From BSC to Metrics

1. The rationale of the Balanced Score Card is based on the idea that there should be a
causal link between successful implementation of key initiatives within an organization,
broadly grouped according to the following “perspectives” – People and innovation;
Internal Processes and Systems; Customers and Stakeholders as well as Finance. The
causal links between these are outlined below:
Strategic
Value
Proposition
Strategic
Value
Proposition
Based on the “right story” you can set the correct objectives….Based on the “right story” you can set the correct objectives….

2. Strategic
Value
Proposition
Strategic
Value
Proposition
The People Management Story – The Generic Objectives
FINANCIALS 16. Optimise the cost per
hire
17. Optimise the following:
a. H&S Expense per FTE
b. Industrial Dispute
Absence Days per FTE
14. Optimize Employee
engagement and
correlate with retention
and productivity
measures
19. Benchmark and improve
Return on Human
Investment Ratio
STAKEHOLDERS 12. Set targets for
Customer satisfaction
with quality of the
workforce and
availability of right
competencies – set
targets for improvement
13. Set Targets for
Customer satisfaction
with quality of HR
support, advice and
efficiency - set targets
for improvement
14. Set targets for
improving on the
standing of the business
as employer of choice
and top performer in
terms of KING III or
relevant guidelines
15. Align priorities in action
with the espoused
values of the business –
implement interventions
for change – include
corp citizenship and BEE
INTERNAL BUSINESS
PROCESSES &SYSTEMS
6. Institute/Review/
7. Update the Workforce
Planning System,
based on:
a. Clear job profiles (incl
competencies)
b. Supply and demand
c. Link to succession and
talent management
7. Develop/review
employment brand
strategy, recruitment
and selection system
and processes and
train all role players in
this
8. Develop and
implement retention
strategy
9. Develop/review and
implement
performance
management &
learning and
development system
– create structure and
process to support
10. Implement EVP
11. Develop/review and
implement succession
management that:
a. Identifies succession
risks and bench
strengths
b. Readiness thresholds
c. Development paths
d. EVP per position
a. Ensure cross functional integration of the total HCM value chain by implementing appropriate systems
PEOPLE AND INNOVATION 1. Define talent
populations – answers
the question who is
our talent
2. Define What Would It
Take To Succeed Here
Model – answers the
question of what
characteristics talent
have
3. & 4.
Review the organization design, and structure and define:
a. Talent pipeline
b. The competencies (competency models) for the pipeline
c. The assessment instruments to identify and develop
people in the pipeline
5. Define the desired
leadership and
performance climate
- answers the question
related to optimizing
performance and
contribution
PROPOSED METRICS TO TELL THE
PEOPLE MANAGEMENT STORY
PROPOSED METRICS TO TELL THE
PEOPLE MANAGEMENT STORY
Perspective Metric Explanation Formula/Example
PEOPLE AND INNOVATION
Distribution of talent pool
performance
Numeric, per qualification,
performance distribution of
employees per talent pool
% of specific variable in relation to
other variables
Demographic mirroring of talent
pool(s)
Representation of groups, in relation
to total talent pool – consider gender,
BEE, disability etc.
% of specific variable in relation to
other variables
Bench strength
Metric used to gauge the number of
successors are possible for any given
position(s)
Example: there are 14 qualified
successors for level 1 executives
Engagement Index
Relative measure of employees’
engagement in their work.
Survey Results
High Performer Growth Rate
Percentage of performance appraisal
participants whose rating improved to
a “high”
rating from a previous rating that was
less than “high.”
Performance Appraisal Participants
Rating High / Performance Appraisal
Participants Previous Rating Non-High
* 100
Readiness Ratio
Number of Potential Successors who
are ready for earmarked positions in
relation to total positions that require
successors
Potential Successors/Total Succession
Positions *100
Perspective Metric Explanation Formula/Example
INTERNAL BUSINESS PROCESSES
&SYSTEMS
Average Time To Fill
Average number of days elapsed
between requisition date and offer
acceptance for
internal and external hires.
Total Days to Fill / Offers Accepted
Recruitment Cost Per Hire
Recruitment expense per hire,
including internal and external hires.
Recruitment Expense / Hires
Termination Rate
Voluntary/Involuntary terminations as
a percentage of average headcount.
Voluntary/Involuntary Terminations /
Average Headcount * 100
Avg. Termination Value
The average value of each
termination during the reporting
period.
Total Termination Value /
Terminations
Offer Accept Rate
Offer acceptance reflect the relevance
of your EVP
Offers Accepted/Offers Made * 100
Internal Customer Satisfaction
Survey internal customer satisfaction
with system functionality,
accessibility, uptime etc.
Survey Results

