Employee Scorecard -- Managing Human Capital for Strategic Execution

Author: (American) Mark A. Hughes, Brian E. Becker, Richard W. Betty
Publisher:
Publish Date: 2005-12-01
Features: The success of a company completely depends on employee contributions. This book pioneers a new field in the concepts and tools for measuring employee contributions. — Ram Charan, co-author of the bestseller Execution: The Art of Getting Things Done.
Traditional views treat employees as a "cost to be reduced," while this book views them as a strategic asset. Through this conceptual shift, the authors propose an outstanding methodology that teaches us how to improve complex strategic execution processes through effective employee management. This has a significant impact on improving the performance of line managers. — C.K. Prahalad, co-author of The Future of Competition and professor at the University of Michigan.
Hughes, Becker, and Betty provide a practical approach to linking an organization's human capital and capability development with its business strategy. This book has groundbreaking value. It genuinely demonstrates how to use measurement methods to execute strategy. The advice in this book is highly effective and worth following. — Craig Erik Schnerer, executive vice president and HRD at Biogen Idec.
If you are committed to improving your company's performance through employees, this book is worth reading. By reading it, you will learn how to improve your company's ability in this regard. — Bob Joy, senior vice president of global HR at Procter & Gamble.
How can employees be held accountable for strategic execution? The book explains how employee success metrics contribute to strategic execution within the framework of the balanced scorecard. — William F. Joyce, co-author of What Works for Companies and professor at the Amos Tuck School of Business at Dartmouth College.
For most companies, among all controllable factors affecting corporate performance, an employee team capable of executing corporate strategy is the most important and least performing asset. The problem is not that CEOs and senior managers do not recognize the importance of human capital, but that they lack measurement tools and have not made line managers responsible for the impact of the employee team on strategy.
Now, building on the bestseller Human Resource Scorecard, Mark A. Hughes, Brian E. Becker, and Richard W. Betty have proposed a revolutionary balanced scorecard model for another aspect of performance management. In this book, the three authors present a new management and measurement system to determine the behaviors, competencies, mindsets, and culture necessary for employee success, as well as to measure the impact of these dimensions on corporate profits.
The authors believe that to maximize the potential of the employee team, organizations must address three major challenges:
1. Treating the employee team as a contributor rather than a cost.
2. Replacing benchmarks with measurement indicators tailored to different strategic impact levels.
3. Having line managers and HR professionals jointly responsible for driving employees to execute strategy.
They also clarify how to develop a customized employee scorecard, including:
- Identifying key, few but truly important metrics.
- Translating these metrics into specific actions and responsibilities.
- Clarifying expectations for employees and ways they can improve.
- Identifying high- and low-performing employees and providing differentiated compensation and incentive systems.
- Determining supporting HR management systems and metrics.
- Detailedly explaining the roles of leaders, employees, and HR in the strategic execution process.
For line managers who want to transform practices into strategic outcomes and HR professionals who want to quantify the value they create, Employee Scorecard offers crucial insights, helping them understand how to enhance human capital to achieve corporate success.