HR Metrics: The World Class Way

Author: Dr. John Sullivan
Copyright Date: 2002
Edition: First
Publisher/Location: Kennedy Information, Inc. Peterborough, NH
ISBN Number: 1-932079-01-7
Number of Pages: 199
Price of Book: $149.00

In this landmark work, Dr. John Sullivan proposes using metrics to make the business case for HR and to put HR in a leadership position in organizations. As a result of years of not being aligned with operations, HR has lost credibility among management. If HR is to participate in the organization's future, it must reinvent itself as a resource in touch with the business realities of our times. The new mission for HR is to create a competitive people advantage to the rest of the organization.

The author defines HR metrics as useful measures of results or output: quality, quantity, time, cost or customer service satisfaction. Since HR has not used metrics like this before, it cannot demonstrate its contribution to the organization's success. He calls the omission of metrics "old school" thinking, which restricts HR from demonstrating key business requirements like return on investment. The new HR uses metrics to describe the story of the of the organization's success. HR must also use metrics to identify problem areas early and alert management to take action.

Dr. Sullivan reviews key metrics and the thinking behind them in subsequent chapters. He covers metrics in several broad key areas such as: staffing, training, compensation, employee relations and even organization-wide metrics. The author emphasizes ways in which HR can improve processes and results to contribute to the organization's goals and objectives.

The final chapters deal with practical issues for the HR professional. The first is the discussion on building a reliable and meaningful information database, a feature critical to decision making at HR and operational level. Second, Dr. Sullivan walks the HR professional through meeting with the operational managers and making the business case for HR. Third, the author provides a framework of questions and an action plan for HR practitioners to change key thinking patterns and behaviors so that they will have more influence among the organization's managers.

This book is indispensable for the HR professional or HR function seeking to build credibility and influence within the larger organization. A caveat to the reader: prepare to have your traditional thinking challenged as you identify large gaps in the effectiveness of your measurement practices and your HR processes.

The book also includes a 75-minute CD Audio Conference (Q&A): Level I HR Metrics with Dr. John Sullivan.

Review by : Gerry Fisher