Applying the Cheat Code

I’m pretty hopeless in most games.  There are always levels, other people to compete against, and too many tasks to get done.  Inevitably, I run out of patience before I reach the top state, or I realize I’m not very good at the game and I just give up due to incompetence.  The wonderful thing about many games is the “cheat code.”  The cheat code often gives a specified commodity that might be useful in helping a player reach that top state.  The cheat code might come in the form of unlimited gold to but things, extra power for killing things, or even the ability to jump levels.  My only hope is the cheat code, the lame player’s way to the top.

Wouldn’t it be wonderful if we could apply a cheat code in our work lives?  If there was one, it can’t possibly be as simple as a game where you just google to see if a cheat code exists.  In real life, cheat codes are incredibly hard to find, but perhaps they do exist somewhere.  In the world of technology deployments, we certainly know what are NOT cheat codes.

  • Lift and shift deployments.  Let’s say you have a user experience problem and you want to implement a new core HR system and have much better cloud systems that employees interact with.  The reality is that you will end up with a much better UX, but when your employees log into the new system, they are not going to be any happier with the experience if you did a lift and shift implementation.  Simply going in and changing the technology without any of the other foundational factors really does not help you.  It turns out that other factors like your process design, your portal and content management, and your approval chains are still an obstacle.  Let’s say for example an employee has moved homes.  The fact that they still can’t find documentation in the portal that tells them an address change is only the first step, and payroll/state tax changes might need to happen, or how benefit pans are impacted is still a problem.  Sure, getting into a more beautiful system might give them incremental happiness, but it’s not enough to overcome the significant shortcomings in your overall program.
  • Radical technology transformations only.  In addition to #1, many organizations do radical technology transformations and completely forget the amount of change management they will need, or they defund the change management work stream after the first change order comes in.  It’s always sad to see an organization that has spent millions of dollars implementing technology that users don’t adopt because there was a poor change strategy.  Often there is nothing wrong with the technology, or the processes.  But when a user finds something hard the first time because they were not coached on the new process, the repeat user is hard to come by.
  • Saving costs by changing your processes only.  At the end of the day, you do have to realize that your users really are dissatisfied with your technology too.  Yes, they do hate the process because it takes too long and involves too many people that don’t matter to the outcome, but the interface is terrible and hard to navigate.  I’ve seen company after company implement new processes on top of really old technology and then wonder why the end users still complain.
    The moral of the story here is that people (change), process and technology all matter, and it’s hard to have huge successes if you don’t transform all of these three components together.

The good news is that there actually are some valid cheat codes.

  • Cloud.  Wait, didn’t we just say that you can’t just do technology alone?  Yes we did, but the facts are that today’s best cloud technologies allow organizations not only to shift cost and headcount resources in a highly efficient manner by removing in-house technology management, but process design is simply so much easier than it was with legacy platforms.  We’ll still need to remember to have good change management, but cloud really also makes adoption easier since the UX is so significantly better than older platforms.  Compared to legacy on-premise software, cloud platforms accelerate people, process and technology components and serve as a game changing cheat code.
  • Crowd.  I’m not seeing crowdsourcing in HR yet, but I think it’s a major cheat code for whoever can figure it out first.  We have build such huge and costly infrastructures around shared services, but today’s social technologies combined with metadata/tagging structures have the ability to let end users manage their own inquiries with the corporate cloud.  Imagine the employee who moves homes and asks the corporate crowd what to do, and receives multiple answers from the crowds with links to the address change function in HR, payroll tax forms, and benefits enrollment.  HR now plays the content curator role rather than the source of all content.

The thing to remember is that these cheat codes only are available for a short period of time.  At some point, everyone else figures what the cheat code is and everyone has the advantage.  The early adopters can leverage an advantage for a few years, while laggers suffer higher costs, lower adoption, poorer UX, and slower processes for years to come.

HR Technology Conference 2014: HCM Roundtable

Every year we’re trying to figure out what’s next.  7 years ago, I started hearing about social HR everywhere, but the market really wasn’t ready.  Every HR organization thought that social was a bad idea, with personal privacy challenges looming to kill any social enterprise initiatives.  2 years ago, we all took for granted that social was going to be a part of our businesses, and this year it really seemed like social finally became its own and is permeating many of our HR processes and technologies.  It lonely took 7 years after the vendors and advisor market predicted it for it to become reality.  (LOL)

During this year’s HR Technology  Conference HCM roundtable, it was fascinating to hear what everyone was working on (it was the first question posed to the group, and I’m not trying to bash any vendor, but I am representing my opinion of the answers).

