In my post from yesterday, I critiqued a post on ERE from Dr. John Sullivan and Master Burnett about guiding principles for improving HCM solutions. I promised that I would post today my own vision for next generation HCM systems.
I will not provide all of the details here (I have to save some of that for Gartner clients), but I will provide a high level overview here. I find it useful to think about this in terms of the three main buidling blocks for systems: Roles, Processes, and Data.
Roles
One might ask, what is new about roles? There are plenty of role-based solutions in the market today. That is true. However, they are generic roles (manager, employee, recruiter, etc.). Roles need to be more specific (e.g., store manager in retail) and recognize that people will be in multiple roles. Applications have been more focused on functions and to a lesser extent processes. There needs to be more user-centricity based on role. Roles are not just about application access and provisioning of functionality. Next generation HCM applications require content and data should be provided, in context, by role. Portals get us part of the way there, but the user experience still needs to be optimized for the role.
Processes
Geoffrey Moore in "Living on the Fault Line" does a good job of discussing the notion of "core" vs. "context" processes. Core processes is all of the things a business does that is strategic and provides competitive differentiation. Context processes are everything else. In addition, over time, Core processes often become Context processes as best/leading edge practices become standard practices.
Next generation systems need to allow for both extreme flexibility and standardization. Core processes need extreme flexibility. You want to be able to change Core processes easily to keep ahead of the competition. For example, if I am a company in the Oil and Gas industry, I want extreme flexibility in my processes for hiring key talent (e.g., geophysicists, engineers, etc.). Context processes should become more and more standardized. Variation of Context processes should be avoided (unless it is for a regulatory or contractual obligation). At the extreme of standardization is outsourcing (it is so standard many companies can do that process the same way). In the Oil and Gas example, the hiring process for administrative workers at headquarters should be very standardized because they are not key talent in the business.
Today, I can implement a single system that automates different processes for key talent and non-key talent. That is straigthforward. What is difficult is to change that process as market conditions change for key talent. To stay ahead of the compeition for "A" players, companies need their technology to keep up with changing recruiting strategy. Sometimes existing systems do not have the needed capabilities. For key talent, companies cannot wait for the next release, they need to react now.
Data
I have already published research on this for Gartner. I am working on a case study that will be published soon. I would just highlight here that next generation HCM applications will do more than just provide standard reports, ad-hoc reporting tools, multi-dimensional analysis (with drill-down), and dashboards. These are all good things (especially if used by properly skilled HR professionals). However, next generation HCM solutions will have additional tools that will enable HR professionals to advise managers and executives on how to get the most from their investment in human capital.
You will note that I did not use buzzwords like SOA or SaaS. They are incredibly important concepts and enablers of the change to come. However, focusing on them obscures what fundamentally needs to change in the systems themselves. Hopefully, I have provided a glimpse into what needs to change to make HCM solutions more effective. Were you expecting more? Did I miss anything important? Is this an evolution or revolution? Comments welcome.