Are there big changes on the horizon for Cornerstone? That is the question today for many Cornerstone clients and partners. During their quarterly earnings call last Wednesday, Cornerstone announced quite a few changes to their financial structure and future plans. First, I think it is all good news for Cornerstone Clients and Partners. The benefit for everyone is an increased focus on profitability and long-term sustainability.
Possibly the biggest announcement during last week’s earnings call was the $300 million investment by Silver Lake and LinkedIn (Microsoft). As a client, why is this investment important to you? Three reasons why:
1. This investment creates stability. For the past six months or so, Bluewater has been hearing about the potential for Cornerstone to be purchased by a big competitor, ERP company or even a private equity firm. The thought of an acquisition is scary to any client because you never know what you are going to get with the new company. It is especially unnerving to those of us whose livelihood is associated with the success of Cornerstone in some way. Would the acquiring company improve or wreck what Cornerstone has built? Fortunately, we don’t have to ponder that question. Because of the $300M investment, Cornerstone now has the stability to allow Cornerstone’s CEO Adam Miller and team to focus on the future of the product. I like the stability and investment by Silver Lake and LinkedIn. It is not just about the money; it is also about focus.If you are interested in the impact on stock price here are a few good people to follow that have written follow up articles on the investment by Silver Lake and LinkedIn.
2. This investment provides a focus on long term development of the learning application and content. As clients and partners of Cornerstone, we all know that this technology must be used to develop people. One of the most significant learning struggles since the beginning of time is CONTENT. Content is king. Bad content is a catalyst to a bad learning experience (with or without technology), while great content usually spurs a great learning experience. Cornerstone has now shifted their focus back to content, which is a bit of a back to the future move for them as content is what they started with when the company was started as CyberU in 1999. Access to great content is critical and Cornerstone is solving this problem through their new Cornerstone Content Anytime service:
So, how is this all connected? I believe the realization of the content play is very important to Silver Lake and LinkedIn. LinkedIn is already a client of Cornerstone and they also have a partnership with Lynda.com (owned by LinkedIn/Microsoft) for the delivery of great content. I like the focus and it is clear that Cornerstone is focused on helping clients with the big content issue.
3. Lastly, this investment enables Cornerstone to continue developing its modernized learning suite. I am impressed with the direction of the machine learning environment created by the Cornerstone team. It is a good response to a changing market that is looking for an easier and a more effective way to engage learners in learning. The impact of knowledge can never be underestimated on an organization and for the future of your people. Cornerstone’s continuing investment in the development of their learning platform is critical to their client’s future success and I applaud the focus. Learning is where impact really happens.
Overall, I’m excited about the investment and the direction Cornerstone is taking with its product and with its support of their client base. I believe the value of this investment is positive. It provides stability, focus and an opportunity for all clients to do more with their investment in Cornerstone technology.
At Bluewater, we are also focused on the future of our clients. We want to see the development of our client’s people. We want to see a bright future for our clients, their employees and their partners. This is why we started Bluewater Assurance. With the rapid rate of change in technology, content and engagement, how can you be sure you’re keeping up? Bluewater Assurance. We provide the expertise you need when you need it. We ensure you maximize the value of your investment in Cornerstone. To find out more about how Bluewater can help you today, please follow the button below to discover more about Bluewater Assurance for Cornerstone.
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Look for future blog posts on the future of learning and talent management technology as we continue to explore what works in the world of people development. Thanks for taking the time to read. I am always happy to chat. Leave your comments and contact information and I will get back with you right away.