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What Can Six Sigma Teach Us About Quality of Hire?  Presented by: Erin McGlone Michael Peterson, PHR
Today’s Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Today’s Speakers ,[object Object],[object Object]
Today’s Speakers ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sharp HealthCare   San Diego’s Health Care Leader
What is Six Sigma? ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],DMAIC Methodology
[object Object],[object Object],From 3 σ to 6σ represents a  20,000  times improvement in quality.   Is 99% Good Enough? What is Six Sigma? σ 1 2 3 4 5 6 Defects Per Million Opportunities % 697,672 308,770 66,810 6,209 232 3.7 30 69 93.3 99.37 99.97 99.9997
20,000 lost  articles of mail per hour The Classical View of Quality  “ 99% Good” (3.8  ) Seven lost articles of mail per hour The Six Sigma View of Quality  “ 99.99966% Good” (6  ) 68 wrong drug prescriptions  each year 200,000 wrong drug prescriptions each year One short or long landing at most major airports every five years 2 short or long landings at most major airports daily 5,000 incorrect surgical operations per week 1.7 incorrect surgical operations per week
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],WHAT IS “LEAN”?
‘ Lean’ Thinking Complements Six Sigma ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Synergy: Variation is much easier to see with a ‘lean’ process
Lean Six Sigma Compared to Traditional Problem Solving ,[object Object],[object Object],[object Object],[object Object]
Background ,[object Object],[object Object],[object Object],[object Object]
Background ,[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Recruitment’s Six Sigma Project ,[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object]
Results ,[object Object],[object Object],[object Object],[object Object]
Questions?

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Six Sigma in Recruitment Presentation

  • 1. What Can Six Sigma Teach Us About Quality of Hire? Presented by: Erin McGlone Michael Peterson, PHR
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  • 9. 20,000 lost articles of mail per hour The Classical View of Quality “ 99% Good” (3.8  ) Seven lost articles of mail per hour The Six Sigma View of Quality “ 99.99966% Good” (6  ) 68 wrong drug prescriptions each year 200,000 wrong drug prescriptions each year One short or long landing at most major airports every five years 2 short or long landings at most major airports daily 5,000 incorrect surgical operations per week 1.7 incorrect surgical operations per week
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Editor's Notes

