Wednesday, August 27, 2003

The Talent Myth Part V, continued
The Curse of the ATS Marketplace


Thank you all so much for the recent interest in the Talent Management Blog and the Talent Management Newsletter. Your feedback and support has been interesting, challenging, and motivating. Please continue to share it.

If you are new to my blog, you might want to start by reading my first post. Many of the recent emails have asked what my motivation for all of this is - I tried to outline it there.

My last few posts have been following the litany of mistakes that have been made and repeated by every vendor in our little market. These mistakes have added up to what I call the path to extinction. So far we've reviewed the following mistakes:

Stop One on the path: They listened to their customers a little too much, and not effectively for their business. (find this post here)

Stop Two on the path: They over-complicated their products while they over-inflated their egos. (find this post here)

Stop Three on the path: They diluted their strength as a vendor by diluting their domain expertise in customer facing positions. (find this post here)

Stop Four on the path: Vendors aggressively acquire customers in large numbers before their infrastructure or product are able to support them. (find this post here)


As Stop Five on the road to extinction, I'm going to introduce a mistake I've been watching vendors make more and more frequently and more and more offensively: They fool themselves into thinking their products are incredibly different than everyone else's, then they try to fool their prospects and customers.

Attention all vendors: WAKE UP! The reason you all have such a hard time differentiating products within this market is because you have all been at it for so long that your products have very little in the way of functionality or capabilities that are different from vendor to vendor. Stop trying to tell your customers and prospects that your solution is different than the competitor that just left the building yesterday and showed a solution so similar it's hard to tell you apart... Other than the colors in your interface - and even then some of you are exactly the same.

Please, please stop making statements like "No one else in the market can offer this." or "This functionality really sets us apart" or "Our ease of use is unmatched." or "No one else can scale like we can." or my all time favorite: "We're really the only end to end solution in the market."

Do you understand how silly and uninformed you sound when you say these things? My entire blog has been written around the fact that all of you are so replace-able that you've driven yourself into the ground after a few years of success. It has become painfully clear to me that every vendor in the space lives in their own little vacuum and makes incredible assumptions about what the other vendors can and can't do. You are all really not doing yourself a service by making assumptions about your competition.

The scariest thing about this problem isn't how silly the vendors all look when they make these mistakes in front of customers and prospects. We all expect you to walk in and over-inflate your position in your market. The scary thing is how this impacts the vendors internally - what fooling yourself does to your product, performance, and execution. If you are living in a vacuum - kidding yourself that your search, or ranking, or assessment, or passive candidate marketing, or reporting, or scalability, or infrastructure, or international capabilities, or support, or delivery model, or culture, or domain experience is better or unique you are denying yourself the opportunity to truly take your solution to another level.

On the vendor side it is a daily occurrence for a prospect or customer to articulate a need - or a gap in the vendor's solution - and the vendor's response is limited by their perspective that "well, no one else can do that". It's the equivalent of saying "what we have is good enough". This mentality really helps explain why so many vendors have great ideas at the start and then find themselves floundering in mediocrity with The Dinosaurs that have gone before us.

A suggestion for the vendors: The next time you interact with a customer or a prospect - or the next time you review your direction, product, and messages in the market - keep this in mind:

You are not different. You are not unique. It's all been done before. We've seen it all before, and we'll see it from your competition tomorrow. Be respectful of your competition and what the customer or prospect knows about your competition. You're wrong about what the competition has or doesn't have, and what they will or won't do. Stop fooling yourselves, and stop trying to fool the market. We're on to you.

The first leading vendor to make honesty their approach to this market will stick as the leader.

New Note: 8/27/03: For an interesting perspective on the above check out our friends at staffingmanagement.blogspot.com

Would you like to sign up for our newsletter and receive these posts and other industry info via email? click here and type SUBSCRIBE in the subject line, and you'll be signed up automatically! I promise to get a better newsletter tool soon! Our first newsletter will be shipping soon!


