Two Big Challenges in Moving to Cloud-based, SaaS-delivered HCM Technology

cloud computingLast time I blogged, the topic focused on three key reasons to move to a better world: cloud-based HCM technology delivered via software-as-a-service (SaaS). So let’s assume that you’ve made the (wise) decision to start this process—and that your new technology will be, preferably, a single application. You’ll want the feelings you experience during transition to match those you  have once your HCM technology finally is in the cloud and SaaS-delivered. There are several challenges. Here are two big ones and how to navigate them successfully.

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3 Reasons to Move to Cloud-based, SaaS-delivered HCM Tech Running on a Single App

cloud2It can feel like hype, all those industry-wide calls to migrate to the cloud and to the software-as-a-service (SaaS) model of delivery. But, really, it isn’t hype at all—especially when the move is from an on-premise system heavily dependent on data interfaces and platform integration to a clean, single application based in the cloud. The reasons to make a switch are many for your human capital management technology, but if I had to choose just three, they’d be these:

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Showing Loyalty to Customers during Times of Change

recruitMaintaining Customer Loyalty During Times of Change

Change is hard and the only constant. Those are clichés, but that’s because they’re realities, right? Every time a big vendor of technology for human capital management gets acquired by an even bigger vendor, customers of HCM technology face uncertainty. The aftermath can be hard. Customers look for help, consistency and guidance. And they want loyalty from their vendors.

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Today’s HCM Needs Modern HCM Technology

cloudcomputingIt was 30 years ago October that I took my first job at Unisys supporting payroll for K-12 school districts. I’ve seen and heard it all, and I know for a fact just how hard it is to integrate disparate systems with legacy data models, processes and frameworks. One of the reasons I found the move to Ceridian so exciting was to be liberated of that headache. It takes guts to start over, and with Dayforce HCM, we’ve done exactly that—built a unified system with no need for integration (or interfacing) between modules. It makes product development infinitely easier. Combine that with deployment in the cloud, and you have the kind of story that has customers choosing Dayforce HCM in large numbers. I’m not going back, and you’ll have to decide for yourself when it’s time to make the journey. In the meantime, here’s a little more on what I mean about modern HCM technology in 2013….

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Is Your HCM Tech Too Integrated? It Takes Courage to Start Over

bi recruitingLast week, I wrote about my vision of integration’s future: as little of it as possible. There’s a desire percolating to leave behind functionality-sapping, overly integrated human capital management technology. But what does it take to start over? Well, that is what it often takes—starting over. And starting over takes courage.

Cloud, SaaS and Integration: Having Courage at the Crossroads

So, let’s say your HCM system is integrated to the hilt. It’s clunky. And your legacy HCM technology goes way back, too, and none of it is in the cloud or delivered via software-as-a-service (SaaS). Costs associated with the upkeep of an outdated or clunky system are holding you back. And that’s the upkeep that’s still possible to perform: Many companies use systems with no vendor-provided support at all!

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Integration’s Future? As Little as Possible

None would be ideal. Startled? Think about the sound of the word integration. Inherent in it are notions of a seamless user experience and a system functioning perfectly, as one unit with nothing impeding its operation. Integration brings to mind harmony. But integration in practice usually looks and feels much different and tends to cause the very challenges it claims to solve. The best strategy? Eliminate integration wherever possible.

The Sound of Integration

Without an explanation, this reality can be confusing. Integration, after all, is a concept with positive connotations. Integration, the word, sounds good in advertising copy and, as a concept, tends to sell HCM technology. It symbolizes the idea of togetherness, synchronicity and coordination. Buyers hear the word integration and imagine intuitive functionality. By its label, integrated technology leads users to expect a hassle-free experience involving moving parts cooperating and understanding each other perfectly. Toss the cloud or the concept of SaaS into the equation, and integration sounds even better. But neither the connotations nor expectations reflect the reality of integrated HCM technology, not even when it’s cloud-based or SaaS-delivered.

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My Views on the HR Technology Conference for 2012

The HR Technology conference is always one of those things that helps anchor me in how a year progresses.  I realize that’s pathetic, but after having attended as many of these as I have, it kinda gets under your skin.

