Hr Metrics

Assistant Manager - HR à Confidential (In stealth mode)
21 Apr 2016

Contenu connexe


Hr Metrics

  1. HR METRICS Gurudatta Jambhawadekar
  2. “To move to the center of the organization, HR must be able to talk in quantitative, objective terms. Organizations are managed by data.” - Jac Fitz-enz
  3. INTRODUCTION • Of all the controllable factors affecting firm performance, a workforce that can execute the firm’s strategy is the most critical and underperforming asset in most businesses. • The problem is not that CEOs and senior managers don’t recognize the importance of human capital. • Rather they lack the right tools for measuring-linking-and holding the line managers accountable for the impact their workforce has on strategic success. • Thus, the Scorecard model introduces the management and metrics system that identifies the behaviors, competencies, and mindset and culture required for workforce success, and measures how these dimensions impact the bottom line.
  4. SCORECARD • Firms need to focus on specific kind of business performance : Strategy Execution. • The challenges that any organisation face in order to maximise workforce potential • Replace benchmarking with metrics • View workforce contribution to add value rather than in terms of cost • Make line and HR managers jointly responsible • Thus, any firm needs a business strategy, a workforce strategy, and a strategy for the HR function. These strategies are operationalized in the Balanced Scorecard, Workforce Scorecard and the HR Scorecard, respectively.
  5. MANAGING HUMAN CAPITAL TO EXECUTE STRATEGY HR Systems • Align •Integrate •Differentiate HR Workforce Competencies •Strategic Partner •Change Agent •Employee Advocate •Administrative Expert Workforce Mindset & Culture Does the workforce understand our strategy & embrace it, and do we have the culture to support strategy execution? HR Practices •Work design •Staffing •Development •Performance. Management •Rewards Leadership & Workforce Behaviors Are the leadership team and workforce consistently behaving to achieve strategic objectives? Workforce Success Has the workforce accomplishes the key strategic objectives for the business? Workforce Competencies Does the workforce, especially in the key positions have the skills it needs to execute the strategy? Customer success What specific customer desires and expectations must be satisfied? HR Systems • Align •Integrate •Differentiate Financial Success What financial commitments must be met? Operational Success What specific internal operational processes must be optimised? HR SCORECARD WORKFORCE SCORECARD BALANCED SCORECARD
  6. THE WORKFORCE SCORECARD • The term ‘Workforce’ focuses on the strategic performance of employees. The Workforce Scorecard is intended to provide the CEO and executive team members with timely and strategically relevant measures of workforce performance and the leading indicators of that performance. • For line managers who want to turn practices into strategic results and HR professionals who want to quantify the Value they create, the Workforce Scorecard offers crucial lessons for leveraging human capital to achieve business success. • Key value creating a link between the Balanced Scorecard and the HR Scorecard.
  7. THE HR SCORECARD • The HR scorecard highlights the strategic role of HR professionals and the role of HR Management system played in the successful implementation of an organization's strategy. • Five Key elements of HR Scorecard: • Workforce Success • Right HR functions and Workforce Costs • Right types of Alignment • Right HR practices • Right HR professionals
  8. BALANCED SCORECARD • The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. • It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. • When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise. • It suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of four perspectives
  9. MEASURING VALUE CREATION FROM HR THROUGH WORKFORCE SUCCESS HR Competencies Objective: HR Managers possess competencies linked to the needs of business Right Metrics: •Rating on validated competency assessment tool •Knowledge of key business processes Wrong Metrics: •HR expense/total revenue HR System Objective: HR practices and systems are aligned, integrated and differentiated, as appropriate Right Metrics: •% employees trained on product knowledge •% employees see link between training, rewards, and workforce success •% increase in customer satisfaction/ $ increase in training or incentives Wrong Metrics: •Cost per hire •Cost per hour of training •Recruiting cycle time
  10. MEASURING VALUE CREATION FROM HR THROUGH WORKFORCE SUCCESS CONT… Leadership & Workforce Behaviors Objective: Employees deliver performance behaviors that execute strategy Right Metrics: •% of frontline staff rated: •Knowledgeable •Helpful •Timely •Courteous •Turnover by rating level Wrong Metrics: •Overall turnover •Global employee satisfaction •HR $/ operating $ Workforce Success Objective: World-Class customer buying experience Right Metrics: •“Mystery shopper” rating •Customer repurchase % •“Buy again” Rating •Overall customer satisfaction
  11. FIVE “RIGHTS” OF HR MEASUREMENT Right HR Professionals Right HR practices Right types of HR Alignment Right HR function and Workforce Costs Workforce Success And Value What HR does What HR delivers
  13. METRICS • A metric is an accountability tool that makes it easy to see if the company is producing results. • Most metrics have six elements: measurements of quantity, quality, time, money and satisfaction, as well as benchmark comparisons.
