Session Number 100 Caveat Emptor – Raising Your HR Technology Market IQ Freddye Silverman, HRIP Vice President, Eastern Region Jeitosa Group International 1 Freddye Silverman, HRIP • Former VP of HR Technology Solutions at Cendant, independent consultant for five years, now VP, Eastern Region at Jeitosa Group International • In the HRIS field since 1986, with responsibility for HR technology strategic planning and oversight of global HR systems and the U.S. payroll system • Active IHRIM member since 1988 and past president of the Association, certified HRIP • Jeitosa Group International provides global, strategic and functional human resources information technology support to Global Fortune 1000 organizations. 2 Level Setting • Source credit is given • No recommended products – vendor neutral and not all products or providers in any category may be mentioned • Not a case study • As always, find the best fit for your requirements, environment and culture 3 We’re here because… 4 Agenda • • • • • • Movement in the Market Talent Management, eLearning, Compensation Workforce Analytics and Workforce Planning Enterprise 2.0 Deployment options Product evaluation and selection 5 Recent Merger/Acquisition Activity Consulting Aon Hewitt Aon Hewitt Consulting ERP Plus Business to HCM Expansion Business to HCM Expansion Core Expansion ADP Workscape Towers Perrin Watson Wyatt Lawson Epicor Infor/ Golden Gate Capital Towers Watson Enwisen (service delivery solutions) Spectrum HR Lawson A volatile marketplace makes decisions more difficult 6 Recent Merger/Acquisition Activity Talent Mgmt Success Factors Jambok (social mobile learning) Plateau (traditional LMS) Talent Talent Clients looking Mgmt Mgmt Talent Talent Talent forMgmt a ‘holisticMgmt solution’Mgmt Organizations looking to round out offerings and improve market penetrations Undervalued companies areKenexa good deals Taleo Stepstone SumTotal ADP for cash-flush acquirers Continuing speculation about consolidation, GeoLearning Learn.com Mr Ted Salary.com Workscape PE buys, gorilla gobbles Softscape (e.g. ADP, Kronos) Vertical Extension Kronos API Healthcare (workforce mgmt software) 7 Why should I care? Beware the fairy tales of consolidation • We will continue to support all product lines fully • We are delighted with our new colleagues and expect • • • • to retain all of them Our customers will see only improvements in support, product roadmaps and overall happiness We will have ‘out of the box’ integration soon We have complimentary architecture This acquisition now gives us the deepest features and we are the only vendor with a complete solution Source: Naomi Bloom, Jason Corsello 8 Leaders and Innovative Players by Segment Leaders (a-z) Players to watch (a-z) HRMS WFM Learning Talent Mgmt Recruiting Comp & Benefits ADP Lawson Oracle SAP Ultimate Workday ADP Cybershift Infor Kronos Oracle Cornerstone GeoLearning Plateau Saba SumTotal Halogen SuccessFactors Softscape Taleo Kenexa Peopleclick/ Authoria StepStone Taleo ADP Benefitfocus Callidus Mercer Salary.com Synygy Aruspex Dayforce Certpoint Learn.com Lawson SilkRoad Sonar6 Jobs2Web SelectMinds bswift Varicent Source: Forrester Research 2010 9 What is a Talent Management Suite? Talent Acquisition Onboarding Performance Management Learning Management Compensation Management Career Development Workforce Planning Ancillary Software, e.g. HR TMS Jobs SkillSurvey – Prehire 360 Succession Planning 10 Creates ‘passive candidate database’ also – people who have given references and checked box to ‘Keep in touch’ 11 Manager Dashboard – Review Your Metrics SkillSurvey Goes Mobile SkillSurvey Mobile • On-the-go access anytime, anywhere • Use your iPhone, BlackBerry, Droid, or Windows-enabled Smartphone • No hassle for recruiters, candidates, or references Integrated with Taleo now; talking to ADP/Virtual Edge and Kenexa/BrassRing 13 e-Recruiting • April 2011 Bersin and Associates study of talent acquisition market – Almost 50% of surveyed organizations are looking to switch their TA vendor The age-old question: Is technology really the • Why such market churn? problem or are vendors – SaaS – advantage of ‘low barriers to entry’ is a disadvantage taking the blame for when it becomes ‘low barriers to exit’ – easy to switch