The HR Scorecard: Linking People, Strategy, and Performance (Hardcover)

~ (Author), Mark A. Huselid (Author), Dave Ulrich (Author) "AS YOU BEGIN TO READ THIS BOOK, take a moment to reflect on your firm's human resources "architecture"-the sum of the HR function, the broader..." (more)
Key Phrases: recruiting cycle time, strategy implementation system, strategy implementation process, Balanced Scorecard, High-Performance Work System, General Electric (more...)

Editorial Reviews

Product Description

Providing the tools and systems required for leading a "measurement managed" HR architecture, this important book heralds the emergence of human resources as a strategic powerhouse in today's organizations.

Three experts in the field outline a powerful measurement system that highlights the indisputable role HR can play as both a prime source of sustainable competitive advantage and a key driver of value creation. They draw from an ongoing study of nearly 3,000 firms to outline a seven-step process they call an HR Scorecard, specifically designed to embed human resources systems within a firm's overall strategy and manage the HR architecture as a strategic asset. Building on the proven Balanced Scorecard model, they also show how to link HR's results to measures-such as profitability and shareholder value-that line managers and senior executives will understand and respect.

The authors argue that human resources's strategic role begins with designing an HR architecture-the HR function, the HR system, and strategic employee behaviors-that relentlessly emphasizes and reinforces the implementation of the firm's strategy. Using compelling examples from a variety of leading companies, they explain how to develop and implement an HR Scorecard in order to both manage the HR architecture as a strategic asset, as well as measure the contribution of that asset to firm performance.

From the Back Cover

"A compelling way to define and measure HR's effect on the bottom line. The book constitutes a breakthrough in thinking for the HR function."
-Paul McKinnon, Senior Vice President of HR, Dell Computer Corporation

"At the root of every business challenge or opportunity is a human issue. If you believe that, you must take seriously the challenge of strategically planning for, and measuring the results of, human resource work. The HR Scorecard will both challenge your thinking in this area and provide options that you can use today."
-Ralph Christensen, Senior Vice President of Human Resources, Hallmark Cards, Inc.

"A must-read primer for human resources professionals who view HR as critical to the success of their companies."
-Mike Tindall, Vice President of Strategic Measures, Prudential

"This fact-filled, thoughtful, well-researched book provides valuable insights on the most pressing issue facing organizations today: how to measure their human resource performance. In an economy increasingly based on knowledge and people, no executive can afford not to read this book."
-Jeffrey Pfeffer, Thomas D. Dee II Professor of Organizational Behavior at the Stanford Business School and Author of The Human Equation

"The HR Scorecard provides a language for HR professionals and line managers working together to really nail the connection between HR interventions and the firm's success."
-Susan Bowick, Vice President and Director of Human Resources, Hewlett-Packard

"The HR Scorecard demonstrates how improved measurements play a vital role in linking human resource initiatives to business strategies and to significant increases in shareholder value."
-Robert Kaplan, Marvin Bower Professor of Leadership Development, Harvard Business School and Coauthor of The Balanced Scorecard and The Strategy-Focused Organization

"This book serves as a tremendous strategic tool for HR functions to showcase their impact on the business. If you want to succeed in the new economy as a high-performing HR strategic partner, I recommend you read this book."
-Robyn Ewing, Senior Vice President of HR, Energy Services, Williams

"A must-read for all HR executives. Full of useful findings, methods, measures and examples."
-Edward E. Lawler III, Author of Rewarding Excellence

"The HR Scorecard is the definitive guide for today's human resource professional. It provides perfect insight into a field that has been under much scrutiny and in great need of change."
-Milano Reyna, Worldwide Human Interests Director, Saatchi & Saatchi

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Product Details

• Hardcover: 235 pages
• Publisher: Harvard Business Press; 1 edition (March 2001)
• Language: English
• ISBN-10: 1578511364
• ISBN-13: 978-1578511365
• Product Dimensions: 9.1 x 6.1 x 0.8 inches
• Shipping Weight: 1.3 pounds (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (23 customer reviews)
• Amazon.com Sales Rank: #35,697 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

