Scorecards were first introduced to support business planning and measurement by Robert Kaplan and David Norton with their “Balanced Scorecard”.
From an “people” perspective, the business scorecard suffered, because all people objectives and measures are contained in the one perspective: people, or learning and growth.
A better basis for a “people”-related scorecard may be the Human Capital Scorecard described by Jac Fitz-enz in his book “The ROI of Human Capital.” The Example Human Capital Scorecard shown below is adapted from this.
The metrics included in this example are for example purposes only. There are literally hundreds of metrics that could apply to each area, but the one used for your organisation should be those relevant to your organisation.
The top and bottom layers are results layers and used as input to decision-making on further interventions. The main sections of the Human Capital Scorecard are the four quadrants in the middle. The Planning layer metrics are those related to overall return on investment in “human capital”. The Align layer metrics are those that measure the impact on people and management of the different investments, or interventions, made over the period.
The first quadrant deals with how people resources are Acquired. This may be though developing, hiring, and contracting. The age-old management decision framework of “make, buy, or rent”. The metrics used in this quadrant are about the results of the acquisition process.
The second quadrant is Support. These are the people-related investments made to retain and grow the value of the people “assets”.
The third quadrant is Development, and includes the metrics that show how people are developed and grown in the organisation.
The last quadrant is Retention, which includes metrics that indicate how well the organisation is retaining its top talent.
We use a Facilitated Process when assisting organisations to develop a Human Capital Scorecard.
One or more facilitated workshops (virtual or live when permitted) are held to better understand the relationship between organisation strategy and human capital (or people) strategy, and to understand the variety of metrics available and select those to be used in the first iteration – or the first Minimum Viable Human Capital Scorecard.
This is followed by a cycle of Accountability Coaching to oversee the implementation and monitoring of the effectiveness of the fist iteration Human Capital Scorecard.
To learn more about how we can help you create your Human Capital Scorecard, either complete the form below and we will be in touch directly, or set up an appointment to discuss your needs with Gail Sturgess.