Until next week,

Talent.
The Talent Myth Part V, continued
The Curse of the ATS Marketplace

Thank you all so much for the recent interest in the Talent Management Blog and the Talent Management Newsletter. Your feedback and support has been interesting, challenging, and motivating. Please continue to share it.

If you are new to my blog, you might want to start by reading my first post. Many of the recent emails have asked what my motivation for all of this is - I tried to outline it there.

My last few posts have been following the litany of mistakes that have been made and repeated by every vendor in our little market. These mistakes have added up to what I call the path to extinction. So far we've reviewed the following mistakes:

Stop One on the path: They listened to their customers a little too much, and not effectively for their business. (find this post here)

Stop Two on the path: They over-complicated their products while they over-inflated their egos. (find this post here)

Stop Three on the path: They diluted their strength as a vendor by diluting their domain expertise in customer facing positions. (find this post here)

Stop Four on the path: Vendors aggressively acquire customers in large numbers before their infrastructure or product are able to support them. (find this post here)

As Stop Five on the road to extinction, I'm going to introduce a mistake I've been watching vendors make more and more frequently and more and more offensively: They fool themselves into thinking their products are incredibly different than everyone else's, then they try to fool their prospects and customers.

Attention all vendors: WAKE UP! The reason you all have such a hard time differentiating products within this market is because you have all been at it for so long that your products have very little in the way of functionality or capabilities that are different from vendor to vendor. Stop trying to tell your customers and prospects that your solution is different than the competitor that just left the building yesterday and showed a solution so similar it's hard to tell you apart... Other than the colors in your interface - and even then some of you are exactly the same.

Please, please stop making statements like "No one else in the market can offer this." or "This functionality really sets us apart" or "Our ease of use is unmatched." or "No one else can scale like we can." or my all time favorite: "We're really the only end to end solution in the market."

Do you understand how silly and uninformed you sound when you say these things? My entire blog has been written around the fact that all of you are so replace-able that you've driven yourself into the ground after a few years of success. It has become painfully clear to me that every vendor in the space lives in their own little vacuum and makes incredible assumptions about what the other vendors can and can't do. You are all really not doing yourself a service by making assumptions about your competition.

The scariest thing about this problem isn't how silly the vendors all look when they make these mistakes in front of customers and prospects. We all expect you to walk in and over-inflate your position in your market. The scary thing is how this impacts the vendors internally - what fooling yourself does to your product, performance, and execution. If you are living in a vacuum - kidding yourself that your search, or ranking, or assessment, or passive candidate marketing, or reporting, or scalability, or infrastructure, or international capabilities, or support, or delivery model, or culture, or domain experience is better or unique you are denying yourself the opportunity to truly take your solution to another level.

On the vendor side it is a daily occurrence for a prospect or customer to articulate a need - or a gap in the vendor's solution - and the vendor's response is limited by their perspective that "well, no one else can do that". It's the equivalent of saying "what we have is good enough". This mentality really helps explain why so many vendors have great ideas at the start and then find themselves floundering in mediocrity with The Dinosaurs that have gone before us.

A suggestion for the vendors: The next time you interact with a customer or a prospect - or the next time you review your direction, product, and messages in the market - keep this in mind:

You are not different. You are not unique. It's all been done before. We've seen it all before, and we'll see it from your competition tomorrow. Be respectful of your competition and what the customer or prospect knows about your competition. You're wrong about what the competition has or doesn't have, and what they will or won't do. Stop fooling yourselves, and stop trying to fool the market. We're on to you.

The first leading vendor to make honesty their approach to this market will stick as the leader.

New Note: 8/27/03: For an interesting perspective on the above check out our friends at staffingmanagement.blogspot.com

Would you like to sign up for our newsletter and receive these posts and other industry info via email? click here and type SUBSCRIBE in the subject line, and you'll be signed up automatically! I promise to get a better newsletter tool soon! Our first newsletter will be shipping soon!


Until next week,

Talent.
The Talent Myth Part V, continued
The Curse of the ATS Marketplace

Thank you all so much for the recent interest in the Talent Management Blog and the Talent Management Newsletter. Your feedback and support has been interesting, challenging, and motivating. Please continue to share it.

