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The HRThe HR
DashboardDashboard
Developing a Powerful MeasureDeveloping a Powerful Measure
for tracking HR Resultsfor tracking HR Results
Lee Wiersma andLee Wiersma and
Jeffrey RussellJeffrey Russell
© 2003, Russell Consulting, Inc. and UW Credit Union
Our ObjectivesOur Objectives
1.1. Identify the purpose and importance ofIdentify the purpose and importance of
measuring HR’s effectiveness.measuring HR’s effectiveness.
2.2. Discuss the two types of measures:Discuss the two types of measures: lagginglagging andand
leadingleading —— and how to use each.and how to use each.
3.3. Identify theIdentify the prerequisitesprerequisites for developing an “for developing an “HRHR
DashboardDashboard” of leading indicators.” of leading indicators.
4.4. DescribeDescribe methodsmethods for developing the HRfor developing the HR
Dashboard.Dashboard.
5.5. Identify how the HR Dashboard is used toIdentify how the HR Dashboard is used to
influenceinfluence HR, HRD, and OD policies andHR, HRD, and OD policies and
practices.practices.
© 2003, Russell Consulting, Inc. and UW Credit Union
Improving Human PerformanceImproving Human Performance
•• How can HR and HRD professionalsHow can HR and HRD professionals
move an organization towardmove an organization toward
improvement in humanimprovement in human
performance?performance?
•• What HR initiatives enable greatWhat HR initiatives enable great
performance as an organizationalperformance as an organizational
outcome?outcome?
© 2003, Russell Consulting, Inc. and UW Credit Union
Measuring HR Results . . .Measuring HR Results . . .
•• How do you know if your HRHow do you know if your HR
efforts areefforts are successfulsuccessful??
•• How do youHow do you measuremeasure thethe
effects or results of theseeffects or results of these
HR, training, and OD efforts?HR, training, and OD efforts?
•• How will youHow will you knowknow that yourthat your
efforts and initiatives haveefforts and initiatives have
paid off?paid off?
© 2003, Russell Consulting, Inc. and UW Credit Union
Measuring Human HealthMeasuring Human Health
•• What are the key signs ofWhat are the key signs of
humanhuman health?health?
•• How do youHow do you knowknow if youif you
are healthy or unhealthy?are healthy or unhealthy?
•• Which of your “Which of your “vital signsvital signs””
might you chart over time?might you chart over time?
•• What might happen if youWhat might happen if you
ignoreignore these vital signs?these vital signs?
© 2003, Russell Consulting, Inc. and UW Credit Union
Measuring HealthMeasuring Health AfterAfter the Factthe Fact
•• Tracking your “vital signs” along the way canTracking your “vital signs” along the way can
give you an early warning of emerging healthgive you an early warning of emerging health
concerns.concerns.
•• Failing to measure these vital signsFailing to measure these vital signs —— or ignoringor ignoring
the signs can lead to . . .the signs can lead to . . .
© 2003, Russell Consulting, Inc. and UW Credit Union
LaggingLagging IndicatorsIndicators
Lagging indicators areLagging indicators are outcomeoutcome
measuresmeasures that help you gaugethat help you gauge
your HR progress by examiningyour HR progress by examining
the final end result orthe final end result or
outcomesoutcomes of your collectiveof your collective
efforts.efforts.
Use of the “lagging” termUse of the “lagging” term
reflects thereflects the delaydelay or gapor gap
between your actions and abetween your actions and a
change in the final end result.change in the final end result.
Characteristics
•• OutcomeOutcome measure.measure.
•• Indicates theIndicates the endend
resultresult of the system.of the system.
•• Tells you whatTells you what
happened, not whathappened, not what isis
happening.happening.
•• Less effective atLess effective at
measuring the effectsmeasuring the effects
of specific changesof specific changes
made to the system.made to the system.
© 2003, Russell Consulting, Inc. and UW Credit Union
LaggingLagging Indicator ExamplesIndicator Examples
NonNon--HR Examples . . .HR Examples . . .
•• HealthHealth —— heart attack, liver failure, stroke, death, etc.heart attack, liver failure, stroke, death, etc.
•• AutomobileAutomobile —— arrived safely at destination (or not), engine failure,arrived safely at destination (or not), engine failure,
blown tire, citation from traffic enforcement, etc.blown tire, citation from traffic enforcement, etc.
•• EconomyEconomy —— GNP growth, national debt, unemployment rate, etc.GNP growth, national debt, unemployment rate, etc.
HR Examples . . .HR Examples . . .
•• Employee retention.Employee retention.
•• Employee performance.Employee performance.
•• Organizational performance.Organizational performance.
•• Customer retention.Customer retention.
•• Employee productivity.Employee productivity.
•• ??
Lagging indicators have aLagging indicators have a
directdirect bearing on a company’sbearing on a company’s
bottom line. There is abottom line. There is a
business interest in andbusiness interest in and
financial benefit fromfinancial benefit from
improvement in these areas.improvement in these areas.
© 2003, Russell Consulting, Inc. and UW Credit Union
LeadingLeading IndicatorsIndicators
Leading indicators areLeading indicators are processprocess
measuresmeasures that help you gaugethat help you gauge
incrementalincremental progress you areprogress you are
making toward key HRmaking toward key HR
outcome (lagging) measures.outcome (lagging) measures.
Since leading indicators measure theSince leading indicators measure the
results from yourresults from your processesprocesses, there is, there is
less of aless of a delaydelay between your actionsbetween your actions
and a change in the system.and a change in the system.
They are theThey are the performance driversperformance drivers ——
the key factors that enable the overallthe key factors that enable the overall
end result (outcome) you want toend result (outcome) you want to
achieve.achieve.
Characteristics
•• ProcessProcess measure.measure.
•• ImmediateImmediate feedback tofeedback to
the system.the system.
•• Tells you whatTells you what isis
happeninghappening nownow..
•• Can be tracked overCan be tracked over
time.time.
•• Provides an “Provides an “earlyearly
warningwarning” of emerging” of emerging
results.results.
•• VeryVery responsiveresponsive toto
changes in the systemchanges in the system
© 2003, Russell Consulting, Inc. and UW Credit Union
LeadingLeading Indicator ExamplesIndicator Examples
NonNon--HR Examples . . .HR Examples . . .
•• HealthHealth —— Heartbeat, body temperature, blood sugar levels,Heartbeat, body temperature, blood sugar levels,
cholesterol levels, blood pressure, etc.cholesterol levels, blood pressure, etc.
•• AutomobileAutomobile —— gas gauge, engine temperature, speedometer,gas gauge, engine temperature, speedometer,
odometer, oil level, indicator lights, rumble strips on the roadodometer, oil level, indicator lights, rumble strips on the roadway,way,
GPS coordinates, etc.GPS coordinates, etc.
•• EconomyEconomy —— home starts, capital equipment purchases, layoffs,home starts, capital equipment purchases, layoffs,
stock market value, public confidence, exchange rates, etc.stock market value, public confidence, exchange rates, etc.
HR Examples . . .HR Examples . . .
•• Employee absenteeism.Employee absenteeism.
•• Employee sick leave use.Employee sick leave use.
•• Customer satisfaction surveys.Customer satisfaction surveys.
•• Employee satisfaction surveys.Employee satisfaction surveys.
•• ??
Leading indicators have anLeading indicators have an
indirectindirect bearing on a company’sbearing on a company’s
bottom line. While therebottom line. While there isis aa
business interest in improvementbusiness interest in improvement
in these areas, there is not oftenin these areas, there is not often
an immediate financial benefit toan immediate financial benefit to
the company.the company.
