Our Summary: Workday, founded in 2005 by Duffield and Bhusri, declared its intention to raise up to $400MM in an IPO (tentative price). Founders intend to retain dominant control. Workday had $120MM in revenues in first half 2012 doubling the revenue with losses growth of ~30% from a year ago. No date set on when Workday will start trading. Last fall company raised $85MM on $2B valuation.
Our comment: a little context according to InformationWeek:
Just this week, IBM acquired HCM vendor Kenexa for $1.3 billion. That deal comes in the wake of SAP’s $3.4 billion acquisition of SuccessFactors, Oracle’s $1.9 billion buy of Taleo, and Salesforce.com’s purchase of privately held Ryyple.
Workday Discloses Finances, Plans for Founders’ Control
by Ben Werthen
Originally published Aug 30, 2012
Workday, one of the most closely watched among a new crop of enteprise-technology start-ups, on Thursday opened the kimono on its inner workings on the way to an IPO and also disclosed that its founders are determined to keep control of the venture as a public company.
Our Summary: Performance doesn’t always require management. Traditional management provides control, but what modern businesses need is to promote the mindset that creates the conditions needed for great performance to take place. By fostering such a mindset, people can then self-regulate and make decisions most suited for the given time, which then yields best performance.
The end of performance management (as we know it)
by Bjarte Bogsnes
Originally Published on 30 Aug, 2012
“Self-regulation” has become an increasingly important word for us on this journey, not as a goal in itself, but as a great way of achieving great performance. We found inspiration in something which one initially might think of as very different from organizations and business, but where we all also want the best possible performance.
Our Summary: Companies large and small are moving away from a top-down and structured 360 performance reviews in favor of peer-based approaches. Movement to crowdsource evaluations leads to flattening of organizations, improved employee engagement, and increasing teamwork and collaboration.
Companies experimenting with this approach include Hearsay, LivingSocial, LRN, Symantec. Popular tools range from in-house solutions, to Salesforce Rypple, Laudits, WorkSimple, and iDoneThis.
Peer Performance Reviews Take Off
by Rachel Emma Silverman and Leslie Kwoh
Originally Published on July 31, 2012
Treat your peers well. They may soon be responsible for your performance reviews.
As some companies flatten out their management hierarchies and encourage more team-work, they’re doing away with traditional top-down, manager-led performance reviews and leaning more heavily on the rank-and-file for evaluations.
Our Summary: while HR is often not sufficiently appreciated, now there is research that shows that companies with strong HR departments have better company performance.
Companies with high performing HR departments, enjoy 3.5 times the revenue growth
by David Woods
Originally Published on August 6, 2012
Companies that are ‘highly skilled’ in core HR practices experience up to 3.5 times the revenue growth and as much as 2.1 times the profit margins of less capable companies, according to new research by The Boston Consulting Group (BCG) and the World Federation of People Management Associations (WFPMA). Continue reading
Harvard iLab just welcomed its new batch of Summer Residents and we’re happy to announce that FairSetup has been invited back. The air is buzzing with creativity and innovation – TechStars is running the Startup School, Grace Choi keeps distracting us with high-end cosmetics, EFL and CommonPlace have both secured what looks like small armies of interns, OrganJet barricaded themselves behind a slew of other people’s whiteboards, and we finally downloaded Bon’App‘s App to give it a shot. And Devon from JamPage seems to have been abducted by Tivli… and that’s just some of the ventures… the full list is available here.
The downside of all this activity? Guarding our whiteboard. Here is to another 12 weeks of awesome Fairness.
Our Summery: On-going reviews provide real-time insights into employee performance and set expectations for desired outcomes. The collective intelligence of the enterprise widens points of inputs and the positive peer recognitions are sources of inspiration for teams.
Crowdsource Your Performance Reviews
by Eric Mosley
Originally Published on 6/15/2012
Forty-five percent of human resources (HR) leaders don’t think annual performance reviews are an accurate appraisal for employees’ work. And 42 percent don’t think employees are rewarded fairly for their job performance. Continue reading