Performance Management SWOTs

Part
01
of four
Part
01

Performance Management SWOT - Lattice

Lattice's unique value proposition, employee-centric product, and connection with HR leaders are its key strengths. The company is, however, suitable for only start-ups and mid-sized organizations. The preference of leaders for a continuous performance management model and growing performance management software market are some opportunities that the brand can look forward to leverage.

Strengths

  • Lattice, a San Francisco based company, develops performance management software that works as a people management platform for forward-thinking organizations.
  • Lattice has a unique value proposition in the market that helps its clients to streamline its performance management processes.
  • The platform gives a clear vision to the HR leaders by providing regular feedback of their employees, i.e., where they need to grow, where they stand, and provides a clear idea of how their work can move their organization forward.
  • One of the key strengths of the company is its employee-centric product. The product adapts to fit in the client’s performance management model for annual performance reviews or quarterly development cycles.
  • Lattice offers user-friendly product experience, which enables HR teams to save time and resources.
  • The company is in existence since 2015 and is trusted by over 1,850 organizations to drive employees' performance and engagement.
  • Lattice helps to launch 360º performance review cycles and engagement surveys, track objectives and key results, gather real-time feedback, and encourage manager for 1-on-1 meetings. This makes the company's product to stand out among its competitors, thereby adding on to its strength.
  • The company's attention-grabbing managers-centric advertisements and branding are another of its key strengths and stand out features. Its ability to effectively connect with the managers through social and digital platforms has helped the company in becoming the most favored 'performance management software' in the majority of the markets it operates.

Weaknesses

  • One of the key weaknesses of the company is its limited target market. The company primarily caters to the mid-sized businesses and start-ups only, which restricts the sales growth and market expansion opportunities for the company.
  • The company offers third-party integration for a few key areas but doesn't support extensively in HR software services like its competitors, such as Namely and Workday.
  • According to Capterra reviews, the software is considered pricey for simple reviews. It is considered a bit pricey for start-ups and mid-sized businesses that have a small or low budget.
  • Several users have complained that Lattice takes time to set up while configuring reports and insights. Users also face problems in navigating organizational charts.
  • According to GetApp reviews, the key results and objectives are confusing, which are hard to visualize in a broader context.

Opportunities

  • The companies operating in the objectives and key results (OKR) software market (performance management software market) are trying to broaden the applications of performance management software, which provides the opportunity for the Lattice to build software with some changes in technology.
  • The proliferating global market for performance management software presents an immense expansion opportunity for the brand. The global market is expected to grow in Europe, North America, and Asia-Pacific regions, which allows Lattice to tap the unexplored market.
  • Identifying the top priorities for human resources departments while improving employee performance, coupled with boosting staff retention, are expected to fuel the growth of performance management software in the forthcoming years, which provides an excellent growth opportunity to Lattice.
  • The preference of HR leaders is shifting from an old model to a continuous performance management model, which provides an opportunity for the company to build a model for modern HR leaders.

Threats

  • The performance management software market is highly competitive, and the company faces a threat from various established global brands, including Betterworks, Reflektiv, HighGround, Glint, Lattice, Impraise, Standout, Zugata, 15Five, and 7Geese.
  • The lack of awareness and knowledge regarding OKR software among small and medium-sized enterprises may hinder Lattice's growth.
  • Many large enterprise planning companies such as SuccessFactors, Workday, and Oracle are entering the emerging performance management software market, which poses a threat to the company.
  • Rising demand for continuous performance management models has led to constant product innovation, thereby increasing market pressure on the brand.
  • The temporary shutdown of industries during COVID-19 has affected the industry's production process and is expected to have a detrimental impact on the OKR software market worldwide. The shutdown may hinder the growth of the company to some extent.
Part
02
of four
Part
02

Performance Management SWOT - 15Five

One of 15Five's strengths lies in having over 2,200 companies that use its software to manage performance in their employees. It also has a top-rated performance management software that has won top workplace awards like the 'Best Workplace in the nation' award on Glassdoor. With the global employee engagement & feedback software market expected to grow by a CAGR of 13.36% in the 2019-2026 period, this could be an opportunity for the company to take advantage of as one of the key players in the market. Detailed information is below.

