METRICS FOR MEASURING HR EFFECTIVENESS - HR SCORE CARD Presented by Ken. Vijayakumar

METRICS FOR MEASURING HR EFFECTIVENESS - HR SCORE CARD

Presented by Ken. Vijayakumar

Why measure HR effectiveness

In HPCL Context

How does HR Add Value to Business(alignment with business)

How is effectiveness of HR measured

Agenda

Why measure HR effectivenessAlignment of HR with Business

Distinctive Competence

To achieve our strategy, what are the key things we need to do exceptionally well in order to achieve our competitive advantage.

Workforce Capability

What are the key capabilities that our workforce needs to excel in order to achieve our business strategy?

Strategy

What are our strategic and business objectives?

HPCL Model for alignment with business

Strategic partner

(Management of Strategic Human Resources)

Change Agent

(Management of Transformation

and change)

Administrative expert

(Management of Organisation infrastructure)

Employee champion

(Management ofEmployee contribution)

Future/strategic focus

Day-to-day operational focus

Peo

ple

Pro

cess

es

The Dave Ulrich Model

HR as Change Agent

Change Agent

(Management of Transformation

and change)

Future/strategic focusP

eop

le Fo

cus

Project ‘ACE’ as a Change Initiative

Project ‘ACE’ – Achieving Continuous Excellence ( An Organizational Transformation Initiative)

A comprehensive exercise of co-creating a vision and cascading it across all levels (based on principles of Learning Organization propounded by Peter Senge)

Series of ACE (visioning) workshops conducted starting from Top Management down to Regional levels.

Learning Organization workshops being conducted across all the levels including staff (introduction to five disciplines and its application)

Project ‘ACE’ as a Change Initiative

Project ‘ACE’ – Achieving Continuous Excellence ( An Organizational Transformation Initiative)

Leadership Workshops

People involvement in Strategy

Involvement of front line officers witnessing the ‘moment of truth’ in the strategizing process.

Strategies formulated for Retail and LPG SBU’s and HR with the involvement of over 500 front line officers.

HR as Strategic Partner

Strategic partner

(Management of Strategic Human Resources)

Future/strategic focusP

roce

sses

Fo

cus

Balanced Scorecard as a Strategic Initiative

CURRENT REALITY

Learning and Growth

Internal Processes

Customer

Financial Improved Profitability

Satisfied Customer

Customer Centric Processes

Improved People Competencies

Strategic tool for translating vision into clearly articulated strategy and cascading the same to different SBU’s and levels through scorecards.

Why measure HR effectivenessCompetency Mapping and Development as Strategic Initiative

A Strategic process to build people capabilities in line with international benchmarks to meet future business challenges.

Competency Frameworks developed in line with international standards Behavioral Competency Framework for all levels Technical Competency Framework for all job families

Development Centers for assessing individuals against competency profile for the position.

Trained and Certified Internal Assessors

Behavioral Competency Framework

A

LEADERSHIP FRAME

B

C

D

INDIVIDUAL CONTRIBUTOR FRAME

Dynamic Customer FocusDynamic Customer Focus

Active Learning and AgilityActive Learning and Agility

Cooperative TeamworkCooperative Teamwork

Enduring Commitment Enduring Commitment and Initiativeand Initiative

Drive for Excellence Drive for Excellence

Creating Customer DelightCreating Customer Delight

Leading Change and CreativityLeading Change and Creativity

Building Collaborative PartnershipsBuilding Collaborative Partnerships

Promoting Synergistic TeamworkPromoting Synergistic Teamwork

Demonstrating Business Savvy and DecisivenessDemonstrating Business Savvy and Decisiveness

Driving Results and ExcellenceDriving Results and Excellence

Building Global and Strategic PerspectiveBuilding Global and Strategic Perspective

E

F

G

H

I

GR

AD

ES

AT

HP

CL

1

2

3

4

5

6

7

1

2

3

4

5

Competency Based Training

Junior Management Middle Management Top Management

Concurrently address Behavioral and Technical Competencies

Weightage to Behavioral and Technical Competencies

Managing Leading

TRAINING NEED IDENTIFICATION

Individual Development Plans (competency gaps)

As spelt out by SBU’s in line with business

requirements

BehavioralBehavioral TechnicalTechnical

Six Sigma as a Strategic Initiative

A Strategic initiative to review the critical business processes and initiate continual improvements to the same basis scientific methodology.

