HR Reporting, Metrics, KPI and Dashboard;

Speaking Language of Your CEO

7th Learning Session of DUHRP

Facilitator

Foisal Mahmud Rownak

MBA (DU), PGDHRM, LA ISO 9001:2008
Assistant Manager-C&B
Digicon Technologies Ltd.
 DUHRP

Contents to be Covered
HR Reporting HR Reporting, Types, Orientation, Managerial Requirements, Reporting Outcomes and Real Life
Example

Metrics Conception of Metrics, Quality of HR Metrics, Orientation of HR Metrics, Major Metrics related to HR,
Industry Based Examples and List of Metrics

KPI Basics of KPI, Efficiency, Business Process, Service Quality, SLAs, Time Line, Major KPIs examples
by Functionalities

Dashboard Definition, Types of Dashboard and alignment based on Management, Measuring Return on
Investment, Some critical Excel Equations to be used in Dashboard, Real Life Examples
 What Characters Most CEOs Have
MICROSOFT CEO STEVEN ANTHONY BALLMER
Character: Complex. Many note that during his tenure as Microsoft CEO the company has
tripled revenue and doubled its profits. But Ballmer is known to be a hothead, and
was accused of going into a rage and throwing a chair around at a 2005 meeting where MS
executive Mark Lucovsky was leaving MS to join Google. Ballmer is also famous for making
strange impossible promises for his company that the PR department then has to correct at a
later date, and also of making embarrassingly off-target soundbites, like "We don’t have a
monopoly. We have market share. There’s a difference." He famously laughed at the iPhone on
its launch.

APPLE CEO STEVE JOBS

The essence of Jobs, I think, is that his personality was integral to his way of doing business.
He acted as if the normal rules didn’t apply to him, and the passion, intensity, and extreme
emotionalism he brought to everyday life were things he also poured into the products he
made. His petulance and impatience were part and parcel of his perfectionism.

CEOs and diamonds are a lot alike: Most are flawed in some way, all are
hardened and formed under crushing pressures and intense heat, and they are
judged by degrees of quality.

Measuring Diamond’s 4 C’s Carat, Cut, Color, Clarity

Quality

Credibility, Competence, and

Measuring CEO’s Quality 3 C’s
Caring
 HR executives need to forecast critical social, legislative and people trends, leading the
organization in implementing programs that have front-line buy-in and really matter to
the business.- HBR -The Role and Future of HR: The CEO’s Perspective

Critically, however, CEOs do not want senior HR executives to be

blind followers but rather savvy interpreters of trends, with the
ability to separate business-relevant trends from fads. They want
HR to translate trends into valuable opportunities for the company,
preparing the workforce, as one CEO said, “to drive more
productivity in the business.” Another CEO said that the senior HR
executive needs to be someone who has “an unbelievable desire
to grow the business—always thinking about what’s next.”- HBR -
The Role and Future of HR: The CEO’s Perspective

• Silent-Most Loyal Workers, such as , Regiments of Army

• Baby Boomers- Civil Rights activism in Vietnam
• Generation Xers- “slacker” generation. question authority figures and are responsible for creating the work/life
balance concept.
• Generation Ys- first global-centric generation, having come of age during the rapid growth of the Internet
Place of HR Analysis in Human Resources functional development

COMPETITIVE
ADVANTAGE
 Total line manager accountability
(Consolidation)  Internal consultants
 Add value
 Integral to company success
BUSINESS  Long term vision and strategy
 Integral contribution to business plan
PARTNERS
 Strong influence on other departments
(Integrated)
 Member of top team
 Quality systems and processes
PROACTIVE  Service management
(Rapid growth)  Intellectual
 Customer/needs focused capital/knowledge management
 Workforce empowerment and teams
 Pro-active/improvement
INTERNAL  Management Measuring Return on investment
development
POLICE  Policies and manuals  HR Analysis & Presentation
 Leadership training
(Emerging)  Controls — headcount, hiring,
 Comprehensive database
 Succession planning
restructuring, travel, relocation
 Workforce planning
KIND HEARTS  Reporting systems & budgets
Performance management
 Basic measures — turnover,
(Lending Support)  Cafeteria absenteeism Workforce productivity
 Car park  Technical and skills training
BASIC  Security  IR disputes, grievances
NEEDS  Recruitment  Gymnasium OH&S procedures
 Induction  Social club
 Payroll  Christmas party
 Admin/Records
 Leave

