An HR Entrepreneur in the Navy

When I was a kid my dad told me being in the Navy was all about hurry-up-and-wait. As he explained it you were always supposed to quickly move from one place to the next, but once you got there you typically had to stand around and wait. Hurry-up-and-wait.

As an entrepreneur in HR (probably not unique to HR) I feel like this sometimes. Everything we do is urgent, but when we get there, we typically have to wait. Wait on software development, wait on investor funds, wait on sales prospects, and wait on customers.

Our product Referral Link was over a year in the making and finally went live in November. I felt like a Formula 1 race car sitting at the starting line ready to roar into high gear. 0 to 180 MPH in practically no time. We are ready to win the race.

Thing is, products that break old boundaries and introduce new ways to do things are rarely a race. Maybe a marathon, but never a sprint. Good ideas take time to take hold.

We have started to introduce the Referral Link product to the market place. Like any company full of more smarts than cash, we are following a Lean Start Up model. We are well beyond the MVP, but we are well into Lean Marketing. No Super Bowl ads for us. (Although I do think Jennifer Lawrence would be the perfect person to endorse our product at halftime – fiery and fierce, yet innovative…yes we do have an inflated image of ourselves). Instead though, we are slowly bringing the product to market by introducing it to certain targeted customer groups. We are getting a feel for how customers respond to the product, how the product performs and where the product best fits in the value chain.

So I guess taking over the world with our new innovation in recruiting is going to have to wait. In the meantime, I need to hurry up and get some things done. World domination takes preparation.

Being an HR Entrepreneur is a Piece of Cake

If I had a dollar for every HR start-up, I wouldn't have to start up my own HR venture!

Have you noticed how many people seem to be starting HR companies lately? I talked to an Angel Fund manager a few weeks back and he said “We've already talked to 2 HR start-ups this week.” There was no room at that Inn.

I wonder if these people starting new ventures in HR feel like HR is a piece of cake. There are certain things in the world where people think they are experts without putting in the effort to gain expertise.  Parenting is one example, marketing seems to be that way too, but so is HR.

I find HR entrepreneurship very hard. I have helped many HR companies over the last 30 years discover and build new products for HR. After helping sell the last one, I decided to start a business on my own. I have (as I said above) 30 years of experience building HR products. But I have never been an HR practitioner. So the first thing I did was form an advisory group made up of some of the best HR people I know. They are my life blood and my muses. It took several ideas developed, proposed, adjusted and revised before we came to anything we thought made sense and would truly fill a hole in existing HR processes. (We didn't want to build the same thing everyone else is building). It wasn't a piece of cake.

The result of this effort is what we call Referral Link: http://innotrieve.com/referrallink/

We just released yesterday – but we still have miles to go. The product is good but it is not everything that it can be. HR is a crowded market, HR Directors and Managers are smart, savvy buyers, HR has extremely tight budgets and very demanding ROI requirements, and HR people know when a product really helps them and when it is just another version of something that already works well enough. 

And boy has this been anything but a piece of cake.

5 Considerations When Pitching an HR Product

We are trying to raise money for our world-beater new HR product. Problem is, we have to convince a bunch of very skeptical people to give us their money to help us do it. I think they should recognize our brilliance and open up their wallets. But since that isn't going to happen, we have been refining our story: Our Pitch.  For those of you who are embarking on a similar path, here are 5 considerations when pitching your product (with tongue only slightly in cheek)

1. Size Matters: How big is this market we call HR? You can argue that it is a $4.5 Billion industry or even a $21 Billion industry. If you are going to argue that you have a world-beater product, you better know how much of the world you are going to beat.
2. The A Team: The senior management team should have some clue about what they are doing, and should have some experience doing it. That's not to say a really smart tech guy and a great product person can't figure out something worth doing, but your learning curve could be rather steep. 
3. Be an Aspirin in a Room Full of Headaches: You have to build something that people really want. You have to solve a problem worth solving. If you are doing one of those projects where your main product mantra is “they just don’t know they need it yet” you are going to have a very long sales cycle.
4. Be Jack in The Bean Stock: You need to show that with only a little bit of water, that puppy is going to take off! (This may not be 100% true, but the people you are talking to have to be told it is).
5. Know where the Exit Sign is: Strangely enough, when people give you money they really want to know when they are going to get it back. You need to be very clear about what happens in about 5 years from now. The fact that no one has ever been accurate in this prediction is not relevant; you just need to show you are going to try.

