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Customer Experience with Talent Management Systems What’s Driving Satisfaction? PRELIMINARY RESULTS Josh Bersin and Barb Arth October, 2010 Copyright © 2010 Bersin & Associates. All rights reserved.


About Us  Who We Are •

Industry‟s primary research firm focused on WhatWorks® in enterprise learning and talent management

 Research Areas • • • • • • • •

Enterprise Learning Leadership Development Talent Acquisition Performance Management Career and Succession Management Workforce Planning Content Development HR Systems

 Offerings • • • • •

In-Depth Studies and Reports Research Memberships Workshops Benchmarking Advisory Consulting

Copyright © 2010 Bersin & Associates. All rights reserved.

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Agenda  The Research Behind These Results  The HR Technology and Talent Management Market  Our Findings  Implementation Stories  What Does It All Mean  More Information

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Research For This Presentation

 7-month quantitative and qualitative study  Survey results from more than 700 customers evaluating approximately 45 providers  More than 30 direct interviews  Updated report available for members and purchase in December 2010  Research bulletin on preliminary results available to members now

Copyright © 2010 Bersin & Associates. All rights reserved.

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16 Participating Vendors With at Least 10 Evaluations

ADP

Saba

Cornerstone OnDemand

SAP

Halogen

Sonar6

iCIMS

StepStone

Learn.com

SuccessFactors

Oracle PeopleSoft

SumTotal

PeopleClick Authoria

Taleo

Plateau

Ultimate Software

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Agenda  The Research Behind These Results  The HR Technology and Talent Management Market  Our Findings  Implementation Stories  What Does It All Mean  More Information

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The New Talent Management Framework

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Hiring Recruiting

e-Learning Compensation

Performance Talent

Integrated TM Solutions

Compensation Integrated Talent Management Workforce Learning LCMS Planning Management Performance Recruiting Next Gen Management Sourcing SuccessionRecruiting Benefits Management Applicant Competency Administration Tracking Mgt HRIS

2000

People Mgmt Systems

HRMS/core HR data + TM

Market Growth - Adoption

Evolution of HR Systems

Compensation

2003

2006

2009

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2010+ Page 8


Expanded Breadth of TM Functionality

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Evolution of TM Strategy  Performance management integrated with development planning, succession, talent mobility, and career planning – focusing on internal mobility and growth  Redefinition of succession management to address talent mobility, creating agility, skills development, engagement, retention

 Revamp of leadership development to address new competencies, action learning, and leaders teaching leaders – and focus on mid line leadership  Redefining L&D to focus on capability management, including formal, informal, continuous learning, and learning culture  Expansion of workforce planning beyond staffing to include business-integrated talent planning and a total analytics framework for HR

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Evolution of TM Strategy, continued  Use of profile management and social networking to slowly replace competency management as core to job fit  Development of talent segments and differentiation to help prioritize investment to “wealth-creating” roles  Replacement of candidate funnel with focus on building a candidate tunnel, using employee brand – and further integrating with performance management processes  Now focusing on innovation, diversity, globalization, deep specialization, and integration as keys to success in the coming decade

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TM Strategy Maturity Opportunity Steady growth in understanding the business impact of integrated strategies enabled by technology How “Mature” is your Talent Management Strategy?

More than half of all companies still have an immature or no strategy at all.

© Bersin & Associates, Talent Management Factbook 2010

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Integration Becoming a Top Priority 1/3 of HR Technology Users Are Willing to Sacrifice Some Features for Integration – Twice the number from last year

Are you willing to sacrifice functionality to standardize on one vendor?

33% Yes No Not Sure

46%

21%

Source: Talent Management Systems 2010, Bersin & Associates, 2009.

Figure 42

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Complex HR Systems Landscape An integrated approach to support people management Benefits

Payroll

Compensation

Workforce Planning HRMS

Recruiting/ Onboarding

Performance and Succession Management Learning Management

Workforce Management Content

Competencies

Assessments

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HR Systems Providers Benefits

Payroll

Comp

Workforce Planning HRMS

Recruiting Onboarding Learning Management

Performance Management Succession

Workforce Management

Content

Competencies

Assessments

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Accelerating Pace of Acquisitions          

ADP – VirtualEdge Kenexa – BrassRing Saba-Centra Plateau – Nuvosoft Successfactors – Cubetree Peopleclick – Authoria Taleo - Learn.com ADP - Workscape Kenexa – Salary.com SumTotal – Softscape …..

