Dion Hinchcliffe, a well-known blogger and thought leader in the Enterprise 2.0 space wrote a post recently in which he talked about the next generation of business software – social, interactive tools easily delivered over the Web – and how they can make a dramatic impact on the hierarchy and culture of businesses. These new tools, Hinchcliffe said, can tear down traditional knowledge barriers and walls within an organization by making information fluid, collaborative and accessible to everyone who wants it, leaving the power of that knowledge in the hands of everyday workers and not just managers and executives. That’s pretty powerful, and the catalyst for this dramatic transfer of power and virtual flattening of an organization, he said, lies in these simple, lightweight next-generation tools:

“Because they are highly democratic and egalitarian; anyone can deploy (Enterprise 2.0) tools, anyone can quickly learn to use and benefit from them, and they can be used to communicate and collaborate openly with anyone else inside (and often outside) the organization, are inherently viral, they literally tear down the barriers that would normally impede their forward movement and adoption inside the organization. And, anecdotally at least, this seems to be happening.”

This is a great piece of insight. In the past, there was always a barrier between every day workers and the information they worked with. To use a practical, HR-related example, take first-generation performance management tools – they were useful, but in order to get real value out of them in the form of analytics, they had to be sorted out either by hand by HR managers or run through a database by IT folks. Useful, but not efficient or at all egalitarian. Enterprise 2.0 gets rid of that gatekeeper.

As a general philosophy, SuccessFactors has always advocated transparency and the free flow of information – both are core doctrines written into our software and promoted as part of our own workplace culture. With SuccessFactors NEXT Labs, we’re trying to help promote that openness on both the technology and cultural fronts. NEXT Labs is a Trojan horse of sorts, designed to introduce Web 2.0 technologies and concepts – blogging and tagging capabilities, social networking and sharing – that render the adoption and repeated usage of an enterprise application painless for people accustomed to using such tools in their personal lives.  

Rather innately, Performance & Talent Management systems are the ultimate in-house Enterprise 2.0 tools: They help employees easily see their performance by harnessing the power of collaboration, communication and visibility, giving them the knowledge they need to make what they want out of their careers. In a way, NEXT Labs is our ”spoonful of sugar.” It  helps companies and employees eaily swallow what is all too often a bitter dose of medicince – the adoption of a new enterprise-wide software system.

Max’s note: We’re proud to present this guest post by SuccessFactors’ Director of Customer Results, Erik Berggren.  It is in response to a previous entry posted here by Dr. Jac Fitz-enz.

————————-

The idea of seeing the future is always appealing, but as Dr. Jac suggests (and as we know from our horoscopes), not all that easy. Even so, I’d argue it’s worth the effort when it comes to people. Not attempting to understand your complete talent picture – so that you can stay ahead of the curve – is, in my opinion, downright stupid. Seeing and understanding but not acting is equally bad.

In our work, we see forward looking companies starting to take the idea of predictive HCM seriously. But most organizations are waiting. Waiting for the economy to turn, or waiting to realize they are no longer attracting and retaining critical talent. Waiting to find out they can’t protect their margins or even stay competitive because they don’t have the right people in place. They haven’t yet figured out that calamity is just around the corner and are waiting to do anything meaningful about their talent situation.

Maybe it’s that they are too comfortable, or too oblivious, but a recent McKinsey Quarterly article exposes this widespread lack of strategic planning around talent:

“Executives’ concerns about executing and aligning strategy are likely exacerbated by a perceived lack of integration between the company’s strategic-planning group and its human-resources group. When asked to consider strategic planning’s integration with several major corporate functions, respondents rank HR as second-to-last in terms of degree of integration. Respondents who are dissatisfied with their company’s strategic planning see the least integration. Of these, only 14 percent say planning is completely or mostly integrated with HR, and 59 percent say the two groups are integrated slightly or not at all.”

Simple supply and demand planning with some scenario analysis is commonly made in all other areas but HCM. To me, that’s a bit silly if only for the simple reason that people are your biggest asset (or biggest expense – depending on how your look at it). It’s truly time for that to change, and I welcome Dr. Jac’s initiative and look forward to continue working with him this year.

————————-

Erik Berggren is SuccessFactors Director of Customer Results. He has worked on strategic consulting service engagements with more than 30 different companies across Europe and the US. He has held positions with Ernst & Young in Stockholm and New York and most recently worked with Capgemini in the Nordics.

There’s been so much conversation recently stemming from Bob Sutton’s book – The No Asshole Rule – that I thought I’d try to gain a better understanding of just how big an issue jerks are at work. Hence, our new poll on the right: Are jerks a big problem at your workplace?

Click an answer to register your vote, and see the poll results. And, if you want to find out if you’re a jerk, click on over to the ARSE test and find out.

Not for himself, of course, but rather for America’s corporate executives. In New York City today, Bush spoke on Wall Street about his belief that “the salaries and bonuses of CEOs should be based on their success at improving their companies and bringing value to their shareholders.”

So often, pay for performance is a concept assumed to be applicable only to the rank and file. It’s a worthy cause to elevate it to the c-level as well and it’s great that Bush is pushing the idea.

It just makes you wonder what HIS salary would be if we applied pay for performance thinking to his $400k “guideline.” Given his approval ratings, it would be an interesting exercise indeed.

If you’re still debating the merits of Software as a Service there’s an article from The Economist you should read. It’s not about SuccessFactors (though it could be) it’s about Google. Why is an article about Google relevant to SuccessFactors? Well, because they provide their offerings as a service, and so do we. Thus, many of the benefits of the approach are the same:

6 lessons about SaaS using quotes from the article:

1. “Most employees already know how to use web-based software, and thus do not need training. “ Any new application takes some time to get familiar with, but when users are used to the web, they have a tremendous head start with SaaS applications.