© 2003, Russell Consulting, Inc. and UW Credit Union
UW Credit UnionUW Credit Union
About the OrganizationAbout the Organization
1.1. Our historyOur history
2.2. Our environmentOur environment
3.3. HR IssuesHR Issues
4.4. DataData--driven decisionsdriven decisions
© 2003, Russell Consulting, Inc. and UW Credit Union
HistoryHistory
–– Founded in 1931.Founded in 1931.
•• 88 members, $2,500 in assets.88 members, $2,500 in assets.
–– 90,000 Members.90,000 Members.
–– $650 million in assets.$650 million in assets.
–– Third Largest Credit Union in Wisconsin.Third Largest Credit Union in Wisconsin.
–– 10 Branches,10 Branches,
•• Madison, 6 branches.Madison, 6 branches.
•• Milwaukee, 2 branches.Milwaukee, 2 branches.
•• Green Bay & Whitewater, campus branches.Green Bay & Whitewater, campus branches.
© 2003, Russell Consulting, Inc. and UW Credit Union
OurOur
EnvironmentEnvironment
–– Volatile EnvironmentVolatile Environment
•• Strong tradition of member service.Strong tradition of member service.
•• High Tech / High Touch.High Tech / High Touch.
•• Increased competition with markets.Increased competition with markets.
–– LocalLocal
–– NonNon--traditional, internet, insurance companies,etctraditional, internet, insurance companies,etc
–– Active and Progressive Board of Directors.Active and Progressive Board of Directors.
•• Strong ties within UW Madison community.Strong ties within UW Madison community.
•• Commitment to being “Employer of Choice”.Commitment to being “Employer of Choice”.
© 2003, Russell Consulting, Inc. and UW Credit Union
HR IssuesHR Issues
–– Cultural Change OngoingCultural Change Ongoing
•• Negotiate changeNegotiate change
•• Introduce level of accountability.Introduce level of accountability.
–– Shift in Business FocusShift in Business Focus
•• Known as “Student Bank” in past.Known as “Student Bank” in past.
•• “Order Takers” to “Retail Environment”.“Order Takers” to “Retail Environment”.
•• Appropriate growth.Appropriate growth.
–– Human Capital ImprovementHuman Capital Improvement
•• Improve retentionImprove retention
•• Attract talentAttract talent
•• Performance measurementPerformance measurement
•• Skill trainingSkill training
© 2003, Russell Consulting, Inc. and UW Credit Union
Data DrivenData Driven
DecisionsDecisions
–– Critical Measures (BalancedCritical Measures (Balanced
Scorecard)Scorecard)
•• Member MeasuresMember Measures
–– Satisfaction, retentionSatisfaction, retention
•• FinancialFinancial
–– ROA, OPM, Deposit Growth, ETAROA, OPM, Deposit Growth, ETA
•• Staff SatisfactionStaff Satisfaction
•• Compensation/RewardsCompensation/Rewards
•• Internal Customer SatisfactionInternal Customer Satisfaction
© 2003, Russell Consulting, Inc. and UW Credit Union
What is the HR Dashboard?What is the HR Dashboard?
The UW Credit Union’s HR Dashboard is a panel of indicatorsThe UW Credit Union’s HR Dashboard is a panel of indicators
that present a reading of the relative health/satisfaction ofthat present a reading of the relative health/satisfaction of
credit union employees on three dimensions:credit union employees on three dimensions: QWL Score, CoreQWL Score, Core
Values,Values, andand Overall Job SatisfactionOverall Job Satisfaction..
© 2003, Russell Consulting, Inc. and UW Credit Union
Why an HRWhy an HR
“Dashboard?”“Dashboard?”
1.1. Traditional employee surveys too infrequent.Traditional employee surveys too infrequent.
2.2. Desire to stay connected to employees.Desire to stay connected to employees.
3.3. The need for timely feedback.The need for timely feedback.
4.4. Desire to establish measurable targets.Desire to establish measurable targets.
5.5. The importance of leadership accountability.The importance of leadership accountability.
6.6. Enable HR and leadership to make adjustmentsEnable HR and leadership to make adjustments
along the way.along the way.
7.7. A desire to communicate progress on keyA desire to communicate progress on key
indicatorsindicators alongalong the way.the way.
8.8. Ensure organizational alignment.Ensure organizational alignment.
© 2003, Russell Consulting, Inc. and UW Credit Union
PrePre--ConditionsConditions
1.1. Clarity of vision.Clarity of vision.
2.2. Culture of accountability.Culture of accountability.
3.3. Integrated performance managementIntegrated performance management
system.system.
4.4. Technological capability.Technological capability.
5.5. Intelligent use of the HR Dashboard.Intelligent use of the HR Dashboard.
© 2003, Russell Consulting, Inc. and UW Credit Union
Clarity of VisionClarity of Vision
Organizational Alignment CriticalOrganizational Alignment Critical
•• Purpose:Purpose:
“Working for members to enable their financial“Working for members to enable their financial
dreams.”dreams.”
•• Strategic Position:Strategic Position:
“Grow through respect in our marketplace, and“Grow through respect in our marketplace, and
by developing relationships through customerby developing relationships through customer
intimacy.”intimacy.”
© 2003, Russell Consulting, Inc. and UW Credit Union
Culture ofCulture of
AccountabilityAccountability
•• Core ValuesCore Values
–– Act in the members' best interestAct in the members' best interest
–– Embrace ChangeEmbrace Change
–– EducationEducation
–– TeamworkTeamwork
–– Work/Life BalanceWork/Life Balance
•• Staff perception measured on regularStaff perception measured on regular
basis.basis.
•• Leadership expectations definedLeadership expectations defined
–– Multiple feedback mechanisms utilized includingMultiple feedback mechanisms utilized including
360 degree feedback.360 degree feedback.
© 2003, Russell Consulting, Inc. and UW Credit Union
Integrated PerformanceIntegrated Performance
Management SystemManagement System
•• Traditional performance appraisal system disbandedTraditional performance appraisal system disbanded
in mid 1990’s.in mid 1990’s.
•• Compensation system not upCompensation system not up--toto--date, inadequatedate, inadequate
merit type system.merit type system.
•• Connections Process Implemented in 2001.Connections Process Implemented in 2001.
–– Development of position accountabilities.Development of position accountabilities.
–– Development of skill inventories.Development of skill inventories.
–– Consistent & regular feedback, coaching, & alignment.Consistent & regular feedback, coaching, & alignment.
–– The Cardwell Group, James Cardwell & Karla Norwood.The Cardwell Group, James Cardwell & Karla Norwood.
–– www.connectionsonline.netwww.connectionsonline.net / 800/ 800--395395--1410.1410.
•• Pay for performance compensation systemPay for performance compensation system
implemented in 2002.implemented in 2002.
–– Base payBase pay
–– Bonus (Variable Reward)Bonus (Variable Reward)
© 2003, Russell Consulting, Inc. and UW Credit Union
TechnologicalTechnological
capabilitycapability
•• All staff must have sufficient access.All staff must have sufficient access.
•• Use of intranet technologies.Use of intranet technologies.
–– CommunicationCommunication
•• UpUp--toto--date and relevant.date and relevant.
•• Share results of data.Share results of data.
•• Procedures, policies, training.Procedures, policies, training.
–– Delivery system for “Connections.”Delivery system for “Connections.”
