Friday, 19 December 2008

HCM in the Balanced Business Scorecard / Strategy Map


You can see the separation of the people and business management systems in most businesses' strategy maps.

Most, in fact very, very nearly all, show linkages between objectives in the internal process, customer and financial perspectives.  But there are very rarely connections between people and objectives in the other quadrants.



Why is this?

It's because what we do in HR, and the deliverables of this activity, ie human capital, affects everything else we do in the business.  Eg having engaged people doesn't just support one objective for operational success, it supports all of the objectives within 'internal processes' and also directly informs objectives relating to customer and financial success.

They're two different systems, see.

But this only works if you think about human capital as the output of what HR does, ie of the people management system.  Still think human capital is just unnecessary jargon?



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