Wednesday, September 3, 2008

Balanced Scorecards & KPI for HR

The Balanced Scorecards (BSC) is a conceptual model for managing organization’s performance. In early development, BSC aimed to solve organization’s measurement problems, which is put heavy priority on tangible aspects rather than intangible aspects. This model then complements financial measures of past performance with measures of drivers of future performance.

Balanced Scorecard incorporates valuation of organizations’ intangible and intellectual assets since intangible assets recently increase its portion of organization’s source of competitive advantages. To design BSC system, first we choice relevant KPI to HR function as both traditional personnel management to business partner level.

To implement BSC framework for HR function, first we should define goals statement that describe organization strategic objectives. Objectives then translated into specific measurement reflects by key performance indicator (KPI) which is followed by challenging but achievable quantitative target. List of initiatives are generated to support objectives achievement.

Typical objectives and KPI for HR function are presented below.

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