Critical Business / Technical Processes identified for improvements.

Six Sigma Projects were selected to address these critical processes in Refineries / LPG Plants / Terminals.

General Electric Experts are mentors for all the projects to monitor progress till completion.

HR as Administrative Expert

Administrative expert

(Management of Organisation infrastructure)


Pro

cess

es F

ocu

s

HR as Administrative Experts - Initiatives

Leveraging Information Technology Enterprise Resource Planning (ERP) leveraged for prompt

employee service. Leveraging technology to provide access to employee

information through intranet. Finger touch Kiosks at major locations to help non-

management employees access their personal information.

Leveraging IT for creating a Learning Organization Experience Sharing enabled through intranet. Knowledge database created on different portals on intranet.

HR as Employee Champion

Employee champion

(Management ofEmployee contribution)


Peo

ple F

ocu

s

DGM’s as Mentors to different regions

Role of facilitating effective performance reviews and feedback.

Act as a management representative to communicate management philosophy, priorities and initiatives to employees at large.

Highlight issues of concern at regions to the management.

360 Degree Multi-rater Feedback System

To provide officers with an all round feedback from various individuals interacting with them , giving insights into their managerial/leadership behavior displayed at workplace

HR as Employee Champion - Initiatives

Employee Survey to understand the dimensions of employee engagement that drive business outcomes

Annual Employee Survey across all locations of the Corporation in partnership with The Gallup Organization .

Project Darpan - Gauging Employee Engagement

Investment in HR processes and initiatives need to culminate into business results, and therefore the need to measure HR effectiveness

Meets demands for external accountability ( CEO, Business Heads )

Establishes clear, significant mission and goals

Fosters strong sense of internal accountability

Measuring HR effectiveness

A quantifiable measure (not the measurement itself) made over time, which communicates vital information about the quality of a process, activity, or resource.

Can be subjective, relative or absolute

Metric – A basic definition

Aligned with Business Actionable and Predictive Consistent Simple, understandable, logical and repeatable Unambiguously defined Capable of tracked over time Capable of comparison (external benchmarks) MOST IMPORTANTLY – It should drive

appropriate action

Characteristics of a good metric

What gets measured is what gets done


Selecting the right metric is the key to success (A wrong metric can destroy value in medium term)

Common Mistakes in design and use of metric include:

Metrics for the sake of metrics (not aligned) Too many metrics (no action) Metrics not driving the intended action No record of methodology No benchmarks

Selecting the ‘RIGHT METRIC’


HR Scorecard linked to Corporate Scorecard

Measuring HR effectiveness at HPCL

Balanced Scorecard Methodology


Define Business Strategy (Corporate Scorecard) Outline Company’s Value Chain

(Activities companies undertake to create value to Customers)

Identify strategically required organizational outcomes

Identify required employee competencies and Behaviors

contd…..

Developing HR Scorecard – The process


Identify strategically relevant HR Systems, policies and initiatives.

Design HR Scorecard Measurement System Periodically evaluate the measurement system Periodically review the way HR matrices are

reviewed

Developing HR Scorecard – The process

HP HR

THE HRD SCORECARD

THE IR SCORECARD

HRD Financial Matrices (examples)

Scorecard Key

Strategic Objectives Metrics Description

F1 Management value add

Value added per management employee

Measures utilization efficiency of employee resource

IR Financial Matrices (examples)

Scorecard Key


F1a Reduce incidents of and downtime due to labour disputes

Incidents of labour disputes

Measures number of labour disputes in the period

F1b Reduce incidents of and downtime due to labour disputes

Total man-days lost due to labour disputes

Measures the total number of man-days lost due to labour disputes

F2 Resolve IR related legal cases

Number of IR related legal cases resolved

Measures the total number of IR related legal cases resolved during the period

F3 Optimize workmen productivity

Non-management employee productivity index

Index measures the aggregate company level non-management productivity as weighted average of SBU level productivity(throughput per non-management employee)

F4 Optimize legal and dispute settlement cost

Overall legal and dispute settlement cost

Measures the total cost incurred in resolution of labour disputes through settlement and legal cases

HRD Customer Matrices (examples)

Scorecard Key


C1 Competent Management employees

Management employee competency levels

Measures overall improvement in employees competency levels

C2a Management employee and Retired employee delight

Management employee satisfaction index

Employee satisfaction index measures the satisfaction levels of management employees