3. Strategic
Value
Proposition
Strategic
Value
Proposition
Perspective Metric Explanation Formula/Example
STAKEHOLDERS
Internal Customer Satisfaction
1. Survey internal customer
satisfaction with quality of the
workforce and availability of right
competencies set targets for
improvement
2. Survey internal customer
satisfaction with quality of HR
support, advice and efficiency -
set targets for improvement
Survey Results
Employee Engagement
Survey levels of employee
engagement and correlate with
retention and productivity measures –
set targets to improve
Survey Results
Values Alignment
Survey values alignment behaviour –
set targets to improve
Survey Results
Employment brand strength
Relative measure of the
attractiveness of the organization’s
employment value proposition.
Survey Results
Perspective Metric Explanation Formula/Example
FINANCIALS
Cost Per Hire
Recruitment expense per hire,
including internal and external
hires.
Recruitment Expense / Hires
Operating profit per FTE Average profit generated by
employees
Operating Profit t / Number of
FTE’s
H&S Expense per FTE
Total Health and Safety H&S Expense / FTE
Human Investment Ratio Investment in employees as a
contribution to profit
(Operating Profit + Total
Compensation Expense) / Total
Compensation Expense
Return on Human Investment
Ratio
Return on investment in terms
of human resource
Operating Profit t / Total
Compensation Expense
The People Management Story – The Generic Objectives
FINANCIALS 16. Optimise the cost per
hire
17. Optimise the following:
a. H&S Expense per FTE
b. Industrial Dispute
Absence Days per FTE
14. Optimize Employee
engagement and
correlate with retention
and productivity
measures
19. Benchmark and improve
Return on Human
Investment Ratio
STAKEHOLDERS 12. Set targets for
Customer satisfaction
with quality of the
workforce and
availability of right
competencies – set
targets for improvement
13. Set Targets for
Customer satisfaction
with quality of HR
support, advice and
efficiency - set targets
for improvement
14. Set targets for
improving on the
standing of the business
as employer of choice
and top performer in
terms of KING III or
relevant guidelines
15. Align priorities in action
with the espoused
values of the business –
implement interventions
for change – include
corp citizenship and BEE
INTERNAL BUSINESS
PROCESSES &SYSTEMS
6. Institute/Review/
7. Update the Workforce
Planning System,
based on:
a. Clear job profiles (incl
competencies)
b. Supply and demand
c. Link to succession and
talent management
7. Develop/review
employment brand
strategy, recruitment
and selection system
and processes and
train all role players in
this
8. Develop and
implement retention
strategy
9. Develop/review and
implement
performance
management &
learning and
development system
– create structure and
process to support
10. Implement EVP
11. Develop/review and
implement succession
management that:
a. Identifies succession
risks and bench
strengths
b. Readiness thresholds
c. Development paths
d. EVP per position
a. Ensure cross functional integration of the total HCM value chain by implementing appropriate systems
PEOPLE AND INNOVATION 1. Define talent
populations – answers
the question who is
our talent
2. Define What Would It
Take To Succeed Here
Model – answers the
question of what
characteristics talent
have
3. & 4.
Review the organization design, and structure and define:
a. Talent pipeline
b. The competencies (competency models) for the pipeline
c. The assessment instruments to identify and develop
people in the pipeline
5. Define the desired
leadership and
performance climate
- answers the question
related to optimizing
performance and
contribution
PROPOSED METRICS TO TELL THE
PEOPLE MANAGEMENT STORY
PROPOSED METRICS TO TELL THE
PEOPLE MANAGEMENT STORY