•• Use of EUse of E--mail systemsmail systems
–– Delivery of surveysDelivery of surveys
© 2003, Russell Consulting, Inc. and UW Credit Union
Intelligent Use ofIntelligent Use of
DashboardDashboard
•• Define uses for dashboardDefine uses for dashboard
•• Summarize and organize dataSummarize and organize data
•• Do not censure informationDo not censure information
–– Complete data available on intranet site.Complete data available on intranet site.
–– Maintain historical data.Maintain historical data.
–– Do not share names of individuals mentioned in aDo not share names of individuals mentioned in a
bad light.bad light.
•• Continually reaffirm commitment to it.Continually reaffirm commitment to it.
© 2003, Russell Consulting, Inc. and UW Credit Union
Developing the HR DashboardDeveloping the HR Dashboard
ComprehensiveComprehensive Employee Attitudes SurveyEmployee Attitudes Survey (EAS)(EAS)
conducted in 1995, 1998, 2001, and 2003.conducted in 1995, 1998, 2001, and 2003.
© 2003, Russell Consulting, Inc. and UW Credit Union
Dimensions of the EASDimensions of the EAS
•• Quality of Worklife DimensionsQuality of Worklife Dimensions:: leadership,leadership,
communication, supervision, pay/benefits, etc.communication, supervision, pay/benefits, etc.
[53 questions][53 questions]
•• Core ValuesCore Values —— Measuring the “gap” betweenMeasuring the “gap” between
actionsactions andand aspirationsaspirations..
•• Job Descriptive IndexJob Descriptive Index —— six dimensions.six dimensions.
•• Overall Job SatisfactionOverall Job Satisfaction —— 1010--point scale.point scale.
•• OpenOpen--Ended QuestionsEnded Questions —— (a) what people lik(a) what people likee bestbest
about working for credit union and (b) ideas toabout working for credit union and (b) ideas to
improveimprove QWL.QWL.
© 2003, Russell Consulting, Inc. and UW Credit Union
Quarterly HR DashboardQuarterly HR Dashboard
1.1. Quarterly SurveyQuarterly Survey —— (a) 20 questions, (b)(a) 20 questions, (b)
five core values, (c) overall satisfaction,five core values, (c) overall satisfaction,
and (d) two openand (d) two open--ended questions.ended questions.
2.2. Sample SizeSample Size —— 60 to 65 employees.60 to 65 employees.
3.3. ValidityValidity —— accurate +/accurate +/-- 1%.1%.
4.4. AdministrationAdministration —— ee--mail link to survey.mail link to survey.
5.5. ConfidentialityConfidentiality —— external consultant.external consultant.
6.6. ReportingReporting ResultsResults —— Three “instruments”Three “instruments”
on the HR Dashboardon the HR Dashboard
© 2003, Russell Consulting, Inc. and UW Credit Union
Example Survey StatementsExample Survey Statements
665544332211
StronglyStrongly
AgreeAgree
AgreeAgree
slightlyslightly
agreeagree
slightlyslightly
disagreedisagree
DisagreeDisagree
StronglyStrongly
DisagreeDisagree
•• I feel pride and a sense of accomplishment in the work that II feel pride and a sense of accomplishment in the work that I
do.do.
•• I have input into how I perform my job.I have input into how I perform my job.
•• I feel appreciated for the good work that I do.I feel appreciated for the good work that I do.
•• My direct supervisor gives me clear performance expectationsMy direct supervisor gives me clear performance expectations
that enable me to do quality work.that enable me to do quality work.
•• The Credit UnionThe Credit Union’’s managers and supervisors have clearlys managers and supervisors have clearly
communicated the future direction and goals of the Creditcommunicated the future direction and goals of the Credit
Union to me.Union to me.
© 2003, Russell Consulting, Inc. and UW Credit Union
Example Value StatementsExample Value Statements
•• Embrace changeEmbrace change: proactively seek improvement;: proactively seek improvement;
anticipate and support change to meet corporateanticipate and support change to meet corporate
strategies and goals; take calculated risks and learnstrategies and goals; take calculated risks and learn
from experience.from experience.
665544332211
AlwaysAlways
AlmostAlmost
AlwaysAlways
GenerallyGenerallySometimesSometimes
AlmostAlmost
NeverNever
NeverNever
CurrentCurrent
665544332211
AlwaysAlways
AlmostAlmost
AlwaysAlways
GenerallyGenerallySometimesSometimes
AlmostAlmost
NeverNever
NeverNever
DesiredDesired
The difference between “current” and “desired = A “gap of 2.0The difference between “current” and “desired = A “gap of 2.0
© 2003, Russell Consulting, Inc. and UW Credit Union
Overall Job SatisfactionOverall Job Satisfaction
Considering everything, how satisfied areConsidering everything, how satisfied are
youyou overalloverall with working at the University ofwith working at the University of
Wisconsin Credit Union? Place a mark in theWisconsin Credit Union? Place a mark in the
box that best reflects yourbox that best reflects your overalloverall jobjob
satisfaction level here.satisfaction level here.
101022 77 88 99
VeryVery
SatisfiedSatisfied
6655443311
VeryVery
DissatisfiedDissatisfied
© 2003, Russell Consulting, Inc. and UW Credit Union
What is the HR Dashboard?What is the HR Dashboard?
3/033/03
The UW Credit Union’s HR Dashboard is a panel of indicatorsThe UW Credit Union’s HR Dashboard is a panel of indicators
that present a reading of the relative health/satisfaction ofthat present a reading of the relative health/satisfaction of
credit union employees on three dimensions:credit union employees on three dimensions:
QWL Score, Core Values,QWL Score, Core Values, andand Overall Job SatisfactionOverall Job Satisfaction..
© 2003, Russell Consulting, Inc. and UW Credit Union
HR Dashboard -- QW L Dimensions for December 2002
Leadership
Management
Communication
Pay & Benefits
Empowerment
Job Pride
Work Environment
Depart.Cooperation
Employee Growth
HR Scorecard Value
HR Dashboard Scores for QWL Dimensions
5.004.904.804.704.604.504.40
4.72
4.64
4.73
4.77
4.92
4.50
4.74
4.61
4.89
4.62
Meets
Far
ExceedsQWL DimensionsQWL Dimensions
Dashboard ValueDashboard Value
Annual goals . . .
© 2003, Russell Consulting, Inc. and UW Credit Union
HR Dashboard: Composite QWL Score
Time of Assessment
December 02Sept. 02June 02March '02Dec. '01Sept. '01June '012001
Mean--HRDashboardQWLScore
4.8
4.7
4.6
4.5
4.4
4.3
4.2
4.1
Far Exceeds
Meets
© 2003, Russell Consulting, Inc. and UW Credit Union
HR Dashboard: Overall Job Satisfaction
Year of Employee Assessment
December 02Sept. 02June 02March '02Dec. '01Sept. '01June '01200119981995
MeanOverallJobSatisfaction
7.8
7.6
7.4
7.2
7.0
6.8
6.6
6.4
6.2
Meets
Far Exceeds
March 2003 assessment = 7.94March 2003 assessment = 7.94
© 2003, Russell Consulting, Inc. and UW Credit Union
HR Dashboard: Composite Core Values Gap
Note: The ideal "gap" between "what is" and "what should be" = 0
Year of Employee Assessment
December 02Sept. 02June 02March '02Dec. '01Sept. '01June '012001
MeanCompositeCoreValuesGapScore 1.50
1.40
1.30
1.20
1.10
1.00
.90
.80
© 2003, Russell Consulting, Inc. and UW Credit Union
HR Dashboard: Core Values Gap Score -- Work/Life Balance
Note: The ideal "gap" between "what is" and "what should be" = 0
Time of Employee Assessment
December 02Sept. 02June 02March '02Dec. '01Sept. '01June '012001
GAP:Promoteaharmoniousbalanceofwork/non-work
1.6
1.5
1.4
1.3
1.2
1.1
1.0
© 2003, Russell Consulting, Inc. and UW Credit Union
HR Dashboard: Composite QWL Score -- Retail & Support
Time of Employee Assessment
December 02Sept. 02June 02March '02Dec. '01Sept. '01June '01200119981995
Mean 5.0
4.8
4.6
4.4
4.2
4.0
QWL Score
Retail
Support
Far Exceeds
Meets
What happened after
this assessment?