This year is a different animal, I think — for a variety of reasons.  And with that, allow me to offer my top five reasons to consider attending the conference:

  1. The Cloud is really changing the way we think about HR technology, and this year is a big one for products and services that leverage it.
  2. I can almost smell the transition the market is about to take.  As an old-timer, I was here when PeopleSoft took over the world in the early 90s, and it looks, smells and tastes like another one of those cycles.  The product announcements are going to reflect that.
  3. Product implementations are aging, and the economy is improving.  That means lots of companies that badly need to upgrade their systems are finally going to be allowed to start doing it.  And it also means that vendors will be at the top of their game.  The fact that the conference hotels are sold out and exhibit space is non-existent (so I’m told) is a strong indicator that this one’s going to be a blow out.  Come and learn.
  4. I can’t resist the temptation to express my excitement for the Dayforce HCM launch that will be front and center at the event.  I can’t tell you any more than that (wouldn’t want to steal the thunder), but it’s certainly going to be the highlight of my first year at Ceridian.  I’ll be there with bells on.
  5. The conference guys gave me my very own, personal code that you can use to register for the event and save $500 on the registration fee.  So make me look good and now that you’re ready to sign up, go to http://www.hrtechconference.com and use the promotion code DUNIVAN12 to get the discount.  It’s just that easy!

I’m looking forward to meeting friends (both new and old) and continuing the great legacy that this event represents for our industry.  See you in Chicago!

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Internships and Irony: Past, Present and Future

Some of you know that from 2002-2004 I worked in IT at Best Buy Stores in Minneapolis.  It was my one (and only) corporate IT experience, and I suspect it will be my last for many reasons.  But I always loved the retail business and the people there were nothing short of inspiring.

So earlier this spring, my daughter Audra (a junior at the University of Michigan) capitalized on an opportunity to work there for the summer as a project coordinator.  And if that isn’t ironic enough, she’s working on an implementation of Success Factors performance management which of course hits very close to home.

Anyone that knows me is well aware of how proud I am of my children, and to have her working in my field with great people from Best Buy HR and several consultants from Knowledge Infusion is a bit thrilling to me.  But best of all, she’s taken to the work and has been able to make what looks like a real difference.  In my mind, it’s a testament to what always matters in work — a great attitude, a willingness to try things you’ve never done before (which for her is all day every day) and supportive people that really want the experience to be a great one for her.

It’s still early (and the go-live isn’t until August, so I’ll have to hold her accountable for results), but she did receive an early report card from her mentors that I couldn’t resist sharing.  And I’d be remiss in not thanking Bernadette Finken, Jeannette Conaway and others at Best Buy for their efforts.

I’ll have to wait and see if this might lead her to the same field I’m in — I’m ok either way, and it’s fun just to contemplate the possibility.

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Some New Spin on an Old Topic: HR Analytics

I recently presented a Ceridian webinar called Using HR Analytics to Align Workforce and Business Strategy (click the link for the show page and the recording of the event). Lots of big words in that title, but what it really means is: How to take a bunch of seemingly unconnected HR data and make some sense out of it so you can solve business problems more quickly and confidently.   I was amazed by the continued level of interest in this topic considering it’s been in the forefront for years.  Just goes to show you the extent to which this stuff takes years to really mature within organizations.

In the webinar we talked about how HR needs to create tools that provide operations leaders with actionable data for decision-making. We discussed dashboards, what to track on them, and how they can help you identify problems, gain insight and come up with a plan.

This is exciting because, in the past, reports have been beneficial but the raw data could sometimes be overwhelming. Today we have the tools to understand that data and manipulate it much more effectively, which enables the HR function to contribute more directly in business activities.

I’m not going to recap the content, because you can listen to it yourself.  But the webinar attendees came up with some great questions, so I thought I would share a few of my answers here.

To get started, what would you recommend as the basic and fundamental metrics to use?

Start small. I would recommend choosing 3-5 measures that deeply relate to how you run your business from a people perspective. Talk to business unit leaders to see what type of information would be most helpful to them. Use the quality of the current data as the primary filter after you get a short list of possible measures.

What type of metrics do you think are important in the Benefits world?  What information should we be capturing and what information should we be feeding to upper management?

This depends a bit on how your benefit plans are structured, but COBRA metrics are a good, relatively easy and cost-relevant place to start. Depending on the quality of your data, you can also leverage some measures that reflect overall workplace health, but that’s pretty advanced.

 

We struggle with the fact that our function (HR) is not important to our executives, which affects the beliefs of the managers we deal with. How can we help them understand the value of Human Capital?

Develop personal relationships with business leaders over time. Find like-minded managers in your organization and show them what you can do strategically with the data you have today. They will become evangelists for your cause and help to generate buy-in from the other business units and eventually senior executives.

How do you track the absence rate when you have PTO?

You need a deeper level of granularity in your data, which probably requires some of the features typically found in a workforce management system – more time punches with a greater level of detail.

