Talent

Is WFM becoming the new HR?

For many years HR practitioners have been fighting among themselves and with their executive management about the value and importance of HR, Talent management and HR technology. It’s often been an ugly and public battle of personal believes and experience rather than factual and evidence based findings. What’s more, HR people have very strong opinions about being the people behavioural experts and find it very displeasing when they are challenged in this area of how to best manage people in an organization.

Coupled with this is the lack of a clear relationship between HR and company profits and value. Certainly most of the operations people I have met, don’t fully understand the value link that HR purports to have, and often are following processes which HR drives (e.g. Performance management, Goal setting and Career planning) from a compliance perspective rather than a clear business value perspective. While I have no doubt that professional HR has got lots of value to offer, in the most, these departments are too keen to adopt the ‘next flavour of the month’, implement someone else’s ‘best practice’ and expect line managers to love their technology solutions that mostly make the HR’s departments life easier, but are often seen as extra work for the operations and line managers.

It’s a sad state of affairs, but it’s not all doom and gloom…..someone has been listening and doing something about it.

Unfortunately it’s not the general HR fraternity, but rather Operations managers and WFM vendors. After years of experiencing the effects of HR’s ongoing battle with itself, Ops managers have decided to ‘just get on with it’ and are enhancing and using WFM people solutions that are linked directly to the P&L account, have the ability to show exactly where money is being spent, can use real-time data to enhance business decisions and in the process, engage with their employees and optimize productivity – just what the executives ordered!. And as business leaders continue to drive out unnecessary cost and increase productivity, the business cases behind these new WFM tools is simple. Quite often they can easily save an organisation a minimum of 1-2% on annual employee costs and can generate a return on investment (ROI) in months.

All this is quietly happening while HR continues to argue among themselves and promise their organisations that {insert your favourite HR fad here} will change the world.

In some cases HR has ownership of WFM tools, but mostly they are not the primary owners, but rather have a secondary role ensuring the accuracy of data flows between HR, Payroll and the WFM solutions. Many in HR may be thinking the core of a WFM solution is nothing different from the Time management functionality in their HR system which provides scheduling and rostering capability. While there are many similarities between HR and WFM solutions, over the last 5 years the complexity around awards and labour agreement interpretation, as well as the need to plan and optimize people, assets, geo-location, customer needs and competitive business strategies, has seen the explosion of specialist functionality in WFM tools that would not easily be replicated in HR solutions, especially newer SaaS based HR software.

And while HR is demanding to be the source of truth for all things people, but never quite getting the alignment with day-to-day business practices right, WFM vendors saw the gap to add functionality into their software that has traditionally been the domain of HR and Talent systems. It’s now pretty common to see WFM software solutions with Employee self-service (ESS) capability, Mobility, Leave & absence management, Competency & skills management, Employee costing & budgeting management, Planned versus actual task management (goal setting) and even Engagement capability which support team or individual recognition (often using gamification), shift swapping based on personal needs and survey capability to highlight how staff are feeling about their assigned rosters and work assignments.

What WFM solutions are achieving in the people management space is nothing short of amazing – HR is envious! The reason it’s so successful is the seamless integration with operations management activities. And it doesn’t stop there. Modern WFM tools are branching out and building links and capability to Planned-maintenance, Sales & forecasting, Contingent labour management and Financial management solutions.

In many respects WFM is winning the people effectiveness battle at the operations level. Some WFM vendors are not stopping their advancement into HR’s space either with a number of HR and Payroll acquisitions by WFM vendors taking place recently. Perhaps it is WFM that will become the new HR, at least at the operating and tactical level, leaving the strategic people activities to the current HR functions. Watch this space.

Thanks to Shane Granger @gmggranger for promting the idea over the week-end

The rise of the SMATE

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Photo Credit – amanda.murphy4 – Flickr

There are times in our recent history where particular events have epitomized the turning-point in global views, perceptions and behaviors ~ like the fall of the Berlin Wall and the end of the “Cold War”, the release of Nelson Mandela and the end of Apartheid, 9-11 and the rise of terrorism, 2008 and the Global Financial Crisis. These events cause “global ripples” and while many people are impacted directly, there are many more people that feel the change in indirect ways. For HR, a turning-point has been Cloud & SaaS solutions, taking center stage in late 2012 – the direct impact is on HR departments from an empowerment perspective, but the real value impact is achieving organisational goals through people.

HR Cloud and SaaS solutions are fundamentally shifting and empowering the HR environment, putting HR in a renewed position to influence organisational objectives and create value through people. But these new solutions are vastly different from the typical ERP products that dominated for decades, and the individuals who became the “life-savers” or “Stars” for those projects were just that because of their experience and insight into managing complex technology tools. They were the technical experts who dominated workshops and discussions to figure out how to set up the HR solution technically.