© 2003, Russell Consulting, Inc. and UW Credit Union
HR Dashboard: Overall Job Satisfaction
Time of Employee Assessment
December 02Sept. 02June 02March '02Dec. '01Sept. '01June '01200119981995
Mean
8.0
7.5
7.0
6.5
6.0
Retail
Support
Overall
© 2003, Russell Consulting, Inc. and UW Credit Union
HR Dashboard: Core Value Gaps -- Support & Retail
Time of Employee Assessment
December 02Sept. 02June 02March '02Dec. '01Sept. '01June '01200119981995
Mean
1.6
1.4
1.2
1.0
.8
.6
Composite Gap
Support Gap
Retail Gap
Desired “gap is 0
What happened after
this assessment?
© 2003, Russell Consulting, Inc. and UW Credit Union
Applying the DashboardApplying the Dashboard
1.1. HR programs and services.HR programs and services.
2.2. Managerial performance feedback.Managerial performance feedback.
3.3. Variable pay.Variable pay.
4.4. Lessons learnedLessons learned —— What did we do thatWhat did we do that
worked? Didnworked? Didn’’t work?t work?
© 2003, Russell Consulting, Inc. and UW Credit Union
Applying the DashboardApplying the Dashboard
5.5. Relationship to other critical measures:Relationship to other critical measures:
–– Member/Customer SatisfactionMember/Customer Satisfaction
–– Member RetentionMember Retention
–– Financial PerformanceFinancial Performance
–– Employee SatisfactionEmployee Satisfaction
–– Internal Customer ServiceInternal Customer Service
6.6. Focus of monthly management meetings.Focus of monthly management meetings.
7.7. Explore the differences between groupsExplore the differences between groups
(retail vs. support).(retail vs. support).
© 2003, Russell Consulting, Inc. and UW Credit Union
Comparison of FinancialComparison of Financial
Critical MeasuresCritical Measures
Critical Indicators Line Chart
Note: Each critical measure uses a different scale
Time of Assessment
Dec. 02Sept. 02June 02March 02Dec. 01Sept. 01June 01March 01
Mean
30
25
20
15
10
5
0
ROA
OPM
DG
ETA
QWL
OJS
© 2003, Russell Consulting, Inc. and UW Credit Union
Employee Critical Measures toEmployee Critical Measures to
Financial MeasuresFinancial Measures
Financial 2001 2002
Critical Measures March June September December March June September December
ROA 1.04% 1.10% 1.13% 1.21% 1.45% 1.57% 1.71% 1.62%
OPM 18.40% 19.92% 20.55% 21.73% 25.60% 26.96% 27.74% 26.60%
DG 7.09% 9.25% 16.57% 19.07% 4.66% 5.50% 13.59% 13.08%
ETA 7.99% 8.14% 7.95% 8.15% 8.13% 8.24% 8.54% 8.35%
Employee 2001 2002
Critical Measures March June September December March June September December
QWL 4.15 4.22 4.27 4.21 4.47 4.47 4.61 4.72
OJS 7.6 6.94 6.82 6.72 6.42 6.42 7.09 7.51
© 2003, Russell Consulting, Inc. and UW Credit Union
Employee Critical Measures toEmployee Critical Measures to
Customer Satisfaction MeasuresCustomer Satisfaction Measures
Financial 2001 2002
Critical Measures March June September December March June September December
Retention 88.87 na na 88.93% na na na 92.38%
Member Service na 83.50% 83.50% 85.00% 83.75% 84.08% 84.95% 86.88%
Employee 2001 2002
Critical Measures March June September December March June September December
QWL 4.15 4.22 4.27 4.21 4.47 4.47 4.61 4.72
OJS 7.6 6.94 6.82 6.72 6.42 6.42 7.09 7.51
© 2003, Russell Consulting, Inc. and UW Credit Union
Differences Between RetailDifferences Between Retail
and Support Departmentsand Support Departments
•• 2001 kicked off retail training for frontline staff.2001 kicked off retail training for frontline staff.
•• In order to be member focused, we needed to beIn order to be member focused, we needed to be
“Frontline or Retail focused first”.“Frontline or Retail focused first”.
•• Limited training for support staff.Limited training for support staff.
•• Beginning of “Refi” boom.Beginning of “Refi” boom.
•• Active improvement of retail managementActive improvement of retail management
•• Reorganization of support staff & departments.Reorganization of support staff & departments.
© 2003, Russell Consulting, Inc. and UW Credit Union
Challenges/Lesson’s LearnedChallenges/Lesson’s Learned
1.1. Select the right measuresSelect the right measures —— and adjust as issuesand adjust as issues
emerge.emerge.
2.2. Establish realistically challenging goals or targets.Establish realistically challenging goals or targets.
3.3. Present the HR Dashboard graphically: radialPresent the HR Dashboard graphically: radial
dials, bar charts, and line charts.dials, bar charts, and line charts.
4.4. Provide guidance to leadership and staff in howProvide guidance to leadership and staff in how
to interpret and respond.to interpret and respond.
5.5. Allow time for the HR Dashboard to tell the story;Allow time for the HR Dashboard to tell the story;
dondon’’t move too quickly to make changes ort move too quickly to make changes or
adjust your HR efforts.adjust your HR efforts.
© 2003, Russell Consulting, Inc. and UW Credit Union
Challenges/Lesson’s LearnedChallenges/Lesson’s Learned
6.6. Use openUse open--ended comments carefully.ended comments carefully.
7.7. Anchor the quarterly assessments with periodicAnchor the quarterly assessments with periodic
assessments of the entire employee population.assessments of the entire employee population.
8.8. If using the HR Dashboard in variable compensation:If using the HR Dashboard in variable compensation:
(a) use as only one component and (b) test the HR(a) use as only one component and (b) test the HR
Dashboard methodology for at least one full year toDashboard methodology for at least one full year to
test its volatility and its responsiveness to managerialtest its volatility and its responsiveness to managerial
actions.actions.
9.9. Use the HR Dashboard to help you identify areas ofUse the HR Dashboard to help you identify areas of
““high leveragehigh leverage”” for effecting change in employeefor effecting change in employee
attitudes.attitudes.
© 2003, Russell Consulting, Inc. and UW Credit Union
What is YOUR HR Dashboard?What is YOUR HR Dashboard?
What are the key dials onWhat are the key dials on youryour HRHR
dashboard?dashboard?
Thank you!Thank you!
