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Consultant's Corner : April 2008

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Posted by Neil Jensen Apr 25, 2008

I spent the last several days working with a client to select a Talent Acquisition solution that will enable and fuel their pipeline of external talent. The two days of evaluation covering multiple vendors was a tough slog filled with equal amounts of delight and disappointment. As in any vendor evaluation, the client was able to get a first hand look at each vendor's ability to fulfill their business outcomes and determine what gaps may exist between stated requirements and product capability.

 

At the end of the two days, the team of evaluators launched into a spontaneous review of career websites across multiple industries. Taking advantage of the projection system, we looked on screen and walked though the candidate experience as they made their way through the career website, reviewed job openings and finally applied online. Needless to say, the exercise was eye opening.

 

Short of a few bright spots, the sites that were viewed offered an overall candidate experience that was down right awful. You could tell that little attention was paid to the candidate during the implementation. Instead of being top of mind and the primary driver, the candidate experience was an afterthought that resulted in confusing steps, circular navigation, and no compelling reason to continue with the process.

 

 

Given the talent crisis that has been much publicized, corporations must take the necessary steps to ensure the process to apply for a job online is simple and easy. As the war for talent heats up, candidates will have little patience with sites that are confusing and don't follow an intuitive path. They'll also make decisions about that prospective employer simply based on the experience they have on the careers site. Those companies that pay close attention to the candidate experience and make it simple and easy to apply online will produce a significant advantage in attracting and hiring top quality talent.

 

 

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Software as a Service (SaaS) is a distribution model in which applications are hosted by a vendor and made available to customers over a network. Both hardware and software are owned by the provider and maintained at its datacenter. In a true SaaS model, both are also shared by all clients, although user data is divided. In addition, all customers are on the same version and instance of the application. The software is typically leased, although it is sometimes licensed as if it was being bought.

 

 

Over the past few years, a critical mass of adopters, better usability, enhancements to GUIs have all driven organizations both large and small to adopt the SaaS model. Coincidentally, a number of large, well-established enterprise application giants have built up substantial SaaS businesses in recent years to compete with younger upstarts.

 

 

The four greatest value propositions driving SaaS adoption amongst HR technology buyers are:

 

  1. Faster time-to-value through configurable applications.

  2. Mitigated risk through minimal upfront costs and pay-as-you-go procurement.

  3. Less reliance on support from internal IT departments that are too busy to help.

  4. Economies of scale like any outsourcing model.

 

However, in order to realize these, you must first contractually agree with your SaaS providers on the particulars of how these opportunities will be realized. I have learned from working with many clients that there are things to watch out for when engaging a SaaS provider. Moreover, many have told me that they include written stipulations in their contracts to protect their interests such as:

 

  1. Application Support. Most companies get service level agreements (SLAs) on support related to the application running properly as well its availability, including response times, and notifications of outages and how soon after a failure you must be notified.

  2. Agreement on what an active user is. This is not unlike contracts related to behind-the-firewall implementations. However, reports should be generated more efficiently given that this is how the SaaS provider runs its business.

  3. Security. Typically these requirements (e.g., intrusion tests, SAS 70 Type 2 Certificate) are covered pre-contract during the evaluation period.

  4. Data back-up and recovery. Similar to security bullet above.

  5. Data ownership. Ensure that your provider will enable you to easily migrate your data should you decide to move to a competitor or bring the solution in-question in-house. SLAs related to data migration in such events are not uncommon.

  6. Ownership of source code. This may be covered through an escrow account. Even financially sound companies get shut down from time-to-time. And you never know when someone is going to win a patent infringement suit against your SaaS provider.

  7. Integration non-SaaS systems. Requirements related to frequency, data mapping, and file format are the biggest gotchas.

  8. Growth. Include and define provisions (i.e., milestones) for growth that will allow you to lower your average cost-per-user.

  9. Training and Certification of Support Staff. While ‘major release' is not a term often uttered by a SaaS provider, some are more significant than others. We have seen clients require that all support personnel assigned to them be trained and certified on the latest version.

 

I have learned about these points through lessons learned by clients and service providers. However, I know this list isn't exhaustive. I'm curious as to what pearls of wisdom my KI colleagues can share based on their experience. And I'm even more curious to hear from those of you who have been involved in a constructing or negotiating SaaS contract. KI does not provide consulting related to either of these areas.

