LEAN Whitepaper-Embracing a LEAN Culture

8/2/2019 LEAN Whitepaper-Embracing a LEAN Culture

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RecRuitment

pRocess

outsouRcing

business

pRocess

outsouRcing

contingent

woRkfoRce

outsouRcing

Human

ResouRces

consulting

caReeR tRansition

& oRganizational

effectiveness

executive

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Think ouTside.

embracing alean culTure:achieving operationalexcellence in recruitmentthrough a provenmanuacturing philosophy


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4/23embracing a lean culTure |

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By embracing the undamentals o Lean manuacturing,

HR leaders at GE Healthcare realized they could lit

recruitment to new heights o efciency and quality.

insighT inTo lean01


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Few organizations epitomize process excellence as

succinctly as General Electric, whose global innovations across myriad

businesses have made the household brand a leader in every one o

its markets. So it might seem surprising that GE Healthcare, one o

the companys astest growing divisions, began implementing Lean

manuacturing methodology within a service line only three and a

hal years ago, even though manuacturers around the world have

been involved with Lean or decades. Was this corporate giant simply

lagging its competitors?

On the contrary, GE Healthcares use o Lean methodology was

ar ahead o its timerearming its status as a trailblazer. The

company had already implemented this highly eective quality

system throughout its manuacturing acilities long ago. But in 2006,

GE broke new ground by adopting the basic tenets o Lean within

its business process services, beginning with the critical unction o

recruitment.

By embracing the undamentals o Lean manuacturingidentiying

value-creating activities, eliminating waste, and ocusing on

continuous improvementHR leaders at GE Healthcare realized that

they could lit recruitment and other back-oce unctions to new

heights o eciency and quality. Moreover, the initiative would give

business partners more insight.

Ultimately, this has been about providing really smart, deliverabledata to our clients and then saying to them, Here are not only the

benchmarks we started rom, but here are the additional eciencies

we can deliver. We have a story we can tell, explained Steven Brown,

talent acquisition leader at GE Healthcare and one o the architects

behind the companys Lean recruitment initiative. We are driven by

improvements. We go over this on a weekly, monthly, and yearly basis

so we expose ourselves to how we are doing.

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becoming lean:

how To geT sTarTed in recruiTmenT

Understanding the Lean philosophy and making a commitment to it in your organization is

a considerable investment. It requires executive sponsorship, buy-in rom the rank and fle,

plus the patience and resources to make it successul. However, when executed well, the

eort can signifcantly improve how you acquire talent.


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Browns outlook refects the Lean philosophy in every respect. As

disciples o continuous improvement, practitioners train themselves

to guard against complacency and remain vigilant in identiying and

solving breakdowns in their processes. Although many companies

have applied the methodology to manuacturing, ew have adopted

it within a business process, where advocates say similar success

can be achieved. Thats why GE Healthcares eorts are considered

groundbreaking, especially in the eld o talent acquisition, an

increasingly strategic service that can give an organization real

competitive advantage.

As part o its Lean journey, GE Healthcare enlisted the support o

its external recruitment service provider, Kelly Outsourcing and

Consulting Group (KellyOCG), which had been an integral part o the

companys recruitment services since 1999. As a learning exercise

or both partners, Lean implementation at GE Healthcare resulted

in cultural shits not only to its internal processes but also to those

o KellyOCG. And now the global outsourcing service provider is

bringing its Lean expertise to other organizations.


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kaizen:

A philosophy

o ongoingimprovement



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A lead HR Outsourcing analyst explained that many

companies today are considering various ways to

standardize and streamline their recruitment processes.

Fad or here To sTay?02


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But as many industry veterans know, quality systems come

and go, and there will always be a ad o the day clamoring or the

attention o operational leaders. Remember ISO 9001? Companies

couldnt le or registration ast enough, but ISOs lingering impact

on corporate culture has aded just as quickly. So what makes Lean

any dierent than previous ads? How can a manuacturing initiative

improve the workings o a business process? And are the benets o

implementing Lean methodology worth the eort?

There is no doubt in my mind that this is a good thing, said Gary

Bragar, lead HR outsourcing analyst at NelsonHall, a global market

analyst and advisory rm. He explained that many companies today

are considering various ways to standardize and streamline their

recruitment processes as the pressure to acquire top talent intensies.

