that’s the whole blog 🙂
that’s the whole blog 🙂
It isn’t a new idea that computers, mobile phones, websites and wearable technologies can be built in ways which influence your behaviour or causes you to think in a new way over time. While one could argue that this is akin to brainwashing, when used appropriately it can be very beneficial to end users as well as system owners. Just think how your smart-phone or Fitbit health band has altered your behaviour without you realizing it.
The idea of “persuasive computing” was first coined around 1990 by Standford University researcher Dr BJ Fogg. Much of his current work centres on teaching technology developers the psychology of behavioural change, and how to facilitate behaviour change via their technologies. Hello, isn’t this what HR people are supposed to be good at given that Psychology is the foundation of most HR professionals education? It begs the question as to why HR software vendors have not built their solutions with more “persuasive computing” thinking which could motivate end users to behave in a way that would benefit themself, HR and the organization.
Most HRIS vendors have developed visual dashboards, alerts and many use gamification techniques to encourage end users to do things, but in my view these are largely fear based design principles rather than motivational ones. These vendors are wedded to the “principle of standardization” ~ that a system process should be applied consistently to all users irrespective of their current habits, behaviours or motivation level. We need HR software that takes an individual’s current state as a base-line and uniquely “shapes” the HR software to suit that user. In the process of “shaping”, the end user is more likely to react in a particular way, do things suitable to their current state of behaviour & motivation level all while providing HR with a platform to influencing future behaviour of that individual.
BJ Fogg makes a great point that we cannot do complex things when our motivation level is low. Likewise we have windows of opportunity to do hard and complex things when our motivation level is high. SaaS HR tools in particular gather a lot of important Meta data that could quite easily be used to measure a users’ current state of motivation or other states of mind. When a users motivation is low for example, the HR system should “reshape” to encourage easy activities, while taking advantage of times when the end user has high motivation to get more difficult and perhaps more things done, while at the same time facilitating behaviour change so that these hard tasks become easy over time and can be done when motivation is at a lower level.
As HR people, our goal must be to think outside our rigid and standardisation boxes. To much of what HR achieves in our organizations are “feats of compliance” rather than value adding benefits. This is because we are standardisation-centric rather than employee centric. I would much rather a line manager do HR tasks that he or she is motivated to do, which add real business value and develop correct habits which facilitate personal growth in effective people management than forcing a person to comply to something because “HR says so!” – technology can help us achieve this.
There’s a greater role for HR software than simple process and transactional efficiency. For a tool that has so many components linked to people behaviour, we need vendors who understand persuasion and behaviour change though technology to come to the party.
You wouldn’t be wrong if the first words that sprung to mind as you read the title were “analytics” or “big data”, as they represent two of the three main components that drive HR system intelligence. Big data is really just a term that represents the massive amounts of information we create and collect in a myriad of digital systems such as email, collaboration tools, HR transactional, talent and payroll systems as well as our online social media activity using tools like LinkedIn, Twitter, Facebook and others.
Nobody really knows exactly how much data we collectively create. Whatever the volume or source, it’s really irrelevant, save to say that every individual in the workplace is creating a significant amount of data on a daily basis that could be extremely useful and valuable in the delivery of business- and people-related goals.
The data, however, is largely meaningless unless we firstly recognise what it is, know what value it will offer our organisations, and are able to apply analytical robustness in a creative and strategic manner to the raw data. Many will be familiar with the movie Moneyball, which highlights the power of using data and analytics to make business decisions regarding sportsmen. It’s now pretty common for top sports teams to measure a specific series of data points for each of their team members. They do this to ensure they invest in the right players from a hiring perspective, through to performance optimisation, risk (injury) management and termination.
This brings me to the third component which drives HR system intelligence – the human factor. While modern HR systems can be set up to provide historic, trending and predictive answers in a quick and consistent way, it takes people to ask the right questions, apply rigorous and causal measurement standards and to interpret the results correctly. System intelligence is far more than a set of logical technology sequences with a sexy user interface; it is a reflection of how the human aspect is applied to data interrogation.
What Moneyball also underscores is the need for absolute focus, commitment and trust in the analysed data. The real-life success of the Oakland Athletics baseball team, which the movie is based around, would not have happened if the right person, who loved and understood the data, was not part of the equation. This is important for HR functional and technology leaders to understand – HR analytics is not an activity you can simply add into your HR generalist’s job description. It’s a contributing factor to why HR departments have not been overly successful with their foray into the world of data analytics.