  • What was fascinating was that 2 of the vendors were talking about a great user experience (Oracle Fusion and Ultimate).  Wait a second.  We’re still talking about UX?  How did these 2 vendors get a seat at this panel and only have UX to offer up for what’s new in the product.  It’s unfortunate.  Y’all gotta do better than that.
  • 2 of the vendors talked about machine learning.  (ADP and Workday).  Machine learning was part of an overall theme of the conference, and there was a follow-up conversation in this panel about it, but these 2 vendors were the ones who brought it up as a focus area in their opening comments.  When I think about social HR 7 years ago, I think that machine learning is what the next few years might be about and it seems like 2 vendors want us to know that they’re on top of it.  What is surprising here is who the vendors were – and it shows us that there can be surprises.  It wasn’t Oracle and SAP with their deep (and legacy) analytics engines and mountains of programmers.  It was ADP (wh-wh-wh-what?!?!  I LOVE that ADP is thinking about this as they have the largest client/employee base to run analytics off of.  Maybe I don’t give them enough credit.) and Workday (ok, maybe predictable since they seem to be thinking/innovating faster than the others).
  • Last up was SAP.  Can anyone say “extensibility?”  Actually, SAP was gearing up to talk about some really cool metadata and object architecture that will create extensibility, but they got cut off from a time perspective.  Leave it to SAP to make things more complex, but if we can get to configurable extensibility, that’s pretty cool.  Honestly, I would have expected Oracle to be on the extensibility bandwagon based on their application architecture.

I’m hard pressed to say whether machine learning or extensibility is what’s next, but I’d think that all the vendors should be working on both of them.  UX is table stakes, and you should not be allowed to talk at the table (or panel as it was) if that’s what you’re working on.  My guess is that SAP will have some chops in the machine learning space, but it just was not what they wanted to focus on.  It’s also interesting that ADP and Workday were not on the extensibility front as it’s clearly a focus area for the very large customers that SAP has as its client base (but maybe that’s why SAP is so focused).

In a few vendor comments unrelated to the HCM roundtable, the HCM vendor space is going to start reaching parity in the next year.  Oracle and SAP are picking up steam and finally starting to look competitive.  First of all, lets agree that I HCM software in vendor demo booths while I was at the conference.  The following is an aggregation of vendor demos and conversations I had with conference participants.  Here are a couple of comments around gaps or deficiencies that I’m still watching out for based on those conversations:  (alpha order)

  • ADP:  I was really quite pleased to see their new UX.  I can’t remember what it’s called, but they’ll be rolling it out to all of their products so that no matter what you’re on, you’ll have a similar experience.  My concern is really still around the back end.  ADP’s ability to stitch together a common front end on top of multiple back end (and still mainframe?) systems is pretty good, and perhaps when you’re outsourcing everything but the core HCM to a best in class payroll and benefits vendor, it might not matter what the back end looks like.  Maybe.
  • Oracle:  The main question is in the UX.  It’s simply not seamless, and it goes to the point of why they were focused on UX in the panel. It’s way better than the last couple of years, but one goes from the cool “mobile apply” look and feel into a slightly different transaction screen, into a completely non-appy environment in just a few clicks.  The first couple pages are well executed, but it just feels like they didn’t finish the job as you continue through a manager transaction.  The second question is in their customer base for sold Fusion Core HCM.  As I talked to conference participants, they were getting numbers from the Oracle booth anywhere between 400 to 600 (note to Oracle, please get your story straight).  There are still a lot of conference participants wondering why Oracle is giving Fusion HCM licenses away for free if they have market demand in the 100’s of customers.  It’s just not adding up, and nobody I talked to could figure out the story.
  • SAP:  I’m pretty sure that SAP is on its way to filling a few gaps.  Certainly per the above comments, if they are working to fill extensibility gaps that its large enterprise clients will need, they are also going to figure out benefits administration, timekeeping and payroll.  I talked to one conference participant who was told that benefits administration will be available to demo this quarter, and another who said they were told it would be in Q4 of 2015.  Either way it’s coming and that’s good news.  I think SAP’s original philosophy that payroll, time and benefits get outsourced, but for the top 250 clients in size, that’s a hard position to maintain.  (I don’t consider SAP cloud payroll to be comparable to Employee Central in architecture, agile configurability, or usability, so that’s why I harp on it.  I know that SAP would disagree).
  • Workday:  Everyone has been uber positive about Workday for years.  The questions among conference participants seemed to be around the viability of their recruiting module.  Granted this is their newest module, and the top vendors seem to have the capability to innovate rapidly over a couple release cycles.  Just as I’m confident SAP is going to figure out benefits quickly, same goes for Workday recruiting.