Can you customize your HR Analytics and Business Intelligence modules to meet the needs of a company’s culture?

Yes. It’s essential. If you don’t align what you measure with the culture, it will be ineffective. But recognize that there’s often a difference between what gets measured and what’s relevant to culture, so make sure you have a clear understanding of both.

As you can see from the attendees’ questions and from the poll results taken during the webinar, many companies are starting to see the value in business intelligence tools. To learn more about HR analytics and how to use them, you can download the webinar recording and slide deck from my presentation.

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Before My Objectivity is Completely Gone

Having been an accidental blogger over the past 3 years, I have always found it frustrating that I can’t fully say what’s on my mind.  There’s the obvious risk of a trip to prison (especially when I worked for a publically traded company), and as an employee of a software company, your personal perspective is always bounded by the organization’s strategy and goals.  Not a great formula for objectivity as a blogger.

Earlier in the week I tweeted about my visit to the headquarters of Dayforce in Toronto.  They are a critical and strategic partner for Ceridian, and it was my first opportunity to see for myself what they are up to.  As a 7 day veteran of Ceridian, my objectivity is rapidly evaporating.  So before it’s completely gone, I wanted to make a few observations as a member of our HR technology community that strives to help customers grow stronger.

1.  User Experience is all about the Game:

I occasionally get frustrated over the fact that user experience is often evaluated more on beauty than functionality.  And we all want to work with something that’s pretty — it’s human nature — but just because there’s a chart on the page, it doesn’t actually mean that the application is more effective.

When I had the chance to look at the form that acts as the centerpiece of scheduling in Dayforce Workforce Management, it took my breath away.  Not only did the form look great — an elegant presentation of the employee with a quick path to some useful demographic data, but they also had effectively read the mind of the end user.   Optimizing and finalizing a work schedule (after the automated engine does its thing) is no simple task.  But this single form allowed for the myriad of tasks that needed to be performed happen so intuitively that it was simply beautiful.  Which, my friends, is a rare thing to say about software that administers anything in our business.

Better yet, as the user manipulated this data, the real time nature of the interaction was elegant.  If something was changed related to an employee’s schedule, the images and/or color dynamically changed to show if there was an issue (for example, if extending the shift drifted into unavailable time for the individual).  No need to enter data, wait for a response, repeat.  Best of all, it was downright fun to watch as the scheduler issued a request to an on-call worker to come in which was delivered to that person’s smartphone, accepted, and updated in the system in under 30 seconds.  David Ossip, the founder of Dayforce tells me that the concept is called gamification which made perfect sense — using game design techniques for non-game applications.  And what user doesn’t want to use an app that feels a bit like a game?  Words with Friends, anyone?

The whole experience got me to thinking about my niece (stay with me!).  She worked at the Gap a couple of summers ago, and was totally frustrated because on a good week, she was working about 8 hours.  She was available, wanted to work and was skilled — but it seemed that she didn’t have the right connections with the managers in the store to get more hours.  In a world driven by Dayforce, she could monitor store needs in real time (right from her iPhone) and grab work whenever she wanted it.  One of the folks at Dayforce told me that some employees are spending more time on the workforce app than they do on Facebook!

2.  Workforce Management Carries A Lot of the Payroll Load

While I’ve been working with payroll systems for nearly 30 years, I don’t have much experience with workforce management.  As I spent some time reviewing the design for the payroll portion of the Dayforce product, I marveled a bit at how the work they’d done for WFM was completely reusable for payroll.  Some of you are probably saying, “Duh, Larry” — but for me it was a bit of an eye opener.

A single platform for pay rules that drive scheduling coupled tightly with the gross to net engine not only will dramatically reduce the effort to deliver world-class payroll functionality but will also eliminate a common disconnect between operations and payroll — how did the gross get calculated?  More importantly, it’s a huge jumpstart on one of the most complex parts of designing a payroll system.  That, along with great tax functionality from BSI means that this thing is being buit very quickly.

3.  Payroll Managers Want to Have Fun Too

There have been very few ‘from-scratch’ payroll systems built in the last few years and the vast majority of payroll managers are working with software that, while very effective at accurately processing payroll isn’t always that much fun to work with.

The real-time nature of the gross-to-net calculations in Dayforce combined with the modern user interface components mean that like their colleagues in recruiting, organizational development or compensation, payroll managers are going to get in on the action!

So as I head into week 3 at Ceridian, I’ll just have to go back to my world as a software company executive with an agenda — but I’ve put it out there and as the evolution of these products continue, you can judge my assessment.

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