Oracle President Mark Hurd discusses Oracle’s plan to lead the HCM space.
Title: Building the New WorkForce with Modern HCM
Mark Hurd: Let me tell you what CEO’s worry about. Surviving.
The number one thing you think about when you run a business is surviving. If you can get past surviving, you want to perform. If you can get past performing, you want to thrive. And there are two things that drive that: the ability to get into new markets, and at the end of the day – grow.
I can’t grow my earnings if I don’t grow my revenue, generally speaking, I can only grow my earnings so long without revenue growth. And to do that, I have to innovate. And the business at the end of the day is all about people. Two kinds of people – the people who are our employees and the people who are our customers.
You get them right – great things happen to you.
43% of the US workforce can retire in the next 10 years. And I volunteer – I’m one of them.
Mark Hurd: Now, whether that’s eight years, nine years, seven years, whatever – eleven years – this is a big issue. You might say why does he bring this up? Because this very change of the workforce is going to change our economy dramatically. It’s going to change how you recruit, it’s going to change how you work. And now the people we’re recruiting, frankly, and who we’re selling to, have grown up in the Facebook generation. That’s the new workforce, and these are huge generational changes.
So, just to give you some context of Oracle, when I got here we had ninety-thousand people. Now we have a hundred-twenty-five-thousand people. We’ve bought thirty companies over that time frame and frankly that inclines our RND because we buy in all the innovation that those companies have done over the life of the company – that’s really additive to our RND.
So, four things we’re very focused on.
That every product we make is the best. That’s why I’m here to tell you we will have simply the best HCM products in the world – bar none.
We will out invest and out engineer anybody in the marketplace.
So every product has to be the best and we believe HCM is so important and your jobs, those of you in HR are so important, and it’s going to get more important. For the very reason I just described to you. Any company that’s got a bad HR department, I’m telling you, dump their stock.
Any organization that doesn’t think that people are critical to the success of their business? Dump their stock. And I believe that it will become one of the most strategic functions of the company.
So I really think the first thing starts with a strategy around the skills you need in the company, and you have to list very clearly “Here is what we need to run our business”. And then you have to inventory what you have. And I hate to make it so impersonal, but in the end it’s really, “here are the skills I have, and here are the skills and capabilities I need”. And frankly, you get a gap analysis out of that. And you have two choices to the gap analysis, recruit to it, or develop to it. And we all know we have good people, most of us have great people in our companies, we just in most cases haven’t led them right. So if we can lead them right and we can develop them properly, we can close some percent of that gap and we recruit to the rest of the gap, and that’s the way we do it.
Know what you need, know what you’ve got, develop what you can develop cause obviously that’s more effective, and then recruit. I will say, we’re very much on the development side. We spend at Oracle a lot of time recruiting from college. And we try to organically promote.
We want to make sure the market knows Oracle is serious about HCM, serious about HR and serious about leading this space.