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Performance Scorecards for HR Shared Services

Introduction

While individual process areas often have very detailed performance measurements related to cost, productivity, quality, and customer service, many times the overall HR Shared Services operation struggles to present their results in a concise and effective manner.  The challenge for any HR Shared Services organization is to develop and maintain a cohesive reporting package that meets both the needs of the HR Shared Services organization and its key customers and remains relevant as the business evolves.

Company Experience

A recent Peeriosity PeercastTM featured a large global company with over $50B in annual revenue discussing their experience with creating and administering a performance scorecard for HR Shared Services.  The company’s HR Global Operations covers many end-to-end services including Global Pay, Global Benefits, Global Employee Support, Global Workforce Mobility, and Global Talent Acquisition.

The company formally tracks deviations, with response protocols based on the severity of the deviation. Extensive use of metrics and problem solving using the lean A3 process, which includes the following 10 steps:

  1. Identify the problem
  2. Analyze the current state
  3. Identify root causes
  4. Define countermeasures to address root causes
  5. Define the target state
  6. Develop a plan
  7. Develop a follow-up plan with predicted outcomes
  8. Get everyone on board
  9. Implement
  10. Evaluate the results

The companies balanced score card for measurement includes four primary operational components to maintain success in the areas of 1) Financial and Operational Performance, 2) Quality, 3) People, and 4) Customer Service.   Over the past five years the company’s measurement journey has transitioned from discrepancy metrics, to Business Process Management, to Change Control, and now to the use of Predictive Analytics, complete with automated dashboards, automated processing of metrics, and quarterly reviews with formal presentations to management.

For details, Peeriosity members are encouraged to sign into the member’s area to view the complete presentation and listen to the recorded Peercast.

iPollingTM Results Review

The results from a recent Peeriosity poll created using the iPollingTM technology provides insight to the current HR Shared Services performance reporting at Peeriosity member companies that are provided for key stakeholders and internal customers.  The first question in the poll asked for a description, with 39% indicating they use a balanced scorecard that provides a mix of measures, each compared to a target value with a single concise report.  An additional 23% report using a formal dashboard that provides a good mix of measures that are not as robust as a balanced scorecard.  The remaining 38% report using a variety of measures from major process areas in an unstructured format. 

The second poll question asked about the frequency for reviewing or updating the structure of the HR Shared Services performance reporting package.  For 69% of companies, the review/update takes place at least annually, and for the remaining 31% there isn’t a regular schedule for updating.

Closing Summary

Having a robust process for measurement can create the necessary discipline for organizations to effectively increase efficiency and streamline operations.  Having your measurement processes follow a balance scorecard approach helps to ensure that improvements in one category of measurement, (for example, reduced costs), doesn’t create a negative impact in another category, (for example, decreased customer satisfaction).  While all Peeriosity member companies have measurements in place for HR Shared Services, the majority of companies are doing so on a formal basis, using a formal performance dashboard and often a balanced scorecard approach.

What does the current HR Shared Services performance reporting process for key stakeholders and internal customers look like at your company?  How often is the process reviewed an updated?

Who are your peers and how are you collaborating with them?

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“PeercastsTM” are private, professionally facilitated webcasts that feature leading member company experiences on specific topics as a catalyst for broader discussion.  Access is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from attending or accessing discussion content.  Members can see who is registered to attend in advance, with discussion recordings, supporting polls, and presentation materials online and available whenever convenient for the member.  Using Peeriosity’s integrated email system, Peer MailTM, attendees can easily communicate at any time with other attending peers by selecting them from the list of registered attendees. 

 “iPollingTM” is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from participating or accessing content. Members have full visibility to all respondents and their comments. Using Peeriosity’s integrated email system, Peer MailTM, members can easily communicate at any time with others who participated in iPollingTM.

Peeriosity members are invited to log into www.peeriosity.com to join the discussion and connect with Peers.   Membership is for practitioners only, with no consultants or vendors permitted.  To learn more about Peeriosity, click here.



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