openSAP An Introduction to SuccessFactors Solutions

WEEK 3, UNIT 1

00:00:09 Hello and welcome to week 3. Week 3's topic is Perform, Reward, and Learn.

00:00:15 My name is Steven Gregory. I'm a senior solutions consultant within the HCM line of business

supporting the SuccessFactors product suite.

00:00:22 My role is really supporting sales activities primarily in the northeast U.S., and all the sales

activities around things like product demonstrations,

00:00:32 functional responses, and other activities related to sales of the SuccessFactors application.

00:00:40 In week 1 that you've been through you learned about HCM and why it matters to

organizations. That is, Human Capital Management and why it matters.

00:00:49 Last week, in week 2, we took a look at getting started in SuccessFactors, where we covered

topics like recruiting, recruiting marketing, as well as onboarding.

00:00:59 In this particular week, we're going to learn about things like performance and goals and

calibration around those,

00:01:07 the ability to then reward people based on those performance ratings, so total rewards and

compensation,

00:01:13 as well as succession and development programs, so the ability to identify successors and

bench strength within an organization.

00:01:20 And then we'll conclude with areas of learning, specifically around talent development, external

learning or external development, as well as compliance-related learnings, so for regulated

industries.

00:01:33 So what we're going to start with now...this particular unit is unit 1 around performance, goals,

and calibration.

00:01:40 Performance processes, performance goals, and calibration, can be used to drive value within

organizations. Not just from a compliance perspective where we're checking a box, but a true

value in organizations.

00:01:55 We do this through optimizing employee performance. Where organizations are utilizing this

effectively there's been recognized a 36% lower

00:02:06 employee turnover rate due to employee engagement and them being engaged in the

performance process.

00:02:14 Increasing organizational performance. We've noted a 25% higher revenue per employee for

organizations that are aligning their strategic objectives through their goals and performance

initiatives in their organization.

00:02:31 By increasing engagement and performance, we've seen 10% higher employee engagement

in these organizations,

00:02:37 so employee engagement scores have increased due to the development needs and other

areas that employees feel nurtured within those organizations.

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00:02:49 And then when it comes to things like innovation, innovations and goals and performance,

again we've seen a lower turnover rate, typically around 17%,

00:03:00 for those organizations that have higher numbers of employees that actually complete their

performance reviews.

00:03:06 So people feel they're being measured and rewarded appropriately when that process is

completed.

00:03:12 So for organizations that aren't optimizing these performance, rather than discontinue those

traditional performance management processes,

00:03:21 performance and goal management programs need to change to better meet the needs and

challenges of today's workplace

00:03:27 and drive organizations forward in an increasingly competitive and changing market.

00:03:34 Some of the challenges, so some of the challenges that we've seen in realizing those benefits

that we've just talked about, really come in these areas.

00:03:44 We've heard from organizations that 95% of their workforce does not understand the company

strategy and the goals for the overall company.

00:03:53 And this is largely due to paper-based systems or really no performance management system

in place.

00:03:58 This also means that 84% of the companies aren't using the workforce to their full potential. So

they're not being able to set effective goals and be able to measure them in terms of

attainment.

00:04:10 Also we've seen 50% of the average workforce capacity is wasted on non-productive type of

work due to unclear, misaligned, or maybe nebulous objectives that are being assigned.

00:04:23 Also, in the workplace, up to 80% of your global workforce could be categorized as millennial

by the year 2016.

00:04:33 And because of that, many companies are actually increasing their investments in things like

social and mobile technologies.

00:04:40 While most companies still have annual review, more than half of those companies tell us it's

not an effective use of their time.

00:04:48 Many of the traditional approaches to performance management fail to account for the

profound ways in which the workplace has changed,

00:04:56 including the proliferation of matrix to organizational structures and team-based assignments.

00:05:02 It's not uncommon for performance and goal management programs to get bogged down in all

that paperwork.

00:05:07 That leaves managers little time to help employees really improve their performance and meet

or exceed their goals, or even be developed in the roles that they're in.

00:05:17 So many challenges to getting to those measurable benefits that we've talked about.

00:05:24 SuccessFactors Performance & Goals is a comprehensive suite that includes reporting and

analytics, as well as access through things like mobile applications,

00:05:35 and supports this new paradigm that we've talked about with the following features and

activities.

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00:05:42 So when it comes to intuitive goal development and management, we provide a SMART Goal

wizard. SMART is an acronym for specific, measurable, attainable, relevant, and time-bound

goals.

00:05:54 So the ability to set goals that are meaningful and relevant and attainable for the organization.

00:06:03 In support of that, we provide a library of over 500 SMART goals that can be utilized. Really,

it's the starting basis for a lot of the goals that are being established for employees.

00:06:14 As well as the ability to then access, update, and provide status information and whatnot

through mobile capabilities, the ability to access this through a mobile feature.

00:06:25 We can then take those goals and feed things like engaging performance reviews.

00:06:30 Employees feel engaged because we provide tools like writing and coaching assistance within

those applications, so the ability for managers to create meaningful feedback and meaningful

coaching advice around the things they're being measured on.

00:06:43 But also around compliance and things like legal checks or legal scans to ensure that

managers or individuals are not writing items that may have legal ramifications later on, so

we're looking for legal terms and things in there.

00:06:58 There's also the ability for managers to rate teams in a team rater mode, where we can

holistically look across the team and understand what the ratings are across the team as

opposed to rating somebody in a silo or in and of themselves.

00:07:15 As well as things like our Touchbase capability, which again is another mobile feature that

allows managers and employees to touch base periodically on the goals and tasks and

activities that they have assigned to them

00:07:28 and then be able to pull that Touchbase activity or comments into a performance review for

that assessment that's being done.

00:07:37 We also provide 360 assessments and feedback to continually develop people, to be able to

socialize that review process.

00:07:45 In other words, to allow people to provide peer-to-peer feedback or feedback in the context of

a 360 or 180 type of review around that employee.

00:07:55 That can include a variety of sources, both internal and external to your organization. So

internal peers, direct reports, and other members within your organization.

00:08:06 But also external constituents that an employee may interact with on a regular basis can be

invited and participate as part of those feedback sessions.

00:08:16 And this provides very comprehensive assessments around an individual where we can

identify gaps and strengths and make sure we're developing both the gaps and the strengths

within an individual as we go forward.

00:08:31 Lastly is the ability to do accurate calibration, so the ability to roll up those performance

assessments into essentially a bell curve distribution of ratings

00:08:42 and be able to compare visually, manager to manager, in terms of are managers reviewing or

assessing people consistently across the board.

00:8:55 So that if somebody has a high performer that they consider a high performer...manager A

considers that person a high performer, that manager B uses the same criteria to identify high

performers within their organization.

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00:09:10 That allows for objectivity across those departments and it obviously can also impact retention.

00:09:16 We're clearly rewarding or identifying the individuals that are having the biggest impact or are

the high performers within the organization.

00:09:26 So this is the complete suite of applications. What I'll do now is focus on some of this in a

demo and give you a glimpse into the performance and goals process, as well as calibration

within the SuccessFactors application.

00:09:41 So I'm going to go ahead and open up my module here. I'm logged in here as a manager,

Carla Grant.

00:09:48 Carla has a team of individuals that report to her and she can have insight into where they may

be behind on certain activities, where they need to be nudged along in certain processes.

00:10:01 So Carla has the ability to understand, for example, Wilma, where she might be behind on

certain activities and then can nudge her through an e-mail or some other process.

00:10:11 These activities that are showing here may be goals or other activities or task due dates that

are coming due for that particular individual that Carla may need to, as I said, nudge people

along in that process.

00:10:28 If we start with the...if we look at the performance process, it typically is looked at in three

different phases.

00:10:35 There is the goal setting process, where we capture the goals or the performance objectives

for a particular individual at the start of the process.

00:10:45 Then there's often times the ongoing status and reviews and updates that we do throughout

the cycle.

00:10:53 And then at the end of the process, the third step would be to look back now and understand

how that individual did on those performance goals and rate them in a performance review

process.

00:11:04 So we'll look at those three phases now. We'll start with goal setting. I'm going to access

Carla's goal plan because although Carla is a manager, she also has a goal plan of her own.

00:11:15 We support goals from a variety of different sources. Goals can be cascaded, so we'll see the

cascading feature, but goals can be cascaded down to an individual.

00:11:27 A goal can also start from the bottom up. It can be set by those individuals and then can be

aligned through the organization.

00:11:35 Or—I like to refer to it as the middle out—where you have a manager setting a goal for

themselves, aligning it to an organizational objective, and then cascading it down to various

individuals. So we'll actually go through that process here as Carla.

00:11:49 So you can see Carla has goals on her plan already. She has a goal here to meet a target of

$5 million in revenue for resellers.

00:11:58 That has been aligned up to her manager's goal to increase market share. And she also has

cascaded that goal down to the people who report to her, so these individuals are part of

Carla's team.

00:12:11 So that goal has already been established. What I want to do, though, is start a new goal. So

we're going to create a new goal and in this, we will see things like the SMART Goal wizard as

well as the ability to pull from our library of goals.

