The Field Guide to

Achieving HR Excellence
through Six Sigma
Daniel Bloom
The Field Guide to
Achieving HR Excellence
through Six Sigma
The Field Guide to
Achieving HR Excellence
through Six Sigma
Daniel Bloom

Boca Raton London New York

CRC Press is an imprint of the

Taylor & Francis Group, an informa business

A PRODUCTIVITY PRESS BOOK

CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2016 by Daniel Bloom
CRC Press is an imprint of Taylor & Francis Group, an Informa business

No claim to original U.S. Government works

Version Date: 20160323

International Standard Book Number-13: 978-1-4987-1568-3 (eBook - PDF)

This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been
made to publish reliable data and information, but the author and publisher cannot assume responsibility for the valid-
ity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright
holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this
form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may
rectify in any future reprint.

Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or uti-
lized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopy-
ing, microfilming, and recording, or in any information storage or retrieval system, without written permission from the
publishers.

For permission to photocopy or use material electronically from this work, please access www.copyright.com (http://
www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923,
978-750-8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For
organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged.

Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for
identification and explanation without intent to infringe.
Visit the Taylor & Francis Web site at
http://www.taylorandfrancis.com
and the CRC Press Web site at
http://www.crcpress.com

iv
Contents

List of Figures������������������������������������������������������������������������������������������������ ix
List of Exercises�������������������������������������������������������������������������������������������� xi
Preface����������������������������������������������������������������������������������������������������������� xiii
Acknowledgments��������������������������������������������������������������������������������������� xxi
Author........................................................................................................... xxiii
List of Abbreviations��������������������������������������������������������������������������������� xxv
1 Creating a Center of Excellence....................................................1
CARING More about Your Organization than Others Think Wise����������3
RISKING More than Others Think Safe to Change the
Corporate Culture���������������������������������������������������������������������������������������5
DREAMING More than Others Think Practical about the
Potential of Your Organization�������������������������������������������������������������������7
EXPECTING More than Others Find Possible from Your
Human Capital Assets���������������������������������������������������������������������������������8
2 Preboarding: Seeing the Problem...............................................11
Who Is Going? (Suppliers, Inputs, Processes,
Outputs, Customers)���������������������������������������������������������������������������������12
What Do They Want—Voice of the Customer..........................................21
What Is Missing?.........................................................................................23
3 Flight to Excellence....................................................................33
Ishikawa Fishbone—Why We Do Things.................................................34
Cause 1: Management................................................................................35
Cause 2: People..........................................................................................37
Cause 3: Method........................................................................................38
Cause 4: Measurement...............................................................................39
Cause 5: Machine.......................................................................................40
Cause 6: Material........................................................................................42

v
vi ◾ Contents

4 Layover—Obstacles to Improvement..........................................49
Excuse 1: It Is a Manufacturing Thing......................................................50
Excuse 2: We Tried That and It Did Not Work.........................................51
Excuse 3: It Is Too Complex for Most Organizations...............................52
Excuse 4: That Is Just Not the Way We Do Things Around Here...........53
5 Where Oh Where Is the End of This Journey?............................55
Basics of the New Culture.........................................................................56
Tactic 1: Move to a Proactive Stance within HR����������������������������������58
Tactic 2: Go and See..............................................................................58
Stand in a Circle Exercise..................................................................60
Tactic 3: Focus on the Process.............................................................. 67
Tactic 4: Do It Now................................................................................68
Tactic 5: Gain Knowledge......................................................................68
Tactic 6: Corporate Mantra....................................................................69
Organizational Alignment..........................................................................70
Tactic 7: Change Managers to Leaders..................................................71
Tactic 8: Transformational Leaders............................................................72
Tactic 9: Educate and Train....................................................................73
Tactic 10: Break Down Silos..................................................................74
Tactic 11: Avoid Quotas..........................................................................74
Tactic 12: Coach.....................................................................................75
The TLS Continuum—Optimal Organization Empowerment..................75
Tactic 13: Long-Term Planning to Optimize Services��������������������������76
Tactic 14: Always a Better Way..............................................................76
Tactic 15: Poka Yoke..............................................................................77
Tactic 16: Drive Out Fear.......................................................................77
6 This Is Where I Get Off..............................................................79
7 Case Studies................................................................................83
Case Study 1: Training Effectiveness: Is the Cost Justified?......................85
How to Use the Training Attribute Evaluation Tool—A User Guide��88
Training Assessment Tool—Corporate Tactical Improvement Areas��91
Tactical Improvement Area: Individual Performance Levels���������������97
Tactical Improvement Area: Increased Peer Pressure��������������������������97
Tactical Improvement Area: Employee Motivation������������������������������97
Tactical Improvement Area: Performance Assessment.........................98
Tactical Improvement Area: Focused Process Improvement................98
Tactical Improvement Area: Bottom-Line Results.................................98
 Contents ◾ vii

Tactical Improvement Area: Competitive Values...................................99

Tactical Improvement Area: Competitive Advantage............................99
Tactical Improvement Area: Employee Loyalty...................................100
Tactical Improvement Area: Compensation Benefits..........................100
Tactical Improvement Area: Building Trust.........................................100
Tactical Improvement Area: Relationship Building.............................100
Tactical Improvement Area: Networking Benefits.............................. 101
Tactical Improvement Area: Follow-Up Coaching.............................. 101
Training Assessment Tool—ROI Calculations.....................................103
Training Assessment Tool—Training Improvement............................106
Training Assessment Tool—Course Offerings.................................... 107
Project Conclusion................................................................................108
Case Study 2: Reduction in the Effective Time to Hire..........................109
Project Conclusion................................................................................120
Case Study 3: Streamline Operations Staffing Process........................... 121
Project Conclusion................................................................................126
Case Study 4: Invoices on Hold...............................................................127
Project Conclusion................................................................................133
Case Study 5: Documentation Errors...................................................... 135
Project Conclusion................................................................................ 141
Further Readings............................................................................143
Bibliography.............................................................................................144
List of Figures

Figure 2.1 SIPOC���������������������������������������������������������������������������������������14

Figure 2.2 Voice of the customer matrix��������������������������������������������������22
Figure 2.3 Evaporating cloud�������������������������������������������������������������������25
Figure 3.1 Ishikawa fishbone examples���������������������������������������������������43
Figure 3.2 Goal tree����������������������������������������������������������������������������������46
Figure 4.1 Bull in the china shop�������������������������������������������������������������50
Figure 5.1 Voice of the customer element�����������������������������������������������57
Figure 5.2 Spaghetti diagram��������������������������������������������������������������������66
Figure 5.3 Corporate culture specific�������������������������������������������������������75
Figure 7.1 DBAI project charter���������������������������������������������������������������87
Figure 7.2 DBAI SIPOC diagram��������������������������������������������������������������89
Figure 7.3 DBAI fishbone diagram����������������������������������������������������������90
Figure 7.4 DBAI balanced scorecard�������������������������������������������������������91
Figure 7.5 DBAI metrics���������������������������������������������������������������������������92
Figure 7.6 Training assessment tool—training effectiveness goals��������96
Figure 7.7 Training effectiveness tool—training impact assessment����102
Figure 7.8   Training effectiveness tool—training impact
assessment page 2�����������������������������������������������������������������103
Figure 7.9 Training effectiveness tool—ROI calculations���������������������104
Figure 7.10 Training effectiveness tool—training analysis����������������������106
Figure 7.11 Sparton Electronics project charter���������������������������������������110
Figure 7.12 Sparton Electronics SIPOC diagram�������������������������������������114
Figure 7.13 Sparton Electronics—fishbone diagram�������������������������������115
Figure 7.14 Sparton Electronics—pick chart�������������������������������������������115
Figure 7.15 Sparton Electronics—pick improvement items��������������������116
Figure 7.16 Sparton Electronics—hiring detailed activities���������������������116
Figure 7.17 Sparton Electronics—candidate activity sheet���������������������117

ix
x ◾ List of Figures

Figure 7.18 Sparton Electronics—Pareto chart����������������������������������������118

Figure 7.19 Sparton Electronics—HR process for
filling open positions�������������������������������������������������������������119
Figure 7.20 Medical device manufacturer—project charter��������������������122
Figure 7.21 Medical device manufacturer—nonexempt employee
process map���������������������������������������������������������������������������124
Figure 7.22 Medical device manufacturer—professional employee
process map���������������������������������������������������������������������������125
Figure 7.23 Medical device manufacturer—project overview����������������128
Figure 7.24 Medical device manufacturer—invoice pie chart����������������128
Figure 7.25 Medical device manufacturer—metric trend������������������������128
Figure 7.26 Medical device manufacturer—process flow map���������������129
Figure 7.27 Medical device manufacturer—invoice hold�����������������������129
Figure 7.28 Medical device manufacturer—invoice hold breakdown����130
Figure 7.29 Medical device manufacturer—invoice price versus PO�����130
Figure 7.30 Medical device manufacturer—breakdown invoice
versus PO�������������������������������������������������������������������������������130
Figure 7.31 Medical device manufacturer—invoice brainstorming��������131
Figure 7.32 Medical device manufacturer—improvement plan
(quantity received)����������������������������������������������������������������132
Figure 7.33 Medical device manufacturer—improvement plan
(wrong price)�������������������������������������������������������������������������133
Figure 7.34 Medical device manufacturer—project charter��������������������136
Figure 7.35 Medical device manufacturer—documentation error
­process map���������������������������������������������������������������������������137
Figure 7.36a Medical device manufacturer—documentation error
Pareto chart of defect doc/item��������������������������������������������138
Figure 7.36b Medical device manufacturer—documentation error
Pareto chart of factory����������������������������������������������������������138
Figure 7.37 Medical device manufacturer—­fishbone diagram.��������������139
Figure 7.38 Medical device manufacturer—brainstorming improve-
ment opportunities matrix (critical Xs) ID���������������������������140
Figure 7.39 Medical device manufacturer—data collection plan.����������141
Figure 7.40 Medical device manufacturer—results of MSA1
versus MSA2���������������������������������������������������������������������������141
List of Exercises

Exercise 1.1 W  hat Does Your Job Description Tell You about Your
Role in the Organization?������������������������������������������������������4
Exercise 1.2 D  escribe the Extent You Are Involved in the HR
Function of Your Organization.���������������������������������������������4
Exercise 1.3 D  escribe the Extent You Are Involved in the
­Organizational Improvement Process.����������������������������������5
Exercise 1.4 If an Individual Employee Takes the Initiative to
Make a Change to a Process for the Better, How Does
­Management Respond?����������������������������������������������������������6
Exercise 1.5 Has This Happened to You?��������������������������������������������������7
Exercise 1.6 Employee Stereotypes�����������������������������������������������������������8
Exercise 2.1 Recruitment Process Sources—Suppliers����������������������������13
Exercise 2.2 Recruitment Process Sources—Inputs.................................14
Exercise 2.3 Recruitment Processes..........................................................18
Exercise 2.4 Recruitment Process Outputs...............................................21
Exercise 2.5 Recruitment Process Customers...........................................21
Exercise 2.6 Recruitment Process—Evaporating Cloud...........................26
Exercise 2.7 Project Team..........................................................................29
Exercise 3.1 Ishikawa Fishbone................................................................34
Exercise 3.2 Ishikawa Fishbone................................................................35
Exercise 3.3 Ishikawa Fishbone................................................................37
Exercise 3.4 Ishikawa Fishbone................................................................38
Exercise 3.5 Ishikawa Fishbone................................................................39
Exercise 3.6 Ishikawa Fishbone................................................................40
Exercise 3.7 Ishikawa Fishbone................................................................42
Exercise 3.8 The Value Stream Map..........................................................44
Exercise 3.9 Goal Tree—Goal/Objective..................................................46
Exercise 3.10 Goal Tree—Critical Success Factors.....................................47

xi
xii ◾ List of Exercises

Exercise 3.11 Goal Tree—Conditions.........................................................47

Exercise 3.12 Goal Tree—Knowledge........................................................48
Exercise 4.1 It’s a Manufacturing Thing....................................................50
Exercise 4.2 We Tried That........................................................................51
Exercise 4.3 Too Complex.........................................................................52
Exercise 4.4 It Is Not the Way We Do Things..........................................53
Exercise 5.1 Reactive versus Proactive......................................................58
Exercise 5.2 Stand in the Circle.................................................................59
Exercise 5.3 Stand in the Circle Worksheet..............................................59
Exercise 5.4 Field Visit...............................................................................65
Exercise 5.5 Organizational Flow..............................................................66
Exercise 5.6 Process or People................................................................. 67
Exercise 5.7 When If Not Now?................................................................68
Exercise 5.8 Where Would I Go?..............................................................69
Exercise 5.9 Who Is Listening?..................................................................69
Exercise 5.10 Corporate Governance..........................................................71
Exercise 5.11 Leadership Role.....................................................................72
Exercise 5.12 Educate versus Train.............................................................73
Exercise 5.13 Silos........................................................................................74
Exercise 5.14 Succession Plan.....................................................................76
Exercise 5.15 Driving Out Fear...................................................................77
Preface

Vo On August 28, 1963, Dr. Martin Luther

OC cus ice of
SiP tom
er
King delivered his iconic “I have a
Dream Speech.” Like Dr. King, I, too,
Pro ap

have a dream or more correctly a

e
l tre

m
ces

vision. While I am not referring to my

G oa

Achieving HR
Excellence four-year-old son as Dr. King did, I am
Road Map
clou ting

referring to our global workplace. Let

stre
Valu map

a
d
am

por

Me paraphrase Dr. King’s speech and

e

Eva

Fis
relate my vision or dream to you, the
dia hbon j e ct
gra e o
Pr rter reader.
m cha
I have a goal in my professional life
to deliver a message. It is a message
that will transform our business world
to greater heights. Today, this installment will lay out this vision for you,
the reader.
If we go back to the time of the Emancipation Proclamation, we were
deeply involved in the agricultural age. This was a period when the family
ran the farm and each individual had an integral part in the success of the
farm. As we moved to the industrial age, we lost that human capital asset
focus.
In a sense, we have come to this point in our business development
to cash a check. Starting with the Quaker business model, business laid
out a promise to the organization that management would take care of its
most valuable tool in its arsenal to compete in the global marketplace—
the human capital assets that are now nonowned, leased corporate assets.
This promise stated that all programs initiated by the organization would
be centered on a guarantee of being a valued part of the organization. As
we look at many organizations today, it increasingly obvious that American

xiii
xiv ◾ Preface

business has defaulted on this promise. The focus moved from considering
the human capital asset as such to being an expense item that affected the
corporate bottom line.
But we refuse to believe that the promise is bankrupt. We refuse to
believe that there is no room for organizations to change in the global
workplace. So we are writing this book to show the way to reclaim that
promise. It would be fatal for business to ignore this message. This means,
as Dr. Deming suggested, we need to move to a new philosophy in which
management learns its responsibilities and takes on leadership for change.
This change establishes some clear indicators of success.