Having said all of this, I’m actually quite pleased with the vendor space.  The last couple of years (no matter what Oracle and SAP say) have been relatively uncompetitive.  There has been one clear winner in the market, and the fact that I don’t have to say who it was is a good indicator that it’s true. I think 2015 will get a bit more competitive, but 2016 will become an all out war.  This post is definitely “negative” about what my concerns might be, but what I don’t mention is the huge progress that all of the vendors have made and the very long lists of things they have done well and right.  I’m going to get in trouble from the vendors over this post anyway, but either way, I think 2015 is going to be interesting.  More viable vendors is always a good thing.

(Last comment.  I thought long and hard whether to post this.  Some vendor somewhere is going to be pissed at me, but at the end of the day, there were only 5 HCM vendors on stage, so any exclusion is not mine.  Also, each vendor chose to talk about what they talked about.  Perhaps they didn’t have enough time, but again, if Oracle really wanted to talk analytics but didn’t get to it, that’s not my fault.  Each vendor decided what they wanted to focus on by themselves.  The opinions in the latter half of this post are based on talking to other conference participants and seeing each of the vendors demo at their booth.  Posting this also saves me the effort of writing a year end post.)

Get Over the Cloud

I think it was back in 2004 that I was writing about “DavesNextMove.com.”  PeopleSoft had just gotten acquired by Oracle, and Dave Duffield was sitting around with $1B but no job.  At the same time, SuccessFactors was building up some pretty good steam, about to start having bad implementations because their stuff was so much cooler than everyone else’s that their deployments could not keep up with the sales.  RecruitMax had made their conversion to Vurv which was then bought by Taleo (if memory serves me correct).  It was also around 2003 or 2004 that I got my first work issued Blackberry.  Before that, my personal device was purely for phone calls.  10 years ago, we were just starting to get cloudy and mobile.  DavesNextMove.com became Workday.  SuccessFactors much later got bought by SAP to fuel their cloud HCM offerings, and Taleo by Oracle to bolster their cloud HCM.

The point being… that was 10 years ago.  If you are not already in the cloud, you’re somewhere between 5-10 years behind the times.

None of us can imagine being on our 2004 Motorola flip phone, so why is it ok that we’re still talking about deploying cloud technology today?  I still go to clients that tell me they are getting ready for PeopleSoft 9.3.  A recent conversation with a large employer informed me that a client on Oracle EBS had no intention of getting off of it.  If you are on-premise for HCM, chances you installed it between 1998 and 2008.  I tell you what – you can have your 10-15 year old technology.  Send me your iPhone, and I’ll send you a 10 year old flip phone.  It’ll be great.

By the way.  PeopleSoft was founded in 1987 and the underlying architecture has remained pretty much the same.  Where were you in 1987?  I was just starting high school.

The point being… your employees and managers hate you.  

You really think they don’t know that their employee and manager self service technology predates Amazon.com’s initial user interface?

Wait, if I’m telling you to get over the cloud, where exactly are you supposed to be?  All the cool stuff right now is in consumer driven technology.  Think Uber.  I don’t call a taxi service that controls where the cabs go.  I get on an app and the consumer controls the experience without a middleman.  Same with AirBnB.  Come to think about it, same with Quora.  Ask anything and a community of users will tell you how it is.  Hang on, we’ve been rating products to help other consumers on Amazon for years.  How many of us read the product description on Amazon?  Maybe a few of us, but pretty much 100% of us check the consumer star ratings first.