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00:12:26 So as I mentioned in the slides up front, SMART is an acronym for specific, measurable,

attainable, relevant, and time-bound.

00:12:34 And we at least want to have goals that meet that criteria so that we are assured people are

working on meaningful objectives that they can attain that we're going to measure them on at

the end of that process.

00:12:48 Goals can be categorized into various business categories for things like balanced

scorecarding and other reporting processes that you may do.

00:12:58 So Carla can choose the category that she wants to put this goal in and then as she starts to

type certain keywords, the application will pull up goals from the goal library as a template and

allow her to utilize that as a starting point.

00:13:12 She's typing in the word “service”, and maybe part of her mission here is to achieve a certain

customer sat survey or rating.

00:13:22 She can pull in that goal as a template and then fill in the various details around that goal. So

she's pulling something that is specific to her and also something that she's responsible for in

her organization.

00:13:36 So let's say she wants to get a 95% customer sat survey rating for the year by 12/31, by the

end of the year.

00:13:49 You can see now I can just step through these particular processes here. The next step then is

to say how are we measuring that. So obviously this is customer satisfaction, so there will be a

survey score.

00:14:00 We can put in whatever that measure is and we certainly support that and our goal library can

automate that whole process.

00:14:10 From an attainment perspective, is this goal attainable? That's somewhat of a rhetorical

question.

00:14:16 We do want the individual that is creating the goal to basically consider the other goals and

activities and deliverables that they have in their work queue

00:14:28 and tell us whether or not this is truly an attainable goal, this is something you truly can attain.

So it's more of a pause and a rhetorical question that we're asking the individual to identify.

00:14:42 We also want them to ensure that it's relevant. When the individual tells us that the goal is

relevant, as Carla does in this case,

00:14:49 she can then align that goal to either one of her manager's objectives or maybe to an

organizational or group objective where people are sharing a responsibility.

00:14:59 So maybe everybody is responsible for that customer sat survey, for example. That can be a

group goal.

00:15:06 So in this case, a customer sat survey will help our revenue and profitability going forward so

that's her manager's goal that she's going to align this to.

00:15:17 And then from a time-bound perspective, we need to ensure that this is something that is time-

bound, and it's typically going to default to the performance cycle.

00:15:27 So that is essentially the minimum we would expect for a particular goal. Now, there is the

capability to capture a lot more detail, so quarterly milestones and tasks and objectives that

may need to be attained as part of this.

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00:15:43 All that detail is available and those are the types of things that you can configure in the

application when the application is implemented, so that's part of what the Professional

Services team would work with you on.

00:15:54 So as a minimum, we have what we need for a particular goal. And you'll notice that this

particular goal...so we're going to scroll down until we get to the customer types of goals here...

00:16:08 And you'll see that that goal is aligned to her manager. This is the goal we just created and it is

aligned up to her organization, but there is no alignment underneath her.

00:16:22 So in this case, Carla could take a goal like this and actually cascade it down to the folks within

her organization. So we've selected that goal.

00:16:31 We can now cascade that down either to the people that directly report to her or, in the case of

a matrix organization, she may choose to cascade this to folks who are part of her matrix

organization

00:16:46 or, potentially, even the ability to cascade it down to... depending on her access rights, she

could cascade this down to everybody in a particular division or department or location if it

were relevant.

00:16:58 She can select all those employees and cascade this goal down to this various individuals.

00:17:05 So this is a way that we can start that process by capturing a meaningful goal and then

aligning that throughout the organization.

00:17:17 From a status perspective, if we move into kind of the second phase once we have our goals

established,

00:17:23 we can now start to capture things like status information and other reports about what's

happening throughout the performance cycle with those particular goals.

00:17:34 So we have a variety of ways that we do this. One way is a very simple status report where we

pull all of Carla's goals into a status report and allow her to give us a minimum of information

around that.

00:17:48 What's the probability of success of that particular goal and the level of effort required to do

that.

00:17:54 That status report can be something that's updated maybe on a monthly or quarterly basis that

then can be utilized to understand, from an execution perspective, a goal execution

perspective,

00:18:07 where we are as an organization with our goals and our alignment. So you can see we use

that red-yellow-green metaphor here.

00:18:15 Carla has a goal that's in a red state, so she can drill down that alignment to understand where

are the areas where this goal might be slipping.

00:18:25 Her direct report Marcus has a goal in a cautionary state. We can continue moving up and

down that structure, the alignment of that particular goal, to understand exactly what's

happening with that goal.

00:18:36 And then at any time through the process, get to the status information and details that are

behind this. So what is it that's causing that goal to be missed and how can we be proactive

about those things now?

00:18:50 In the past, a lot of organizations wouldn't know until it was performance review time whether a

goal was going to be missed or not. This gives us proactive insight into that process.

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00:19:01 So we have our goals. We have them aligned. We have been capturing status information

throughout the performance process. Next it may be time to measure performance on our

team, on the individuals within the organization.

00:19:17 We provide a variety of tools in this area, one of which is a team overview or a manager

dashboard that will show milestones in terms of where everyone is with their performance

review.

00:19:31 This is a workflow, a typical workflow that we see. This is, again, all configurable within the

application.

00:19:37 But typically there is an employee self-assessment, a manager evaluation, and then a 1:1

meeting and signatures. And we can see where each of Carla's direct reports are in that

process.

00:19:48 So these two have completed their self-assessment. Richard is still in progress. And I, as

Carla, still need to rate Richard in this process here.

00:19:58 Notice also though that we can solicit feedback from other individuals. So one of the ways we

can socialize this or get further detail is to allow other people to provide comments and

threaded discussions around somebody's performance.

00:20:16 So Carla can ask other peers as well as people even outside of her organization for some

feedback about this particular individual

00:20:25 and then utilize that information in the performance review such that when we review Richard,

we'll have his performance review—I'm going into that review now—

00:20:35 you'll see that there is supporting information that will include these feedback requests that

we've just provided as well as Touchbase comments and mobile comments that have been

captured throughout the cycle.

00:20:47 Any performance journal notes and other kinds of status information that has been captured

throughout the year will all be part of that supporting information that's driving that.

00:20:56 So Carla can come in and asses Richard, but again be able to assess him in relation to the

feedback that she's received from other individuals.

00:21:08 So that feedback can be utilized to provide commentary for Carla when she's making her

assessment of Richard, in this particular example.

00:21:19 And then lastly, when we complete that process, often times the glue or the module that sits

between performance and compensation is something we call calibration.

00:21:34 Calibration we'll show in a couple of different ways, but a typical performance calibration is the

ability to roll up all of those manager assessments

00:21:46 by division, department location, and understand the distribution of ratings, as well as being

able to set things like what our guidelines are.

00:21:56 So we would expect to have 70% of our employees in meets expectations, versus 10%

exceeds and 10% outstanding. These are typical guidelines that you might see or set for

yourself.

00:22:09 And then within that, you can see the actuals. So we've actually got a few more folks that are

set as exceeding expectations.

00:22:17 So now armed with this information, we can drill into those performance reviews and analyze

folks side by side to understand their overall performance ratings, to understand any of the

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details behind this.

00:22:31 We can filter out and just look at certain managers or certain divisions or departments and

ensure consistency across the ratings that are being done across the different managers in the

organization.

00:22:45 We can also utilize this potentially to affect performance reviews. So let's say in this

determination we decide that Marcus is not an outstanding performer.

00:22:55 We can do a couple of things. We can go back and edit that performance review or send that

performance review back to the manager for process.

00:23:03 In some cases we may choose to override that. So depending on your processes internally,

you can choose to override that rating and affect the performance review.

00:12:14 This becomes a working session where you can have managers collaborate or sit together and

understand the overall ratings and where there might need to be adjustments made across

those ratings in that process.

00:12:29 So we can either do the adjustment here or allow Marcus's manager to actually make that

adjustment through the actual performance review.

00:23:37 If we override it here, when we finalize this particular session it will write back to that

performance review and override that particular session.

00:23:46 So what we've done is set goals at the start of the process, aligned those goals throughout the

organization to ensure that people are working in their day-to-day activities on the things that

matter to the business

00:23:58 so that there is alignment to those strategic objectives.

00:24:02 We can then capture status information around those goals. And at the end of the process,

create those performance reviews where we're rating those different individuals.

00:24:42 And then prior to going into a compensation or rewards process, we can then roll up all those

performance scores and understand the overall distribution of ratings

00:24:24 and potentially even make adjustments where needed, where we may have some managers

that are rating everybody too high or, conversely, rating everybody too low in our organization.

00:24:33 Again, ensuring consistency across those ratings and truly building a pay-for-performance

culture as you go.

00:24:41 That is the end of this particular session on Performance & Goals and Calibration.

00:25:47 In the next session we're going to learn about Total Rewards & Compensation, so how we then

take those performance scores and determine merit increases and other elements of

compensation for those individuals.

00:25:00 Thank you for attending this unit today.

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WEEK 3, UNIT 2

00:00:09 Hello and welcome to week 3, unit 2. My name is Steve Gregory. I am a senior solutions

consultant within the HCM line of business, focusing on the SuccessFactors applications.

00:00:20 In this unit, we're going to be discussing the SuccessFactors Total Rewards & Compensation

applications.