◾◾ First, we need to rid the organization of the words “It is not my job.”
The move to a quality focus is based on the practice of spreading
­quality throughout the organization so that it becomes everyone’s job.
◾◾ Second, we must allow the rank and file the authority to make changes
to the process if what they see is causing the organization to not meet
the needs of the customer.
◾◾ Third, we must recognize the worth of everyone involved in the
­organizational processes.

This journey of change is not one we can walk alone. And as we

embark on this journey, we must make the pledge that we shall always
march ahead. It means we must remove from organizational vernacular the
­objections to moving forward. It means that it must be all hands on deck in
this new philosophy. It must become the corporate mantra that quality is the
primary focus of the way we do business. Everyone must learn the keys to
reaching that goal and then spreading the message to the organization and
our customers. The organization must realize that we cannot turn back once
we begin this journey.
I am not unmindful that some of you have read this preface with great
trials and tribulations. You have come from a world that is ­embedded
in a tradition that says this is not the way we do things here. Some of
you have been confronted by organizations very much averse to doing
things d­ ifferently. You have been the victims of command and control
­organizational structures. Know and understand it has to change.
I have a dream that one day our businesses will understand what quality
means and practice it every day.
 Preface ◾ xv

I have a dream that one day our organizations will understand that the
quick buck is not the solution to organizational sustainability.
I have a dream that one day all our organizations will learn the ­language
of business and understand that process metrics are there to make us better,
not hold us back.
I have a dream that one day management and our human capital assets
will all be on the same page as far as producing the products and services
we are known for, without error.
This is my hope and this is the faith that I go forward with—that there
are better days coming: days rooted in doing things right the first and every
time, and rooted in believing that we all have a responsibility to meet the
voice of the customer in every interaction we have with them.
Join me on this exciting and dynamic journey. Join me in this effort to
vastly improve the focus of our organizations within the global workplace.
Together we can create a different business world in which we are all on the
same page.
This sequel to Achieving HR Excellence through Six Sigma is the path to
my vision.
Eighteen years ago, Dave Ulrich and the team at the RBL Group took
us on a journey with the publication of Human Resource Champions.* In
his book, Ulrich suggested that there were four roles for human resource
­professionals—strategic partner, administrative expert, employee champion,
and the change agent. In order to transform our organizations to this new
business model, it required a transformational journey that was riddled with
both obstacles and challenges. This model required management and the
organization as a whole to completely change the way they see not only the
organization but also the way in which it operates. This transformational
journey required a change in the way organizations functioned along with a
new normal in the form of a changed corporate culture.
Recently, the Society for Human Resource Management (SHRM) has
undertaken a drive to introduce the SHRM Competency Model,† which at
its core involves much of what Ulrich and others have been calling for. If
you dissect the competency model, while not in specific terms, it makes

* Ulrich, Dave. Human Resources Champions. Boston, MA: Harvard Business School Press, 1997.
† Society for Human Resource Management. SHRM Competency Model. http://www.shrm.org
/hrcompetencies/pages/default.aspx
xvi ◾ Preface

r­eferences to competencies that are included in the Theory of Constraints–

Lean–Six Sigma (TLS) Continuum methodology outlined in the prior work.
The problem with these discussions has been that while the c­ oncepts
are needed and at this point in time are almost a requirement for the
­sustainability of our organizations, there has been no clear concept or ­road
map on how to accomplish this transformation.
This journey of transformation involves a difficult and challenging
effort. I know because I have taken the journey. In 2001, I read a book,
which turned my whole outlook toward business in a total new direction.
That book was The Goal,* by Dr. Eliyahu Goldratt. This phenomenal
book led me, with the assistance of Dr. James Holt at the University of
Washington–Vancouver, to write an article for Mobility Magazine titled
“Driving the Relocation 500”† in which I utilized the theory of constraints
to reduce by half the timeline required to return an employee to full
productivity f­ollowing the relocation of the employee and his or her family.
In 2008, I made the decision to return to higher education to expand
my knowledge of continuous process improvement by undergoing
the g ­ rueling process of earning certification as a Six Sigma Black Belt.
Combined with my over 30 years of human resource experience, it became
a natural p ­ rogression to combine the two disciplines. It enabled me to see
­organizations in a whole new light.
The quest for this new culture was the impetus in 2013, through
Productivity Press, for my writing the book titled Achieving HR Excellence
through Six Sigma,‡ which was taken out of the 2-day seminar we developed
in 2009. The seminar provided a road map for human resource ­professionals
from which the attendees could learn the process of introducing this change
to their organizations. You will see in Chapter 7 how one of the ­seminar
attendees made some dramatic improvements in the human resources (HR)
function.
I have taken the transformational journey described above to the
degree that I believe I have reached the goal of being of able to look at
­organizations to discern the concepts of what is holding them back from
­becoming truly productive in their industries. The journey has at its basis
a new perspective as the anticipated outcome of this sequel to the original

* Goldratt, Eliyahu. The Goal. North River Press. Croton-on-the-Hudson, NY: Northern River
Press, 1984.
† Bloom, Daniel. Driving the Relocation 500. Mobility magazine, October, 2001.
‡ Achieving HR Excellence through Six Sigma released by Productivity Press on August 13, 2013. See
the Productivity Press website at http://www.crcpress.com/product/isbn/9781466586468.
 Preface ◾ xvii

volume. You, the reader, can take the same journey with the understanding
that it is unique at best.
Just to ensure that we are on the same page as we begin the journey,
think back to the last family vacation you planned. What steps did you take
in planning that last trip? If you are the typical family, you looked at the
calendar and decided when you planned on leaving. You also planned out
when your expected return was.
With the beginning and ending dates in place, you began to determine
how you were going to get there and where you were going to stay. This is
a very consistent scenario for most planned family vacations.
The intent of The Field Guide to Achieving HR Excellence through
Six Sigma is to take you on a different kind of journey. This journey of
­continuous process improvement meets none of the criteria I discussed
above. I can state unequivocally when we are leaving. We are leaving
on this journey when the organization realizes that they have an urgent
­problem that must be addressed. They also understand that the status quo
will not serve the issues required to solve the problems. That is the sole
thing I can relate to you. We do not know how we are going to get there.
We don’t even know where we are going or how long we are staying. We
don’t even know what we are returning to.
This journey has two primary key performance indicators (KPIs) that
form the basis of this book. First, we will never return to where we
began. We can’t go back to that point in time because it no longer exists.
The old normal has gone the way of the dinosaurs. Management has
­transformed into authentic leaders and away from being managers. We do
not and c­ annot serve our human capital assets and our stakeholders from
a ­command and control perspective. We have been forced into looking at
our organizations and workplaces with the view of being a coach, teacher,
and mentor. Human capital assets are now true partners in the success of
the organization. Our roles have changed and so has the culture of the
­organization. The organization is “forced” into recognizing the worth of the
entire human capital asset components within the operation setting. The
direct result is that we now run our organizations from collaborative teams,
which cross all boundaries in the organization.
Second, we do not have an ending point because we are entering into a
journey where the final destination is under constant reconstruction. This
journey can be difficult but it also can be enlightening as the result is a new
level of productivity on the part of the total organization. I understand the
trials and tribulations of this journey because I have been there.
xviii ◾ Preface

It is my intent, therefore, to take you on this journey through the pages of

the book you have in your hands. Consider that the end result of our time
together will be the basis for a new process of solving your organizational
problems. Consider the end result being the identification of changes that
will make the organization more efficient and sustainable in the long run.
I will equip you with the knowledge to take your organization into the
future.
A word of caution is required at this point. If the reason you are looking
at the former work flow and the present one is to discover a method to
reduce headcount, then you should stop here and now. Thank you for the
visit but this is not the place for you. Only if you are on the verge of closing
the business should headcount reduction be the primary reason for you
taking this journey.
Returning to our journey, what I discovered was that the implementation
of the TLS Continuum methodology was the journey. It requires us to
continue with an open mind, as this is like nothing you have ever ventured
before. It requires you to have the ability to challenge everything you do.
This journey will be difficult for some, as it requires that we break long-
established rules. It requires that you forget what is considered normal
for your organization. It requires you to change the corporate culture
from that which is comfortable. It requires us to look at things differently.
Achieving HR Excellence through Six Sigma provided us with the road map
to u­ nderstand the new direction. It clearly identified where we started from
with the work of Dr. W. Edwards Deming. It gave us a look at how some
­organizations have laid the path for you by successfully implementing
these tools within their organizations. However, not every organization is
a DuPont or a Ceridian. So the question becomes, do we understand that
we need to make these changes in order to be competitive in the global
workplace? Do we understand how the organization goes about making the
changes called for?
The Field Guide to Achieving HR Excellence through Six Sigma will
answer those questions. It is designed to take you step by step along this
journey. Further, it will provide you with focused results-oriented solutions
to empower you to change your organization. It will provide you with a
clear picture of where your organization is failing to meet the voice of the
customer.
Let’s begin the journey. Fasten your seat belts because it is going to
be a rocky ride. We can’t change the culture of the organization without
 Preface ◾ xix

experiencing some turbulence from those who are resistant to change. I

get that not everyone is comfortable with changing the status quo, but we
are left with no other choice. The reason for this is, like any evidence-
based effort, we can’t tell you what the evidence will show until we are
finished. In addition, the continuous process improvement effort, by its
very nature, is a constant exercise within your organization. Once you
resolve one issue another pops its head up and likewise needs to be
resolved.
Unlike its predecessor, this volume is a field guide designed to provide
you with step-by-step processes to take you on your own journey to an
organization that is strategic, innovative, and aligned with the organization
mission. It will lay out how we get from identifying the problem to the
initial resolution of the issue.
Earlier, I discussed brief descriptions of the steps we take to plan out a
family trip. To make this journey clear, I will use the same steps. This field
guide consists of seven chapters; each one is a counterpart to the steps
outlined in below. Each chapter will also include exercises for you to plan
your own journey. We will keep that journey theme as we progress to show
what we have achieved.

Chapter 1. Creating a Center of Excellence—The subtheme of this

field guide is How to Create an HR Center of Excellence. In order to lay
the groundwork for that task, we will return to the first chapter of the
prior work and expand our definition of HR Excellence. I will return
to the view of the anonymous definition and look at how that impacts
your career. The definition will provide us the understanding as to what
a center of excellence is.
Chapter 2. Preboarding: Seeing the Problem—Every journey begins
with a road map of how we intend to reach the destination. In the case
of the continuous process improvement effort, it begins with identifying
the problem—seeing where we are not meeting the voice of the
customer. The chapter lays out a step-by-step method to recognize the
problems you face.
Chapter 3. Flight to Excellence—The second stage is to feel the
problem. We feel the problem by gaining an understanding of how
the problem is affecting the organization. I will show you how to enter
the second stage of the process—measuring the impact of the results of
your problem definition.
xx ◾ Preface

Chapter 4. Layover—Obstacles to Improvement—Chapter 4 considers

the reasoning behind our belief that this journey is difficult at best. We,
as humans, tend to resist change. But this journey mandates a change
to a new normal. This chapter looks at the bull in the china shop and
considers the arguments that may be posed in objection to the change
you are proposing.
Chapter 5. Where Oh Where Is the End of This Journey?—This
chapter covers the final two stages of the DMAIC (define–measure–
analyze–improve–control) process, looking at the steps to improve the
process and create the standard of work. It also discusses the future of
your improvement efforts.
Chapter 6. This Is Where I Get Off—There is only so much I can
do to guide you along this fantastic journey. There is a point at which
you have to take responsibility for your own future. There is a point
when you have to take control of the process. In this chapter, I provide
guidelines on where to go next based on the concepts discussed in
Chapter 9 of the original book.
Chapter 7. Case Studies—Unlike the original book, these case studies
are different in nature. In the original work, I presented a number
of case studies of organizations that had successfully utilized the Six
Sigma methodology to improve and correct HR issues. As is typical of
most case studies, they were written in narrative form, creating a story
behind the project. I wanted to try something different in this field
guide. As a result, these case studies are presented in a different format.
The only narrative is in the form of two short paragraphs. The first
contains a brief description of the organization involved. The second is
a description of the problem being presented.

