Every organization regardless of size have non-value added steps in their processes which can dramatically affect their organizations. The problem is quite often the organization has never looked for these drags on the bottom line.

1. Hidden Wastes the Affect the Viability of Your
Organization
In Plain Sight:
Facilitated by
Daniel T. Bloom SPHR, SSBB
Chief Executive Officer
Daniel Bloom & Associates, Inc.
HR Strategists

2. Welcome

3. A Powerful Strategy for Sustained SuccessA Powerful Strategy for Sustained Success
"We have learned to live in a world of mistakes
and defective products as if they were necessary
to life. It is time to adopt a new philosophy in
America."
Dr. Edward Deming

4. • Anonymous
– Excellence is the result of
• Caring more than others think wise
• Risking more than others think safe
• Dreaming more than others think practical
• Expecting more than others find possible
• Kevin Duggan, Institute for Operational Excellence
– When each and every employee can see the
flow of value to the customer
– And fix that flow before it breaks down
What is HR Excellence?

5. In Plain Sight: Hidden Wastes
They are “Hidden” Wastes
because we have not looked for
them

6. Achieving HR Excellence
© Daniel Bloom & Associates, Inc, 6

7. Which Path Are You
Taking?

8. Which Path Are You
Taking?
• Are you part of the problem?Are you part of the problem?
OrOr
• Are You Part of the Solution?Are You Part of the Solution?

9. Which Path Are You
Taking?
• Left Fork
• I am happy being a mediocrity part of the
organization
• I am happy being a commodity
• You can confirm that the data is calculated correctly
and sign off on the report
• You are part of the problem

10. Which Path Are You
Taking?
• Right Fork
• Hey Houston , we have a problem
• I am not satisfied that is just the way we do things
here
• What am I supposed to do?

11. Consider this Scenario
Your financial division has just
delivered to your department the
financial report for ______
What Next?

12. What Keeps You Up at Night?
Bersin & AssociatesBersin & Associates
• Top Best Practices for a High Impact HR Organization (2011)Top Best Practices for a High Impact HR Organization (2011)
• Greatest HR Challenges Faced by Today’s HR LeadersGreatest HR Challenges Faced by Today’s HR Leaders
• Measuring HR programs in Financial TermsMeasuring HR programs in Financial Terms
• Delivering Workforce Metrics and AnalyticsDelivering Workforce Metrics and Analytics
• These are the language of businessThese are the language of business
• Six Sigma is the key to that languageSix Sigma is the key to that language

13. 13
Lean and Six Sigma focus on continuously improving the transactionaltransactional
process qualityprocess quality,, getting the product or service to market fastergetting the product or service to market faster,, and reducingreducing
cost while improving the price to the customer.cost while improving the price to the customer.
BETTERBETTER
FASTERFASTER CHEAPERCHEAPER
66σσ
Measurable Continuous Performance ImprovementMeasurable Continuous Performance Improvement
CHEAPER =CHEAPER =
CostCost
FASTER = LeanFASTER = Lean
BETTER = QualityBETTER = Quality
07/19/13 Daniel Bloom & Associates, Inc.
What is Six Sigma?

14. The Ultimate Improvement Cycle
© Daniel Bloom & Associates, Inc, 14
•Six Sigma
• Lean • Theory of
Constraints
• Ensures that all your
processes are
repeatable
• Creation of a standard
of work
•Removes variation
from the process
•Identifies the non-
value added
activities that are
creating the obstacle
• Removes these
steps from the
process.
•Identifies the
source(s) of
roadblocks in your
processes

15. Six Sigma Methodology- Remove Waste
© Daniel Bloom & Associates, Inc, 15
Designed to remove the sources of waste and
variation from your processes:
1.1. OverproductionOverproduction
2.2. WaitingWaiting
3.3. Unnecessary transportUnnecessary transport
4.4. Over-processingOver-processing
5.5. Excess InventoryExcess Inventory
6.6. Unnecessary movementUnnecessary movement
7.7. DefectsDefects
8.8. Unused Employee PotentialUnused Employee Potential
9.9. Material UnderutilizationMaterial Underutilization

16. Sources of MUDA – Overproduction
© Daniel Bloom & Associates, Inc, 16
• Too many steps in the process
• Excess process steps
• Lack of sufficient talent

17. Sources of MUDA – Waiting
© Daniel Bloom & Associates, Inc, 17
• Undefined decision making
• Fill times
• Customer unmet needs

18. Sources of MUDA – Transportation
© Daniel Bloom & Associates, Inc, 18
• Unnecessary Movement
• Office traffic flows

19. Sources of MUDA – Overprocessing
© Daniel Bloom & Associates, Inc, 19
• Excess steps in the hiring process
• Redundancy
• “Island” mentality

20. Sources of MUDA – Inventory
© Daniel Bloom & Associates, Inc, 20
• Too Much work in process
• Physical piles of forms
• Lists of pending requests
• Excess wait time

21. Sources of MUDA – Unnecessary Movement
© Daniel Bloom & Associates, Inc, 21
• Needless Switching of programs
• Needless Movement of People
• Needless Movement of Information

22. Sources of MUDA – Defects
© Daniel Bloom & Associates, Inc, 22
• Errors in job postings
• Errors in offer letters
• Incomplete metrics
• Missed deadlines

23. Sources of MUDA – Unused Employee Potential
© Daniel Bloom & Associates, Inc, 23
• Idle time
• Under staffing
• Over staffing
• Excess Data Creation
• No time for continuing education

