Posts
published February 2008
Integrating Talent Management Systems Strategically by Leighanne Levensaler
With the increased emphasis on talent management, companies are looking to integrate at least some of these systems, while adding solutions for other processes, such as workforce planning, succession planning, recruiting and competency management. In response to the interest, software vendors of all types are scrambling to pull supporting modules into integrated suites.
When it comes to HR-related systems, most companies have a tapestry — or crazy quilt — of systems that have been built, bought and implemented over many years. HR technology infrastructures can include payroll, HRMSs, LMSs, applicant tracking, compensation and benefits, and performance management systems — all of which have different levels of maturity and are commonly owned by different parts of an organization.
Talent managers involved in setting their company's integrated talent management systems strategy have many good reasons not to leap into purchasing decisions. The market offers many options, with different strengths, maturity and levels of integration. Purchases should fit the company's IT architecture with an acceptable range for risk tolerance. How the organization governs talent management also comes into play.
There are major considerations involved in developing this critical system strategy. If skipped, absence of these important and often soul-searching steps will lead to confusion with the wide variety of systems, architectures, delivery models and approaches available.
Start With Business Problems
The first step is to identify business problems the organization wants to solve with an integrated talent management system. Problems typically fall into one of three hierarchical categories:
1. Automation. By implementing these systems, the organization will reduce the cost of errors, save time, reduce paper and better meet compliance requirements.
2. Process improvement. The company's goal is to better implement existing processes and perhaps even improve them because the software will facilitate a more integrated and complete, data-rich approach to a given process.
3. Business and talent breakthroughs: These systems will empower the organization to execute new tasks.
Focus on Talent Processes First
Recent research shows the greatest business results come not from HR systems, but the underlying processes. In fact, Bersin & Associates has identified the Top 22 processes (out of 62 studied) that drive highest levels of business impact. These include coaching; development-based performance management; the use of strategic competencies in recruiting, performance management and leadership development; implementation of skills and competency-based workforce planning; and creating personnel and organizational goals that align with current and strategic business goals.
These processes are not dependent on software solutions. Most are more dependent on company culture, business and organizational maturity. If the investment in talent management systems is to drive dramatic business impact (and positive change), examine and prioritize talent management processes first.
Once the talent manager determines which processes are most important to business success and how they should be prioritized, he or she will be better prepared to evaluate the available options and set expectations for future investments.
When examining current processes, also consider "breakthrough processes." Up to now, most of these processes have not been practical to achieve. But now, new, integrated technology options put them in reach. These include:
* Integrated performance and learning.
* Integrated performance management and
succession planning.
* Pay for performance.
* Integrated recruiting and performance
management.
* Career planning.