For more information on the HR Dashboard andFor more information on the HR Dashboard and
the UW Credit Union . . .the UW Credit Union . . .
www.RussellConsultingInc.comwww.RussellConsultingInc.com
www.uwcu.orgwww.uwcu.org
For aFor a FREEFREE copy of our PowerPoint presentation (incopy of our PowerPoint presentation (in
PDF format) go to:PDF format) go to: www.RussellConsultingInc.comwww.RussellConsultingInc.com

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Hr dashboard

  • 1. The HRThe HR DashboardDashboard Developing a Powerful MeasureDeveloping a Powerful Measure for tracking HR Resultsfor tracking HR Results Lee Wiersma andLee Wiersma and Jeffrey RussellJeffrey Russell
  • 2. © 2003, Russell Consulting, Inc. and UW Credit Union Our ObjectivesOur Objectives 1.1. Identify the purpose and importance ofIdentify the purpose and importance of measuring HR’s effectiveness.measuring HR’s effectiveness. 2.2. Discuss the two types of measures:Discuss the two types of measures: lagginglagging andand leadingleading —— and how to use each.and how to use each. 3.3. Identify theIdentify the prerequisitesprerequisites for developing an “for developing an “HRHR DashboardDashboard” of leading indicators.” of leading indicators. 4.4. DescribeDescribe methodsmethods for developing the HRfor developing the HR Dashboard.Dashboard. 5.5. Identify how the HR Dashboard is used toIdentify how the HR Dashboard is used to influenceinfluence HR, HRD, and OD policies andHR, HRD, and OD policies and practices.practices.
  • 3. © 2003, Russell Consulting, Inc. and UW Credit Union Improving Human PerformanceImproving Human Performance •• How can HR and HRD professionalsHow can HR and HRD professionals move an organization towardmove an organization toward improvement in humanimprovement in human performance?performance? •• What HR initiatives enable greatWhat HR initiatives enable great performance as an organizationalperformance as an organizational outcome?outcome?
  • 4. © 2003, Russell Consulting, Inc. and UW Credit Union Measuring HR Results . . .Measuring HR Results . . . •• How do you know if your HRHow do you know if your HR efforts areefforts are successfulsuccessful?? •• How do youHow do you measuremeasure thethe effects or results of theseeffects or results of these HR, training, and OD efforts?HR, training, and OD efforts? •• How will youHow will you knowknow that yourthat your efforts and initiatives haveefforts and initiatives have paid off?paid off?
  • 5. © 2003, Russell Consulting, Inc. and UW Credit Union Measuring Human HealthMeasuring Human Health •• What are the key signs ofWhat are the key signs of humanhuman health?health? •• How do youHow do you knowknow if youif you are healthy or unhealthy?are healthy or unhealthy? •• Which of your “Which of your “vital signsvital signs”” might you chart over time?might you chart over time? •• What might happen if youWhat might happen if you ignoreignore these vital signs?these vital signs?
  • 6. © 2003, Russell Consulting, Inc. and UW Credit Union Measuring HealthMeasuring Health AfterAfter the Factthe Fact •• Tracking your “vital signs” along the way canTracking your “vital signs” along the way can give you an early warning of emerging healthgive you an early warning of emerging health concerns.concerns. •• Failing to measure these vital signsFailing to measure these vital signs —— or ignoringor ignoring the signs can lead to . . .the signs can lead to . . .
  • 7. © 2003, Russell Consulting, Inc. and UW Credit Union LaggingLagging IndicatorsIndicators Lagging indicators areLagging indicators are outcomeoutcome measuresmeasures that help you gaugethat help you gauge your HR progress by examiningyour HR progress by examining the final end result orthe final end result or outcomesoutcomes of your collectiveof your collective efforts.efforts. Use of the “lagging” termUse of the “lagging” term reflects thereflects the delaydelay or gapor gap between your actions and abetween your actions and a change in the final end result.change in the final end result. Characteristics •• OutcomeOutcome measure.measure. •• Indicates theIndicates the endend resultresult of the system.of the system. •• Tells you whatTells you what happened, not whathappened, not what isis happening.happening. •• Less effective atLess effective at measuring the effectsmeasuring the effects of specific changesof specific changes made to the system.made to the system.
  • 8. © 2003, Russell Consulting, Inc. and UW Credit Union LaggingLagging Indicator ExamplesIndicator Examples NonNon--HR Examples . . .HR Examples . . . •• HealthHealth —— heart attack, liver failure, stroke, death, etc.heart attack, liver failure, stroke, death, etc. •• AutomobileAutomobile —— arrived safely at destination (or not), engine failure,arrived safely at destination (or not), engine failure, blown tire, citation from traffic enforcement, etc.blown tire, citation from traffic enforcement, etc. •• EconomyEconomy —— GNP growth, national debt, unemployment rate, etc.GNP growth, national debt, unemployment rate, etc. HR Examples . . .HR Examples . . . •• Employee retention.Employee retention. •• Employee performance.Employee performance. •• Organizational performance.Organizational performance. •• Customer retention.Customer retention. •• Employee productivity.Employee productivity. •• ?? Lagging indicators have aLagging indicators have a directdirect bearing on a company’sbearing on a company’s bottom line. There is abottom line. There is a business interest in andbusiness interest in and financial benefit fromfinancial benefit from improvement in these areas.improvement in these areas.
  • 9. © 2003, Russell Consulting, Inc. and UW Credit Union LeadingLeading IndicatorsIndicators Leading indicators areLeading indicators are processprocess measuresmeasures that help you gaugethat help you gauge incrementalincremental progress you areprogress you are making toward key HRmaking toward key HR outcome (lagging) measures.outcome (lagging) measures. Since leading indicators measure theSince leading indicators measure the results from yourresults from your processesprocesses, there is, there is less of aless of a delaydelay between your actionsbetween your actions and a change in the system.and a change in the system. They are theThey are the performance driversperformance drivers —— the key factors that enable the overallthe key factors that enable the overall end result (outcome) you want toend result (outcome) you want to achieve.achieve. Characteristics •• ProcessProcess measure.measure. •• ImmediateImmediate feedback tofeedback to the system.the system. •• Tells you whatTells you what isis happeninghappening nownow.. •• Can be tracked overCan be tracked over time.time. •• Provides an “Provides an “earlyearly warningwarning” of emerging” of emerging results.results. •• VeryVery responsiveresponsive toto changes in the systemchanges in the system
  • 10. © 2003, Russell Consulting, Inc. and UW Credit Union LeadingLeading Indicator ExamplesIndicator Examples NonNon--HR Examples . . .HR Examples . . . •• HealthHealth —— Heartbeat, body temperature, blood sugar levels,Heartbeat, body temperature, blood sugar levels, cholesterol levels, blood pressure, etc.cholesterol levels, blood pressure, etc. •• AutomobileAutomobile —— gas gauge, engine temperature, speedometer,gas gauge, engine temperature, speedometer, odometer, oil level, indicator lights, rumble strips on the roadodometer, oil level, indicator lights, rumble strips on the roadway,way, GPS coordinates, etc.GPS coordinates, etc. •• EconomyEconomy —— home starts, capital equipment purchases, layoffs,home starts, capital equipment purchases, layoffs, stock market value, public confidence, exchange rates, etc.stock market value, public confidence, exchange rates, etc. HR Examples . . .HR Examples . . . •• Employee absenteeism.Employee absenteeism. •• Employee sick leave use.Employee sick leave use. •• Customer satisfaction surveys.Customer satisfaction surveys. •• Employee satisfaction surveys.Employee satisfaction surveys. •• ?? Leading indicators have anLeading indicators have an indirectindirect bearing on a company’sbearing on a company’s bottom line. While therebottom line. While there isis aa business interest in improvementbusiness interest in improvement in these areas, there is not oftenin these areas, there is not often an immediate financial benefit toan immediate financial benefit to the company.the company.