Strengths

  • 15Five technology is made based on the latest research in positive psychology" to enable users to live more fulfilling and happier lives.
  • The company also provides premium education, devoted customer success, and consultants who are experienced to help people thrive in their jobs and where they work.
  • More than 2,200 companies use the 15Five software to get the best out of their employees.
  • 15Five is a "top-rated performance management software." It has also won top workplace awards like being ranked third in the "Best Workplace in the nation" on Glassdoor. The company presents itself to customers as offering a solution that elevates organizations by helping them to make better use of its human resources.
  • It provides support through its Success Center, which offers resources such as practice templates to customers to use and troubleshoot any problems they may encounter.
  • The company uses different bundling options in its pricing plan as several services are sold together in a package. This provides flexibility to customers as the company states that it is aware that performance management is unique for every customer and cannot be a one-size-fits-all solution.

Weaknesses

  • A weakness for 15FIVE is the negative reviews from customers who thought the products offered by the company were not useful.
  • Although the company has an average score of 4.7 out of five on Capterra from 802 customers, there are several bad reviews from customers.
  • One customer who gave the company a rating of 4 out of 10 complained of finding the company's performance management product a nuisance, as she claimed that it interrupted his workflow and wasted his time. The customer hated the software and stated that he did not gain anything valuable from using it.
  • Another customer was annoyed because when she added items to the program that she had not submitted the previous week, she was not allowed to comment on them and they were pre-checked as completed.

Opportunities

  • According to the Data Bridge Market Research report released on June 18, 2020, the global employee engagement & feedback software market is expected to grow by a CAGR of 13.36% in the 2019-2026 period. 15Five is named as one of the key players in this market and it has an opportunity to benefit from the growth and take advantage of it.
  • The growth will be driven by the increase in the demand for improved communication between companies and workers, and the growing need for employee engagement software that is cloud-based.
  • Some typical sale tactics used by the company to take advantage of the opportunities in the market and gain new customers include customer referral schemes, that use customers to recommend products to other people and companies for a $50 or $200 Amazon gift card, if those referred complete a demo or become customers respectively.

Threats

  • 15Five is one of the key players in the performance management and employee engagement & feedback software market. According to MarketWatch, the impact of the outbreak of the COVID-19 disease is starting to be felt worldwide, and it is forecast that it will significantly affect the employee engagement & feedback software market in 2020.
  • COVID-19 has created market and supply chain disruption, affected the production and demand of products, and financially impacted companies, including those in the employee engagement & feedback software industry.
  • The temporary shutdown of industries and lockdowns imposed by governments have affected the production process in the industry and are expected to "hinder the overall growth of the employee feedback platform worldwide."
  • The Data Bridge Market Research report states that the "threat of increasing turnover of the employee will downsize the growth of the market in the forecast period."
Part
03
of four
Part
03

Performance Management SWOT - Perdoo

Perdoo is a "pioneer of simplifying goal management" and has opportunities as more medium-sized and small-sized enterprises are adopting such software. However, it is still growing and has limited features, and its use and growth could be hindered due to cybersecurity and data security concerns. A SWOT analysis of Perdoo has been provided below.

Strengths

Weaknesses

  • Perdoo is still growing and is rapidly evolving. It has limited features, and this affects its credibility with some clients. For example, it does not have a robust notification system, its mobile app is only on Google Play and the experience is not as good as the web experience, and users are sometimes unable to customize it to their specific needs.
  • Several users also complain that Perdoo occasionally has several bugs. However, these bugs are usually fixed once reported to the support team.
  • There have also been complaints that the software is pricey as compared to the value it gives. It is also a bit pricey for startups that are small or low budget.

Opportunities

Threats

Part
04
of four
Part
04

Performance Management SWOT - Reflektive

This SWOT analysis of Reflektive performance management software identifies an easy to use product as a strength, low employee ratings as a weakness, the shift to remote work as an opportunity, and a platform that is not as customizable as its competitors as a threat to the company. Additional factors related to each category is provided in the brief below.