If you are new to my blog, you might want to start by reading my first post. Many of the recent emails have asked what my motivation for all of this is - I tried to outline it there.

My last few posts have been following the litany of mistakes that have been made and repeated by every vendor in our little market. These mistakes have added up to what I call the path to extinction. So far we've reviewed the following mistakes:

Stop One on the path: They listened to their customers a little too much, and not effectively for their business. (find this post here)

Stop Two on the path: They over-complicated their products while they over-inflated their egos. (find this post here)

Stop Three on the path: They diluted their strength as a vendor by diluting their domain expertise in customer facing positions. (find this post here)

Stop Four on the path: Vendors aggressively acquire customers in large numbers before their infrastructure or product are able to support them. (find this post here)

As Stop Five on the road to extinction, I'm going to introduce a mistake I've been watching vendors make more and more frequently and more and more offensively: They fool themselves into thinking their products are incredibly different than everyone else's, then they try to fool their prospects and customers.

Attention all vendors: WAKE UP! The reason you all have such a hard time differentiating products within this market is because you have all been at it for so long that your products have very little in the way of functionality or capabilities that are different from vendor to vendor. Stop trying to tell your customers and prospects that your solution is different than the competitor that just left the building yesterday and showed a solution so similar it's hard to tell you apart... Other than the colors in your interface - and even then some of you are exactly the same.

Please, please stop making statements like "No one else in the market can offer this." or "This functionality really sets us apart" or "Our ease of use is unmatched." or "No one else can scale like we can." or my all time favorite: "We're really the only end to end solution in the market."

Do you understand how silly and uninformed you sound when you say these things? My entire blog has been written around the fact that all of you are so replace-able that you've driven yourself into the ground after a few years of success. It has become painfully clear to me that every vendor in the space lives in their own little vacuum and makes incredible assumptions about what the other vendors can and can't do. You are all really not doing yourself a service by making assumptions about your competition.

The scariest thing about this problem isn't how silly the vendors all look when they make these mistakes in front of customers and prospects. We all expect you to walk in and over-inflate your position in your market. The scary thing is how this impacts the vendors internally - what fooling yourself does to your product, performance, and execution. If you are living in a vacuum - kidding yourself that your search, or ranking, or assessment, or passive candidate marketing, or reporting, or scalability, or infrastructure, or international capabilities, or support, or delivery model, or culture, or domain experience is better or unique you are denying yourself the opportunity to truly take your solution to another level.

On the vendor side it is a daily occurrence for a prospect or customer to articulate a need - or a gap in the vendor's solution - and the vendor's response is limited by their perspective that "well, no one else can do that". It's the equivalent of saying "what we have is good enough". This mentality really helps explain why so many vendors have great ideas at the start and then find themselves floundering in mediocrity with The Dinosaurs that have gone before us.

A suggestion for the vendors: The next time you interact with a customer or a prospect - or the next time you review your direction, product, and messages in the market - keep this in mind:

You are not different. You are not unique. It's all been done before. We've seen it all before, and we'll see it from your competition tomorrow. Be respectful of your competition and what the customer or prospect knows about your competition. You're wrong about what the competition has or doesn't have, and what they will or won't do. Stop fooling yourselves, and stop trying to fool the market. We're on to you.

The first leading vendor to make honesty their approach to this market will stick as the leader.

New Note: 8/27/03: For an interesting perspective on the above check out our friends at staffingmanagement.blogspot.com

Would you like to sign up for our newsletter and receive these posts and other industry info via email? click here and type SUBSCRIBE in the subject line, and you'll be signed up automatically! I promise to get a better newsletter tool soon! Our first newsletter will be shipping soon!


Until next week,

Talent.
TalentManagement Newsletter NO_1.htm

Tuesday, August 26, 2003

The Talent Myth Part V, continued
The Curse of the ATS Marketplace


Thank you all so much for the recent interest in the Talent Management Blog and the Talent Management Newsletter. Your feedback and support has been interesting, challenging, and motivating. Please continue to share it.