Following these two paragraphs, the corporations have generously

permitted us to show the exact project documents used by the organization.
These include the project charter, and any other documents associated with
the project.
If you are reading this book because you read Achieving HR Excellence
and wanted more information, we welcome you back. If you are reading this
book because the idea sounded interesting, join the ride. It will be fun.
So fasten your seat belts and let’s begin this unique journey.
Acknowledgments

The Field Guide to Achieving HR Excellence through Six Sigma is my third

effort at writing a book. After writing three books, one lesson that I have
learned is that these endeavors do not operate in a vacuum. The ability to
get my message to the reader is dependent on a wide range of people with
a wide range of talents. Each of them, in their own way, contributes to the
success of the project.
First of all, I must thank the people at Taylor & Francis and Productivity
Press for their willingness to give a relatively unknown writer a chance
on the book on which this book is based and then again to be willing
to publish the sequel. I especially need to thank executive editor Michael
Sinocchi and project coordinator Jessica Vakili for their guidance through the
process. Once again, as I did on Achieving HR Excellence through Six Sigma,
it was a pleasure to work with project editor Iris Fahrer on the sequel to that
work.
Peter Pande in his works in the Six Sigma arena stresses that there is
no single Six Sigma way. So while the road map presented in this book is
my own thoughts about the way to guide human resource professionals
on this journey, I have greatly appreciated having this project reviewed by
peers in the field. My thanks go out to Bob Sproull, author of the Ultimate
Improvement Cycle and Epiphanized to ensure I got the TOC component
correct and to William Mazurek who, since my Six Sigma training, has
been my sensei and friend and offered continued support in my efforts. I
also would like to thank Steven Bonacorsi who helped with the material
regarding the Ishikawa diagram and helped fill in some of the holes as
I proceeded through the material in this book. Finally to my neighbor,
Don Easterday, an engineer with the local operations of a Fortune 1000
organization, for his willingness to review this journey for its accuracies and
implications for organizations.

xxi
xxii ◾ Acknowledgments

The question of a good definition for transformational leader is elusive

at best. I appreciate the assistance of Bob Sproull, Loren Murfield, Larry
Williams, and Kent Linder for their input on this critical part of The Field
Guide. I am not sure we reached that golden consensus on the meaning of
a transformational leader but their input has been greatly appreciated. This
is in part because everyone has his or her own individual view about what a
transformational leader is or should be.
Each of us has our own unique learning styles, based on how we intake
information. Some of us are more visual than others. Some are more verbal
than others. Some are more physical in nature. I have tried in these pages
to present the opportunity for you, the reader, to learn the implementation
process based on your individual learning style. So for those who are more
visual, I have to thank the management and HR staff at Sparton Electronics.
Their HR manager, Lorri Kindberg, participated in my 2-day seminar from
which this material is based and the second case study in Chapter 7 is the
result of her final project for that seminar. I also extend my thanks for their
participation in compiling projects that would show visual learners how to
implement a project along with the accompanying documents to show you a
project in action. As always, William Mazurek, my black belt instructor, has
been there when I needed help. In this case, he contributed three additional
projects for the case study chapter.
I am equally appreciative of my peers within the HR profession who
have endorsed the context that I presented here is the correct context given
the rapidly changing organizational playing field: Tresha Moreland, vice
president of Human Resources for the Dameron Hospital Association in
Stockton, California; Nicole Ochenduski, HR manager with Church & Dwight
Company Ohio facility; Bob Sproull, the author of Epiphanized; Gary
DePaul, organizational development consultant; and Christina Gasperino,
formerly an HR manager with KForce and currently the director of Employee
Relations and Services with Wellcare Health Plans.
Author

Daniel T. Bloom, SPHR, SSBB, SCRP, is the founder and chief executive
officer of Daniel Bloom & Associates, Inc. Founded in 1980, DBAI is a Largo,
Florida–based human capital consulting firm dedicated to helping clients to
create strategic, innovative, and aligned organizations. His clients represent
a wide range of organizations from small organizations to members of the
Fortune 1000.
Daniel is a well-respected author, speaker, and human resource strategist,
who, during his career, has worked in a wide variety of industries. He has
been an educator, a contingency executive recruiter, a member of a Fortune
1000 divisional HR staff, and the corporate relocation director for several real
estate firms in the Tampa Bay area. He has been an active member of the
HR social media scene since 2006 with contributions to Best Thinking.com,
Blogger, WordPress, Human Capital League, and recruiting blogs. He also
serves as a moderator of the Lean Six Sigma HR group and a manager of the
Brandergy groups on LinkedIn. He is also a frequent contributor to the HR
site Hirecentrix.
He has published two books—Just Get Me There in 2005 which is the
documented history of the corporate relocation industry and Achieving HR
Excellence through Six Sigma published in 2013. He has also written more than
40 articles on various HR issues that have appeared both in print and online.
Daniel is a member of the Suncoast HR Association, Worldwide ERC,
National Speakers Association, the MBA Coaching Program at the University
of Tampa, and the Engineering Technology and Building Arts Advisory
Board of St. Petersburg College.
He earned a bachelor’s of arts degree in education from Parsons College
and his Six Sigma Black Belt from the Engineering and Technology Program
at St. Petersburg College. He holds certification as a Senior Professional in
human resources, a Six Sigma Black Belt, and a Senior Certified Relocation
Professional.

xxiii
List of Abbreviations

DHR device history record

DMAIC define–measure–analyze–improve–control
DOP department operating procedures
DPMO defects per million opportunities
FTE Full time equivalent employee
HIPOS high potential, high performing
HR human resources
KPI key performance indicators
MSA measurement system analysis
NCR nonconformance report
SEO search engine optimization
SHRM Society for Human Resource Management
SMEs subject matter experts
SMEs small to medium enterprises
TLS Theory of Constraints–Lean–Six Sigma

xxv
Chapter 1

Creating a Center
of Excellence

Achieving HR excellence is the result of CARING more about your

organization than others think wise; RISKING more than others
think safe to change the corporate culture; DREAMING more than
others think practical about the potential of your organization;
EXPECTING more than others find possible from your human
capital assets

The subtheme of this Field Guide to Achieving HR Excellence through Six

Sigma is The creation of a Human Resource (HR) Center of Excellence. The
Six Sigma problem-solving methodology requires that we must begin by
defining the problem. For us the first step begins with defining the term
“Center of Excellence.” Part of the difficulty here is that there is apparently
no general consensus as to what the term means. There is some agreement
that Centers of Excellence involve four traits.
First, the organization creating the Center takes the necessary steps to
improve its own expertise. This expertise improvement goes beyond the HR
department. It means as HR professionals we must understand the whole
organization. We must understand the process flow from the front door to
the rear door and all the steps along the way. The intended output is for
the HR department to be recognized as the primary source of information
on a wide range of human capital management issues. We achieve this by
­demonstrating to the various parts of the organization that we understand
the organizational alignment and the strategic direction.

1
2 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Second, the Center of Excellence provides the development of the

resources necessary for HR and others to reach that expertise level. These
resources may include data, information, training, and other vehicles to lay
the groundwork necessary to assist the organizational assets to learn what
they must achieve to reach the levels they are seeking. HRs must become
the go-to person for how the changes we propose will affect the talent
­management of the organization.
Third, the Center of Excellence effort requires a change in the corporate
culture. The move to a Center of Excellence is not a fad thing. The move
is not a here in the moment thing where we do it now but give us a
week and we will have gone on to something different. It is a permanent
fixture within your organization. It is an aspect of the community we call a
corporation that is ever present in how we operate. It is not a department;
it is an ongoing process.
Fourth and finally, the expectation is that the Centers of Excellence will
share their newfound expertise throughout the organization. As you obtain
the status of experts it becomes your responsibility to spread the message
to the other functions that have not found the way as of yet. As we achieve
new milestones in our improvement effort we have a duty to show others
how they can achieve the same or better results. It is your responsibility—no
make that duty—to further share the vision we discussed earlier with your
organization.
Beyond the discussion of the components above, there is no defini-
tive definition for a Center of Excellence. The Internet does not help us
gain a further understanding to the term either. If you Google “Centres of
Excellence,” the search engine returns 50,900,000 specific entries. If you turn
around and change the spelling of “Centres” to the more American version
and spell it “Centers” you get back 53,100,000 entries. To further confuse the
issue, the vast majority of the entries are for organizations that have Centers
or Centers of Excellence rather than looking at the specific characteristics of
the term. We can’t create what we don’t understand. It is therefore critical
that we determine a definition for the end result of what this book is set out
to accomplish. It is critical that we believe both in the established definition
of Centers of Excellence and the impact of them in the workplace.
In this chapter, I discussed several definitions of what we mean by the
term “HR excellence.” My primary emphasis was on an anonymous quote
reportedly on the wall at the United States Military Academy at West
Point. Based on this definition, I proposed the ultimate definition of “HR
excellence.” That definition can be found by looking at the quotation at the
 Creating a Center of Excellence ◾ 3

beginning of this chapter. To help us with the creation process, I want to

take some time and further explore this definition. That path is shown in
the following.

CARING More about Your Organization

than Others Think Wise
The first component of the definition is that you need to care more about
your organization than others think wise. There is much discussion these
days about the level of employee engagement in our organizations. What
is c­ ommon in many organizations is that we tuck away our functions into
these convenient pigeonholes called silos. These silos become this grand
world within a world with formidable borders that are not supposed to be
breached. Their very e­ xistence is supported and challenged by internal
politics and turf wars.
We see these silos in action when we approach either an internal
­colleague or an external customer and the response to our request is “that is
not my job.” We tend to fail to look at the entire global picture and our roles
in it. The common reaction is that if you dare to go outside these ­narrow
confines you are risking your career or, even more ominous, you are ­risking
the sustainability of the organization. The problem is that this becomes a
continuous cycle. Every time we go to someone and we are told the ­solution
is “not my job,” it further ingrains in the organization the belief that this
is just the way we do things here. There is no room for d ­ iscussion or a
­different way of doing things.
Look around your organization: What do you see? I would hazard the
guess that in many organizations you consistently hear the response “It is
not my job.” The Center of Excellence requires a deeper sense of belonging.
The West Point definition suggests that excellence is a set of behaviors or
actions that manifest themselves in how we are perceived by the organiza-
tion and the marketplace. It suggests that in order to achieve a state of excel-
lence, we are required to change from the path of least resistance to more
involvement in the outcomes. The changes are required both on an indi-
vidual basis and on an organizational level. It further suggests that in order
to achieve a state of excellence you have to be an active participant in that
change process. In order to create this culture change we need to expand
the view beyond the silo mentality. We need to look at the organization
from a macro view.
4 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Exercise 1.1 What Does Your Job Description Tell

You about Your Role in the Organization?
The purpose of the job description is to detail what key perfor-
mance indicators are required to effectively perform the duties
and responsibilities of the position.

According to Robert L. Mathis, in his Human Resource Management,* a job

description along with the job specifications define what the organization
expects from the position and what that position contributes to the total
organizational structure. We begin the process of uncovering the role we
play by examining our individual roles within the organization. A p ­ roperly
written job description should detail the extent to which you have the
­ability to influence what goes on within the HR function. A properly ­written
job description should detail the extent to which you have the ability to
influence what goes on within the entire organization. Does the wording of
your job description indicate the extent of your ability to be able to seek out
and try to remove those activities that are hindering the HR department and
the organization? However, the job description is only the beginning stage
of our examination of this issue.

Exercise 1.2 Describe the Extent You Are Involved

in the HR Function of Your Organization
Are you involved in a mini silo within HR or are you part of a
­bigger picture?

* Mathis, Robert L. Human Resource Management. 12th Edition. Mason, OH: Thomson/Southwest,
2008. p. 186.
 Creating a Center of Excellence ◾ 5

Consider your position. Based on your review of your position, what would
your response be to the following questions?

◾◾ Are you involved in routine tasks that are done almost by rote or are
your tasks involved in the total operation of the department?
◾◾ Does your job description allow for you to use critical-thinking skills
in the performance of those duties?
◾◾ If push came to shove could you do your peer’s job if they were not
present?

Creating a Center of Excellence requires us to have involvement in

c­ ross-functional teams whose purpose is to make the operations of the
­organization run more efficiently throughout the organization, not just in HR.
Therefore, in order to achieve this we must be involved in the total effort.

Exercise 1.3 Describe the Extent You Are Involved

in the Organizational Improvement Process
If we accept the premise that the key here is the existence of
cross-functional teams, how involved are you in this effort?

What is the reach of your involvement? Can you make suggestions for process
changes that are reasonably considered or are they counted against you for
rocking the boat? I stated earlier that you must get out of your silo and be part
of the total organization. As a result, we must be part of the entire improvement
effort. This means that HR must be involved not only in the HR improvement
efforts but also those taking place in marketing, sales, finance, purchasing,
communications, and legal. If there is an improvement effort going on within
the organization anywhere HR must be involved. The reasoning for this is that
whenever your improvement process involves the human capital assets of the
organization, HR as the talent gatekeeper has a vital role in that effort.

RISKING More than Others Think Safe

to Change the Corporate Culture
I totally get it that the easy way out is to play it safe. We are forever hearing
of professionals being told “don’t rock the boat.” The status quo is fine. If
there is a chance that it will fail, don’t do it. If it might affect this cushy job
6 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

you got, don’t do it. But understand this: change is inevitable. The sustain-
ability of your profession and your organization demands that you take
risks. Along with change comes risk. So take some.

Exercise 1.4 If an Individual Employee Takes the

Initiative to Make a Change to a Process for the
Better, How Does Management Respond?
Change = Risk = Improvement

We can’t change the organization without undergoing some level of risk. We

risk that we might fail in the attempt to change the organization. We risk that
we might have the wrong human capital assets involved in the new process.
We risk that the human capital assets may not accept the change. We risk
that management might put up obstacles to achieve the goals we have set.
We risk that our customers may not understand why we are changing the
operating procedures. We are left with no option but to take the risk when
we proceed. On the other side of the coin, we are at risk when we decide
to keep the status quo. We would not be suggesting the change initiative
unless we had to for the sustainability of the organization. The Six Sigma
­methodology brings about a change in the corporate culture. We can’t take
this journey without changing the corporate culture. The very nature of that
change is risk-abound.
The problem comes about when the organization does not walk the
walk and talk the talk. When the organization issues empty dialogue to the
FTEs regarding their belief in experimentation, we fail to recognize the risk
involved. We have all seen these situations. The corporation makes some
changes to a process and then a month later it changes again. The talk that
we present to the marketplace is that we are supportive of our human capital
assets thinking out of the box. We encourage them to make changes where
they see the need but if the change fails we then penalize them for trying.
We count it against them in their annual performance review. We count it
against them in their annual raises. Contrary to the advice of Dr. W. Edwards
Deming, we count it against them when they don’t make quota.
 Creating a Center of Excellence ◾ 7

The result of the dichotomy is that the human capital assets become
accustomed to the policy that the organization says we are supportive of
change but don’t try. Taking the risk is not beneficial to the employees or to
the HR function. The status quo becomes the ingrained method of operation.
The purpose of Exercise 1.4 is for you to assess how your ­organization
responds to the initiatives of your employees. When it comes to risk
issues do you walk the walk and talk the talk? Suggest a change to your
­organization and what does your management say? Do they tell you let’s go
with it as in the GE Workout or the Change Acceleration Process? * Do they
tell you to let it go because that is just not the way we do things here?