2. “They can access the services through any web browser, regardless of what kind of computer (or telephone) they use.” Ummm. Yes. No software to install on every PC. Works with any system anywhere in the world.

3. “And in-house IT staff need do absolutely nothing, since the data and software reside on Google’s server computers.” IT’s opinion will always count, but it’s not another system they have to install, update, secure and maintain.

(more…)

A post over at Vendorprisey (with a very clever title) got me thinking about Software as a Service (SaaS) again. So often, conversations about SaaS involve an argument about what is and what is not considered SaaS. 

To a certain extent these discussions can be helpful -helping to classify different solutions into categories that imply certain attributes and benefits. But to regular folks, the nomenclature is irrelevant – it’s the benefits that matter.

It made me consider how to uncover the benefits amidst all the technology talk. So here’s a first attempt at some simple questions any layperson can ask to make sure they get the most our of a technology solution. If you have any suggestions – shout ‘em out. 

1. Who manages the technology infrastructure?
If it’s your company, then you’ll be responsible for ensuring the system is available and speedy, functioning correctly, secure, up-to-date, scalable and integrated. If its your vendor, all that becomes their concern – and you can focus purely on results.

2. How do updates and enhancements get made and how often?
Good software is like a living thing. It should grow and get stronger and more capable over time. When your vendor updates the system or enhances it with new capabilities – every customer should get the benefits and have the option to take advantage. The second part is the frequency of updates – in general, more is better. You want your vendor to be constantly improving what they deliver to you and you want to be able to take advantage of it way more often than 1 time per year.

3. Who is making the system work the way it needs to?
This gets at the “customization vs. configurability” issue.  If the answer is a software engineer or programmer it means you are going the customization route. Software code has to be written or edited to get the system to work the right way. This is a big red flag. I’ll explain in a minute. If the answer is a domain expert (in our case, an HR practitioner) – you’re in better shape. It means your solution is being configured to suit your needs from a huge menu of available options.

Why is configured better than customized? The result may be the same – a system that supports your processes the way you want it to – but the devil, as always, is in the details. With a customized solution – you’re on your own. You’ve got a unique bit of software that’ll have its own quirks – so when it comes to supporting, updating and maintaining it – there are unique challenges every time. With a configured solution, everyone is working from the same core – even though every customer’s solution is completely different..

4. Is this about technology or business results? 
If it’s clear that the planning for your roll out is all about the technology – what servers, what installation, what integration, etc – then you’re going to end up solving a technology problem, not a business problem. Finding a partner that can help you focus on the business results of your efforts is the only way to achieve your business goals.

Kaizen is a topic near and dear to us here at SuccessFactors. You can even see it in our founding principles statement. What is it, you ask? Kaizen is most easily understood as a process of continuous improvement in everything one does. You can get the history of it at Wikipedia.What it means practically is that we’re always striving to do better. At a high level it means things like: to serve our customers better, to innovate better and to perform better – but it works its way down to even the most tactical of things (i.e. to write better). I personally like to use the phrase “Kaizen the heck out of it.”

It comes to mind because over at Lifehacker, they’ve got a great post up on how to use the concept of Kaizen in your personal life. A good Friday afternoon read.

Unlike last year, I didn’t have the privilege of attending the annual HR Technology Conference (AKA “HR Tech”) that took place this week in Chicago. In case you didn’t have the chance to go either, here is a roundup of posts from around the blogosphere:

• Here’s the link to the official site for the show
• Jim Holincheck reviews the opening keynote of the show
• Vendorprisey sums up the coverage for Workday’s coming out party
• Jason Corsello shares stories of day 1 from “dark and gloomy Chicago.”
• We announced a couple of interesting things  (one / two)

Surprisingly, not a whole lot of coverage (unless I’m a horribly bad Internet researcher) for the one of the industry’s highest profile conferences. Too bad. Perhaps when people get back from the show over the next day or two, more will appear. When I was there last year, I tried to put a bunch of stuff out there.

GigaOm highlights Yahoo’s new attempt at retaining top talent. Called Brickhouse, the project is essentially an in-house incubator meant to give it’s entrepreneurial employees another reason to stick with the company. Not altogether different from the Google 20% – wherein Googlers get to spend 20% of their time on a project of their choosing – it is both a way to satisfy the innate desire to create as well as a method for harnessing that creativity.

The blog discussion is also pretty interesting. Some people think money rules, but others see real value in letting employees explore. I wonder if such tactics are purely in the domain of the high-tech world, or if there’s applicability beyond technology. Could you see something like this at Pfizer or Ford?

Another post from a few days back on SystematicHR (I just can’t keep up with the guy) in which Dubs hopes that the future of SaaS is a world in which vendors can use abstracted data from their systems to help customers learn what’s working and what’s not for others in their business / industry. After all, across millions of users and hundreds of companies one could imagine all kinds of delicious data that, in anonymous and abstract ways, could be used to identify trends, successes and failures across all kinds of situations.

In fact, this has been the holy grail of such systems for years. Today, such data comes from surveys. But if one could get data directly from what companies are doing, as opposed to what they are saying, how much more accurate and powerful would it be? We think a lot. That’s why were already doing it. We think it’s a huge value to our customers – and one of the ways we’re helping to drive customer success.

Erik took a moment to reply to Dubs’ post. Here’s part of what he said: “We are looking at aggregate data from that enormous resource of ours. To look at what works and not we use publicly available financial information and cross reference those two. The findings we make are very interesting and are being used to further push our thinking of leading practice in different areas.”

You can read more about SuccessFactors research here. And if you have questions for Erik, just email him.