Dave Ulrich on HR

September 1, 2006

This is from the forthcoming book The HR Value Proposition: Measures of HR Investment Impact
Elements of the HR value proposition Criteria for the new HR
An effective HR function . . . Possible Follow-Up Measures
(1) Knowing external business realities
Recognizes external business realities and adapts its practices and allocates resources accordingly.
Percentage of HR professionals who pass the business literacy tests laid out in Chapter 2.
(2) Serving external stakeholders
Creates market value for investors by increasing intangibles.
P/E ratio compared to competitors over time.
Intangible value (total market value less tangible value).
(3) Scores on intangibles audit in Chapter 3.
Increases customer share by connecting with target customers.
Share of targeted customers.
Extent to which customers participate in HR practices.
(4) Satisfaction scores from target customers.
Helps line managers deliver strategy by building organization capabilities.
Satisfaction scores from line managers on HR services.
Measure of key capabilities required for success (measures provided in Chapter 4).
(5) Serving internal stakeholders
Clarifies and establishes an employee value proposition and ensures that employees have abilities to
do their work.
Employee commitment.
Target employee retention.
(6) Employee productivity.
Manages people processes in ways that add value.
For each HR practice, evaluate its:
* Cost
* Volume
* Timeliness
* Quality
* Human Reaction
Perform a manager and employee assessment to see how they perceive HR
practices delivering value to them.
Do research to evaluate how those affected by an HR practice differ
from those who are not (for example, whether those who attend training
perform better than those who do not).
(7) Manages performance management practices in ways that add value.

(8) Manages information processes and practices in ways that add value.
(9) Manages work flow and organization processes in ways that add value.
(10) Building HR resources
Has a clear strategic planning process for aligning HR investments with business goals
Assess whether the HR planning process prioritizes HR investments.
(11) Assess perceptions of the HR strategy planning process.
Aligns its organization to the strategy of the business.
Evaluate the ratio of HR budget or headcount to overall corporate budget or headcount.
Survey perception of the HR organization.
(12) Assuring HR professionalism
Has staff who play clear and appropriate roles.
Evaluate the roles HR professionals play by a role assessment survey.
(13) Builds staff ability to demonstrate HR competencies
Evaluate the competence of HR professionals using the HR competence survey.
Assess the perception of HR professionals by their clients.
(14) Upgrades HR professionals
Assess behavior changes of those who participate in HR training events
Evaluate development experiences on the extent to which participants learn and change behavior
Thanks for your interest.

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