1. Future of HR Metrics A Brave New World

2. Add Value & Maximize Upside Limit Liability & Protect Downside Impact/Contribution to the Business Strategic HR Planning Organizational Design HR as Business Partner Compensation Benefits Safety & Workers’ Compensation Compliance Labor/Union Relations Staffing Training & Development Culture & Image EEO/AA Employee Relations Performance Management Survey Action Planning HR Information Systems (HRIS) A Century of Evolution in the Function Labor Employee Personnel Human Organizational Relations Relations Resources Effectiveness HR Continues to Evolve & the model defines our aspirations continue to grow Source: Rich Vosburgh

6. Efficiency and Effectiveness

9. Internal and External Historical Benchmarks

11. Administrative Expert Compensation Payroll as %--total operating costs (benchmarked); compensation targets benchmarked against peer companies; turnover rates; quality of management review and Board material. Benefits Medical cost per participant; dental cost per participant; 401K employee participation rate; $ saved in union negotiations. HRIS Systems Support HRIS implementation on time and within budget; customer satisfaction. Compliance # New EEO Charges; # Old EEO Charges Closed; Progress on AA Goals; Outcomes of Inspections and Audits.

12. Employee Relations Turnover rates, “Best Place to Work” rankings, legal compliance, efficiency, union activity (or lack thereof). Labor Relations Absence of the extreme negative (strikes, slowdowns, sit-downs, boycotts); $ outcome of new contracts, both immediate & longer term; timeliness & quality of new contracts; productivity per employee; safety & quality measures. Safety and Workers’ Compensation Employee Relations Expert # Incidents & $ value of accidents; # employees trained; % required training & certifications completed; audit results. Diversity & EEO Attitude survey measures of perceived fairness; # people trained in Diversity Awareness and Diversity Leadership programs; perceived tolerance.

13. Staffing $ to Fill; Days to Fill; # Filled; Quality of Hires; Retention of Hires. Organizational Design Benchmarking headcount; effectiveness of communications & key processes (no bottlenecks); spans and layers; management ratios. Survey Action Planning Employee satisfaction results at the work group level; rolled up to Business Unit level; norms available for Business Unit analysis. Performance Management Performance Reviews: Timeliness and Quality; #/% Positions with written accountabilities and measures; other measures vary with the position. Training & Development # Programs; #Days/Person Training; Impact of Training; effectiveness measures within new groups. Change Agent

14. Strategic HR Planning Quality of succession management program assessment. Quality of Bench Strength. Quality of Succession Plan Follow-up (% Actions Completed). HR as Business Partner Any business measure of effectiveness. 360-Degree Feedback on the extent to which HR is considered a partner by those they support . Culture and Image Employee Satisfaction data; quality of the description and utilization of culture & image understanding; standing on the Fortune 100 Greatest Places to Work. Strategic Partner

15. Starting with the Business Strategy

16. Basic Process for HR Strategy Scan the External Environment Identify Strategic Business Issues Develop HR Strategy Communicate the HR Strategy Identify People Issues

17. The Common HR Approach HR practices, processes, and systems Articulate how what we do adds value to The business Communicate to the business what a good job we are doing The Inside-Out Approach Source: Patrick Wright

18. The Better HR Planning Approach Identify the business model components and areas to drive value Develop an HR strategy to execute the business model with relevant metrics Use the metrics to demonstrate or prove how we are driving business performance The Outside-In Approach Source: Patrick Wright

23. Impact

25. Company Business Environment HR Department Outputs Inputs Internal Feedback: Efficiency Effectiveness External Feedback: Impact

26. Scope of HR Measurement Approaches Value Time Source: Center for Effective Organizations, USC Ad hoc HR Measures Benchmarks Data Systems and Portals Scorecards and Drill Downs Strategic Impact Organizational Effectiveness Validity and Rigor Causation Leading Indicators

31. Execution Strategy People Processes Alignment = Successful Execution To execute strategy you need to align your strategy, process and people!

33. The Alignment Challenge Strategy People Processes Alignment = Successful Execution Fast - Logical ! Fast - Logical ! Slow . . . And follows a different logic . . . Success and speed of execution depend on people alignment, Yet this is the hardest element to align!

35. What is the Alignment of People?

36. Research Team Dr. Albert A. Vicere Pennsylvania State University Dr. Elena Granell Instituto De Empressa, Madrid Dr. Miles H. Overholt Human Resource Institute & Riverton Management Consulting Group Jay J. Jamrog Human Resource Institute The University of Tampa

44. Conclusion

46. Faster up the Learning Curve HIGHER PERFORMANCE SOONER WHAT YOU NEED TO KNOW PROCESS

47. Pushing The HR Curve # People Who Know the Solution Problem Complexity Success = Intelligence + Access Source: Steve Miranda

48. It’s Not HR’s Productivity We Should Be Concerned About The “Evolving” HR Professional Never Forgets …

49. Getting Computers To Do the Work Is A Waste of Time The “Evolving” HR Professional Never Forgets…

50. Because You Can Do It Doesn’t Mean You Should Do It The “Evolving” HR Professional Never Forgets…

51. “ It is not the strongest of the species that survive, nor the most intelligent, but rather the one most responsive to change.” Charles Darwin, “On the Origin of the Species by Natural Selection”, 1859 Charles Darwin, “On the Origin of the Species by Natural Selection”, 1859