  • 11. © 2003, Russell Consulting, Inc. and UW Credit Union UW Credit UnionUW Credit Union About the OrganizationAbout the Organization 1.1. Our historyOur history 2.2. Our environmentOur environment 3.3. HR IssuesHR Issues 4.4. DataData--driven decisionsdriven decisions
  • 12. © 2003, Russell Consulting, Inc. and UW Credit Union HistoryHistory –– Founded in 1931.Founded in 1931. •• 88 members, $2,500 in assets.88 members, $2,500 in assets. –– 90,000 Members.90,000 Members. –– $650 million in assets.$650 million in assets. –– Third Largest Credit Union in Wisconsin.Third Largest Credit Union in Wisconsin. –– 10 Branches,10 Branches, •• Madison, 6 branches.Madison, 6 branches. •• Milwaukee, 2 branches.Milwaukee, 2 branches. •• Green Bay & Whitewater, campus branches.Green Bay & Whitewater, campus branches.
  • 13. © 2003, Russell Consulting, Inc. and UW Credit Union OurOur EnvironmentEnvironment –– Volatile EnvironmentVolatile Environment •• Strong tradition of member service.Strong tradition of member service. •• High Tech / High Touch.High Tech / High Touch. •• Increased competition with markets.Increased competition with markets. –– LocalLocal –– NonNon--traditional, internet, insurance companies,etctraditional, internet, insurance companies,etc –– Active and Progressive Board of Directors.Active and Progressive Board of Directors. •• Strong ties within UW Madison community.Strong ties within UW Madison community. •• Commitment to being “Employer of Choice”.Commitment to being “Employer of Choice”.
  • 14. © 2003, Russell Consulting, Inc. and UW Credit Union HR IssuesHR Issues –– Cultural Change OngoingCultural Change Ongoing •• Negotiate changeNegotiate change •• Introduce level of accountability.Introduce level of accountability. –– Shift in Business FocusShift in Business Focus •• Known as “Student Bank” in past.Known as “Student Bank” in past. •• “Order Takers” to “Retail Environment”.“Order Takers” to “Retail Environment”. •• Appropriate growth.Appropriate growth. –– Human Capital ImprovementHuman Capital Improvement •• Improve retentionImprove retention •• Attract talentAttract talent •• Performance measurementPerformance measurement •• Skill trainingSkill training
  • 15. © 2003, Russell Consulting, Inc. and UW Credit Union Data DrivenData Driven DecisionsDecisions –– Critical Measures (BalancedCritical Measures (Balanced Scorecard)Scorecard) •• Member MeasuresMember Measures –– Satisfaction, retentionSatisfaction, retention •• FinancialFinancial –– ROA, OPM, Deposit Growth, ETAROA, OPM, Deposit Growth, ETA •• Staff SatisfactionStaff Satisfaction •• Compensation/RewardsCompensation/Rewards •• Internal Customer SatisfactionInternal Customer Satisfaction
  • 16. © 2003, Russell Consulting, Inc. and UW Credit Union What is the HR Dashboard?What is the HR Dashboard? The UW Credit Union’s HR Dashboard is a panel of indicatorsThe UW Credit Union’s HR Dashboard is a panel of indicators that present a reading of the relative health/satisfaction ofthat present a reading of the relative health/satisfaction of credit union employees on three dimensions:credit union employees on three dimensions: QWL Score, CoreQWL Score, Core Values,Values, andand Overall Job SatisfactionOverall Job Satisfaction..
  • 17. © 2003, Russell Consulting, Inc. and UW Credit Union Why an HRWhy an HR “Dashboard?”“Dashboard?” 1.1. Traditional employee surveys too infrequent.Traditional employee surveys too infrequent. 2.2. Desire to stay connected to employees.Desire to stay connected to employees. 3.3. The need for timely feedback.The need for timely feedback. 4.4. Desire to establish measurable targets.Desire to establish measurable targets. 5.5. The importance of leadership accountability.The importance of leadership accountability. 6.6. Enable HR and leadership to make adjustmentsEnable HR and leadership to make adjustments along the way.along the way. 7.7. A desire to communicate progress on keyA desire to communicate progress on key indicatorsindicators alongalong the way.the way. 8.8. Ensure organizational alignment.Ensure organizational alignment.
  • 18. © 2003, Russell Consulting, Inc. and UW Credit Union PrePre--ConditionsConditions 1.1. Clarity of vision.Clarity of vision. 2.2. Culture of accountability.Culture of accountability. 3.3. Integrated performance managementIntegrated performance management system.system. 4.4. Technological capability.Technological capability. 5.5. Intelligent use of the HR Dashboard.Intelligent use of the HR Dashboard.
  • 19. © 2003, Russell Consulting, Inc. and UW Credit Union Clarity of VisionClarity of Vision Organizational Alignment CriticalOrganizational Alignment Critical •• Purpose:Purpose: “Working for members to enable their financial“Working for members to enable their financial dreams.”dreams.” •• Strategic Position:Strategic Position: “Grow through respect in our marketplace, and“Grow through respect in our marketplace, and by developing relationships through customerby developing relationships through customer intimacy.”intimacy.”
  • 20. © 2003, Russell Consulting, Inc. and UW Credit Union Culture ofCulture of AccountabilityAccountability •• Core ValuesCore Values –– Act in the members' best interestAct in the members' best interest –– Embrace ChangeEmbrace Change –– EducationEducation –– TeamworkTeamwork –– Work/Life BalanceWork/Life Balance •• Staff perception measured on regularStaff perception measured on regular basis.basis. •• Leadership expectations definedLeadership expectations defined –– Multiple feedback mechanisms utilized includingMultiple feedback mechanisms utilized including 360 degree feedback.360 degree feedback.
  • 21. © 2003, Russell Consulting, Inc. and UW Credit Union Integrated PerformanceIntegrated Performance Management SystemManagement System •• Traditional performance appraisal system disbandedTraditional performance appraisal system disbanded in mid 1990’s.in mid 1990’s. •• Compensation system not upCompensation system not up--toto--date, inadequatedate, inadequate merit type system.merit type system. •• Connections Process Implemented in 2001.Connections Process Implemented in 2001. –– Development of position accountabilities.Development of position accountabilities. –– Development of skill inventories.Development of skill inventories. –– Consistent & regular feedback, coaching, & alignment.Consistent & regular feedback, coaching, & alignment. –– The Cardwell Group, James Cardwell & Karla Norwood.The Cardwell Group, James Cardwell & Karla Norwood. –– www.connectionsonline.netwww.connectionsonline.net / 800/ 800--395395--1410.1410. •• Pay for performance compensation systemPay for performance compensation system implemented in 2002.implemented in 2002. –– Base payBase pay –– Bonus (Variable Reward)Bonus (Variable Reward)
  • 22. © 2003, Russell Consulting, Inc. and UW Credit Union TechnologicalTechnological capabilitycapability •• All staff must have sufficient access.All staff must have sufficient access. •• Use of intranet technologies.Use of intranet technologies. –– CommunicationCommunication •• UpUp--toto--date and relevant.date and relevant. •• Share results of data.Share results of data. •• Procedures, policies, training.Procedures, policies, training. –– Delivery system for “Connections.”Delivery system for “Connections.” •• Use of EUse of E--mail systemsmail systems –– Delivery of surveysDelivery of surveys
  • 23. © 2003, Russell Consulting, Inc. and UW Credit Union Intelligent Use ofIntelligent Use of DashboardDashboard •• Define uses for dashboardDefine uses for dashboard •• Summarize and organize dataSummarize and organize data •• Do not censure informationDo not censure information –– Complete data available on intranet site.Complete data available on intranet site. –– Maintain historical data.Maintain historical data. –– Do not share names of individuals mentioned in aDo not share names of individuals mentioned in a bad light.bad light. •• Continually reaffirm commitment to it.Continually reaffirm commitment to it.