It’s good to see many HR system vendors actively embracing analytics directly in their HR software. Some provide fairly basic historic and trend analysis through online graphical reporting. Others are providing instant or embedded analytics that display results in a dashboard or by simply hovering your mouse pointer over an icon. More recently, we’re seeing diverse data and complex analysis engines being integrated into HR systems. These offer statistically valid predictions related to employee risk such as likelihood of resignation, best career move and ways to improve engagement.
The provision of complex analytic functionality by HR vendors is important; however, the HR system will not appear intelligent without the right human interest, creativity and skill. As tough as this may sound, your HR system’s perceived intelligence is a reflection of your HR leaderships’ views of data and analytics rather than the system-specific functionality. As we edge towards a completely digital work environment, HR leaders must address their role in future decision making through data intelligence.
HR system intelligence & HR implications
Rob Scott is global lead: HR strategy & innovation for Presence of IT, a leading consultancy in HR, talent, payroll and workforce management solutions.
Most of the time, if you ask any HR leader to explain how HR technology is contributing to the achievement of business goals you get a somewhat perplexed expression, supported by an eloquent explanation which suggests it’s being conveniently ignored because it’s too difficult or not practical. Alternatively they reference the vendors marketing rhetoric which promise share-price improvements that would get Warren Buffett excited!
It’s moving out of the administrative and transactional mould that has defined it for decades, and whilst the transition is often very slow and painful to watch, there are many organisations whose executives are maturing in their understanding of the unique value that HR functions can offer, and their direct contribution to business goals and strategy achievement. HR professionals can’t hide behind the mystique of psychology anymore; they need to show direct linkage from what they do and the outcomes it creates, including the role of HR Technology.
HR leaders are far more business savvy too, they will rattle off their business goals, they are succinct in articulating the meaning of value for their organisations, they understand cost, growth, quality and risk drivers, and they are familiar with industry and global issues, opportunities and constraints. So what’s the problem – why are so many HR leaders resistant to show how the performance of HR Technology has or could advance the business objectives and strategies?
Some of the answer to this question may lie in previous bad experiences with “template” measurement frameworks such as the Balanced Scorecard. These tools are often introduced as off-the-shelf “best practice” which generally lead to disappointing outcomes. It’s the one reason that I loathe HRM software vendors pushing a “best practice” mantra. HR leaders wrongly believe the hard work related to measuring their HR Tech value contribution has been done for them. It can never be true – your objectives, environment and how you want to achieve your business outcomes using HR Technology are absolutely unique. You need to do the hard, detailed work yourself.
Another reason is simply lack of know-how and practice. Most HR professionals have a social science background which engenders greater qualitative rather than quantitative focus. That’s not an excuse of course, learning how to build a causal-effect model which shows where HR Technology is leveraged, is not difficult~ it just takes some practice and adherence to some basic principles such as:
By way of a simplified graphical example, I recently had the opportunity to help a client think through a cause-effect model for “Innovation” – one of their strategic business objectives. The HR director wanted to explain how their HR technology was directly contributing and supporting this objective. When we finished the model, it became very easy to explain how this would be achieved. A key learning for the client was to link the HR Technology to “drivers” rather than the performance areas.
I’ll point out again that proving the “cause-effect” (performance areas in graphic below) is critical to establishing credibility. For example, my client had to validate that “Empathy for client’s needs” really did cause “Enthusiasm & Engagement” in their environment. Once that was established the drivers for performance were identified and agreed, and HR was able to determine which HR Technology was required and how it would be used to deliver measurable outcomes.
