The Great HCM Debate

Although the HR Technology® Conference’s Industry Analyst Panel switched formats this year to a debate between two industry experts standing behind lecterns instead of the four-member seated panel of conferences past, it featured the same occasionally heated and always-fascinating dialogue between folks who live and breathe this stuff. Moderator and conference co-chair Bill Kutik (who also lives and breathes this stuff) kicked things off by asking the two debaters, Gartner managing vice president Jim Holincheck and Knowledge Infusion founder and CEO Jason Averbook, to define “strategic human capital management.”

“It’s plain and simple–strategic HCM helps companies execute their business strategy,” said Holincheck. “Much of what passes for talent managent has focused on automating existing processes. But that’s not strategic. What you want to be thinking about is, what is my company’s business strategy, and how can talent management help me address that?”

“It’s certainly not about buying technology,” said Averbook. “It’s about answering the question ‘Are we going to buy or build our talent and how are we going to do it?’ It’s a business process, not an HR process.”

A bit later on during the debate, Averbook noted that the days of companies buying software licenses for HR “super users” are long gone. ” “Back in the day, we implemented HR systems for HR users. Today, the consumer is no longer the HR department, it’s the workforce. We want everyone in the company to use these tools,” he said, adding that meant HR had to focus on pushing the new systems out to the workforce and ensuring they’re intuitive and user friendly, much like Amazon and Facebook.

Kutik asked both men to share their thoughts regarding Oracle Corp.’s new Fusion system.

“I see a lot of Gartner clients pursuing a ‘coexistence strategy’–they’re using Fusion on top of their existing Oracle products rather than making plans to install a new system,” said Holincheck.

Regardless of whether Fusion meets expectations, Averbook said, it will still give Oracle a big advantage simply because of the integration factor. “We tell folks to go look at best-of-breed solutions–well, what good is best of breed if you don’t have a way to tie those systems together? If you don’t have a foundation to do that, then best of breed is a waste of time.”

“You don’t need a single vendor to tie it all together,” said Holincheck.

“I’m not saying you need a single vendor, but you do need a strategy,” replied Averbook.

Further on, Averbook castigated vendors for luring customers to SaaS solutions with the “false promise” that they won’t need IT support. “The market’s screwed up because vendors are telling HR clients this–our customers encounter failure when they have no IT support for their SaaS solutions.”

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