Three experts in the field outline a powerful measurement system that highlights the indisputable role HR can play as both a prime source of sustainable competitive advantage and a key driver of value creation. They draw from an ongoing study of nearly 3,000 firms to outline a seven-step process they call an HR Scorecard, specifically designed to embed human resources systems within a firm's overall strategy and manage the HR architecture as a strategic asset. Building on the proven Balanced Scorecard model, they also show how to link HR's results to measures-such as profitability and shareholder value-that line managers and senior executives will understand and respect.

The authors argue that human resources's strategic role begins with designing an HR architecture-the HR function, the HR system, and strategic employee behaviors-that relentlessly emphasizes and reinforces the implementation of the firm's strategy. Using compelling examples from a variety of leading companies, they explain how to develop and implement an HR Scorecard in order to both manage the HR architecture as a strategic asset, as well as measure the contribution of that asset to firm performance.

Content includes:

• HR as a Strategic Partner: The Measurement Challenge
  
• Clarifying and Measuring HR's Strategic Influence: Introduction of a Seven-Step Process
  
• Creating an HR Scorecard
  
• Cost-Benefit Analyses for HR Interventions
  
• The Principles of Good Measurement
  
• Measuring HR Alignment
  
• Competencies for HR Professionals
  
• Guidelines for Implementing an HR Scorecard