broken processes without substantial financial penalty and poor change management – Saas contracts usually 36 months – many contracts signed during in 2008 prior to down marketand nowafter up for renewal implementation? – Akin to churn in mobile phone market where people jump from one carrier to another hoping for better service, phone selection, price, reception once cell number portability was offered Source: Bryon Abramowitz blog, The HR Technologist, 4/7/2011 14 Talent Management Evolution v.2 Performance Management Compensation Workbench iRecruitment Advanced Benefits Global Core HR iLearning HR Analytics/ Daily BI Compensation Management 2011 Update: Very little buzz about the SF or Silk Road ‘core’ Payroll/ modules OTL Learning & Development Employee Central Goal Management Performance Mgmt Oracle eBusiness Suite HCM Succession Management Recruiting Inform (analytics) SuccessFactors Business Execution Software 15 (BizX) The increasingly rare bird • • • • • • Sonar6 – based in New Zealand “Finally, performance reviews that don’t suck” Performance Reviews and Succession Planning only Winner of 2009 PWC High Tech Award Leads in the user experience area (Bersin) Performance mgmt should not be about automating performance…but about making, supporting and visualizing decisions…that drive corporate performance. We need more products like Sonar6. (Corsello) 16 TM matrix Performance mgmt Vendor Comp mgmt Taleo √ √ SuccessFactors √ √ Halogen √ √ Silk Road √ Plateau √ Saba Kenexa ERPs Sonar6 Authoria Cornerstone SumTotal Learning mgmt Succession Planning √ You must dig and √define √the √ √ functionality Career Development √ Recruiting √ √ √ √ √ √ Workforce Planning Onboarding √ √ √ √ √ There a √disconnect between√ how √ is often √ √ the√ TM system sees the organization of √ √ √ labor in√a company and how the job √ √ √ √ structure is maintained √ √ in the core HR system. This will hijack any efforts at √ √ integration. Evaluate the data structure and √ quality of your√ core HR system fully! √ √ √ √ √ √ Source: Bryon Abramowitz, Random Thoughts blog 17 eLearning Market • Mature technology, long-term vendors • Global market to reach $107 billion by 2015 according to industry analysts • Has proven to: – Reduce operational costs • Centralizes content • Lowers logistics cost – Simplify training programs • Enables uniformity in content delivery – Provides flexibility in learning activities • Anytime anywhere learning • Access to worldwide mentoring resources • Control of training calendar from multiple locations 18 eLearning Market Scan Plateau Saba Skillsoft ElementK Mindleaders SumTotal ERPs (GeoLearning) Blackboard Halogen Topyx by Interactyx Cornerstone on Demand Knowledge Planet Mzinga Stepstone (SuccessFactors) Taleo Many offer other TM modules, some are pure play 19 LMS a la Facebook – Feathercap by Xerceo • Sign up as an administrator or training manager – no charge to create a community – Service plans – ongoing maintenance and development – Configurable private secure full featured learning environment • Add team – use template to import learners • Content management – Use template to import from Articulate, Lectora, Presentor, Adobe Captivate – Can build content using their content mgmt system – pull from wikis, blogs, websites • Share courses, set up instructor led events, enroll learners, run reports • Ease of setup and reasonable cost 20 21 Ventana Value Index • Don’t just look at the graphics – read the research • Always read the ‘vendors not included’ waiver • Salary.com was part of the initial assessment but then was acquired by Kenexa which did not communicate its plans for the application’s future • HRsmart did not respond to inquiries or provide access to its customers and applications • Cornerstone on Demand, Excentive, Ultimate Software and Workday were not part of Ventana’s research coverage in 2010 but are being assessed for coverage in 2011. 