HR Technology Conference Reactions: Talent Management Panel

The talent management panel at The HR Technology Conference was all about diversity.  Not diversity in terms of workforce, but the diversity in terms of approaches in deploying talent processes and technologies that different companies take in pursuit of their goals. With Jason Averbook hosting, we had Walmart (2+ million employees), Motorola Solutions (called themselves an 84 year old startup), Merck (single global system in 84 countries) and ETS Lindgren (900 employees). At one end of the table, we had 2.2 million employees and the other end we had 900. We had SAP globally, and we had Rypple/

Here are some highlights (not direct quotes in most cases):

Theme #1:  Ongoing feedback. When even Walmart says they need to deploy ongoing feedback for a workforce that is 2.2 million strong, this is something to watch.  Generally when we think of retail, we’re thinking about a population with a full set of competencies from some very senior talent to some fairly low paid employees.  Saying that real time feedback is important for the entire population is a big deal, where many of us would traditionally just focus on the top tier of talent.  ETS Lindgren said much the same and have experienced a huge jump in positive feedback.  They have shown that social can really assist in the engagement equation, but realize that the constructive feedback still happens either in private messaging or in the manager conversations.

Theme #2:  Focus on what matters. Having just said that you spread the wealth in Theme #1, there did seem to be a consistent theme around making sure that the roles that really drive revenues in your organization are the ones you focus on disproportionately.  There was a discussion about “peanut butter spread” and it seemed there was mass agreement where you provide some global focus, but your time is really spent managing the interactions with the employees that will impact your bottom line most directly.  I also want to do a theme 2.5 here.  Merck had an important call-out I think.  They are starting with a revamp of their job structure.  For any deployment be it TM, HCM or Social, if your foundation sucks, you are not going anywhere.  You can roll things out, and you might get adoption, but you won’t have great measurement.  Merck had this to say, “If someone allowed the choice of getting the basics right or deploying collaboration tools, I’d say to look at the foundation.” More on measurement later.

Theme #3:  Things still need to get easier. Walmart had a nice example with talent reviews.  They used to walk into a room of executives with volumes of huge binders.  Instead of that, they give everyone an iPad with the employee data preloaded.  This makes the discussion more dynamic and flexible.  At the same time, you can have significantly more data at your disposal compared to the volumes of binders.  This is an example where it’s working, but there are still areas where data minim does not work.  Motorola asked the question, “If I want a restaurant recommendation, I ask my friends on Facebook and get immediate answers.  If I need a best practice, there should be an app for that too.”

Theme #4:  Flexibility. This one goes hand in hand with ongoing feedback.  One of the companies stated that they will go without formal reviews and formal ratings.  WHAT?!?!?!  Not having reviews and ratings is an experiment that some have tried in smaller organizations, but I’ll be excited to see how it works in a socially based larger organization.  This theme is also about the social thread that would not stop coming up in this panel.  Most everyone seemed to have a social strategy that included not only conversations, but also some ideas of recognition.

Theme #5:  Data and analytics. We talked a bit about Merck in Theme #2.  I also liked the blended TM/Social/Analytics theme that ETS Lindgren brought up:  We want to know who is having conversations and about what at any given time.  If we can figure out what our talent is talking about, how to connect others, and measure the impact of quality interactions on our bottom lines, then we can also figure out how to invest in growing those specific conversations.  (tie in to Theme #1).

Theme #6:  Sponsorship. Motorola had this to say, “Our CEO has 2 jobs.  Managing the bottom line, and managing talent.”  ETS Lindgren had this to say, “Our Rypple tool came from the CEO.  We wanted to do something different.”  Either way you cut it, they had great sponsorship to ignite and create change.  It doesn’t always have to be the CEO, but if you don’t have top level sponsorship at all, you’re sunk.


Why Can’t We Implement Succession?

I can’t quite remember when it was, but on a recent Bill Kutik Radio Show, Bill mentioned, “One of the things that drives me crazy, is every survey that comes out, everyone says that Succession Planning is their top priority, and then the following year, the same survey states that nobody implemented it.”  Bill’s absolutely right, and I’ve started wondering exactly what is so hard about Succession Planning that with all the best intentions, we just can’t seem to get moving on that front of talent management.

I have a theory that there are a couple of pillars that make us unable to implement it.  First of all, there are core capabilities that need to be created before we can get Succession in place.  While we can often think of Succession as a stand alone process from the rest of talent management, Succession certainly needs a few ingredients to work.  Fist of all, we want to be able to create plans based on actual measurements rather than the reviewer’s subjective opinions which we know would result in a high probability of bias and be subject more to potential successors networking capabilities than job capabilities (although this may not be a terrible thing).  What we need are a few years worth of performance and competency data.  This means that to have a quantitative means of measuring probable successors, we’d like to see trends and trajectory.  This can go not only for internal candidates since external candidates often have measurable indicators that may be public.  The core problem however, is that not only do we need the basics of talent management intact, but we also would like to have a few years worth of data.

Second, there is a distinct manager capability that is far beyond that of other talent processes.  In performance management, our managers are asked to measure direct employees on a specified set of performance parameters.  When we talk about succession plans, we are often asking our executives to look at possible successors that they don’t directly work with today.  They look at the capabilities of each candidate, level those candidates across the multiple business units, look at total experience, expertise and capability, and then look at potential.  Succession or our executives is far more complex than performance is for our managers.  We have an expectation that we can put in software and a process, but once we come down to the actual planning process for implementation, we realize that this is far more complex and the expectations are far higher than anything we have done before.