DREAMING More than Others Think Practical

about the Potential of Your Organization
Human nature tends to limit what we see in our environment that ­surrounds
us not only as individuals but also as organizations. We conceive this idea in
our minds as to what is possible. The problem is in most cases it narrows the
potential of the organization. Our schools no longer teach critical-thinking
skills. Based on our cultural upbringing, we look at the world around us with
rose-colored glasses which only see a partial view of the world.

Exercise 1.5 Has This Happened to You?

You discover an easy way to enhance the organization. You
­prepare the arguments as to why and how this can be introduced
to your organization and management says no.

Management has the tendency to look at the world with the same rose-
colored glasses. Changes to an organization are filtered through the e­ xisting
corporate culture that may very well be centered on false reasoning.

* For a more in-depth understanding of the GE Workout process, I suggest that readers take a look
at David Ulrich’s book on the topic, GE Workout. New York, NY: McGraw-Hill, 2002.
8 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

At some time in the past, someone attended some conference and heard
an idea that sounded good to them. They returned to the organization and
implemented the idea years ago. The problem is that this idea may very
well not be good strategy today. However, since it was implemented years
ago, it remains ingrained within the organization and not subject to change.
This j­ourney we are on will very well mandate just that change.

EXPECTING More than Others Find Possible

from Your Human Capital Assets
The final part of the HR excellence definition is a look at the organizational
potential. Numerous studies have shown that we tend to make decisions
as to someone’s potential within the first 4–6 seconds after we meet them.
We develop these stereotypes and they cloud our views going forward. Our
look at stereotypes says John Doe is not capable of performing a particular
task based solely on our view of that person.

Exercise 1.6 Employee Stereotypes

What is your organizational attitude toward the capabilities of the
human capital assets in your organization?

If you are like most managers, your tendencies are to believe that your FTEs
are fixed in space as to what they are capable of. The capabilities of your
human capital assets can be defined in several fashions.

◾◾ First, there are the innate skills they bring with them. These skills
come from their education, training, and upbringing. They are skills
that are representative of the basic abilities we bring to the table.
◾◾ Second, there are skills that the human capital assets learn through the
training programs that your organization provides. Primarily centered
on skills that are needed to meet the key performance indicators of the
positions.
 Creating a Center of Excellence ◾ 9

Two very different sides of a spectrum influence the skill abilities of our
FTEs. One side of the spectrum is represented by the will of the FTEs to
learn those skills. As organizations resist change so do our employees. As
much as we may try we can’t always get every FTE to come to the feeding
trough. No matter what we do they will not learn the new skills required. In
these cases, the best course of action is to coach the individual out of your
organization.
At the other side of the spectrum are the FTEs who are open to
­undergoing training to educate them in the required skills. With these
employees, it is necessary that we recognize that once we have educated
them on the new key performance indicators (KPIs), we may very well have
to provide additional coaching to get them up to speed. The final aspect of
the Center of Excellence definition is to bring the skills to others within the
organization.
The bottom line of the process to create the Center of Excellence in HR
is to change the way we think and feel about our organizations. We need
to strive to become the organizational experts in regard to the impact of the
human capital assets within the organization. This includes the d ­ eveloping
and maintaining of the resources needed to help the organization also
become the experts in what they do. When we accomplish this we create
a permanent change in the culture. The Center of Excellence becomes a
­permanent part of the organization.
In the succeeding chapters, I will lead you through this process in
a clearly defined step-by-step road map. Once you have followed the
road map, you will create the critical Center of Excellence within the HR
function.
Let’s continue the journey.
Chapter 2

Preboarding: Seeing
the Problem

Good afternoon passengers. This is the pre-boarding

­announcement for TLS Continuum flight 2014 to Destination
Unknown. We are now inviting those passengers who contribute to
our sustainability to begin boarding at this time. Please have your
boarding pass and identification ready. Regular boarding will begin
in approximately ten minutes time. Thank you.*

Seeing the problem is the beginning of our journey. It entails identifying

several components of a successful journey as described earlier. We need to
identify who is going on this journey, how do we plan on getting there, and
why we are going on the journey.
Prior to beginning this part of the journey, I need to step back from our
journey and take a moment to try and relay my take on an ­ongoing a­ rgument
that is taking place in Corporate America. This is the e­ ndless debate
­regarding whether we are talking about shareholders versus stakeholders.
While the two terms are interrelated, they are in reality two different groups
of organizational constituents. We begin with the concept of shareholders.
The theory behind the shareholder assumes that the reason your organization
exists is to earn a profit.† That is what the basis is for chief executive officer

* The dialogue is taken from a sample captain’s speech found on the website http://airodyssey.net
/reference/inflight/
† http://www.corplaw.ie/blog/bid/317212/Shareholder-Stakeholder-Theories-Of-Corporate-
Governance

11
12 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

(CEO) evaluations. This is what justifies the CEO’s job. That is what the goal
is for the efforts of the chief financial officer (CFO). This is what the board of
­directors uses to determine the strategy for the organization. The fallacy with
this ­narrow view is that we are referring to only those individuals and entities
that have a vested financial interest in your organization. Typically, this means
they have in their possession shares of stock in your organization.
I guarantee that if you start using the term “stakeholders” around the office
someone will challenge you by stating directly or indirectly, “Listen stupid,
we are only concerned with the shareholders.” The argument suggests that
unless you have a physical financial investment in the organization your
thoughts, needs, and wants are of no consequence. Therefore, everything
we do or everything we say is designed to answer to the shareholders about
whether we are providing a return on their investment. However, that is
­looking at our organizations via tunnel vision. It suggests that no entity
­outside those shareholders has any interest in the outcome of our business.
The other side of the coin is a much broader perspective on your
­organization. In 1984, Dr. Edward Freeman* suggested that there was another
way to look at the organization. Freeman defined stakeholders as any entity
that is either affected or can affect the business processes. This would
include not only the shareholders but also the entire supply chain. When we
change the direction of the discussion from shareholders to stakeholder, we
now look at the organization from the total interaction within the b ­ usiness
­workplace. The stakeholders not only have a financial interest but they have
an ­investment in the outcomes of the organization. It is a much clearer but
harder-to-define view of the processes that govern the sustainability of your
­organization. The following exercise will clarify this stakeholder versus
­shareholder argument.

Who Is Going? (Suppliers, Inputs,

Processes, Outputs, Customers)
The first tool we can utilize in this part of the process is a form referred to
as a SIPOC. It demonstrates the suppliers, inputs, processes, outputs, and
the end users of the business. It is applicable to every process within your
­organization. It provides a basic understanding of the flow through the

* http://www.corplaw.ie/blog/bid/317212/Shareholder-Stakeholder-Theories-Of-Corporate-
Governance
 Preboarding: Seeing the Problem ◾ 13

organization. This same exercise can be applied to each of your suppliers

within the supply chain as to how their output ends up as suppliers/inputs to
your organization. For your process of understanding, the tool I have provided
you below a copy of the form that is typically used in this identification effort.
SIPOC Diagram
Template Provided by Bright Hub Project Management
Suppliers Input Process Output Customers

Think back to the last trip you planned. Was part of the planning process
to take into consideration who was going to go on this trip? Our journey is
no different. From the outset, we need to determine exactly who is going on
this journey. So I need you to take a moment, stop reading the text and think
out of the box about who impacts your human resource (HR) processes. Let
me expand that. Who impacts the process flow in your organization?

Exercise 2.1 Recruitment Process Sources—Suppliers

In order to simplify this journey somewhat, like we did in
Achieving HR Excellence through Six Sigma, consider your
recruitment process and identify your stakeholders in that
­process. Think out of the box.


14 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Process Process Process

Supplier

Your organization

Customer
flow flow flow

Figure 2.1 SIPOC.

How far out of the box did you go? Did you include only the usual s­ uspects?
Why did you choose that stakeholder? I fully realize that on the spur of
the moment your list might not be as complete as if you took more time
to c­ ontemplate your response. Considering this, let’s return to your exercise
and reconsider whom you added as suppliers in the recruitment process. Let
me see if I can guide you a little bit (Figure 2.1). A supplier should be any
person or group that provides something of value into the process. It is also
critical that you remember that this same process occurs both before and
after the material flow goes through your organization.

Exercise 2.2 Recruitment Process Sources—Inputs

Every stakeholder brings something to the table. Using your list
or ours above, identify what each contributes to the recruitment
process.

Each supplier provides something to the recruitment process. These inputs

establish the remainder of the process steps. Take a look at your r­ecruitment
process and see how these inputs fit into the bigger picture. Below is a
­further discussion of the way the process unfolds in your organization.

STEP 1: CREATION OF THE JOB REQUISITION

Where did you begin the process? It should have begun with the c­ reation
of a job requisition. In conjunction with the hiring manager, the HR
­department constructs a job requisition that details the key performance
indicators (KPIs) for the position. These KPIs are the skills that both your
organization and its customers have suggested are needed by someone
 Preboarding: Seeing the Problem ◾ 15

f­ulfilling these duties and responsibilities. It is from the job requisition that
the job notice is created and then dispersed out into the marketplace.
Let me present my list of responses to Exercise 2.1. How many of them
matched your list? Did you have an identical list of players? If your list was
different, why did you differ on the list?

Stakeholders of the Recruitment Process

◾◾ Hiring Manager
◾◾ Upper Management
◾◾ Chief Financial Officer
◾◾ Recruiter
◾◾ Candidate
◾◾ Current Employees
◾◾ Alumni Employees
◾◾ Reputation
◾◾ Vendors
◾◾ Clients
◾◾ Social Media
◾◾ Print Media
◾◾ Trade Associations
◾◾ Fellow Professionals
◾◾ Social Organizations
◾◾ Internet
◾◾ Consultants
◾◾ Chief HR Officer
◾◾ Local Colleges and Universities

STEP 2: WHAT DO THEY CONTRIBUTE TO THE PROCESS?

There is an old adage that states that every person we meet enters our
life for a reason. This same adage can be applied to the sources that enter
our recruitment process. Each and every one contribute, in some fashion,
­something to the process. The inputs tell the process where we go next.
They create the steps of the process. It is critical that we identify those
inputs, which are the critical few which lead to the success of the efforts
of the organization. Let us return to my list and look at the inputs that they
bring to the table. In the following exercise, what are the inputs brought by
your sources list or mine as shown previously.

SOURCES FOR THE RECRUITMENT PROCESS AND THEIR INPUTS

◾◾ Hiring Manager—Identification of the need for the additional human
capital assets based on workforce planning and/or work demand
within the department. Their identification process includes the KPIs
for success.
16 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

◾◾ Upper Management—Authorizes the hire in line with the strategic

initiatives of the total organization.
◾◾ Chief Financial Officer—Responsible for ensuring that the benefit
package falls within the parameters of the budgetary allotments of the
organization. Ensures that the organization can afford the new ­headcount
based on the revenues and liabilities in place at the time of hire.
◾◾ Recruiter—Through their activities they source, identify, and recruit
the prospective new employees for consideration by the hiring
­manager and the HR department to fulfill the job requirements.
◾◾ Candidates—While they, as Allan Cox stated in his book Confessions
of a Corporate Headhunter,* are looking for the fast buck, they still
bring the required skills and workplace behaviors to the organization.
◾◾ Current Employees—If we have engaged human capital assets, they
are the first line of sources for prospective candidates from among
their friends and peers.
◾◾ Alumni Employees—Just because an individual left your ­organization,
does not mean that they will only tear the organization down. Look at
LinkedIn and their list of groups. Almost every major organization has an
alumni group. These individuals, like the current human capital assets,
can be a great source for candidates for available openings.
◾◾ Reputation—Ever see the annual list of the best places to work
for your location or nationally? These lists assist in establishing the
employer of choice environment. The fact is that your organization on
this list will bring candidates to your door based on their interest in
working for an organization that reportedly cares about their human
capital assets.
◾◾ Vendors—Assuming that your vendors are serving more than just your
organization, they may know of potential candidates who might fill a
position that you have open. They will come across other ­professionals
in the same industry or similar industries in their travels.
◾◾ Clients—In the last book on which this guide is based, we ­advocated
that the HR manager or director go out in the field with the top
­business development person at least once a quarter to visit the
­organization’s clients. The purpose of the visit is to ask the client what
attributes they expect from the human capital assets they deal with
inside your organization. Their responses assist you in writing the job
requisition because their wishes are the KPIs.
◾◾ Social Media—The involvement your organization has in the social
media space will assist you in finding candidates. Using the discussion
groups on LinkedIn, for example, will provide the vehicle for you to

* Alan Cox in his book written back in 1972 stated that a corporate headhunter is a mediator
between executives who don’t understand their problems and job candidates who don’t care what
the job is so long as there is a quick buck to be made.
 Preboarding: Seeing the Problem ◾ 17

discuss the attributes of your current human capital assets, which may
be of interest to others.
◾◾ Print Media—Has a story appeared in your local newspaper about
an expansion? Has a leading magazine written an article about your
­organization? Each of these is a source for the recruitment process.
◾◾ Trade Associations—Many trade associations maintain a job board
on their website. The benefit of these candidates is that they are
already within your industry and reportedly have the required skills
you are seeking.
◾◾ Fellow Professionals—We are social animals. That means we like
to talk with our peers in our chosen professionals. One of the areas
that frequently comes into the discussion are the opportunities we
may be aware of. If we have a strong presence in the workplace, these
­discussions could lead to the identification of the names of individuals
who could fulfill our job openings.
◾◾ Social Organizations—Are you a member of the local country club?
Are you a member of one of the local service organizations? Each
­provides you the opportunity to drop the idea that you are hiring for
­certain positions. There is a belief that many a business deal is completed
on the golf course. This applies equally to the search for candidates.
◾◾ Internet—The Internet can bring you sources of candidates by the
use of search engines for questions relating to what your ­organization
does. If your organization is properly utilizing the search engine
­optimization (SEO) tools, your organization will come up higher on the
search results, potentially leading to more people seeing what you do.
◾◾ Consultants—As a consultant, we are working with a number of
organizations in a wide breadth of industries. It is through these
activities that we may very well come across the individual who is the
perfect match for your open requisition.
◾◾ Chief HR Officer—The Chief HR Officer has the obligation to the
organization to ensure that each and every new hire, promotion or
change within the organization is done with two directions in mind.
The first is whether the HR action meets the budgetary constraints
placed on the organization and second that we put the right person in
the right job in the right place at the right time.
◾◾ Local Colleges and Universities—The business schools and the
career services departments at many universities are a good source
for interns, fresh graduates, and human capital assets working toward
advanced degrees who could have an interest in your organization.

