LEAN Whitepaper-Embracing A LEAN Culture

RecRuitment pRocess outsouRcing
business pRocess outsouRcing
contingent woRkfoRce outsouRcing
Human ResouRces consulting
caReeR tRansition & oRganizational effectiveness
executive seaRcH
Think ouTside.
embracing a lean culTure:

achieving operational excellence in recruitment through a proven manufacturing philosophy
conTenTs
introduction
p/3
01 02 03 04 05
insight into lean
p/4
Fad or here to stay?
p/7
lean up close
p/9
Focus on practitioners
p/14
lean on a project basis conclusion

p/20
p/17
lean journey checklist about the author

p/22
p/21
home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?
inTroducTion
03 lean up close 04 Focus on pracTiTioners 05 lean on a projecT basis conclusion lean journey checklisT abouT The auThor
Six Sigma was all the rage over the last few years, and now LEAN has become the new buzzword in quality and process efficiency. LEAN is a broad catchphrase describing a holistic and sustainable approach using less of everything to give you more. Transactional LEAN is an approach that can be applied to any business process. This white paper outlines how KellyOCG has introduced LEAN into the recruitment process. As well, it will educate you on: | | | | | | Basic LEAN principles Introducing and sustaining LEAN as well as lessons learned How being LEAN can improve processes Strategies for implementing LEAN in recruitment Benefits of LEAN Sustaining a LEAN environment
embracing a lean culTure | 3
home conTenTs inTroducTion 01 insighT inTo lean
01
02 Fad or here To sTay? 03 lean up close 04 Focus on pracTiTioners 05 lean on a projecT basis conclusion lean journey checklisT abouT The auThor
insighT inTo lean

By embracing the fundamentals of Lean manufacturing, HR leaders at GE Healthcare realized they could lift recruitment to new heights of efficiency and quality.
Few organizations epitomize process excellence as
succinctly as General Electric, whose global innovations across myriad businesses have made the household brand a leader in every one of its markets. So it might seem surprising that GE Healthcare, one of the companys fastest growing divisions, began implementing Lean manufacturing methodology within a service line only three and a half years ago, even though manufacturers around the world have been involved with Lean for decades. Was this corporate giant simply lagging its competitors? On the contrary, GE Healthcares use of Lean methodology was far ahead of its timereaffirming its status as a trailblazer. The company had already implemented this highly effective quality system throughout its manufacturing facilities long ago. But in 2006, GE broke new ground by adopting the basic tenets of Lean within its business process services, beginning with the critical function of recruitment. By embracing the fundamentals of Lean manufacturingidentifying value-creating activities, eliminating waste, and focusing on continuous improvementHR leaders at GE Healthcare realized that they could lift recruitment and other back-office functions to new heights of efficiency and quality. Moreover, the initiative would give business partners more insight. Ultimately, this has been about providing really smart, deliverable data to our clients and then saying to them, Here are not only the benchmarks we started from, but here are the additional efficiencies we can deliver. We have a story we can tell, explained Steven Brown, talent acquisition leader at GE Healthcare and one of the architects behind the companys Lean recruitment initiative. We are driven by improvements. We go over this on a weekly, monthly, and yearly basis so we expose ourselves to how we are doing.
becoming lean: how To geT sTarTed in recruiTmenT

Understanding the Lean philosophy and making a commitment to it in your organization is a considerable investment. It requires executive sponsorship, buy-in from the rank and file, plus the patience and resources to make it successful. However, when executed well, the effort can significantly improve how you acquire talent.
Browns outlook reflects the Lean philosophy in every respect. As disciples of continuous improvement, practitioners train themselves to guard against complacency and remain vigilant in identifying and solving breakdowns in their processes. Although many companies have applied the methodology to manufacturing, few have adopted it within a business process, where advocates say similar success can be achieved. Thats why GE Healthcares efforts are considered groundbreaking, especially in the field of talent acquisition, an increasingly strategic service that can give an organization real competitive advantage. As part of its Lean journey, GE Healthcare enlisted the support of its external recruitment service provider, Kelly Outsourcing and Consulting Group (KellyOCG), which had been an integral part of the companys recruitment services since 1999. As a learning exercise for both partners, Lean implementation at GE Healthcare resulted in cultural shifts not only to its internal processes but also to those of KellyOCG. And now the global outsourcing service provider is bringing its Lean expertise to other organizations.

kaizen: A philosophy of ongoing improvement
02
Fad or here To sTay?

