Dave Lefkow asks “who will own performance management?” I have several responses.
Finally, a talent acquisition guy who realizes that talent management is not just recruiting. For ages, the talent acquisition vendors have been calling themselves talent management. Sure, it’s a component, but you don’t see companies like SuccessFactors suggesting that their performance product is a talent management solution. Certainly one component cannot be categorized at a TM solution. Thanks Dave.
Will TMS be owned by the point solutions or the ERP’s? At this point, I really don’t know. To me, the Point solutions have a nice head start, but this is due to the ERP’s not having good functionality for a long time. It is only recently that the ERP’s have focused on the talent functionalities, and their effort is showing. PeopleSoft’s eRecruit 8.9 is challenging the recruiting point solutions in a big way, and as I’ve mentioned before, SAP’s entire performance and compensation suite is looking good as well. I’ve long argued that it will be hard for new entrants to the talent management market. However, I can’t consider the ERP’s to be new entrants even though they have had little market share. They should be able to lever their existing relationships in HR to build new market share in this area. We’ll see who wins, but for now, the market diversity is a positive thing. (let’s not get into the SaaS versus ERP argument here)
And not to the real question of “who” will own talent management internally within HR. I disagree with Dave that talent management organizations don’t exist. They may not be as prevalent as their components of OD, learning, compensation, etc. More and more, these organizations are not transforming, but I think they are asked to collaborate under an entity that has a talent point of view – for example under a “VP of Talent.”
The question of who owns TM is quite interesting. In the world of Dubs where my rigidly unshifting paradigm that compensation creates order in the world of HR, I still think that compensation is a major contributor. In the world of talent where the critical driver is engagement, and the driver of engagement is the quality of the “work” compensation build the foundation, but recruiting, performance, learning all must collaborate to create a cohesive program that makes sense through the entire employee lifecycle.
As Dave notes, it’s not the application capabilities that create value, but the people and processes that are driven from the technology. I’d take it a step further and say that the talent organization must then build a value proposition and a work environment that engages your workforce.