TM - November 2007 - (Page 30)

recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning to demonstrate the magnitude of critical human capital issues and to state the case for HR to play a key role in helping solve short- and long-term business problems. For example, a vice president of HR at a specialty manufacturer recently approached the COO, alerting him to the fact that the corporation would not be able to maintain its existing capacity and production standards over the next 10 years because its most seasoned production people were retiring. The vice president supported his argument with head count projections and average production per head, and he estimated the problem likely would cost the company more than $200 million in revenue over that same time period. That meeting and some follow-up discussions yielded funding for a group of internal HR consultants and operations people to assess the problem thoroughly and come up with a solution that likely will involve a combination of internal development, external hiring, moving some production offshore and establishing part-time relationships with yet-to-be identified high performers at risk of leaving the company — all initiatives in which HR will play a pivotal role. This project will include a broad array of measures such as time to hire, participation in accelerated Luxottica Retail: Using Scorecards to Build Stronger Business Partnerships Michael Brennan and Jason Averbook As a large employer with more than 34,000 associates, Luxottica Retail’s corporate HR team takes a sharedservices approach to meet the needs of each of its brands, which include LensCrafters, Pearle Vision and Sears Optical. As the nation’s largest optical retailing company with more than 5,400 retail locations, the company leverages functional HR teams to work proactively with internal clients on strategic initiatives, as well as operational issues that need improvement. Collaborating to Build a Scorecard which is testing the tool in a region. Designed to present regional brand leaders with concise information on how their stores are executing from a human capital standpoint, easy-toview charts and indicators offer visual appeal. Text fields, containing key questions regional managers can use with store managers to uncover behavior traits that drive associate performance, support the graphics. After discussing scorecard results and identifying performance gaps, regional managers can work with store managers to determine the next steps to improve performance. Conversations focus on insight and action planning, and brand leaders from operations and finance partner closely with HR consultants in learning and development, as well as associate relations, to review trends. To build this initial scorecard, HR worked with the IT department to identify multiple systems where the required data elements were housed. Luxottica then put together a long-term technology road map to automate data management, metrics calculation and presentation of information and analysis. Building on Success More automation will be needed because of brand leaders’ warm initial reception of the associate development scorecard. Impressed by this proof of concept, as well as the prospect of distributing various views of the scorecard to managers throughout the corporation as future best practices, they want all managers to be more cognizant of the workforce segments they oversee and of those they depend on to execute business goals. Consequently, HR will need a flexible and secure data infrastructure to deliver the custom views and drilldowns its growing audience will require. Plans have been made to collaborate further with the IT department to realize this vision. Further, HR increasingly will be held to standards established through its own scorecard. By more proactively identifying and managing the metrics its clients consider important, the group will have ongoing reference points for continuous improvement of the services it delivers. To more closely tie its services to the needs of the brand leaders it serves, Luxottica’s HR leadership team chartered a new HR analytics group to build an associate development scorecard. The tool, which is being created with the input of internal clients, is designed to support the creation, automation and dissemination of HR operational and workforce effectiveness metrics throughout the organization. The initial audience for the scorecard is one of Luxottica’s optical brands, 30 November 2007 talent management magazine www.TalentMgt.com http://www.TalentMgt.com

Table of Contents Feed for the Digital Edition of TM - November 2007

Talent Management - November 2007 Editor's Letter Contents Letters to the Editor Human Performance Leading Edge Learning Connections Viewpoint Finding Candidates with the Right Fit Turning HR Data Into Business Intelligence Compensation Technology: Drive Higher Performance, Gain Competitive Advantage The Art and Science of Influence Training the Ethical Workforce Making the Best Managers Application: Pre-Hire Testing Drives Down Employee Turnover at Advnace Auto Parts Dashboard: The Role of Learning Business Process Outsourcing Insight: Nationwide Insurance: On Employees' Side Advertiser's Index Editorial Resources Full Potential

TM - November 2007

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