HOW DO WE GET THERE?—PROCESS MAP

To this point, we have looked at the sources that are responsible for
the basics of our recruitment process. Each of these sources contributes
­something to the overall organizational structure. It is equally critical that
18 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

you understand that inputs do not survive in a vacuum. They have to have
some function. The inputs, therefore, become the basis for the process to
which they are a part of.
Based on this premise, our next step is to get a picture of the overall
­process. This is typically done through the use of a process map. Using
simple text boxes and arrows as connectors, the process map provides a
35,000-ft. level preview of the overall process. Each text box represents a
step in the total process. I need to state at this point that no two ­recruitment
process steps are going to be the same, so the steps I discuss here are
generic in practice.

Exercise 2.3 Recruitment Processes

To this point you have reviewed your recruitment process and
­identified the entities that contribute the beginning of the ­supply
chain, and we have looked at the contributions they have made
in the form of inputs, which lead to processes. Considering your
­organization and reviewing the SIPOC, what processes are created?

How many steps did you identify? If you went back and redid the process map
would you add or delete any steps? Remember this is a high-level view of the
process. Below is a discussion of the typical steps in a recruitment process.

BLOCK 1: POSITION OPENS UP

The process always begins with the evaluation of current human capital;
management needs to determine where the organization may be falling
short. The position typically opens due to a promotion, a retirement, an
increased need for additional human capital assets, or a termination.

BLOCK 2: JOB DESCRIPTION REVIEW

The current job description is reviewed to determine whether it is a true
picture of the current KPIs required to perform the duties of the position. It
is also critical that the compensation package be reviewed to ensure that it
is up to date and current with the organization benefits packages. The job
description should be sent to the financial people to make sure it is within
the current budget constraints.
 Preboarding: Seeing the Problem ◾ 19

BLOCK 3: HIRING MANAGER PREPARES JOB REQUISITION

Once the previous two steps are complete, the hiring manager sends the
job requisition to the HR department to commence the search for the new
talent. From the job description, the HR department transforms it into the
format for distribution to the sources assisting with the search.

BLOCK 4: IDENTIFICATION OF INTERNAL

PERSON RESPONSIBLE FOR THE SEARCH
The Chief HR Officer designates the internal staff recruiter who will be
coordinating the search. They will be responsible for the sourcing, the
­identification and recruitment of candidates.

BLOCK 5: SOURCING FOR CANDIDATES COMMENCES

The assigned internal HR staff member begins the process of reaching out
to the marketplace in search of prospective candidates. This would include
the print media, social media, trade associations, external recruiters, area
colleges, and local job services.

BLOCK 6: SELECTION OF CANDIDATES

As the candidate credentials are submitted, the internal HR department
begins the process of screening the applications for comparison to the job
requisition and job descriptions in order to identify those able to perform
the bare essentials of the position’s responsibilities.

BLOCK 7: SCHEDULING OF FIRST INTERVIEWS

From the selected candidates, the internal HR staff member begins to
­schedule interviews with an HR staff member to determine whether there is
any further data point, which may further qualify them or disqualify them
for the position.

BLOCK 8: FURTHER SCREENING

The selected HR staff member reviews the results of the first interviews to
determine who the best candidates are to pass on to the next level of the
process.

BLOCK 9: MANAGER INTERVIEWS

In conjunction with the hiring manager and the internal HR staff, the hiring
manager schedules time to be set aside for the interview of the potential
candidates for the position.
20 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

BLOCK 10: MANAGER SCREENINGS

Following the managerial interviews, the HR staff and hiring manager
review the results of the interview process and determine who the best-fit
candidates are and request that they return for the third interview. These
interviews typically go more in-depth to their background and cultural fit
to the organization. It may also involve behavioral interview panels and
­meetings with possible fellow workers.

BLOCK 11: THIRD INTERVIEW SCHEDULES

The third interviews are scheduled with the candidates and the
organization.

BLOCK 12: FINAL SCREENINGS

The hiring manager collects all the results from the interviews and
­determines who best meets the requirements of the open requisition.

BLOCK 13: OFFER EXTENSION

The hiring manager sends to HR the name of the candidate who best meets
the requirement. HR in turn extends to the candidate the offer based on the
desires of the hiring manager.

BLOCK 14: OFFER ACCEPTANCE

The candidate accepts the offer or a feedback loop runs back to the
­beginning of the process if the candidate rejects the offer for any reason.

BLOCK 15: PREEMPLOYMENT SCREENING

Following the acceptance of the offer, the organization begins the process
of completing the screening of the potential employee. This includes the
background checks, I-9 verification, and checking references. This may be
done by an outside vendor who specializes in doing background checks as
part of their services.

BLOCK 16: NEW EMPLOYEE REPORTS FOR WORK

Following a successful screening, the new employee sets a start date and
handles the paperwork required for them to be up and running in your
organization.

BLOCK 17: FIRST DAY OF WORK

Employee enters the on-boarding process and meets with the hiring
­manager to establish organizational policies and procedures.
 Preboarding: Seeing the Problem ◾ 21

The next step in the SIPOC is a review of what the process creates. Every
process has as an end product the creation of something. If the suppliers
have contributed inputs to the organization, which have created processes,
what do those processes supply to the organization?

Exercise 2.4 Recruitment Process Outputs

To this point you have reviewed your recruitment process and
identified the entities that contribute to the beginning of the supply
chain, and we have looked at the contributions they have made
in the form of inputs, which lead to processes. Considering your
­organization and reviewing the SIPOC, what outputs are created?

Consider this equation. With every contribution that a supplier makes to the
organization, there is something imputed to the process. From the process,
the results of the process create an action or output that comes out the other
side of the process. This output is usually in the form of some product or
service we deliver to the ultimate end user.

What Do They Want—Voice of the Customer

Exercise 2.5 Recruitment Process Customers
To this point you have reviewed your recruitment process and
identified the entities that contribute the beginning of the supply
chain, and we have looked at the contributions they have made
in the form of inputs, which lead to processes. Considering your
­organization and reviewing the customers, what are they telling
you they need to satisfy their demands?


22 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Do you really know what your customers want? The purpose of this chapter
has been to see the problem facing your organization. We think we have a
problem but it is not crystal clear at this point exactly what that problem is.
If you have a problem, the customer is the primary source of the root cause
of the problem (Figure 2.2).
Allow me to simplify it for you. The problem is a representation of the
gap between what you are currently doing and what the customer is willing
to pay for. Nothing more. Nothing less. The customer tells us their demands
via the voice of the customer. If we are meeting those demands, the
­organization is running well. If they are not, and most are not, then there is
a problem that needs to be resolved. The ultimate method for judging the
voice of the customer is through the use of the voice of the customer matrix
as shown previously.
In any given organization, the goal is to deliver the product or service
faster, better, and cheaper than our competition.
When we refer to better, we are meaning that the process step is
­completed with as few errors in the process as possible. Rework is
waste. Rework means that we are not meeting the needs of the customer.
Especially in the HR function, rework can be detrimental financially when
we recruit the wrong individual for that open position. It is the basic metric
that if we incorrectly hire an individual for a position it will take us 175% of
the failed hire’s salary to replace them.

Voice of the Customer

Plan Develop Market Deliver Support
Internal consultant

Employment offers
Dept. partnerships

Preinterview steps
X functional team
Customer surveys
Importance (1–5)

Sourcing vehicles
Internal controls

Talent screening

4 Strong
functions
Business

2 Medium
Talent search

Prehire steps
Onboarding
Procedures

1 Weak
Policies

Process

Customer requirements
Treat me like you want my business 5 1 2 2 4 2 4 4 2 2 2 2 2 1 1 2
Deliver services that meet my needs 5 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Better

Services that work right 3 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2

Be accurate, right the first time 4 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2
Source us the right candidate 5 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2

I want it when I want it 3 2 2 2 1 2 2 2 2 2 1 2 2 4 2 2

Make commitments that meet my needs 4 2 2 2 1 2 2 2 2 2 2 2 2 4 2 2
Meet your commitments 4 2 2 2 1 2 2 2 2 2 2 2 2 4 2 2
Faster

I want fast, easy access to help 4 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2

Do not waste my time 5 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2

If it breaks, fix it fast 4 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2

Deliver irresistable value 4 2 2 2 1 4 2 2 2 2 2 2 1 2 2 2

Help me save money 5 4 2 2 1 4 2 2 2 2 2 2 1 2 2 2
Cheaper

Help me save time 5 4 2 2 1 4 2 2 2 2 2 2 1 2 2 1

Total Weight 135 120 120 80 148 130 130 120 120 117 120 106 137 115 115

Figure 2.2 Voice of the customer matrix.

 Preboarding: Seeing the Problem ◾ 23

When we refer to faster, we mean can we meet the needs or demands

of the client before they need it and done correctly based on their
­specifications. Finally, if we can do it with less rework and faster, can we
also deliver it at a lower overall cost than the client was expecting?
Let me walk you through the operation of the matrix. The matrix is
divided into both horizontal and vertical columns. To begin the process
of completing the matrix, we begin with the vertical column. The vertical
column is divided into better, faster, and cheaper. In each segment, we want
to record what your customer tells you are their requirements to meet the
three goals. Each segment provides you room to record the customer’s most
critical needs. For example, in the better category notice the vertical column
refers to treat me like you want my business, delivering services that meet
my needs, services that work right the first time, delivery is on time, and we
found them the right candidate in a search.
Turn to the horizontal section of the matrix. It consists of a number of
columns, each serving a specific purpose. The first column provides a space
to record the importance of the customer requirements. This is done on
a numerical score of 1–5 with 5 being of the most important. The second
­column represents the presence of the internal consultant. The rest of the
­horizontal columns represent the various stages of the project life cycle. We
begin with the planning stage in which we first plan out the project ­followed
by the development of the process steps. These two lead to how we market
the service, deliver it, and what support we are going to provide after the
delivery.
The next step is the critical part of the matrix. You need to first rate the
requirements as previously stated on a scale of 1–5 as to their importance
to the overall success of the client requirements. The rest of the columns
relate to the various stages and these are developed based on the block
in the upper left-hand corner of the matrix. The box asks the individual
or i­ndividuals to determine whether the needs are of a strong nature, a
medium nature, or a weak nature. These are represented by the numerals 4,
2, 1. The appropriate numeral is placed in each box.
The key to the usage of the matrix is the formulation of the weighted
averages. They are calculated by multiplying the importance level by the
business importance. When you add up the columns at the bottom, it
enables you to identify the critical few actions that your organization needs
to work on. We do this by choosing the 3–5 highest weighted averages.

