. Obstacles? What are Your Current Obstacles to a Better or New HR Metrics Program? 39 770.367.5444 www.resultstrainingcompany.com
  40. 40. 770.367.5444 www.resultstrainingcompany.com 40
  41. 41. Contact Info: Dr. Lepora Menefee, PMP, SPHR, Prosci, SSBB lepora@resultsconsulting.net www.resultsconsulting.net www.drlepora.com www.facebook.com/drlepora www.twitter.com/drlepora 770.367.5444 New Book: Journey to Authentic Joy Available on Amazon, B&N, Ibook

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