The world of work has radically changed. Today businesses transform faster than ever, with 45% of CEOs anticipating their company as defined today will not exist in 10 years.1 Moreover, every company is in a war for skills. The labor market is getting younger and more demanding, unemployment remains low, and employees operate like gig workers.

The History of Talent Management

Evolving from the mainframe HR systems of the 1980s, companies purchased a multitude of HR systems to automate HR processes. These included applicant tracking systems (ATSs), learning management systems (LMSs),

and independent tools for career management, sourcing, and various HR functions. While this wave of innovation was promising, it created data silos and prevented a comprehensive understanding of the employee lifecycle.

In response to this trend, during the early 2000s, companies pursued an “integrated talent management strategy.” This led to a major consolidation of vendors: Oracle acquired Taleo; SAP acquired SuccessFactors; Workday was launched; and many other vendors were acquired—all with the intention

of building a single integrated talent management platform within a single vendor offering.

While the concept seemed logical, it essentially just automated HR practices akin to how supply chain or manufacturing procedures are automated. These integrated systems, designed to carry out HR processes, essentially acted as “people supply chain systems.” Built around the construct of jobs and job descriptions, this integrated talent management did not consider an individual’s skills, horizontal mobility, team-based work, or leadership at all levels. Consequently, despite the intention to simplify the tech stack, these systems fell short on delivering the tools to manage

a modern workforce. And today these systems prevent the evolution of dynamic organizations where people are matched with the right opportunities based on their skills and capabilities, rather than solely on their job experience.