C2b Management employee and Retired employee delight

Number of unresolved complaints

Measures the number of unresolved complaints from retired employees

C3 Reduce employee attrition

% attrition among high performers

Measures attrition rate among high performers in the organization

C4 Inter-SBU coordination

Number of exceptions to SLAs

Measures the number of exceptions agreed to and signed with other SBUs and departments

C5 Acceptance and ownership of new initiatives

Delay in implementation of new initiatives

Measures the implementation effectiveness of new initiatives

IR Customer Matrices (examples)

Scorecard Key

Strategic Objectives

Metrics Description

C1a Satisfied and flexible workmen

Non-management employee satisfaction index

Metric measures the satisfaction levels of non-management employees through annual survey carried out by an external agency

C1b Satisfied and flexible workmen

Instances of vacancy filling by existing manpower

Metric measures the number of non-management vacancies that are filled up by re-deploying existing manpower

C2 Constructive employee unions and association

Net positive unions Measures the net number of positive unions (unions for which number of issues taken to conciliation stage as percentage of memberships is less than benchmark number)

C3 Inter SBU co-ordination

Number of exceptions to SLAs

Measures the number of exceptions to SLAs agreed and signed with SBUs and other departments

C4 Enlightened line managers

Pre and post training evaluation

Measures the effectiveness of IR training progg. through pre and post training progg. evaluation of line managers

HRD Processes Matrices (examples)

Scorecard Key


P1 Organisation Design Alignment

Delay in implementation of changes to the organization structure beyond scheduled time frame

Measures the delay in implementation of changes to organization structure that have been proposed to, and accepted by Management

P2 Manpower Planning Percentage shortfall or excess manpower

Measures the efficiency of manpower planning process by determining deviation of actual number of employees from required manpower strength

P3 Job evaluation & competency fit

Average competency gap Measures the effectiveness of human resource allocation by comparing the competencies required for position with competencies exhibited by incumbents

P4 Talent attraction and retention

Average CGPA of applications received during campus recruitment

Measures the attractiveness of HPCL to best talent

IR Processes Matrices (examples)

Scorecard Key

Strategic Objectives

Metrics Description

P1a Legal Management

Percentage of disputes at conciliation stage that go into judicial process

Metric measures the effectiveness of preventive legal management as percentage of cases that got resolved prior at conciliation stage

P1b Legal Management

Number of exceptions to legal management process

Measures the violations made to the internal documented legal management process

P2 Statutory compliance management

Number of exceptions to IR related regulations

Measures the number of exceptions to IR related statutory laws and norms

P3a Proactive union management

Measures the number of strong union leaders converted from negative to neutral or positive bias

Measures the effectiveness of union management as a number of strong union leaders converted from negative bias to neutral or positive bias (polarity to be defined by ED-IR based on parameters like number of disputes raised with third party, agitation and aggressive behavior etc

HRD Learning & Growth Matrices (examples)

Scorecard Key


L1 Quality of HR talent Competency score of HR department

Measures overall score of HR employees on identified competencies

L2 IT integration of HR processes

Number of online HR processes and procedures

Measures the number of HR processes and procedures that can be accesses by employees online

L3 Knowledge Management

Knowledge Management system set-up

Milestone metric measures the setting up of a Knowledge Management system

L4 Strategic thinking HR strategic thinking score

Measures average score of HR senior management on strategic thinking

Competent Management Employees

Management Value Add

Competency Development Processes

Quality of HR Talent(to design appropriate competency development initiatives

Financial

Customer

Internal/business process

Learning and growth

Value Creation Example - HRD

Constructive employee unions and association

Reduce incidents of and downtime due to labour disputes

Proactive union management

Strategic Thinking(to anticipate implications of present actions and take proactive steps)

Financial

Customer

Internal/business process

Learning and growth

Value Creation Example - IR


Show contributions of selected HR projects Earn respect of senior management Gain the confidence of clients Improve support for human resources Enhance HR processes Identify processes for mid term corrections Identify successful HR projects Forecast HR project success

Payoff’s of measuring HR effectiveness


Values co-created and adopted by HP HR Team

Finally , create a Value System for HR

Respect the individual Honor your commitments Work in Teams


If we’re not keeping score, we’re just

practicing.

Vince Lombardi20th century football coach

Thank You

Documents

METRICS FOR MEASURING HR EFFECTIVENESS - HR SCORE CARD Presented by Ken. Vijayakumar