The same thing is happening in HR.  Companies like Careerify are helping employees control the recruiting process.  Instead of recruiting organizations pleading with employees to provide referrals, the technology advises the employee putting them in complete control.  Companies like Betterworks are making goals and feedback real time, collaborative, and truly valuable.  At the HR Technology conference this year, ADP and Workday were talking about machine learning where their tools will help employees predict what to do next faster and better than your HR people.

The point being…  HR isn’t the facilitator anymore.  If you are, then you’re not adding value where you should be.  HR should be sitting around analyzing what is happening, not managing it.  The power to create, transact, and collaborate is squarely in the hands of employees and managers now.  Time to give them the technology to do it.  

And if you’re still not in the cloud, you’re 10 years behind your competitors.

The new HR Portal is not an HR Portal

What exactly was Web 1.0?  I honestly can’t even remember.  I barely even remember Web 2.0 other than it was the advent of user interactivity so minimally executed that today’s teenagers would not even recognize it as internet. Oh, wait – I totally forgot that today’s teenagers no longer care about the internet.  Here’s the history and future of the HR Portal from the past 10 years, into the next 10 years:

  • 1990’s:  Most of us don’t have a high quality HRMS solution yet.  Don’t talk to me about a portal.  I don’t even know what Yahoo! is yet.
  • 2000:  We just implemented a recruiting system and might be implementing PeopleSoft soon.  Starting to realize that somewhere for managers and employees to go as a launch page might be important, but it’s an after thought.  I don’t have budget for it anyway.
  • 2005:  We just implemented Plumtree as our corporate portal.  Here we come PeopleSoft Portal!  Woot!!!  We have a link farm!!!
  • 2010:  We decided to get rid of our link farm portal and have something a bit more design oriented.  Usability just went up 10 times, but I still don’t know why our managers don’t use it and surveys say our portal sucks.
  • 2015:  Our portal finally goes mobile.  HR transactions are executed on phones and tablets, and the portal has a responsive design so it knows if I’m mobile or at a regular browser.
  • 2020:  We’ve integrated social transactions in all of our portal experience.  Employees can #HR and create cases in the case management system.  The employe population is also a form of crowd intelligence – half of the time my #HR posts are answered by peer before HR gets to it.
  • 2025:  The HR portal is gone.  In fact, what’s HR?  What used to be known as HR transactions are now just embedded in the business portal space.  My approval lists all appear on my phone (this used to be on a browser?!?!?!) in the same list my expense and procurement approvals are in.  Time to hire metrics are somehow integrated within a view of my financial budget for my department.

My point is that the HR portal is a bit of an stupid idea.  Apologies to all of the HR portal professionals out there, but nobody goes to the HR portal by choice.  We don’t find extraordinary satisfaction by checking our process diagrams and compliance mandates.  The fact of the matter is that nobody cares until they have to.  HR has had a habit of over communication.  We do have compliance stuff, and since nobody cares about the HR stuff, we think we have to pressure them into caring.

HR has it all wrong.  Managers and employees do care about stuff – just not the annual programs we drive them hard on, and not about the compliance stuff we won’t stop pestering them about.  Employees and managers do care about giving and receiving public recognition.  They do care about the things they are supposed to do that benefit others, like real time feedback and doing transactions if they are easy to do.  All we really have to do is make it simple, mobile, social, and relevant.

Simplicity:  This should be the mantra of HR.  K.I.S.S.  In many of our organizations, HR is the most at fault for writing 10 paragraph emails when 3 sentences and a link to more explanation would suffice.  We’ve made it so hard for any manager or employee to comply with HR policies and procedures that it’s no wonder they don’t like us.
Mobility:  This could be part of simplicity, but it’s more important than that.  The next couple of generations aren’t going to want to do anything if it’s not on their phone or tablet.  Oh, who and I kidding.  Better make they their wearable device.
Social:  We need to figure out how to embed social in everything.  There’s a #HR case management example above.  How about social real time feedback?  How about getting rid of competency models and using social expert profiles or having peers evaluate profiles like they do on LinkedIn?  Huge HR constructs that take 20 FTE’s to manage annually are dying.  In with the social crowd wisdom!  The sooner the better!
Relevance:  Can we stop with the HR stuff already and figure out what our employees and managers really want?  These are simply avenues to engage them in our processes.  Let’s take employee recognition as a launching point to rewards.  Let’s use social feedback to get people interested in performance.  Let’s use LinkedIn-like profiles as an entry point to talent mobility conversations.