Of course there is a lot more work and involvement from other business functions behind this simple graphic, but hopefully it’s apparent that with some careful thought and focus, the real value of HR Technology can be measured and explained. Your next business case for HR Technology funding should be much easier to achieve if you have this in place!
photo credit: All rights reserved by shellydelight – Flikr
updated March 2016
It started as a jovial discussion with some office colleagues about the “Meaning of Life” – that yet unanswered question which has plagued human kind since the beginning of our existence. Naturally we considered all unconventional opinions such as that of Monty Python,
“Try and be nice to people, avoid eating fat, read a good book every now and then, get some walking in, and try and live together in peace and harmony with people of all creeds and nations.”
the Hitchhiker’s Guide to the Galaxy,
“The answer to the ultimate question of life, the universe, and everything = 42”
and to the more serious, such as concentration camp survivor Victor Frankl’s resolve to “Having a sense of purpose that keeps your eyes on meaningful goals ahead” and general theological views which purport “To love and serve your god, and love and serve others”
But it didn’t take long before the flavour of the conversation became focussed on People…. more so the people in the workforce. We found ourselves asking a singular and fundamental question:
“WHY DOES HR EXIST?”
It’s a profound question that may have been asked before, but probably not simply answered.
In trying to answer the question our natural HR instincts lead us to describe HR activities – you know, the tons of things HR gets involved with in-between “Hiring & Firing” such as recruitment, talent development, learning, administration, workforce planning, comp & benefits, strategy etc. We raised our discussion to a “People Impact” and “Value through people” view which got us a little closer, but we were still unable to reach consensus on the proverbial question.
I reached out to my good mate Lyle Cooper, who likes to ponder difficult HR questions. He reminded me that “No person has been able to absolutely define and therefore control human behaviour”- he makes it a life-rule to run as fast as he can from anyone who claims to have a definitive answer about people, culture, life, afterlife etc.
Lyle’s point really goes to the heart of social (or human) sciences, the basis for much of what HR does, in that they are not perfect sciences. No matter how hard we try, we are not going to create the perfect performance management environment, a perfect engagement model or the ultimate user experience.
And it was this point that reminded me of the ongoing debate among mathematicians about the answer to the mathematical statement 00 (zero raised to the power of zero). The arguments as to whether the answer is 1(one), 0(zero) or indeterminate are excruciatingly painful to read and understand (especially if you are not a mathematician like me).
But while there are extreme views, most mathematicians agree that 00 = 1 is preferable, as it is more useful than the alternative choices, leading to simpler theorems, or feeling more “natural” to mathematicians.
“The choice is not “right”, it is merely nice”, is resoundingly similar to the “lack-of-evidence” and “soft & fluffy” disputes HR finds itself embroiled in.
So, while not perfect in any way, my response to the question “WHY DOES HR EXIST?” is “00 “. It fits perfectly with mathematician’s dilemma. Business functions and HR professionals are unlikely to ever agree on a common reason for HR’s existence, but by accepting 00 = 1, HR professionals are able to move forward. HR will make validity concessions, builds faulty frameworks, creates imperfect processes and design software to support an imperfect business environment – and that’s okay!
One day we may find that much of what HR is doing is wrong, in the same way many mathematical assumptions may be questioned if and when someone conclusively proves what the answer to 00 is. But until it’s proved otherwise, let HR execute its stuff…its time to stop focusing on the equation!
HR is imperfect!, but so is mathematics (and therefor finance, procurement and operations management) – the next time someone challenges your HR framework, assumptions or software choices, be sure to remind them that the meaning of HR = 00.
written for and originally published in Inside HR magazine (Feb 2015)
You could be forgiven for thinking the relative simplicity and user-friendliness of modern HR SaaS solutions need less business transformation effort to embed them effectively into a HR and business environment. The oft vendor pitch of having a newly acquired SaaS HR solution “up and running” in a very short timeframe is very appealing to buyers, particularly if they’ve had prior ERP project experiences encompassing flashbacks of complex and error-prone planning, designing, testing and cut-overs etched into their long-term memory.
However, the lure of a swift, pain-free and cost-effective implementation can mask the very real need for a transformed business environment that supports the new SaaS HR solution. The HR SaaS value and business benefits won’t be achieved by simply switching on the software – this is insufficient and must be augmented by making fundamental changes in at least six key areas. The honeycomb below portrays the facets of effective HR SaaS value creation, and as you can see, there is more than “simplicity” at play.
What’s different about HR SaaS?
I am often asked whether HR SaaS solutions are the same as older on-premise solutions, but “just in the cloud”. While functionality is often similar, the principles behind SaaS design, delivery and value creation are fundamentally different and will require a different approach and focus to on-premise projects. As you read the honeycomb elements (see graphic) the obvious “cloud dilemma” is the disparity between the time to implement the SaaS solution (usually four to 12 weeks) and the time required to transform the business. The latter takes much longer and requires careful and advanced planning.
