HR measures must improve important decisions about talent and how it is organized. This chapter has shown how this simple premise leads to a very different approach to HR measurement than is typically followed today, and how it produces several decision-science-based frameworks to help guide HR measurement activities toward greater strategic impact. We have introduced not only the general principle that decision-based measurement is vital to strategic impact, but also the LAMP framework, as a useful logical system for understanding how measurements drive decisions, organization effectiveness, and strategic success. LAMP also provides a diagnostic framework that can be used to examine existing measurement systems for their potential to create these results. We return to the LAMP framework frequently in this book.
We also return frequently to the ideas of measuring efficiency, effectiveness, and impact, the three anchor points of the talentship decision framework of Boudreau and Ramstad. Throughout the book, you will see the power and effectiveness of measures in each of these areas, but also the importance of avoiding becoming fixated on any one of them. Like the well-developed disciplines of finance and marketing, it is important to focus on synergy between the different elements of the measurement and decision frameworks, not fixate exclusively on any single component of them.
We show how to think of your HR measurement systems as teaching rather than telling. We also describe the opportunities you will have to take discussions that might normally be driven exclusively by accounting logic and HR cost-cutting, and elevate them with more complete frameworks that are better grounded in the science behind human behavior at work. The challenge will be to embed those frameworks in the key decision processes that already exist in organizations.