The HR Scorecard: Linking People, Strategy, and Performance

The HR Scorecard: Linking People, Strategy, and Performance

Brian E. Becker, Mark A. Huselid, Dave Ulrich

Harvard Business School,

Boston, Massachusetts

2001

The book outlines a powerful measurement system for highlighting the role that human resources plays as a source of competitive advantage and a driver of value creation in a company. Builds on the proven Balanced Scorecard model, showing how to link HR's results to measures that gain respect such as profitability and shareholder value. Providing the tools and systems required for leading"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 resource's strategic role begins with designing an HR architecture-the HR function, the HR system, and strategic employee behaviours-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.