  14. WHY METRICS • Develop metrics geared towards your organization’s goals and strategies • Establish metrics to monitor key HR practices proven to grow human capital • Use metrics that will encourage change and help us make better decisions about human capital • Measure outcomes not activity
  15. WHAT IS HR METRICS? • As applied to the HR profession, metrics means measurement. Almost anything can be measured — by counting (we had three new hires this month), by qualitative assessment (on a scale of 1 to 10, that class was an 8), by time (it took two months to fill that job) or by a combination of the three. By itself, a single measurement is meaningless. • Multiple measurements taken over time enable us to track change. That, in a nutshell, is what HR metrics is all about — measuring change.
  16. WHY INVEST IN HUMAN RESOURCES METRICS? Human Capital typically represents 50-60% of all operating costs Human Capital can provide a source of competitive advantage. CEO’s, executives and line managers can’t manage/improve what they can’t measure! Pro-active action can be taken to enhance workforce productivity, capability, satisfaction and engagement, leading to optimum workforce performance and a potential source of competitive advantage
  17. CONT… • Metrics help quantify and demonstrate the value of HR • Metrics helps to maximize return on HR investments • Metrics help show what HR contributes to overall business results • • Method of tracking the effectiveness of HR • What you value about HR programs and the equivalent monetary value
  18. Acquisition 1. Recruitment 2. Selection Maintenance 3. Compensation & Benefits 4. Record Keeping 5. Performance Mgmt. Development 6. Employee Relations 7. Training and Development CATEGORIES OF MEASURES
  19. WHY MEASURE? • To communicate performance expectations • To discover gaps in strategies • To make better decisions • To address the trend toward value reporting • To enhance your career • What you don’t measure doesn’t count • What you don’t measure well you can’t improve • So you can control your work—instead of it controlling you
  20. THE IMPORTANCE OF MEASUREMENT If you can’t measure it, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it. James Harrington The Improvement Process Understand Measure Control Improve
  21. THREE CRITERIA FOR SELECTING METRICS: • Companies should ensure the metric fits the corporate culture Eg.If a company's culture emphasizes speed or being the first to market, it would select metrics related to time. • A metric should echo the critical success factors that make a company's product or service successful. eg.HR might choose to measure the satisfaction of managers and applicants. • Metrics should focus on issues that are likely to be reported to the chief executive officer. HR should measure the performance of new hires, because that has a direct impact on productivity. Other types of measures related to hiring are the new-hire satisfaction rate and dates that reflect on a company's ability to meet deadlines.
  22. Build Your Metrics
  23. NINE STEPS TO METRICS EXCELLENCE • Re-examine your business objectives. • Before doing anything else, revisit your organisation’s strategic business objectives. • While there is some value in each function measuring its own performance, the overriding priority should be the satisfaction of the end customer (either internal or external).