00:00:27 Compensation in general is becoming more complex for many organizations. But at the same

time, it's becoming more transparent as well. Organizations need more transparency in their

process.

00:00:39 Some of the trends that we've seen in organizations in the areas of compensation and total

rewards are the increased use of benchmarking for making compensation decisions.

00:00:51 Many organizations are using geographically adjusted pay ranges, most often based on the

local cost of labor, and they're using it as benchmarks for their pay scales and pay ranges.

00:01:05 Nominal base pay increases...there's a lot less emphasis being placed on increasing base pay

and more emphasis being placed on distributing gains via bonuses or rewards that reward

performance.

00:01:21 Goal attainment bonuses that are that also based on both individual and organizational goal

achievement. So being able to reward people on individual and company goal achievement.

00:01:34 In addition, new regulations, Regulations that require greater analysis of the data and

reporting, in many cases, of that data back to regulatory organizations.

00:01:46 And then communications of that pay information is becoming increasingly transparent to

many organizations.

00:01:54 More and more companies are sharing the pay range or pay band data for a particular job not

only with the managers, but also with employees in those positions.

00:02:04 So giving more transparency into the process is a trend that organizations are moving to.

00:02:13 Some of the business challenges that organizations are facing in the areas of compensation

and ultimately around their talent according to a Bersin study is complexity, increasing

complexity.

00:02:27 Most organizations have salary and some type or many different variable pay types or

programs and other incentives that they're trying to manage in single processes.

00:02:38 They also desire fairness in rewarding employees relative to their performance—their

individual performance but also department and other organizational goals.

00:02:49 Finding and keeping top talent means that they need to better compensate those that are

considered top talent but also those that they're trying to attract.

00:02:58 So more...competitive, is the word I'm looking for. More competitive compensation for the top

talent that they're trying to retain and also attract in an organization.

00:03:14 And many of these organizations that Bersin studied have different vendors or no packaged

solution in the areas of performance and compensation.

00:03:24 Meaning, therefore, implementing a pay-for-performance culture is extremely difficult in those

organizations.

00:03:33 Given these business challenges, coupling those with the technical challenges a lot of

organizations face, they're starting to experience a lot of inconsistencies across the

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organization.

00:03:45 So they have a need for a comprehensive, integrated approach but often times keeping these

disparate systems and processes in sync is extremely difficult.

00:03:55 And this is really due to the manual process that a lot of organizations go through. Distributing

spreadsheets manually, keeping track of that information, consolidating that,

00:04:06 this is how many organizations are managing their compensation programs currently, which is

resulting in many, many errors and, in some cases, incorrect payments.

00:04:18 And therefore many organizations really want that integration with the HR information systems

to make sure we have the latest organizational structure and other types of things,

00:04:27 as well as their performance systems to make sure that we're truly rewarding the high

performers.

00:04:32 And more and more companies really need help in just the fundamentals of managing the

various bonus pay plans that they have across their companies.

00:04:45 SuccessFactors Total Rewards & Compensation really brings all of this together in an

integrated suite of solutions.

00:04:53 Variable pay, base compensation, equity plans for non-cash incentives, can all be managed

within this SuccessFactors solution.

00:05:02 And total rewards statements can combine this compensation data that's being calculated in

the Compensation solution

00:05:10 along with other employee benefit detail and provide a total compensation or total rewards

statement to the employee.

00:05:18 So the ability to combine that compensation information with other benefits and produce a total

rewards statement is another area of transparency that companies want to get to.

00:05:33 And in summary, SuccessFactors Compensation is your unique foundation to apply total

compensation management that manages risk and compliance, improves employee

engagement, and leads to better business outcomes, ultimately.

00:05:46 And those business outcomes include things like reduced errors and reduced incorrect

payments and things as well.

00:05:54 So let's take a glimpse into the Compensation & Total Rewards application and we'll step

through the various pay components as part of that

00:06:04 and take a look at a total rewards statement at the end of the process and go from there. So let

me go ahead and log into the application here.

00:06:13 I'm going to use my manager role here that we've seen in other units previously.

00:06:19 I'm logged in here as Carla Grant. And again, Carla has the ability to manage her entire team,

workflows, tasks, and other activities, all through this single portal.

00:06:29 I'm going to go directly to the Compensation area and we're going to access the compensation

forms for Carla.

00:06:38 We're going to take a look at a single form that will encompass all these pay components that

we're managing.

00:06:46 In many organizations that we work with, often times the bonus plans are separated from the

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merit increases

00:06:53 and the things like equity and non-cash types of incentives are also a separate plan that might

be managed maybe not by managers but maybe somebody in HR or some other department.

00:07:04 But for the sake of our demo today, we'll show all that in a single plan and step through those

components.

00:07:10 But know that those elements can be managed separately as well as beholden to a separate

workflow around that.

00:07:20 So I'm going to access this comprehensive plan here, this Annual Salary, Equity, & Incentive

Plan for Carla.

00:07:27 What we're looking at is a manager's view into this plan. The manager's view is for the

manager planning that would happen.

00:07:35 So the assumption here is that we've got budgets and other elements that have been

cascaded down through the organization

00:07:44 and Carla now, as a manager, is managing the budgets and other planning for merit increases

and other salary elements for her team as part of this compensation cycle.

00:07:57 And as we mentioned in the past session, this would typically be after a performance review or

performance appraisal process that has happened.

00:08:07 Those performance forms, as you're going to see in a minute, can feed directly into this to

drive things like guidelines and other areas of the system.

00:08:16 Carla is looking at this annual incentive. You'll notice that she has a budget established here.

00:08:23 In this particular plan we're managing three components of merit increase. We're managing an

actual merit adjustment.

00:08:31 We're managing an individual adjustment, which might be an adjustment we make to bring

somebody up to a minimum pay range.

00:08:38 For example, somebody who might have been under the pay range, we might want to do an

adjustment on top of a merit increase.

00:08:45 As well as the ability to manage something like a lump sum budget where this might be a

bonus or maybe somebody is on the high end of their pay range,

00:08:55 we can't increase their merit pay beyond that pay range, but we do want to give them some

sort of lump sum payment because of high performance, let's say a high performance score in

that example.

00:09:07 In this particular example we've combined those three elements into a single budget that's

typically, in this case it's a percentage of salary

00:09:14 but it could be managed via a cascaded budget or pushed down or a group budget based on

group attributes as well.

00:09:23 In compensation, we can also embed various metrics. So the ability to see things like the

performance rating distribution for Carla's team,

00:09:35 where those folks fall on a pay-for-performance matrix, so these are their performance ratings

and their relative pay range for these individuals and where those folks are falling.

00:09:46 And as well as the ability to manage, see what percentage of increase, based on a

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performance rating, is being distributed across our team.

00:09:55 So we have the ability to manage and embed those types of metrics into the system as well.

00:10:01 This particular workflow is that Carla would complete her compensation planning and then this

would be approved by a compensation administrator.

00:10:11 And that could be a higher level executive or other people involved in that process.

00:10:17 And then at the completion of that is where we would typically feed payroll and other

downstream applications for the merit increase or any bonus payouts and things that are

happening.

00:10:28 So all that is available directly for Carla in this particular plan.

00:10:33 These are Carla's direct reports that are reflected here, as I mentioned. Their performance

rating is coming directly from the performance application.

00:10:41 We can see what their overall rating is. If for some reason Carla wanted to view the actual

performance score...

00:10:48 so Sid came in at Needs Improvement. We can actually open up his performance review and

get insight as to what happened here.

00:10:55 So we can look at the actual goals and competencies and things that make up his form and

understand why Sid came in at that level.

00:11:04 So we have direct access to that performance rating and we can, as I mentioned, utilize that

now to drive things like guidelines for a merit increase, for example.

00:11:15 All of the detail, history, and current pay information is configurable, so what detail you want to

give to managers to allow them to better plan.

00:11:25 So for example, we could have last year's pay change or merit increase, what their current

salary range is. This is that market data that we referred to in the slides up front.

00:11:38 And then we can calculate things like compa-ratio and range penetration—either or, or both in

this particular example I'm showing here.

00:11:46 It's again, further information for the manager to help them in their decisions that they're

making around their employees.

00:11:53 You'll notice also that we can have hourly types of folks being managed here. So Brenda

happens to be an hourly employee,

00:12:01 so her full-time equivalent salary would be this, but her hourly rate is this. And when we do an

increase, it's going to be based on that hourly rate.

00:12:11 You'll notice also that we have guidelines that are reflected here that are based on a merit

matrix that you've established around these performance ratings.

00:12:20 And potentially even relative to somebody's pay scale. So for example, if somebody gets a

Meets Expectations, and they're in the lower percentile of their pay range,

00:12:30 we can give them the average pay raise plus a little bump to bring them up on their pay scale,

for example.

00:12:38 So those guidelines are driven by your organization in terms of what are the pay ranges that

we see for these various individuals.

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00:12:47 And the system can also manage exceptions around those. So for example, in this case, if we

started with a...

00:12:56 let's just start with a 4% increase which would be the base here. So I'm going to zero out some

of these values here.