Attention spans are decreasing every year.  If we choses to bore people to death, we’ll just be the same HR in 2020.

A Star Trek User Experience

One of my favorite all time scenes in movies is in Star Trek 4 (They Voyage Home).  Scotty and McCoy are hunting a local professor to get some plexy glass, and strike a deal to get it for free.  The deal?  Give the professor the chemical formula for “transparent aluminum.”  In order to do this, McCoy suggests that Scotty use the computer to show what they have to offer.  Scotty walks up to the Macintosh and expectantly says, “Computer?” to no response.  McCoy helpfully hands him the mouse and suggests, “perhaps you should use this.”  Scotty picks up the mouse and speaks into it smiling, “Computer?”  The professor finally says, “why don’t you just use the keyboard?”  Scotty grimaces and says, “how quaint!”  ((Dialog not accurate, I’m basing the whole thing from memory.))

We are entering the era where we’ll have people in the workforce that have a completely different experience with technology.  My oldest nephews all spend their evenings gaming with friends half a world away in real time, through voice, game and social apps.  In 20 years, there will be people who may not have had the need to type because dictation is so advanced.  (I’m continuously impressed with how well Google can translate audio into text)  Forget the fact that I didn’t have a PC until college and I used a typewriter in high school.  My newest niece (now 6 months old) will grow up waving her hands at devices or even having them anticipate her next need before she has to act.

I’m and old Gen X curmudgeon, but even I have consumer technology I would not have dreamed of 10 years ago.  My scale sends my weight and body statistics to the cloud via wifi every time i step on it.  This data syncs to my calorie tracker that I enter my daily food intake into.  Both of these sync to my daily workout data.  If I work out, my food app dynamically increases the allowable food intake.  At the same time, my phone is constantly updating what all my friends are doing and if anyone wants to talk to me.

Star Trek was not supposed to happen until the 23rd century.  From the personal technology perspective, we’re already surpassing the Star Trek expectations.  Sure, we’re not atomizing ourselves and beaming our bodies across the globe, but the communicator devices in Star Trek we mo better than the cell phone bricks we had in 1997.  Phones today do so much more than just being a “communicator” but the idea that all this stuff is sitting in the cloud doing things on our behalf would have been ridiculous a few years ago.

Here’s the point.  New entrants into the workforce just don’t get that we are sitting around running reports that have bad data in them.  They don’t understand when their manager fills out a form online that appraises their performance over the last year instead of right now.  They don’t get why we’ve banned Facebook from the network.  They don’t have any idea what you’re talking about when their team isn’t connected in real time all the time and they have to use email for everything.

We’re used to operating in a certain way in business because that’s the way we’ve been doing it.  We’ve let technology creep into our personal consumer lives and not expected work to be any different.  This new generation grew up with personal consumer technology and getting into the workforce is like going back to the 80’s for them – and they weren’t yet born in the 1980.

Our HR portals as full of link farms.  Our call centers are, well, call centers.  Policies and legalese written things that don’t communicate anything but what not to do.  Information retrieval is like finding a needle in a haystack.  We’ve all known that we hate this stuff for decades, but didn’t do anything about it.  But alt least we know how to use it.  To a Millennial, a link far is like weird old mysticism gone bad.  We need to recraft our technologies to make them social, real time, mobile, interactive, and just plain usable.  And we can’t wait for them to get used to us, because honestly their way is better.

Time to take a look at good old HR Service Delivery and realize it’s not good, just old.  Let’s redo the entire thing in an entirely new way.

 

Big Data For HR & Recruiting: 2 Use Cases

Forget about Google.  One of the world’s favorite sites has got to be LMGTFY.com.  “Let me google that for you.”  With the wondrous world of the internet and ubiquitous information, ubiquitous access through our mobile devices, and ubiquitous connectivity, whenever someone asks a dumb question in email, you get to just send them back a link to LMGTFY.com (since most of the time you don’t actually know the answer anyway – I can’t count the times someone asked me something I didn’t know but I gave them the answer after googling it.)  It’s a bit sad though, that we have such incredible access to information in our personal lives, but our access to HR information seems to be severely limited.  We are just starting to do cool things in HR to answer interesting questions about our employees, but in a couple of segments of the industry, it’s about to get completely fascinating.