If you are new to my blog, you might want to start by reading my first post. Many of the recent emails have asked what my motivation for all of this is - I tried to outline it there.

My last few posts have been following the litany of mistakes that have been made and repeated by every vendor in our little market. These mistakes have added up to what I call the path to extinction. So far we've reviewed the following mistakes:

Stop One on the path: They listened to their customers a little too much, and not effectively for their business. (find this post here)

Stop Two on the path: They over-complicated their products while they over-inflated their egos. (find this post here)

Stop Three on the path: They diluted their strength as a vendor by diluting their domain expertise in customer facing positions. (find this post here)

Stop Four on the path: Vendors aggressively acquire customers in large numbers before their infrastructure or product are able to support them. (find this post here)


As Stop Five on the road to extinction, I'm going to introduce a mistake I've been watching vendors make more and more frequently and more and more offensively: They fool themselves into thinking their products are incredibly different than everyone else's, then they try to fool their prospects and customers.

Attention all vendors: WAKE UP! The reason you all have such a hard time differentiating products within this market is because you have all been at it for so long that your products have very little in the way of functionality or capabilities that are different from vendor to vendor. Stop trying to tell your customers and prospects that your solution is different than the competitor that just left the building yesterday and showed a solution so similar it's hard to tell you apart... Other than the colors in your interface - and even then some of you are exactly the same.

Please, please stop making statements like "No one else in the market can offer this." or "This functionality really sets us apart" or "Our ease of use is unmatched." or "No one else can scale like we can." or my all time favorite: "We're really the only end to end solution in the market."

Do you understand how silly and uninformed you sound when you say these things? My entire blog has been written around the fact that all of you are so replace-able that you've driven yourself into the ground after a few years of success. It has become painfully clear to me that every vendor in the space lives in their own little vacuum and makes incredible assumptions about what the other vendors can and can't do. You are all really not doing yourself a service by making assumptions about your competition.

The scariest thing about this problem isn't how silly the vendors all look when they make these mistakes in front of customers and prospects. We all expect you to walk in and over-inflate your position in your market. The scary thing is how this impacts the vendors internally - what fooling yourself does to your product, performance, and execution. If you are living in a vacuum - kidding yourself that your search, or ranking, or assessment, or passive candidate marketing, or reporting, or scalability, or infrastructure, or international capabilities, or support, or delivery model, or culture, or domain experience is better or unique you are denying yourself the opportunity to truly take your solution to another level.

On the vendor side it is a daily occurrence for a prospect or customer to articulate a need - or a gap in the vendor's solution - and the vendor's response is limited by their perspective that "well, no one else can do that". It's the equivalent of saying "what we have is good enough". This mentality really helps explain why so many vendors have great ideas at the start and then find themselves floundering in mediocrity with The Dinosaurs that have gone before us.

A suggestion for the vendors: The next time you interact with a customer or a prospect - or the next time you review your direction, product, and messages in the market - keep this in mind:

You are not different. You are not unique. It's all been done before. We've seen it all before, and we'll see it from your competition tomorrow. Be respectful of your competition and what the customer or prospect knows about your competition. You're wrong about what the competition has or doesn't have, and what they will or won't do. Stop fooling yourselves, and stop trying to fool the market. We're on to you.

The first leading vendor to make honesty their approach to this market will stick as the leader.

New Note: 8/27/03: For an interesting perspective on the above check out our friends at staffingmanagement.blogspot.com

Would you like to sign up for our newsletter and receive these posts and other industry info via email? click here and type SUBSCRIBE in the subject line, and you'll be signed up automatically! I promise to get a better newsletter tool soon! Our first newsletter will be shipping soon!


Until next week,

Talent.
newsletter head.jpg
TalentManagement Newsletter NO_1.htm
The Talent Myth Part V, continued
The Curse of the ATS Marketplace


Thank you all so much for the recent interest in the Talent Management Blog and the Talent Management Newsletter. Your feedback and support has been interesting, challenging, and motivating. Please continue to share it.

