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Lean HR: Applying Process Excellence to Your Practice

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Lean principles have been used for years in the manufacturing world, and have started to make an impact in the office as well. These tools can provide the foundation to building a systematic approach to improving your HR practice and lowering costs. In this session, we will review a sample structure for project generation, selection and governance. Additionally, we will apply these tools in an interactive session to create a list of potential actions attendees can use on their return to their organization. The intent is to provide a high level overview of the methodology, provide tools that can be taken and implemented, and provide experience applying the tools within the session.

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Lean HR: Applying Process Excellence to Your Practice

  1. 1. Lean HR Dwane Lay VP of Customer Experience Dovetail Software
  2. 2. 2
  3. 3. L E A N ess mployees re eeded
  4. 4. Value Added Parameters Resumes Interviews Non-Value Added Waiting Approvals Forms
  5. 5. TRANSPORT ATIONINVENTORY MOVEMENT WAITING OVERPRODU CTIONOVERPROCE SSINGDEFECTS UNDERUSED PEOPLE
  6. 6. Business As Usual Project Work
  7. 7. Business As Usual Project Work
  8. 8. Bottom Up!
  9. 9. Bottom Up! Top Down!
  10. 10. Name Influen ce Involvemen t Mom Critical Withhold love Dad Critical Withhold golf Boss Signific Withhold job My New Tattoo!
  11. 11. Business Strategy HR Strategy
  12. 12. Bottom Up! Top Down! Outside In!
  13. 13. 30
  14. 14. 32
  15. 15. 35
  16. 16. A series of activities that transform a set of inputs into a specific set of outputs. Everything we do is a process. PROCE SS
  17. 17. Output: Goods, Services, Products Function: The steps that transform the Inputs Inputs: Equipment, Process, People, Environment, Materials, Management
  18. 18. Y to X Tree - Applying LSS Principles to HR Apply LSS Principles LSS Metrics LSS Deployment Sessions LSS ROI LSS Belt Certifications Y X – Level 1 X – Level 2 LSS Champion Certification Number of BB/GB Projects Completed Project Tracking Mechanism
  19. 19. Y to X Tree - Revenue Growth +15% Revenue Growth +15% Service Personnel Sales Personnel Retention of top talent Sales training for new/existing team Y X – Level 1 X – Level 2 Finance Personnel Revised comp plan to emphasize revenue Exit plan for bottom 10%
  20. 20. Fishbone Construction Identify the problem to be solved Top Talent Leaves
  21. 21. Fishbone Construction Define the categories (bones) of the causes People Materia l Proces s Environ ment Equipm ent Manage ment Top Talent Leaves
  22. 22. Fishbone Construction Construct potential cause detail Compensati on Training Culture Product Stay InterviewTools Strategy Leaders Team Projects Recogniti on Tech Territory Turnover Peers Job Market People Materia l Proces s Environ ment Equipm ent Manage ment Top Talent Leaves
  23. 23. Fishbone Construction Prioritize causes for investigation People Materia l Proces s Environ ment Equipm ent Manage ment Top Talent Leaves Compensati on Training Culture Product Stay InterviewTools Strategy Leaders Team Projects Recogniti on Tech Territory Turnover Peers Job Market
  24. 24. Well there’s your problem.
  25. 25. $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 Y = f(X1, X2, X3…) Chart of Electricity Consuming Devices
  26. 26. Impact Category Definition Net Hard Savings Total estimated hard savings less investment to implement. Number of Task Owners Total number of people performing the job function within the impacted area. Impact Scope Area of project impact, usually geographic. Strategic Impact How closely related is the project to business goals? Effort Category Definition Project Expense (T&E) Expected spend on travel to bring the project team together to execute the project. Does not include implementation costs. Time Expected time to execute project and begin realizing savings. Functions Involved Number of functions that are responsible to execute the project and capture the savings. Systems Impact/Change Impact the project implementation will have on any of the HR systems or applications.
  27. 27. The DMAIC Model D - Define: Identify the problem/ opportunity for improvement - Define Y M- Measure: Can we measure Y effectively? Create the baseline and goal. A - Analyze: Identify the key factors (X’s) affecting Y I - Improve: Identify, evaluate, and select the best solution(s) to improve Y C - Control: Execute the plan to improve Y, sustain and Control Performance Improve Performance Analyze Opportunities Measure Performance Define Opportunities
  28. 28. Dwane Lay dlay@dovetailsoftware.com LeanHRBlog.com Twitter: @DwaneLay www.facebook.com/dtlay hwww.linkedin.com/in/dwanelay

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