 

 

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We run into this question many times when working with Enterprise clients on TM strategies. When asking process related questions during discovery interviews, inevitably the answers come with varying levels of understanding, confidence, and clarity on the state of talent management processes utilized within the organization. To remedy this issue, Knowledge Infusion recommends a three step method to define and transform talent management processes in the organization.

 

Business Process Transformation is the first step and takes a high level look at your talent management processes and offers the opportunity to rethink, blend, and challenge the way you are doing things today. It is a systematic way of putting down on paper the high-level tasks that a process must accomplish and blending together steps to ensure they meet defined business outcomes. A cross-functional team is typically assembled to do this work to ensure that the traditional HR functional silo mentality of process ownership doesn't influence end-to-end transformation. This work inevitably feeds the software/vendor selection process.

 

Business Process Design is the next step in the chain. This is usually performed after the software has been selected and the organization has knowledge of what the software can actually do. During this step, processes are refined to a more granular level of detail adding in the enabling technology that will support and drive the process in the organization. Roles and responsibilities, workflow, and other factors are also defined during this step.

 

Business Process Calibration is the final step in the chain and is performed during the software implementation process. During this step, processes that were refined in the design phase are calibrated to the exact capability of the software. There is usually some element of give and take to ensure the software can accommodate the process. As a result of calibration activities, the transformed TM processes are clearly defined, enabled by technology, and ready for roll out to the organization.

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How "Mature" Are Your Organization's Talent Management Processes?

 

Many organizations we engage with view Talent Management like it's some kind of exotic new discipline. The reality is that the functions usually associated with Talent Management (Recruitment, Performance Management, Learning and Development, Career Planning, Workforce Planning, Succession Management, Compensation) have been around for a long time. New technologies are allowing organizations to tie all these processes together and get true visibility into the business impacts of these functions.

 

We can usually tell how "grown up" our client's are by asking some key questions around the following areas for each of their Talent Management processes:

  • What are the business drivers of the process? We're often met with a blank stare here.

  • How frequently do you perform the process? Once per year or is it a constant, ongoing process?

  • How standardized is the process across your organization?

  • What kind of visibility does the process provide into key measures and organizational trends?

  • Who owns the process? HR or the business - or both?

  • What technologies support the process? Technology is an enabler of increased standardization, visibility, and process integration

  • How integrated is the process with other talent management processes?

  • What metrics do you use to measure the effectiveness and business impacts of your process? Often, another blank stare here.

 

Obviously, in depth analysis is required to determine how to improve your organization's processes. But by asking key questions you can learn quite a bit about where your organization is now, and where you want it to be in 1, 3, 5 or 10 years.

 

So what is your organization? Toddler? Kindergartener? Adolescent? Adult?

 

 

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Over the last several weeks, I've been in a number of client meetings where the focus was Talent Management, and more specifically, what to do and how to move forward. As is a pitfall with many large initiatives, the group debating the topic grew almost paralyzed by the ever expanding scope and the almost limitless possibilities being discussed. The longer the conversation went on, the more the group felt powerless to slay the 8 ton dragon they had created. By the end, an intervention was necessary to get them back to reality and begin ACTING on the topic versus just talking about it.

 

Talent Management is a concept that, if taken in it's entirety, can be overwhelming. It's necessary to not "boil the ocean" when taking on TM. To be successful, you must break Talent Management into its component parts and begin to show steady progress against the initiative. When we at Knowledge Infusion work with enterprise clients to develop their Talent Management StrategyMap, we take the focus of building business capability over time. As part of this process, we develop action plans that break the overall initiative out over a three year period. We try to sequence the actions to begin building capability while also making the entire process manageable, affordable, and realistic. Year one often times is focused on building the foundation by which talent managment can grow. Year two is then focused on building and expanding capability. Finally, year three is focused on true transformation and driving better decision making through integrated processes and better, more robust data.

 

 

When you find yourself in the situation described above, don't boil the ocean. Remember that Talent Management can't be solved overnight and that it takes commitment and focus to get it done right.

 

 

 

 

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