22 Workforce Intelligence / Workforce Planning/ Workforce Optimization Workforce Intelligence • • Using metrics and (predictive) analytics to gain business insight Market players Doublestar Workforce Insight eThority Data Talent Microstrategy Embedded third party tools with intelligence, e.g. Ultipro with Cognos, SuccessFactors with InfoHrm Proprietary point-and-click and native SQL tools, e.g, Nuview Oracle – BI module, melding Siebel and Hyperion functionality into HCM SAP – Business Objects Workforce Planning • • • Getting the right number of people with the right skills, experiences and competencies in the right jobs at the right time – U.S. Dept of Heath and Human Services Office of Human Resources The confluence of talent management and analytics Market players Aruspex CAPTure Vemo Aquire (combines aspects of intelligence and planning) Nakisa (workforce visualization) Human Concepts (Org Plus) – visualization and analytics 23 “The Best of Human Capital Metrics” DVD Highlights from seven sessions of a Conference Board meeting Managing Tomorrow, Today: the Predictive Analytics Model, Jac Fitz-enz How to Apply Analytics to Business Problems, Jess Harriott and Jeff Quinn (Monster) A better Way to Account for Human Capital Costs, Stephen Wehrenberg (USCG) Workforce Analytics that Drive the Bottom Line, Shyam Patel, (People Report) The New Face of Workforce Planning, Tom Glasscock and Jennifer Murnane Advancements in Analytics, John Gibbons, David Scarborough From Reactive to Predictive Analytics, Jac Fitz-enz 24 25 HR still has trouble telling the story… As in talent management, where many years in we are still just automating performance reviews rather than driving business outcomes… Josh Bersin 26 State of HR Metrics – survey results summary A range of methodologies and software are in place across (mostly informal) metrics systems Most HR organizations characterize their HR metrics system as informal and the majority of systems are partially automated. Among those systems that are automated, a wide variety of vendor and consultant-provided software is used. HR execs also use a variety of measurement frameworks, although balanced scorecard and custom-built frameworks are most common. Majority of HR executives are not confident in the effectiveness or impact of their metrics system Less than 1/3 of respondents agree that their HR metrics approach is effective and few believe their system is as effective as those used by other functions.The majority of HR executives are not confident that HR metrics are useful in prioritizing Hr activities and investments, are linked to corporate strategy, provide line managers with the information they need to make workforce decisions or contribute to improvements in HR or corporate performance. 27 How many think your HR executives would agree with those statements? Corporate Leadership Council Member Survey: Exploring the Measurement Challenge Fall 2001! Not too much has changed in 10 years… Analytics is an ongoing challenge 28 All of your data in one place. Finally. Consolidate all data systems… DataTalent into one user-obvious interface. 29 Workforce performance, empowered. Workforce Analytics Get at-a-glance insight from dashboards. Track key metrics and automate HR reporting. 30 DataTalent Workforce performance, empowered. “We live in a society bloated with data but starved for wisdom.” Elizabeth Lindsey Ethnographer and National Geographic Fellow 31 Enterprise 2.0 32 Enterprise 2.0 – Using Web 2.0 tools to connect and collaborate Web 2.0 • Community – Architecture of participation – Collective intelligence – User-created content • Technology – Web platforms – Rich Internet Applications – Mobile platforms Social Applications • Social Networking – Locating interesting people and content – Social profiles – Social network analysis • Social Collaboration – Working with interesting people and content – Wikis and blogs – Instant messaging – Virtual worlds – Collaborative office • Social Publishing – Sharing interesting content – Social tagging – Social validation • Social Sourcing – Using social sites such as LinkedIn, Facebook, etc to source employment candidates • Social Learning – Combining traditional LMS features with social networking tools like Facebook for collaborative learning 33 Social Software Applications • Checkster – online reference checking – Candidate provides behavioral self-assessment – Reference sources complete same assessment for the candidate – Comparison report of both assessments generated • Rypple – collaboration software – “Work better, together” – Web-based software used by teams to stay on