Company Overview

  • Reflektive was founded in 2014 and is headquartered in San Francisco, California. The company has 150 employees and two locations, namely, the head office in San Francisco and at Bangalore in India.
  • In June 2018, the company acquired Shape Analytics. This remains the only acquisition of the company to date. Reflektive is a privately held company and there is very little publicly available information regarding the financial performance of the company.
  • The company focuses on providing performance management services to other businesses across industries as varied as financial services, professional services, technology, media and entertainment, hospitality, and healthcare.
  • Customers such as Nutanix, Airbnb, Comcast, Squarespace, Eventbrite, and Braintree have all benefited from Reflektive's approach of engaging with recognition, technology empowerment, and analytics optimization.

Strengths

  • Reflektive is venture capital backed, and has received four rounds of funding totaling $101.6 million to date. In the seed round, Reflektive received $3.6 million in the Seed round while Series A funding totaled $18.1 million, Series B funding totaled $19.9 million, and Series C funding totaled $60 million. Investments have been made by TPG Growth, Base10 Partners, Lightspeed Venture Partners, S28 Capital, and Andreessen Horowitz.
  • Reflektive's platform has been credited with making performance management an easier, timely, and more transparent method of conducting performance management. Customers using the Reflektive platform report a doubling of performance feedback, an increase in productivity due to feedback received, an improvement in retention rates, and a doubling of the rates of employee engagement.
  • With the purchase of Shape Analytics in June 2018, Reflektive eliminated the need for a data analytics support team in its people management solutions and empowered all users of its platform to be able to create simple, customizable, real-time dashboards and reporting.
  • Reflektive's products integrate with email and collaboration platforms such as Gmail. Slack, MS Office, and MS Teams. The product also integrates with human resource information systems such as Workday, ADP, Namely, and BambooHR, as well as offers single sign-on capability with OAuty, Okta, and OneLogin.
  • Reflective supports its product portfolio in performance management by assisting with the design of the solution for the potential user, providing change management services to guide implementation, providing consultative services during implementation and technical support packages after rollout, tracking metrics, and other supporting mechanisms to drive adoption of the product.

Weaknesses

  • Reflektive has an overall rating of 3.7 stars on Glassdoor, and 3 stars on Indeed.com out of a possible total of five stars. On Glassdoor 64% of reviewers stated that they would recommend the company to a friend. Conversely, on indeed.com, the company received low rating for job security and advancement, and for its management. The highest rating was reserved for the work-life balance and its culture.
  • When compared to its competitors, Reflektive's employee rating is the lowest. Reflektive's employee rating of 3.7 is lower than that of 15Five (4.9), Ease (4.4), and WhiteHat (4.2). Within the last year, Reflektive's workforce has decreased by 92 from 245 in May 2019 to 153 in May 2020.
  • Reflektive's website rank is 86, 714 compared to 35,556 for 15Five.
  • Twitter engagement for Reflektive is not as robust as for its competitors. The company has 2,513 followers, compared to 6,681 for 15Five, and 5,542 for WhiteHat, while both 15Five and WhiteHat tweet more frequently than Reflektive. The average likes per tweet for 15Five is 1.2 and 2.1 for WhiteHat, compared to 0.8 for Reflektive.
  • Product pricing is unavailable on the company website, and can only be discerned after a request for a quote has been submitted.

Opportunities

  • Because the Reflektive solution is easy to use, the company is a potentially good fit for newer or small businesses lacking internal HR capacity.
  • Increased opportunities for employees to work remotely, a trend accelerated by COVID-19, has resulted in the incorporation of a "compassion factor" from employers as they consider performance management while working at home, particularly when differing home environments result in different levels of performance from two employees working in the same job. The opportunity exists for performance management software to tweak or add new performance goals or metrics to account for the changed working environment.
  • Increased employee check-ins resulting from increases in remote working opens up the opportunity for increased usage of similar services from providers.

Threats

Sources
Sources

From Part 04