MEASURES FOR THE

EMPLOYEE LEARNING
AND GROWTH
PERSPECTIVE
I NG. SUSA NA SOR I A NO

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 The first step in the core competence process is identifying
the differentiating competencies you need to achieve your
Human strategy.

Capital agree that the best way of doing this is to involve as many
Measures people as possible from all levels of the organization.

Using core competencies Focus groups and interviews can be used to assess
company needs and competence gaps. If you haven't gone
to measure skill through this “competence inventory” process, it could
development. represent a good first-year metric for your Scorecard.

Once you do have an inventory of the skills your staff

possesses and those required to execute your strategy, you
can begin to attack the delta between the two. “Strategic
job coverage ratio” is a possible metric for analyzing that
gap over time.

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 Many organizations have introduced the idea of personal
development planning (PDP) to assist employees in
Human Capital generating goals.

Measures Once you've identified the core competencies you need

to be a leader in your industry and your employees have
Using personal development developed plans that signal their contribution to your
planning to boost competence goals, you re ready to begin measuring. Track the
holders. percentage of employees who meet their PDP goals.

Don't make it an annual measure. To motivate action on

this important task, ask employees for quarterly or even
monthly progress updates.

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 Virtually every company will have at least one
Human Capital performance measure relating to employee training
initiatives.
Measures
Measuring employee training.

for example. For training to prove effective, it must

be linked to organizational goals and objectives,
and companies should measure results of the
training (i.e., the demonstration of new behaviors or
skills), not just attendance. You should also
encourage trained employees to share their
newfound knowledge with their peers and networks
in the company.

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 Investing in competency development and personal
development planning should yield results in the form of
greater productivity, and many organizations will measure
just that.
Human Capital Measures

Employee productivity.

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 The instruments of b usiness: you have to ensure your
employees have up-to-date and modern equipment if you
Information hope to compete in today's economy.

Capital Access to informa tion.: What percentage of customer-

Measures facing staff have the ability to access detailed customer

information within 30 seconds of a customer interaction?
You should determine what information is critical to
Capabilities are a must for
employee decision making and develop a performance
success in the new economy, but
to achieve your goals, employees measure that tracks the percenta ge of employees who
must have access to certain have this information available to them.
physical and intangible tools to get
Information capital readiness: therefore, monitoring
their jobs done. Let's consider
“information capital readiness,” an assessment o f
some of these tools and how we
information technology (I T) capabilities versus needs, will
might measure their impact on
provide us with insights into where we must invest in
results.
order to leverage technology as a competitive advantage.

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 Emp loyee satisfaction. Perhaps the most common
Employee Learning and Growth measure is the employee
Organizational satisfaction rating. Satisfaction is a very valuable metric,

Capital so ensure you use the data appropriately by swiftly

acknowledging areas requiring improvement and
Measures developing action steps to improve them.

You should also consider using the many technological

All the training and sharing of
tools at your disposal to gauge the mood of your
information in the world will
accomplish little if employees employees more frequently.
aren't motivated to perform their Corporate intranets and e-mail systems can be used to
best or aligned with organizational
gather feedback from employees semiannually or
goals. Here are some
quarterly.
considerations when measuring
culture, motivation, and alignment

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 Organizational Capital Measures
Al i gnment. Your Scorecard should capture your strategy through the objectives and measures that make up your individual story.
In the early stages of your Balanced Scorecard implementation, a good alignment measure is simply the number of Scorecards
produced within the organization. Once the performance management discipline becomes more mature, you can refine the measure by
analyzing individual Scorecards and assessing their “degree of alignment” (i.e., the percentage of measures directly relating to your
strategic goals).

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 In groups of 4. for one the company where you work for, develop the following:

Mission, Vision, Values (the one that the company already has)

Briefly describe what your company does, the products and services it offers
Develop 3 financial objectives , measures and targets

Team Activity Develop 3 Objectives for the Customer Perspective , measures and targets

Develop 3 objectives of Operational Excellence, measures and targets

This activity counts as 50% of your
Develop 3 Product Leadership Objectives , measures and targets
grade for this third period.
Develop 3 Objectives for Customer Intimacy, measures and targets

The homework grade is weighted as follows:

40% delivery of the PDF document, it must include a cover with the name of all team
members

60% On Monday, April 17, briefly present in class (20min) the procedure according to the
document delivered, all students must be present at the exhibition.

Assignments turned in after the due date will be penalized.

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Encourage healthy lifestyles:
Experts suggest that over 50 percent of all mortality
is related to lifestyle choices. Many organizations will
include occupational health and safety measures in
the Employee Learning and Growth perspective, such
as lost time accidents, workers' compensation
c laims, and injury frequency rates.
You can measure your health-promotion initiatives by
tracking the number of employees who take
advantage of the program or gauging employee
attitudes regarding lifestyle choices. These measures
may also be considered leading indicators of other
popular Employee Learning and Growth measures
such as absenteeism, morale, and productivity per
employee

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Employee
Learning and
Growth
Measures

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SETTING TARGETS AND PRIORITIZING INITIATIVES
At the Balance Scorecard

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Different Types of Targets
Target can be defined as a quantitative
representation of the performance measure
at some point in the future, that is, as
our desired future level of performance.
The word “future” is key to the notion of
targets.
When developing targets. we can choose to
evaluate performance against a goal just for
this month, quarter, or year, or we could
develop a longer-term aspiration requiring
additional effort and performance

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1. Long-term
Targets
The idea behind long term targets is
that it will dramatically shake up an
organization by throwing at it a
monumental challenge that cannot
be achieved through business-as-
usual operations, but will instead
require tremendous effort.
Most long term targets take
between 10 and 30 years to
accomplish.

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1. Long-term Targets

First, a worthy objetive is Second, an extended time

unlikely to be met in a year horizon ensures
The long time frame or two. The extreme executives do not sacrifice
serves two purposes. challenge it represents will long-term results for
take many years the sake of achieving
to conquer. a shortterm goal

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 2. Midrange
Targets:
Stretch Goals
Stretch targets are set three to five
years in the future.

Example: Moving customer loyalty

from 40 percent to 75 percent over
a three-year period would constitute
a stretch target, as would doubling
stock price or inventory

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3. Short Term: Incremental
Targets
Most organizations use annual targets; however, greater benefits can be derived by aligning
targets with the reporting frequency of performance measures.

For example, you may wish to measure “market share” on a quarterly basis. Your target for the
year is 50 percent, but you may be able to break that down to 40 percent for the first quarter, 44
percent in the second, 48 percent in the third, and, finally, 50 percent at year -end. H

aving targets for each of the quarters endows actual results with more meaning for decision
making since you can now make valid comparisons between actual and targeted results.

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 CLASS ACTIVITY
Netflix Mission Statement

Our core strategy is to grow our streaming subscription business domestically and globally. We
are continuously improving the customer experience with a focus on expanding our streaming
content, enhancing our user interface and extending our streaming service to even more internet
connected devices, while staying within the parameters of our consolidated net income and
operating segment contribution profit targets.
Netflix Vision Statement

Becoming the best global entertainment distribution service. Licensing entertainment content
around the world, creating markets that are accessible to film makers and helping content
creators around the world to find a global audience.’ The brand promise is a quest;

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CLASS ACTIVITY
For the activity of the last class, make 3 targets for each of the forms of measurement

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