1. Lars Dalgaard, Founder & CEO
Stanford Engineering School
May 11 2009

2. About the CEO…

4. My Journey Stanford, CA
Switzerland
U.S.A.
Germany
Holland
Denmark
San Mateo, CA
Not long ago…
2001-

5. about SF

6. we’re in business

7. A company’s
workforce is
approximately 70%
of its operating
expense Getting There, a whitepaper from
KnowledgeInfusion/SuccessFactors

8. The strategy / execution gap
High
95%
50%
of employees
don’t understand
of the average
their company’s
employee’s time
strategicon non-
is spent goals
productive work
Corporate StrBalanced Scorecard: Norton/Kaplan
ategy Board: Measures that Matter
Low

9. Challenges in cultivating top talent
71%
86%
of employees say
that when they do
of the workforce
a good job, their
is disengaged
performance is
not rewarded
Watson Wyatt: Work USA Study

10. Challenges in workforce optimization
84% of large
global companies
say they are not
using their
workforce to their
full potential

11. SuccessFactors Integrated Applications

12. Old Model SaaS
Big upfront costs including Lower cost, paid as value
Purchase ongoing maintenance is received
Implementation Slow and expensive via Fast time to value
significant IT resources
& Upgrades
SuccessFactors Owns
Risk Customer Owns Risk
Risk
Customer success as
Incentives Maximize upfront deal size
evidenced by renewals

14. we are today

15. At IPO Today
Users 3.0M +
4.7M
Customers 1,400 +
2,700+
Countries 156 +
180
Industries 56 +
60
Languages 18
31

16. Cumulative Customers
2,700+
100+
30
8
1
Leading
financial
services Leading
company retailer
One of the
world’s largest
retailers Award-winning
retail bank
Leading
financial
services
company
>300,000 users
>50,000 users
>25,000 users
>10,000 users
>3 users

17. The first new
enterprise software
category in a
decade

18. Fastest Growing Public SaaS Company
161
112
60
27
8 14
4
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008
Revenue + Change in Deferred Revenue ($Millions)
18

19. Large, Greenfield Market Opportunity
Performance & Talent Estimated Potential
Management Market Opportunity
Enterprise
130mm * $35 = $4.6bn
27,500 Institutions > 2,500 Employees*
SMB
150mm * $75 = $11.3bn
89% Greenfield 9mm Institutions > 3 Employees*
Market Opportunity
$15.9bn
Source: Bersin & Associates, 2007 Note: Assumes ~80% of employees are in addressable market
Source: Dun & Bradstreet /Hoovers*, U.S. Census Bureau
(http://www.census.gov/epcd/www/smallbus.html)

20. Our five year strategy
2003 2008
Geographies 100% - North America
19% - EMEA, APAC, LATM
81% - North America
Markets 5% - Mid Market
47% - SMB, Channels, Intl.
95% - NA Enterprise 53% - NA Enterprise
Products 7% - Other Modules
40% - Performance and
Goals
93% - Performance and Goals 60% - Other Modules

21. Industry consensus that we lead the pack
TM
IDC MarketScape: Worldwide Integrated Talent Forrester Wave
Management 2008 Vendor Analysis Report Integrated Performance and Compensation Solutions
21

22. its not that secret

24. No Assholes*
respect for the individual
* It’s okay to
have one, just
not to be one

25. Passion
get a rush from what we do, or get out

26. Customer Success
making heroes of our customers through results

27. Kaizen!
continuous improvement

28. Take Risks
make mistakes, learn from them

29. Meritocracy
pay for performance

30. Support
we don’t leave our wounded behind

31. Get it Done
do whatever it (legally) takes

32. Transparency
brutally honest communication and decisions

33. Measurable Results
Points, not yardage

34. to customers

36. “Execution” – a CEO’s biggest concern
Rank Change Jul. to Oct. ‘08
1 Excellence in Execution +9.4%
Consistent Execution of Strategy
2 by Top Management +5.1%
Speed, Flexibility, Adaptability to
3 Change
+22.1%
Source: The Conference Board – CEO Challenge 2008

37. SuccessFactors customers are executing
faster…and better
Source: SuccessFactors customer survey by a top 3 management consulting Firm

38. And, the pay-off is biggest for customers
with a strategic focus
Strategic vs. Tactical = 5X Impact on Productivity
Source: SuccessFactors customer survey by a top 3 management consulting Firm

39. customers say

40. SuccessFactors is key to strategy execution
CEO
Global Head
CFO COO CIO CTO
of Sales
Performance management key to engaged
Getting everyone aligned, winning
Improved business performance
Retaining the best people
$14.2 billion “For us to win a critical ‘business has doubled in theengagement strategy.
“(This is) during these toughperformance driver’ mustaligns your
“SuccessFactors absolutely helps us drive ourwe as it set clear
“Retention of new recruits economic times year and a half
Global consumer
Global distributor of
global leader objectives Allied Building withbeen using SuccessFactors” the overall
personal performance see how their goals fold into
Employees can easily and leadership required tobusiness unit,
that for objectives has the overall goals of your create a
packaged goods
electronic parts
200 locations stronger, fasterobjectivesTextronOura whole…” Management process
functional area and Clark. company.”
strategic Kimberly of the as Performance
is a critical part of this goal.“ –Reilly, Chief Financial–Officer,Campbell, Chairman & CEO
– Brian Philip Gallagher, SVPLewis Allied Building Products
& Global President Technology
– Tom Falk, CEO

41. What’s
next for us

42. How many of you have managed
more than…
…?

43. So…
You’ve got all the answers.
You’ve got all the tools.
Right…

44. questions?

45. Lars Dalgaard, Founder & CEO