track – Set goals, get feedback, coaching and thanks – Supercharges communication, gives people control of their own performance and development 34 And the word is … App • Word of the year for 2010 • Apple announced its 10 billionth download at the beginning of March 2011 • Uses of cellphones: – 1 – email/texting – 2 – apps – 3 – talking • Mobile World Congress, February 2011, Barcelona 35 Mobile Apps are expanding • Buck Consultants – Benefits Genie Lite and Benefits Genie – to keep track of health benefits and store key health info that can be shared with a PIN for privacy • CareerBuilder.com – iPhone and iPod touch to search for job listings ‘on the go’ • Kenexa 2x Mobile – access to Kenexa Recruitment, Onboarding and Performance Mgmt solutions on iPhone and Blackberry. Approve reqs, job seekers can view and apply for positions • HRSentry – Two mobil apps for iPad geared to small business owners and HR pros – Access to glossary of HR terms and definitions, federal law info and updates, guide to creating an employee handbook • Cybershift Workforce Management 3G – Lets managers and employees view and manage time and attendance data via Blackberry • Peopleclick Authoria Collaborate – Allows managers to approve reqs, view reports and dashboards, candidates can scan openings and apply for jobs via Blackberry, Android and iTouch 36 In the Cloud (a throwback to 70’s-80’s mainframe timesharing) • Public cloud solutions – purest vision – – – – – • Private cloud solutions – Take public delivery model and scale it down to deliver computing capacity for E.g. Amazon Web Services, the individual enterprise Google, Salesforce.com – For very large organizations, could Hybrid Attempt to become one-stop shop cloud – reach same economies of scale as for all of an enterprise’s needs combines public public vendors Centralize all services in a few data – Consolidate storage and applications, and private centers to deliver global services at virtualize infrastructure, provide acceptable performance cloud acceleration to branch offices and abstracts away all complexity of a mobile workers physical IT infrastructure – Manage services differently via Via thin-provisioning and chargeback – ‘sunk’ data center costs virtualization, can offer a limitless are retrievable as a profit center data center infrastructure at low – Will not abandon IT investments but monthly cost will shift operation models to mimic public cloud 37 Portals: Market Movement In the old days (circa 2003-2006) • ‘Link-farms’ to myriad forms and static documentation • Plumtree Portal design firms • LDS • Hexaware • TandemSeven • Consulting firms – Mercer, TP, Accenture, etc Pre-Configured Portals • Towers Watson using Sharepoint • Unnamed ‘large consulting firm’ has delivered a pre-configured SAP NetWeaver Portal 38 Why SharePoint? 1. The most ubiquitous portal platform on earth 2. Extremely easy to create, maintain and organize content, pages 3. Provides a highly personalized, customized role-based experience 4. Powerful search engine 5. Robust collaboration features 6. Integrates with all ERPs and HR point solutions 7. Deployable on-premise or hosted/SaaS 8. Accessible via browser, smart phones, tablets 9. Accessible from inside and/or outside the firewall 39 Source: Towers Watson, IHRIM Webinar, Creating a Consumer Grade HR Portal Using MS Sharepoint SharePoint HR Portal Full-Time Part Time Managers New Hires PC Phone Retirees HR/Field HR HR Service Center Browser HR Portal HR4HR Collaboration On Boarding SPDs / Compliance Career Framework HRIS Towers Watson SaaS Apps Third-Party Content, Data, Apps Content Management Design, Layout Navigation Search Data Integration Content Workflow Web 2.0 Features Automated Alerts Authentication & ID Mgmt Portal Administration Content Storage (SQL) Case Mgmt BenefitConnect Talent | Reward Payroll Training Pension Reward Stmt HCM eLearning Time/attendance Health care PBM’s 401k Single Sign On SharePoint Functionality Vision Client on-prem Apps Dental 40 Source: Towers Watson, IHRIM Webinar, Creating a Consumer Grade HR Portal Using MS Sharepoint How A Pre-Configured SharePoint Portal Works • • • • • • • • • • • • • • • • Personalized and targeted content Pre-configured information architecture Pre-configured page templates