Why SuccessFactors is the Hottest Vendor in Enterprise Software
After attending SuccessConnect User Conference last week (albeit briefly), I am convinced SuccessFactors is not only the hottest vendor in the HCM space but in the entire enterprise software sector. Not Netsuite…not Salesforce.com…but yes, SuccessFactors.
So, what makes a company “hot” you ask?
Innovation. SuccessFactors NEXT Labs is truly an innovative approach to product design and development. They are taking product input from customers and actually getting them to vote of the priority of functional upgrades…errr…updates as they call them. Their pace of innovation is incredible. At the user conference, they actually asked customers what functionality they would like to see by the end of the conference. A mere 36 hours later, they showed a fully functional demo that actually had customers applauding at the end of the conference.
Customers. SuccessFactors has one of the most engaging customer bases I have seen (and I have been to many user conferences). Most SuccessFactors clients I spoke with raved about the product and discussed how it was them, not SuccessFactors, that was the inhibitor to fast deployment (the company suggests a few clients having implemented the solution in less than 4 weeks). Sure SMB and mid-market companies are easier to satisfy and quicker to deliver than the more demanding Global 2000 companies, but nonetheless, the company is also doing a great job continuing to move up-market.
Growth. The company is growing revenue over 100% annually and will be expanding their workforce from 600 employees to over 1,000 by the end of the year. Nothing speaks better than a growing customers list too. They are adding over 3 new client per day.
Ambition. The company does not speak about being the best HCM vendor out there but instead creating and impacting massive organizational change. It’s not just about HR change. More recently using statements such as “…improving worldwide productivity by 50%” and “…impacting the working lives of people” — pretty bold statements. Also getting on stage with Jack Welch, the most recognized management guru of our time, to discuss the importance of a finely tuned workforce is pretty damn good company (not mentioned the fees SuccessFactors had to float for Jack’s appearance).
This isn’t to suggest SuccessFactors is the perfect solution for everyone. The “hottest” vendor doesn’t always mean it is the “best fit” vendor. Companies should do their own due diligence to ensure their chosen HCM vendor can meet their process, company and cultural requirements, and that it matches their ongoing strategy for managing talent.
June 11th, 2007
25 Comments Add your own
1. Michael Krigsman | June 12th, 2007 at 7:09 am
Jason,
Is there some specific, compelling feature of the solution that is driving this success?
Thanks,
Michael Krigsman
2. Knowledge Infuser | June 12th, 2007 at 9:04 am
See posting on The Infuser - more comments on HOT vs. BEST FIT - Link below
http://knowledgeinfusion.typepad.com/knowlege_infusion_blog/2007/06/another_perspec.html
3. Hypefree | June 12th, 2007 at 6:03 pm
Jason…I agree with all you’ve said about SuccessFactor’s products. They’re deep (maybe too deep) in performance and succession, but their recruiting and compensation products still leave much to be desired. They certainly do know how to keep the hype machine running though. Based on my industry contacts, their weakness seems to be their services organization. Every firm I’m aware of that has implemented (or is in the process of implementing) SuccessFactors has had serious complaints about the narrow focus of the implementation services provided by SuccessFactors. They come to the table not with an implementation methodology - but more of a configuration checklist. The simplest technical tasks seem to take days or weeks. The reality as SuccessFactors moves up-market, is that organizations require a much more robust implementation methodology than what SuccessFactors currently provides. Enterprise implementations require different approaches than the lower market and departmental implementations Successfactors has built the majority of their customer base on.
4. Jim Newman | June 13th, 2007 at 5:45 am
While I don’t completely disagree with Hypfree’s comments; SuccessFactors recruiting is weak and brand new - maybe launched too early???, and the compensation product had some weaknesses (albeit they’re adding some very good variable pay functionality), the key to their Success is continuous improvement and ongoing customer feedback. While they are aggressive, they’re not afraid to say, yeah, this could be better and make changes. As far as service and implementation methodology, SuccessFactors actually has a fairly robust set of implementation tools that many companies are ill equiped to handle, which is why SuccessFactors is aggressively growing its consulting and content vendor partner/alliance model, allowing clients access to firms that can give them the level of implementation support they need. So, coming from a partner firm that supports clients, I think the service is there. The question always remains, does the client want to pay for it?
5. Dave Lewan | June 13th, 2007 at 10:08 am
Jason,
I can tell you the number one reason why this company is so hot is…Lars! SuccessFactors CEO and Founder, Lars Dalgaard is the contemporary representation of what leadership should be today. I had the opportunity to meet with Lars and members of his team a few months ago and at the meeting I found him engaging, intuitive, thought provoking and generally “on his game”.
His style is “in your face” but not at all obnoxious. He truly believes that his company can help any organization that has employees; and he will tell you why. He quickly noted that SuccessFactors “is the fastest growing software company in the world.”