  24. • Take the ‘ CUP ’ test. • It is surprising how many organisations are busy accumulating reams of data from which no-one seems to be able to extrapolate much useful information. • If you already collect metrics, take this opportunity to rifle through the reporting archives. Give each set of data the ‘CUP’test. • Does it make a contribution to overall organisational business objectives? • Does it provide an insight into whether organisational resources are being utilised at their optimum level? • Does it make any assessment of productivity which could lead to efficiency gains and therefore a better customer experience? • If each set of data does not address at least one of these three criteria, then question the usefulness of continuing to collect it.
  25. • Keep it simple. • information overload is a greater threat to the effectiveness of HR than a complete lack of measurement. • Research has suggested that in order to focus on the priority areas, around five key metrics is a good place to start, although the exact number will vary depending on strategic business objectives.
  26. • Decide what types of metrics to capture. • Metrics fall into three principal categories, says US recruitment guru Lou Adler: historical, real- time and forward-looking. • Historical metrics give a good general indication of an organization's health. • Real-time metrics are the snapshots which can act as warning signs that a process may be about to go horribly wrong • forward-looking metrics extend current and historical trends into the future to enable contingency planning. • In order to present a comprehensive picture, your chosen metrics suite should ideally contain all three types of figures, though the exact proportions will depend on your industry type and strategic business objectives.
  27. • Establish a benchmark. • The current state of affairs should be measured so that the future impact of any changes can be assessed. • You may have some idea where you’re heading, but if you don’t know your starting point on the map you’re still very likely to get lost. • You could also look at benchmarking your organisation against other similarly sized organisations or industry ‘best of breeds’.
  28. • Integrate data collection into existing work flows. • Avoid burdening staff with extra workloads. • Data should be collected automatically without the need for manual maintenance of parallel systems • The latest HRIS make it possible to data mine in a way that would have been inconceivable as little as 15 years ago.
  29. • Allocate resource for analysis. • Only by undertaking rigorous analysis will HR be able to transform data into meaningful and valuable strategic information. • Don’t make the results too complex or else they may be dismissed out of hand as being too scientific or too academic. • Graphical representations with short textual summaries make for greater accessibility and readability.
  30. • Have the power to act. • The gathering of metrics is a useless exercise in administration if HR lacks the teeth to act promptly on the findings. • For example, if the metrics indicate that retention rates would be dramatically improved by increasing performance-related bonuses but HR has no means of prompting this remedial action, then a potentially valuable tool has been wasted.
  31. Close the loop. • Good business practice stipulates that all business processes and procedures should be subject to periodical review. • When initially defining the metrics suite, ensure that a review date is built in. • If a metric is enhanced following a review, make it clear in all future reports, so that readers analyzing historical trends are under no illusion as to what they are comparing.
  32. TWO COMMON ERRORS ARE IN DEVELOPING METRICS: • Developing and implementing HR metrics in a vacuum: • Take a collaborative approach, in which you take a list of strategic HR metrics that you can live with to the CFO and let him or her select the specific ones that are most likely to measure business impact and be easily understood and considered strategic by top management. By letting the CFO play a role in the selection process and allowing them to make the final decision on what metrics you will move forward with, you eliminate many of the roadblocks you may encounter — and you'll recruit a high-level champion at the same time.
  33. • Developing more metrics than it is feasible to maintain and utilize: • A large number of metrics is both unnecessary and difficult to maintain. I recommend instead that you settle on between 8 and 12 really important metrics that demonstrate HR's impact on the business. • collecting data and calculating metrics is time-consuming and expensive, it's important to focus your energies on the ones that really matter.
  34. HR EXCUSES AGAINST METRICS • “You can’t measure what we do…” • Lack of clear purpose for measuring • Lack of cooperation between departments • Difficulty extracting data from multiple systems • Difficulty understanding and analyzing metrics • Numbers used to draw inaccurate conclusions
  36. Recruitment HR METRICS
  37. WHY RECRUITMENT METRICS Metrics Dominate Recruiting • The major shift in thinking and acting in recruiting will not be just the utilization of metrics but the dominance of metrics. • Individual recruiters will be required to demonstrate that they are using the most effective sources and techniques and producing quantifiable results. • Recruiting budgets and expenditures will shift, based on the ROI and business impact of the different strategies and tools.