Pre-written “work events” and “life events” Pre-configured forms library News, announcements publishing and automated publishing (RSS) Built-in content management & workflow (for editing, reviewing, approving and publishing) Quick Links to key content and apps Links to providers & 3rd party apps Unlimited depth of content (layers, subsites) Integrated “Ask HR” Issues and inquiry tracking Single sign-on Document Library Social networking Audit and archive of compliance content On-premise or Hosted – identical features and deployment time 41 Source: Towers Watson, IHRIM Webinar, Creating a Consumer Grade HR Portal Using MS Sharepoint Pre-Configured SharePoint HR Portal Access to personal info myPortal Intuitive navigation, mega menus, get use to most common content in 1 click. Quick Links exposes important content typically only found deeper in the site Single-sign on to essential data and apps creates a seamless online experience Special call-outs draw attention to important information – even when content resides underneath the homepage level. News is targeted based on location, role or any other available data element. Content on topics like Wellness or financial planning, can be RSS 42 feeds from external sources. Personalized content is targeted and filtered Powerful search delivers tailored results that can include other related sites in the search scope Live chat or email for additional information and assistance Interactive content, such as videos and online polls, engage users Rate or share interesting articles Featured stories appear on home page, all past stories easily accessible in archives. Source: Towers Watson, IHRIM Webinar, Creating a Consumer Grade HR Portal Using MS Sharepoint Deployment Options • Build and maintain internal infrastructure • Buy and maintain internal infrastructure • SAAS – Software as a service, “right to use” vs license, vendor-hosted – Subscription model – multitenancy – Web-based software – Not ASP – limited to configuration not customization – Single code base deployed across all customers • Hosted License – Outsource the infrastructure without giving up ownership – Personalization of application – Example: Oracle on Demand • Outsource – specific functions or CHRO 43 SaaS – be aware • • • • • • What it is: leased and hosted configurable web-delivered multi-tenant applications – No infrastructure responsibilities but you still have to pay attention to the maintenance and upgrades since your application is changing What it’s not: open your browser, key in the URL and bam! you’ve got a system Great delivery model, implementation still a challenging project – Significant time/dollar/resource effort, although typically shorter in duration than in-house – Client must understand and define their business processes to select and configure correctly - “otherwise you pave the cow paths” (Kutik) – Must convert historical data - cleansed, normalized, mapped Service and integration with internal systems must be addressed Biggest concern at many companies is loss of control and data exposure New acronyms – Plateau Talent Gateway – PaaS – platform as a service – CaaS – content as a service – XaaS – anything as a service 44 45 Product Evaluation and Selection 46 Does this sound familiar? 47 An Evaluation of ‘Systems’ must include: PEOPLE PROCESS TECHNOLOGY 48 Software Vendor Information Capterra.com Filter by platform, number of users, features, number of employees, location, budget List produced displays paid advertisers first, followed by complete list of all vendors in smaller print Comparehris.com Complete tool, view scored list of products closely matching listed needs Learn the capabilities of listed systems Determine needs by weighting importance of each feature or option View Detailed Comparison Screens View pre-recorded Demos Research and advisory firms Gartner ‘magic quadrant’ Forrester Aberdeen IDC Ventana 49 Items to consider for planning • Staffing – Without an appropriately staffed HRIS group to deploy, own and continuously market the applications, the effort will die on the vine – Hybrid skill set – high tech, high touch – If you depend on an internal IT group, what is their skill set? What type of technologies can they support? • Define your key drivers – Determine