  • 24. © 2003, Russell Consulting, Inc. and UW Credit Union Developing the HR DashboardDeveloping the HR Dashboard ComprehensiveComprehensive Employee Attitudes SurveyEmployee Attitudes Survey (EAS)(EAS) conducted in 1995, 1998, 2001, and 2003.conducted in 1995, 1998, 2001, and 2003.
  • 25. © 2003, Russell Consulting, Inc. and UW Credit Union Dimensions of the EASDimensions of the EAS •• Quality of Worklife DimensionsQuality of Worklife Dimensions:: leadership,leadership, communication, supervision, pay/benefits, etc.communication, supervision, pay/benefits, etc. [53 questions][53 questions] •• Core ValuesCore Values —— Measuring the “gap” betweenMeasuring the “gap” between actionsactions andand aspirationsaspirations.. •• Job Descriptive IndexJob Descriptive Index —— six dimensions.six dimensions. •• Overall Job SatisfactionOverall Job Satisfaction —— 1010--point scale.point scale. •• OpenOpen--Ended QuestionsEnded Questions —— (a) what people lik(a) what people likee bestbest about working for credit union and (b) ideas toabout working for credit union and (b) ideas to improveimprove QWL.QWL.
  • 26. © 2003, Russell Consulting, Inc. and UW Credit Union Quarterly HR DashboardQuarterly HR Dashboard 1.1. Quarterly SurveyQuarterly Survey —— (a) 20 questions, (b)(a) 20 questions, (b) five core values, (c) overall satisfaction,five core values, (c) overall satisfaction, and (d) two openand (d) two open--ended questions.ended questions. 2.2. Sample SizeSample Size —— 60 to 65 employees.60 to 65 employees. 3.3. ValidityValidity —— accurate +/accurate +/-- 1%.1%. 4.4. AdministrationAdministration —— ee--mail link to survey.mail link to survey. 5.5. ConfidentialityConfidentiality —— external consultant.external consultant. 6.6. ReportingReporting ResultsResults —— Three “instruments”Three “instruments” on the HR Dashboardon the HR Dashboard
  • 27. © 2003, Russell Consulting, Inc. and UW Credit Union Example Survey StatementsExample Survey Statements 665544332211 StronglyStrongly AgreeAgree AgreeAgree slightlyslightly agreeagree slightlyslightly disagreedisagree DisagreeDisagree StronglyStrongly DisagreeDisagree •• I feel pride and a sense of accomplishment in the work that II feel pride and a sense of accomplishment in the work that I do.do. •• I have input into how I perform my job.I have input into how I perform my job. •• I feel appreciated for the good work that I do.I feel appreciated for the good work that I do. •• My direct supervisor gives me clear performance expectationsMy direct supervisor gives me clear performance expectations that enable me to do quality work.that enable me to do quality work. •• The Credit UnionThe Credit Union’’s managers and supervisors have clearlys managers and supervisors have clearly communicated the future direction and goals of the Creditcommunicated the future direction and goals of the Credit Union to me.Union to me.
  • 28. © 2003, Russell Consulting, Inc. and UW Credit Union Example Value StatementsExample Value Statements •• Embrace changeEmbrace change: proactively seek improvement;: proactively seek improvement; anticipate and support change to meet corporateanticipate and support change to meet corporate strategies and goals; take calculated risks and learnstrategies and goals; take calculated risks and learn from experience.from experience. 665544332211 AlwaysAlways AlmostAlmost AlwaysAlways GenerallyGenerallySometimesSometimes AlmostAlmost NeverNever NeverNever CurrentCurrent 665544332211 AlwaysAlways AlmostAlmost AlwaysAlways GenerallyGenerallySometimesSometimes AlmostAlmost NeverNever NeverNever DesiredDesired The difference between “current” and “desired = A “gap of 2.0The difference between “current” and “desired = A “gap of 2.0
  • 29. © 2003, Russell Consulting, Inc. and UW Credit Union Overall Job SatisfactionOverall Job Satisfaction Considering everything, how satisfied areConsidering everything, how satisfied are youyou overalloverall with working at the University ofwith working at the University of Wisconsin Credit Union? Place a mark in theWisconsin Credit Union? Place a mark in the box that best reflects yourbox that best reflects your overalloverall jobjob satisfaction level here.satisfaction level here. 101022 77 88 99 VeryVery SatisfiedSatisfied 6655443311 VeryVery DissatisfiedDissatisfied
  • 30. © 2003, Russell Consulting, Inc. and UW Credit Union What is the HR Dashboard?What is the HR Dashboard? 3/033/03 The UW Credit Union’s HR Dashboard is a panel of indicatorsThe UW Credit Union’s HR Dashboard is a panel of indicators that present a reading of the relative health/satisfaction ofthat present a reading of the relative health/satisfaction of credit union employees on three dimensions:credit union employees on three dimensions: QWL Score, Core Values,QWL Score, Core Values, andand Overall Job SatisfactionOverall Job Satisfaction..
  • 31. © 2003, Russell Consulting, Inc. and UW Credit Union HR Dashboard -- QW L Dimensions for December 2002 Leadership Management Communication Pay & Benefits Empowerment Job Pride Work Environment Depart.Cooperation Employee Growth HR Scorecard Value HR Dashboard Scores for QWL Dimensions 5.004.904.804.704.604.504.40 4.72 4.64 4.73 4.77 4.92 4.50 4.74 4.61 4.89 4.62 Meets Far ExceedsQWL DimensionsQWL Dimensions Dashboard ValueDashboard Value Annual goals . . .
  • 32. © 2003, Russell Consulting, Inc. and UW Credit Union HR Dashboard: Composite QWL Score Time of Assessment December 02Sept. 02June 02March '02Dec. '01Sept. '01June '012001 Mean--HRDashboardQWLScore 4.8 4.7 4.6 4.5 4.4 4.3 4.2 4.1 Far Exceeds Meets
  • 33. © 2003, Russell Consulting, Inc. and UW Credit Union HR Dashboard: Overall Job Satisfaction Year of Employee Assessment December 02Sept. 02June 02March '02Dec. '01Sept. '01June '01200119981995 MeanOverallJobSatisfaction 7.8 7.6 7.4 7.2 7.0 6.8 6.6 6.4 6.2 Meets Far Exceeds March 2003 assessment = 7.94March 2003 assessment = 7.94
  • 34. © 2003, Russell Consulting, Inc. and UW Credit Union HR Dashboard: Composite Core Values Gap Note: The ideal "gap" between "what is" and "what should be" = 0 Year of Employee Assessment December 02Sept. 02June 02March '02Dec. '01Sept. '01June '012001 MeanCompositeCoreValuesGapScore 1.50 1.40 1.30 1.20 1.10 1.00 .90 .80
  • 35. © 2003, Russell Consulting, Inc. and UW Credit Union HR Dashboard: Core Values Gap Score -- Work/Life Balance Note: The ideal "gap" between "what is" and "what should be" = 0 Time of Employee Assessment December 02Sept. 02June 02March '02Dec. '01Sept. '01June '012001 GAP:Promoteaharmoniousbalanceofwork/non-work 1.6 1.5 1.4 1.3 1.2 1.1 1.0
  • 36. © 2003, Russell Consulting, Inc. and UW Credit Union HR Dashboard: Composite QWL Score -- Retail & Support Time of Employee Assessment December 02Sept. 02June 02March '02Dec. '01Sept. '01June '01200119981995 Mean 5.0 4.8 4.6 4.4 4.2 4.0 QWL Score Retail Support Far Exceeds Meets What happened after this assessment?