What Is Missing?
I began this chapter indicating our preplanning was all about seeing the
problem. At this point, we have partially reached that goal. We began by
identifying the stakeholders of our process and what they contribute to our
24 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

organization. Following the identification process, we turned to taking a high-

level view of the organization through our creation of the process map of the
recruitment process. Finally, we completed the “voice of the customer” matrix.
If we go back and look at the process map of the current recruitment
process and compare it to the requirements that the client has set down,
there will appear some very definitive differences.
These definitive differences represent the first part of the TLS Continuum.
It is with the assistance of the tools from the theory of constraints that we
are able to get a handle on what obstacles are in the current process state,
which is holding up the ability of your organization to meet the demands of
the customer without the presence of nonvalued activities.
The theory of constraints offers us an additional tool to assist us in
­critically thinking about the problems facing our processes. Dr. Eliyahu
Goldratt called it an evaporating cloud. Its sole purpose is to relieve
­conflict from the system.
The evaporating cloud begins with the problem at hand. From there
it looks at the reasons why the organization can’t resolve the issue. The
­evaporating cloud diagram contains two tracts. The upper tract gives the
reasons why we need to take certain actions to improve the problem while
the lower track presents the reasons why the organization can’t achieve the
resolution to the problem.
Reading from left to right we begin with the objective (o), which is the
solution the team has determined will most likely resolve the obstacle we
discovered in the fishbone. The remainder of the evaporating cloud looks at
both the perquisites and the requirements to meet the goal.
The evaporating cloud diagram is read in the following manner. Our goal
(reducing excessive hire time) is referred to as “A” or the goal. In order to
have the goal, we need to have requirement 1. In order to have requirement
1, we need to have prerequisite 1.
The lower track is read the same way (Figure 2.3).
The theory of constraints process provides us direction as to what to
change, what to change it to, and how to make the change happen. To
­better understand the process, consider the evaporating cloud example
shown earlier.*
Let me walk you through the cloud. The head of the cloud is the goal
(A). In this case that goal is to locate the talent we want to fill critical HR
* Taken from an article written for Mobility magazine in 2001: http://dbaiconsulting.com/Articles
/Articale9.pdf
 Preboarding: Seeing the Problem ◾ 25

Recruit or
Increase the
promote
amount of
employees to fill
relocation benefits
open positions
we provide to
employees
Locate the
talent we
want to fill
critical HR
needs

Exercise fiscal Reduce the

amount of
responsibility
relocation
in hiring practices
benefits we
provide

Figure 2.3 Evaporating cloud.

needs. The organization feels that there is sufficient justification to add

­headcount to the organization in order to fulfill the need for human capital
assets in key areas within the organization.
So, the follow-up question is, what do we need to have in place in
order to meet that goal? This becomes the requirement for the cloud. In
our previous example, we are confronted with two different reactions to
the problem or the goal. The first requirement is stated that in order to
locate the talent needed to fill the critical HR needs of the organization
we must either promote from within or go outside the organization to
find the individuals. At the same time, the financial people are stating that
this is fine but we must remain fiscally in line with the organization and
not exceed the budgeted amounts for recruitment. Do you begin to see
the conflict forming? These two tracks represent P1 and P2 in the cloud
interpretation.
In order to meet the requirements of the goal, we need to have in place
certain conditions. These conditions play the role of the prerequisites and
are required to be in place prior to achieving our goal. Once again the two
tracks fail to meet in the middle. One response as to the prerequisites states
that in order to recruit or promote new talent within the organization, we
must increase the benefits offered. The other side says we must reduce the
benefit levels to recruit the required new talent.
The two prerequisite boxes are joined by a jagged line, which
­represents the organizational conflict. It asks the organization to make the
26 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

determination, which is more important in the long run: Not taking risks
and remaining penny-wise, or do we do what is needed to get the talent
we need?

Exercise 2.6 Recruitment Process—Evaporating Cloud

Think of your own organization. Are there any problems that
you are experiencing that you can plainly delineate the two
­conflicting paths as described in the preceeding example? Explain
the two paths.

YOUR TICKET TO RIDE—THE PROJECT CHARTER*

To summarize what I have presented in this preplanning stage, we have
arrived at the “airport” determined to begin this unique journey even
though we have no idea of where we are going.
As in any journey we have established who is going (the stakeholders).
I looked at the role these stakeholders play in the issue confronting your
organization. They are stakeholders because they contribute something
to the overall recruiting process. This contribution may be in the form of
knowledge or a physical contribution. We have looked at what the customer
is telling the organization as to what they expect from us. We have looked
at how the process works on a daily basis. The difference between the
­current state of the process and the demands (requirements) of the customer
create our problem. It creates the area where you must concentrate your
efforts on in process improvement.
With the obstacles identified I moved to the goal tree. It tells us if we
identify the problem (goal) then there are certain operational factors that
must be in place to get us to the solution. The most efficient way to track
these efforts is through the use of a Six Sigma methodology tool we call a
project charter.
In Achieving HR Excellence through Six Sigma, we went through a t­ypical
charter statement in simple terms. Look at the following form and I will
cover it in more detail.

* The Project Charter Form is the one utilized by the St. Petersburg College Six Sigma training
program.
 Preboarding: Seeing the Problem ◾ 27

Project Name/Title:

Sponsoring Organization:

Project Sponsor:

Team Members (Name)      Role

Principal Stakeholder Proposed Benefit

Sponsor Approval Signature / Date:

Preliminary Plan (Milestones) Target Actual Approvals

Date Date
28 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Project Name/Title:

Problem / Opportunity Statement

Project Goal: Solution/Recommendation

Resources Requested (What you need, $, personnel, time, etc.)

Project Impact Statement

SECTION 1: THE PROJECT NAME/TITLE

This is the departure point of our journey. It requires a definitive statement
as to what the problem is. It should be a complete sentence and provide the
organization with some indication of where you are headed.

SECTION 2: SPONSORING ORGANIZATION

Self-explanatory—this should be the name of your organization or
­department in which the problem has been uncovered.

SECTION 3: PROJECT SPONSOR

The process improvement efforts do not exist in a vacuum. There must
be someone within the organization who most benefits from the solution
to the problem. This individual must be willing to be the gatekeeper for
the project effort and to run interference with those who might want to
 Preboarding: Seeing the Problem ◾ 29

derail the effort. They are the ones who must go to upper management and
insist that the success of the organization is dependent on this project being
successful.

SECTION 4: TEAM MEMBERS

I have talked earlier about these projects being cross-functional in nature.
Therefore, the very important first step is to look at your organization. If
your problem, as I have suggested, is recruiting-related what departments
are affected by your project?

Exercise 2.7 Project Team

You have determined that there are some problems in the way
the organization recruits new talent that results in longer than
normal time to fill. Which departments might be affected? Who
would you place on the project team?

If your project team is constructed properly, there should be a representative

of each of the departments mentioned in Exercise 2.7 as part of the team.
The members need to be representative of the affected areas with freedom
to contribute to discussion in a meaningful way.

SECTION 5: PRINCIPAL STAKEHOLDER

In the beginning of this chapter, I spent some time talking about who the
stakeholders represent. Normally, there is one stakeholder who stands above
the rest as to the benefits of the outcomes. It is critical that you identify
these parties.
Once you have identified the primary stakeholder, the next step is to
­identify the benefit the stakeholder has in the completion of your project.
How is your organization going to be different following the completion of
the project?

SECTION 6: SPONSOR APPROVAL

I mentioned earlier the role of the sponsor and while it is a vital one
they have one other task as part of this effort. They in essence have to
30 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

put their mouth where they say it is by signing off on the project, giving
­organizational approval to move forward.

SECTION 7: PRELIMINARY MILESTONES

I began this book with the concept that we were on a unique journey, one
with a beginning but no end. That does not mean that the journey can go
on forever without some time restraints. We begin the project and along the
way we reach a point where it makes sense to distribute information about
our progress. These points become milestones in the project. In my black
belt project for instance, the milestones consisted of the following:

◾◾ Determining the scope of the project

◾◾ Preparing and submitting the project charter
◾◾ Determining the evaluation methods
◾◾ Analyze the training data
◾◾ Construct the dashboards
◾◾ Construct the balance scorecard
◾◾ Deliver the final product to the stakeholders

In each case, the milestone must determine a target date for the delivery
of each milestone. The project charter also provides a space for showing
the actual date the milestone was delivered. It is also a necessity that each
­milestone is signed off from the rest of the project by someone eligible to
do so.

SECTION 8: PROJECT TITLE

It is simply a repeat of the information in Step 1 as this is the beginning of
page 2 of the charter.

SECTION 9: PROBLEM/OPPORTUNITY STATEMENT

The problem/opportunity statement section allows us space to further
explain what the problem is and the benefits of resolving the issues. It
­represents a full paragraph description of the issue and the background
information surrounding the problem. It is designed to further explain what
we expect to achieve in the process.

SECTION 10: PROJECT GOAL

In the first book, we discussed the fact that the Six Sigma methodology is an
adult version of the scientific method you discussed in high-school science
classes. This section represents the hypothesis part of the experiment. It is
in this section that we begin to explain what we think will come out from
the issue exploration we are about to begin.
 Preboarding: Seeing the Problem ◾ 31

SECTION 11: RESOURCES REQUESTED

Every process project will require certain things to succeed. It will need
personnel to form the cross-functional teams; it will need funds to conduct
the experiments; it will require time from the regular day-to-day operations
away from their home responsibilities.
Each resource needs to be detailed with the particulars surround it. If you
are including human capital assets, then you need to include what hours
and pay will be involved.

SECTION 12: PROJECT IMPACT STATEMENT

This final and probably the most important section of the project charter
is the space for you to explain what outcome you expect. It should include
specific metrics if they are available or expected.
For instance, using our recruitment process, I could word a project impact
statement as “It is our expectation that through the implementation of (name
of the solution) we can expect that the time to hire will be reduced by 60
percent to 45 days from 75 days.” Take note that we were very s­ pecific in
the anticipated outcomes.
In the next chapter, we will begin the next phase of the journey. We will
have departed and begun the final four steps of DMAIC (define, measure,
analyze, improve, and control) process.
Chapter 3

Flight to Excellence

Good morning ladies and gentlemen, this is your captain speaking.

I want to welcome you aboard TLS Continuum Flight 2014 ­service
from your current location to an unknown destination. Once
we get airborne today, our flight time will be 14 hours; we are
­expecting some turbulence on the way so we will leave the seat
belt lights on for the duration of the trip.*

In the previous chapter, I presented the same process steps, as we

would undertake in planning a family vacation. We established who
was going on the trip (SIPOC) and we established the family wishes
(Voice of the Customer Matrix) and we laid out our trip agenda (the
process map).
The next stage is the actual trip. It is our road to human resource (HR)
excellence. By ­comparing the three elements mentioned earlier, I have
­provided the clues in order for you to see the problem. However, there is
one more element we need to consider. The difference between what the
Voice of Customer Matrix tells us our customers are ­willing to pay for and
the process map, which tells us the current state of how we do things within
the o
­ rganization; we can identify the process obstacles.

* The dialogue is taken from a sample captain’s speech found on the website http://airodyssey.net
/reference/inflight/

33
34 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Ishikawa Fishbone—Why We Do Things*

Dr. Kaoru Ishikawa of the University of Tokyo created
the fishbone tool in 1943. The purpose of the tool is
to look at the root causes within our operations that
create nonvalue added activities.

Exercise 3.1 Ishikawa Fishbone

You have determined that there are some
problems in the way the organization recruits
new talent that results in longer than normal
Dr. Kaoru Ishikawa time to fill an open position. Why is the extended
hire time a problem for the organization?

The Ishikawa diagram begins with the head or the process effect. The fish
head defines the problem. Consider the example in Exercise 3.1, where you
have been tasked to explain why the organization is experiencing longer
than normal time to fill an open position. The head (effect) of the fishbone
diagram would indicate that the effect on the organization would be the
longer than normal hire time. Your next task is to identify both the primary
and secondary causes of the problem.
Primary causes are comprised of those causes that have a direct bearing
on the cause categories. They are usually supplemented with an additional
cause that contributes to our primary causes. For example, if we have a
longer than normal time to hire, the primary cause might be that our job
criteria are too restrictive. The secondary cause might be that we have too
restrictive job criteria because we have not identified the key performance
indicators of the position correctly.
Returning to our fishbone diagram, following the identification of the
­obstacle or the effect of the process, we find that the remainder of the

* https://www.moresteam.com/toolbox/fishbone-diagram.cfm
 Flight to Excellence ◾ 35

­ shbone diagram represents the causes of the problem. It is the purpose of

fi
the fishbone diagram for us to identify the causes of the obstacle from an
eagle’s view. Each of these causes is represented by an arm or bone of the
diagram. Typically the arms are represented by a standard nomenclature of
the ­causality. Typically the Ishikawa fishbone is comprised of the following
high-level causes:

Cause 1: Management
Exercise 3.2 Ishikawa Fishbone
Considering that you have determined that the obstacle you
discovered was an extended hiring time, how has management
contributed to the obstacle?

Management has a rough road to travel. They need to think about the
human capital assets of the organization as well as the demands of the
stakeholders as we saw earlier in our discussion regarding the SIPOC tool.
Taking all this into consideration, management can either be your friend or
your worst nightmare. Before we continue our explanation of the Ishikawa
diagram, we need to consider this dilemma more in depth.
The website Dictionary.com defines an enemy as “a person who feels
hatred for, fosters harmful designs against, or engages in antagonistic
­activities against another, an adversary or opponent.”* Many managers
have been brought up through the ranks of the organization ingrained
with the focus that their job is to tell the organization when something
needs to be done and how to do it. There is no room for alternative
solutions.
If your management is so ingrained in this belief and the e­ xpectation
that they will follow like sheep, then the system falls apart. When this

* http://dictionary.reference.com/browse/enemy?s=t
36 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

­ anagement philosophy is the guiding principle of the organization,

m
­management tends to be stuck in this rut; the tendency is to throw up
­additional obstacles to the process. It also means that the effort to remove
the process obstacles is doomed to fail.
Look at these scenarios to illustrate my point:
Scenario #1: The hiring manager calls your office and tells you that
he/she needs a particular position filled in 3 days. You go out and source
the candidates, screen them and present them to the manager and he
sits on them for a week. What happened to the 3-day window?
Scenario #2: The hiring manager calls your office and tells you that
he/she needs a particular position filled in 3 days. You go out and source
the candidates, screen them, and present them to the manager and he/
she asks to see all the resumes plus he wants to do his/her own search
for the right talent to fill the position. What happened to the 3-day
window?
Consider the reverse of the preceding work environment. In this alterna-
tive work environment, your management is able to see the problem and
feel its direct impact on the organization. Management understands that
­sustainability and innovation of the organization are at risk because there
are process steps within your organization that are halting progress. The
problem here is that even though they understand the problem, in many
cases they may not ­recognize the event that is part of the problem. Consider
this scenario:*

An organization discovered that in the process of hiring a ­middle

management executive the job requisition is reviewed and
approved three times. As a former executive recruiter that is not
necessarily a problem. However, as the late Paul Harvey used
say—the rest of the story is that in the process of hiring that
middle management executive, the job requisition is reviewed
and approved by the same person.

If that executive has other items on his desk, that requisition approval
may take longer than it should, resulting in a longer time to hire.
In many cases, the organization operates from a top-down ­perspective,
so if your managers are not totally bought into the concept of process
improvement, this can create a major obstacle to reaching the goal stated in
our fish head.

* In the course of a 2-day seminar we facilitate based on the book Achieving HR Excellence, the
scenario became apparent in the course of completing a Value Stream Map.
 Flight to Excellence ◾ 37

Cause 2: People
Exercise 3.3 Ishikawa Fishbone
Considering that you have determined that the obstacle you
­discovered was an extended hiring time, how have people
­contributed to the obstacle?