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Typical HR Technology Maturity Curve A 7-year cycle The Talent Management Suite

Scenario Planning

HRMS Integration

Open Data New Market Integration (early

adopters)

Video and Social Recruiting

Open Profile Management

Growing Market (early majority)

Internal Social networking

Talent Acquisition

Compensation Management (Specialist)

Visual Performance Analysis

Integrated Analytics Alerts Informal Social Learning

Twittering Feedback

Compensation Management (Line Manager)

Mature Market (late majority)

Re-emerging market (late adopters)

Dynamic Development Planning

Tools for Job Seekers

Next Gen Recruitment Management

Pooling Segmentation Career and Succession Management Strategic Workforce and Talent Planning

Reinventing market (laggards)

Performance Management

Learning Management

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Modern HR Systems Architecture An integrated portal-based approach

Employee Self-Service

Benefits Communication

Compensation, Benefits, Vacation, Directory, etc Onboarding Talent Mobility Career Portals

Recruiting ATS

Benefits Provider

HR Helpdesk

Budgeting Pay for Performance Total Rewards

Performance Succession

Internal Collaboration Social Networking

Development Planning Certification

Comp

Learning

HRMS 1

HRMS 2

HRMS 3

US Payroll

Country B Payroll

Country 3 Payroll

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A Typical Talent Management Roadmap Multi-Year Journey for Providers and Customers

Defense Contractor

Year 3 Year 2

Integrated Succession & Career Planning

First Phase Succession

Year 1 Learning by Role & Values-Based Competencies

Learning Integrated with Performance & Competencies

Performance & Development Management (Pilot)

Performance & Development Companywide

Performance & Development Companywide

Values-Based Competencies

Leadership Competencies

Values-Based, Leadership & Functional Competencies

Revamp Employer Brand & Sourcing

Move Work to Candidates

Improve Pipeline through University Partnerships

Many Learning Offerings

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Technology Integration Now A Top Priority 75% expect to integrate to one or a few providers Only 15% want ERP or HRMS provider today

How do you plan to implement integrated talent management systems? TMS from our ERP/HRMS provider

15%

TMS from 1 provider

30%

25%

Disparate systems – some from vendors and some home-grown

30% Consolidate to an TMS system from a few vendors (but more than 1)

Figure 39

Source: Talent Management Systems 2011, Bersin & Associates, 2010.

Copyright Š 2010 Bersin & Associates. All rights reserved.

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TM Market Growth – Even During Recession Talent Management Systems Market Size

$1,200 Learning Management $1,000

Talent Acquisition

$1,036 $989

Performance, Succession, Career $899 $900

$859

$800

$817

$784

$704

$699

$682 $600

$783

$615 $577 $520

$400 $385

$200

$0

2007

2008

2009

2010

2011

Source: Talent Management Systems 2010, Bersin & Associates, 2009.

Figure 15

These numbers are preliminary based on this year‟s TMS raw data research; numbers will be finalized with publication of LMS, TAS, and TMS reports at 2010 year-end. Copyright © 2010 Bersin & Associates. All rights reserved.

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Providers’ Target Market Sizes Average # of Employees Per Provider 60,000

49,861

50,000 44,399

45,294

45,417

40,000 35,250

36,168

28,687

30,000 22,243 20,469

20,000 15,625

17,283

12,130 8,893

10,000 2,461

2,776

3,837

-

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Vendor Market Share – Still Fragmented Participating Vendors Capture 77% of the Total Market * Vendor

Target Market

Market Share by Revenue*

Market Share by Customer Count*

ADP

Enterprise

3%

2%

Cornerstone OnDemand

Enterprise

1%

2%

Halogen

Midmarket

4%

5%

iCIMS

Enterprise

2%

2%

Learn.com

Midmarket

4%

2%

Oracle PeopleSoft

Global Enterprise

6%

3%

PeopleClick Authoria

Enterprise

1%

1%

Plateau

Global Enterprise

1%

4%

Saba

Global Enterprise

6%

7%

SAP

Global Enterprise

3%

3%

Sonar6

Midmarket

2%

2%

StepStone

Enterprise

7%

6%

SuccessFactors

Enterprise

12%

10%

SumTotal

Global Enterprise

6%

8%

Taleo

Global Enterprise

17%

11%

Ultimate Software

Midmarket

2%

1%

*These numbers are preliminary based on this year‟s TMS raw data research; numbers will be finalized with publication of LMS, TAS, and TMS reports at 2010 year-end. Copyright © 2010 Bersin & Associates. All rights reserved.