A lead HR Outsourcing analyst explained that many companies today are considering various ways to standardize and streamline their recruitment processes.
But as many industry veterans know, quality systems come
and go, and there will always be a fad of the day clamoring for the attention of operational leaders. Remember ISO 9001? Companies couldnt file for registration fast enough, but ISOs lingering impact on corporate culture has faded just as quickly. So what makes Lean any different than previous fads? How can a manufacturing initiative improve the workings of a business process? And are the benefits of implementing Lean methodology worth the effort? There is no doubt in my mind that this is a good thing, said Gary Bragar, lead HR outsourcing analyst at NelsonHall, a global market analyst and advisory firm. He explained that many companies today are considering various ways to standardize and streamline their recruitment processes as the pressure to acquire top talent intensifies. Using a disciplined approach such as the Lean methodology is a smart way to organize and execute those goals. Indeed, a number of world-class organizations now apply Lean principles outside of their manufacturing activities. In his book Going Lean, author Stephen Ruffa cites standouts such as Walmart and Southwest Airlines as pioneers in adopting Lean to combat a turbulent business environment. The lesson here is that even when external forces are restless, companies can weather the storm by adhering to the stabilizing forces of a Lean culture.

Lean is not a fad; Lean is a lifestyle. Lean practices enable an organization to reduce development cycles, to produce higher quality services and products at a lower cost, and to use resources more efficiently. The application of Lean is now an integral component of our RPO solutions.
candy lewandowski:
vice president and global rpo practice leader, kelly outsourcing and consulting group
03
for finding candidates.
lean up close
Just as this approach is capable of turning out a better car, when applied to recruitment, practitioners can expect a more efficient and responsive process
While the Lean movement within a business process
remains nascent, its adoption by the manufacturing community has been ongoing for decades. Global carmaker Toyota, whose production system on which the term Lean was coined, leveraged this approach to grow itself into the worlds leading automobile manufacturer. The Toyota Production System (TPS) was so effective that it spawned an entire industry based on its study. Today, the Lean philosophy has been adopted by organizations around the globe, with thousands of trained disciples practicing its methods. The benefits to HR have been documented. According to a study conducted by two researchers at Coventry University1, Lean principles applied in a pilot project to improve candidate recruitment at the institution helped to significantly raise outcomes. Involving staff from the universitys HR recruitment team, external recruitment agencies, and IT services, as well as customers from library services, academic faculty, and student servicesthe project netted a 20 percent reduction in overall time to approve and fill staff positions. More importantly, the exercise also helped HR to identify non-core, ancillary activities that occupied their time, enabling them to simplify and expedite the entire process. What exactly, then, is the Lean philosophy and how can it be leveraged to improve corporate recruitment? In essence, Lean manufacturing is a philosophy in which practitioners commit to continuous improvements using critical tools to help them identify and eliminate waste and irregularities in their processes. Although it stemmed from the automotive shop floor, its fundamental tenets can be applied to the back office as well, since all organizational activities involve some degree of waste or duplication. Just as this management approach is capable of turning out a better car, when applied to recruitment, practitioners can expect a more efficient and responsive process for finding candidates. Ultimately, because practicing organizations reduce waste and non-value-added activities, they also cut costs.
Vsm: Value Stream Mapping
Martin, S. and Arokiam, I. (2008), Investing to Improve Organisational Development and the link with Lean for Continuous Quality Improvement, proceedings from the 11th QMOD Conference, Helsingborg, Sweden.
1
