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From the Vendor Files Created by

Debbie McGrath

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It really is all about egos and money. Although many Peoplesoft employees may be feeling down with the announcement that Oracle has succeeded in their purchase of Peoplesoft, the reality is that the employees were not even considered by the shareholders. It was all about money and Larry Ellison´s ego. He should be congratulated for his tenacity. Oracle has a major task ahead of them. Even the nicest and most competent people like Glenn Tillman and DJ Chhabra have a hell of a task ahead of integrating the 3 JD Edwards platforms as well as the Peoplesoft platform. In effect, Oracle now owns multiple code bases for payroll, talent acquisition systems, LMS, performance management systems, benefits administration, etc. - not to mention CRM and manufacturing ... Long term, Oracle cannot afford to maintain all these code bases, and will need to integrate these into a single system. What does this mean for the 3,000 HR clients that Peoplesoft has? SIGNIFICANT CHANGE! If you are one of these clients, do not sit back and wait for these changes to happen. They will take years, and the HR Technology world has not finished changing yet. So sharpen your pencils, refine your budgets and take action NOW!

So, just who are the winners and losers in this merger?

Winners:

1) SAP - As the other major player in the ERP market, look for them to capitalize on the market confusion and offer a stable safe play for those who are risk adverse.

2) Oracle HRMS Clients: Look for additional functionality and product offers with quick fixes for integration to hit your product line shortly.

3) Best of Breed solution providers. Many clients have been sitting on hold pending the next Peoplesoft release. According to the Oracle site, "For the (old JD Edwards clients ) <?xml:namespace prefix = st1 ?>
<st1:City><st1:place>Enterprise</st1:place></st1:City> and EnterpriseOne product lines, the combined company expects to develop and release a version 9 and version 6, respectively. The timing and composition of the releases has not been determined ..." So, with this no longer a good long term solution, reopen the evaluation process and look to what best aligns to your corporate strategy short and long term.

4) Mid Market HRIS players like Ceridian, ADP, Kronos, and Ultimate. Although Peoplesoft has several hundred clients in this market demographic, this does represent the largest growth area for new client acquisition for INTEGRATED HRIS systems.

5) The HRO Vendors. For many that are frustrated with the continual upgrades of ERP players, the wait and see and the lack of product availability - maybe it is time to put all these headaches onto someone else´s plate, which specialize in HR Technology. Hewitt (with the old Cyborg technology and Exult acquisition) are a strong contender, as are ACS, EDS, IBM, Fidelity, Convergys, and Accenture for the large market and Ceridian, ADP, Employease, and Trinet for the mid market.

Losers:

1) Peoplesoft employees without tenure. Expect major staff cuts shortly. They are required as Oracle now has duplicate functionality in many areas. Those without tenure will only get notice and it will be hard to find employment in UnPleasanton. Peoplesoft was an awesome employer and paid above market rates. The <st1:place>Silicon Valley</st1:place> job market is still not strong so re-employment in the local market will be hard short term. Some of the smarter ones like Mark Lange (SAP) and Ms. Linda Lazor (VP Marketing at Plateau) started their searches months ago and have successfully landed. Many of those with tenure will also lose; they will just be compensated better!

2) Real estate owners in <st1:City><st1:place>Pleasanton</st1:place></st1:City> and surrounding area. <st1:City><st1:place>Pleasanton</st1:place></st1:City> was a Peoplesoft town. They supported the local community; people lived locally, shopped locally and spent locally.

3) The talented Oracle people like Glenn Tillman and DJ Chhabra can be guaranteed to be the principle cheerleaders involved with the marketing and product strategy and integration - as if they did not already have enough on their plate.

4) The lawyers. Their feeding frenzy has stopped. The cost of defending these lawsuits was staggering.

5) The print publications, trade shows, Internet sites, and analyst firms; as two major players´ budgets probably got slashed to 1 ½ of the major player budgets.

Market <st1:place>Opportunity</st1:place>: There is a strong market opportunity for any one company that can align best of breed point solutions to compete against SAP, Oracle, ADP and Ceridian. Kronos is working on this for the mid market space. Ceridian is achieving best of breed excellence with partners such as the new announcement with Enwisen, in which Unisource, BioRad and DHL are some of the premier joint customers. This enables content for full ESS and MSS into the client base, yet both of these players still account for a very small install base in the worldwide footprint. We know the major outsourcers are sharpening their pencils in merger/acquisition mode and frankly are surprised that some of the boutique consulting firms have yet to be taken out. Expect this to happen in 2005. We have already heard rumors of some of the strategic HR Players (LMS and TMS) looking to expand their footprint to include the transactional part of HR. Frankly there will be a lot of mergers and acquisitions in this space in the next 12- 24 months and the only constant will be change.