00:13:03 So Marcus, based on his pay, based on the fact that he received an Outstanding rating, he's

eligible for a 4% to 6% increase.

00:13:12 If we try and give Marcus a 7% increase, the system will warn us that we've exceeded a couple

of things. We've actually exceeded his maximum salary.

00:13:22 So therefore, we can put that excess into a lump sum amount. So we're not going to be able to

increase or exceed his maximum salary rate, but we can put any kind of excess into a lump

sum bonus for him.

00:13:38 So we have the ability to cap that salary at 100% of salary range and then utilize that additional

amount as a lump sum.

00:13:47 These are rules that are all configurable as part of the application. So you can make those soft

warnings and soft stops as I've done here,

00:13:56 or it could have been a hard stop where you weren't allowed to exceed any of those amounts

or any of the guidelines that are reflected here.

00:14:02 And often times where we've exceeded a particular amount, like Richard here, in order to

move forward, because this is a soft stop,

00:14:13 Carla as a manager is going to need to provide an explanation on why it is that she wants to

exceed that particular range. So his guideline was 3% to 5% for his salary increase.

00:14:28 Carla chose to give him 6% but she's going to need to provide an explanation on why that is in

the comments here before she can pass that particular plan on to the next step in the

workflow.

00:14:44 You'll also notice that some of the fields are greyed out here because of the eligibility

requirements that you can build into, eligibility rules that you can build into the compensation

plans.

00:14:55 So for example, if somebody receives a low performance rating, like a level 2 rating, or is not

rated yet, or maybe they've been hired after a certain time of the year...

00:15:06 f you're doing your annual compensation planning in January for the coming year and

somebody was hired in September, you can stop them from being able to get a merit increase

00:15:19 but maybe you want to allow them to get an adjustment or lump sum amount out of all that. So

all those rules around eligibility and around the guidelines are configurable into the various

forms that we have.

00:15:33 And then out here to the right, you can see final salary information where you can see we've

exceeded or gone to 100% of the pay range for Marcus by putting in that 7% increase.

00:15:45 Here's the actual numbers, but we can include that total pay, including that lump sum amount

that's reflected in there.

00:15:52 So this type of detail is available for the managers. It gives them guidelines and expectations.

We do have a wizard view that can provide a lot more detail as well.

00:16:04 So for example, in this wizard view, as opposed to working in a spreadsheet, I can step

through the employees that I manage. But here you'll notice we're giving three years' worth of

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information.

00:16:16 So what Marcus's lump sum and merit increases were over the last three years, what that

looks like, where he falls on his pay range,

00:16:25 very visual in nature in terms of how we're showing this. But all those same rules and

guidelines are in effect here as well.

00:16:33 So this is the pay component. You'll notice that there are two other areas that we can plan

here.

00:16:39 So for those organizations that do non-cash types of rewards like equity, more long-term types

of rewards and planning, we can do that as well.

00:16:50 Those rewards can be planned either in dollars or in units. Here we're doing a dollar amount,

and we can also allow for manager discretion if it's appropriate in your organization.

00:17:01 So for example, again, Marcus who got a high performance rating is eligible for $40,000 to

$60,000 in stock, and we're going to break that down in terms of actual stock options and

RSUs.

00:17:13 So this is a typical way we see a lot of organizations do this but again, depending on how your

organization pays out equity and other rewards, all of that is configurable in the application.

00:17:24 To the point where you can see Brenda here down at the bottom, isn't eligible for any of this

because of her salary grade or where she falls in the company,

00:17:32 but she does report in to Carla so Carla sees her but she can't actually plan anything for her.

00:17:38 And then other folks within the organization, based on job or grade, might have a different split

of how the stocks and options and things are paid out.

00:17:45 And again, completely configurable in terms of how you plan and manage those incentives.

00:17:53 And then from a variable pay or bonus perspective, we have the ability to marry and bring

together individual performance components into a bonus structure as well as company or

regional types of attainment into a performance structure as well.

00:18:11 So looking at Marcus again, who's my outstanding performer. He was eligible for a target

amount of $32,000.

00:18:19 The company payout, or the overall payout, was at 130%. Again, we can allow for a manger

discretionary bump on that if it's appropriate.

00:18:28 A lot of organizations will typically...the payout is what the company performance was, so we

don't allow for a manager discretionary amount, but we absolutely can do that in the forms if

you choose to.

00:18:41 There can be a lot more detail behind this. So Marcus...here is his overall plan.

00:18:47 He was eligible and he's getting paid out strictly on the organizational performance, so there

could be an individual component where individual goal attainment could be reflected here.

00:18:57 And his organizational performance is based on the fact that he's part of the Director Incentive

Plan.

00:19:04 That Director Incentive Plan has three components that are being paid out: EBITDA, revenue,

and a customer sat index. Based on the weightings and whatnot that's here as well.

00:19:15 In that, you can set various thresholds and different ways that that actual amount is calculated.

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So EBITDA, for example. If we don't attain a certain threshold, there could be no payout.

00:19:27 And we could also cap those amounts. So maybe we cap that at 2x times the amount that he's

eligible for. So the system will calculate based on that actual goal attainment what the actual

performance value is,

00:19:40 and then recommend that actual payout for that individual and then also allow for manager

discretion where needed.

00:19:51 So lastly, I will show you from an employee perspective, a compensation statement. So I'll give

you an example of one that we have. And we'll just go ahead and take a look at Carla's

particular form. So this would be Carla's compensation statement.

00:20:06 It's part of her profile. So we're looking at Carla's public profile here. You can see that her

compensation statement is part of the information that's provided with the rest of the data

around her.

00:20:18 We'll look at one from previously. And here's where...this is the type of letter or information that

would be presented to Carla at the end of the performance cycle

00:20:27 where here is your performance rating and here's your merit increase and bonus amount and

here is also where we can bring in data from benefits and other systems or processes to

create a total rewards statement.

00:20:42 SuccessFactors provides many templates for you to configure these types of statements in

your environment and deliver these comp statements out to people across your organization.

00:20:54 And again, this can include things like bonus and stock grants, as well as merit increases, as

well as any benefit detail that you decide you want to present as part of that total rewards

package.

00:21:06 So that is a high-level view into the compensation planning and the compensation statement

area, total rewards area.

00:21:15 In the next unit, we're going to talk about SuccessFactors Succession & Development. This

ends this particular unit for now. Thank you for attending.

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WEEK 3, UNIT 3

00:00:09 Hello and welcome to week 3, unit 3. My name is Steve Gregory. I'm a senior solutions

consultant within the HCM line of business, focusing on SuccessFactors applications.

00:00:20 Today we're going to be discussing the Succession & Development area.

00:00:24 We will start with the benefits of succession management and then address how a lack of

succession management can impact the business outcomes for a particular company.

00:00:35 So some of the benefits of succession management. Our research shows that companies that

embrace succession management achieve better business outcomes.

00:00:44 Succession and development processes increase employee engagement and retention, which

in turn facilitate organizational strength, agility, and competitive advantage.

00:00:54 According to Bersin by Deloitte, companies with best-practice succession management

programs are three times more effective at achieving key business measures.

00:01:04 Notably, companies that extend succession management deep into their organization are more

profitable, increasing sales by as much as 14%.

00:01:13 Companies with formalized succession management processes have 50% lower turnover

among their high performers and a 50% faster time to productivity for internal hires.

00:01:24 Succession management is imperative for organizations to excel in today's highly competitive

market.

00:01:29 In fact, organizations that build upon intellectual capital by continuously cultivating the next

generation of employees can experience a distinct business competitive advantage.

00:01:40 An organization's corporate health depends on the effectiveness, breadth, and depth of its

succession and development efforts.

00:01:51 But it isn't without its challenges. Today's business environment is rapidly changing. Demand

for skilled labor is increasing.

00:01:59 This increase is driven by technology and economic growth, which is creating the need for

more complex and highly skilled jobs,

00:02:06 and globalization and the resurgence of the war on talent has increased global competition for

that talent.

00:02:12 At the same time, the availability of skilled labor is declining due to an aging workforce, a

growing skills gap due to technology advances,

00:02:21 and a lack of investment in training and education to develop the skills needed to support

today's jobs.

00:02:28 For organizations to excel in today's highly competitive marketplace, succession management

therefore is imperative, yet the reality is that many companies are struggling to execute

succession management well.

00:02:40 Engagement, retention, productivity, and business performance are suffering as a result of

shallow succession plans,

00:02:49 weak talent pipelines, lack of investment in employee development, ineffective strategic

thinking, and the inability to link an organization's work force with its business strategy.

00:03:00 For many organizations, succession planning is simply not easy to execute.

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00:03:05 Research also shows that while most organizations consider a number of leading practices to

be important for implementing an effective program,

00:03:13 many of these same organizations are not currently capable of executing these practices.

00:03:19 For example, according to the Bersin study, while approximately 72% of companies indicate

that it is very important to identify a supply of talent to fill key positions,

00:03:28 only 32% of those believe they are ready to employ this capability effectively.

00:03:34 Another limitation is that succession processes often focus on high-level executive

replacement rather than on vital positions at every level within the organization.

00:03:44 Additionally, the research reveals that meaningful succession plans for individuals and

important roles dwindle the further you dive into an organization's employee ranks.