If you are new to my blog, you might want to start by reading my first post. Many of the recent emails have asked what my motivation for all of this is - I tried to outline it there.

My last few posts have been following the litany of mistakes that have been made and repeated by every vendor in our little market. These mistakes have added up to what I call the path to extinction. So far we've reviewed the following mistakes:

Stop One on the path: They listened to their customers a little too much, and not effectively for their business. (find this post here)

Stop Two on the path: They over-complicated their products while they over-inflated their egos. (find this post here)

Stop Three on the path: They diluted their strength as a vendor by diluting their domain expertise in customer facing positions. (find this post here)

Stop Four on the path: Vendors aggressively acquire customers in large numbers before their infrastructure or product are able to support them. (find this post here)


As Stop Five on the road to extinction, I'm going to introduce a mistake I've been watching vendors make more and more frequently and more and more offensively: They fool themselves into thinking their products are incredibly different than everyone else's, then they try to fool their prospects and customers.

Attention all vendors: WAKE UP! The reason you all have such a hard time differentiating products within this market is because you have all been at it for so long that your products have very little in the way of functionality or capabilities that are different from vendor to vendor. Stop trying to tell your customers and prospects that your solution is different than the competitor that just left the building yesterday and showed a solution so similar it's hard to tell you apart... Other than the colors in your interface - and even then some of you are exactly the same.

Please, please stop making statements like "No one else in the market can offer this." or "This functionality really sets us apart" or "Our ease of use is unmatched." or "No one else can scale like we can." or my all time favorite: "We're really the only end to end solution in the market."

Do you understand how silly and uninformed you sound when you say these things? My entire blog has been written around the fact that all of you are so replace-able that you've driven yourself into the ground after a few years of success. It has become painfully clear to me that every vendor in the space lives in their own little vacuum and makes incredible assumptions about what the other vendors can and can't do. You are all really not doing yourself a service by making assumptions about your competition.

The scariest thing about this problem isn't how silly the vendors all look when they make these mistakes in front of customers and prospects. We all expect you to walk in and over-inflate your position in your market. The scary thing is how this impacts the vendors internally - what fooling yourself does to your product, performance, and execution. If you are living in a vacuum - kidding yourself that your search, or ranking, or assessment, or passive candidate marketing, or reporting, or scalability, or infrastructure, or international capabilities, or support, or delivery model, or culture, or domain experience is better or unique you are denying yourself the opportunity to truly take your solution to another level.

On the vendor side it is a daily occurrence for a prospect or customer to articulate a need - or a gap in the vendor's solution - and the vendor's response is limited by their perspective that "well, no one else can do that". It's the equivalent of saying "what we have is good enough". This mentality really helps explain why so many vendors have great ideas at the start and then find themselves floundering in mediocrity with The Dinosaurs that have gone before us.

A suggestion for the vendors: The next time you interact with a customer or a prospect - or the next time you review your direction, product, and messages in the market - keep this in mind:

You are not different. You are not unique. It's all been done before. We've seen it all before, and we'll see it from your competition tomorrow. Be respectful of your competition and what the customer or prospect knows about your competition. You're wrong about what the competition has or doesn't have, and what they will or won't do. Stop fooling yourselves, and stop trying to fool the market. We're on to you.

The first leading vendor to make honesty their approach to this market will stick as the leader.

Would you like to sign up for our newsletter and receive these posts and other industry info via email? click here and type SUBSCRIBE in the subject line, and you'll be signed up automatically! I promise to get a better newsletter tool soon! Our first newsletter will be shipping soon!


Until next week,

Talent.

Friday, August 01, 2003

The Talent Myth Part V, continued
The Curse of the ATS Marketplace


Let's recap where we are so far in exploring the curse of the ATS Market. To this point we've focused our energies on the start of the industry and two vendors: Resumix and Restrac (now webhire) , aka The Dinosaurs. We have reviewed three of the major mistakes that they made on the path to extinction. It was worthwhile to start there because, based upon my experience, every single vendor in the market today has been repeating their mistakes. This has resulted in a shift annually of the perceived leading vendor in our market for the last four years.