It all starts with Value Stream Mapping (VSM), a process by which managers examine all activities that take place to produce a product or service. As part of the Lean philosophy, tasks that do not create value for the customer are considered wasteful, so in drawing up a VSM, practitioners identify waste to be targeted for elimination. In recruitment, for example, an organization may duplicate efforts when a candidate slate is presented to the hiring manager. Some companies employ multiple applicant tracking systems that might require the same information to be input several times to meet customer needs, compliance requirements, or for data retention. This duplication clearly generates wasted time that adds no value to the hiring manager or the candidate. By drawing up a comprehensive VSM, Lean practitioners can address all the unnecessary efforts in the recruitment process. This allows team members to produce a futurestate VSM that is free of the identified waste. Visually, it provides a map for any organization to follow.
muda: Waste, activities and results to be eliminated
7 Types oF wasTe
recruiTmenT process Flow
Waiting
Escalations/approvals, waiting for feedback, waiting for offers to be entered
Inventory
Offers to be processed, rsums to be reviewed
Defects Extra Processing Transportation Overproduction
Incorrect data, requisition folders not updated Updating JobFlow, Brass Ring, or other ATS Shipping offer letters, takes 24 hours Processing before next operation is ready, processing prior to need
Motion
Tracking down paperwork, walking to and from printer, fax, or filing cabinets
If VSM represents a roadmap for the Lean journey, then the 5 Ss might be considered gas for the road. These are five essential principles for operating in a Lean environment to help ensure process consistency. They are: | sorT separation of necessary items from unnecessary items (identifying waste) | seT in order arrange items according to how they will be used (an enabler of efficiency) | shine maintain work area for sorted and set-in-order items (maintaining workplace hygiene) | sTandardize ensure sort, set-in-order, and shine steps are consistently followed (reducing process variations) | susTain maintain and improve sort, set-in-order, shine, and standardize steps (ensuring Lean efforts are ongoing) These five principles set the foundation on which Lean organizations execute their operational plans. Each step helps to ensure that workflow is not compromised by unanticipated problems. And when issues do arise, all team members pitch in to resolve them. When the 5 S concept was first developed, it was aimed at improving production flow on the manufacturing floor. However, these ideas can be applied with equal success to recruitment, where unnecessary activities slow hiring and hinder service delivery to customers. Each of these tools facilitates waste elimination and minimizes process variation. Think about the 5 Ss in recruitment. How do we take it from the manufacturing floor to the office? The floor is your desk and filing system, where you process your work. It is a sustainable solution. The principles have been around forever; its a matter of how to apply them, and how to challenge yourself to continue applying these principles to maintain order and efficiency daily.
The FiVe ss: Sort Set in order Shine Standardize Sustain
As the 5 Ss are implemented, organizations typically assemble kaizen teamsstakeholders who help sustain and administer continuous improvements. Kaizen, which simply means improvement in Japanese, is the practice of making changes, monitoring results, and making adjustments as needed. Without this important component, Lean would be unsustainable. Because of the collaborative environment it creates, Lean encourages transparency into every team members role, so others can weigh in with suggestions on how to resolve a particular colleagues difficult issues. Furthermore, although individuals are highly accountable for their work, the culture is less about blame than about problemsolving. It also allows for best practices to be more visible, and thus shared more readily. When a problem is identified, a kanban, or card is used to visually flag the problem. For instance, if interview scheduling often results in conflicts, a kanban is pulled and a kaizen team member documents the nature of the problem, frequency of occurrence, the triggering mechanism, and other relevant information. Are entry errors being made in the ATS? Is there a communication breakdown between recruiters and candidates? The kaizen team undertakes a three-step approach to resolving the issue, including problem identification, resolution brainstorming, and validation of the solution. Separately, each of these tools contributes incremental changes in workflowbut when implemented cohesively, they can have a significant impact on an organizations culture. However, Lean experts caution that new practitioners must be patient and allow it to permeate an organization over time. Rushing to judge its effectiveness may result in a skewed picture. As you go through the Lean journey, some things might not seem like they would make a huge impact, but over timemonths or years laterthats when you really understand their impact. You must have patience, advised Roxanne Kitts, U.S. staffing process leader within the KellyOCG RPO practice.