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Agenda  The Research Behind These Results  The HR Technology and Talent Management Market  Our Findings  Implementation Stories  What Does It All Mean  More Information

Copyright © 2010 Bersin & Associates. All rights reserved.

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Our Customer Experience Methodology Measured by 4 areas of customer satisfaction, 18 Total Measures

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Product Quality: Who’s Top, Who’s Not Showing vendors with 10 or more evaluations (p<.001) Scores indicated are on a 1-5 scale with 5 high

Feature Capability Vendor

Configurability

Ease of Use Vendor

Features

Halogen

3.97

Learn.com

3.54

Saba

3.53

Vendor

Ease

System Performance

Config.

Vendor

Perf.

Halogen

4.05

Halogen

3.81

Halogen

4.25

Sonar6

3.84

ADP

3.70

SuccessFactors

3.66

ADP

3.60

Learn.com

3.64

iCIMS

3.59

3.43

Saba

3.55

Ultimate Software

3.41

Learn.com

3.50

Taleo

ADP

3.40

PeopleClick Authoria

3.48

Cornerstone OnDemand

3.36

ADP

3.50

Taleo

3.35

StepStone

3.47

Saba

3.35

Ultimate Software

3.47

Cornerstone OnDemand

3.30

SuccessFactors

3.41

Ultimate Software

3.32

Plateau

3.45

Plateau

3.29

Ultimate Software

3.38

PeopleClick Authoria

3.30

StepStone

3.43

StepStone

3.23

iCIMS

3.38

Plateau

3.29

PeopleClick Authoria

3.39

3.17

Taleo

3.38

iCIMS

3.21

Plateau

3.21

StepStone

Sonar6

3.18

Taleo

3.18

SuccessFactors

3.16

Learn.com

3.18

PeopleClick Authoria

3.13

Cornerstone OnDemand

3.06

Sonar6

3.08

Sonar6

3.16

SuccessFactors

3.09

Saba

2.94

iCIMS

3.07

Cornerstone OnDemand

3.09

SumTotal

3.06

SumTotal

2.73

SumTotal

2.91

Oracle PeopleSoft

2.90

2.80

Oracle PeopleSoft

2.45

Oracle PeopleSoft

2.60

SAP

2.89

SAP

2.79

SAP

2.05

SAP

2.53

SumTotal

2.88

Overall

3.31

Overall

3.29

Overall

3.26

Overall

3.42

Oracle PeopleSoft

= vendors who scored in the top 5 across all 4 categories of Product Quality = vendors who scored in the bottom 5 across all 4 categories of Product Quality

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Implementation: Who’s Top, Who’s Not Showing vendors with 10 or more evaluations (p<.001) Scores indicated are on a 1-5 scale with 5 high

Vendor Consulting Consulting support

Vendor

Time to Implement

Ease of Data Integration Vendor

Ease of data integration

Vendor

Length of time to implement

Halogen

4.44

Halogen

3.80

Halogen

4.21

Learn.com

3.78

Learn.com

3.50

Cornerstone OnDemand

3.68

ADP

3.70

ADP

3.50

Taleo

3.59

StepStone

3.66

Ultimate Software

3.44

iCIMS

3.44 3.43

Taleo

3.64

StepStone

3.32

StepStone

Sonar6

3.57

Taleo

3.28

Ultimate Software

3.41

iCIMS

3.56

Saba

3.27

ADP

3.40

Saba

3.51

Plateau

3.23

Sonar6

3.39

Ultimate Software

3.39

iCIMS

3.19

Saba

3.33 3.32

Plateau

3.38

Cornerstone OnDemand

3.15

Learn.com

Cornerstone OnDemand

3.23

Oracle PeopleSoft

3.11

Plateau

3.29

PeopleClick Authoria

3.19

Sonar6

3.04

SuccessFactors

3.23

SuccessFactors

3.00

SuccessFactors

3.03

PeopleClick Authoria

3.09

Oracle PeopleSoft

3.00

SumTotal

2.97

SumTotal

2.91 2.72

SAP

2.94

SAP

2.76

Oracle PeopleSoft

SumTotal

2.94

PeopleClick Authoria

2.73

SAP

2.39

Overall

3.49

Overall

3.24

Overall

3.39

= vendors who scored in the top 5 across all 3 categories of Implementation = vendors who scored in the bottom 5 across all 3 categories of Implementation

