How do you build a strategic HR scorecard?

1 Define your strategy

Before you can create a scorecard, you need to have a clear and coherent strategy that reflects your vision, mission, and values. Your strategy should answer questions like: What are your strategic objectives? How do you differentiate yourself from your competitors? What are the key drivers of your success? How do you create value for your stakeholders? You can use tools like SWOT analysis, PESTEL analysis, or Porter's five forces to help you define your strategy.

2 Identify your stakeholders

Your stakeholders are the people or groups who have an interest or influence on your HR activities and outcomes. They can include internal stakeholders, such as senior management, employees, or other departments, and external stakeholders, such as customers, suppliers, regulators, or investors. You need to identify who your stakeholders are, what their expectations and needs are, and how you can meet them. You can use tools like stakeholder mapping, power-interest matrix, or stakeholder analysis to help you identify your stakeholders.

3 Select your metrics

Your metrics are the indicators that measure your progress and performance against your strategy and stakeholder expectations. They should be SMART: specific, measurable, achievable, relevant, and time-bound. You need to select metrics that cover four perspectives: financial, customer, internal process, and learning and growth. You can use tools like balanced scorecard, key performance indicators, or HR dashboards to help you select your metrics.

4 Collect and analyze your data

Your data is the evidence that supports your metrics and shows your results. You need to collect and analyze data from various sources, such as surveys, interviews, observations, reports, or systems. You need to ensure that your data is valid, reliable, accurate, and consistent. You can use tools like data collection methods, data analysis techniques, or data visualization tools to help you collect and analyze your data.

5 Communicate and review your scorecard

Your scorecard is the document that summarizes and presents your metrics and data in a clear and concise way. You need to communicate and review your scorecard with your stakeholders on a regular basis, such as monthly, quarterly, or annually. You need to ensure that your scorecard is aligned with your strategy, reflects your stakeholder expectations, and provides actionable insights. You can use tools like scorecard templates, reports, or presentations to help you communicate and review your scorecard.

6 Improve and update your scorecard

Your scorecard is not a static tool, but a dynamic and evolving one. You need to improve and update your scorecard based on your feedback, results, and changes in your environment. You need to monitor and evaluate your metrics and data, identify gaps and opportunities, and implement changes and improvements. You can use tools like PDCA cycle, SMART goals, or change management to help you improve and update your scorecard.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?