kanban: A card used to visually flag a problem
04
Focus on pracTiTioners
One of the key benefits for GE Healthcare was Leans emphasis on standardization.
Indeed, even for an organization already obsessed with
operational excellence, adding Lean made a difference at GE Healthcare. Adopting this philosophy in recruitment was a natural progression in the companys pursuit of perfection, Steven Brown said, adding that even before the business began investing in Lean, it was already practicing Six Sigma, another quality management approach. However, Lean methodologies further elevated the companys ability to deliver high-quality candidates in a timely manner. One of the key benefits for GE Healthcare was Leans emphasis on standardization. Because the company had made numerous acquisitions over the years, different business lines had different approaches to recruitment. Challenges around compliance, reporting, benchmarking, and other issues were inevitable. This created tremendous inefficiencies in recruitment services and slowed the delivery of qualified candidates to hiring managers. For a business highly dependent on its human capital, this was a market handicap. One of the challenges that we have is the way GE Healthcare has evolved through acquisitions. We are made up of many businesses. To have different processes to manage each became a challenge you wouldnt believe, said Brown, recalling the companys recruitment problems prior to the start of its Lean journey. Because GE Healthcare had outsourced its recruitment to KellyOCG for more than a decade, when deciding to adopt a Lean culture, it also needed the support of its service provider. In fact, it shepherded KellyOCG through the process by allocating a trained quality black-belt to serve as an advisor for six monthsturning the normal customer-vendor relationship on its head. But if it seems GE Healthcare was being extraordinarily altruistic, Brown conceded that helping KellyOCG was also self-serving. By improving the workflow of its provider, GE Healthcare would ultimately reap the benefits. Moreover, because the two companies operated synergistically, he felt both companies would need to adopt a Lean culture to maximize the return on investment.
Kelly has been part of our staffing organization for 10 years, so they had seen our inefficiencies too. They had lived through the challenges on the operational side, Brown said. We have been in this together with Kelly since day one. We have been lucky in that we havent had to change partners. GE Healthcare began implementation of Lean recruitment in 2006, producing its first VSM in May of that year. Relying on an internal expert who had studied Lean at Toyota and General Motors, the company moved steadily toward its future state, building a center of excellence along the way and creating a knowledge base shared by other GE businesses such as GE Money, the parent companys finance business. Brown said his own team and KellyOCG team members have become so immersed in the philosophy that they instinctively tackle problems in a highly systematic and standardized way. Today, the impact on hiring managers is that they receive better and more consistent service, without having to learn about Lean. Ultimately I dont think the customers care about how you deliver service, as long as you do it well, Brown concluded.