His message is infectious. While at SuccessFactors’ San Mateo headquarters, I had the chance to meet with members of the product team. They were passionate about what they were building and truly had an ear for what their clients were asking for…which is very refreshing.
The world of Talent Management solutions is competitive, and although I concur with the assessments Hypefree and Jim give above, look to SuccessFactors to eventually lead the space.
Lars has assembled a great cast of extremely talented and passionate people, but as he puts it…”no A–holes allowed!” There’s definitely more to come from SuccessFactors.
Dave Lewan
Thinking HR
6. anonymous | June 13th, 2007 at 4:08 pm
Its great that they have a passionate, articulate, etc, CEO, but that does not mean they build or deliver great products (which they very well may) it just means they have a cool CEO.
My decision to buy a GM product has nothing to do with how awesome Jack Welch may or may not have been when he was running it. Marc Benioff is an awesome CRM leader but I wouldn’t buy his product because I think he’s got the right stuff — maybe I’d invest in an autographed poster instead.
Lets focus on tangible products and measurable results, not on who’s got the most charisma
7. The Human Capitalist &raq&hellip | June 13th, 2007 at 4:27 pm
[…] informed opinion but its the insight from others that’s invaluable. Take a look at the comments already… June 13th, […]
8. Dave Lewan | June 13th, 2007 at 7:49 pm
Just a final thought on today’s discussion thread on SF. The original headline underscored “hottest” software company. I realize that other vendors like Authoria may have better, more mature components of Talent Management suite, but today’s discussion was on “company”; hence my positive observations on Lars. I don’t work for SF and am not a “close friend” to anyone at SF. I did, however, visit SF with the intention of digging in to their product suite and product roadmap. Some parts are great, some need more time, but this company is on the right track. They have momentum from the top down and talented people in Product Management and Development that have developed a methodology that works. I’m sure like any other software company, they will pick their battles as they compete in the marketplace in order to differentiate their solutions AND company. Jason, let’s open this discussion back up in six months!
Dave
ThinkingHR
9. SuccessFactors - Hot or N&hellip | June 14th, 2007 at 1:08 am
[…] Jason’s post on SuccessFactors, and then read the comments. Good […]
10. Mark Stelzner | June 14th, 2007 at 4:53 am
Jason -
Nice job stirring the passionate hornet’s nest associated with terms such as “hottest vendor”. I met Lars and SuccessFactors in the earliest days of his firm, and I believe it has been his passion (and good VC backing) which has kept the ship running straight and true. Who else has every accolade of their firm on both sides of a business card? *grin*
I wrote about one of the ways he’s running his firm here, which may shed some light on how he’s trying to differentiate the org.
11. Hypefree | June 14th, 2007 at 5:24 am
Just a little more perspective on this. Given the high level of hype currently around SF - I wouldn’t be surprised to see them announce an IPO some time soon. Could this be the driver of the ratcheted up hype machine? We in the software industry tend to work in a bit of a bubble. It would be great to hear from some customers on these blogs once in a while. The customer stories we hear through the vendors are filtered. Does anyone have customer perspective on their SF products or implementation?
12. Christa Degnan Manning | June 14th, 2007 at 6:01 am
Yikes I have entered the blogosphere… but Jason is right, I was there too last week (sorry I missed you!) and what they are doing is phenomenal (although I think they had already prototyped the three areas they had customers vote on…) Anyhoo, SF may not be able to do everything and may not want to build out a huge professional services organization (who can blame them), but they are fundamentally tackling the problem at the heart of strategic HCM ~ performance ~ and revolutionizing how software is delivered. The reality is that all enterprises struggle with performance - the majority of the user session questions were around internal issues doing performance, not on SF limitations. Companies are realizing that if they don’t know who their best people are and why, it doesn’t matter how much recruiting or development they do (plus there aren’t going to be enough people to hire in the next 2 decades anyway!) That is why SF is so hot. Plus they walk their talk and focus on their own employees’ performance ~ Lars should be commended for being a good leader for that. This is no hype - it’s the real deal.
13. charles handler | June 14th, 2007 at 6:40 am
great observation about vendor fit.
My company has been following this same mantra for years now in the screening and assessment space. There are a lot of great companies out there, but just because they have good products and services does not mean they are a good fit for every situation.
In the end, a fair and unbiased evaluation based on key parameters that will define success is the best way to find a partner.
14. What to do | June 14th, 2007 at 1:09 pm
lots of players with all of them telling you they are the best with the most clients and the latest greatest products. all i want is one that is functional, works and is supported. SF, Authoria, HRSmart? comments please.
15. the important part | June 14th, 2007 at 5:03 pm
Don’t do it b/c the Jones’ are. Trying to play keep-up usually ends up with a loss all around.
So while SF is one of many great companies; filter through the hype by being sure what your priorities are: Recruiting, Learning, Performance, Compensation, etc. Have a clear goal and full vision established with a plan for execution. W/o this it doesn’t matter which vendor you choose, the likelihood of failure is huge. Make sure you have full disclosure of your plans to key stake holders & buy-in before even looking at vendors. Have plenty of horror stories here…and been disqualified b/c we don’t have a specific capability.
