The case study outlines how an HR team transformed operations by implementing lean principles, ultimately improving productivity and service quality without new technology. Over 400 non-technology HR improvements were made, resulting in a 20% reduction in operating costs and $32 million in annual savings. The implementation was quick, with significant improvements seen within six months and a strong ROI of 5x over a year.

1. CASE
STUDY
Situation – How to transform HR operations by implementing lean principles in Human
Resources
“Don’t worry,” the vendor promised, “our technology will increase HR productivity.
HR process standardization is built in. Just install our app and get lean process
improvement.” The HR team soon saw that the new technology lacked real HR
process improvement. That’s because tech vendors define “transactions,” such as
résumé intake, as “business processes.” They automate these and call it “process
improvement.” But the HR operations team needed need true, end-to-end lean
process improvement to meet aggressive cost saving initiative goals in the HR
department. For example, they needed to increase HR productivity of the hiring
process: from recruiting through employee onboarding. And they needed to upgrade
service and quality everywhere.
Client Description, Project Scope, Objectives
The HR team reviewed The Lab’s non-technology improvement templates. They saw
how these could rapidly achieve their process improvement, HR cost optimization
and service improvement goals, within 6 months.
HR operations included 3,000 employees. They served a global bank of 250,000
employees across 50 countries. HR supported the bank from shared service centers
concentrated in North America, Europe and Hong Kong.
The implementation effort targeted rapid results, low risk and frugal costs. Pilots
for lean HR process improvement began in New York and London. Once proven
to increase HR productivity and deliver the planned cost reduction, these were
implemented worldwide.
The project began with an 8-week, Phase I analysis of HR operations. This initial
phase delivered a self-funding, guaranteed business case and work plan that
launched the Phase II HR transformation implementation.
Lean HR Transformation Process Improvement Examples
The Lab implemented over 400 non-technology HR operations improvements.
Examples:
Standardized Job Position Descriptions—The Human Resources department
previously maintained few centralized repositories of standard job descriptions
and struggled with how best to match candidates and positions. For example,
a simple IT analyst position had over 40 different descriptions. HR received
complaints of mismatch from new hires and the business. The Lab helped reduce
total job descriptions. Centralized management was implemented for a standard
inventory of descriptions.
Decreased Over-service—Businesses submitted hiring requisitions but later
canceled over 25 percent. HR serviced all requisitions. No questions asked.
During the HR improvement initiative implementation, process standardization
improved requisition coordination. HR and the business jointly evaluated each
requisition. This increased operational efficiency for recruiters by reducing the
number of unneeded, partially-processed candidates.
Reduced False Complexity—Compensation plans were rarely standardized. Prior
acquisitions and business line autonomy created new “one-off” plans. HR
administrated these as 500 “unique” plans. But most had only minor differences
that created avoidable work. Standardization of admin tasks boosted employee
productivity by 25 percent.
Human Resources
Lean Human Resources Process
Improvement Transformation
Global Human Resources
North America, Europe & Hong Kong
Top 5
Global Bank
Project Sponsor:
Chief Human Resources
Officer
Non-technology, self-funding operational
improvement implementation:
– No new technology
– End-to-end HR improvement
– 6-month implementation
Project Objectives:
– Accelerated hiring
– More qualified candidates
– Cost reduction
– Lean management
Project Scope:
– Employee selection (Hiring)
– HR consulting (Generalists)
– Compensation
– Benefits administration
– Training
– Management development
– Payroll and pension
Implementation Results:
– Operating cost . . . . . . . . . . . . â 20%
– Annual savings . . . . . . . . . . . . . . $32M
– Capacity improvement . . . . . . .  20%
– Internal service levels . . . . . . . .  25%
– Break even point . . . . . . . . . . . . 3 mos.
– ROI (12 month) . . . . . . . . . . . . . . . . 5X
Global HR Operational Efficiency
SGO2.FSO2.170626