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Henesey Sigma


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Cathy Henesy's Spring 2008 ERE Expo presentation

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Henesey Sigma

  1. 1. Using Six Sigma to Develop a Talent Acquisition Process Cathy Peterson-Henesey, SPHR Leader, Talent Acquisition Trane
  2. 2. What makes McDonalds' successful? <ul><li>Is it because they have the best hamburgers in town? </li></ul><ul><li>Is it because it is cheaper than eating in? </li></ul><ul><li>Is it because it is a healthy choice? </li></ul><ul><li>Consistent Product/Process </li></ul><ul><li>Documented Training Guides/Process Maps </li></ul>
  3. 3. Six Sigma = Process Improvement <ul><li>What is Six Sigma? </li></ul><ul><li>Six Sigma is a methodology to manage process variations that cause defects, defined as unacceptable deviation from the mean or target; and to systematically work towards managing variation to eliminate those defects [1] . The objective of Six Sigma is to deliver high performance, reliability, and value to the end customer. It was pioneered by Bill Smith at Motorola in 1986 [2] and was originally defined [3] as a metric for measuring defects and improving quality; and a methodology to reduce defect levels below 3.4 Defects Per (one) Million Opportunities (DPMO). Six Sigma has now grown beyond defect control. </li></ul><ul><li>Six Sigma is a registered service mark and trademark of Motorola , Inc [4] . Motorola has reported over US$17 billion in savings [5] from Six Sigma to date. </li></ul><ul><li>Wikipedia </li></ul>
  4. 4. Who is using Six Sigma? <ul><li>AlliedSignal and General Electric became early adopters of Six Sigma, with GE reporting benefits of more than US $300 million during its first year of application. Their CEOs, Larry Bossidy and Jack Welch played a vital role in popularizing Six Sigma. </li></ul><ul><li>Starting with manufacturing , today Six Sigma is being used across a wide range of industries like banking, telecommunications, insurance, marketing, construction, healthcare, and software, and NOW HR. </li></ul><ul><li>Symbol </li></ul>
  5. 5. The Key Players <ul><li>Executive Leadership includes CEO and other key top management team members. They are responsible for setting up a vision for Six Sigma implementation. They also empower the other role holders with the freedom and resources to explore new ideas for breakthrough improvements. </li></ul><ul><li>Champions are responsible for the Six Sigma implementation across the organization in an integrated manner. The Executive Leadership draws them from the upper management. Champions also act as mentor to Black Belts. At GE this level of certification is now called &quot;Quality Leader&quot;. </li></ul><ul><li>Master Black Belts are identified by champions, act as in-house expert coach for the organization on Six Sigma. They devote 100% of their time to Six Sigma. They assist champions and guide Black Belts and Green Belts. Apart from the usual rigor of statistics, their time is spent on ensuring integrated deployment of Six Sigma across various functions and departments. </li></ul><ul><li>Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities. They operate under the guidance of Black Belts and support them in achieving the overall results. </li></ul><ul><li>VOC – Voice of the Customer – soliciting feedback from the end user. This could include applicants, customers, and other employees. </li></ul><ul><li>Team members – Subject Matter Experts – these are individuals that are asked to be part of the team for their knowledge of the process. </li></ul>
  6. 6. Case Study: The Deviation <ul><li>We decided to tackle the global process of talent acquisition because it was recognized as a huge cost to the business and a huge impact to the bottom line particularly in slow days to fill. Metrics associated: </li></ul><ul><ul><li>Cost per hire – although obsolete </li></ul></ul><ul><ul><li>Cost of vacant position – real dollars </li></ul></ul><ul><ul><li>Quality of hire- best talent available </li></ul></ul>