05
lean on a projecT basis

Although Talecris had standardized some of its activities, the Lean tools and principles introduced by KellyOCG elevated its recruitment to a new level.
GE Healthcares implementation is a textbook example of
a permanent cultural shift, but many companies today outsource their hiring on a project basis. How would a service providers Lean practices affect them, if at all? For one global organization, Lean literally became a matter of life and death. When Talecris Biotherapeutics, a maker of biotherapeutics and biotechnology products, needed to open numerous plasma collection centers in 2008, company officials were worried about staffing up quickly enough to meet their deadlines. Suzanne Eller, the recruiting manager and HR business partner, said effective recruitment became an imperative to all. Our concern was that if we didnt have these plasma centers fully staffed and trained, the centers would not open, meaning no production and no service to patients. If we didnt have donors come to donate plasma, the people needing our pharmaceutical products would not get them. It was literally a matter of life and death, she recalled. Even though Talecris had internal recruitment capabilitieseach of the companys three divisions had its own recruiterits sole recruiter for the new centers was overwhelmed by the volume of work. It quickly became clear to Eller that Talecris needed outside help. The company had a successful relationship with Kelly Services for temporary hiring, but positions at the plasma centers were permanent. Nevertheless, Eller said she felt confident the provider could help deliver the right candidates. And with a deadline looming, Talecris needed to engage external support quickly. Although Talecris had standardized some of its activities, the Lean tools and principles introduced by KellyOCG elevated its recruitment to a new level. In identifying workflow problems and using scorecards to evaluate the process, the KellyOCG team helped Eller to better plan and set deadlines. Clear timelines were established for each position for example, an assistant manager had to be filled three to four months prior to a centers opening, while a phlebotomist was to be hired with a three-week lead time. Furthermore, kaizen team members worked closely with hiring managers to perform gap analysis of any bad hires. The Lean approach provided Eller with a clear vision of what needed to be accomplished.
It was an interesting concept. What would happenand the best benefitwas that we could see how many positions needed to be filled in a geographic area. We could set deadlines, she said. The outcome was better than I had expected. Although Talecris didnt fully adopt Lean within its recruitment organization, it was the beneficiary of an innovative partner that had. At a time when companies are focused on improving efficiencies, its clear that a proven management philosophy such as Lean can help recruiters achieve this goalregardless of whether they embrace it internally or through a provider. By focusing on waste, keeping team members engaged, and promoting continuous improvements, Lean practitioners are assured of better outcomes and happier customers. In the end, this presents all organizations involved with competitive business advantage.

conclusion
There is some confusion over how Lean is implemented in a service environment or within a business process, so its important for new practitioners to become fully oriented with the concept and how it applies to their organizations before getting started. A myriad of courses and educational material are available, as are consultants and practice gurus. Companies can send staff to be trained in Lean methodologies or invite advisors to walk them through the process. In any of these instances, a significant investment is required. Another option is to engage a recruitment process outsourcing service provider with a strong Lean background that is capable of passing on its knowledge. This enables the hiring organization to observe Lean in practice without having to disrupt its ongoing recruitment work. Using Lean-embedded processes, such a provider can help clients to ease into the transition and eventually work in lock-step under the same Lean culture, sharing all lessons learned and a common vision for a future state. When considering such a relationship, remember to ask the following about the vendor: | | How long has the provider practiced Lean in its own culture? How has it applied Lean to other clients to help improve their recruitment efforts? | Does the provider have sufficient expert resources to help with your implementation? | What sort of knowledge base does it offer for your use?
These and other questions will help you identify the best Lean vendors to fit your needs, and those that can help you successfully engender a sustainable cultural shift in your workplace.

lean journey checklisT
Use this quick and easy ten item checklist as a guideline to put your priorities and lean plan into action. Once you have reached the end of this list, value stream map your process and repeat! Invest time in understanding lean concepts (books, webinars, courses, etc.) or engage a consultant. Communicate your plan to incorporate lean into the organization as a new lifestyle. Explain the reason for embarking on this journey. Conduct internal team training for the business group implementing lean. This should include lean role and responsibility definition, timelines and expectations. Value stream map your current and future state process. Organize your work and team environment (ie. 5S) Create kaizen, audit and change management teams. Create visual management tools. Review and communicate kaizens, VSM, team roles and goals, action items and follow up. Communicate results, ongoing efforts and next steps. Celebrate successes! Record and report metrics (ie.return on investments and process efficiency, value and reductions in waste accomplished, customer satisfaction, etc.).

