Verizon Communications, Inc.: Implementing a Human Resources Balanced Scorecard

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Overview This study discusses the four "Perspectives" specified in Kaplan's and Norton's Balanced Scorecard framework, focusing on their implementation at GTE4). Subsequently the efficiency of Garret Walker's and Randall MacDonald's internal communication strategy is evaluated and in the final chapter a summarizing conclusion is provided. Introduction In 1996, J. Randall MacDonald, Executive Vice President of Human Resources at the GTE Corporation was facing the challenge to create an HR strategy supporting GTE's workforce through a major business transformation. Moreover Charles R. Lee, GTE's CEO wanted to know what the company was actually getting back for the money spent on various HR related activities. The main problems for GTE…show more content…
In contrast, the "Customer Perspective" defined at GTE did not consider external customers but only focused on internal customers, that is, GTE employees. As a consequence the measures associated with GTE's "Customer Perspective" did not include any data reflecting the perspective of the company's external customer base, indicating that GTE HR was not interested in measuring the impact of HR activities towards the company's main, if not only revenue contributor. To better understand the value that implemented HR activities, focusing on call center staff provided to external customers, HR should have considered external customers in their "Customer Perspective". Measures like illustrated in table-1 should have been introduced to evaluate the satisfaction of GTE customers with the support and help provided by call center employees. Measures to quantify the quality of GTE customer support Percent of support calls escalated to support representative's supervisor (all calls are recorded and can be used as evidence). Percent of support calls where customers provide praise to support representative (all calls are recorded and can be used as evidence). Percent of support calls that are rated "excellent" (without the knowledge of the support representative, support calls are conducted by a 3'd party, hired to evaluate the quality of GTE's customer support). Table 1 Measures to quantify the quality of GTE's customer support For example understanding the
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