00:03:54 While more than half of the research respondents said their companies implement succession

management processes at the most senior executive levels,

00:04:02 fewer than 40% said they included mid-level managers and skilled professionals in their

succession planning initiatives. Furthermore, only 11% included front-line supervisors.

00:04:17 SuccessFactors Succession & Development solution is a comprehensive set of tools that

organizations need to scale their succession efforts beyond that executive level,

00:04:30 extending them deeper into the organization to enable strategic succession processes that

reach throughout the organization, align with business needs, and drive better business

outcomes.

00:04:41 Our solutions helps HR professionals move beyond drafting stagnant replacement plans for

executives and key leaders and toward taking a scalable, strategic approach to succession.

00:04:54 SuccessFactors provides tools that engage line managers to extend succession processes

deep into the organization, tie ongoing employee development to the organizational needs,

00:05:04 and build the bench strength necessary to fill vital roles. Not just for HR, we provide

succession tools built for the business—HR, executives, managers, and employees.

00:05:15 Succession management improves agility and reduces organizational risk Not just for

executives, but for everyone.

00:05:22 This allows you to identify comprehensive plans per department, identify robust talent through

talent searches, use talent pools to extend succession deep into your organization.

00:05:33 The succession org chart helps you visualize any talent gaps or bench strength areas you may

need.

00:05:40 Career and development planning helps increase employee engagement and retention. This is

through employee self-service, where individuals can own their career plans and career

development

00:05:51 and where learning is seamless through the integration with SuccessFactors Learning.

00:05:56 In this are tools for career pathing. A Career Worksheet where employees can explore even

suggested roles that they my be interested in or find other roles that they aspire to and create

development around that.

00:06:10 And of course, calibration extends beyond just the performance application.

00:06:15 It's an intuitive visualization that allows you to compare employees to ensure that objective and

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fact-based assessments and decisions are being made about your employees.

00:06:27 And of course, reporting and analytics give you easy access through predefined reports as well

as customizable dashboards to track your important succession data across your organization.

00:06:39 And finally, SuccessFactors Presentations, a recent innovation that supports the dynamic

nature of these talent conversations. With accurate, relevant, and interactive workforce data

dynamically,

00:06:54 it improves audience experience and increases engagement and involvement in these

discussions.

00:07:00 This enables HR to move from a tactical role of assembling content and building presentation

content to a more strategic role of delivering workforce insights into the overall organization.

00:07:12 As the recognized leader in talent management solutions, SuccessFactors Succession &

Development helps organizations increase employee engagement,

00:07:20 foster professional growth and development, and maximize career opportunities for top talent.

00:07:26 SuccessFactors Succession & Development can be used standalone or as an integrated part

of the suite of applications for talent and Human Capital Management.

00:07:36 So at this point I'm going to go into a demonstration of the SuccessFactors Succession &

Development tools.

00:07:44 We'll look at this from a leader's perspective, so we're in Carla Grant as a manager, who is a

senior-level manager within an organization.

00:07:54 Given to her are various insights into her team, so things like succession indicators or

succession tiles can be exposed to various levels of the organization,

00:08:06 giving Carla insight into what's happening for the roles that she has successors identified for.

As we said, we're extending this beyond just senior leadership and senior executives,

00:08:17 where Carla may be looking for a director of sales position and understand the readiness that

she has in terms of the people within her organization.

00:08:25 We're going to see in a minute how we can then search and find people that are at or near a

certain profile of individual we're looking for within the organization.

00:08:35 Carla's team is reflected in the team tile here, and Carla has access into the insights and

profile information needed to make those talent succession decisions.

00:08:48 So if we were to expand her team and look at a specific individual and bring up their talent

profile, we'll get a detailed picture of her organization.

00:08:58 So I'm going to open up Marcus Hoff here and we're going to go directly into the actions for

Marcus and look at his talent profile.

00:09:07 And as we've seen in the foundational components that we discussed earlier in week 2, the

talent profile provides comprehensive information in many ways can become that online

resume for an individual.

00:09:21 Beyond just the demographic details of who this is, we can store things like competency and

skills proficiencies. So where is Marcus in relation to the competencies required for the

particular role that he's in?

00:09:36 We can store vital talent information, such as things like flight risk or risk of loss, impact of that

risk. Is Marcus a future leader? Capturing that high potential information as part of that profile.

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00:09:50 Storing things like documents and skills profiles, as well as data that may be either maintained

by the individual themselves,

00:09:58 such as their work experience or leadership experience or maybe previous employment and

educational background.

00:10:05 All of this detail can then be utilized in things like comprehensive talent searches to fulfill roles

that we may have in the organization or gaps that we may have in roles in those organizations.

00:10:18 Areas such as geographic mobility and career interests can be maintained again by the end

employee, for them to denote roles that they're interested in.

00:10:28 And then later on, as HR professionals, we can utilize that type of information to search and

find to people that are interested in the roles we're trying to fill in the organization.

00:10:39 Notice we can pull in data directly from the Learning Management application and see what

learning and curricula information this particular individual has completed in their tenure with

our organization,

00:10:51 as well as maybe any external workshops, external certifications and licenses that are held by

this individual. So just a wealth of information that can be stored around an individual

00:11:03 to build a comprehensive profile of Marcus's experiences and interests in the organization as

well, as well as where he's been ranked or rated across the organization.

00:11:16 Additionally, we can utilize tools like calibration not only for performance types of assessments,

as we saw in the Performance module, but we can utilize calibration to evaluate talent as well.

00:11:31 So the ability to roll up talent information across departments or divisions or managers and

then to have those meaningful talent review discussions

00:11:41 with those managers to understand who exactly are our high-performing, high-potential

individuals.

00:11:47 We can get other analysis out of this, such as who are the people that are being rewarded for

their high performance

00:11:56 or, conversely, we've got a couple of different conversations here where we have individuals

that are potentially on the high end of their pay scale but the low end of the performance rating.

00:12:05 Or, vice versa, on the high end of the performance rating but on the lower end of the pay scale.

So those are employees that may be in danger of leaving the organization.

00:12:15 We can utilize that information to assess risk of loss.

00:12:19 We can also understand where people fall from a risk of loss as well as impact of that loss. So

any individual in this upper right means that they have a high risk.

00:12:29 We believe they may leave the organization or maybe they are ready to retire. But that also will

leave a big gap or a big impact on the organization if that individual leaves.

00:12:39 Those are the types of individuals that we want to ensure that we have succession plans

around.

00:12:45 So we can go into an area like this and identify various icons or attributes about this individual.

You can see Marcus has a ready-to-retire indicator reflected here, such that he has a high risk

of loss.

00:13:01 And with this now, we can go to Marcus's succession org chart and understand what the plans

are to succeed Marcus going forward.

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00:13:09 So we've gone right from that talent review session to go look at the bench strength for this

particular individual.

00:13:15 And as you can see in this example, we have several successors identified in various levels of

readiness for this particular role.

00:13:24 So James and Sandy are both ready now, whereas we have a couple people that are one to

two years out.

00:13:31 We can make this assessment based on a review of that profile and comparison of these

individuals to the job requirements as well as to each other from an analysis perspective.

00:13:44 And we have the ability to search and find individuals that might meet a certain role that we're

looking to fulfill. We'll look at that in a second as well.

00:13:54 But this gives us an indication of what the bench strength is for this particular organization. And

with any move in the organization, especially as we move down the organization levels,

00:14:05 we do want to understand what the downstream impact is of that particular move. So if, for

example, we move one of those individuals identified as successors for Marcus into that role,

00:14:16 do we have any downstream successors identified for those other individuals? So if we were to

move James or Sandy into Marcus's role, there are no downstream successors.

00:14:27 However, we do have people identified for some of the other successors, however they may

not be as far along in their development to move into Marcus's role in this particular example.

00:14:38 So the lineage chart gives us an overview into that bench strength as well, but also the

downstream impact of moving people into various roles like this.

00:14:50 As you've seen, we can manage succession from a people-based organizational chart as well

as a position-based structure,

00:14:58 where we may have positions that we clearly need to fill and clearly have people identified for

and we can manage the successors within those positions as well.

00:15:11 So a director of sales operations is a position. There may or may not be an incumbent in that

particular role now,

00:15:17 and we can manage the successors that have been identified for that particular role, as you

see reflected here.

00:15:23 We also have the ability to do pool-based succession, where you may look across your

organization and identify all of the Six Sigma black belts, for example,

00:15:33 or maybe the future leadership pipeline that you want to manage. There isn't necessarily a role

or position that is open right now that we're grooming them for,

00:15:43 but we do want to manage their development and keep that bench strength sufficiently

supplied so that when we do have a leader or somebody leave, we have people ready to step

in and take those particular roles.

00:15:58 So we can manage a pipeline of management or leadership development as well. And we

have the ability to find those individuals through our talent search capability.

00:16:09 So in the talent search, we can utilize a job or a role or a particular profile of individual that

we're looking for.

00:16:18 And in this case, you can see we're looking for a certain set of background information. So we

want people to have a formal education, a master's degree in business, as well as have

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managed a P&L in the past,

00:16:30 and also have a language proficiency in Portuguese. This particular role might be in Brazil, for

example. We also, ideally, would like them to possess this competency profile.