The three mistakes:

Stop One on the path was: They listened to their customers a little too much, and not effectively for their business. (find this post here)

Stop Two on the path was: They over-complicated their products while they over-inflated their egos. (find this post here)

Stop Three on the path was: They diluted their strength as a vendor by diluting their domain expertise in customer facing positions. (find this post here)


There are certainly other mistakes that The Dinosaurs made, and other mistakes that seemingly have become tradition in our market. But these first three are the major contributions of The Dinosaurs - now it's time to move on in time to the more recent past and the present.

I received an email this week asking how these vendor mistakes impact the HR team and Executive, and how - other than putting a vendor on the road to extinction are they impacted? Is it really worth revisiting history? I think so, to answer the question here is an example that impacts both the vendor and the customer:

When The Dinosaurs were alone in the market and making these mistakes, it was troublesome for their customers, but if you were trying to buy an ATS you still only had to choose between one of two evils. Today, these mistakes have impacted the market to a point where there is total confusion about the vendors, which vendor solves which problem(s), and ultimately what any vendor really stands for.

These mistakes have put the HR Executive and their team in an incredibly difficult position. What's really interesting is that the vendors' proactively making these mistakes have created one of the biggest issues in our market: the development of several consulting firms that are at best provincial in their approaches - and are out trading advice for a fee with customers on one end, when on the other end their advice is generally slanted towards one of two places: the vendors that have the most money for whitepapers, vendor consulting engagements, or are willing to cut them in on the implementation fees after the sale - AND/OR - the vendors that these consultants have worked with in their limited experience. NO CONSULTING FIRM IN OUR SPACE TODAY HAS AN ONGOING PROGRAM TO KEEP THEMSELVES UP TO SPEED, IN A MEANINGFUL WAY, WITH THE VENDORS SOLUTIONS - THEIR TECHNOLOGY, ETC. All the consultants see is what they gain through their evaluation processes - which is highly convoluted. (see my Jan. 20 post for more consultant info) Will one of the consulting firms in our space step up to the plate, on their time and on their dime, and make an effort to truly become knowledgeable about the leading solutions in our space? I doubt it. No fees - no time from that bunch. It's a real industry problem and until the HR Executives and teams figure it out, while this impacts the vendors the HR team really gets the short end of the stick.

Let's move on to the more recent past, and the next mistake that has been repeated over, and over, and over, by the vendors in our space.

The next stop on the path to extinction is: Vendors aggressively acquire customers in large numbers before their infrastructure or product are able to support them.

Another way to say this is, "No one really learned the big lesson from the demise of I*Search."

Every one of the ATS vendors that has been in shouting distance of the leader's position in the market has emerged with great steam, had a year in the sun where they acquired a considerable number of customers, and has then buckled under the weight of them. Every one of them (Recruitsoft, hire.com, BrassRing, PeopleClick, and Recruitmax) have buckled, or are in process of buckling as you read this.

This mistake is compounded by the model the leading vendors in our space have all chosen. All of the leading vendors in our space operate in different ways- under the same business and product delivery and support model, as an ASP sharing resources across customers. This allows them to be very efficient and cost-effective on the back end with their systems (pure economy of scale), while being not very efficient in the delivery of the application or the support of the customer.

Early on while they grow from customer number 1 to about number 70 they are able to be flexible and able to deliver, with great pain - but they deliver for their customers because they are small enough and HAVE to listen. Along the way from customer number 70 to customer number 100 they begin to wrestle with issues where their model just doesn't allow them to satisfy the customer any more.

They begin to limit their product development based on the need to be the same for all customers. A "one to many" approach just doesn't fit in the world of enterprise level software.

