Most important organizational performance metrics

The Most Important
Organizational Performance Metrics:
What Every HR Organization Should Be Measuring…
Results Training Company
Dr. Lepora Manigault, SPHR, PMP, Six Sigma
Black Belt

Today’s Itinerary
Today’s Purpose
What Value Does
Your HR
Operation Bring?
What Is Wrong w/
HR?
Holistic &
Strategic
Approach
What Metrics Are
and Are Not…
Characteristics of
Metrics
The Importance
of Benchmarking
Balanced
Scorecard
Essential
HR Organizational
Metrics
What’s In a
Business Case?
Next Steps in
Metrics for Your
HR Operation
2

Why Are We Here?
Major Goals:
To improve HR and Human Capital by
way of measurement.
Elevate the Strategic level of HR.
4
770.367.5444 www.resultstrainingcompany.com

The Beneficial Journey of HR Metrics..
5
Measurement
Transparency
Navigation and Direction
Informed Decision- Making
Performance Improvement
Credibility

7
What Value Does Your HR Operation Bring?
Do You Motivate Great Performance?
Do You Increase the ROI?
Do you Keep Star Employees?

HR is considered
one of the
least strategic
departments in
organizations…
9

Why is the
missing link
of
HR
missing?
10

Where’s the Beef?
11
Your Data is Your Compass…
You must have it to Know Your Location.
Lack of data
=
lack of ability
to align with
CEO in:
•Priorities
•Projects
•Expected Performance
•Decisions

The First Step is Holistic Scanning…
People
Technology
Processes
Financial Resources
Customer
Structure
Competitive Environment
12

What Are the Causes and Effects?
13
Human
Resources
Programs
Individual Performance
Technological Access and Automation
Work Processes
Cost Saving and Revenue Growth
Customer Satisfaction
Supporting Organizational Structure
Competitive Advantage for Talent

HR Strategy Should
Directly Support the Corporate Strategy…
14
VISION
MISSION
GOALS
HR OBJECTIVES
CORPORATE
H
R

15

S.M.A.R.T.
16
SPECIFIC
MEASURABLE
ATTAINABLE
RELEVANT
TIME- BOUND

Build a Balanced Scorecard
that clearly reflects the performance level.
17
Good
Risky
Low

METRICS
• Numbers
• Information
• Tools
• Current Performance
• State of Condition
ANALYTICS
• Meaning
• Comprehension
• Application
• Future Performance
• Implications
18
Metrics vs. Analytics
METRICS
• Numbers
• Information
• Tools
• Current Performance
• State of Condition
ANALYTICS
• Meaning
• Comprehension
• Application
• Future Performance
• Implications

The Importance of Benchmarking
19
Know Your Competitors and Counterparts
Compete for Talent
Compete for Customers
Avoid Overpaying
Manage Relevant Metrics
Develop Realistic Metrics
Note: Benchmarking is only as beneficial as the level of similarity (apples to apples)

The Dollar Value of the Increased Workforce Productivity
between This Year and Last Year…
Organization Revenue (2010)
HR / Organization Expenses (2010)
22
Is there an organizational value of Continuous Improvement?
For example….
vs.
Productivity &Efficiency
Organization Revenue (2009)
HR / Organization Expenses (2009)

Employee Engagement
The % of employees who feel
that their managers exercise
expected management
behaviors
23

Quality of Hire
For example:
P+R
2 (N)
P = Average job performance rating of new hires
R = % of new hires retained after one year
N = number of indicators
Hiring
24

Diversity
The % of diversity hires
in
managerial and senior
positions
25
For Example:
Relative to Company Goals, Company Organization, City Population
Diversity

The Turnover Rate of “Star” Employees
% of employees to exit over past year
Number of employees in total organization
Star Employee: Rank above average on Performance Evaluation;
Identified Successor
Retention, Succession Planning
26

Succession Planning
% of critical positions
with
immediately identifiable
replacements
27

Incentive Compensation Differential
Monetary incentives to high performers-
Monetary incentives to low performers
Monetary incentives to high performers
Rewards
28
X 100%
There should be a stark difference between benefits
received by high performers and low performers

Staffing & Learning
% of goals on
Development Plan that
were completed on time
29

Staffing & Learning
% of Performance Appraisals
completed on time
30

Training ROI
31
Increased Revenue (Benefits) - Training Costs
Training Costs
Evaluate :
 Reactions
 Learning
 Behavior, and
 Results
X 100%
Staffing & Learning

Time To Start
TTS= RR- SD
TTS: Time until the new hire starts
RR: Date the requisition is received
SD: Date the new hire starts work
Recruitment
32

Legal/ Compliance
Costs of HR related litigation
33
May compare to prior year to identify trends, improvement, etc.

Legal/ Compliance
Average time for
HR dispute resolution
34
May compare to prior year to identify trends, improvement, etc.

QUALITATIVE DATA
Top reasons for
voluntary turnover
Retention
35

QUALITATIVE DATA
HR provides quality
consultative advice
HR Business Partner
36

Build a Solid Business Case
for EVERY Project..
Aligned with
Corporate Strategy
High Level Action Plan
(Executable)
Timeline & Milestones
Description of Initiative Rationale/ Purpose
Benefits/ Cost Ratio
(Healthy)
Alternative Options
Break Even Analysis &
Return On Investment
Budget

Alternative Options…
• Pros
• Cons
• Costs
• Solutions to Obstacles
38

Obstacles?
What are Your
Current Obstacles
to a
Better or New HR
Metrics
Program?
39

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Contact Info:
Dr. Lepora Menefee,
PMP, SPHR, Prosci, SSBB
lepora@resultsconsulting.net
www.resultsconsulting.net
www.drlepora.com
www.facebook.com/drlepora
www.twitter.com/drlepora
770.367.5444
New Book:
Journey to Authentic Joy
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Most important organizational performance metrics