After you have these 5 ideas down, now all you need to do is say them over and over again about 40 or 50 times. If you are lucky (and yes, luck does have something to do with it) you eventually find someone who believes in you. It is a beautiful thing!

Wish us luck…we are almost there!

Launching a New HR Product: 7 Items to Consider

I sometimes think there are as many new products being developed for the HR market place as there are number of HR people in the world. Let me guess…. that would be about 243 Million.

Some days it feels like that. 

So how do you make sure your product stands out in this crowded world of new HR products?  Here are 7 items on my checklist that don’t get enough attention:

1. Your Tech is Cool, But Nobody Cares: Don’t get so enamored with the cool new technology you are using that you fool yourself into thinking that’s all it takes to succeed.
2. Messaging is Harder than You've Planned For: In a busy, noisy world, people don’t have time to listen to a long winded story about your product. You think you need an elevator speech? Think again, you need a Tweet!
3. Fresh Air In a Stale Environment: Fads grow stale quickly. HR Trends can be like last year’s Boy Band. You have to be fundamentally sound, and compellingly relevant.
4. End Results Marketing: Most people set the end result of good marketing at the wrong finish line. It is not the sale that you aim for; it’s the success of the solution. With a new recruiting solution, for example, success is a new hire. Sounds simple, but very few companies actually (sincerely) think that way.
5. Don’t Underestimate the Cost of Getting Service Right: HR is a people business and people want help from other people. Don’t assume that an automated FAQ and 3 guys offshore are going to cut it.
6. The Learning Never Stops: Your product has several problems, you just don’t know it yet. Make sure you set up your new product launch as a learning experience.
7. Impact on Culture: All HR products impact people. Really revolutionary products impact them in a big way. You can’t just have the best idea if that idea doesn't fit the culture. You are doomed if you don’t take the time to address culture as part of the product process.

The next decade is going to see an explosion of new products in HR. For you to have an idea with lasting value, you might want to consider these 7 suggestions for making sure your HR product succeeds.

Let me know if you have other ideas to add to the list.

Doing Laundry: 4 Lessons for Building Great HR Software

Doing The HR Laundry

Doing laundry is only drudgery if it keeps you from doing something else.

  

One of the many advantages of being a “basement-office entrepreneur” is you can do the laundry during the day, and today I thought about 4 lessons that doing laundry can teach us about building great HR software. (OK, it’s a stretch – but hang with me here….)

Lesson 1: Separate the Light from the Dark. OK, this is no missive from a Jedi Master, but its roots are the same. Developers get so bogged down in the problems and exceptions that they forget to focus on the really good stuff. I have found a much better approach is to build in all the good stuff, make the software as delightful as possible, and then go back and eradicate all the evil with your Light Saber.

Lesson 2: Don’t Overload the Machine. Stop putting in so many features that you can no longer tell what the real purpose of the application is supposed to be. Have you ever tried posting a job in one of the “Top 3” recruiting solutions? Give me a break. I just need one button that says GO.

Lesson 3: Watch out for Imbalances During the Spin Cycle. This is all about evaluating your solution (taking it for a spin). Most HR solutions designers get too fixated on one or two issues and then over design the system to deal with that; while forgetting that the whole system needs to be in balance. This problem becomes particularly obvious to your customers when all your sales staff can talk about are two features. OK, I understand that your system can be in both English and Urdu, but can it actually track employee leave?

Lesson 4: Take Things Out Before They Wrinkle. This is not a statement supporting age discrimination.  This is the fact that most HR solutions designers don’t know when to stop. Have you ever noticed that Version 1.0 is often so much better than Version 2. Who told them we needed a feature to automatically schedule a lunch break when setting up the interview schedule (and to make it impossible to change it). I’ll eat when I want to eat!