(NOTE TO READERS:  I stopped writing about specific vendors a long time ago, but today I’m going to highlight a couple that I think are doing really great work – but it’s more about the work that I’d like to highlight, so don’t take this as a vendor plug!!!)

Oh, we love buzz words.  I know I’ve been writing about big data and social HR a lot this year.  If the last decade was about the shift from HR administration to talent management, the next decade is going to be about creating insights about our people and making them own their own development.  When we talk about information, Google, Yahoo, Microsoft have been creating algorithms to search data for years.  HR just hasn’t had to tools to do it.  Things are about to change rapidly.

Use Case 1:  Using Big Data to Use Your Employees:
Use your employees?  Oh that sounds terrible.  The reality of this is that it’s really cool.  A small company called Careerify (careerify.net) started selling a product last year that allows you to easily grow the volume of high quality employee referrals you get.  What they do, is they allow employees to connect their Facebook, Linkedin, Google+, Twitter and whatever other networks they have, so that you can help them understand when they should refer someone to the organization.  Let’s say for example that you have an opening for an electrical engineer.  Careerify would help you push an internal campaign to your employees, perhaps sending them an email that automatically identifies people in their network who are electrical engineers.  It goes a step further though.  Because you might be linked to a number of the employee networks with a variety of data, you can target the location of people on top of jobs.  But it even gets better… let’s say you know you have a culture of people who are active, outdoorsy, and fit, and there is an electrical engineer who happens to be a bass fisherman and loves to skydive (based on photo tags in Facebook).  This EE would be scored higher than individuals without those interests.

The ability to mine employee networks (with their opt in) and present employees with easily selectable pictures they can click on to invite someone in their network to apply is almost too easy.  We all know that employee referrals are the fastest, highest quality, and lowest cost recruiting source we have, but we just never knew how to make it easy for the employee.  By using big data to reach into employee networks and analyze profile attributes and even tags and update activity, you could literally improve your core recruiting metrics (time to hire, cost of hire, quality of hire) in weeks.

Use Case 2:  Bringing More Information to Recruiters
To be totally honest, I’ve been trying to work out why recruiting is always ahead of the curve when it comes to HR technology.  I think at the end of the day it all has to do with the fact that it’s a function the business actually depends on.  If they (managers) don’t do performance reviews, their organization probably won’t suffer for months or years.  If they don’t fill the open seat though, their productivity is suffering the very next day.  A company called eQuest (been around much longer than Careerify) has been using big data to answer some of those questions around “why aren’t I hiring anyone right now?”  What is interesting and wonderful is the completely different approach organizations like Careerify and eQuest are taking.

eQuest looks at the market through job boards, and correlates your recruiting activity to activity in the market.  Basically, if that same electrical engineer position is still open in 60 days, eQuest can tell you what ever other company is doing differently.  For example, based on what is out on the job boards, you have 3 EE jobs open out of 50 in your local area.  It just might so happen that you are offering a lower compensation rate, so you are getting 60% fewer candidates than the average EE job opening (demand is up, but you have not adjusted to market yet).  Or, it could just be that in the last 6 months, there are fewer EE candidates even looking at and opening those job postings (supply is down).

Unlike Careerify who tries to solve the problem by making it easier for your employees to help you, eQuest tries to solve it by putting better data in your recruiter’s hands.  Both are completely valid mind you, just different approaches to big data.  With either technology, I actually think we are getting closer to LMGTFY.com for HR and recruiting.  When my internal recruiter asks me if “I know anyone,” I’d have to think about it.  But if Careerify asks me, and automatically sends me a clickable picture of 5 people who already match, I only have to think about whether I really want that person around or not.  On the other hand, if my recruiters are asking “Why the F isn’t anyone applying for this job?” eQuest can probably give you a pretty good answer as well.

Jocks vs. Nerds

“There’s this idea of the jocks vs. nerds thing. That sort of ended when the nerds won decisively. We now live in this era where your big summer tentpole movies can be hobbits and minor Marvel Comics superheroes and boy wizards. If you had told me when I was in junior high there would be a $200 million movie about Hawkeye andBlack Widow, I’d be like, ‘Hawkeye — that guy’s lame!'” Jennings says. “Those nerds started running Hollywood studios, and our captains of industry became Asperger types with acne scars.”

