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Eli Goldratt & the Recruitment GOAL

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Eli Goldratt & the Recruitment GOAL

  1. 1. What Can Talent Acquistion Learn from Eli Goldratt Goal Constraints Throughput Eli Goldratt’s Theory of Constraints and the Recruitment Goal 3.5x 2.0x The photograph above of a hot air balloon breaking through a group of clouds is a freedom metaphor of breaking against a constraint, and rising above to achieve a goal. The Big Idea behind this unassuming potray is a methodology made famous by Dr Eliyahu Goldratt, who conceived the Theory of Constraints and introduced it to a wide audience through his 1984 novel, The Goal. The similarities of the manufacturing plant, in this fictonal story by Eli Goldratt, and many corporate recruitment departments are striking & its relevance endures even thirty years after it was written Goldratt’s Theory of Constraints applied to Talent Acquisition Shortly after the turn of the century, when Bento Boxes had become Japan’s best known contribution to the culinary world, came the widely popular conveyor belt sushi restaurants. Also known as sushi-go-rounds, the customers could simply pick little portions of fresh sushi and sashimi oftheir choice from a moving conveyor belt & pay based on the number & type of sushiportions consumed. The idea combined japanese minimalism & their loathing for wastage The Theory of Constraints thinking process similarly draws upon this minimalist approach and is built around the core that Every process has a single constraint and that the total process throughput - the rate at which the system makes money through sales can only be improved when the constraint is improved Only improvement of the constraint will further the GOAL Achieving More Profit This concept when applied to recruitments helps us understand the goal as: To maximize the number of quality hires/month for the Organization Eli Goldratt calls this “Throughput” & that there is a fixed amount of Time, Money & Resource ~ constraints that need to be optimized Time Money Resources A Staffing Supply Chain viewed through the lens of Throughput & Constraints shifts the perspective of the recruitment function from Transaction driven to a Relationship driven process More is better philosophy to how efficient we are with the candidate activity in the staffing supply chain funnel Quantity & Cost Containment to Quality of Hire The Throughput is a great TA metric for these very reasons. Most importantly, it illustrates the efficiency & effectiveness of the entire recruiting process by focusing on cradle to grave hiring ratios & help identify low and high performance process zones as exhibited below Interview to Offer Time to Fill Resume to Offer Average Cost per Hire Sourcing Hrs/Qualified Candidate Sourcing Channel Efficiency Offers to Hire Opportunities to analyze fix & improve Best Practices to review, share & apply Low Performance High Performance With Througput everyone sees the value of having a defined role and all stakeholders have a skin in the game enabling a visible bottom-line case The Recruiting function, as per the findings of a research study by BCG below, when executed well, has the highest business impact among all TM functions RG PM TI Onboarding & Retention Managing Talent Employer Branding 3.5x 2.0x 5.5x Performance Management Developing Leadership Enhancing Employee Engagement 2.5x 1.9x 4.4x 2.2x 2.1x 4.3x 2.4x 1.8x 4.2x 2.1x 2.0x 4.1x 2.1x 1.8x 3.9x 1.8x 1.6x 3.4x RG: Revenue Growth; PM: Profit Margin; TI: Total Improvement Recruiting Source: Boston Consulting Group/WFPMA - From Capability to Profitability, 2012 Focus is the essence of Theory of Constraints and using the right metrics, recruiters will be encouraged to focus their behaviours on the causes and not the symptoms of recruitment success Source/Photo Credits Singkham: Shutterstock EirngKwan: Shutterstock Author Pradeep Sahay www.toc-goldratt.in en.wikipedia.org/wiki/The_Goal

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