We are all subject to human nature. The fishbone diagram head says that
we have an excessive time to hire. Our response is based in human nature.
The people part of the equation will base their response to the excessive
time to hire in terms of WIIFM or “What’s in it for me.” Their decisions on
the ­obstacle will be centered on what effect the cure of the obstacle would
have on them not only in the future but also in the present. Consider this
scenario:

The preceding steps have determined that the time to hire is

excessive for the organization to function at a successful level.
Some of your human capital assets will look at this scenario
and conclude that the reduction in time to hire will benefit
them due to the increased manpower available to handle
process steps. If there are more hands on deck then the con-
clusion can be made that they will not have to work as many
long hours. Look at the other side of the coin. Some human
capital assets on the other hand will consider the excessive
time to hire as a boon to them because if it takes longer to hire
new talent, then that opens the opportunity for some overtime
work. This overtime will lead to more dollars in their pockets,
which means their families benefit from the extra discretionary
income.
38 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Cause 3: Method
Exercise 3.4 Ishikawa Fishbone
Considering that you have determined that the obstacle you
discovered was an extended hiring time, how has the process
contributed to the obstacle?

Lynne Hambleton in her book Treasure Chest of Six Sigma Growth

Methods, Tools, and Best Practices describes method as the way we do
things, which could be misunderstood or incomplete.* If the process of
­h iring a new human capital asset is not straightforward, there is a poten-
tial for our head of the fishbone diagram to be a problem. Consider
­something as simple as the job requisition stating that the hire must
take place within 3 days. Is that 3 calendar days or 3 business days? In
most cases, it will not be as simplistic as the example in the previous
sentence.
The method maybe unclear on intent or it maybe unclear because
the parties involved have not received the proper guidance on how the
­process is supposed to work. Our intent with all processes is that they
must be designed in such a way as to show a direct correlation between
the process step and the removal of the obstacle. These steps must reflect
our intent to meet the total voice of the customer with little or no defects
along the way. Many organizations today still require a hard copy of the
application even though the same information is stored in the applicant
tracking system.

* Hambleton, Lynne. Treasure Chest of Six Sigma Growth Methods, Tools, and Best Practices. New
York, NY: Prentice Hall, 2008, p. 175.
 Flight to Excellence ◾ 39

Cause 4: Measurement
Exercise 3.5 Ishikawa Fishbone
Considering that you have determined that the obstacle you
discovered was an extended hiring time, how has measurement
contributed to the obstacle?

We understand, as stated in Achieving HR Excellence through Six Sigma,

that we can’t question what we don’t measure. But there are times when
the way we measure or how we measure things can be a detriment to
the process. Returning to our obstacle of excessive hire time, if we take
too long to conduct the measurement we risk the possibility of losing our
key talent prospects. If our key performance indicators are too restric-
tive, the ­measurement may eliminate key candidates. It becomes critical
that we ensure that we are using the right measurement tools for the right
situation.
McCarty, Daniels, Bremer, and Gupta in their Six Sigma Black Belt
Handbook * state that the project team needs to verify the measure-
ment s­ ystem they are using before collecting data; the measure-
ment o ­ bstacle should be addressed initially before tackling other
root causes.

* McCarty, Tom et al. The Six Sigma Black Belt Handbook. New York, NY: McGraw Hill, 2005.
p. 366.
40 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Cause 5: Machine
Exercise 3.6 Ishikawa Fishbone
Considering that you have determined that the obstacle you
­discovered is an extended hiring time, how has technology
­contributed to the root cause?

There is a big push in the corporate world to automate everything. But

these efforts are routed in some kind of machine and they tend to do
some strange things at times. It is critical that we understand the role that
­technology plays in our organization along with the really viable fallacies in
its use.
There is a considerable debate going currently regarding the move toward
“big data” within the HR function. Big data is focused on the manipulation
of large amounts of measurements, which are centered in the technology
used by the organization. While the Ishikawa diagram asks us to look at
the causes of the obstacles, big data is more interested in the correlation of
events.
Consider the following example:

The organization is in a hiring mode. The problem they see is not

one of excessive hiring time but rather one in which a particular
manager seems to be continually hiring the wrong human capital
asset. The difference in the two approaches can clearly be found
in an analysis of the scenario.

First, from a big data perspective, there is a tool called predicative

­analysis. Predictive Analysis World defines predictive analysis as “a ­business
intelligence technology that produces a predictive score for each ­customer
or other organizational element. Assigning these predictive scores is the
job of a predictive model, which has, in turn been trained over your data,
­learning from the experience of your organization.”* In simpler terms,

* http://www.predictiveanalyticsworld.com/predictive_analytics.php
 Flight to Excellence ◾ 41

t­echnology has been asked to review your data to identify those events from
a historical basis which states that if manager A is the one that is ­conducting
the interview, there is a good chance that he/she will continue to produce
a bad hire because of the record of past hires. The primary focus is the
­correlation with events as an indicator of the obstacle (e.g., excessive hire
time) occurring.
Second, we use the same scenario, but we are now concerned with
whether or not there are some underlying cause that is the reason why
this manager has problems in hiring the right human capital asset. Is
the ­candidate profile flawed? Is the candidate telling us one thing on the
­application but telling the manager something else?
We need to be sure that our technology is measuring the right ­metrics
and in the right way to meet the needs of the HR function and the
­organization as a whole.
42 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Cause 6: Material
Exercise 3.7 Ishikawa Fishbone
Considering that you have determined that the obstacle you discovered was
an extended hiring time, how has material contributed to the obstacle?


When we refer to materials, we are talking about the various things we
expect the candidates and managers to input into the system. This could
be the application or it could be the interview rating form. These may be
embedded in your applicant tracking system or it may be a hard copy,
which ends up in their employee file if hired. The excessive hiring time
could be caused by errors in any of the forms used in the process.
In a recent conversation with Steven Bonacorsi,* he stated that Kaoru
Ishikawa never liked the term “diagram,” considering it too flat in nature.
The true value of the exercise utilized by Kaoru Ishikawa is the use of the
“5 whys.” It is a series of questions preceded by the word “why.” Looking
at the drilldown to the root cause effecting the Y output of the Ishikawa
­diagram as follows (Figure 3.1):
In the preceding fishbone, we observe that the problem is extended
­hiring time. So the process works as follows:
Why Question 1: Why do we have high employee turnover? Through
some brainstorming and input from management, we find that one of the
reasons might be the location of your facility.
Why Question 2: Why is location a problem? The response to the
­question will create a secondary why question opportunity.
Why Question 3: If location is a problem, why is it a problem? In the
preceding example, the response is that location is a problem because it is
hard to drive to.
Why Question 4: Why is it hard to drive to? We have a client who
found this problem in their hiring process, where they would bring in a
candidate for an interview and schedule a return trip in almost the same
day. The plant is located 2 hours from the airport. To schedule the i­nterview

* Steven Bonacorsi is the president at the International Standard for Lean Six Sigma (ISLSS) and a
Master Six Sigma Black Belt.
 Measurement People (manpower) Process

Skills assessment Manager delaying decisions Application process

Failure to complete Physical and electronic versions Interview process

Too many applicants

Failure to demonstrate skills Not enough applicants Extended review time Too long

Incorrect skill tool Small pool of talent Too many parties involved
Workload

Interview feedback Applicant delaying Offer process Manager wants

Manager delay in responding to Did not receive the application in a timely manner Delay in getting manager approval

Manager not available for interview when Missing pieces to the application Error in offer letters

Submission of an incomplete Delay in offer acceptance

Problem statement
ABC Corporation is
experiencing an
unacceptable time
to hire metric
Training Application process Problems with HRIS System

Lack of training programs Physical vs. electronic System crashes

Lack of requisite skills outlets System does not save information E-Verify

Incorrect data input Inaccurate information

Marketplace Process glitches

Not enough candidates Delay in response

Inaccesibility of office location

Environment Materials Technology

Flight to Excellence

Figure 3.1 Ishikawa fishbone examples.

◾
43
44 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

process in 1 day was a problem. The preceding fishbone tells you that the
response is because the facility is in a small town or in a rural location.
This process can be carried out through the rest of the bones of the
diagram in much the same way. It is important to understand the tool only
works when your responses to the Why questions are not the solutions but
rather the reason why the particular element contributes to the causes and
effects of the issue at hand. In addition the major categories of the obstacle
causes are not set in stone. You may Google the term “Ishikawa fishbone”
and you will see many people include other causes such as environment to
describe the workplace.

SUPERCHARGE THE EAGLE’S VIEW

Exercise 3.8 The Value Stream Map

In Chapter 2, we asked you to block out your recruitment
­process, which we referred to as a process map. This exercise
takes the process map to the next step. Take out your ­process
map along with a fresh sheet of paper. On the new sheet
between each step of the process map, insert the time ­increments
between each stage along with every decision, document, and
­movement action that occurs. Include any additional actions,
which take place between each stage.

Before we continue a word of caution, do not begin this process unless you
are willing to devote the time to it. The process of creating a value stream
map is labor intensive and takes some use of critical thinking. By time we
are referring to at a minimum of at least an hour.
The purpose behind the process map is to give you a view of your
organizational process from an eagle’s point of view. It is looking down on
the organization and seeing an overall view of how the process works. The
purpose of the value stream map is to bring your focus down to the office
floor. Our actions do not operate in a vacuum but are i­nterdependent on the
rest of the organization. The act of creating the value stream map involves
taking our process map and expanding it. The expanded view contains
every time lapse, every document, every ­decision, and so forth.
 Flight to Excellence ◾ 45

Take the initial block we discussed in Chapter 2: we began the ­discussion

of the process map with stating that the recruitment process begins with
the opening of a job position within the organization. This is followed by a
review of the job description for the position to ensure that it is current.
To complete the value stream map, look at these first two steps. We first
determine how long we need to allocate to the review process. Is it several
hours or is it several days? Once we have determined the allotted time, we
then need to look at all the other actions required to complete the review.
This would include the writing of any documents, any phone conversations
required, any e-mails that need to be sent and responded to. The determi-
nation of the time allotment needs to incorporate all these actions.
The same procedures must be undertaken for each step of the process
map. The final product of the value stream map, while containing the same
steps as the process map, is entirely different in appearance.

HOW ARE WE GOING TO GET THERE?—THE GOAL TREE*

It is critical that we make sure we are on the same page at this juncture.
We began by looking at the SIPOC tool. It gave us the insight as to who
the stakeholders are. Remember we are interested in more than those with
a strictly financial interest in our organization. The stakeholders provided
us the data points regarding what they bring to the table in the course of
­delivering our services or products.
From the SIPOC, I asked you to develop a high-level process map of the
recruiting process within your organization. There were many potential HR
processes we could have chosen to work with; however, the recruitment is
the one with the most universal applicability. When complete, the process
map demonstrates what steps the process requires to meet the needs of the
organization.
Next, we turned to the Voice of the Customer Matrix. The voice of the
customer is the critical basis for enabling the organization to move forward.
It tells us what factors the customer needs in order to substantiate their
organizational investment in ours.
If you have put enough thought into your process maps, the difference
between your current state process and the client’s requirements creates a
clear picture of where your roadblocks or obstacles are. It is these obstacles
that characterize your problem. The next step, therefore, is to lay out the
­journey itinerary, if you will. What steps are we going to take to try and get
to that end destination, as nebulous as it is?
We can do this through the use of Dettmer’s Goal Tree.†

* The Goal Tree is a concept introduced by William Dettmer in his book Goldratt’s Theory of
Constraints published in 1997 by the American Society for Quality. The concept was further
refined in his sequel The Logical Thinking Process published in 2007.
† Dettmer, William. The Logical Thinking Process. Milwaukee, WI: ASQ Press, 2007, pp. 72–88.
46 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

The Goal Tree clearly lays out that road map. Look at Figure 3.1 as it visu-
ally presents the road map as we walk through it. The Goal Tree requires
you systematically review the problem. It begins with l­ooking at the goal or
your anticipated solutions. It not only asks you what the intended solutions
are but also it asks you to take the search a step ­further (Figure 3.2).

Exercise 3.9 Goal Tree—Goal/Objective

Remaining with your recruiting process, what is the goal or
objective of the process? Think about it carefully. Have you
­carried out your thought process to its fullest extent?

Once you have established the objective, you must then take the next step
and determine what has to be present in order for you achieve that goal.
These represent the critical success factors; without their presence you can’t
reach that goal.

Achieving HR Excellence through Six Sigma

Goal Map
Goal (In order to have...)

Critical
success
factors
(I must have)

Necessary
conditions
(In order
to have)

I must have

Figure 3.2 Goal Tree.

 Flight to Excellence ◾ 47

Exercise 3.10 Goal Tree—Critical Success Factors

Remaining with your recruiting process, having established your
goal or objective, what factors will establish whether you were
successful or not? Think about it carefully. Have you carried out
your thought process to its fullest extent?

The critical success factors section of the Goal Tree asks you to ­determine
the three factors that you have to have in place in order to determine that
you have the right solution. It poses the question that in order to reach
the solution I must have these critical success factors in place. It is abso-
lutely critical that you carry your identification of these three factors to the
widest audience possible. Like the goal statement, the first factor that may
come to mind may not be the best possible concept.
The Goal Tree then moves down the hierarchy to the next level. It is in
this factor that you ask yourself further questions regarding the process.
Follow me here a bit.
You began the completion of the Goal Tree by asking the question, what
is the solution for the problem at hand? Then your next question is what
are the critical success factors, which will indicate that we have reached that
goal? These are the factors that must be there in order for us to reach that
goal. This is not the end of the process, however.

Exercise 3.11 Goal Tree—Conditions

Remaining with your recruiting process, what are the necessary
conditions that will lead you to the critical success factors? Think
about it carefully. Have you carried out your thought process to
its fullest extent?