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Service: Who’s Top, Who’s Not Showing vendors with 10 or more evaluations (p<.001) Scores indicated are on a 1-5 scale with 5 high

Support Responsiveness

Communicate Support Process to communicate support issues

Vendor

Vendor

Support Outcome

Responsiveness service tickets/requests

Vendor

Follow through on service tickets/requests

Halogen

4.39

Halogen

4.56

Halogen

4.44

iCIMS

3.82

ADP

4.20

iCIMS

3.89

ADP

3.70

iCIMS

3.93

ADP

3.80

Ultimate Software

3.59

Sonar6

3.58

Sonar6

3.39

Learn.com

3.54

Plateau

3.29

Learn.com

3.39

StepStone

3.48

Saba

3.29

Ultimate Software

3.32

Sonar6

3.46

Taleo

3.28

Saba

3.31

Taleo

3.44

Ultimate Software

3.21

StepStone

3.29

Saba

3.43

Learn.com

3.18

Taleo

3.23

Plateau

3.30

3.17

3.13

3.16 3.00

Plateau

PeopleClick Authoria

StepStone PeopleClick Authoria

PeopleClick Authoria

3.13

Cornerstone OnDemand

3.09

SAP

2.94

SAP

3.00

SumTotal

3.00

SuccessFactors

2.94

SumTotal

2.97

SAP

2.94

SumTotal

2.88

Oracle PeopleSoft

2.94

Oracle PeopleSoft

2.94

Oracle PeopleSoft

2.82

SuccessFactors

2.88

SuccessFactors

2.88

Cornerstone OnDemand

2.67

Cornerstone OnDemand

2.85

Overall

3.44

Overall

3.35

Overall

3.35

= vendors who scored in the top 5 across all 3 categories of Service = vendors who scored in the bottom 5 across all 3 categories of Service Copyright © 2010 Bersin & Associates. All rights reserved.

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Partnership: Who’s Top, Who’s Not Showing vendors with 10 or more evaluations (p<.001) Scores indicated are on a 1-5 scale with 5 high

Understands Business Needs Understands business needs

Vendor

Input to Product Development

Domain Expertise Vendor

Offers domain expertise & promotes best practices

Vendor

Offers direct method for input into development

Halogen

4.31

Halogen

4.41

Learn.com

4.29

Saba

4.06

Learn.com

4.25

Halogen

4.18

StepStone

3.98

Ultimate Software

4.03

ADP

4.00

Ultimate Software

3.94

Taleo

3.92

Saba

3.98

Learn.com

3.93

ADP

3.90

Cornerstone OnDemand

3.97

Taleo

3.87

Saba

3.90

Taleo

3.90

ADP

3.80

StepStone

3.75

Ultimate Software

3.85

iCIMS

3.67

iCIMS

3.65

Plateau

3.58

Plateau

3.65

Plateau

3.65

PeopleClick Authoria

3.57

Cornerstone OnDemand

3.61

Sonar6

3.65

SAP

3.56

Sonar6

3.54

Cornerstone OnDemand

3.61

SuccessFactors

3.55

Oracle PeopleSoft

3.42

PeopleClick Authoria

3.48

iCIMS

3.50

PeopleClick Authoria

3.39

SAP

3.47

StepStone

3.41

SuccessFactors

3.19

SuccessFactors

3.35

Sonar6

3.36

SumTotal

3.12

SumTotal

3.24

SumTotal

3.24

SAP

2.95

Oracle PeopleSoft

3.21

Oracle PeopleSoft

3.00

Overall

3.71

Overall

3.75

Overall

3.69

= vendors who scored in the top 5 across all 3 categories of Partnership = vendors who scored in the bottom 5 across all 3 categories of Partnership

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Overall: Who’s Top, Who’s Not Overall Score out of 100. Showing vendors with 10 or more evaluations (p<.001)