  38. WHAT SHOULD I MEASURE? Acquisition: Recruitment and Selection Possible Measures: (7pts) • Cost per Hire • Speed of hire • Yield Ratio • Number hired • Quality of Hire • Interview Offer Yield Ratio • Interview Accept Yield Ratio ?
  39. THE COST PER HIRE • Cost Per hire is a common recruiting effectiveness measuring tool. • Although its calculation is a valuable tool it does not take into account the length of time it takes to fill the position and quality of the hire. • In addition cost per hires will drastically differ from position to position. For example, a cost per hire for a senior executive position will be drastically different from a non-exempt position.
  40. EXAMPLE: COST PER HIRE CPH = Ad + AF + ER + T +Relo + RC+10% (7things) H Ad = Advertising fees 10%= All Other Overhead AF = Agency fees ER = Employee referrals T = Travel Relo= Relocation RC = Recruiter Costs H = Number of Hires
  41. SPEED TO HIRE - DEFINITION Formula: The number of business days to fill a vacant position. This is counted from the day the position becomes vacant to the date a new employee starts in the job. "It's all about applicant flow! You want to find the best candidates, and you want to find them today. When you have them, no one else does. Point-to-point hiring is the eventual goal," Purpose: • Shows the length of time it takes to fill vacant positions. • This metric is an indicator of the organization's ability to recruit and hire new employees.
  42. SPEED TO HIRE - EXAMPLE 11/3/2004 - 8/1/2004 Date of Hire - Date of Vacancy = 65 business days
  43. YIELD RATIOS • The goal of recruiting is to generate a motivated and qualified applicant pool. • When developing a recruitment strategy to accomplish this goal, organizations must choose from a number of methods, including college placements, community job fairs,Internet job postings, radio advertisements, and newspaper want ads. • If a job opening is posted on the Internet, a tally should be kept that indicates the number of applicants who responded to that posting and, out of those, the number who were qualified enough to be considered throughout the various stages of selection. • A yield ratio captures this relationship.
  44. • For example, a community job fair might generate 100 applications. If, out of those 100, 5 individuals were hired, the job fair would have a yield ratio of 20:1. Comparatively, an Internet posting might have a yield ratio of 200:1. • Interpreting the yield ratios indicates that job fairs are ten times more efficient at generating hires. Yield ratios can be computed relative to the number of individuals hired, the number of minimally qualified applicants generated, or even the number of local applicants generated.
  45. INTERVIEW OFFER YIELD RATIO = Number Of Applicants Number Of Applicants Offered An Interview Interview Accept Yield RatioInterview Accept Yield Ratio Number Of Applicants The Number Of Applicants Who Accept An Interview =
  46. VALUE ADDITION • Have you conducted business process analysis on your hiring process? • Has the time to hire increased or decreased within your organization…Why? • Do you know which step in the process takes the most time? • Quality of Hire - Wastage - Retention Right people for right job at right time.
  47. Training & Development HR METRICS
  48. • Cost per trainee hour • No of employees • Costs of training PER employee • Cost of lost work PER employee • Lost sales PER employee • Cost benefit Ratio • Rate of Return • Travel expense • Trainee response • Test scores • Skill change resulting from training • Training Expenditures as a % of Personal Services Expenditures WHAT TO MEASURE : T & D
  49. COST PER TRAINEE HOUR • This metric may help in determining if current training is cost effective. • CTH = TCT / (NT * HT) CTH = Cost per trainee hour TCT = Total cost of training NT = Number trained HT = Hours trained
  50. COST OF TRAINING a. Number of employees attending training b. Costs of training PER employee (eg training fee + transport + meals + material costs) c. Cost of lost work PER employee (hrs of work missed x hourly rate) d. Lost sales PER employee (for sales staff only;) hrs of work missed x hourly sales; (Note: hourly sales = employees monthly sales / 40 hours)
  51. COST-BENEFIT ANALYSIS IS CARRIED OUT • To assess time spent on Training and assessment to check improvement. • To relate time with corresponding costs, vis-à-vis salary. • To assess performance vis-à-vis cost of improvement.