They limit flexibility for the customer because a) they need to minimize the amount of customer requests they can handle with the service/support resources they have - they need to continuously push the support person to customer ratio UP, and b) when sharing technical resources across multiple customers, some of those that are key to configuration/customization and a unique customer experience are limited - if everyone was given what they needed when they needed it, there wouldn't be enough capacity of these resources to go around. This isn't always pure technology capacity - they also wouldn't have the time to implement every change for every customer. If the vendors tell you differently while you evaluate their solutions, they are lying. And, if they tell you they have implemented software behind the firewall successfully - or that "we use the same code, it's been tested by our ASP customers, we can do it" - well, that's a double-fingers-crossed lie.

Some of the vendors (Recruitsoft comes to mind) have announced configurability and configurability tools developed for the end-user/customer, but when you press them these tools fall short on what most companies need for control of their database, UI, and workflow. In classic Recruitsoft form, solving part of the problem while overselling on the other 80%. Others (like BrassRing) have touted releasing the tools into the hands of the customer, but it's on top of the bigger problem - limitations in what can and can't be done - limitations that hurt the customer. "We give you the same tools we give our internal consultants." Yeah, well you've lost more software customers in the last 2.5 years than you currently have - you're not known for having happy customers now are you.

Case in point, as you read this I'm aware of at least a dozen companies between the two of these vendors that are in process, or about to begin the process, of looking for a replacement system - not because of application functionality, because of poor support - or the inability to configure what is needed in the system to meet the customer's changing requirements.

It's not a pretty picture when you start to look around to replace these vendors. Based on the same issues with infrastructure and product the other vendors are in the same boat. PeopleClick continues to have major issues with it's customers - both support and stability related - they just can't seem to keep the system live. Recruitmax has oversold and under-delivered to where their charm in the market will begin to fade soon - several of their newer customers have recently started considering canceling their contracts and going back to market after realizing the issues with their infrastructure. hire.com is submerging again (they seem to do this every year I'm not sure if they are coming back this time), after winning a few deals they are now wrestling with the fact that their web-site and back-end solutions aren't talking like they should, they are a great solution for the passive candidate, but god help you if you want to work your own database, and they top it all off with a healthy dose of Mistake #2 arrogance like I've never seen. (Mistake 2 found here)

The current cast of characters in our space have taken The Dinosaurs mistakes to an entirely new level. The market is ripe for someone to emerge with a viable solution and be 2004's system of choice once again. I don't see the strong contender, and I certainly don't see anyone that has a plan to emerge into that role and show the unique staying power to hold that position into 2005. But still, I watch - hopefully.

The lesson for the HR team at this stop: Get more serious about evaluating the vendor's business and delivery and support model. Forget financial stability, because unless you are going to decide to suffer through an ERP solution's feeble attempt at ATS, you need to realize that none of these vendors are where their press releases say they are. Profitable for the moment, at best. Lose one or two big customers - and they are back in the red. You are spending too much time on detailing out functionality, another great billable cycle for those consulting firms I mentioned. Most of you are looking at the top 5 to 10 vendors in the space - I'm here to tell you that they all solve about 80% of the problem - and it isn't a very different 80% - NO ONE is all that unique. Just focus on the really key 2-3 pieces of functionality you need and focus the rest of your effort on the vendor's infrastructure, scalability, and BUSINESS MODEL and SUPPORT & DELIVERY MODEL (I can't say that enough).

The lesson for the vendors: Stop trying to be something you aren't. The first vendor who actually walked their walk, and went out to the market saying - "This is our model, here are the pros and CONS. (I'm stressing the cons here because you all think everything is a pro) This is what we do. We might not be right for you. We hope we are, but here are some realistic expectations of what you will see with us." The vendor who puts some honesty in their approach, and incorporates the learning experience of the first 3 mistakes. If you can manage to emerge as the leading vendor in 2004, I bet you stay there for 2005.

Would you like to sign up for our newsletter and receive these posts and other industry info via email? click here and type SUBSCRIBE in the subject line, and you'll be signed up automatically! I promise to get a better newsletter tool soon! Our first newsletter will be shipping soon!

I appreciate everyone's feedback, please keep it coming. The more constructive the better!

Until next week,

Talent.