Using a disciplined approach such as the Lean methodology is a smart

way to organize and execute those goals.

Indeed, a number o world-class organizations now apply Lean

principles outside o their manuacturing activities. In his book Going

Lean, author Stephen Rua cites standouts such as Walmart and

Southwest Airlines as pioneers in adopting Lean to combat a turbulent

business environment. The lesson here is that even when external

orces are restless, companies can weather the storm by adhering to

the stabilizing orces o a Lean culture.


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Lean is not a ad; Lean is a liestyle. Lean practices enable an organization to reduce development

cycles, to produce higher quality services and products at a lower cost, and to use resources more

efciently. The application o Lean is now an integral component o our RPO solutions.

candy lewandowski:

v t rpo t ,

k ot ct g



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Just as this approach is capable o turning out a

better car, when applied to recruitment, practitioners

can expect a more efcient and responsive process

or fnding candidates.

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While the Lean movement within a business process

remains nascent, its adoption by the manuacturing community

has been ongoing or decades. Global carmaker Toyota, whose

production system on which the term Lean was coined, leveraged

this approach to grow itsel into the worlds leading automobile

manuacturer. The Toyota Production System (TPS) was so eective

that it spawned an entire industry based on its study. Today, the Lean

philosophy has been adopted by organizations around the globe,

with thousands o trained disciples practicing its methods.

The benets to HR have been documented. According to a study

conducted by two researchers at Coventry University1, Lean principles

applied in a pilot project to improve candidate recruitment at the

institution helped to signicantly raise outcomes. Involving sta rom

the universitys HR recruitment team, external recruitment agencies,

and IT services, as well as customers rom library services, academic

aculty, and student servicesthe project netted a 20 percent

reduction in overall time to approve and ll sta positions. More

importantly, the exercise also helped HR to identiy non-core, ancillary

activities that occupied their time, enabling them to simpliy and

expedite the entire process.

What exactly, then, is the Lean philosophy and how can it be

leveraged to improve corporate recruitment?

In essence, Lean manuacturing is a philosophy in which practitionerscommit to continuous improvements using critical tools to help

them identiy and eliminate waste and irregularities in their

processes. Although it stemmed rom the automotive shop foor, its

undamental tenets can be applied to the back oce as well, since all

organizational activities involve some degree o waste or duplication.

Just as this management approach is capable o turning out a better

car, when applied to recruitment, practitioners can expect a more

ecient and responsive process or nding candidates. Ultimately,

because practicing organizations reduce waste and non-value-added

activities, they also cut costs.

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1 Martin, S. and Arokiam, I. (2008), Investing to Improve OrganisationalDevelopment and the link with Lean or Continuous Quality Improvement,proceedings rom the 11th QMOD Conerence, Helsingborg, Sweden.

Vsm:

Value Stream

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muda:

Waste, activities

and results tobe eliminated

It all starts with Value Stream Mapping (VSM), a process by which

managers examine all activities that take place to produce a product

or service. As part o the Lean philosophy, tasks that do not create

value or the customer are considered wasteul, so in drawing up a

VSM, practitioners identiy waste to be targeted or elimination.

In recruitment, or example, an organization may duplicate eorts

when a candidate slate is presented to the hiring manager. Some

companies employ multiple applicant tracking systems that might

require the same inormation to be input several times to meet

customer needs, compliance requirements, or or data retention. This

duplication clearly generates wasted time that adds no value to the

hiring manager or the candidate. By drawing up a comprehensive

VSM, Lean practitioners can address all the unnecessary eorts in the

recruitment process. This allows team members to produce a uture-

state VSM that is ree o the identied waste. Visually, it provides a

map or any organization to ollow.

7 Types oF wasTe recruiTmenT process Flow

Waiting Escalations/approvals, waiting or eedback,

waiting or oers to be entered

Inventory Oers to be processed, rsums to

be reviewed

Deects Incorrect data, requisition olders not updated

Extra Processing Updating JobFlow, Brass Ring, or other ATS

Transportation Shipping oer letters, takes 24 hours

Overproduction Processing beore next operation is ready,

processing prior to need

Motion Tracking down paperwork, walking to and

rom printer, ax, or ling cabinets


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I VSM represents a roadmap or the Lean journey, then the 5 Ss might

be considered gas or the road. These are ve essential principles or

operating in a Lean environment to help ensure process consistency.