The latest cloud and SaaS solutions require significantly less technical prowess, and with this we see the client conversation shifting from “how to best configure the software ?” to a more HR flavored discussion of “how do I create value through people ?”. This shift in discussion from technical to people may be easily overlooked, but is more fundamental and deserves greater consideration than perhaps one may think.

HR leaders are starting to take genuine ownership of cloud HR system projects because they are now able to have discussions which are not being dominated by the technology questions (which were all very important by the way) nor left feeling inadequate to contribute in workshops that were driven by the “Technology Stars” using a language and approach which was foreign to them. In HR Cloud and SaaS projects, HR owners will rightly have a different expectation of the project language, approach and outcomes. Cloud and SaaS has lifted the technology complexity for HR and this will spur them on to want to discuss the HR “How” rather than the Technology “How” – the big question is who is best positioned to lead this new discussion with HR….enter the SMATE.

This new discussion with clients and team members will require someone quite unique – an HR SMATE, or an HR Subject Matter & Technology Expert. Many current HR system consultants may be inclined to assume they are a SMATE by virtue of their closeness to HR technology, but the reality is that a true SMATE is a bit like hens teeth – pretty rare at the moment! While many technology educated people have worked in HR systems for years, their point of reference for HR and best practice is mostly framed by the HR technology they know so well – their discussions with an HR professional has been fairly process and system oriented, and most HR professionals will quickly pick up the lack of depth in HR expertise. Likewise many HR people have a mindset about technology that doesn’t go far beyond the UI (user interface) and get lost in discussions on architecture, object management, databases and interfacing. This is frustrating for technology people who understand the critical nature of these discussions to the solution outcome.

HR ERP implementations primarily needed to lead with a technology mind-set ~ the individuals could learn HR/Talent processes to support discussions. It hasn’t however been easy to motivate an HR trained person to learn technology at a level that would enable adequate discussion across coding, configuration and architecture. But cloud and SaaS HR solutions changed that with technical requirements becoming more system set-up (We however still need hardcore techies for integration and custom developments). In a very short period of time HR professionals can learn the ins-and-outs of a cloud tool set-up and confidently introduce these requirements into an HR discussion, The tide has turned and it is easier for an HR professional to become a true SMATE than for a technology oriented person to do so.

We need true SMATE’s to rise up and become the catalyst for new system discussions with HR executives and project owners. To become the driver behind HR/Talent systems delivering value beyond transactional activity. SMATE’s will engage in deep-dive conversations around people behavior and social science thinking in the same way technology people drove technical discussions during ERP projects. Where this happens, we will see greater HR successes.

The organizations and consulting firms that nurture HR SMATE’s will be putting themselves in a strong position to create true HR value and help HR functions become a significant contributor to their organisational goal achievement  – the true HR SMATE is the next HR system “star”

Dear HR Vendors, are you thinking about Personal Data Stores?

keysWe have all seen the headlines regarding the amount of new data we create every year – it’s in excess of Two Quadrillion Megabytes (that’s 2 with 21 trailing zero’s) – by any standards that is a huge number and it continues to grow, spurred on by growing continuous connectivity to the internet, mobile access and tonnes of free storage space . In this process of creating data, we are also breading a new culture of data ownership – one of personal empowerment, which is giving rise to the Personal Data Store (PDS).
When you think about it, organizations have gathered, stored and managed personal data to serve their own benefits, and allowed employees and managers to access the data on a “right-to-see” basis  – they have had to carry the cost of creating and managing this data too, typically through ERP and cloud based HR/Talent systems. Much of the data organizations want from the workforce is now being created and managed by employees in cloud based tools and applications.
Over the next few years these Personal Data Stores will mature and help individuals to gather, store, access, update, use and share their data in a sophisticated and powerful way. In particular these tools will allow individuals to choose what information they wish to share, with who and for what purpose the data can be used, including the creation and sharing of new data based on the initially shared data. Personal Data Stores won’t just contain employee related data, but will help individuals manage vast amounts of data relevant to different business and personal relationships they create. These could include Health records, Scholastic and Education records, Business transactions, Employee transactions, Identity data, Life events, Government records to name a few.
While this may not initially trigger off too many alarm bells, the more you think about it, the more you’ll realize the implications on your relationships with employees created by the shift in power of data ownership from the organization to the employee. The Personal Data Store will become a new epi-center for business opportunity. Personal Data Stores are destined to become the “electricity supplier” of the 21st Century.
What will this mean for future HR systems as data ownership and management become person-centric ? Here are some of my thoughts:
  • HR systems will need to cater for an individual type API – the ability to interface with multiple cloud based Personal Data Stores or to buy into a PDSaaS (Personal-Data-Store as-a-Service) platform;
  • HR systems will need to export new and updated data back to the individual Personal Data Store;
  • Organizations will need to accept an employees “Terms & Conditions” to use shared data;
  • The ability to pay the employee for use of some data or pay for data used to generate business value or continued use of historic data after the employee has left the employ will become necessary;
  • HR systems or other systems will need to accept disparate data elements that could assist the organization eg. a list of Face book contacts that have access to possible job candidates;
  • Sophisticated OCR, facial,voice and other recognition tools to “read” non-text based shared material;
  • The Personal Data Store will in effect become an ESS tool – updating the PDS will update the HR system; and
  • HR systems will need to accept new types of verification that is attached to the shared data eg. a qualification may come with an integrated verification flag provided by the learning institution.
While I’m sure this is a but “far-out” for many readers, there are  some obvious advantages that this new data ownership model could have:
  • The quality and accuracy of HR data is improved;
  • The richness and completeness of employee HR data can be improved;
  • Reduced cost and effort for HR functions to maintain HR systems;
  • Improved reporting and opportunity to leverage new information for the company benefit;
  • Reduced duplication of data;
  • Richer and easier on boarding for employees and contractors; and
  • Lower data privacy risks
We have a way to go before this becomes main-stream, but it is already starting with some social tools such as LinkedIn. Personal Data Stores are more sophisticated than the current social tools, but if our history of the Internet and technology growth is anything to go by it won’t be too long before this becomes a reality. Lets hope the HR Vendors are leading the charge.