Let us just declare that in every 10-year cycle we have a recession that lasts between two and three years. We believe HR has officially been out of the recession for the last 12 months and we are now on a rapid growth cycle for the next seven years. This is apparent with the amount of VC money sitting on the sidelines and the deal flow increasing - look at eBay´s purchase of rent.com at 10X sales and Peoplesoft at 5X revenue. 

One of the best overviews of HR technology comes from the annual research report produced by Alexia Martin of the Cedar Group. This workforce Technology Survey is available free of charge from <a href="http://www.thecedargroup.com/SurveysWhitePapers/"></a><a href="http://www.thecedargroup.com/SurveysWhitePapers/With">http://www.thecedargroup.com/SurveysWhitePapers/</a> 
 
With 22 key findings, it also indicates that inadequate budget and funding, as well as lack of resources, are the two dominant barriers to successful Workforce Technology Deployment. 

<img src="/HRArticle/A9E5CFAF-1F72-43E7-BABE-23DCA0411D3C/d21%20vendor%20fl%20image%201.jpg" border="0"> 
 
What does Integration really mean? Sometimes the simplest of integration has a huge payback and offers an important lesson in questions to ask. For example, we would all have asked, "Does your ATS integrate to the major job boards?" and we would have got a "yes" answer. But when you drill down you find that most integration simply means not duplication of data (which is a good step) but bi-directional integration. Webhire has taken this integration one step further, as announced in their recent press release <a href="http://www.webhire.com/NewsEvents/news_041215a.htm">http://www.webhire.com/NewsEvents/news_041215a.htm</a>. We have always been impressed with Webhire´s ability to release new software updates faster than most others in this industry. The Webhire/Monster relationship includes not only product integration, but also joint training, lead generation and co-sales and -marketing efforts. The integrated product solution will provide joint Webhire-Monster customers with the following:

Capabilities:

<ul type="disc">
<li>Integrated Resume Search / January 2004</li>

<li>Integrated Job Posting / April 2005</li>

<li>Integrated Online Apply / April 2005</li>
</ul>

Monster continues to build out its reach inking a deal with 180 infinity radio stations. Radio is a very expensive but viable alternative for recruitment advertising and once again a great way to build monster brand.

A few months ago eBay subliminally entered the recruitment space with their minority purchase of craigslist. Friday they bought rent.com. Already this year they have spent over $1.28 Billion in classified advertising. Will they be the next dominant job board?

Accenture seems to be leading the pack in <st1:place>Europe</st1:place>, securing another large HRO deal with Sandvik. The 10-year outsourcing contract is part of a wider initiative within Sandvik to better align its human resources with its business needs.

 

In the summer of 2003 I published, "Women of Substance," about the females who are most influential in the HR space. The following is the list with the survivors, as well as an update on where these people have gone. Also included is my new list. 

The 2003 List:

1. Barbara Beck, Executive <st1:place><st1:City>Vice President</st1:City>, <st1:country-region>U.S.</st1:country-region></st1:place> and Canadian Operations of Manpower. She was recently listed on Human Resource Outsourcing Today magazine's, "100 Superstars of Human Resource Outsourcing," and is listed here for masterminding Manpower's strategic push to become the outsourcing leader among staffing firms.

2. Deb Besemer, CEO of BrassRing. BrassRing is one of the largest vendors in the talent management space. Deb is a visionary who has helped develop this industry into a viable market.

3. Karen Bowman, President of Convergys Employee Care. Convergys is a 55,000 employee, Fortune 1000 company in the red-hot outsourcing market. Karen is responsible for the fastest-growing portion of their business - HR-Outsourcing.

4. Sherry Cadorette, President, <st1:place>North America</st1:place>, of DBM. She is responsible for the sales and delivery of outplacement services and service innovations in <st1:place>North America</st1:place>. NO LONGER AT DBM

5. Cinda Hallman, CEO of Spherion. Currently on what we hope is a short-term medical leave, Cinda has taken this staffing giant back to its core competencies and invested significantly in backend automation. ($45 Million with PeopleSoft alone ... we hope her short-term illness had nothing to do with receiving this bill!) Retired with Health Issues 

6. Frances Hesselbein, Founding President and CEO of Leader to Leader Institute. Her strong belief that leadership is a matter of character makes her one of the most sought out, innovative and inspired leaders of today.

7. Jenni Lehman, Vice President, HCM Global Strategy of PeopleSoft. Responsible for the HCM Strategy within PeopleSoft/JD Edwards and maybe Oracle? Previously the lead HR Analyst with Gartner, Jenni's hard work and her commitment to the client, coupled with her solid background in HR, makes her role critical to the roll out of strategic products for HR. Back to Gartner after a gruelling few years at Peoplesoft.

