Why Talent Management Isn’t Enough: Using HR Technology to Increase Productivity

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Moderator: Mike ProkopeakVice President, Editorial DirectorWorkforce Management magazine

Speaker: Steve ParkerVice President of HR StrategySumTotal Systems

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Mike ProkopeakVice President, Editorial DirectorWorkforce Management magazine

Steve Parker, SPHR

Steve is a former HR executive and a Vice President at SumTotal Systems, where he uses his background and deep understanding of successful HR strategies, processes, and technologies to deliver remarkable results to customers.

He has directly helped organizations of all sizes, including numerous small businesses and nearly half of the Fortune 100, achieve better results through their people, and has global experience in every industry. He has redesigned HR processes and technology for some of the world's best places to work, and has led efforts to drive HR solution education and awareness globally.

Steve has developed his unique, cross‐functional HR perspective from leading several strategic HR functions and initiatives for various organizations throughout his career, including Talent Acquisition, Performance Management & Leadership Development, Talent Management & Succession, and HR Operations. He is a former member of the United States Army Special Operations Command, a Senior Professional in Human Resources (SPHR), a certified Human Capital Strategist (HCS), and sometimes travels the world in search of adventure like Caine from Kung Fu.

About the Presenter

Why Talent Management Isn’t EnoughUsing HR Technology to Increase Productivity

Steven Parker, SPHRVice President, HR Solution Strategy

April 24, 2013

The Environment

Moving From Talent Management to Talent Expansion

The 3 Factors of Talent Expansion

About SumTotal

Agenda

The Environment

About SumTotal

Agenda

HR Is More Complex Than Ever…

Rapid GlobalizationGlobal workforce, increased diversity, decentralization

Increasing RegulationIncreased compliance –

payroll, industry, and regional

Do More With LessIncreased focus on driving efficiencies and productivity

War for TalentAttracting, retaining and motivating the right talent

Source: Gartner HR Trends and PwC Global HR Study

What is your organization’s top people challenge for 2013?

① Increasing Regulation

② Do More With Less

③ Rapid Globalization

④ War for Talent

Poll Question

Source: Gartner HR Trends and PwC Global HR Study

of CEOs are making changes to talent strategies in response to the global environment

of executives are dissatisfied with talent management support79%

Source: The Hackett Group, Business Services Talent Management Performance Study

$8 Billion2/3rds Fail

Annual Spend on HCM Software

Source: Penn Schoen Berland, 2012

don’t think HR technology helps them do their jobs better67%

The Environment

About SumTotal

Agenda

HR Needs to EvolveIt’s not enough to deliver this

200 people completed training

98% completed performance appraisals

Performance Management Outstanding Performance

How What

.5‐2x ROIHR Efficiency

• % of Performance Reviews Completed

8‐10x ROIBusiness Enablement

• Productivity• Revenue Growth

Typical HCM Software Focuses on the Process, not Outcomes

People need software that helps them be

better at what they do… not just record what

they did.

It’s Time for Talent Expansion

tal∙ent ex∙pan∙sion/�talənt ik�spanSHən/

Noun1. The growth and development of new knowledge, skills, experience, and capabilities: the

expansion of individual and organizational talent.2. Tools that help people be better at what they do, not just record what they did.3. A revolutionary approach to HR software.

Synonymscapability development – skill growth – productivity increase

HR Needs to EvolveYou need to deliver

Continuous just‐in‐time learning+ 15% greater productivity

Real‐time collaboration with experts+ 50% add’l sales in one account

Focused career development+ Region lead

Productivity 175%

Employee Engagement

Promotion Rate

Source: Bersin & Associates 2011

Talent Expansion Brings Real Benefits

Increased productivity

Improved adoption and engagement

Nearly triple the ROI

1980 2000 2012

Talent Expansion

Talent Management

Traditional HCM

Core Tracking + Reporting

+ Improved UI + Pervasiveness & Context

Push(company‐imposed)

Pull(people‐promote)

What’s the highest level of value you are getting from your HR systems infrastructure today?

① Little or Unclear

② Automates Important Functions and Processes

③ Provides Cross‐Functional Insight Into Talent Capabilities

④ Helps People Be Better At Their Jobs and Drives Productivity

Poll Question

The Environment

About SumTotal

Agenda

ActionMore Than Just Viewing and

Recording, Taking Action in Real Time

AccessFrom Anywhere, On Any

Device, Where I Do My Work

InfoComplete View of Relevant People and Business Data

Provides Context

• Experience• Competencies

• Knowledge• Personal Attributes

Who They Are

What They Know

What They Have Done

What They Can Do

use more than three HR systems75%

Source: Forrester Research, 2011

LACK OF INTEGRATED VISIBILITY AND ANALYTICS

HIGH COMPLIANCE AND OWNERSHIP COSTS

LACK OF INTEGRATEDHR PROCESSES

LACK OF A “SINGLE SOURCE OF TRUTH” OF TALENT

RECRUITING

COMPENSATION CAREER DEV

SUCCESSION

PAYROLL

PERFORMANCE

FINANCIALS

SUPPLY CHAIN

Data mapping is70% of project cost

Average HRMS consolidationCost: $6 millionTime: 3 years

Technology Vendors:“The only way to getanalytics and value is tobuy core HR from us.”

