M&A in Talent Management Continues: My POV on Strategia and Peoplefluent

StrategiaLogoPeoplefluent logo

On January 30, 2011, Peoplefluent, a leading provider of integrated talent management technology, announced that it was acquiring Canadian-based Strategia Communications. Financial details were not disclosed.

This is certainly important news for the marketplace, with yet another leading Strategic HCM vendor filling a gap in an otherwise well-developed talent management suite by making an acquisition. As Learning is, for the most part, considered a key element of any integrated talent management initiative, it is not surprising that Peoplefluent would make the jump to purchase their current partner, as ownership trumps partnership when you’re talking integrated suites.

Peoplefluent can now check all the boxes across the integrated suite, leaving vendors such as Cornerstone and Saba among the final few that have yet to complete their suites. (Both have announced planned releases in the near term to close on these very gaps.)

The Tweetosphere, which would normally be abuzz with conversation about this type of deal, has been relatively quiet.

Is this because of the anonymity of Strategia, or is it because of the paucity of press release information from the two companies themselves? Regardless of the reason, if the solution is indeed solid (as you would expect given customers like Yoplait, Ontario Ministry of Finance, Transport Canada and others), Peoplefluent should be congratulated on this strategic move.

While the market awaits additional information on Strategia, its solutions and planned integrations, I’ve provided my thoughts on the acquisition (with an overall positive or negative indicator) based on the available facts.

What we know about Strategia:

  • On the first day following the announcement, the only conversation I could find on LinkedIn started, “I haven’t come across Strategia…Anyone familiar?” The responses were not overwhelming. (-)
  • Strategia has been in operation since 1999. Their marquis customers are predominantly Canadian, and showcase Strategia’s industry strength in manufacturing, aerospace, public sector and others. The press release touts close customer relationships, one of which may be evidenced by the work between Strategia and their Compliance Management client Timco Aviation Services, back in 2008. Working closely with Timco to understand needs of the aviation and MRO (Maintenance Repair and Overhaul) industries, Strategia was able to design and launch a compliance dashboard aimed at the very complex requirements of validating worker certifications for job scheduling purposes. In an interview with Aircraft Magazine at the time of the launch, President and CEO Romain Gagnon said, “A single aircraft maintenance worker must be certified on multiple levels to perform even simple tasks. This complexity is becoming a challenge for MRO operators who are trying to maintain or increase their turn-times at the same time as accurately managing workers’ certification.” It is reassuring to know that Strategia has been meeting the highly complex needs of aerospace and other MRO customers since at least 2008. (+)
  • Their website, www.Strategia.ca/en, reports fewer than 50 employees (which is great from an agile M&A perspective), but contains no other personnel information (nothing on leadership, partners or others.) Likewise, there is limited product information: beyond text on screens, there are no product screen shots, demo videos, brochures or whitepapers. After 12 years in the industry, this lack of marketing collateral raises red flags for me. (-)
  • Peoplefluent positions Strategia as an existing learning partner, and so basic integration between the two platforms should already be understood and facilitate a rapid first drop on the unified roadmap. (+). Interestingly, I don’t see Strategia listed as a partner on their website. Perhaps they have been removed already?  (-)
  • Based on the available product descriptions, Strategia’s Learning Suite, Ed, would appear to have sufficient functionality to meet common learning use cases. The modules in Ed include the LMS (with instructor-led training, eLearning, virtual classrooms and blended learning), Content Management, Skills and Compliance Management (including an assessment engine), social learning, reporting and eCommerce. This latter component – eCommerce for commercial or for-profit learning – is a strategic differentiator against some LMS competitors, as it is not universally offered. (+)
  • Peoplefluent now has an offering in one of the hottest growth areas: Social Learning.(+)  As a vendor in social learning, why isn’t Strategia on Twitter? (-)
  • In September 2011, roughly three months before this acquisition announcement, a new SaaS application called “HR in the Cloud” was launched. HR in the Cloud was the result of the association of four HR vendors, their solutions unified through the creation of a common point of entry, to deliver end-to-end HCM functionality. Strategia was the LMS component of that offering. HR in the Cloud is as much or more of an unknown as Strategia. I am not sure if the affiliation is seeing any traction or will be seeking a new LMS to plug into their offering, but their engagement in this association is at least worthy of comment. (neutral)

What we can surmise about product impacts:

  • Learning is a fundamental requirement for integrated talent management, both augmenting and benefitting from each of the modules within a comprehensive suite. With Ed, Peoplefluent ostensibly will have the breadth of technologies to:
    • Achieve excellence in the new hire experience both before and after Day 1 with development programs and collaboration integrated with Peoplefluent onboarding processes (including the onboarding of contractors through Peoplefluent’s Vendor Management System);
    • Foster the creation and sharing of knowledge across the enterprise for better outcomes with Strategia Social Learning;
    • Close on skill and competency gaps (take action within an integrated system) identified during performance or succession planning;
    • Plan and execute leadership development programs for high potential and high performing employees as identified during the talent calibration process;
    • Enhance and link assessments to the recruiting process and close gaps after hire;
    • The list of opportunities continues at length from here.
    • (+)
  • Will current Peoplefluent customers that are using another LMS consider switching to a relative unknown in exchange for the benefits of an integrated offering? Research shows that almost one out of every three companies are willing to forgo functionality in exchange for an integrated suite, but will Strategia’s functionality be enough for Peoplefluent’s diverse customer base? (-)
  • Will this acquisition play out in the global market? Are Strategia’s solutions applicable globally? Are they translated, and if so into which languages? Do they support EMEA data privacy requirements and the unique regulations of different regions? I expect gaps in this area of global capability. (-)
  • The press release talks about “new synergies across the uniquely differentiating components of…Workforce Analytics, Workforce Compliance and Diversity, and Vendor Management System“. It’s the last point that really intrigues me. Peoplefluent’s Vendor Management System (VMS), which is already a differentiator for them, helps organizations streamline and manage processes around sourcing and managing contract labor. The VMS has capabilities spanning services procurement, contingent management, compliance & risk management, and reporting and analytics. Ed could advance Peoplefluent’s assessment capabilities, accelerate contractor onboarding, facilitate content creation and new levels of collaboration between contractors and staff, and more. Ultimately, only the roadmap will tell; I look forward to seeing it soon. (+)

Should the market be buzzing? Yes. We just need more data.

While there are many plusses and minuses based on what we know and can anticipate, on balance, this acquisition can only be perceived as a very positive move for Peoplefluent and its customers.

Many technology vendors come to market with v1 solutions that perhaps meet only certain use cases, or bring “good enough” capabilities for the time being. I do not know at this point how Strategia’s solutions will fare in the analysis: good enough for some, market competitive, or even market leading in certain areas. What I do know is that upon completion, Peoplefluent will lay claim to an end-to-end talent management suite; it will have a learning platform from which to grow; and that learning platform will force the consideration of new process flows and new thinking across the rest of the solution portfolio.

Sounds like a win in my book.

Congratulations, Peoplefluent. Now, when can you share the details?

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One Response

  1. Great analysis, my first guess is that PeopleFluent is not sharing more information because their little information to share. On the surface, it appears that Strategia is a small, local solution provider that has a bit of traction in the Canadian market, most likely at the department level in these agencies. Probably a solid business with solid technology. I doubt anyone will be affected in the short term by this acquisition other than Strategia’s clients.

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