  52. CONT.. It is the ratio between the Cost of Training and the Value Addition by Training. • According to a survey conducted by the Fortune Magazine in February 2001, it sates that the Cost Benefit ratio should be 1:6 Cost Benefit Ratio = Value Addition Cost of Training Rate of ROI = Value Addition – Cost of Training Cost of Training
  53. • TEPS = Training expenses as a percentage of personnel services expenditures • DTC = Direct training costs (registration/course fees, materials, room rental) • ST = Salaries and benefits of trainers (or instructor fees) • T = Travel • L = Lodging • M = Meals • ST = Staff time (salary and benefits) • OH = Overhead of training department (usually allocated by time) • TS = Total salaries and benefits paid to all employees TRAINING EXPENDITURES AS % OF TOTAL PERSONNEL SERVICES Formula: TEPS = DTC + ST + T + L + M + ST + OH (7pts) / TS
  55. WHAT ABOUT COMPENSATION? Maintenance : Compensation Possible Measures: • Job Evaluation Factor • Benefits+Payroll as a % of Operating Expense • Compensation to Costs Percentage • Management Compensation as a Percentage of Total Compensation • Workers Compensation Cost per Employee
  56. COMPENSATION TO COSTS PERCENTAGE • This metric determines what percentage of overall costs go to employees. • (TPB / TC) * 100 TPB = Total pay and benefits TC = Total costs
  57. MANAGEMENT COMPENSATION AS A PERCENTAGE OF TOTAL COMPENSATION • This metric determines what percentage of total compensation is paid to managers. • (TPBM / TPBS) × 100 TPBM = Total pay and benefits for managers TPBS = Total pay and benefits for all staff
  58. WORKERS COMPENSATION COST PER EMPLOYEE • This metric provides determination of cost of workers comp spent on each employee. • TWC / AE TWC = Total Workers Compensation cost for year AE = Average number of employees for year
  60. WHAT TO MEASURE: RETENTION • Cost of turnover • Workforce stability • Turnover rate • Workforce capacity • Turnover reason
  61. TURNOVER RATE Number of Employees Separated During Month Average Number Employees During Month
  62. EMPLOYEE TURNOVER RATES (CONT’D) • Computing Turnover Rates (cont’d):
  63. EXAMPLE: TURNOVER / STABILITY • Formulas: • SF = OS / E • IF = OL / E • SF = Stability Factor • IF = Instability Factor • OS = Original employees who stay for the period (e.g., 1 year) • OL = Original employees who left during the period (e.g., 1 year) • E = Employee population at the beginning of the period
  64. (Turnover costs = Separation costs + Replacement costs + Training costs) Separation costs 1.Exit interview cost for salary and benefits of both interviewer and departing employee during the exit interview 2.Administrative and record-keeping action Total separation costs Replacement costs 1.Advertising for job opening 2.Selection interview 3.Employment tests 4.Meetings to discuss candidates Total replacement costs COSTS ASSOCIATED WITH THE TURNOVER
  65. Training costs • Booklets, manuals, and reports • One-to-one coaching • Salary and benefits of new employee until he or she gets “up to par” Total Training costs
  66. VALUE ADDITION • Do you know the cost of your organization’s turnover? • Review your exit survey/interview information. • Look at turnover in relation to length of service. • What type of impact are voluntary separations having on the attainment of your business goals? • If turnover of employees with less tenure is high you may want to review your recruiting practices
  68. EMPLOYEE ABSENTEEISM RATES • Computing Absenteeism Rates
  69. PERCENTAGE OF EMPLOYEES ABSENT Number Of Employees Absent During The Time Period Total Number Of Employees On Payroll During The Period. Combined absenteeism rateCombined absenteeism rate Number Of Lost Workdays Due To Absences Average Number Of Employees X Average Number Of Workdays During Period X 100
  70. Economic Value Added (EVA)Economic Value Added (EVA)
  71. • The goal of all companies is to create value for the shareholder. But how is value measured? • Economic Value Added (EVA) is an accounting measure of the value a company creates. • It is an estimate of true economic profit after making corrective adjustments to GAAP accounting, including deducting the opportunity cost of equity capital. • It is a performance metric that calculates the creation of shareholder value. It distinguishes itself from traditional financial performance metrics such as net profit and EPS Economic Value Added (EVA)Economic Value Added (EVA)
  72. CONT… • EVA can be measured as Net Operating Profit After Taxes(or NOPAT)less the cost of capital, equity as well as debt. • Basically, EVA is the calculation of what profits remain after the costs of a company's capital - both debt and equity - are deducted from operating profit. • The idea is simple but rigorous: true profit should account for the cost of capital.