Usually what we think will happen is that HR will run all sorts of reports that show possible successors for each role, and be able to analyze those candidates so that meaningful conversations can be had with the appropriate successors.  We think this because we don’t really believe that a bunch of executives is going to sift through complex, detailed data on each possible successor.  However, this also means that the business process for Succession Planning is more complex than just the analysis.  In performance, we have a pretty reliable expectation that managers can figure it out.  In Succession, we have every reason to believe that HR business partners and leaders are going to have a series of meetings with executives to reach a final understanding of what the succession landscape looks like – and most of this happens outside of software.

When we really get down to it, Succession probably really is our greatest want and need.  When we get down to it, Succession really is more complex than we expect it to be.  However, we need to get succession right.  If we think Succession is bad, wait until we get to topics like workforce mobility and areas that are so cross functional and multi-threaded that we have multiple HR organizations interacting with multiple business organizations.

Bill Kutik and the Direction of HR Technology

A recent Bill Kutik Radio Show featured Tom Keebler of Towers Watson.  Tom is the Global Practice Leader of the TW HR Service Delivery Practice, and each year they run an HR Technology Survey that is probably the second largest in the industry (Lexy’s from CedarCrestone is significantly larger this year).  The TW survey is sometimes hard to get a hand on since it is distributed probably only to survey participants and Towers clients.  However, Bill gave us a brief look into some of the more interesting results of the survey, and for me, most of them happened to be in the vendor space.

While it’s no surprise that PeopleSoft has the most installs for core HR, it might come as a surprise that SAP has about a 20% market share.  This seems to be reflected in my own consulting as the number of SAP related projects or the number of core HR selections that involve SAP seems to be on the upswing.  The reasons for this seem to be simple.  In the large employer space, the number of companies who own SAP ERP far outstrips Oracle in any flavor including PeopleSoft.  All this means is that most of these large organizations already own SAP HR for free.  If you think about either SAP or PeopleSoft licensing when you get to 50k or 100k employees, you could really be talking about $5M to $20M annual software maintenance, so if you’re going to get HR for free, there seems to be some benefit to implement it.  That said, the integration that exists from a data and workflow perspective within SAP is hands down the best in the industry.  SAP flows transactions between ERP components like nobody’s business in real time.  Since PeopleSoft does not have nearly the same traction in other ERP modules (like supply chain, finance or CRM) they can’t boast the same thing.  There are of course tradeoffs in functionality or usability, but SAP seems to be catching up in the space.

What comes up as more of a surprise is that trailing PeopleSoft and SAP was ADP in 3rd place.  While I don’t know what the breakdown of ADP subscriptions is for small, medium and large employers, it’s probably safe to say that most of the subscriptions occurred in the TW small to medium space – that is under 20k employees.  What this does say about ADP is that they are getting lost of traction where organizations are still finding significant value in outsourcing payroll.  My thoughts on this is that 5 years ago when we were all excited about multi-threaded HRO, organizations are pulling back and looking at the ADP and Ceridian’s of the world to do single function outsourcing.  So while ADP’s Enterprise HRMS (v5?) is gaining momentum, I’m guessing that ADP’s GlobalView partnership with SAP is also doing well.  There are not that many organizations that can do global outsourced payroll like ADP can, and so companies with a major geographic footprint only have one place to go if they want a single vendor scenario.  (Single vendor yes, but lets remember than SAP and Cornerstone OnDemand are also part of the mix)

Last up on the list of interesting points was who the up-and-comers are.  This list seems to be based on who companies are planning to select or will be implementing in the next year.  On this list were Workday and SAP.  Again, the SAP is described above, but Workday has gained such traction in such a short amount of time that you have to be interested if they can keep up with the demand.  Certainly as the first true SaaS core HRMS, they have the ability for now to roll out functionality enhancements in the way that first generation Talent Management vendors were in the early days.  Second of all, their partnership for implementation with the Jeitosa’s and Towers Watson’s of the world should give them a bit of breathing space should the volume be larger than Workday can staff for internally.

It is a bit surprising to me that core HR seems to be changing at the pace that it is.  Usually when a market reaches a point of maturity, the vendor space settles down.  However, with the increasing viability of SaaS and the changing attitudes towards HR outsourcing, we continue to see an evolution of buying habits.  Here’s to core HR and keeping it fresh.

Note:  Sorry about the badge Bill, I’m just jealous I didn’t get a banner that looked like that.

5 Year Post

Can you believe it’s been five years?  I recently read my first post and actually thought it was an ok analysis of HRO vendors at the time.  Pretty funny to me how much things have changed, but also how much I’ve learned both through work and the blog.  I spent 2009 writing much less than I should have, but seem to have entered 2010 quite rejuvenated.  I’m pleased to say that I’m once again written out a few months as I used to do, and that my readership is growing once again after being a slacker for a year.  At any rate, I’m not sure how many others in the HR arena have made it this far, or who have written as much content, so it’s a milestone that I’m reasonably pleased with.

I don’t do a blogroll, there are far too many.  I do have a links list that references those whose posts I write about most frequently.  However, if I were ever to do an abridged blogroll, the below is it.  I know I forgot people, and I apologize.

I still pay attention to many of the people who inspired me when I started five years ago:

But also a whole new set of people who I follow on the blogs or twitter who have entered my scope (in the years after I started systematicHR) as content owners (although some of these have been content owners in a more traditional – non-blog sense for a long time):

I had originally said that I would stop writing at 4 years, but then 4 years came and went, and even though I was producing less, I just could not stop.  So I decided I’d get to 1000 posts and decide what to do, but I’m now confident I’ll keep writing after that milestone as well.  So long as there is content to write about, and as long as I feel that I’m doing it well, I’ll keep going.

So here’s to five years, and to my readers, and to all the people who inspire me.  Thank you.