Verizon Communication, Inc

7/31/2019 Verizon Communication, Inc

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VERIZON COMMUNICATION, INC.:

IMPLEMENTING A HUMAN RESOURCESBALANCED SCORECARD


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QUESTIONS

Why GTE has to change?

What kind of changes GTE did?

What are the HR alignment GTE has to carryout in order to support changes?

How did the HR Department at GTE executethe imperatives to change?


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WHY GTE HAS TO CHANGE?

Compete with new markets, facinggreater competition for customer


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WHAT KIND OF CHANGES GTE DID?

Strategy

New strategy direction domestic strategywas to profitably offer a complete bundle ofhigh-growth telecommunication servicenationwide

Created a nation sales and marketing

organization


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Customer Turnover and Employee Turnover

Customer turnover: customer changed theirservice provider at least once

Employee turnover: as a result, quality ofcustomer service declining.

The value of employees Workforce as a key part of its ability to operate

well in the new environment.


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WHAT ARE THE HR ALIGNMENT GTE HAS TO

CARRY OUT IN ORDER TO SUPPORT CHANGES?

There wasnt any real system to measure

employees performance

Balance Scorecard as a framework forassessing an organizations performance


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HOW DID THE HR DEPARTMENT AT GTE EXECUTE

THE IMPERATIVES TO CHANGE?

GTEs Strategic Framework

5 strategic thrusts:

talent, leadership, customer service andsupport, organizational integration,

human resource capability.


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MEASURE

Performance measures were developed on thebasis of questions relate to workforce issues.

At 1999, the scorecard went live, performance

began to be recorded, measured, andmethodology for communicating the results toHR employees was also established.

The measure were organized into fourperspective: Strategic Perspective, CustomerPerspective, Operation Perspective, andFinancial Perspective.


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INDEXING

Scorecard was designed to enable the HRdept. to combine performance on dissimilarmeasure into summary, quantitative results.

Require two things:

Establishing a target for each measure

Weighing the measures


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COMMUNICATION

Communication the result of BalancedScorecard was viewed as key to success.

HR Dept. acquired software (PbViews) ascommunication media.

Linked data, allowed people to look at data fromthe top down or from the bottom up.

Other computer files


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REVIEW PROCESS

After 6 months operating, the first half of1999, the changes in business strategy weremaking some of the measures useless.

Business environment changesperformance level needed to changesome of targets had to change.


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FINANCIAL PAYOFFS

Balanced Scorecard, whether could establish adirect relationship between performance oncertain non-financial measures and financial

outcomes.


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Reducing the separation rateEmployee turnover is critical to productivity andexpense control. High turnover results in lowerproductivity, higher training, staffing and occupationalhealth costs. The impact is across the board and

affects business profitability.

Reducing the absence rate drilling down in the data

managements attitude toward it

Other linkages


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LINK TO COMPENSATION

Notable thing that was done was to tie BalancedScorecard results immediately to HRemployees compensation.

Compensation of HR department was set toaverage 10% of base pay. For executives, 25-40% of base pay.

Half of compensation was tied to performanceand the other half tied to financial performance

of the company as a whole. Some HR employees didnt like the scorecard

linkage.


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ISSUES

Lack of employee engagement

uncondusivework environment


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SOLUTION

Maximizing employee performance in:

Leadership practices

Employee engagement

Knowledge accessibility

Workforce optimization

Learning capacity

Documents

Verizon Communication, Inc