Being in sales for years various capacities in the industry (currently at a direct competitor of SF), I’d say to any potential buyer, do you and your sales rep a favor - Take a step back and make sure your company is looking at vendors that can handle your top objectives and the rest should be nice to haves. We all have a different story and started from a different place. Maybe I’m one of a few, but I always ask -what started the search and what do you hope to gain. Buying from a performance vendor when your pain is learning is backwards and you have been bitten by the hype fairy.
bells and whistles might sell product, but don’t solve your problems
16. SuccessFactors - Hot or N&hellip | June 15th, 2007 at 4:44 am
[…] Jason’s post on SuccessFactors, and then read the comments. Good […]
17. LaunchSquad : Blogs : Exc&hellip | June 15th, 2007 at 3:41 pm
[…] Our client SuccessFactors, for example: industry analyst Jason Corsello just called SuccessFactors the hottest thing going in enterprise software today. The Financial Times too is taking notice. As is Forbes. And some folks don’t necessarily […]
18. The motivation behind GRC&hellip | June 18th, 2007 at 8:24 pm
[…] company ethos is to follow the No A**hole Rule. In a comment to a post by Jason Corsello entitiled: Why SuccessFactors is the Hottest Vendor in Enterprise Software, David says: I can tell you the number one reason why this company is so hot is…Lars! […]
19. Karen Pisha | June 27th, 2007 at 10:21 pm
Hypefree and others in this thread - my name is Karen Pisha and I’m the head of Professional Services for SuccessFactors. This thread caught my eye because of the references to SF and to our professional services group in particular.
I’ve very sorry to hear that a customer, any customer, has complaints about our implementation of the product. Helping customers achieve success in Performance & Talent management is our only goal, and if we’re falling short in any part of that, we need to address it. Hypefree - I encourage you and the customers you’ve spoken with to reach out to me to discuss their implementations. I want to make sure not a single customer slips through the cracks.
As to the comment on methodology, I want to correct the record a bit. SuccessFactors’ Professional Services team follows an established methodology that has been successful with literally hundreds of clients. The implementation approach is tailored depending on the size and needs of the customer and is executed by consultants with HR domain expertise, project leadership skills and product knowledge that allows them to effectively bring clients live in weeks (versus months or years with many of our competitors).
Again, I want to make sure every single customer of ours achieves success and anything I can do to make that happen, I will. Please contact me at kpisha@successfactors.com or at 248-669-0953 if you have any comments, feedback or input that would help us reach this goal.
20. Hypefree | June 28th, 2007 at 12:12 pm
I appreciate you going out on a limb and responding Ms Pisha. I don’t mean to imply that all SuccessFactors customers are unhappy with your implementation services. But the fact is that every Successfactors customer that I have had direct t knowledge of (multiple) has had serious complaints about their implementations.
I’m sure SuccessFactors has a methodology. It does not appear that the methodology has been fully adopted by your services organization though. A methodology is only as good as the willingness and ability of the people using it.
This is nothing to be ashamed of. SuccessFactors is growing very quickly and all vendors seem to have these issues during rapid growth. Your organization is aware of the customers I am referring to. In fact, one customer, after receiving no response when escalating issues to your direct reports, escalated a major issue to you and received no response for a week.
I am sorry I have to post anonymously. But someone has to cut through the hype. Using my name would not allow me to post unfiltered, hype-free comments.
21. No_Clue | June 28th, 2007 at 10:09 pm
If SF really wants to keep the headcount growth as described, they better do some quick-fixes to their HR in MA.
This “LM” has no clue and I heard from least 2 candidates but her lack of professionalism.
22. Matt | June 29th, 2007 at 11:26 am
It was the worst company i ever been interviewed for a job - went thru several rounds of interview and everyone followed the same question list…ouch!
The products focus on xml but only a handful of tech are just started learning about it and the managers have clues.
Hope this post would help any potential candidates looking to work for this company.
23. smime » Blog Archiv&hellip | July 2nd, 2007 at 5:34 am
[…] SuccessFactors is hot: At the user conference, they actually asked customers what functionality they would like to see by […]
24. The Human Capitalist &raq&hellip | July 23rd, 2007 at 5:09 am
[…] is a company I have written a lot about here and here. Bill Kutik also has a great article on the company in his recent article in HR Executive […]
25. Peter Altuch | January 24th, 2008 at 8:15 am
I read all of the comments on Successfactors (mostly pro..some con) so I say the best way to find out is to try the product. They are offering a free trial which has all of the standard features and ease of implementation. Just go to the URL listed above to sign up and then post your comments as far as how your “first hand” experience went.
Leave a Comment
Some HTML allowed:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>
Trackback this post | Subscribe to the comments via RSS Feed