Accessed from: services.thomson.com.au/hrinsight/docs/HR_Intro.ppt

Stand Point of Modern HR-The Gap Between Goals and Performance

Source: HBR,2014, The Age of Modern HR Building Human Resources Management Systems That Deliver
Human capital is one of the least measured and analyzed investments, despite the fact that more than 70% of company costs are
labor related

HR Reporting
 Why HR Reporting???
Determine
Outcome
• Increase visibility of HR
• Understanding Cost Base Measure &
Create Cross
• Departmental Budgets & Headcounts Adjust
Functional
• SMART Business Decisions Data Team
HR
• A positive, employee and customer-oriented Reporting
Culture.
Assess
• Check and Balances of Finance and People Build Program
& Execute
Outcomes
Measures

Analyze Data

Traditional HR Modern HR
• Ideas
• Abstract
• Results & Evidence
• Conceptual Understandings
• Perceptions
• Based on Emotions & Empathy
• Assessments

“Less then 10% of the 968 firms studied by Becker, Huselid and Ulrich (2001) has a formal estimation procedure to
measure HR”
 Managerial Level Reporting Requirements

SMART Objective Graph, Charts, Trends

Summarized Hierarchies, Slice, Dice

Analysis

Detailed Data, Operational

Monitoring Operational/First Level Reports
Management
Outcome of HR Reporting

Progression (Weekly, Monthly, Quarterly, Yearly)

Loss from absenteeism and Turnover
HR Cost Center
Credibility of CHRO
HR Metrics
 Quality of HR Metrics

• Very Precise, Informative, Accurate, Correct, Meaningful

• Consistent and progressive planning and development
• Follows benchmarks of business & Support Functions.
• Driven by business strategy
• Impact measured in BDT / $ / Percentage
• Enabled by technology
• The level of HR metric used is driven by the needs of
both client and provider
• Validated.
• Check & Balancing for specific period.
Stand Point of Modern HR-The Gap Between Goals and Performance

Source: HBR,2014, The Age of Modern HR Building Human Resources Management Systems That Deliver
 Orientation of HR Metrics

HR Trusted Revenue & Net income per FTE:

Advisor Salary & Benefits, CTC, Turnover
Cost etc.

HR Business % BDT Impact: Like % of Benefit

Partner , HR Expense Ratio, Turnover
Cost Per Employee etc.

HR Service Transactional: Like Lead Time to

Provider fill, Number of Positions Filling
Corporate Business Manager etc.
 Examples of Key Metrics

Static/ Operational Metrics-HR Efficiency Related Metrics

Budgeted Manpower V/s Actual Manpower
Division wise Productivity Report
Attrition Report
Exit Analysis Report
Male Female Ratio
Probation Confirmed Ratio
Budgeted Manpower cost to Actual Manpower cost
No. of Trainings conducted & Man Hours
Legal Cases
Daily staff strength with attendance, shift wise, absent ratio.
Daily leave details. How many employees on leave.
Monthly salary Details, Pf/ESI/IT/Prof Tax deductions. etc
Monthly transfer details
Monthly/Annual promotion/Rewards details
Recruitment done/pending vacancy status
Employee relations/interaction programmes.
Training details Monthly/yearly
Employee exits details. Turn over details. Monthly/yearly.
Administrative MID,such as travelling cost, vehicle cost, canteen
cost etc..
 Examples of Key Metrics…. Cont.

Trend/ Mid Level Metrics-HR Effectiveness Related Metrics

Differences in performance between internal/external hires

Acquire
Strength of employer brand
Time to competence
Development of people in priority talent segments-Succession Planning
Develop Development of priority skills and knowledge for current and future business
priorities- Acquisition or Merger
Knowledge sharing/knowledge management

Performance and Reward impact in revenue %

Reward
Benefits on Total CTC
Relations of Intrinsic rewards and Engagement Metrics

Agility & Change Readiness

Retain Extent of Organization Purpose and values are shared
Retention of Key Talents/ Management Development Programs
 Examples of Key Metrics…. Cont.

Top/ Intervention Level Metrics-HR Impact Metrics

Innovative capacity within the organization

Employee skills to maximize added value of service/product
Productivity levels
Agility of workforce and organization
Customer service excellence
 Key Performance Indicators

“As someone working on ways to improve organizational performance measures, I know how important it is to look
for guidance and the best of what others have done. Those looking to improve their choice and use of key performance
indicators will fi nd thought provoking ideas and valuable examples of good practice.”
 KPI – Key Performance Indicators

A key performance indicator (KPI) is a business metric used to evaluate factors that are crucial to
the success of an organization. KPIs differ per organization; business KPIs may be net revenue or a
customer loyalty metric,

How Many Major KPIs for an Organization?