Now, back to folding socks, maybe it’ll teach me how to play tennis. 

Ask Employees What They Think When Designing HR Products

70% of employees hate the HR systems they have to use. I just made that up, but in my own informal survey of the 10 people sitting next to me, seven of them said they think the systems we use for payroll, benefits, HR, etc. was designed poorly. We use one of those “highly rated systems”.

Who do they ask when they conduct surveys about those systems anyway? HR people – right.

There is an old saying in the design world: Don’t just design for your customer, design for your customer’s customer.  The customer’s customer for HR Products is the employee.

But how many of the companies building HR products do that? I mean really do that? I will admit that I do not know all of the companies out there, I have not directly seen the processes of more than a dozen of them, but what I have seen is the results. Most of the software out there does not make it easy for an employee to do what they want to do.

You see it at trade-shows too. And you see it in that terrible sales and marketing stuff they send you. They don’t talk much about the employee. Oh sure – they give it lip service: Employees will love it, or It will make employees more productive. How do they know? Who did they ask? Mostly it is all about HR productivity and HR improvement and HR happiness.  HR is not happy if the employees aren't happy.

So to all you builders of HR product solutions; next time you build a new feature, don’t just interview a bunch of your customers. Interview their customers. Ask the employees what they need!

Four Pitfalls To Lean Start Up in HR Products

Can human beings in the work place ever be guinea pigs? 

I recently started an HR data company. We are using a proprietary artificial intelligence tool to help us discover critical human resource information that can help both the employer and the employee. At least that’s the idea. Our first product is in the social recruiting space and we are in the process of testing our assumptions. Tune in later and we’ll let you know if we are on to something.

I have been in the HR products business for awhile (longer than I like to admit – I remember using punch cards in graduate school) and know a thing or two about product development. When my partner and I formed our new company and decided on our first product we also opted to follow the product development guidelines espoused by Eric Ries in his book The Lean Start Up. 

Lean start up techniques were more than a fad concept we wanted to try. We really were lean (as in we had no money) and wanted to be very smart about what we built and how much we spent building it.  We are also building something no one is doing today (more about that later) and we weren't sure that employees and employers would adopt the concept. Lean Start Up seemed like the perfect answer. And it was. But there are four pitfalls that need to be addressed if you are going to follow Lean Start Up processes in the HR space.

These four pitfalls start with a core concept of the Lean Start Up process called the MVP – Minimum Viable Product.  In a nutshell (he wrote a whole book about this so excuse me if I miss a few of the details) you invest in building only enough of the product to test your major assumptions. In our case – this involved employee adoption and sign up. We built the MVP and found a company willing to be our BETA test site. 

After weeks of testing, these are the four pitfalls we see:

1. Human resources is a bad place to experiment. HR by its very nature is conservative. You really don’t want to mess with people! If you are going to do an MVP in the HR space, you can’t disrupt the work place and you can’t give the employees a bad experience.
2. Workplace versus home environment. People don’t mind “playing around” with a concept at home. Most people love to experiment with a new website or software tool or tinker around with a new app on their phone. They don’t like to do this at work. 
3. Limited test period. Many of the examples in the Lean Start Up talk about getting feedback from early MVP experiences and tweaking the product to see what happens. You can’t just tweak away in HR. Employees won’t tolerate it and the HR department can’t allow it.
4. Greater need to know. At home, you are comfortable going down the rabbit hole. Not so at work. If you really don’t understand what the application does or exactly how things work, you tend to freeze up. This means that you have to give employees a lot more training with an MVP in HR than you might need to do with a typical consumer based product. 

I am a huge fan of The Lean Start Up and think it has its place in building Human Resources products and solutions. But anyone opting to follow this process should be careful about how far you take the process of experimenting in HR.

Now, if you will excuse me, I need to run off and explain to our BETA customer why that button in the upper left hand corner of the screen really wasn't supposed to offer a job to the employee’s dog.  (Although I stand by the fact that the dog’s social media profile looked like a perfect fit). 

(image courtesy of Gerd Altman on Pixaby)