HR Executives:“We’ll continue to needmultiple systems into theforeseeable future.”

Systems Consolidation Isn’t the Answer

A VIRTUAL ‘SINGLE SOURCE OF TRUTH’ OF TALENT

INTEGRATED HR ANALYTICS

IMPROVE COMPLIANCE ANDOWNERSHIP COSTS INTEGRATED HR PROCESS

RECRUITING

COMPENSATION CAREER DEV

SUCCESSION

PAYROLL

PERFORMANCE

FINANCIALSSUPPLY CHAIN

Access

The SumTotal elixHR Platform: extending and linking HR data and processes

Deliver actionable information in contextPervasive, when needed

Virtual system of recordIntegrated analytics Compliance and security

CORE HRIS + WORKFORCE

LEGACY TALENT/3RD PARTY

GLOBAL PAYROLL

ERP/CRM

UNSTRUCTURED

CLOUD APPS

Your systems and infrastructure

Easily Accessed Where People Do Their Work

Action

7:00 am Assigned a new top 10 customer for meeting this afternoon.

7:15 amOpens her salesforce.com opportunity record and seeslearning specific to this opportunity and connections to people who know this customer well.

7:30 am Uses tools to get up to speed on new opportunity.

10:00 am Nails the meeting. Gets handshake agreement for purchase of new product.

Talent Expansion in Sales

8:00 am Arrives at work, clocks in, and finds the equipment he’s going to work on has been updated.

8:01 am Receives needed training immediately on mobile device, takes certification test and passes. Manager is automatically notified that he is certified.

8:30 am Starts equipment for the day’s work.

Talent Expansion in Manufacturing

12:00 pm Finishes project and is assigned a goal that requires him to use Ruby, a language he has not used for 18 months.

12:15 pm

In addition to showing how his goal will contribute to company success, the system provides specific suggestions of 2 learning activities aligned with the goal to update his skills.

12:30 pm Starts project with confidence and is immediately productive.

Talent Expansion in High Tech

“I could not do my job without it.”

Effective performance management is a series of

ongoing activities – goal‐setting and revising,

managing and coaching, development planning, and

rewarding and recognizing – with performance

appraisal events interspersed throughout.

Summary

ActionMore Than Just Viewing and

Recording, Taking Action in Real Time

AccessFrom Anywhere, On Any

Device, Where I Do My Work

InfoComplete View of Relevant People and Business Data

Provides Context

Talent Expansion Brings Real Benefits

Increased productivity

Improved adoption and engagement

Nearly triple the ROI

1980 2000 2012

Talent Expansion

Talent Management

Traditional HCM

Core Tracking + Reporting

+ Improved UI + Pervasiveness & Context

Push(company‐imposed)

Pull(people‐promote)

Business-Integrated HR

Strategic HR

Fundamental HR

Compliance-Driven HR

$270,647

$118,577

$169,693

$98,221

0 $100,000 $200,000 $300,000

Revenue Per Employee By HR Focus

The Environment

About SumTotal

Agenda

LEARNING TALENT WORKFORCEPAYROLL &EXPENSE

3,500 Enterprise and SMB customers | 45 million users | $200M+ in revenue96% Customer Retention | Nearly 30 Years in HR

SumTotal is the Leading Independent HR Software Provider

#1 in Learning #3 in Integrated Talent

Estimated Global LMS Market ShareBersin, 2012

Integrated Talent Management ManagementSystems Market Share, Bersin, 2012

Many of Fortune’s “Great Places to Work”

are SumTotal Customers

SumTotal Applications

Comprehensive, Integrated and Modular

Open – Works with Other Technologies

Solves Complex Customer Problems

Scalable – Enterprise and SMB

Talent | Learning | Workforce | Payroll | Analytics

Deploy

SaaS Desktop/Laptop

Smartphone

TabletOn Premise

Hosted

private

Access

SumTotal Deployment Options & Access

Thank YouQuestions?

For free resources visit us at www.sumtotalsystems.com

The Talent Expansion Manifesto

2013 Forrester Talent Management Wave

Improving Employee Engagement to Drive Business Performance

HR Field Guide: 5 Tips to Effective Performance Management

Steve ParkerVice President of HR StrategySumTotal Systems

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Why Talent Management Isn’t Enough: Using HR Technology to Increase Productivity

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