HRM on Facebook Follow HRM on Twitter Follow HR Management Guide

HR Contribution to Balanced Scorecard

Human Resources plays an important role in the process of the development of the strategic balanced scorecard. HR is usually responsible for the leading and facilitating the People part of the balanced scorecard. HR has to prepare a lot of data and it has to prepare many analyses to propose to the management, what should be included in the People KPIs.

Additionally, Human Resources has to play its role as the employee advocate and it has to ask the employees about their opinions and emotions. Sure, it has to have the courage to tell the feedback from employees to the management. The employees are extremely important source of knowledge and they usually know, what is the real situation of the organization. When HR understands the employees, it can contribute to the creation of the balanced scorecard with highly appreciated remarks, which can be easily translated into long-term goals.

The balanced scorecard is about the shared responsibility among the managerial population in the organization and HR has to study the information about the products and services. HR has to find a way, how the financial and process reports can be connected with the reports produced by HR Controlling as the joint information creates the value added for the decisions of the top management. Many times, the decision of the top management is postponed just because of missing additional information (and honestly, HR is not good in reporting).

The HR contribution to the balanced scorecard is about the courage to stand up in the front of the managers responsible for the sales results and telling the HR opinion and what can be improved in the sales process from the HR perspective. It can hurt, but it is necessary, when Human Resources wants to evolve in the real Business Partner.