Ally announced a $50 million Series C for its performance management tech focused on the Objectives and Key Results (OKR) method, bringing its total investment to $76 million. In its PR and CEO video (see links below) Ally touts 600 customers, 5x revenue growth (5 times what?), and some usage metrics from their app (that don’t mean much to us in a vacuum). Raising a series C is validating, but it isn’t a destination – no funding round is – it’s a milestone that will hopefully fuel a part of the journey.
In HR and especially with processes like performance management, one size never fits all. Employers have been on a mass exodus away from stacked rankings and traditional annual performance reviews for some time. However, while the move away from stacked rankings was relatively quick, the move to continuous performance management has been more of an evolution and many times is augmenting the annual review which is still the staple for compensation reviews and bonus adjustments in many environments.
You’ve got to be cascading more than productivity goals throughout your organization.
While OKRs and their cascading goals are good for task management and driving productivity, the global pandemic and shift to remote and distributed work have underscored that the feedback and check-in process isn’t just for KPI measurement, but has to extend into wellness check-ins, proactive listening, and understanding and connecting the employees’ motivation to the company’s culture, values, and – yes – goals.
Product management is still a hot category for HR leaders.
As we talk to CHROs, especially those in high-growth enterprises, performance management is still a category of tech that they express interest in. Most are looking for solutions that will support multiple approaches the process and some level of flexibility for line managers. When it comes to tracking productivity, OKRs aren’t the only game in town. There’s the STAR method and then the SMART goals, the tiered framework, and the list goes on and on. Many enterprises will leverage several methodologies across the organization, based on departmental and functional nuances.
600 customers is right about the point most tech providers start to see blockers in going to market by being limited to one approach. Let’s hope some of that $50 million is going toward supporting custom-defined approaches to the process.
$5 billion of VC was invested across all HR tech globally during 2020. $1.4 billion was invested in talent management. Get the full report here.
Source: We raised $50M to shape the way businesses operate
Press Release: Ally.io Raises $50M Series C to Transform Goal Management and Bring Purpose to Every Employee’s Work