00:16:41 The system can then utilize that information to search and find individuals in the organization

that meet that profile or are at or near that profile, and then rank them based on that fit to the

criteria we've identified.

00:16:56 And now we can decide whether we want to utilize these individuals to move them into a

particular talent pool because we're going to develop a group of individuals here,

00:17:06 or we can identify folks that we might want to add to a position or a person-based succession

org chart.

00:17:13 So all of this is available through the Succession area. And all of this can then come together

in an area called Presentations.

00:17:23 Presentations allows you to dynamically present this detail back to senior leaders and other

folks within your organization.

00:17:31 So in the past, many organizations and many HR organizations spent a lot of effort in creating

these massive PowerPoint presentations with all their talent detail

00:17:42 and immediately, once they step into that meeting, that data is sometimes out of date. People

have moved.

00:17:48 Or there's a piece of information that a key leader wants to understand that's not part of the

detail that you've captured.

00:17:56 We have the ability to marry those static PowerPoint presentations with dynamic content to

deliver those types of details.

00:18:04 So here I'm now a senior leader in HR presenting this to the executives, what our talent

pipeline, our leadership pipeline, looks like for the Client Services organization.

00:18:16 I can step through these slides, some of which are static—some challenges in the talent

information—and some of which are dynamic.

00:18:25 So here's Carla's organization and the folks that report to her, and you can see that we've got

talent pool information reflected here. So if we wanted to look at that talent pool detail,

00:18:37 and if a key leader said well what is the background information of the folks that are reflected

one to two years out, we can pull up that detail and compare those individuals side by side.

00:18:47 This data is being pulled dynamically from that talent profile and being utilized to provide real-

time information back to that executive. So all of this is available as part of the application, the

foundation.

00:19:00 We can include things like 9 Box charts and other detail within this, as well as the ability to

include compensation information and other details.

00:19:11 Here's a 9 Box chart showing the individuals that are reflected as high performers and high

potential, and again we can bring up background detail for any of those individuals and

understand how they stack up side by side against each other.

00:19:26 So all of this is from a talent perspective, but when it comes to development, there are a

variety of ways that we can develop these individuals.

00:19:36 So much like we have goal plans, SuccessFactors provides development plans for your

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organization.

00:19:44 So the ability to manage a development plan where goals can be established for people that

are being moved into these roles.

00:19:52 But we also make available a Career Worksheet for the individual to take control or ownership

of their own career. So here's Carla's development goals; these are the things that she's got

identified.

00:20:04 You can see that there is a direct linkage into the Learning application from those development

goals that can be tracked right along the development goal progress.

00:20:11 You'll see more of this in subsequent sessions around learning and development.

00:20:15 But you'll also notice that there is a Career Worksheet where Carla can come in and identify

roles that she's interested in and evaluate her readiness for those particular roles,

00:20:26 understand what the fit is, maybe understand who's also in those particular roles right now,

and if there are even any available openings that might be reflected in the Recruiting

application.

00:20:38 And she can identify those roles, track her progress, create development goals and things

around those to move into those particular roles.

00:20:47 And the system also has the ability to suggest roles for Carla. So based on the competencies

required, based on the competencies that Carla possesses, the roles that she's targeted,

00:20:58 as well as roles selected by peers and other individuals at her level, the application can

actually suggest roles that Carla can then add to her plan.

00:21:08 These are roles that she may be interested in that she doesn't even know exist within the

organization.

00:21:13 The development aspect of this is supporting the succession planning as well as the career

pathing that an individual might want to take ownership of and manage as they go through

that.

00:21:25 Succession does allow you to find those individuals, develop them, and make sure you that

have the bench strength needed for your organization going forward.

00:21:35 This ends this unit on Succession & Development.

00:21:42 In subsequent sessions, you'll be seeing the Talent Development areas as well as the ability to

enable external training, external enablement, and training and learning around compliance

and requirements.

00:21:55 My name is Steve Gregory. It's been a pleasure to lead these sessions for you, and I

appreciate you attending these. Thank you.

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WEEK 3, UNIT 4

00:00:09 Hello, and welcome to week 3, unit 4, titled SuccessFactors Learning – Talent Development.

00:00:16 My name is Andy Shean and I'm a principal solutions consultant for SuccessFactors, an SAP

company, and one of the learning experts within the business.

00:00:23 In this unit, you're going to learn about talent development using SuccessFactors Learning.

00:00:28 Building a learning culture is not an easy job, but it is an area of enormous opportunity for

organizations that can get it right.

00:00:36 Often, the essentials are lacking and there is a struggle to develop a learning culture.

00:00:40 Barely half of executives say their company is capable of retaining, updating, and sharing

institutional knowledge, and only about 41% say they offer incentives for pursuing higher

education.

00:00:53 And although more than half of employees say they want to learn about the entire business,

only about 38% of executives say they offer formal programs such as job rotation and

shadowing.

00:01:06 To build the 2020 workforce, companies have to rethink the way they invest in their workers.

Over a third of executives say that long-term loyalty and retention is an important part of their

talent strategy.

00:01:19 Over half say that they are more merit-driven than tenure-driven, and almost half admit that

their companies do not offer supplemental training programs for employees to develop new

skills.

00:01:30 Leaders also are not sufficiently planning for succession and continuity in key roles.

00:01:36 Only about 43% of executives agree that their companies plan for expected career

advancement and tenure in a given role when filling positions,

00:01:45 and less than one-third say they'll fill those roles from within the organization when a key

person leaves.

00:01:51 Investing in training and development allows companies to replace vital skills from within the

organization, and it even inspires employees to stay within the company.

00:02:00 Establishing an organizational culture that places a premium on learning and development

requires a multifaceted approach.

00:02:09 By providing more opportunities for training and skills development, offering incentives for

pursuing outside education alternatives, and fostering an environment in which sharing is

encouraged and even rewarded,

00:02:20 organizations will find themselves better positioned to thrive in the information-centric world of

the business of the 21st century.

00:02:30 So what is the SuccessFactors Learning solution? First, we have the product aspects of our

Learning solution. We power all modes of learning through our Learning Management System.

00:02:40 In addition, we support collaborative communities of practice through SAP's collaboration

software, SAP Jam.

00:02:47 And we also provide a comprehensive content strategy for customers' custom-built content, as

well as their off-the-shelf third-party content,

24

00:02:55 both of which can be managed within our content-as-a-service solution.

00:02:59 We also have recently announced our Open Content Network, where we partner with MOOC

providers so your employees can easily access meaningful content.

00:03:07 We have partnerships with lynda.com, Udacity, Coursera, and openHPI.

00:03:13 Your employees may already be taking courses on their own from these services, but now this

will be formalized into an LMS and made available in catalogs as part of programs or curricula,

00:03:24 as well as directly assigned to your employees by administrators or supervisors. This powerful

combination means that we support any modality, any methodology, of training.

00:03:35 We allow for you, within your company, to deploy the right kind of training to the right audience

at the right time.

00:03:41 One of the most important aspects of our solution is that it's beautiful and that it's engaging.

Not just for employees, but also administrators. Because if it's not easy and intuitive to use,

you won't gain adoption.

00:03:53 And finally, our Learning solution is unified with SuccessFactors HCM and also integrated with

SAP ERP HCM.

00:04:03 We are going to go through a bunch of functionality in the session today. Everyone makes a

big deal about social being the next thing, or e-learning being the next thing.

00:04:12 People have been showing and teaching other people how to do things for hundreds of years.

Social learning, which is just learning from people around you, is what you do all day long. You

start this as an infant, really.

00:04:25 Our technology solutions support putting these into an enterprise. It's more about how people

learn than what we sell, and SuccessFactors is...

00:04:34 Really, it supports continuous learning models. It supports anytime, anywhere mobile access

to training.

00:04:39 It satisfies both the “push” and the “pull” concepts in learning, which we'll be talking about as

part of the demonstration in a few minutes.

00:04:47 It offers rich analytics. It enables your employees to easily share ideas quickly and collaborate

together. You can close skill gaps and develop leaders.

00:04:57 But it's not just the functions and features of the Learning solution that should give you

confidence.

00:05:05 We use learning solutions to help motivate, to help cultivate and innovate and help close talent

gaps in the business. We don't just have a vision of organizations magically becoming

Learning organizations.

00:05:17 We know that you have practical learning objectives that relate to two or sometimes three of

these key areas. So this brings us to your first training need: performance and development.

00:05:27 As organizations slowly begin to recover from the economic downturn, leaders are investing

more in employee development.

00:05:34 In fact, in a recent global survey that Bersin by Deloitte published in August 2013, 9 out of 10

business leaders rated the leadership gaps in their organization as “urgent” or “important.”

00:05:46 Businesses are responding to these pressures by increasing leadership development spending

for year over year.

25

00:05:53 Leadership gaps throughout all levels of the organization prompted an increase of about 14%,

on average, in leadership development funding across industries,

00:06:03 and that's also according to a report put out by Deloitte in August 2014.

00:06:08 A primary focus of this leadership development spending is leadership pipeline funding.