Service

Implementation

Product Quality Halogen ADP Learn.com Ultimate Software Saba Taleo SuccessFactors PeopleClick Authoria StepStone Sonar6 Plateau iCIMS Cornerstone OnDemand SumTotal Oracle PeopleSoft

75.53 63.75 61.61 59.93 58.58 58.28 58.20 58.15 58.14 57.89 57.77 57.76 55.11 47.35 42.19

SAP Overall

39.14 SAP 56.84 Overall

Halogen ADP Learn.com Taleo StepStone Cornerstone OnDemand Ultimate Software Saba iCIMS Plateau Sonar6 Oracle PeopleSoft SuccessFactors PeopleClick Authoria SumTotal

78.67 63.33 63.14 62.50 61.71 61.54 59.90 58.87 58.73 57.09 53.82 52.15 50.49 50.40 47.85

Halogen ADP iCIMS Sonar6 Ultimate Software Learn.com Saba StepStone Taleo Plateau PeopleClick Authoria SAP SumTotal Oracle PeopleSoft SuccessFactors

40.63 Cornerstone OnDemand 57.55 Overall

Partnership 86.58 72.50 72.02 61.26 59.31 59.23 58.50 58.00 57.91 56.36 52.17 49.02 48.74 47.55 47.40

Halogen Learn.com Saba Ultimate Software ADP Taleo Cornerstone OnDemand StepStone Plateau iCIMS Sonar6 PeopleClick Authoria SAP SuccessFactors Oracle PeopleSoft

46.72 SumTotal 58.33 Overall

82.27 78.87 74.50 73.53 72.50 72.44 67.97 67.81 65.91 65.06 62.99 61.96 57.87 57.78 55.26 55.05 66.99

= vendors who scored in the top 5 across all subcategories in the Customer Experience category indicated = vendors who scored in the bottom 5 across all subcategories in Customer Experience category indicated Copyright © 2010 Bersin & Associates. All rights reserved.

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Leaders By Target Market Listed in Order of Overall Highest Points Earned Summed Across All 4 Categories

MidMarket

Enterprise

Global Enterprise

Halogen

338.44

ADP

297.67

Taleo

280.90

Learn.com

290.28

iCIMS

282.86

Saba

280.35

Ultimate Software

282.13

StepStone

276.53

Plateau

269.72

Sonar6

268.78

Cornerstone OnDemand

265.07

SumTotal

239.19

PeopleClick Authoria

258.15

Oracle PeopleSoft

237.72

SuccessFactors

251.09

SAP

229.34

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Average Total Satisfaction by Modules Used LMS and TA 4% lower than average; PM 3% above average Total Satisfaction Performance Management

3.58

Compensation

3.47

Talent Acquisition

3.38

LMS

3.25

3.36

3.30

3.35

3.40

3.45

3.50

3.55

3.60

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TM Processes Customers Use By Vendor PM

SM

Career Mgmt

Competency Mgmt

Learning LMS

ADP

X

Cornerstone OnDemand

X

X

X

X

X

Halogen

X

X

X

X

X

Social Talent WP Compensation Collaboration Acquisition SW

X

iCIMS

X

X

X

X X

X

X X

Learn.com

X

X

X

X

X

Oracle PeopleSoft

X

X

X

X

X

PeopleClick Authoria

X

X

X

X

Plateau

X

X

X

X

X

X

Saba

X

X

X

X

X

X

SAP

X

X

X

X

X

X

X

X

Sonar6

X

X

X

X

StepStone

X

X

X

X

X

X

X

SuccessFactors

X

X

X

X

X

X

X

SumTotal

X

X

X

X

X

Taleo

X

X

X

X

X

X

X

Ultimate Software

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X

X X X

X

X

X

Copyright Š 2010 Bersin & Associates. All rights reserved.

X

Page 33


# of TM Processes Used Elicits No Effect on Satisfaction •On average, most use fewer than 2 talent processes from their provider •No relationship between number of talent processes used and overall satisfaction (except for social collaboration software – see next slide) Vendor

Avg. No. TM Mods. Used

N

Std. Dev.