Ownership: On-premise HR solutions are generally owned by the IT function because of the inherent technical complexity and association to hardware; however, HR leaders are becoming the primary SaaS buyer and must therefore take primary accountability for the solution. For many HR lea
ders this will be foreign, but the ownership change is a key driver of value creation.
Skill: HR functions must build system administration (configuration), data management, project management, analytic, social media, mobile and gamification insights in order to appreciate, manage and leverage the capabilities of modern HR SaaS systems. These are not complex skills to learn and should ultimately become standard knowledge areas for all HR staff.
Behaviour: Modern HR SaaS solutions are designed around regular interaction and collaboration with other employees. These are not transactionally dominated systems, but rather tools that remind, inform, connect, advise, analyse, predict, gather, share and enable people’s effectiveness in unique ways. Interventions will be required to activate these new behaviours.
Relations: HR must actively co-ordinate relationships between the CIO, IT function, marketing, finance, the vendor (who owns and houses the software) and external support services. These relations are both strategic and operational in nature and dependent on the new HR skills noted earlier.
Practices: Gone are the days when you apply updates to your HR system annually. SaaS solutions are automatically updated three to four times a year, meaning HR will be accountable to lead a review (with support from IT and others) of new functionality and determine if and how it will be used. SaaS solutions offer “choice”, and HR must think beyond the concepts of standardisation as a best practice.
Leadership: Executives and senior managers dictate organisational maturity. Without the right level of maturity in place, HR is often fighting an uphill battle of acceptance, which will result in SaaS tools being sidelined and unlikely to return business value.
SaaS tools are in many ways a saviour for HR. The simplicity of these new solutions is offering organisations great opportunities to rethink people engagement and value generation using modern technologies. HR must step up and embrace this with understanding and commitment.
HR SaaS: what you need to know
It’s been 3 years since the HR TECH world witnessed the SuccessFactors and Taleo acquisitions by the largest ERP vendors, SAP and Oracle – these were deals that fundamentally changed the global HR, Talent and Payroll technology landscape, including the role and relationship of the vendor and implementation partners(Si’s) with clients.
The battle for dominance among the then newly adoptive parents, SAP and Oracle, the ever-popular Workday and a host of other best-of-breed HR SaaS and cloud products centered around the lucrative 3 year annuity contract. Vendors and Si’s stripped out all but the bare necessity costs in order to live up to the reputation that SaaS was an easily justifiable ROI.
While the vendors have been focussed on maintaining their data centres, building and deploying updates and new functionality as well as executing competitive selling strategies, the SI’s have re-jigged their implementation approaches and staffing models. Certainly the last few years have been underpinned by tough business transformation for vendors and Si’s. For many service providers in this space, their attention has been split between their internal changes and the ongoing needs of their clients. This may come back to haunt the vendors and SI’s.
Keeping profitable from selling SaaS solutions is very different from that of ERP. If you needed 2 to 3 long-term ERP project to keep you business profitable then you now need 6 to 9 times more SaaS projects to achieve similar revenues and margins. That’s tough and the real issue is that the effort required to sell a SaaS deal is not commensurate to the implementation time – it still takes significant time.
2015 is a year of reckoning in many respects with quite a number of annuity deals which were struck in 2012 up for review. What will the client retention rate be for SAP, Oracle, Workday and others, and what is an acceptable benchmark? Salesforce.com is a SaaS stalwart with a retention rate of +90%, so perhaps we should expect similar scores from the HR SaaS players. I have my doubts – some of my intel would suggest some vendors are closer to an 80% CRR (country specific).
Ultimately the client will decide to stay with a product/vendor based on their experiences with the SaaS product, vendor and SI’s as well as any broader technology objectives and strategies. While ERP implentations provide lengthy on-site opportunities to develop deep and trusting relationships and easily positioning the next piece of work, the SaaS approach doesn’t. If the vendor and/or SI have been the proverbial ‘Hockey Stick’ and not actively and regularly engaging with their clients through high quality 24/7 support programs, continuous improvement initiatives, thought leadership exposure and robust future design and strategy workshops, then they are at risk of loosing clients, and deservedly so.
Time will tell.