However, Researcher suggests that between 4 and 10 measures are likely to be key for most types of company.

Revenue improvement Cost Reduction

Reduce Cycle Time Customer Satisfaction

Proven Level of KPIs in BPO- Customer Service Operation
Efficiency
• Cycle time from request to delivery
• Average cycle time from request to delivery
• Call length
• Volume of tasks per staff
• Number of staff involved
• Number of reminders
• Number of alerts
• Customer ratings of service
• Number of customer complaints
• Number of process errors
• Number of human errors
• Time allocated for administration, management, training
Service Quality
• Cycle time from request to delivery
• Call length – the time to answer a call
• Volume of calls handled – per call center staff
• Number of escalations how many bad
• Number of reminders – how many at risk
• Number of alerts – overall summary
• Customer ratings of service – customer satisfaction
• Number of customer complaints – problems
• Number of late tasks – late
Business Process
• Percentage of processes where completion falls within +/-
20% of the estimated completion
• Average process overdue time
• Percentage of overdue processes
• Average process age
• Percentage of processes where the actual number assigned
resources is less than planned number of assigned
resources
• Sum of costs of ―killed‖ / stopped active processes
• Average time to complete task
• Sum of deviation of time (e.g. in days) against planned
schedule of all active projects
Service Level Agreement (SLA)
• Percentage of service requests resolved within an agreed-
upon/acceptable period of time
• Cost of service delivery
• Average time, down time, availability
• Number of outstanding actions
• Deviations of Planned budget
• Percentage of correspondence
• Number of Complaints
• Average queue time & Cost per minute
• Number of complaints received
• Costs of operating a call center
 KPIs and Functionalities

+ =
Key Success Key Performance
Business
Factors (KSFs) Indicators (KPIs)
Objectives Tracked by.
Determine.

Monitoring, Improvement, and Evaluation.

Understanding of KPIs.
Measure Progress
Awareness of Maintenance Performance.
Track or Measure Actual Performance
Directly Linked to the Overall Goals
Only changes when Shift in Business Objectives
Track Specific Business Goals and Objectives
Types of KPIs
Process KPIs - measure the efficiency or productivity of a business process.
Examples - Days to deliver an order.

Input KPIs - measure assets and resources invested in or used to generate business results.
Examples - BDT Funding for employee training, Quality of raw materials.

Output KPIs - measure the financial and nonfinancial results of business activities.
Examples - Revenues, Number of new customers acquired.
Leading KPI measure activities that have a significant effect on future performance.
Drive the performance of the outcome measure, being predictor of success or failure.

Lagging KPI is a type of indicator that reflect the success or failure after an event has been
consumed. Such as most financial KPIs, measure the output of past activity.

Outcome KPI - Reflects overall results or impact of the business activity in terms of generated
benefits, as a quantification of performance. Examples are customer retention, brand awareness.

Qualitative KPI - A descriptive characteristic, an opinion, a property or a trait.

Examples are employee satisfaction through surveys which gives a qualitative report.

Quantitative KPI - A measurable characteristic, resulted by counting, adding, or

averaging numbers. Quantitative data is most common in measurement and therefore
forms the backbone of most KPIs. Examples are Units per man-hour.
HR Key Performance Indicator Report
For Period ended

This YTD
Criteria Measure Description Associated report Last period Change
period (avg)
Number of FTEs Changes in w orkforce numbers and Workforce Headcount Report
Headcount
Total hours utilised hours utilised by employee category Workforce Utilisation Report

Workforce turnover % of total w orkforce terminating Turnover performance and cost

Workforce Turnover Report
(unplanned) Total $ cost of turnover impact upon the organisation

Workforce % total hours lost to absenteeism Absenteeism performance and cost

absenteeism Workforce Absenteeism Report
Total $ cost impact upon the organisation
(unplanned)
Number of lost time injuries (LTI)

Number of lost time days Occupational Health & Safety

Occupational health and safety
Workers Average duration rate of LTI Report
performance throughout the
com pensation
Frequency rate of LTI organisation

Workers Compensation Costing

$ cost of w orkers compensation
Report
Number of discrimination complaints rec’d

Number of sexual harassment complaints rec’d

Number of physical harassment complaints rec’d

Equal employment opportunity and
Equal em ploym ent Number of w omen in management positions
affirmative action performance ER Status Report
opportunity
- senior management throughout the organisation

- middle management

Ratio of female appointments vs male

% of w omen returning to w ork after mat leave

Source: HR.Com
For Period ended

This YTD
Criteria Measure Description Associated report Last period Change
period (avg)
% of internal appointments above level __
Succession Planning Status
Succe s s ion planning Avg length of service of staf f appt’d above level Succession planning ef f ectiveness
Report
___
Number of unf air dismissal claims

