The Revolution in HCM
Over the past twenty years, information technology has revolutionized Marketing. The same is about to happen to Human Capital Management.
Twenty years ago, Marketing people didn’t think much about information technology. They were more interested in creativity and branding. In effect, Marketing was blind until a customer showed up to buy something. The IT revolution gave Marketing eyes into the pre-purchase process. Marketers could see – in real-time – how the market was responding to a given campaign and respond as the campaign evolved. Creativity and branding are still important (perhaps more important) but Marketing has become much more of a science.
The same thing is about to happen to Human Capital Management. HCM applications have improved dramatically over the past twenty years but mainly they’ve helped us do things better – as opposed to changing the way we do things. We can do administrative tasks more effectively and at lower cost. But they’re still administrative tasks. That’s about to change.
Today’s HCM applications are essentially event-driven. An event happens – a person resigns or is hired or retires – and HCM applications respond. In the future, we believe they’ll be more process-driven. The process will flow continuously, not just when an event occurs. And HCM staff will have greater visibility into the process – and greater control over it -- as it evolves. The point of the process is to ensure that the right talent gets to the right place at the right time – and with the right training. In this sense, the process is strategic – it can help you differentiate your company from the competition.
Thirty years ago, we called it the Payroll department. Then it became Personnel. Then it became Human Resources. Now it’s frequently called Human Capital Management. The name of the department has changed to reflect an increased focus on investment in the future rather than simply recording the past. HCM applications are about to catch up. At Lawson, we expect to lead the way.
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