Monday, May 23, 2011
So, you have decided you need HR metrics. You know it's important. You know your CEO is craving data to see how the investment in people is paying off.
You then begin to develop metrics. What is your first step?
So many times I hear the following answers to the above question:
1) I start with turnover and cost per hire
2) I google "HR Metrics" and pick some that look good
3) I ask another HR colleague
4) I go to a conference
5) I just measure anything and everything
"NOT!" to all of the above. The key to determining your HR Metrics that matter to your organization is to start with your organization's strategy. A company that is in growth mode has very different metrics than a company that is in survival mode. The growth oriented company is going to focus on goal attainment and revenue growth and the company trying to survive is going to be more cost conscience.
So the proper game plan would be: READY, SET, MAP YOUR STRATEGY and then MEASURE.
A strategy map is an invaluable tool that enables you to understand your business results, your performance outcomes, your performance measures, and the actions needed to execute the strategy. Then and only then are you ready to create metrics.
The cool thing about a strategy map is that it gives every department a visual communications tool to understand how the organizational strategy comes to life. Think about your organizational strategy, when it was announced. Did it hit like a thud or did everyone stay energized and focused because they knew what to do and how they would be measured?
What an opportunity for HR to be strategic...you can assist with strategy execution AND develop HR metrics that really mean something to the organization. Brilliant...