  73. CALCULATING EVA • The basic formula is: EVA = ( r – c ) * K = NOPAT – c * K • Where, r = NOPAT K called the return on capital employed (ROCE) • is the firm's return on capital, NOPAT is the Net Operating Profit After Tax, c is the Weighted Average Cost of Capital (WACC) and K is capital employed.
  74. EASY WAY TO UNDERSTAND! Net Sales - Operating Expenses ------------------------------------------- Operating Profit (EBIT) - Taxes ------------------------------------------- Net Operating Profit After Taxes (NOPAT) - Capital Charges (Invested Capital * Cost of Capital) ------------------------------------------------------------------- Economic Value Added (EVA)
  75. IMPLICATIONS OF THE FORMULA • Shareholders of the company will receive a positive value added when the return from the capital employed in the business operations is greater than the cost of that capital • By taking all capital costs into account, including the cost of equity, EVA shows the financial amount of wealth a business has created or destroyed in a reporting period. • In other words, EVA is profit in the way shareholders define it. For eg, if the shareholders expect say 10 % ROI, they earn money only to an extent that their share of the NOPAT exceeds 10% of the equity capital. • Thus the level of the EVA does not matter but, it is the (continuous) improvement in EVA that brings (continuous) increase in shareholder’s wealth.
  76. HOW DOES IT ADD VALUE? Managers in EVA companies learn that there are only three Basic ways to increase value: • Increase the returns from the assets already in the business by running the income statement more efficiently without investing new capital; • Invest additional capital and aggressively build the business so long as expected returns on new investments exceed the cost of capital; and • Release capital from existing operations, both by selling assets that are worth more to others and by increasing the efficiency of capital by such things as turning working capital faster and speeding up cycle times.
  77. EVA AND MOTIVATION • To instill both the sense of urgency and the long-term perspective of an owner, Stern Stewart designs cash bonus plans that cause managers to think like and act like owners because they are paid like owners. • Indeed, basing incentive compensation on improvements in EVA is the source of the greatest power in the EVA system. • Under an EVA bonus plan, the only way managers can make more money for themselves is by creating even greater value for shareholders. • This makes it possible to have bonus plans with no upside limits. In fact, under EVA the greater the bonus for managers, the happier shareholders will be.
  78. EVA AND COMPENSATION,REWARDS & BONUSES • Most managers today have incentive compensation plans that put too much emphasis on compensation and too little on incentive. Bonuses, whether meager or lavish, are earned by beating annually negotiated budgets. • EVA bonus targets, in contrast, are automatically reset each year by formula. If EVA shoots up, for example, next year's bonus will be based on improvement above the new, higher level of EVA. • Stern Stewart & Company recommends "banking" a portion of extraordinary bonuses and paying them out over several years. • Bonus banks make it possible to have "negative" bonuses when EVA drops sharply, and insure that bonuses are paid only for sustainable increases in EVA.