39 of 40 people found the following review helpful:

5.0 out of 5 stars Essential for the Serious HR Leader's Library, June 28, 2003

By	Libby Sartain (San Carlos, CA USA) - See all my reviews

As a seasoned HR professional, I have spent the last decade looking for the "Holy Grail" of H.R. Metrics. My quest is not over after reading The HR Scorecard, but the book presented many helpful concepts and tools that we can use to measure the effectiveness of HR as a function, to measure R.O.I. on talent and talent initiatives, to measure the impact of HR on organizational performance, and as a basis for business case development of our deliverables.

Three well respected thought leaders in the HR field have conducted extensive research of more than 2500 companies to uncover a model for implementing HR strategy and measuring results. If fully employed HR will deliver results linked to higher functional and organizational performance.

To transform the structure of HR into a strategic function, HR leaders must:

1. Clearly define the business strategy.
2. Build a business case for HR as a strategic asset.
3. Create a strategy map (with leading and lagging indicators, and tangibles and intangibles.)
4. Identify HR Deliverables within the strategy map.
5. Align the HR architecture with HR deliverables.
6. Design the strategic measurement System.
7. Implement management by measurement.

The concepts in this book are useful but may not be practical for all HR leaders. This book is for organizations that have the resources to implement an in-depth system of measuring their HR performance. It is not a way to create a simple snapshot to be included in business reviews. While the authors suggest using no more than 25 measures so as not to create a burdensome systems, many of the examples in the book are quite complex and can by used only by the largest of organizations. It is also difficult to pick just a few efficiency measures and performance drivers from the comprehesive list prepared by the authors.

Real life examples of scorecards are shown from organizations such as Verizon/GTE, General Mills, and General Electric. While these examples can help any size HR department think through how to measure the performance of their function, I would like to see a smaller organization profiled with more simple measures.

This book should be in the library of all serious HR practitioners. It is well written, well researched, and well presented. If the tools and concepts are implemented, the HR function can rise to a new level. For those in smaller organizations, a few HR efficiency measures can be gleaned to build a simpler scorecard based on the key HR deliverables for the enterprise.

14 of 14 people found the following review helpful:

4.0 out of 5 stars Help for a changing field, May 30, 2001

By	Anne S. Headley (University Park, MD United States) - See all my reviews (REAL NAME)

No fluff here! This book outlines, then defines a paradigm for effective HR functioning within a changing organization. The authors suggest and document that increased measurement of key data will lead to enhanced value to the organization and its customers. Yesterday's model of HR tasks is no longer enough. This book can guide the experienced human resource professional into a new role in strategic implementation.

I'm a career counselor, not a human resources professional. I hear plenty of stories of burn-out and disillusionment in the field, probably because the tasks and obligations of the HR field have changed as drastically as any. This book can provide a re-education to those who wonder what is going on, and why yesterday's solutions just don't work.

I would have welcomed a personal-type note to the individuals caught up in transitions. The authors have provided information, but have not offered encouragement. It would have been a definite plus to this impressive publications.

9 of 9 people found the following review helpful:

4.0 out of 5 stars Practical information that will yield immediate benefits, March 27, 2002

By A Customer

I've had a lot of experience with the Balanced Scorecard and was thus very interested to read Becker, Huselid, and Ulrich's take on the subject and how performance measures can be successfully applied to the HR arena. The book is very well laid out, thoughts are presented in a logical fashion, and the advice is nearly immediately applicable. Not only do the authors guide you through the steps necessary to apply the Scorecard to HR but they provide invaluable insights on what is necessary for the HR organization of today to become true "strategic business partners." The HR competencies they put forth will be critical for future HR leaders. I was also pleasantly surprised at the amount of what I might term supplemental information contained in the book. For example, in chapter 8 they provide great insights into what it takes to successfully implement a major change project. In another section of the book they discuss the principles of good measurement - that will help organizations adopting a Scorecard in any area of their business.