I was reading about what Ken Jennings (of Jeopardy! fame) was up to these days, and there was the above quote that I found hilarious.  It’s totally try though, especially for a guy like me who lives in the Silicone Valley.  High school might have been a time when the jocks ruled the world, and college was a transition time, but once you get into the workforce, there are really grate charismatic guys running businesses, but the people who are really redefining the world and how we change our behaviors to adapt to the world on a daily basis are quite clearly the nerds.

(Credit to the HR Technology Conference and Bill Kutik bringing IBM’s Watson computer for making me think about Ken Jennings)

I’m continuously thinking about analytics these days and I start to think that HR has also started the transition from “people people” to something a bit nerdier.  Maybe we are in that college stage I mentioned above – we’re no longer just the people that you go to for benefits and worker’s comp – that was over a couple decades ago.  We’ve started down the path of Talent Management, and we’re probably still trying to figure that out.  We keep talking about really great analytics, but we really don’t do it well.  I think what we need to really get to a mature level of HR as a profession is we need to get nerdier.

Talent Management:
It’s entirely possible we’ve been wrong for the last decade.  We’ve built these incredible competency models, tracked how and when a goal should cascade, and automated all of our talent processes.  I don’t think the business is convinced that we’ve actually improved the core employee’s ability to get developed.  Think about what you yourself did 10 years ago.  Big deal that you can now enroll yourself in training on-line and you have a cooler performance tool that is not a piece of paper.  Have the majority of employees in any company really experienced a perceptible difference in talent and development outcomes?  I’m guessing not.

It’s entirely possible we need some nerds to take over.  I don’t care how much HR shepherds the process along – if the employee and manager don’t own their own talent, it’s game over.  The only way to do this (that I can currently think of) is to create easy to use, social, real time, talent engines.  I’m thinking of an engine that quickly allows a manager to give feedback or development instructions when and where they think of it, then have seamless execution (again in real time) by the employee.  All of this has to happen without the HR practitioner and then roll up at the end of the quarter or year so we get that macro view of progress.  Without real time integration with the employee and manager though, all we have is another failed HR process.

Where HR gets involved is not in shepherding the process, but instead in managing success.  If we can mine the data and understand who is doing what, what works, and where we are missing the mark, that is where the value is.  Somewhere and some point, process people are still important as we make the transition, and certainly we need great change people to get manager adoption, but what we really need are analytical nerds who get how to interpret data.

HR Analytics:
I really hope we don’t have illusions that we are any good at this – we’re not.  We have technical people and we have functional reporting people helping our organizations create reports.  We have vendors feeding us cool dashboards that we then flip and roll out to our managers and executives.  What seems to be missing to me… the statisticians.

Have you ever talked to the finance guys about what they are doing in their analytics functions?  The stuff they produce is absolutely amazing – and they are set up in a pretty different way than we are.  Financial models are very complicated, but shouldn’t our models of people resources be just as robust?  In fact, if anything we have more complex, more dynamic, and more diverse data sets.  If we were dealing with numbers, our lives would be easier – but we deal with more complexity with less sophistication.  No wonder we walk into the executive boardroom and don’t get credible respect.

It’s interesting – when I look at the type of people HR hires, we automatically know we’re not going to have the best friend relationships with Comp, Payroll, IT, etc…  Those guys are just different from us.  I mean, my God, they are analytical in a totally different way.  Embrace the difference – it’s what HR needs, and it’s not even enough.  I’d love to see us start to hire the nerds – math majors and people who can come up with complex statistical understandings of the HR world.  We are in our infancy for understanding HR, but it’s because we don’t structure our organizations in such a way to create deeper understanding.

Get used to the fact that the nerds have won.

SaaS Is Here: Get Over It IT!

There was a long time ago I could pretty much build my bike from scratch.  Yeah, I could assemble everything, that’s easy.  Putting on gears, lacing up spokes onto wheels, getting the brakes on.  I even used to pick out the individual ball bearings that went into my bikes.  Then came a day when the ball bearings got sealed into cartridges making them last longer, roll smoother and easier to maintain.  In a couple years, hydraulic brakes for road bicycles will be here.  The industry has gone past my ability to build my bikes from scratch.  I can still do most of it, but for the highly technical pieces, I rely on an expert mechanic.