Companies have to invest in not just their current leaders, but also their future leaders, to build

on the pipeline.

00:06:22 The concept of leadership is evolving. Leadership development has had a very narrow, rigid

definition in learning and development but it doesn't any longer.

00:06:32 Learning professionals have embraced the concept of “leaders at all levels” and understand

the need for all employees to be proactive.

00:06:40 Leadership development is one of the most important learning trends that can benefit an

organization.

00:06:46 In addition, about 30% of learning professionals said that leadership was a key skill that they'd

like to develop for themselves.

00:06:55 Some of the key capabilities that you can expect to experience as part of the SuccessFactors

Learning solution include learning analytics; mobile learning, including an updated iPad

experience;

00:07:06 programs for continuous learning; pace determined by student or the schedule, a lot of

flexibility in the way people can learn;

00:07:14 unlimited activities, including Jam groups through SAP Jam; Quick Guides for “how to” on any

topic, which I'll be showing you in a few moments.

00:07:22 And we have to keep it simple whether it's for PC or it's for an iPhone. And last, and probably

most importantly, is the content by anyone, for everyone.

00:07:32 And really, this ties into a key theme, which is that every employee is a learner and a teacher,

and I'll be showing you that as part of the demonstration. Let's take a look.

00:07:44 When a learner comes into the solution themselves, they see training that's been applied here.

And when we think that every employee is a learner and a teacher, they may have

automatically had training assigned to them based on who they are.

00:07:56 In fact, virtually any detail about who a user is can cause training to be assigned.

00:08:02 In prior lessons you may have seen how performance and development can have learning

activities associated with them. That can be one of the actions that assigned training to a user.

00:08:12 But users can also go and find training on their own. For instance, if I browse courses in our

catalog here, I may see courses that will help me close competency gaps, so I can help myself

develop it.

00:08:25 Or give me an opportunity to assign team members training based on competency gaps that

I'd like them to close.

00:08:31 For instance, I can see subject areas that help me find courses based on particular

competencies.

00:08:40 I can also leverage subject areas to help me find training based on a particular job or a

particular skill that I'd like to gain or move into over time.

00:08:53 These courses that I'm assigning can be extremely flexible. They can have e-learning, they

26

can have instructor-led training associated with them.

00:09:00 And just about one to two clicks can complete just about any activity within here.

00:09:05 In fact, you'll see Join Virtual Session for this Leadership Development Program—that will help

me jump right into a WebEx or Adobe Connect session.

00:09:13 I can also move into the course and see more details about what makes it up.

00:09:18 I can see that I can have, perhaps, discussion threads I need to work on as part of this course.

More details about the program, incorporating ongoing collaboration after the class ends.

00:09:29 In fact, when it comes to collaboration, I can even see that tied to some of these courses can

be SAP Jam groups that will help me expand this and will include some of the “pull” of learning

and not just the “push” to complete this or do this.

00:09:44 It will enable users to come in and be able to learn more. In fact, when I jump into this

community, you'll see some of the collaborative aspects on how learning can enable that pull

for users to get more information.

00:09:57 From here, I see a feed for this community where users are interacting. They are asking

questions and getting them answered. I see documents that have been posted.

00:10:06 In fact, when I drill into one of these documents, I can even see if comments have been made

or, if I have a question, ask it for someone else to help me.

00:10:16 I can even highlight a particular section of a document and maybe even direct this question to

someone that I know can help me answer it or just put it out to the entire group.

00:10:27 So now I have to ability to post this question into the document itself, have others help me, and

as I read documents and receive notifications about questions others have, I can help them

answer them as well.

00:10:39 It really speeds along the amount of time that it takes for users to get information that they

need in order to do their job, as well as share that leadership experience, help others develop

as they move through.

00:10:54 When we think about, again, that concept that every employee is a learner and a teacher,

there's probably some aspects that everyone brings to the table that they can help others with.

00:11:03 In fact, we have tool within SuccessFactors Learning called Quick Guides. It lets me create

little process-driven snippets that I can share with others and even publish into catalogs for

others to find if it's appropriate.

00:11:16 You can see I can have images added in and create step-by-step processes that will help

others learn a particular process that I might be an expert in that I can share.

00:11:27 And all of the things that we've talked about so far can even be built into a more formal

application called a program.

00:11:34 In fact, if I scroll through the things I have assigned to me within here, I'll see that I'm a

member of a Coaching Skills program.

00:11:42 When I take a look at it, I can see that there are a number of aspects built into this, both on the

formal and on the informal side. And I might even include some elements that are external to

the system, if we allow folks to do so.

00:11:56 For instance, I see here that I have completed a few activities in reviewing frequently asked

questions as I got started in this program.

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00:12:04 Accessing the community. And I can see I have the ability to do things like view program

membership and establish a mentoring relationship with others.

00:12:13 That really helps me speed along that partnering, that talent development process, within the

system, whether I'm a mentor or a mentee.

00:12:20 I see formal course offerings that are built within this program, courses I'm enrolled in, courses

I can launch and start right from here with one click.

00:12:28 And I might even include some more formal side with exams, knowledge assessments, that I

can build in here as well.

00:12:35 And then again, those supplemental materials that can just let me link out to other resources

and can help me build out this program, such as links out to Modern Mentoring from a speech

from TEDx.

00:12:46 This allows me to bring all of these elements together, whether it's a push piece of training I

need to help me develop particular skills, or pull where I can ask others for assistance to

provide information that they know.

00:12:57 Whether it's providing pieces of process that I'm an expert in, that I can publish and share with

others, or it's combining everything into one solid program that can combine any methodology

and any type of training in one space.

00:13:15 This concludes this unit on using SuccessFactors for talent development. In the next unit, you

will learn about extending the Learning Management System to external learners using

SuccessFactors.

28

WEEK 3, UNIT 5

00:00:09 Hello and welcome to week 3, unit 5 on SuccessFactors Learning for External Enablement. My

name is Andy Shean and I'm a principal solutions consultant for SuccessFactors, an SAP

company.

00:00:20 In the last unit, we talked about how SuccessFactors Learning for Talent Development can

help to motivate and cultivate employees. In this unit, let's talk about External Enablement.

00:00:32 As organizations bring learning to the core of their values and their brand, they must expand

the learning population to the entire workforce and even beyond

00:00:41 in order to retain customers, enable partners, and—perhaps most importantly—extending the

audience can open new revenue-generating opportunities. Learning can be a profit center.

00:00:51 External Enablement really accelerates and simplifies product rollout and improves customer

and partner adoption. It increases brand awareness and customer loyalty.

00:01:02 It reduces training and certification costs and supports compliance with regulations for

contractors and partners that have to deal with qualification and certifications.

00:01:11 It also increases customer training revenue and profitability.

00:01:18 Some of the key capabilities for externals within SuccessFactors are: uniquely branded

learning sites and themes;

00:01:25 automated learning assignments, which we'll see in a few moments; the automatic assignment

of learning and catalogs to different audiences so we can get the right training to the right

people;

00:01:35 configurable “marketing pages” for audience, with specific marketing tiles that you'll see in a

few moments;

00:01:42 Jam groups for communities, crowdsourcing, expert identification, and fast video creation;

00:01:47 and attracting, developing, and retaining networks with promotions.

00:01:51 And it also supports eCommerce with multi-currency and even multi-payment options, which

we'll see in a few minutes.

00:02:01 When you have extended your learning enterprise to enable externals, it's important to realize

that they too must be trained and maintain compliance.

00:02:09 I know that when people think of regulated industries, they think of super-regulated

components like financial services or pharmaceutical or life sciences.

00:02:18 But the truth is, most organizations are regulated in some fashion. Let's take grocery stores for

example—think about the sales of alcohol and tobacco.

00:02:27 This is why SuccessFactors Learning solves for compliance-related training really with the

following capabilities:

00:02:34 automated learning assignments based on nearly any criteria that we have about who our

users are, as we've mentioned before;

00:02:42 visibility into compliance training status and activities—we'll talk about reporting options in a

moment;

00:02:48 comprehensive reporting with expanded support for government requirements; and unique,

validated software-as-a-service options for the Learning Management System itself,

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00:02:58 as well as support for multi-part electronic signatures, which can be a very important

component for validated industries.

00:03:06 Let's take a look at what the software can do.

00:03:11 When it comes to externals...when they immediately log in, they need to see exactly what they

need to complete, and often times want to get in and out of the system as quickly as possible.

00:03:22 So as we've mentioned in prior units, as well as earlier in this one, training needs to be

automatically assigned to users based on who they are.

00:03:30 In fact, if we're feeding data about who our users are, the system will automatically pick up

their training and assign it to them based on their details.

00:03:39 But what most people don't know is that it will do the same thing if they just register into the

system.

00:03:43 Immediately upon registration, based on who they are, the right training is assigned to them.

So that in one to two clicks they can get just about anything done that they need to.

00:03:54 For instance, the Basic Preparedness document I have here. One click...I can open up this

document, read it, and sign off on it.

00:04:03 It's a great tool for managing documents that folks need to read, especially for externals.

00:04:09 And one of the great things about it is that the electronic signature process can also be worked

into things like documents or courses so they have to electronically sign it before it's committed

to the learning history.

