Cedar on Unlocking Human Capital

HR Scorecard Measures Department Value and Growth

Cedar Management Consulting International

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Sanjiv Anand, Chairman, Cedar Management Consulting International

An HR Scorecard, based on the Balanced Scorecard framework, helps make the HR function more valuable, focused, and performance-driven. It provides a “cockpit view” of HR by identifying the top 20–25 strategic HR objectives, the measures and targets to track them, and the key initiatives required to deliver results.

Since HR is not a revenue generator, the primary perspective is internal customers employees, line managers, unions, and senior leadership and their expectations around career development, compensation, skills, and workforce effectiveness. The financial perspective focuses on budget discipline, manpower and compensation costs, and returns on HR technology investments.

The process perspective identifies the critical HR processes such as recruitment, performance management, and change management that must excel, rather than trying to optimize all activities. The final perspective covers human capital and technology, ensuring the right structure, competencies, rewards, and automation of administrative tasks.

A well-designed HR Scorecard aligns the team, drives accountability, enables regular performance reporting, and positions HR as a practical enabler of enterprise performance rather than a theoretical function.