  79. EVA AND PERFORMANCE MANAGEMENT • EVA is the most accurate measure of corporate performance over any given period. FORTUNE magazine has called it "today's hottest financial idea," and Peter Drucker rightly observed in the Harvard Business Review that EVA is a measure of "total factor productivity" whose growing popularity reflects the new demands of the information age. • The EVA system effectively provides a common language for employees across all corporate functions once implemented in totality. • Aligning the Performance Management system to EVA system would emphasize on ‘the goal of increasing EVA is paramount.’
  80. EVA AND TRAINING & DEVELOPMENT • By effectively planning and implementation of Training Budget, a company would be able to control the operating expenses incurred on the Training calendar on an annual basis. • This, in turn, would aim to increasing the NOPAT and thus, increasing the level of EVA every year. • Also, by aligning the Strategic Training & Development initiatives to the EVA system, the HR would enable all line managers to continuously perform and develop their team members towards increasing the EVA. • Thus, by aligning the T & D function to EVA system, the organisation would work towards employee development and engagement that, in turn, is directly proportional to the company’s shareholder value.
  81. EVA AND CORPORATE CULTURE • By putting all financial and operating functions on the same basis, the EVA system effectively provides a common language for employees across all corporate functions. • EVA facilitates communication and cooperation among divisions and departments, it links strategic planning with the operating divisions, and it eliminates much of the mistrust that typically exists between operations and finance. • The EVA framework is, in effect, a system of internal corporate governance that automatically guides all managers and employees and propels them to work for the best interests of the owners. • The EVA system also facilitates decentralized decision making because it holds managers responsible for-and rewards them for-delivering value.
  82. EVA AND MANAGEMENT SYSTEM • While simply measuring EVA can give companies a better focus on how they are performing, its true value comes in using it as the foundation for a comprehensive financial management system that encompasses all the policies, procedures, methods and measures that guide operations and strategy. • The EVA system covers the full range of managerial decisions, including strategic planning, allocating capital, pricing acquisitions or divestitures, setting annual goals-even day-to-day operating decisions. • The uniform focus on continuously improving EVA, in contrast, provides the best assurance that all managers are making the right decisions for shareholders.

Notes de l'éditeur

  1. father of human capital strategy and analysis About Dr. Jac Fitz-enzAn internationally recognized authority on human resource management, Dr. Jac Fitz-enz pioneered the field of human capital benchmarking and performance measurement. Among his accomplishments: a landmark study of the connection between service, quality and productivity. Dr. Fitz-enz founded Saratoga Institute in 1977. He has authored five books on human capital management. In his latest, The ROI of Human Capital, Dr. Fitz-enz demonstrates the benefits of measuring the economic value of employee performance. Dr. Fitz-enz previously held senior human resource posts at major technology and financial services companies in the U.S. He received a doctorate in communications from the University of Southern California. About Dr. Jac Fitz-enzDr. Jac, as he is known worldwide, is acknowledged as the father of human capital strategy and analysis. He carried out the original research on human resources measurement in the 1970s. Ninety percent of the Fortune 100 have applied his benchmarking system. Dr. Fitz-enz has published over 160 articles, reports and book chapters. He is the author of seven books and the only two-time recipient of the SHRM Book of the Year Award (Human Value Management-1991 and The ROI of Human Capital-2001). Recently he was named Superstar HR Outsourcing Specialist for 2002 by HR Outsourcing Today magazine. In January 2003, Dr. Fitz-enz launched his personal advisory service on human capital strategy, analysis, forecasting and measurement: Dr.Jac & Company.
  2. Sound measurement centers around quality, efficiency, and service. To sustain a competitive advantage, you have to do unique things. Increase Effectiveness, Gain Competitive advantage, Boost Profits (EAP)
  3. HR Metrics should be commonplace for every organization, regardless of size, industry, location, or success. Come to the strategic table with facts, figures, and a business interpretation of why it pays to be caring toward employees and why it is important to invest in human resources.
  4. Determine what gets measured Is it time to start or time to hire? Can you look at trend data for your organization? Have you conducted a business process analysis on your current hiring process?’s survey of 1,500 firms indicates the average "time to start" is 70 days.