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Tracking Progress "All business people live, think and talk in numbers." Jac Fitz-enz 1. This briefing covers the measurement issues associated with demonstrating the effectiveness of HR to the business, including the achievement of business goals. 2. Only two thirds of respondents to Business Intelligence's survey have a written HR Strategy. 3. The most common basis for evaluating HR strategy is against service delivery. 4. Only around over a third of the sample overall have found that HR has made a positive contribution to the business as a result of a formal evaluation, whereas all of those who enjoy a high level of confidence from the business can demonstrate this achievement. 5. A case study on Eastern Health Services shows how measurement plays a central role in driving performance improvement. 6. Measurement criteria for evaluating HR's effectiveness and contribution to the business are outlined. Business Intelligence's research shows that of seven criteria for measuring performance, the most commonly used is service delivery (80 per cent). However, over two thirds also claim that HR is assessed on the basis of its contribution to corporate strategy. 7. A case study on Rockwater shows how the company adopted the Balanced Scorecard to reflect HR's strategic contribution, while the Champion International case shows how business-value creating performance targets were developed for its shared service operation. 8. How to reflect HR's contribution to the achievement of non-financial business goals such as innovation. 9. The pay off from systematic measurement of HR performance is found in the positive correlation with line managers' view of HR. 10. The case study on the Royal National Orthopaedic NHS Trust shows how a public sector organization integrates nationally mandated goals with local, high-priority performance priorities and measures. Cases: Eastern Health Shared Service, Rockwell, Allied Irish Bank, Royal National Orthopaedic Trust If you are a subscriber, click here to read the full briefing. Click here to find out how to subscribe. |