They are:

| sorT separation o necessary items rom unnecessary items

(identiying waste)

| seT in order arrange items according to how they will be used

(an enabler o eciency)

| shine maintain work area or sorted and set-in-order items

(maintaining workplace hygiene)

| sTandardize ensure sort, set-in-order, and shine steps are

consistently ollowed (reducing process variations)

| susTain maintain and improve sort, set-in-order, shine, and

standardize steps (ensuring Lean eorts are ongoing)

These ve principles set the oundation on which Lean organizations

execute their operational plans. Each step helps to ensure that

workfow is not compromised by unanticipated problems. And when

issues do arise, all team members pitch in to resolve them.

When the 5 S concept was rst developed, it was aimed at improving

production fow on the manuacturing foor. However, these ideas

can be applied with equal success to recruitment, where unnecessary

activities slow hiring and hinder service delivery to customers. Each

o these tools acilitates waste elimination and minimizes process

variation.

Think about the 5 Ss in recruitment. How do we take it rom the

manuacturing foor to the oce? The foor is your desk and ling

system, where you process your work. It is a sustainable solution. The

principles have been around orever; its a matter o how to apply

them, and how to challenge yoursel to continue applying these

principles to maintain order and eciency daily.


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The FiVe s:

Sort

Set in orderShine

Standardize

Sustain


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kanban:

A card used

to visually faga problem

As the 5 Ss are implemented, organizations typically assemble kaizen

teamsstakeholders who help sustain and administer continuous

improvements. Kaizen, which simply means improvement in

Japanese, is the practice o making changes, monitoring results, and

making adjustments as needed. Without this important component,

Lean would be unsustainable.

Because o the collaborative environment it creates, Lean encourages

transparency into every team members role, so others can weigh in

with suggestions on how to resolve a particular colleagues dicult

issues. Furthermore, although individuals are highly accountable

or their work, the culture is less about blame than about problem-

solving. It also allows or best practices to be more visible, and thus

shared more readily.

When a problem is identied, a kanban, or card is used to visually

fag the problem. For instance, i interview scheduling oten results in

conficts, a kanban is pulled and a kaizen team member documents

the nature o the problem, requency o occurrence, the triggering

mechanism, and other relevant inormation. Are entry errors being

made in the ATS? Is there a communication breakdown between

recruiters and candidates? The kaizen team undertakes a three-step

approach to resolving the issue, including problem identication,

resolution brainstorming, and validation o the solution.

Separately, each o these tools contributes incremental changesin workfowbut when implemented cohesively, they can have

a signicant impact on an organizations culture. However, Lean

experts caution that new practitioners must be patient and allow it to

permeate an organization over time. Rushing to judge its eectiveness

may result in a skewed picture.

As you go through the Lean journey, some things might not seem

like they would make a huge impact, but over timemonths or years

laterthats when you really understand their impact. You must have

patience, advised Roxanne Kitts, U.S. stang process leader within

the KellyOCG RPO practice.


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One o the key benefts or GE Healthcare was

Leans emphasis on standardization.

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Indeed, even or an organization already obsessed with

operational excellence, adding Lean made a dierence at GE

Healthcare. Adopting this philosophy in recruitment was a natural

progression in the companys pursuit o perection, Steven Brown

said, adding that even beore the business began investing in Lean,

it was already practicing Six Sigma, another quality management

approach. However, Lean methodologies urther elevated the

companys ability to deliver high-quality candidates in a timely

manner.

One o the key benets or GE Healthcare was Leans emphasis

on standardization. Because the company had made numerous

acquisitions over the years, dierent business lines had dierent

approaches to recruitment. Challenges around compliance, reporting,

benchmarking, and other issues were inevitable. This created

tremendous ineciencies in recruitment services and slowed the

delivery o qualied candidates to hiring managers. For a business

highly dependent on its human capital, this was a market handicap.

One o the challenges that we have is the way GE Healthcare has

evolved through acquisitions. We are made up o many businesses.

To have dierent processes to manage each became a challenge you

wouldnt believe, said Brown, recalling the companys recruitment

problems prior to the start o its Lean journey.