  • 37. © 2003, Russell Consulting, Inc. and UW Credit Union HR Dashboard: Overall Job Satisfaction Time of Employee Assessment December 02Sept. 02June 02March '02Dec. '01Sept. '01June '01200119981995 Mean 8.0 7.5 7.0 6.5 6.0 Retail Support Overall
  • 38. © 2003, Russell Consulting, Inc. and UW Credit Union HR Dashboard: Core Value Gaps -- Support & Retail Time of Employee Assessment December 02Sept. 02June 02March '02Dec. '01Sept. '01June '01200119981995 Mean 1.6 1.4 1.2 1.0 .8 .6 Composite Gap Support Gap Retail Gap Desired “gap is 0 What happened after this assessment?
  • 39. © 2003, Russell Consulting, Inc. and UW Credit Union Applying the DashboardApplying the Dashboard 1.1. HR programs and services.HR programs and services. 2.2. Managerial performance feedback.Managerial performance feedback. 3.3. Variable pay.Variable pay. 4.4. Lessons learnedLessons learned —— What did we do thatWhat did we do that worked? Didnworked? Didn’’t work?t work?
  • 40. © 2003, Russell Consulting, Inc. and UW Credit Union Applying the DashboardApplying the Dashboard 5.5. Relationship to other critical measures:Relationship to other critical measures: –– Member/Customer SatisfactionMember/Customer Satisfaction –– Member RetentionMember Retention –– Financial PerformanceFinancial Performance –– Employee SatisfactionEmployee Satisfaction –– Internal Customer ServiceInternal Customer Service 6.6. Focus of monthly management meetings.Focus of monthly management meetings. 7.7. Explore the differences between groupsExplore the differences between groups (retail vs. support).(retail vs. support).
  • 41. © 2003, Russell Consulting, Inc. and UW Credit Union Comparison of FinancialComparison of Financial Critical MeasuresCritical Measures Critical Indicators Line Chart Note: Each critical measure uses a different scale Time of Assessment Dec. 02Sept. 02June 02March 02Dec. 01Sept. 01June 01March 01 Mean 30 25 20 15 10 5 0 ROA OPM DG ETA QWL OJS
  • 42. © 2003, Russell Consulting, Inc. and UW Credit Union Employee Critical Measures toEmployee Critical Measures to Financial MeasuresFinancial Measures Financial 2001 2002 Critical Measures March June September December March June September December ROA 1.04% 1.10% 1.13% 1.21% 1.45% 1.57% 1.71% 1.62% OPM 18.40% 19.92% 20.55% 21.73% 25.60% 26.96% 27.74% 26.60% DG 7.09% 9.25% 16.57% 19.07% 4.66% 5.50% 13.59% 13.08% ETA 7.99% 8.14% 7.95% 8.15% 8.13% 8.24% 8.54% 8.35% Employee 2001 2002 Critical Measures March June September December March June September December QWL 4.15 4.22 4.27 4.21 4.47 4.47 4.61 4.72 OJS 7.6 6.94 6.82 6.72 6.42 6.42 7.09 7.51
  • 43. © 2003, Russell Consulting, Inc. and UW Credit Union Employee Critical Measures toEmployee Critical Measures to Customer Satisfaction MeasuresCustomer Satisfaction Measures Financial 2001 2002 Critical Measures March June September December March June September December Retention 88.87 na na 88.93% na na na 92.38% Member Service na 83.50% 83.50% 85.00% 83.75% 84.08% 84.95% 86.88% Employee 2001 2002 Critical Measures March June September December March June September December QWL 4.15 4.22 4.27 4.21 4.47 4.47 4.61 4.72 OJS 7.6 6.94 6.82 6.72 6.42 6.42 7.09 7.51
  • 44. © 2003, Russell Consulting, Inc. and UW Credit Union Differences Between RetailDifferences Between Retail and Support Departmentsand Support Departments •• 2001 kicked off retail training for frontline staff.2001 kicked off retail training for frontline staff. •• In order to be member focused, we needed to beIn order to be member focused, we needed to be “Frontline or Retail focused first”.“Frontline or Retail focused first”. •• Limited training for support staff.Limited training for support staff. •• Beginning of “Refi” boom.Beginning of “Refi” boom. •• Active improvement of retail managementActive improvement of retail management •• Reorganization of support staff & departments.Reorganization of support staff & departments.
  • 45. © 2003, Russell Consulting, Inc. and UW Credit Union Challenges/Lesson’s LearnedChallenges/Lesson’s Learned 1.1. Select the right measuresSelect the right measures —— and adjust as issuesand adjust as issues emerge.emerge. 2.2. Establish realistically challenging goals or targets.Establish realistically challenging goals or targets. 3.3. Present the HR Dashboard graphically: radialPresent the HR Dashboard graphically: radial dials, bar charts, and line charts.dials, bar charts, and line charts. 4.4. Provide guidance to leadership and staff in howProvide guidance to leadership and staff in how to interpret and respond.to interpret and respond. 5.5. Allow time for the HR Dashboard to tell the story;Allow time for the HR Dashboard to tell the story; dondon’’t move too quickly to make changes ort move too quickly to make changes or adjust your HR efforts.adjust your HR efforts.
  • 46. © 2003, Russell Consulting, Inc. and UW Credit Union Challenges/Lesson’s LearnedChallenges/Lesson’s Learned 6.6. Use openUse open--ended comments carefully.ended comments carefully. 7.7. Anchor the quarterly assessments with periodicAnchor the quarterly assessments with periodic assessments of the entire employee population.assessments of the entire employee population. 8.8. If using the HR Dashboard in variable compensation:If using the HR Dashboard in variable compensation: (a) use as only one component and (b) test the HR(a) use as only one component and (b) test the HR Dashboard methodology for at least one full year toDashboard methodology for at least one full year to test its volatility and its responsiveness to managerialtest its volatility and its responsiveness to managerial actions.actions. 9.9. Use the HR Dashboard to help you identify areas ofUse the HR Dashboard to help you identify areas of ““high leveragehigh leverage”” for effecting change in employeefor effecting change in employee attitudes.attitudes.
  • 47. © 2003, Russell Consulting, Inc. and UW Credit Union What is YOUR HR Dashboard?What is YOUR HR Dashboard? What are the key dials onWhat are the key dials on youryour HRHR dashboard?dashboard?
  • 48. Thank you!Thank you! For more information on the HR Dashboard andFor more information on the HR Dashboard and the UW Credit Union . . .the UW Credit Union . . . www.RussellConsultingInc.comwww.RussellConsultingInc.com www.uwcu.orgwww.uwcu.org For aFor a FREEFREE copy of our PowerPoint presentation (incopy of our PowerPoint presentation (in PDF format) go to:PDF format) go to: www.RussellConsultingInc.comwww.RussellConsultingInc.com