00:04:20 We can just as easily register into courses that require registrations, such as instructor-led

courses.

00:04:27 I'll say Register Now, view details about the courses, and then see which offering is going to

work for me so that I can register or add myself to a wait list when it's appropriate.

00:04:37 Makes it very easy for our externals to get in and get out as fast as possible.

00:04:42 And when they complete training, it makes it very easy for them to come in, see their learning

history, and maybe even print a completion certificate,

00:04:49 which is often very important for contractors and partners as they get started using the system.

One click to print my certificate, and I'm off and running.

00:05:01 One of the great things about the way the system is designed to handle externals is that for

administrators and others that are managing the system from the administrative interface,

externals work just like internals.

00:05:13 That means that reporting and management of our users and assignments and tracking works

the same way whether you're an internal or an external.

00:05:20 So it speeds what folks have to do in order to get the data that they want out of the system

about these external users.

00:05:29 When we think of enablinb training to act as a profit center, we incorporate a number of

additional functions in here.

00:05:39 We mentioned marketing pages and specific themes based on who our users are. And those

are certainly important. Things such as the tile that you see on the screen here.

00:05:48 And we can have different tiles marketing different courses for different people to gain some

30

adoption and get folks thinking about seeing courses that are relevant to them so that they

might want to buy them.

00:05:59 They can search the catalog even before they log into the system. This enables them to see

training that they might want to take or that they need to take.

00:06:07 And if it's something that they would like to purchase, they can see details about the course

including cost, how many seats are available, can add it to their cart, and purchase it in just a

few clicks.

00:06:18 It can even support things like coupon codes and then multiple options for purchasing courses,

00:06:24 such as charging account codes if it's appropriate, credit cards, even leveraging purchase

orders in a more business-to-business model.

00:06:33 And even could apply subscriptions to whole catalogs of courses if that's what's appropriate.

00:06:40 So when we're thinking about externals, we try to make it very simple so they can come in,

complete the training that they need to,

00:06:46 while also enabling some great functionality to support extending the Learning Management

System and creating a profit center from it,

00:06:54 enabling folks to see marketing pages, see courses that are relevant to them, and enable them

to purchase the courses they need in just a few clicks to make it as simple as possible.

00:07:05 This concludes this unit on SuccessFactors Learning for External Enablement.

00:07:09 In the next unit, and our final unit for this week, you will learn about SuccessFactors Learning

for Compliance.

31

WEEK 3, UNIT 6

00:00:09 Hello, and welcome to week 3, unit 6 on SuccessFactors Learning for Compliance. My name is

Andy Shean, and I'm a principal solutions consultant for SuccessFactors, an SAP company.

00:00:20 So far we've looked at developing our internal talent, enabling for externals, and now we'll

discuss compliance training.

00:00:28 As I said, most organizations, to some extent, have to solve for training and compliance.

00:00:33 Compliance training can be super regulated, like in the life sciences field, and it might even

require a validated software-as-a-service solution for the Learning Management System,

00:00:43 or it can be less stringent and just need to ensure that your employees are trained in things like

disaster preparedness or risk-mitigation or building evacuation,

00:00:52 detecting healthcare fraud or something like bloodborne pathogens.

00:00:56 Many organizations have to comply with regulating agencies similar to OSHA or the FDA in the

United States. And with each year, there are new standards that everyone has to comply with.

00:01:09 If you need to regulate, qualify, and certify your employees, SuccessFactors Learning allows

you to automate and ensure compliance training.

00:01:18 Some benefits of using SuccessFactors for managing compliance training include “automate

and assure”, managing the automation of assignment that we've been talking about throughout

the last two units;

00:01:29 minimizing risk; reducing administrative headaches; ensuring quality processes; enabling ISO,

manufacturing, and sustainability; and meeting government reporting requirements.

00:01:43 We talked compliance for externals in the last unit, but now we'll go into more detail on how

SuccessFactors Learning can support your compliance training for the entire enterprise.

00:01:55 SuccessFactors Learning solves for compliance-related training with the following key

capabilities:

00:02:00 the automated learning assignments based on nearly any criteria; visibility into compliance

training status and activities;

00:02:08 and a comprehensive reporting solution with expanded support for those government reporting

requirements;

00:02:14 unique, validated software-as-a-service solution for the Learning Management System; and

support for things like FDA 21 CFR Part 11.

00:02:24 The validated LMS environment, again, is also an optional component, but can be very

important.

00:02:30 We also offer the ability to have a multi-part electronic signature process, as we mentioned in

the last unit. There are a bunch of configuration settings to support how you want to use them.

00:02:40 Everyone wants to use them differently and you can choose how you'd like to leverage them,

whether it's on individual training records, courses, or even curricula. Many options are

available.

00:02:50 Let's take a look at how it works in the system.

00:02:55 As we've mentioned in the prior units, when users come in they automatically have the right

training assigned to them, using some of the tools built within the system.

32

00:03:03 They have training that they might need to complete, such as documents they need to sign off

on, courses they need to register in, and even have curricula assigned to them that they need

to track.

00:03:12 We're going to explore each one of these components as we walk through how compliance

can be managed within SuccessFactors.

00:03:19 We talked earlier about how I can launch documents and track that folks have signed off on

them.

00:03:24 And we even briefly mentioned that electronic signatures can be a part of that. They need to

sign off and maybe even someone else to sign off as proof that they've completed the

document.

00:03:34 But where some of the additional power comes in with the solution for things like documents is

automation and connections to other systems.

00:03:42 Often times, we see regulated customers leverage a document management system that

revises documents and feeds them to the LMS.

00:03:51 So we can make sure that when a revision occurs, the LMS is automatically updated and new

training is assigned to make sure everyone stays in compliance and within the right time frame.

00:04:03 When we think about certifications, we support certifications and even sub-certifications that

roll up, showing me where everyone is at in their completion. And I always know where I'm at.

00:04:16 I can see if there's a next action date for when I need to complete something additionally, and

even if this certification is going to expire.

00:04:25 When I drill into these certifications, we see a couple things. First, we see an overview that can

provide a nice cover page for what this training is all about.

00:04:34 It might even provide some context that can motivate users to get in, see the reasons why they

need to take their training and spend their time here.

00:04:41 It'll even bring in some instructors who are teaching the courses so we can see who they are

and see what other courses they might be teaching, and even see upcoming courses we

haven't yet registered in.

00:04:50 But it also shows the course list. The things I need to do in the order I might need to do them

in,

00:04:56 if there's retraining required for any one of these courses and when, and my status on where

I'm at for completing any of these. But they can also go a level deeper when it's required.

00:05:08 When I drill into this curricula, you'll see a number of other things, such as a number of hourly

requirements I need to complete, possibly even yearly, to make sure that I stay in compliance.

00:05:18 And if you like, we can even allow users to choose which courses they complete in order to

maintain their certifications.

00:05:26 Again referring back to document revisions, when courses are revised or documents are

revised, they can automatically feed into the curricula

00:05:34 so that everyone knows exactly what they have to do and when they have to do it. And we can

manage that even through notifications to make sure that they stay in compliance over time.

00:05:43 Prerequisites and substitutes are also an important part of managing curricula and giving folks

options and controlling the order in which they complete their training.

33

00:05:55 How we track users is also an important part. I can see where I'm at and it's easy to complete

all of my training. But we need to make sure that everyone is maintaining their compliance.

00:06:06 And so it's very easy to track within our system where everyone is at with over 200 out-of-the-

box reports that all run...that are accurate as of the instant you run the report.

00:06:18 As well as dashboards and analytics as well. In fact, if we take a look at some of the

dashboards that are available in here, you can see it's very easy for me to track where my

team is at or where other teams are at within the completion of their training and their

compliance.

00:06:31 For instance, I might look at this Certification Program Status report, where I can see, by the

different certification programs that we're tracking, who's complete, incomplete, and overdue at

a high level.

00:06:44 We can also manage things that require drilldown, such as seeing department, sub-

department, and even all the way in to which curricula, what the status of our users are as we

drill into it.

00:06:56 It makes it very easy for us to track and see where everyone is at in the completion of their

training and their status, whether it's by program or for a particular group of people or per

curricula.

00:07:07 And that's even outside of, again, those 200 reports that are out of the box.

00:07:14 We try to make it very simple, whether it's automating the assignment of training, it's managing

complex certification requirements, it's ensuring that the right training is delivered to the right

people.

00:07:25 We try to make it very simple for everyone to remain compliant and very simple for everyone to

track where the status is when it comes to compliance within SuccessFactors.

00:07:35 This concludes this week's topic on Perform, Reward, and Learn. You should now be familiar

with SuccessFactors solutions for Performance & Goals and Calibration, and how to align

goals to strategic objectives and assess performance;

00:07:48 Total Rewards & Compensation, such as using performance ratings and compensation

planning to develop a pay-for-performance culture; Succession & Development;

00:07:58 and SuccessFactors Learning for talent development, enabling your external enterprise, and

ensuring compliance for your organization.

00:08:06 Thank you for participating in this week's topic and best of luck to all of you in your weekly

assignments and final exam.

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