CUPA Conference

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CUPA Conference Creating Measures that Matter
February 8, 2007 Cathy Missildine-Martin,
SPHR
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Strategy
Strategic Question Benchmarking? Metrics that
matter are not the same from company to company
because they are tied to YOUR companys strategy
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STEP 3 Human Resources Strategy Map
HR MISSION
We provide quality HR services to attract,
develop, motivate and retain a diverse
workforce within a supportive work environment.
We do this with an emphasis on customer
service based on consultation and communication
HR VISION
Provide the highest quality support services to
make XYZ the company of choice for learning and
working.
FINANCIAL
CUSTOMER
Reduce certain HR related costs
Enhance the value and return On HR investment
Improve Customer Satisfaction
COMPLIANCE
OPTIMIZE MOTIVATE WORKFORCE
ORGANIZE FOCUS ORKFORCE PLANNING
IMPROVE OPERATIONAL EFFECTIVENESSOF HR RELATED
PROCESSES
Enhance diversity Among workforce
Improve Satisfaction With XYZ As an employer
Improve employee commitment
Succession Planning
Workplace Planning
INTERNAL
Reduce risk
Improve HR Processes fairness
HR Process Improvement
Strengthen Recruit hire of good fit
Strengthen Rewards Recognition Program
Enhance Accountability
Create, model Performance Management
communication Best practices in HR
Improve Employee commitment/ Retention in HR
Enhance HR Staff Knowledge Skills In Strategic
Areas
LEARNING GROWTH
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Strategic Question
Are you a people-oriented business? Entire
companies or business units-with 1) cost of
people significantly exceeds the cost of capital
2) a high ratio of employee costs to capital
costs and 3) limited spending on activities such
as RD Felix Barber and Rainer Strack Harvard
Business Review, June 2005 People oriented
businesses have different metrics than
traditional capital oriented businesses
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Capital vs. People Business
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• You must have a clear connection between your
  metrics and your business results
• Can your metric pass the following criteria?
• Does it have a direct/indirect impact on
  revenue?
• Does it have a direct/indirect impact on costs?
• What is the action that you will take based on
  the result?

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Impact Example
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• In our experience, when creating measures that
  matter, you must ask these important questions
• Is this company a people oriented business?
• Does the metric have an impact on results?
• Does the metric measure efficiency or
  effectiveness?
• Are the metrics balanced?
• Are you going to take action on each metric?

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• Client Example
• HR Metrics Used Time to Fill, Cost per Hire,
  Reqs filled, Training days per quarter, of HR
  Staff with SPHR
• What is wrong with the metrics used?
• All efficiency-no effectiveness
• Not balanced-All people oriented
• Cant tell-What is the strategy?
• All of the above

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Company XYZ HR Scorecard
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• Avoid these Metric Pitfalls
• Collecting too much data so that you cannot focus
  on the metrics that matter
• Make sure that metrics are tied back to your
  strategy
• Relying on poor data
• Make sure data is objective and statistically
  sound
• Focusing on metrics that are short term in nature
  like those preferred by Wall Street
• Use balance scorecard approach so you have a
  holistic view
• Harvard Business School, Michael Sisk

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The economics of people-intensive businesses
call not only for different metrics but also for
different management practices. For instance,
because even slight changes in employee
productivity have a significant impact on
shareholder returns, human resource management
is no longer a support function, but a core
process for line managers. Felix Barber and
Rainer Strack Harvard Business Review, June 2005
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