PeopleClick Authoria

2.30 23

1.820

SAP

2.11 19

1.286

Cornerstone OnDemand

2.09 33

1.528

Ultimate Software

2.09 34

1.815

SuccessFactors

2.06 32

1.216

StepStone

1.96 53

1.454

Oracle PeopleSoft

1.80 20

.894

Halogen

1.80 59

1.063

Plateau

1.67 78

1.113

Saba

1.65 51

1.163

Taleo

1.45 40

1.037

Learn.com

1.43 28

1.168

Sonar6

1.39 38

.790

SumTotal

1.12 33

.696

ADP

1.10 10

.316

iCIMS

1.00 29

.000

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Page 34


TM Processes That Generate a Positive Effect on Satisfaction Only social collaboration software generates a positive effect on satisfaction

On average, social collaboration software generates an 11.4% increase in satisfaction: Impact of Specific Modules on Overall Satisfaction Non- Std. Coeff. TM Module (Constant)

B

Std. Coeff.

Std. Error

Beta

65.839

1.834

PM

1.562

1.905

SM

1.821

Career Mgmt Comp. Mgmt

t

Sig. 35.901

.000

.042

.820

.412

2.456

.036

.741

.459

-.476

3.085

-.007

-.154

.877

.478

2.615

.009

.183

.855

Learning LMS

-2.339

1.867

-.063

-1.252

.211

Tal. Acq.

-2.357

2.138

-.054

-1.103

.271

WP

5.080

4.018

.054

1.264

.207

Compensation

3.859

2.461

.070

1.568

.117

Social Coll. SW

11.421

4.128

.114

2.767

.006

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Page 35


Average Scores For All Service Categories Customer Satisfaction Service Areas 3.8 3.7 3.6 3.5 3.4 3.3 3.2 3.1

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Page 36


Agenda  The Research Behind These Results  The HR Technology and Talent Management Market  Our Findings  Implementation Stories  What Does It All Mean  More Information

Copyright © 2010 Bersin & Associates. All rights reserved.

Page 37


Implementation Failure a large aerospace and defense contractor

Challenge: •Define business and talent strategies

Solution: •Execute business and talent strategies to achieve goals

User Reach: 80,000

Anticipated Results: Industry: Aerospace and Defense

•Implement enterprise-wide HR technology to drive efficiency and effectiveness aligned with business and talent goals

Implementation Troubles: •Technology vendor lacked experience in working with large matrixed and complex organizations •Technology vendor was inexperienced in change management •Technology vendor's technology platform did not provide the integrated solution that could scale across 80,000 lives •Technology vendor's senior leadership team was inexperienced and lacked the competencies to interface with senior executives

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Page 38


Implementation Success Challenge: •Manage training globally •Move to blended delivery at the restaurant level •Track training at an evaluation level

User Reach: 180,000

Solution: •Save costs of shipping and printing costs of training materials

Anticipated Results: Industry: Quick-Serve Restaurant

•Upgrade our current Saba platform to 5.5 to better leverage their learning capabilities •By end of 2012, have all 36,000 restaurants and 1.5 million employees on Saba •Pilot Saba‟s full talent management suite in 2011

Implementation Successes: •Saba is a trusted partner •Saba offered an attractive pricing model •Saba has a strong global orientation with large scale customers

Copyright © 2010 Bersin & Associates. All rights reserved.

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Implementation Success Challenge: •Developing business strategy •Identifying talent resources to accomplish strategy

Solution: User Reach: 28,000

•Develop current staff •Hire talent with skill capabilities needed to propel organizational capability •Combination of above

Anticipated Results: Industry: Healthcare/Medical

•Fully integrated people management system leveraging performance, succession, competency and learning management as well as talent profiles, recruiting, and HRMS capabilities via ADP

Implementation Successes: •Rigorous ADP project management •Strong ADP global relationship management with a single primary go-to

Copyright © 2010 Bersin & Associates. All rights reserved.

Page 40


Implementation Success Challenge: •Increase customer satisfaction ratings •Improve leadership development bench strength •Improve employee engagement scores •Decrease costs and improve revenue

Solution: •Improve the efficiency and effectiveness of UAL‟s HR operations •Leverage technology to facilitate development of an integrated talent management strategy aligned with business goals

User Reach: 46,000

Industry: Transportation/Airline

Anticipated Results: •An increase in overall customer satisfaction scores as measured by UAL‟s Employee Courtesy Index •Improved promotion rate of internal leaders •Improved retention rate of HiPo leaders

Implementation Successes: •Short 12-week implementation cycle of Taleo‟s integrated TM platform •Robust Taleo project management and consulting expertise, particularly in the area of change management – very responsive sales and service teams •Taleo‟s „proven partner‟ approach •Taleo‟s highly configurable application avoiding costly customization fees •Taleo‟s self-service configuration eliminating costly customizations •With Taleo, UAL „ripped & replaced‟ a previous vendor with an implementation cycle 3x longer than plan, 2.5x the budget, and abandoned executive level planning Copyright © 2010 Bersin & Associates. All rights reserved.