The HR Talent Software Bubble

The Year of Change – 2013

bubbleIf 2013 was anything to go by then we are in for another interesting HR software year in 2014. Last year was very much one of excitement and perceived opportunity around SaaS, cloud, mobile and the resurgence of the talent management offerings (Recruitment, On-boarding, Performance Management, Compensation Management, Workforce planning, Career Planning and  Succession Planning)  – the latter being of significant importance from a revenue perspective for vendors. Prior to 2012 most of the large vendors made most of their money from selling core HR and payroll solutions, but were forced to change selling tactics to support the major and expensive acquisitions or new talent focused developments that occurred during 2012. While SAP, Oracle and Workday were popular news items, many other vendors were investing heavily to move their product to SaaS models and support end users with smart phone and tablet access and tools.

HR Technology is a Mirror 

Vendors spent 2013 pushing licence sales at all cost (heavy discounting, license swap deals and low ball implementation fees) for their cloud Talent products, some touting evidence that organizations would have fairly immediate and positive bottom line impacts, with some vendors going so far as to give % improvement probabilities in ROI and growth in stock values depending on how many modules were bought and implemented.

I wonder how many organizations have reaped the benefits they were sold?  – or were they suckered into believing that a software implementation would improve HR services? While I would love to be proven wrong on this, I suspect the improvements are mostly superfluous and if you scratch beneath the surface you will find feats in process compliance from the new software, but not in long terms business and people sustainability. Too many decision makers still misunderstand the importance of having effective HR services, delivery and environments in place prior to investing in new HR technology – HR technology will simply reflect your good or bad HR environment.

The HR Talent Software Bubble

All the vendors realized that tying a client into a 3-year (or more) annuity license agreement was paramount to their survival – so they all went to battle for the limited resource (clients $) and made offers that were hard to refuse – they drove sales through $$ incentive rather than future value. Cloud solutions fundamentally changed the face and structure of HR system implementations. In particular, the time to implement new HR technology is typically significantly reduced with SaaS products and while this is good for many reasons, it’s also one of the reasons for increased risk around achieving people and business sustainability.

I should probably not paint every sale or organisation with the same brush, but what I can say is that there will be far more companies not achieving the proclaimed benefits in 2014 than there are that do – as time progresses these clients will look for something to blame and there is a good change the software will be in the firing line. 2014-2016 is a period of heightened client relationship risk and poses all sorts of challenges for vendors and implementation partners. For most clients I suspect it will be their own period of disillusionment when they realize the software has not been their saving grace. When this bubble bursts, it will be messy and destructive to HR technology vendors, partners and the HR profession.

Light at the end of the Tunnel

There is hope though (there always is), as well as time to fix this. It will come in the form of improved skills, understanding and appreciation in HR & business sustainability from the Vendors and Implementation partners. This must include greater advisory capability in helping to create the right HR environment for the technology to be fully leveraged. The one advantage of true cloud and SaaS solutions is the lower dependency on technology understanding to implement the solutions. The more we can replace the technical implementer with a combo HR professional/tech appreciator who understands what makes HR successful, the more we can mitigate the future blame risk that is bubbling under. HR Vendors and partners need to think long-term and be prepared to invest in HR environmental support, not just technical support, they need to drop the profit motive as the sole approach to measuring  success and be bold enough to include societal value into their success equation. I suspect we will see a host of new partnerships and acquisitions between traditional IT consultancies and specialist HR consultants (ones with deep HR and business understanding).

As a final note on this topic, I had two experiences in 2013 where the vendor led the pitch/ implementation of their cloud HR Talent tool with a Change (Project) Manager (Social Sciences type) rather than a traditional cost/time project manager- These vendors realized the importance of changing the HR environment and the people in order to fully leverage their new HR technology journeys – its paying dividends for those clients and these vendors will reap the long term benefits too.