Because GE Healthcare had outsourced its recruitment to KellyOCGor more than a decade, when deciding to adopt a Lean culture,

it also needed the support o its service provider. In act, it

shepherded KellyOCG through the process by allocating a trained

quality black-belt to serve as an advisor or six monthsturning the

normal customer-vendor relationship on its head. But i it seems GE

Healthcare was being extraordinarily altruistic, Brown conceded that

helping KellyOCG was also sel-serving. By improving the workfow

o its provider, GE Healthcare would ultimately reap the benets.

Moreover, because the two companies operated synergistically, he elt

both companies would need to adopt a Lean culture to maximize the

return on investment.


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Kelly has been part o our stang organization or 10 years, so they

had seen our ineciencies too. They had lived through the challenges

on the operational side, Brown said. We have been in this together

with Kelly since day one. We have been lucky in that we havent had

to change partners.

GE Healthcare began implementation o Lean recruitment in 2006,

producing its rst VSM in May o that year. Relying on an internal

expert who had studied Lean at Toyota and General Motors, the

company moved steadily toward its uture state, building a center o

excellence along the way and creating a knowledge base shared by

other GE businesses such as GE Money, the parent companys nance

business.

Brown said his own team and KellyOCG team members have becomeso immersed in the philosophy that they instinctively tackle problems

in a highly systematic and standardized way. Today, the impact on

hiring managers is that they receive better and more consistent

service, without having to learn about Lean.

Ultimately I dont think the customers care about how you deliver

service, as long as you do it well, Brown concluded.


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Although Talecris had standardized some o its activities,

the Lean tools and principles introduced by KellyOCG

elevated its recruitment to a new level.

lean on a projecT basis


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GE Healthcares implementation is a textbook example o

a permanent cultural shit, but many companies today outsource

their hiring on a project basis. How would a service providers

Lean practices aect them, i at all? For one global organization,

Lean literally became a matter o lie and death. When Talecris

Biotherapeutics, a maker o biotherapeutics and biotechnology

products, needed to open numerous plasma collection centers

in 2008, company ocials were worried about stang up quickly

enough to meet their deadlines. Suzanne Eller, the recruiting manager

and HR business partner, said eective recruitment became an

imperative to all.

Our concern was that i we didnt have these plasma centers

ully staed and trained, the centers would not open, meaning no

production and no service to patients. I we didnt have donors come

to donate plasma, the people needing our pharmaceutical products

would not get them. It was literally a matter o lie and death, she

recalled.

Even though Talecris had internal recruitment capabilitieseach o

the companys three divisions had its own recruiterits sole recruiter

or the new centers was overwhelmed by the volume o work. It

quickly became clear to Eller that Talecris needed outside help.

The company had a successul relationship with Kelly Services

or temporary hiring, but positions at the plasma centers werepermanent. Nevertheless, Eller said she elt condent the provider

could help deliver the right candidates. And with a deadline looming,

Talecris needed to engage external support quickly.

Although Talecris had standardized some o its activities, the Lean tools

and principles introduced by KellyOCG elevated its recruitment to a

new level. In identiying workfow problems and using scorecards to

evaluate the process, the KellyOCG team helped Eller to better plan

and set deadlines. Clear timelines were established or each position

or example, an assistant manager had to be lled three to our months

prior to a centers opening, while a phlebotomist was to be hired witha three-week lead time. Furthermore, kaizen team members worked

closely with hiring managers to perorm gap analysis o any bad hires.

The Lean approach provided Eller with a clear vision o what needed to

be accomplished.


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It was an interesting concept. What would happenand the best

benetwas that we could see how many positions needed to be lled

in a geographic area. We could set deadlines, she said. The outcome

was better than I had expected.

Although Talecris didnt ully adopt Lean within its recruitment

organization, it was the beneciary o an innovative partner that had. At

a time when companies are ocused on improving eciencies, its clear

that a proven management philosophy such as Lean can help recruiters

achieve this goalregardless o whether they embrace it internally

or through a provider. By ocusing on waste, keeping team members

engaged, and promoting continuous improvements, Lean practitioners

are assured o better outcomes and happier customers. In the end,

this presents all organizations involved with competitive business

advantage.


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conclusion


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There is some conusion over how Lean is implemented in a service

environment or within a business process, so its important or new

practitioners to become ully oriented with the concept and how

it applies to their organizations beore getting started. A myriad o

courses and educational material are available, as are consultants

and practice gurus. Companies can send sta to be trained in Lean

methodologies or invite advisors to walk them through the process. In

any o these instances, a signicant investment is required.