abouT The auThor d. zachary misko

D. Zachary Misko is global director of the Recruitment Process Outsourcing (RPO) practice of Kelly Outsourcing and Consulting Group (KellyOCG). The group is part of Kelly Services, Inc. (NASDAQ: KELYA, KELYB), a leader in providing workforce solutions, headquartered in Troy, Michigan. In this role, Misko works with Fortune 500 companies throughout the world to develop and implement processes that improve and drive recruitment and retention solutions. Misko joined Kelly Services in 2002 with more than 15 years of human resource and management expertise in areas including direct merchant, retail, biotechnology, life sciences, and staffing services. Within these industries, Misko held various positions in the areas of recruitment, employment law, employee relations, consulting, strategic human resources planning, performance management, training, and compensation. His experience includes managerial posts at several companies: Promega Corporation, Lands End, and Younkers, Inc. Misko has earned many professional certifications, including Certified Diversity Recruiter (CDR), Certified Internet Recruiter (CIR), and Professional in Human Resources (PHR). He has also completed advanced certification from the Department of Industry, Labor, and Human Relations. Misko holds a bachelors degree in business administration with an emphasis in human resources from Carroll College in Waukesha, Wisconsin. He is currently a member of the Society for Human Resource Management (SHRM), the Employers Management Association (EMA), and the National Association of Personnel Services (NAPS). He is a past president of the Metro Milwaukee SHRM chapter. He is considered an industry expert in applying Lean methodologies in the talent acquisition process. Currently, Misko is a senior executive board member of Best Practice Institute (BPI) and serves on the Advisory Board for EnticeLabs. He is also co-chair of the Human Resource Outsource Association (HROA) Research Committee and a member of the Human Resource Outsource Association (HROA) Outreach and Education Committee. He has had articles published in many print and online publications, including Workforce Management magazine, HRO Today, Human Resource Executive magazine, and HR.com. Misko is a contributing author to the book, Best Practices in Talent Management, published in December 2009.
abouT kelly ouTsourcing and consulTing group KellyOCG is a global leader in innovative talent management solutions in the areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Human Resources Consulting, Career Transition and Organizational Effectiveness Consulting, Executive Search and Contingent Workforce Outsourcing (CWO), which includes Independent Contractor Solutions. Further information about KellyOCG may be found at kellyocg.com.
kellyocg.com
All trademarks are property of their respective owners. 2010 Kelly Services, Inc. V0267

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RecRuitment pRocess outsouRcing

business pRocess outsouRcing

contingent woRkfoRce outsouRcing

Human ResouRces consulting

caReeR tRansition & oRganizational effectiveness

embracing a lean culTure:

insight into lean

Fad or here to stay?

lean on a project basis conclusion

lean journey checklist about the author

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

embracing a lean culTure | 3

home conTenTs inTroducTion 01 insighT inTo lean

insighT inTo lean

embracing a lean culTure | 4

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

Few organizations epitomize process excellence as

becoming lean: how To geT sTarTed in recruiTmenT

embracing a lean culTure | 5

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

kaizen: A philosophy of ongoing improvement

embracing a lean culTure | 6

home conTenTs inTroducTion 01 insighT inTo lean

Fad or here To sTay?

embracing a lean culTure | 7

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

But as many industry veterans know, quality systems come

embracing a lean culTure | 8

home conTenTs inTroducTion 01 insighT inTo lean

embracing a lean culTure | 9

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

While the Lean movement within a business process

Vsm: Value Stream Mapping

embracing a lean culTure | 10

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

muda: Waste, activities and results to be eliminated

recruiTmenT process Flow

Escalations/approvals, waiting for feedback, waiting for offers to be entered

Offers to be processed, rsums to be reviewed

Defects Extra Processing Transportation Overproduction

embracing a lean culTure | 11

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

The FiVe ss: Sort Set in order Shine Standardize Sustain

embracing a lean culTure | 12

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

kanban: A card used to visually flag a problem

embracing a lean culTure | 13

home conTenTs inTroducTion 01 insighT inTo lean

embracing a lean culTure | 14

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

Indeed, even for an organization already obsessed with

embracing a lean culTure | 15

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

embracing a lean culTure | 16

home conTenTs inTroducTion 01 insighT inTo lean

lean on a projecT basis

embracing a lean culTure | 17

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

GE Healthcares implementation is a textbook example of

embracing a lean culTure | 18

home conTenTs inTroducTion 01 insighT inTo lean 02 Fad or here To sTay?

embracing a lean culTure | 19