Easily Tie Compensation to Targeted Performance by Integrating SEM’s Balanced Scorecard with HR

  • by Pravin Datar, Director, SAP BusinessObjects Planning and Consolidations Solution Management
  • January 15, 2006
Learn how to integrate the Balanced Scorecard with HR to compare goals of the employees with company objectives. You can tie employees’ personal scores from the Balanced Scorecard to their salary.
Key Concept

Strategic Enterprise Management (SEM) defines strategies, scorecards, perspectives, objectives, measures, and initiatives. You can also form scorecard hierarchies and groups. In addition, you can assign scorecards to organizational structures, create performance overviews, and calculate personal scores.

Strategic Enterprise Management (SEM) Balanced Scorecards and HR appraisals are common functionality. However, integrating the two is not a well-known process. I’ll illustrate the integration capabilities between the Balanced Scorecard (part of Strategy Management and Performance Measurement [SEM-CPM], formerly the Corporate Performance Monitor) and HR (from R/3). The steps in the process are sequential and the existing documentation doesn’t mention the complete sequence. Therefore, I will walk you through the necessary steps to realize the solution. I’ll introduce the personal score in the Balanced Scorecard and go into details of integrating it with HR.

Pravin Datar

Pravin Datar works as director in the Enterprise Performance Management (EPM) Solution Management team at the SAP BusinessObjects Division. He has more than 20 years of business experience that includes management consultancy, ERP project management, and SAP SEM, BPC RIG, and EPM solution management. He holds a master’s degree in industrial engineering and an MBA from University of California.

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