Workf orce lost time (hours) ER Status Report

Employee relations perf ormance
Number of f ormal union grievances
throughout the organisation
% w orkf orce on individual contracts

Internal communications

- number of bulletins issued

Staf f alignment and commitment to the
- number of emails issued
organisation
Em ploye e re lations - number of staf f brief ing sessions conducted

Work/lif e balance

- number of active f lexible w ork agreements Organisational success in providing an

- number of active w orking f rom home ef f ective w ork/lif e balance program
agreements f or all employees

- number of active job sharing agreements

Workf orce teams

Organisational ef f ectiveness in
- number of active teams creating and sustaining a team-based
structure/culture
- number of team meetings

% compa ratio

$ pay f or perf ormance gaps Organisational competitiveness and

Re m une ration equity in remuneration
$ pay equity gaps packaging/policy

% employee share scheme take-up rate

Organisation perf ormance in managing
Level of outstanding annual leave liability Accrued Annual Leave Report
Adm inis tration annual leave
Number of manual payroll adjustments Payroll perf ormance

Number of employees aged under 25

Number of employees aged 25–35

Demographic prof ile of employees by
Number of employees aged 35–45
age across the organisation
Number of employees aged 45–55

Organis ation profile Number of employees aged over 55

Avg length of service (current employees) Average length of service of

employees across the organisation
Avg length of service (terminating employees) and terminating
% ratio of salaried staf f to w aged staf f
Adequacy of w orkf orce planning
% ratio of surplus staf f to required staf f
Source: HR.Com
HR Key Performance Indicator Report
For Period ended

This YTD
Criteria Measure Description Associated report Last period Change
period (avg)
Number of FTEs in HR Workforce Headcount Report

HR FTEs as % of total w orkforce (FTEs) Human resources efficiency/cost

HR headcount
HR labour cost as % of sales/revenue effectiveness

HR $ cost as % of total w orkforce (FTEs)

Level of satisfaction w ith w ages/salary/benefits

Level of satisfaction w ith conditions/physical

w ork environment
Level of satisfaction w ith job Staff satisfaction levels w ith the
organisation and reasons for leaving.
Level of satisfaction w ith personal relations (This section may not be reported on a
Exit interview s Level of satisfaction w ith participation and regular monthly basis, dependent upon Exit Interview Report
recognition the volume of exit interview s received
Level of satisfaction w ith opportunities for and the need to create meaningful
development data and protect employee confid
Number of employees w ho w ould recommend
company
Number of employees w ho w ould seek re-
employment w ith company
% of appraisals completed on time

Number of formal staff grievances raised Performance management

Perform ance effectiveness throughout the
% of individual training plans completed
appraisals organisation. (This section is likely to
% of employees above competent be produced on an annual basis.)

% of employees below competent

Average satisfaction % vs norm Staff satisfaction levels w ithin the

Workforce attitude
organisation. (This section is likely to
surveys Average satisfaction % vs previous survey be produced on an annual basis.)

Source: HR.Com
 HR Dashboards

“Dashboards are much more than pretty data presentations. They are powerful, flexible
business tools which allow for true information democracy – actively empowering business
users at all levels to make better decisions every single day.”
Hyperion White Paper
Concepts of Dashboard

Organization Objective or Mission

Visualization of Key
Performance Indicator
Definition of Dashboard

A dashboard is "an easy to read, often single page, real-time user interface, showing a Graphical
Presentation of the current status (snapshot) and historical trends of an organization’s or Key Performance
Indicators to enable instantaneous and informed decisions to be made at a glance."

Visual elements of
Benefits of Dashboard performance Few sets of indicators
•Visual presentation of performance measures management system represent central
•Ability to identify and correct negative trends both a process and a performance areas
•Measure efficiencies/inefficiencies tool
•Ability to generate detailed reports showing new trends
•Ability to make more informed decisions based on Dashboard
collected business Intelligence
•Align strategies and organizational goals Diagnostic means of
Focus on trends and
•Saves time compared to running multiple reports patterns to monitor
ascertaining what is
•Gain total visibility of all systems instantly working well and
performance what needs attention
•Quick identification of data outliers and correlations
 Types of Dashboard