24. Sources of MUDA – Material Under Utilization
© Daniel Bloom & Associates, Inc, 24
• E-Mails
• Late starts for tele-conferences
• Design errors

25. HRCI Body of Knowledge
• Business Management and Strategy
• Workforce Planning and Employment
• Human Resource Development
• Compensation and Benefits
• Employee and Labor Relations
• Risk Management

26. HRCI Body of Knowledge – Business Strategy
• Process mapping of acquisition process ( 3 in
total)
– Your current state
– Purchasers Current state
– Post Acquisition future state
• Consolidation of employee information
databases
• Integration of payroll systems for remote
locations
• HR Audit/Corporate Efficiencies

27. HRCI Body of Knowledge – Business Strategy

28. HRCI Body of Knowledge – Workforce
Planning
• Accurate tracking of FMLA
• FAQ of employee handbook
• Job posting rates
• Increased retention
• Application response time
• Removal of unnecessary processes

29. HRCI Body of Knowledge – Workforce
Planning

30. HRCI Body of Knowledge – Workforce
Planning
• System allows candidate to be scheduled for the
wrong date or time
• Spending time processing a hard copy when
document can be accessed on line
• One department plans to buy a piece of equipment
or hire an employee when another department has
capacity
Waste Goes Beyond Office SuppliesWaste Goes Beyond Office Supplies
Real Life Examples:Real Life Examples:

31. HRCI Body of Knowledge – Human
Development
• Self evaluation of learning modules
• Catalog of available courses
• Voice of the employee
• Need analysis
• Workgroup design
• Calculating the effectiveness of the training
programs

32. HRCI Body of Knowledge – Human
Development

33. HRCI Body of Knowledge– Human
Development
– Create Skill Bench
from which all PTS
processes are
fulfilled
– PTS staff becomes
project team
– Downtime is used for
continuing education

34. HRCI Body of Knowledge – Compensation
1. Control Charts to show the optimal time to enrol new employees
2. Histograms to show the spread of enrolment period (What is the
best time of day to enrol them?)
3. Process maps to demonstrate the enrolment process
4. Benchmarking other organization’s enrolment process
5. Pareto charts to show the spread of compensation throughout the
organization
6. Showing the prevalence of overtime vs. regular time authorizations
7. Benchmarking profit sharing programs

35. HRCI Body of Knowledge – Employee
Relations
• Process mapping of complaint procedures
• Tracking harassment processes

36. HRCI Body of Knowledge – Employee
Relations
• Process mapping of complaint procedures
• Tracking harassment processes

37. 37
Continuous
Improvement (There’s
Always a Better Way)
Transformational
Leaders
Poke Yoke (Mistake
Proof)
Long term planning to
optimize services
Educate and Train
Change Managers into
Leaders
Drive out fear (employees
empowered to express
ideas and ask questions)
Break down silos – create
teams that reach across
units
Focus on process, not
people – avoid the blame
game
Avoid quotas,
numerical goals for
people in
management
Go and See
Quality elements inspired by Deming’s 14 points and The Toyota Fieldbook, p. 435
Gain
Knowledge
Do It Now
Coach
Daniel Bloom & Associates, Inc.07/19/13
Bringing it Altogether

38. 07/19/13 Copyright 2010 Daniel Bloom and Associates, Inc. 38
How does this {process, procedure,
action, initiative, project, policy}
help the organization achieve its
business objective?
If you can’t answer this in a clear way that is measureable
and where there is evidence that your answer is true, stop
doing it.

39. Achieving HR Excellence Through Six Sigma
• Three Pillars
– Customer Centric
– Quality
Improvement
– Organizational
Alignment

40. Resources for Further Reading
• Want to know more?
– LinkedIn Groups
– Lean Six Sigma HR
• http://www.linkedin.com/groups?gid=3725693&trk=myg_ugrp_ovr
– Process Excellence for HR
– http://www.linkedin.com/groups?gid=4172963&trk=myg_ugrp_ovr

41. Resources for Further Reading
• Want to know more?
– Driving the HR 500: Achieving HR Excellence through Six
Sigma
– 14 hour course on applying the concepts we discussed
today
– Pre-approved for HRCI 13 Strategic Business Credits for
PHR, SPHR and GPHR
– http://www.dbaiconsulting.com/pages/HR500.php

42. Resources for Further Reading
• Productivity Press
– To be released in 2013
– “Achieving HR Excellence through Six
Sigma”

43. Achieving HR Excellence Through Six Sigma
Driving HR 500 Seminar
•October 24-25, 2012
Performance Institute Washington, DC
•2013 Potential Locations
–Denver
–Tampa
–Columbus, OH
–Gainesville, FL
–Pittsburgh
–Washington, DC
–Atlanta
–New Orleans
–Pittsburgh

44. Taking the Concepts One More Step
Premise
– We have removed waste from our
operations
– We have removed variations from
our operations
– We have increased bottom line
results
– As a result we have decreased the
carbon footprint of the
organization
– WE HAVE MADE THE
ORGANIZATION MORE
SUSTAINABLE- SOCIALLY,
ENVIRONMENTALLY AND
ECONOMICALLY.

45. In Plain Sight
Questions ?
Final Thoughts

46. 07/19/13 Copyright 2010 Daniel Bloom and Associates, Inc. 46
Daniel Bloom SPHR,SSBB,SCRP
Chief Executive Officer
Daniel Bloom & Associates, Inc.
PO Box 1233
Largo, FL 33779
(727) 581-6216
dan@dbaiconsulting.com
http://www.dbaiconsulting.com
Have Further Questions or Need some
Assistance with Your Individual Processes