  7. 7. How did we know we had a problem? <ul><li>Hiring manager missed interviews </li></ul><ul><li>Wrong offer letters were going out </li></ul><ul><li>Wrong relocation packets were going out </li></ul><ul><li>Offer rejects at last minute </li></ul><ul><li>Salary misalignments </li></ul><ul><li>Cancelled interviews </li></ul><ul><li>Working on unapproved job requisitions </li></ul><ul><li>Spending too much money on search firms </li></ul><ul><li>Duplicate candidates in the system </li></ul><ul><li>Telling candidates wrong information </li></ul><ul><li>Employees starting before background check complete or being entered in Peoplesoft </li></ul><ul><li>No paychecks for a month for some employees or going to wrong place </li></ul><ul><li>Competition among our divisions for same candidate </li></ul><ul><li>These were/are all defects in our manufacturing line </li></ul>
  8. 8. Where did we start? <ul><li>DMAIC methodology– used to improve an existing process </li></ul><ul><li>Basic methodology consists of the following five phases: </li></ul><ul><li>Define formally define the process improvement goals that are consistent with customer demands and enterprise strategy. </li></ul><ul><li>Measure to define baseline measurements on current process for future comparison. Map and measure process in question and collect required process data. </li></ul><ul><li>Analyze to verify relationship and causality of factors. What is the relationship? Are there other factors that have not been considered? </li></ul><ul><li>Improve optimize the process based upon the analysis using techniques like Design of Experiments . </li></ul><ul><li>Control setup pilot runs to establish process capability , transition to production and thereafter continuously measure the process and institute control mechanisms to ensure that variances are corrected before they result in defects. </li></ul>
  9. 9. DEFINE – Process Maps
  10. 10. DEFINE – Process Maps
  11. 11. MEASURE <ul><li>We gathered data on 2006 hires including costs, sources, etc. </li></ul><ul><li>We conducted a survey of managers and new hires to see what we were doing well and what opportunities do we have to improve </li></ul>
  12. 12. What did we learn? <ul><li>We didn’t agree on process steps </li></ul><ul><li>We didn’t follow the steps that we conceptually believe should be followed (Short cuts) </li></ul><ul><li>We were all doing things differently from division to division </li></ul><ul><li>High costs of search firm fees </li></ul><ul><li>Inconsistent documentation of process </li></ul><ul><li>ATS could not meet our compliance requirements </li></ul><ul><li>More than 40 FTE’s were touching the recruiting process, but we only had 5 fully dedicated recruiting individuals. </li></ul><ul><li>All of these results affects our “defects” in our “manufacturing line” </li></ul>
  13. 13. ANALYZE <ul><li>Develop and design alternatives </li></ul><ul><li>Step 1 – Use Six Sigma tools to analyze process – FMEA and Cause and Effect Matrix </li></ul><ul><li>Step 2 - Upgrade our ATS system </li></ul><ul><li>Step 3 - Look for “Quick Hits” to save the company money </li></ul><ul><li>Step 4 - Define an ideal process/perfect world </li></ul>
  14. 14. IMPROVE and CONTROL <ul><li>Document the processes with detail – remember the McDonald’s training manual </li></ul><ul><li>Set up pilot programs to test the results </li></ul><ul><li>MEASURE and ANALYZE again </li></ul><ul><li>Change infrastructure if necessary </li></ul><ul><li>Continuous measurement and make adjustments accordingly </li></ul>
  15. 15. What will be the results? <ul><li>Highly sophisticated global ATS system that ties into Peoplesoft, background checking and assessments (testing, DDI) </li></ul><ul><li>Dedicated Talent Acquisition team that is solely responsible for sourcing and tracking the best employees </li></ul><ul><li>Dedicated college recruiting teams </li></ul><ul><li>Centralized services such as background checking, interview arrangements, offer generation – any process that is replicated across the country. </li></ul><ul><li>Extensive metric tracking and continuous process improvement programs……more Six Sigma projects including offer process, onboarding, global recruiting. </li></ul>
  16. 16. Questions? <ul><li>My question at the beginning: </li></ul><ul><li>Why do we have to use SIX SIGMA to potentially know what we already know? It is a methodology that is proven and understood by executive level. </li></ul><ul><li>What other questions do you have? </li></ul>
  17. 17. Contact information <ul><li>Cathy Henesey </li></ul><ul><li>Leader, Talent Acquisition </li></ul><ul><li>[email_address] </li></ul><ul><li>903-581-9109 - direct </li></ul><ul><li>903-330-2722 - cell </li></ul>