A few months ago, I had a conversation with one of my clients about whether they should “buy it or build it.”  Really?  I honestly didn’t know those conversations even happened anymore.  I really thought all the conversations these days were about should we use SaaS or stay on premise.  I was reminded about this as I read the 2012 HR Technology Survey from Cedar Crestone.  One of the charts noted the differences between HR, IT and executive perceptions and challenges to move to SaaS.  Number 3 for HR and Executives?  Security and Data Privacy concerns.  Of course that was number 1 for IT.

I remember when I used to work for ADP a number of years back.  This is old school, but their tax service center was in San Dimas, California… quite at risk of a major earthquake.  It was in California for a number of reasons – primarily I assume because it gave them an extra 3 hours to file taxes in the U.S.  But while ADP’s state of the art tax facility was at major risk of earthquake damage, their backup facility was somewhere on the other side of the San Andreas fault in Arizona.  I remember talk about power lines coming in from all 4 external walls, just in case some guy with a backhoe ploughed through power lines on 3 sides by accident.

I also love conversations about data security.  Let me be blunt: unless you are Citi, Amazon.com, or Walmart, you probably don’t have an entire organization dedicated to data security and the upkeep of your SAS-## (whatever it is these days).  I’m sure you can do security well, but the chances you can do it better than the organization that does it as their core business, stop worrying about it.  Back to ADP for a moment – I remember always having a personal chuckle moment when a client or prospect said to us that they had their own tax accountants, and felt better about that than using ADP.  Guys, let’s be blunt again.  ADP has probably hundreds of tax accountants, and they are probably better than yours.

Just like taxes are not your core business, you probably don’t host servers as your core business either.  SaaS is here.  Get over it IT.

Is Cloud The Way To Go?

So I had to upgrade my cell phone contract.  I used to be on this thing where I had a bucket of minutes and text messages to use, and now I’m on exactly the opposite.  I have unlimited phone and text and about 10 GB of data I can use every month.  It really points to a shift in how we as users of wireless devices are working.  Less and less of our days are spent actually talking to each other, and more of our days are spent collaborating through various mechanisms that involve data.  I will admit to spending an exceptional amount of time browsing news on my phone, looking through facebook updates to keep tabs on people, and using my phone for work emails.  Nobody calls me anymore, and if they do, I get my voicemails through data (I read my VM, have not listened to one in years).

One of the big questions these days is about SaaS and Cloud.  Should we do it?  Should we stay on PeopleSoft or SAP HCM?

The answer for SaaS is a definitive Yes.

At some point, be it this year, next or in 5 years, you are going to move to the cloud.  I’m not an opinion about your current on-premise strategy, and I’m not making a judgment of you if you disagree.  I’m simply stating a fact.  Let’s tale a look at the facts:

  • ADP: The actual development of the Enterprise HRMS client server product is probably severely limited.  I don’t even know if they sell it anymore.  We do know that ADP Vantage is what they are selling and developing.
  • Oracle / PeopleSoft:  We’ve all heard about applications unlimited, but for those who thing that in 2020 we’ll still be going to a PeopleSoft Track at OpenWorld, I think you really have to evaluate your reality.  The developers are all on Fusion.  Let’s say you are right and there is still a PeopleSoft product in 2020.  How long do you think it will have been since your last major product enhancement?
  • SAP: Well, there’s HAHA, and there’s SuccessFactors.  Either way, SAP kind of knows that they are pouring development resources into the cloud.  Same conclusion as with PeopleSoft – it will be around for a while, but that’s not the whole reality.
  • Workday:  It’s already in the cloud from the start – no discussion here.
  • Talent Management: It does not really matter if you bought Taleo, SuccessFactors, Cornerstone, PeopleFluent, (I’m going to get in trouble for leaving out 50 companies), you bought into the cloud long ago for TM.

I’m not really trying to change your mind on the cloud here.  It really does not matter.  If you are an HR technology buyer, you simply don’t have a choice.  The vendors and the industry are in the midst of choosing for you.  In just a few short years, all of your premise based HR technologies are going to cease or significantly slow their development efforts and fully shift to the cloud.  If you want to be on a product that will be continuously developed, that is where it will be.

Just in the same way I really don’t have a choice to stay on my old cell phone plan, the world is moving on when it comes to HR applications.  It’s time to move with it.