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Agenda  The Research Behind These Results  The HR Technology and Talent Management Market  Our Findings  Implementation Stories  What Does It All Mean  More Information

Copyright © 2010 Bersin & Associates. All rights reserved.

Page 42


General Satisfaction is “Average”

We will extend our contract with this vendor We would recommend this vendor We will engage the vendor for additional services and products Overall satisfaction with vendor

.00

1.00

2.00

3.00

4.00

5.00

With overall scores hovering near average, significant opportunity still exists for HR technology providers to woo customers with improved product quality, service, implementation cycle times, and a business partnership approach. Copyright © 2010 Bersin & Associates. All rights reserved.

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Lifecycle of an Implementation

Year 0-1.5:

Excitement, (pilot)

Year 1.5-2.5: Reality Sets In (production) Year 2.5-3.5: Implementation Sticks Year 4-5:

Upgrade or vendor obsolescence

Copyright Š 2010 Bersin & Associates. All rights reserved.

Page 44


What Does Not Seem to Matter  Small companies are not “more satisfied” than large companies with these systems, largely because many of these systems are not yet fully optimized for mid-market implementations  On a relative basis, companies are more satisfied with their recruiting and performance systems than their learning and HRMS, with HRMS by far the lowest (this somewhat affects vendor ratings)

 Vendors play in different markets, so you cannot blindly compare all vendors against each other  Customer factors play a major role in success, and successful vendors know this and help customers by not “overselling” the software before the customer Copyright © 2010 Bersin & Associates. All rights reserved.

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Keys to Success

Strategy: Clear alignment on business and talent strategy “philosophy” Gain stakeholder, executive, and business buy-in to the whole program.

Feature Roadmap and Business Case: Detailed analysis of use cases, existing processes, and urgent needs, with clear and reasonable priorities. Build total business case and gain budget.

Integration and Adoption Needs: Assessment of your risk profile, integration needs, support needs, and existing vendor infrastructure. Evaluate training and change management needs. Update budget.

Short List, RFP, Vendor Selection:

Implementation Team and Governance:

Selection of the “short list” and vendor by vendor demos and analysis

Enablement of “total implementation” team, with leadership, governance, IT, and line of business support

RFP and Vendor Selection

Implementation and Rollout: Building a total partnership with your vendor and their implementation team. Change Management. Communications. Training.

Where Bersin can help… Guidance: While you must evaluate the vendors‟ feature sets and roadmap against your use-cases and needs, this is not a process of “buying great features.” Most buyers only use a fraction of the capabilities of the software and find that “ease of use,” “configurability,” and “vendor partnership” are the key drivers of success.. You are truly looking for a “partner.”

Copyright © 2010 Bersin & Associates. All rights reserved.

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Understanding the Providers  All the providers in this market are high-quality software companies with strong technical teams  Each come from different roots: different application heritage, different technology base, and different levels of experience  Financial strength, strong leadership team, and a focused market approach create long term success  All providers must be able to invest continuously because of the rapid changes in the market  Get to know the provider executives and service people on your short list, not just the sales people

Copyright © 2010 Bersin & Associates. All rights reserved.

Page 47


Bottom Line: What Creates Success?  Develop a well-aligned 3+ year strategy  Take the time to understand existing talent processes and develop use-cases for success  Select a provider based on the features you need, not the ones you think you need  Focus on “business partnership” analysis during the RFP  Find a provider focused on your industry, your size and scale Copyright © 2010 Bersin & Associates. All rights reserved.

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Agenda  The Research Behind These Results  The HR Technology and Talent Management Market  Our Findings  Implementation Stories  What Does It All Mean  More Information

Copyright © 2010 Bersin & Associates. All rights reserved.