  1. Skip?
  2. MP Just so we can get an idea of who is in the audience, we have a couple polls here at the beginning… The first question is Does your organization have a Six Sigma initiative already?
  3. MP TO PUT OUR STORY INTO PERSPECTIVE, LET ME TAKE A MOMENT TO PROVIDE YOU A VERY BRIEF OVERVIEW OF THE SHARP HEALTHCARE ORGANIZATION. SHARP IS A NOT-FOR-PROFIT, FULLY INTEGRATED HEALTH CARE SYSTEM SERVING THE ENTIRE COUNTY OF SAN DIEGO FOR OVER FIFTY YEARS…….. And for our last polling question, please let us know what industry you work in
  4. TAKE AWAY: Iterative Ongoing Journey
  5. Is 93 percent really good enough? What if we are one of the 66,000 defects? There are many things that we need to be perfect at, eg. Patient identification.
  6. Who functions at a Six Sigma level? Airplane industry…thinking about landings. Six sigma focuses on reducing variability, it does not much matter where – could be very useful in these businesses as well. 3  capability—historical standard 4  capability—current standard 6  capability—new standard We must deliver every project, product, or service with the highest quality. In today’s marketplace, “good” is no longer good enough. The experience of several world class companies which have dramatically improved quality levels using the Six Sigma method has demonstrated that: We can be much better if we take a rigorous approach to quality improvement. Six Sigma means: A 99.99966% probability that we will not pass on a defect to the customer.
  7. MP So, today I am going to talk to you about our departments experience with a Six Sigma Project centered around process improvements with the specific goal of reducing premium pay (travelers and registry). Six Sigma and Quality of Hire is something that was not a direct part of this project, but we can talk about similarities between our project and one that would be focused on quality of hire and provide some information on how our quality of hire has actually been impacted since the Six Sigma Project. Six Sigma within Recruitment concept introduced to Sharp in July 2002 New leadership in place in July 2005… both were promoted from within the department Project started in Nov 2005 Most Recruiters and managers had a good relationship, but they did not always have the best understanding of each other. Just like anywhere else, the strained relationships were more the exception, but were problematic As a symptom of this some of the managers stood up and clapped when the project was announced, thinking that this would finally show that Recruitment was the problem As you may suspect, there were times that there was a lot of finger pointing when things didn’t go right Team had about a dozen people with hiring managers being selected by the CNOs Project ended over the summer of 2005
  8. MP So as you may suspect, relationships with managers and as a result, morale was mixed. Because of the recent changes, we also had some turnover within the department, which was an additional strain on the staff. Similarly, satisfaction with Recruitment was also mixed and I suspect that there was a strong correlation between satisfaction and the relationship with the Recruiter, as is typically the case.
  9. MP Now that we have covered the background, here are some numbers to give us an idea of what was going on. I used 3/2005 data because that was as far back as I could go with all the data points I wanted to use. Baseline data…
  10. MP So when this started, how did everyone feel about this? Leadership mixed…
  11. MP Minuses… I felt that this could potentially be the best thing that happened to us, although it would be painful…. Data is a double edged sword….
  12. MP The staff was concerned in general… Note: Explain ATS As in most cases where one really examines what they are doing, it puts your established beliefs and assumptions to the test.
  13. MP Most managers took a “wait and see” kind of mentality. No strong opinions for most. Some very vocal… A bell curve like most other things Some of the past vocal critics suddenly go silent… they recognize their beliefs and assumptions are also being put to the test
  14. MP Recruiters overall had the best understanding of the entire process. But didn’t necessarily understand the entire process Very few people actually knew the entire process at a detail level. Many people, Recruiters, managers, HR, etc. knew at least some of what needed to take place to be successful, but many only knew conceptually (i.e. need to move quickly, but didn’t know how or whether things were going quickly). Some specifics Lack of regular standardized communication Mgrs not contacting applicants quickly No standardized process after manager receives candidate from Recruitment Note- still no real standardized process, but some improvements Lack of clear roles and responsibilities No coverage while people were out
  15. MP Competition between facilities was largely between two specific sites and not widespread among all our facilities. Typical- some disagreement on what was most critical to work on
  16. MP What was the Recruitment Department doing right? Moving people through our processes. Contacting, screening…
  17. MP Some Recruiters were screening appropriately, but we found there were opportunities to improve in some cases This developed over time because of a communication breakdown. Managers did not communicate there were things lacking clearly. Recruiters did not always thoroughly check on the drivers of issues. How many of us have seen this?
  18. MP Inconsistent use of our process steps- Some steps in the systems processes were unclear and used inconsistently. Recruiters had varying definitions for what each step meant For some, better align the prescreens with managers needs-
  19. MP We also felt we could follow up with managers better, especially since the managers did not have any tools available to help them manage this process Being successful in any project requires that you are able to see things from the perspective of others Developed a report that showed what candidates were sent where to dispel the perception of unfair candidate distribution. This report is sent our on a regular basis to leadership.
  20. MP Many were already doing what they needed to do, and some were doing it very well and consistently. Many were also doing a good job selling the applicants on their positions Salary was the same across the system Strong internal competition between facilities Some of our more successful managers were able to sell something unique which many times was the culture and developmental opportunities of their unit. Some had great ideas for engaging applicants Sending cards to candidates after the interview Coffee for the candidates
  21. MP Each manager had a different set of challenges In general, improved communication with the applicant and Recruitment throughout the process was needed Processes and tools needed to be developed to support the managers… They have multiple competing priorities. When I have an openings, sometimes I run into the same challenges as the managers do
  22. MP Input about HR seemed largely positive Areas of improvement Reducing wait times for the physical Process redundancy Education Process Design Example Both the Mgr and HR were reviewing credentials
  23. MP What did we do in Recruitment? Nothing will focus you on change like a project like this… Issues that people would not yield on in the past could suddenly be changed We cleaned up our processes by eliminating unnecessary process steps Standardized definitions for process steps Improved our prescreens
  24. MP Made existing process more consistent and implemented new ones as necessary Developed a “Referral Report” for the CNOs to eliminate the perception of unfair candidate distribution Began finding was to get better data from our ATS
  25. MP Since they were so varied, recommendations were both broad and individualized General areas of improvement were….
  26. MP Key- using other managers as a best practice example Removes the excuse of we can’t do it here Makes the suggestions more legitimate The managers that were doing an excellent job, kept doing an excellent job The managers that were doing a good job in many cases got a little better The managers that weren’t doing a good job are mixed… there are always some holdouts, but not many My suggestion is if you have managers that are doing things well, learn all you can from them
  27. MP Worked on reducing wait times for physicals Scheduling at other locations Review processes
  28. MP March 2005 was as far back as I could go We’re a big organization with a lot of moving parts, so obviously these improvements are the result of many initiatives, some of which were part of or resulted from six sigma, but some were independent or even beyond our control
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  30. MP Applicant volume increases started small in July 2005 and kept growing stronger and stronger with some fluctuation
  31. MP We started tracking applicants per posting because we recognized the number of postings declining and felt that this decline would eventually impact the volume of applicants, which is something that we may be seeing today.
  32. MP For those of you outside of healthcare, Registry is something like a last minute temporary employee… they come in to cover for a shorter period of time, usually for unplanned absences Having additional available staff and a strong internal temp pool can mitigate the need for external registry We also implemented an internal system that allows employees to “bid” on available shifts for coverage
  33. MP Dramatic reduction in Registry Hours
  34. MP For those of you outside of healthcare, Travelers are used for longer term coverage as their assignments are completed in 13 week increments. The reason I did not share cost with you is the number was deceptive. The underlying structure of how we worked with Travelers changed completely since FY 2004 and the per hour rate increased dramatically as a result.
  35. MP So getting to the focus of this presentations title, these are the results we have for quality of hire We measured quality of hire for the purpose of this presentation by comparing average merit increases for individuals hired on or after FY 2004 FY 2004- before the Six Sigma Project This slide reflects the percent increase in average merit increase since the FY 2004, not the actual increase to salary Quality of hire is the result of a process As you can see, Six Sigma is a great tool/methodology for reviewing and improving processes So look at where you are, and where you want to be: The D in DMAIC stands for Define, so define what a high quality hire is. Is it mgr satisfaction, performance, cultural integration, team integration, new hire satisfaction, is it multi-dimensional? What time frames are critical? Then decide if a Six Sigma process is what you need to make the improvements necessary. Look at the variability, determine what is driving it and fix it. Keep asking why throughout the process? The C in DMAIC stands for control and that is the true key- building a sustainable fix.
  36. MP I feel that the non-measurable improvements are the true benefits and the measurements are the outcome of those improvements Being data driven, being more confident in moving forward with new technologies You have a comfort with data going in You have a comfort with data to evaluate efficacy
  37. MP Communication improves relationships Armed with data and experience, we are more comfortable providing input to managers More comfortable innovating
  38. MP Throughout the talent supply chain, more accountability Perfect- no Better- yes
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  41. MP My contact information is: [email_address] Also on LinkedIn I also have a blog: Miketherecruiter.wordpress.com