Taking HR to the next level - Deloitte

9. Continuously improve HR operationsImplement robust systems and leading practices to deliver HR services.Establish appropriate service levels and performance targets.Maintain a competitive cost structure relative to industry benchmarks.Effective service delivery requires HR staff with the right skillsand capabilities. However, it also requires tools, processes, andinfrastructure to help the HR staff succeed. Key enablers include:robust policies and procedures, integrated technologies, self-servicecapabilities, service-level agreements, reporting and analytic tools,and effective governance.Operational excellence in HR isn’t a destination — it’s a journey thatnever ends. Here are some keys to achieving desired results:Figure 10: Developing a Balanced ScorecardProcess Excellence“To demonstratevalue to thebusiness, whatprocesses mustHR excel at?”• Establish an “operational excellence” team to drive continuousimprovement. Consider certifying team members in Six Sigma orsimilar techniques.• Define standard operating procedures to provide consistency.• Manage processes from end to end, rather than in piecemealfashion.• Rationalize fragmented HR applications, prioritizing informationneeds and taking full advantage of ERP integration.• Develop training programs that emphasize continuous learning.• Establish rigorous governance processes to improve financialdiscipline and accountability.• Measure HR’s performance against service-level agreements andindustry benchmarks.Customer“To achieve ourvision, how shouldHR appear tocustomers?”HRServiceCenterPerformanceFinancial“To succeedfinancially,how should HRappear tostakeholders?”People“What does HRhave to do inorder to meetthe expectationsof its employees?”Figure 10 shows a sample framework that can be used to develop anHR scorecard for performance management. The scorecard has fourmain categories, each containing a number of related metrics. Anoverall score is calculated for each category based on its associatedperformance measures.Source: Deloitte Consulting HR Performance Management Framework1410