organizational direction – Global expansion? – Emphasis on talent management? • Economics – Funding availability • Timing – The world moves quickly; if process and technology rollouts don’t keep up you’ll set yourself up to fail – Short term planning (up to 1 year) should be your target 50 Objective Vendor/Product Analysis – Decision drivers and Scenario-based demos (not RFPs) Decision Drivers Weight Vendor Viability XX% Usability XX% Functionality XX% Technology XX% Configurability XX% Scalability XX% Global Capability XX% Integration XX% Cost/ROI XX% Vendor A Vendor B Vendor C 5 1 Vendor D 51 Caveat Emptor • The 80/20 rule applies – In most cases 80% of the functionality will be common – What’s that 20% difference and does it matter to you? – A long list of features doesn’t matter unless they match your requirements • Use scenario-based requirements for demos – – – – – Send to the short-list vendors ahead of time so they can prepare Allow the requisite exec summary and system overview Always remember what your drivers are Make sure all scenarios are addressed Save the glitz for last and be a healthy skeptic (demos are meant to be smooth) • Reality checks – Search reference lists for comparable situations – software versions, services selection, consultant roles – Bad marriages lead to ugly divorces – Best practices aren’t necessarily the ‘best’ for your company – Beware the stylish haircut – look in the mirror and make an honest self-assessment 52 53 ROI and ROE Return on Investment Return on Expectations • Why would the CxO write the check for technology procurement? • Don’t automatically accept the incumbent system due to investment – those are sunk costs and ongoing TCO may be higher than other alternatives that are a better fit • What is your strategy? • What are your drivers? • Does the system align with your needs? • At the end of the day, how do stakeholders expect the system to add value and improve their work life? 53 More reality checks… Input is a dirty job but someone’s gotta do it • There is no magic solution • ESS and MSS are value-adds but have increased the possibility for error • Be realistic when looking at potential functionality – how is the data going to get there? • Maintain data accuracy - edit and audit continuously Output is the true value of the system • Work backwards during the requirements phase – what do you want to get out of the system? • Reports/dashboards/metrics should be considered first, not last • Investigate retrieval tools, whether bundled or third party – getting at history in a meaningful way is still a challenge • Integration/interfacing is a key element 54 How do you find a consultant? • Selection should be as rigorous a process as system selection – – – – Problem solver Excellent communicator Personally disciplined Passion for doing what’s best for the client • Know your ‘needs requirements’ – strategic planning, project management or group therapy? • You must ‘click’ on – Approach – Cost – Personality/Culture • Check references • Use websites and referrals from similar companies/projects 55 The Consulting Landscape Research & Advisory Independents Broad HR Boutique Implementation ???? ERP Vendors SAP Oracle IT body shops CSC EDS (HP) CAP Gemini Product boutiques – Oracle: Kbace Niche Centric Recruitment mgmt – Talent Management – The Big Boys – Multiple practices Benchmarking BPO/IT outsourcing – Strategic/ C-Level 56 Blogs and Conversations • • • • • • • • • • The HR Technologist (Bryon Abramowitz) The Human Capitalist (Jason Corsello – KI) Naomi Bloom – ‘In Full Bloom’ Steve Boese on HR Technology – RIT professor (steveboese.squarespace.com) Perceptive HR Technology (Larry Dunivan, Lawson) Analyst blogs (Bersin, Gartner, Forrester) Use RSS feeds for easy access LinkedIn – HR Technology groups Twitter Filter the facts from the buzz 57 To put things in perspective… 58 For more information on this or any other HR technology topic go to www.ihrim.org http://core.ihrim.org 59 IHRIM needs your feedback! Please complete a session evaluation for Session Number 100 Caveat Emptor – Raising your HR Technology Market IQ Freddye Silverman, HRIP Vice President, Eastern Region Jeitosa Group International Thank you! 60
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