Another option is to engage a recruitment process outsourcing service

provider with a strong Lean background that is capable o passing on

its knowledge. This enables the hiring organization to observe Lean in

practice without having to disrupt its ongoing recruitment work. Using

Lean-embedded processes, such a provider can help clients to ease

into the transition and eventually work in lock-step under the same

Lean culture, sharing all lessons learned and a common vision or a

uture state. When considering such a relationship, remember to ask the

ollowing about the vendor:

| How long has the provider practiced Lean in its own culture?

| How has it applied Lean to other clients to help improve their

recruitment eorts?

| Does the provider have sucient expert resources to help with your

implementation?

| What sort o knowledge base does it oer or your use?

These and other questions will help you identiy the best Lean vendors

to t your needs, and those that can help you successully engender a

sustainable cultural shit in your workplace.


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lean journey checklisT


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Use this quick and easy ten item checklist as a guideline to put your

priorities and lean plan into action. Once you have reached the end o

this list, value stream map your process and repeat!

Invest time in understanding lean concepts (books, webinars,

courses, etc.) or engage a consultant.

Communicate your plan to incorporate lean into the organization as

a new liestyle. Explain the reason or embarking on this journey.

Conduct internal team training or the business group implementing

lean. This should include lean role and responsibility denition,

timelines and expectations.

Value stream map your current and uture state process.

Organize your work and team environment (ie. 5S)

Create kaizen, audit and change management teams.

Create visual management tools.

Review and communicate kaizens, VSM, team roles and goals,

action items and ollow up.

Communicate results, ongoing eorts and next steps.

Celebrate successes! Record and report metrics (ie.return on

investments and process eciency, value and reductions in waste

accomplished, customer satisaction, etc.).


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abouT The auThor

d. zachary misko


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D. Zachary Misko is global director o the Recruitment

Process Outsourcing (RPO) practice o Kelly

Outsourcing and Consulting Group (KellyOCG). The

group is part o Kelly Services, Inc. (NASDAQ: KELYA,

KELYB), a leader in providing workorce solutions,

headquartered in Troy, Michigan.

In this role, Misko works with Fortune 500 companies throughout the world

to develop and implement processes that improve and drive recruitment andretention solutions. Misko joined Kelly Services in 2002 with more than 15

years o human resource and management expertise in areas including direct

merchant, retail, biotechnology, lie sciences, and stang services. Within

these industries, Misko held various positions in the areas o recruitment,

employment law, employee relations, consulting, strategic human resources

planning, perormance management, training, and compensation. His

experience includes managerial posts at several companies: Promega

Corporation, Lands End, and Younkers, Inc.

Misko has earned many proessional certications, including Certied

Diversity Recruiter (CDR), Certied Internet Recruiter (CIR), and Proessional inHuman Resources (PHR). He has also completed advanced certication rom

the Department o Industry, Labor, and Human Relations.

Misko holds a bachelors degree in business administration with an emphasis

in human resources rom Carroll College in Waukesha, Wisconsin. He is

currently a member o the Society or Human Resource Management (SHRM),

the Employers Management Association (EMA), and the National Association

o Personnel Services (NAPS). He is a past president o the Metro Milwaukee

SHRM chapter. He is considered an industry expert in applying Lean

methodologies in the talent acquisition process.

Currently, Misko is a senior executive board member o Best Practice Institute

(BPI) and serves on the Advisory Board or EnticeLabs. He is also co-chair o

the Human Resource Outsource Association (HROA) Research Committee

and a member o the Human Resource Outsource Association (HROA)

Outreach and Education Committee. He has had articles published in many

print and online publications, including Workorce Management magazine,

HRO Today, Human Resource Executive magazine, and HR.com. Misko is

a contributing author to the book, Best Practices in Talent Management,

published in December 2009.


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abouT kelly ouTsourcing and consulTing group

KellyOCG is a global leader in innovative talent management solutions in the

areas o Recruitment Process Outsourcing (RPO), Business Process Outsourcing(BPO), Human Resources Consulting, Career Transition and Organizational

Eectiveness Consulting, Executive Search and Contingent Workorce

Outsourcing (CWO), which includes Independent Contractor Solutions. Further

inormation about KellyOCG may be ound at kellyocg.com.

Documents

LEAN Whitepaper-Embracing a LEAN Culture