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End To End (August 25, 2000) If we were really good at generating buzzwords, we'd probably call it e2e. The search for an End To End Recruiting solution, coupled with the extraordinary claims of its discovery remind us of nothing less than prospectors' cries of "There's gold in them thar hills" from an earlier era. On a very profound level, there's no such thing as an End to End Solution. For some reason, we can't stop thinking about a circle of elephants, about a dozen, heads facing out, rear ends touching at the center of the circle. That's as close to an e2e solution as we can imagine today. Managing the assembly, development and maintenance of a workforce simply isn't a 'one size fits all' proposition. Sources change. Like mining and refining any scarce resource, workforce development requires a constant surveillance function. Once a good source is identified, either the word gets out (driving price up and availability down) or the source dries up on its own. Sustained efforts to develop a supply of Human Capital requires a team of scouts; they may or may not work on the net. Once the supply points are identified, the scouts turn their work over to the settlers who build relationships within the Human Supply chain. Finally, the settlers turn their work over to processors who match individual elements of the supply chain with work requirements. While it is possible to automate much of the administrative overhead in the Human Capital Acquisition process, we see the same problems here that other Enterprise solutions create. Good software development tends to bind the things it automates. In other words, the best recruiting systems leave a lot of room for ad hoc discovery while the best software tools tend to preclude it. The notion that one or the other of the vendors in our industry are currently able to offer a comprehensive staffing solution to any customer is, um, balderdash. The best we've seen offer some functionality to some customers. This is the reason that RFQ processes end up with the most unlikely competitors as finalists. There really is no one answer.
- John Sumser © TwoColorHat. All Rights Reserved.
From today on, any executive in a healthy, growing company will inherit an additional set of stakeholder responsibilities: the population of potential employees. From ad hoc team development to managing a steady state headcount, today's executive must understand the impact of each decision on the availability of the labor required to maintain the status quo, to follow through on growth plans or to tackle tough strategic and innovative projects. No longer can an executive assume that "if we need them, they will come."
The early adjustments to this new reality have been somewhat predictable: Doing more of the same old thing only faster and harder. Job Boards, which will always serve a useful but specific function, are little more than a modest upgrade to the newspaper advertising systems that preceded them. Traditional 3rd party staffing companies have invested heavily in web endeavors and automation to the desktop. Their core methods and assumptions remain unchanged and their results show it.
The real change is beginning to take place in corporate boardrooms, well outside of the province of traditional players. Recruiting departments within functional groups, once limited to engineering and IT organizations, are spreading into manufacturing, sales and marketing departments. Pure project based staffing, an invention of technical skunk works groups, is expanding in influence as the Free Agent marketplaces take shape. Again, these remarkable adaptations simply extend the old metaphors and management assumptions.
The real 21st Century management challenge will be identifying, refining, processing and guaranteeing the availability and quality of the labor supply. As a new stakeholder in corporate accountability, the universe of potential employees is distinctly different from the other stakeholder groups in some key ways:
In other words, the incorporation of Potential Employees as a sixth stakeholder group requires a dramatic rethinking of each of the existing relationships. None of the answers are immediately clear. It is clear, however, that Marketing departments are about to acquire an entirely new level of complexity. 21st Century Management will require a more intimate, value-oriented consideration of all stakeholders. The challenge includes outreach to groups of people who, until recently, were clearly considered 'outsiders'.
- John Sumser © TwoColorHat. All Rights Reserved. Seminar In A Box
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Why do you suppose that the major web players are pushing the "instant
messaging" issue so hard? It's not because they have a soft, mushy feeling
that standards improve the value of your life. It's certainly not because
they want to find something else to give away. We have a hard time
believing that our family relationships are at the root of the issue. If
they can't build easy to use software, why would they care about instant
communications?
It's a branding play, period, end of question. The object of the web
game has become brand awareness, for the time being. With large portal
strategies at the end of their useful life, the majors have moved on to
bigger, better and more expensive tactics. Just this morning, Sun
announced a plan to give away office software over the web? Why? To boost
sales of their servers by keeping the brand name in front of users on a
moment to moment basis.
In case you missed it in the last paragraph, we'll say it again:
In our business, there is a decided uptick in the volume of press
releases flying around. Taken from a distance, it looks like typical 'mine
is bigger than yours' macho posturing. Tiny bits of news are shredded and
spun to make a particular service seem bigger, better, more widely
recognized.
Some of the players in our industry are responding in interesting ways:
There appear to be two broad streams: profiling and text search
databases. Slowly emerging is a class of analytical tool (Peoplesoft and
Icarian) that act as a strategic overlay on the profiling/resume
management tools. Unfortunately, profiles, analytics and resume databases
are just enough to tell you how bad the problem is. We can't find anyone
who is working on the next generation of the problem.
With deeply committed technical groups working furiously in the dark
air-conditioned development rooms, it's surprising that there's no intra
industry collaborative forum. After all, the distinctions between
'platforms' are nearly inconsequential. Once the 'perfect' profiling,
analytics, and database management tools are complete, we'll have just
enough tooling to understand that we're in trouble. We ought to hurry up
and get there (and, no, this doesn't mean that HRXML is a good idea).
At its roots, the problem isn't technical. And, that's the rub. All of
the current development efforts are so profoundly rooted in history that
the possibility of real innovation is slim. No matter how hard you try to
improve on the classified advertising model, it requires candidates who
are in the market for jobs. No matter how much data you extract from
benefits systems and payroll, it's still all about traditional definitions
of the firewall.
No matter how hard you try to reshape a candle, it will never become a
light bulb.
Increasingly, we see a broad market opportunity from someone who comes
in from left field. Large scale, data mining, direct marketing companies
are, in some ways, closer to the solution than anyone in our space.
Attracting and maintaining ready pools of potential talent involves
touching lots of people who are not in our current systems. It means
delivering real value to that group and building their loyalty in the way
that traditional (non-internet) networks are built. It means knowing each
individual in the network well enough to anticipate their moves. It
requires experiments that take longer than a job board transaction.
Recruiting has become a strategic differentiator. As long as our
industry only offers reactive tools, we will be guilty of dragging our
customers to their extinction. What's required is intense Research and
Development in areas that currently get no investment.
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