8. Susan O'Leary, Vice President, Advertising of The Washington Post Corporation. Responsible for one of the most powerful recruitment media in the <st1:country-region><st1:place>US</st1:place></st1:country-region>, Washingtonjobs.com and The Washington Post, Susan is currently on a maternity leave with her first child, but keeps a regular ear to the leading indicators in the economy. Retiring at 40 from the Washington Post to spend more time with her toddler. Susan, we are so proud of the work you have done. You are truly an inspiration to us all.

9. Eileen Raney, National Managing Partner, Integrated Service Offerings of Deloitte Consulting. She is responsible for integrating the competencies (audit, tax, human capital, consulting, etc.) of the entire firm and addressing all complex business problems. Eileen sits on the Board of Directors and the firm´s Executive Committee, as well.

10. Marjorie M. Scardino, Chief Executive of Pearson - an international media group whose primary business operations include Pearson Education (incorporating businesses such as Scott Foresman, Prentice Hall, Addison Wesley and the educational testing, data and software company NCS Pearson), the Financial Times Group, the Spanish media group Recoletos and Penguin Group.

11. Deborah Schmidt, Global Vice President, HCM of SAP and Elena Ordonez, Senior Vice President of HCM. These two powerful women are responsible for the HCM Strategy sales and product development of industry giant SAP; the largest worldwide vendor in the ERP HCM arena. Deb is now at Temposoft, a niche start up for Time and Attendance and Elana is still at SAP, but no longer in the HCM area. 

So, of our 11 heroes, we have lost over 50% in the last 18 months. This is very BAD news.

I am very disappointed to say the vast majority of firms in the HCM space have very little female representation on their board of directors or on their senior management team. 
 
 
This year's (2004) list, again in alphabetical order, is: 


<ol>
<li>Susan Lucia Annunzio, CEO, Hudson Highland (HH). For those of you familiar with this spin off from TMP/ Monster, HH is a major player in the executive search and talent acquistion space. 
</li>

<li>Barbara Beck, Executive <st1:place><st1:City>Vice President</st1:City>, <st1:country-region>U.S.</st1:country-region></st1:place> and Canadian Operations of Manpower. She was recently listed on Human Resource Outsourcing Today magazine''s "100 Superstars of Human Resource Outsourcing," and is listed here for masterminding Manpower's strategic push to become the outsourcing leader among staffing firms. 
</li>

<li>Deb Besemer, CEO of BrassRing. BrassRing is one of the largest vendors in the talent management space. Deb is a visionary who has helped develop this industry into a viable market. BrassRing continues to be of the leaders in the talent development space. As a visionary they truly define the market and have a new product launching in 2005 that should revolutionize the industry and once again set them apart from a very crowded space. 
</li>

<li>Naomi Bloom: definitely one the industry´s most outspoken industry analysts with tons of experience and relationships. Naomi is a big supporter of outsourcing and has done an incredible job. 
</li>

<li>Susan Meisinger, SPHR President, CEO SHRM. The largest non-profit association does a better job than all vendors with their representation of females on their executive and board. Susan, a veteran of SHRM, brings a strong industry voice to all professionals. 
</li>

<li>Sheryl Riddle Senior Vice President, Consulting Services @ DDI and Audrey Smith Senior Vice President, Executive Solutions @ DDI are setting the direction of Corporate leadership with DDI. These individuals are responsible for the executive development and consulting delivered to the majority of the G1000 leadership efforts. 
</li>

<li>Anne C. Ruddy, CPCU, Executive Director, World at Work. World at Work is the largest association for compensation and benefits professionals. 
</li>

<li>Marjorie M. Scardino, Chief Executive of Pearson - an international media group whose primary business operations include Pearson Education (incorporating businesses such as Scott Foresman, Prentice Hall, Addison Wesley and the educational testing, data and software company NCS Pearson), the Financial Times Group, the Spanish media group Recoletos and Penguin Group. 
</li>

<li>Bev Kaye is a staple in the industry; an icon who is truly committed to her client base, is a favorite with all the HR professionals, and a talent retention guru. <st1:City><st1:place>Beverly</st1:place></st1:City> runs Career Systems International.</li>
</ol>

 

<ol start="10" type="1">
<li>Marjorie Blanchard is the real brains behind the Ken Blanchard Group and is the wife of Ken.</li>
</ol>

 

Well, that´s my take on 2004. We at HR.com would like to wish you and yours a happy and healthy holiday and here´s to a wonderful 2005. 

If you´ve not done so already, drop in to our new site at <a href="/">crm.hr.com</a> and email any comments you have - good or bad - to me:<a target="new" href="mailto:dmcgrath@hr.com">dmcgrath@hr.com</a>. I´d love to hear from you all.

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