Page 49


For More Information and Help •

Research: Largest and most up-to-date library of solution provider and vendor information • • •

• •

Tools: Talent Management systems requirements RFP and use cases Consulting: • •

Talent Management Systems 2010 Learning Management Systems 2010 Talent Acquisition Systems 2010

Talent management strategy and roadmap development Planning, requirements development, and systems selection

Please contact us: •

info@bersin.com

http://www.bersin.com


Appendix

Copyright Š 2010 Bersin & Associates. All rights reserved.

Page 51


Product Quality Satisfaction How satisfied are you with the product quality (all vendors)?

Performance

Features to meet my needs

Ease of use

Configurability

.00

1.00

2.00

3.00

4.00

5.00

Showing vendors with 10 or more evaluations Source: Bersin & Associates, 2010.

Copyright Š 2010 Bersin & Associates. All rights reserved.

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Service How satisfied are you with the service?

Process to communicated support issues

Follow through on service tickets/requests

Responsiveness on service tickets/requests

.00

.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Showing vendors with 10 or more evaluations Source: Bersin & Associates, 2010.

Copyright Š 2010 Bersin & Associates. All rights reserved.

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Implementation How satisfied are you with the implementation of your vendorâ&#x20AC;&#x;s technology?

Consulting support

Length of time to implement

Ease of data integration with other systems

.00

1.00

2.00

Showing vendors with 10 or more evaluations

3.00

4.00

5.00 Source: Bersin & Associates, 2010.

Copyright Š 2010 Bersin & Associates. All rights reserved.

Page 54


Business Partnership How satisfied are you with the business partnership?

The vendor offers valuable domain expertise and promotes best practices The vendor offers direct method to provide input into product development The vendor understands our business needs

.00

.50

1.00

1.50

2.00

Showing vendors with 10 or more evaluations

2.50

3.00

3.50

4.00

4.50

5.00

Source: Bersin & Associates, 2010.

Copyright Š 2010 Bersin & Associates. All rights reserved.

Page 55


Overall Satisfaction How satisfied are you overall?

We would recommend this vendor We will extend our contract with this vendor We will engage the vendor for additional services and products Overall satisfaction with vendor

.00

.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Showing vendors with 10 or more evaluations Source: Bersin & Associates, 2010.

Copyright Š 2010 Bersin & Associates. All rights reserved.

Page 56


Number of Employees and Overall Satisfaction Score Showing vendors with 5 or more evaluations

6

CornerstoneOnDemand Halogen

5

Overall Satisfaction Score /5

iCIMS Internally developed

4

Learn.com Plateau

3

Saba Sonar6 Stepstone

2

SuccessFactors SumTotal

1 Taleo Ultimate Software

0 0-99

1002,499

2,5004,999

5,00014,999

15,00024,999

25,00049,999

50,00074,999

75,00099,999

100,000+

We did not detect any relationship between satisfaction and number of employees the provider serves. Copyright Š 2010 Bersin & Associates. All rights reserved.

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Years With Provider and Overall Satisfaction Showing vendors with 5 or more evaluations

5.00 Halogen

4.50

Average Satisfaction Score

Towers Watson PageUp People Cezanne Software Learn.com

4.00 Stepstone Sonar6

3.50

iCIMS Plateau

SuccessFactors Salary.com CornerstoneOnDemand

Saba

Silkroad

3.00

Ultimate Software SumTotal ADP PeopleClick Authoria HRSmart Oracle PeopleSoft

Kenexa

Internally developed

SAP

Other

2.50

2.00

1.50 1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Average Years with Provider

We did not detect any relationship between satisfaction and the number of years of service with the provider. Copyright Š 2010 Bersin & Associates. All rights reserved.

Page 58


Overall Satisfaction by Willingness to Recommend Showing vendors with 5 or more evaluations 5.00

Average Willingness to Recommend Score /5

Halogen 4.50

ADP Salary.com Saba

4.00

Towers Watson PageUp People Ultimate Software

Taleo

Stepstone iCIMS

Learn.com Cezanne Software

HRSmart

Plateau CornerstoneOnDemand PeopleClick Authoria

3.50

SumTotal

SuccessFactors

Kenexa

Silkroad Sonar6 3.00 Oracle PeopleSoft

SAP

Other

2.50 2.50

3.00

3.50

4.00

4.50

5.00

Average Overall Satisfaction Score /5

The greater the satisfaction with the provider, the greater the customerâ&#x20AC;&#x2122;s willingness to recommend that provider. Copyright Š 2010 Bersin & Associates. All rights reserved.

Page 59

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