SMART Graph, Charts, Trends

Objective Strategic
Management

Summarized Hierarchies, Slice, Dice

Analysis
Mid Level
Management

Detailed Data, Operational

Operational/First Level Reports
Monitoring
Management
Dashboard Outcomes

• Elimination of Efforts on consolidation of Reports

• Reduce repetitive time for monitoring complex process
Cost Savings • Reduce time for Non Value adding Reporting time and
more concentrated on Core Process
• Elimination of Redundancies
• Boldly enforce compliance of process

• Better Decision Making with more current and live

information
Business
• Better business insight with improved data visibility
Benefits
• Proactive and timely decision making through alerts and
exception management.
• Improved interactions with Ext. Stakeholders with
Transparent Communications
 Dashboard Types

Static/ Operational Interactive/Tactical Dashboard Strategic Dashboard

Dashboard
Monitoring Dashboard BI Portal + Dashboard Scorecard

Analysis Standard/Canned Interactive reporting Statistical Models

Reports Advanced Visualization Planning Models
Scenario Modeling

Management Typically Not Alerts Strategy Maps

Available Workflow (Possibly) Planning Models
Dashboard- Best Popular Method- Mind tree Approach

Metric
Selection and
benchmarking Alignment
Metrics
Guided with Industry Balancing (Right
Analytics (3 blend of Lead
Analysis Levels) and Lag
Design & indicators)
Navigation
Dashboard
design
validation by MindTree’s Metrics
Association
usability
specialist
Performance
Management
Approach
Supply Related “Right” Visual
Analytical Construct
context Selection

Focus on
Context
metrics action-
Mapping with
ability
Metadata &
(exceptions &
Analysis notes
alerts) Visualization
 Key learning Elements

1. Monitoring is important to directly controlling behavior and indirectly to Actionable

performance - the speedometer reading impacts how hard or soft Tom Common
Interpretation
pushes on the accelerator
Credible Data

2. A few key measurements will go a long way toward keeping a company on

Transparent &
track towards achieving its improvement objectives - like those on a simple
calculation
speedometer and fuel gauge.
3. Seemingly relevant, but cumbersome, measurements are of little use, and
are possibly a hindrance, in helping to improve performance - like the Temp
Gauge in the car.
4. Picking the wrong measures and leaving out important ones could lead to
situation like losing market share or having poor financial performance is - Perfect Metric
the way getting speeding tickets and running out of fuel is an expensive way
to drive a car.
Right Balance of Metric

•Lagging Indicators •Leading Indicators

•Corporate Metrics •Predictive
•Reactive •Actionable

Value

•Data Integrity Issues •Lower-Level Metrics

•Subjective •Small Audience
•New eMetrics

Cost

• Financial Metrics Will Typically Be Quicker Hits

• Ops & Quality Measures Typically Take More Time & Money
• Predictive & Market Measures Can Be Game Changers
Reference: Shadan Malik - Enterprise Dashboards,
 Alignment – Metric Association and Grouping

Type Description User

Functional Dashboard

Enterprise Holistic view of the enterprise from consolidated data Senior Management
across divisions and business segments
Divisional Performance metrics for the division (E.g. Sales, HR, Divisional Heads, Operational
Finance, Purchasing) Managers
Process Monitor business processes or widespread activities Across multiple user profiles

Application Specific metrics defined for transactional applications Users of the application
within which dashboard is embedded (E.g. Asset
management)

Type Description User

Subject/Role-

Dashboard
Based

Vendor Metrics relevant to vendor Vendor

Customer Outward facing dashboard with metrics relevant to Customer
customer
Employee Metrics relevant to employees Employee
Reference: Shadan Malik - Enterprise Dashboards,

Slide 35
 Visualization – Why it is Important

A Simple Example:
Your organization has grown leaps and bounds.
You can use the below table to prove the point……

1984 11 2003 1100 10000

# of Employees
1989 30 2004 2300
1994 130 2005 3900
2000 300 2006 6000 5000
2001 400 2007 7800
2002 600 2008 9500
0

1994
1984
1989

2000
2001
2002
2003
2004
2005
2006
2007
2008
Obviously, the table above has little impact…..

Year

Representing data with right visual construct meets the objectives

1. Makes it easy to comprehend data

2. Amplifies the impact
Reference: Vivek Singh – 14 tips to present awesome charts
Dashboards- Examples
Visualization - Choosing the right construct

A bar graph A pie chart

showing would have
shareholding been a better
pattern of a
company
choice

A pie chart however is not a good choice when comparing

the shareholding across multiple companies
Co 1 Co 2 Co 3

A bar graph showing trend

on sales and
profitability…can it be
better?

A stacked chart would have served the purpose better

Yes! When it is more than

15 data points and a trend,
a line graph is more
intuitive.
Co 1 Co 2 Co 3