Feedback
Thanks to all those who supported my suggestion to eliminate the terms "Human Capital" and "Knowledge Management" from the HR vocabulary. With the exception of one e-mail, an overwhelming 90 respondents agreed that the industry needed to use more specific terminology in the marketing of their products. It was pointed out that I forgot to mention "Employee Relationship Management" (ERM), a term that Bill Kudik from LRP (HR Executive) would also like to see banished.
Integration
Picking partners to add functionality to your product line, or choosing the right reseller, is essential in today''s market. We often underestimate the time and cost of integration. When budgeting for integration, know that it can often cost three to ten times the amount of the actual software purchase.
Some points to consider when picking a partner include:
- Actual platform synergies for integration. Everyone is talking XML, but very few players actually support it properly and use it for integration.
- Who owns the data (client?)? This becomes especially important when planning for your "divorce."
- Financial security and stability. The demise of any of your partners is also a reflection on your stability to your clients. Check financials and put software in escrow.
- Areas of responsibility. Assign project managers or appoint persons for each team (the integrator/integrate) and ensure that they are accountable for deadlines and deliverables.
Most relationships fail for the following reasons:
- The financial terms are not high enough to motivate sales people to sell add-on products;
- The resellers are not properly trained on the product;
- A lack of commitment for co-operative advertising. The integration of the product is essential, but if you don''t tell anyone about it; and
- Availability of technical experience in integration of products
This ´n That
Here´s a wrap-up of some major HR activity that´s taken place over the last two weeks.
Monster.com (TMPW) http://finance.yahoo.com/q?s=tmpw&d=v1, is at it again with its purchase of Hotjobs. The company will continue to operate under its own brand and Fastweb, a campus scholarship portal. Rumor has it that Monster.com will be making another large purchase in the next 14 days.
Ecruiter (ECRU) http://finance.yahoo.com/q?s=ecru&d=c, has acquired the technology of Florida-based ResumeXPRESS and RezLogic''s recruiting process automation solutions. Rezlogic also placed a solid second behind Recruitsoft in the ERE Applicant Tracking Systems, ahead of BrassRing and Peopleclick. Ecruiter stock has also increased from a low of .81 cents to $3.80, a significant improvement in this economy and well ahead of their competitors. Ecruiter has a number of other significant acquisitions that will be announced in the next few months.
Manpower (MAN) http://finance.yahoo.com/q?s=MAN, completed their purchase of Jefferson Wells International, a professional services firm that is widely recognized as a high-value alternative to national public accounting firms and financial staffing.
Congratulations to Dr. Jac Fitz Enz for winning the book of the year award at SHRM.
His book, Human Value Management, outlines how to radically redesign your HR organization, transforming it into a strategic value-adding force. It´s still the number 1 guide for HR professionals seeking to boost department productivity -- and the corporate bottom line.
Kudos to SHRM, that just last week received high accolades for being the best industry trade show, for failing to send out e-mail addresses with their conference list, or to collect this information on show scanners. This is, after all, the 21st century where e-mail is the norm.
A word of caution on upper level management turnover. In recent weeks, we have heard and received various notifications of senior level management changes at some of the large players in our space. Changes at a high level can be very disturbing to the remaining staff as often the new entourage immediately sets out to change the business model and the people who founded and built the business. Many of these firms and their investors did not budget for this short-term blip in the economy and it has affected their ability to reach or maintain profitability. In many cases, this is not a reflection of the current management team. It is very hard to replace the passion for the industry with an outsider and, in some cases, passion is what is required to ensure the survival of a business during these turbulent times.
What was John Sumser thinking? Sumser was quoted predicting the demise of Peopleclick in a recent article. Peopleclick happens to be one of the larger workflow vendors that have reached profitability. Typically companies do not open five additional customer centers nationwide unless they are financially secure. Backed by large VCs such as Morgan Stanley, Lovett Miller, North Carolina Enterprise Fund, and Primus Venture Partners, we are confident that if additional funding were required to support growth, it would be available. Could it be that Sumser is on the board of BrassRing and Hire.com ? We are interested in your opinion. Write me and let me know who you think our next industry casualty could be? All entities will be kept confidential.
Members Marketplace
If anyone has a product that they would like to place in our Members Marketplace and offer a special member´s only discount, we would be happy to talk to you about how we can co-operatively market this program for you.
Peoplesoft
Finally, a traditional bricks player who actually gets this space. Last week, I had the pleasure of spending a morning at the Pleasanton campus of Peoplesoft with Don Chun, Director HRMS Product Strategy. He graciously took the time to explain some of the projects Peoplesoft is working on. Don spoke about the company integrating best of breed third-party suppliers RecruitUSA, Mohomine, Authoria; building products, like their new version applicant tracking product (releasing Q3); and acquiring companies, such as Skills Village.
Peoplesoft is an interesting technology company on several fronts. They have a platform, as well as people who can integrate software seamlessly. They also understand what CRM (Client Relationship Management) is all about. As a well-funded company, Peoplesoft has a mass distribution channel via resellers and a direct sales force.
These accomplishments bode well for Peoplesoft´s future. As the labor pool shrinks due to shifting demographics, the ability to manage a pool of candidates will be essential. Natural integration of a CRM tool into the technology platform will be essential. This is the first time I´ve heard a vendor talk about this integration in future product releases of their HRMS. I believe it will be the next generation of recruiting tools whereby recruiters will be "commissioned and paid for performance" on building and closing opportunities (hires) in their funnel.
I look forward to seeing this new generation of software, and will be attending the Users Conference in August 2001 to gain more insight into Peoplesoft HRMS
A tribute to Katharine Graham, Washington Post 1917-2001
For all business owners, especially women, Katharine Graham set an outstanding example of how to run and grow a business. She believed in her people and empowered them to do the best job possible. The most famous example is when she stood behind her writers and went against the Whitehouse and President Nixon to expose Watergate. As a female entrepreneur, she has always been a role model and her book, Personal History by Katharine Graham is a must read.
"She was gutsy, so many said, yet never trumpeted the fact. Her wealth and influence were great, but wielded with grace. She changed the course of the nation, her city and journalism, and in so doing knocked down walls for women. Few lives blend so many traits so seamlessly." -- Steve Twomey, WashingtonPost.
Any comments or feedback is appreciated - Debbie McGrath