48 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Think of it in this fashion. In order to have (goal) I must have (critical

­success factors). In order to create the critical success factors, I must have
(necessary conditions).
If you know what the goal is and you know what critical success factors
equal success, what has to be present to reach that level? Consider once
again the recruitment process. Our goal is to provide the organization with
the human capital assets that will enhance the output of the organization
in the form of products and services. If I am correct in this goal, then what
are the necessary critical success factors? I would suggest that they are the
­location of the right person, in the right place, at the right time.
In order to achieve this state, the necessary conditions become the
establishment of a working system to source, identify, and recruit these
­critical human capital assets that are needed by the organization to sustain it
through the years to come.

Exercise 3.12 Goal Tree—Knowledge

Remaining with your recruiting process, what is the necessary
knowledge that will lead you to the necessary conditions? Think
about it carefully. Have you carried out your thought process to
its fullest extent?


In Chapter 1 during our discussion regarding the characteristics of a ­“center
of excellence,” we talked about one of the characteristics of the center
was the gaining of knowledge and resources. This process is not one that
we can conduct in a fly-by-night fashion. We need to understand why the
system requires us to do what we do. The final stage of the Goal Tree is to
determine what knowledge resources are required to form the basis for the
rest of the tree.
Chapter 4

Layover—Obstacles
to Improvement

Ladies and gentlemen, the captain has turned on the fasten seat
belt sign. We are now crossing a zone of turbulence. Please return
to your seats and place your seats in the upright position and keep
your seat belts fastened. We also ask that you secure your tray
tables. Thank you.*

Our continued journey is going to be everything but smooth sailing. In

the preceding scenario it is equivalent to the turbulence that an airplane
might encounter when it hits rough weather in the course of a flight. I am
not u ­ nmindful that some of you have read this book with great trials and
­tribulations. You have come from a world that is embedded in a tradition,
which says that is not the way we do things here. Some of you have been
confronted by o ­ rganizations very much adverse to doing things differently.
You have been the victims of command and control organizational structures
(Figure 4.1).
Know and understand it has to change. Human beings tend to resist
change. It is not that we will not change when we have to, but our first
­preference is not to have to. The way to ease this turbulence is to be able
to demonstrate first why we have to make the change, and second how is
it going to affect us. This includes both pros and cons of the anticipated
change.
* The dialogue is taken from a sample captain’s speech found on the website http://airodyssey.net
/reference/inflight/

49
50 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Figure 4.1 Bull in the china shop.

Typically this turbulence occurs in the change process under four primary
reasons or excuses, as the followings:

Excuse 1: It Is a Manufacturing Thing

I will fully agree that the continuous process improvement efforts began
on the factory floor. They were designed to remove defects from the
­manufacturing process. However, our nonmanufacturing operations within
the same organization still undergo the production of defects. Take a
moment and consider the next exercise.

Exercise 4.1 It’s a Manufacturing Thing

Six Sigma was created on the factory floor and some state that
means that it will not work in the service side of the business.
Do you agree or disagree and why?


 Layover—Obstacles to Improvement ◾ 51

Yes, it is correct that the Theory of Constraints–Lean–Six Sigma (TLS)

Continuum came out of the factory floor. However, we are not talking
about producing something per se. We are talking about a way to resolve
­organizational problems. Like the scientific method you used in high school
science, the problem solving process applies to a problem, not a product. It
is very much as applicable to the service end of the organization as it is to
the manufacturing floor.

Excuse 2: We Tried That and It Did Not Work

The literature is loaded with examples of organizations, which tried to make
a change and were unsuccessful. There is a myriad of reasons behind these
failures, which are discussed as follows:

Exercise 4.2 We Tried That

Think about your organization for a moment and consider the
last time your organization tried to make a change and it failed.
Think out of the box and write down why it failed.

There are many reasons why these change efforts fail. First, the human
capital assets were not behind the change effort. They were not shown why
the change was necessary. They were not shown the various alternative
outcomes (what will my job look like if we make the change vs. what will
my job look like if we do nothing). Second, management gave lip service
to the change effort. If upper management is not totally in favor of the
change effort they will knowingly or unknowingly set up stumbling blocks
to the process. In order for you to successfully implement the new culture,
­management must walk the walk and talk the talk. They must demonstrate
that they are all for the effort you are undertaking.
While I am talking about management involvement, there is a flip side
to this coin. This occurs when a long-time serving manager (s) makes the
52 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

conscious decision to sabotage the process of change. They might not do it

openly, but they do create obstacles to successful change. In m
­ eetings, they
very well might pretend to support the initiative, but behind the seasons
they tell anyone who will listen that they have seen these efforts tried in the
past and they never work. They tell their fellow workers that things have
worked well here for years and there is no valid reason for the change.

Excuse 3: It Is Too Complex for Most Organizations

Exercise 4.3 Too Complex
Why did you believe that the process to change the way your
organization would be too complex for the organization? What
demands does the change process put on you that is beyond your
capabilities to conduct the change efficiently?

The literature abounds with descriptions of the change process being highly
centered on high-level analytical skills and working with numbers and
statistics. It has recently come to my attention that Motorola had stopped
training Black Belts because the human capital assets came to believe that it
was too technical.
The use of the TLS Continuum in a wide variety of companies and
industries has demonstrated that it does not necessarily have to be. As I
stated in Achieving HR Excellence through Six Sigma, Jay Arthur of the firm
KnowWare International clearly states that if you get a software program*
which is properly constructed, all you have do is fill in the blanks and the
software does the calculations for you. No need to be a mathematician. No
need to understand statistics.

* There are three primary software packages on the market that will do what you need. First is QI
Macros (KnowWare International http://qimacros.com); the second is Sigma XL (Sigma XL http://
SigmaXL.com) and the third is Minitab (http://www.minitab.com/).
 Layover—Obstacles to Improvement ◾ 53

Excuse 4: That Is Just Not the Way We Do

Things Around Here
Exercise 4.4 It Is Not the Way We Do Things
Think about your organization for a moment and consider the last
time your organization tried to make a change and were told that
it was not how we do things around here. Why did they say that
you could not do it that way?

In Chapter 3, I discussed the reasoning behind the Ishikawa diagram and

as well as in that discussion and here now in this discussion the Lean tool
called “the 5 whys” comes into play. Let’s walk through the typical scenario
when you hear this excuse as to why something cannot be done.
The odds are pretty good that if you really look at the process in
­question, the history might go as follows.

Manager: We can’t do that, it is just not the way we do things here.

Employee: Why not?
Manager: Because that is the way we have always done it.
Employee: But why?
Manager: Because management tells us that is the way we have to do it.
Employee: Why?
Manager: Because John Smith introduced the process years ago.
Employee: Why?
Manager: He attended a conference and heard about this great new way of
doing things and brought it back to the company and introduced it.
Employee: Why?
Manager: I don’t know.

Many times what we do as organizations, in reality has no basis for what

might be good for the corporation in today’s climate. It finds its basis in a
member of management observing something in another organization or at
a seminar and thinking it would work well in yours. That may not be totally
54 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

correct and once it is embedded into the corporate DNA it becomes really
difficult to remove it.
Chapter 4 has been all about the problems with change. As human
beings, we tend to resist change and usually do so with the wide variety of
excuses why something won’t work. The basis for these arguments tend to
have their bases in illogical reasoning, which can be turned around with the
proper communication to all parties involved. We need to show them that
while we understand their reluctance to change what they have done for an
extended period of time, the changes we are recommending are required
for the organization to sustain itself now and into the future. At the same
time, we need to establish that if circumstances present, we may have to
change our practices down the road once again.
Chapter 5

Where Oh Where Is the

End of This Journey?

Ladies and gentlemen, as we start our descent, please make sure

your seat backs and tray tables are in their full upright position.
Make sure your seat belt is securely fastened and be sure that all
carry-on luggage is stowed underneath the seat in front of you or
in the overhead bins. Please turn off all electronic devices until we
are safely parked at the gate. Thank you.

There is a short answer to where the end of the journey is. That answer is
that the journey never ends. The larger answer requires a more in-depth
look at the remainder of the journey.
In the preface, I charged you with undertaking a unique journey.
I suggested that this journey began with a very clear departure point
centered on the problem(s) that faced the organization. While the journey
has no definable final destination, it does generate two key performance
indicators (KPIs) going forward.
The KPI is that once you begin this journey there is no going back to
the old business environment. This is due to the fact that the business
environment from which you left no longer exists. The way your
organization functions has fundamentally changed. It is no longer content
with the way we have always done things. In part, this is due to a new
vision or corporate culture that has come out of your improvement efforts.

55
56 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

The second KPI is that the journey has created a new normal for the
organization. This new normal is characterized by a renewed vision for
the future of the organization. The new normal is a layover unlike the one
discussed in Chapter 4. Unlike the earlier layover, this one is not caused by
resistance to change within the organization. This layover is due to resolving
one issue only to uncover a new problem area. The layover represents the
point in time between the two projects. The new normal represents a closed
cycle, which is continuously returning to the beginning of the process as we
complete another improvement cycle.
Chapter 5 takes us through the last two stages of the Define–Measure–
Analyze–Improve–Control (DMAIC) process. The chapters that preceded
this point covered the first three steps of the DMAIC process. We began by
identifying the parties to the processes within the workplace. These parties
are our stakeholders who directly or indirectly contribute to the beginning
of our processes. These parties became the crux of the suppliers, inputs,
process, outputs, and customers (SIPOC) form, which we completed in
Chapter 2. By identifying the components of the SIPOC and creating the
process map, we were able to establish the current state of processes within
the organization.
With the SIPOC and process maps in place we turn to the next part of
the process, which is represented by the introduction of our customers’
views of the world. The Voice of the Customer Matrix identifies for your
organization what the customer is willing to pay for in delivering our
product or service to them. From there I looked at the Ishikawa diagram
to determine what were the causes of the gaps that appeared between the
current state and what the customer demanded.
Based on the analysis of the differences between the customer demands
and the current state we were able to create a Dettmer’s Goal Tree to show
where we go next.
The remainder of this chapter is devoted on how we get through both
the improve and the control stages of the process along with how we
implement the organizational change. Keep in mind that your goal is to
create a new normal for the way the organization operates.

Basics of the New Culture

The creation of the new normal requires your organization to change its
focus. It requires that the total organization structure be centered on the
 Where Oh Where Is the End of This Journey? ◾ 57

complete integration of strategy, innovation and alignment. As I stated in

Achieving HR Excellence through Six Sigma, this innovation process is based
on three interdependent pillars—customer centric, culture specific, and
organizational alignment. The remainder of Chapter 5 will look at how to
take these three pillars and implement them into the new corporate culture
arising out of the creation of HR centers of excellence.
The creation of a seamless view of the organization is the guiding
­factor, which determines the success of the transformation process. If you
are to fully comprehend the impact of the new cultural model we must
delve deeper into the path to get there (Figure 5.1).
Dr. Tony Alessandra, in his book The Platinum Rule,* suggests that
the primary reason organizations exist is to acquire and maintain
­customers. If Tony is in fact correct, then part of the equation is the
ability to hear the message that our internal and external customers
are telling us.
On page 45, I discussed the use of the Voice of the Customer Matrix,
which visually tells us what that message is. The message further informs
the organization what the customer is willing to pay for to obtain our
­services or products.
me e
sto f th
r
cu ce o

ve

de
cti
i

wi
Vo

oa

ate
Pr

or
rp
Co

Figure 5.1 Voice of the customer element.

* OTE
58 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Tactic 1: Move to a Proactive Stance within HR

Exercise 5.1 Reactive versus Proactive
Think about your organization as well as your functional area
and determine whether you are putting out fires or performing
the actions to remove the conditions that cause the fires in the
first place.

I discussed earlier in this work and the original book that the path you
take on this journey determines how successful you will be going forward.
I suspect many of you are currently employed in a workplace which is
reactive in nature. An employee files a complaint so HR jumps on the
process to resolve the problem. A hiring manager tells you that he does not
have adequate staffing so HR jumps on the bandwagon to resolve the issue.
We continually play fireman to the corporate problems.
The new normal requires that we change that around and we need to
become proactive to these issues. We need to assess why these situations
arise and take steps to remove their occurrences ahead of the game.
The other part of the move to proactive HR is that the effort to get away
from firefighting is not unique to the HR department. As a result, this
proactive stance must be embedded across the corporate organization and
functions. From my perspective, there are three further actions that you
can undertake which will embed the changed philosophy within your
organization.

Tactic 2: Go and See

The only authentic way for you to understand what is going on in your
organization is from being in the middle of it. Taiichi Ohno, the father of
the Toyota Production System, used to tell his managers that you do not
understand what is going on in your organization from your corner office.
 Where Oh Where Is the End of This Journey? ◾ 59

He required his managers to spend time standing in a circle on the factory

floor and observing what was going on. Exercise 5.2 will enable you to
apply this concept to your own organization.

Exercise 5.2 Stand in the Circle

Think about the last time you left your office and consider what
you observed. Were there processes that were blatantly problems
or were there process steps that were just under the radar enough
to be a problem?

When you thought about your responses to Exercise 5.2, did you
­discover something you had not thought of in the past? Let me help
you get a better handle on how to view your organizational processes.
Tracy Parks, the chief executive officer (CEO) of the consulting firm
Simplicated, LLC, has developed an exercise based on Ohno’s concept
of standing in a circle to help you understand how things work in your
organization.
In Exercise 5.3 follow her time limits and complete the exercise and the
attached worksheet.

Exercise 5.3 Stand in the Circle Worksheet

Utilizing Simplicated’s Stand in a Circle worksheet, can you
­identify the real problems in your organization?


60 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Stand in a Circle Exercise*

The exercise is called “Stand in a Circle” and is said to have originated with
Taiichi Ohno, the father of the Toyota Production System (later known as
Lean Manufacturing) in an effort to help managers understand and “see”
waste.
Eighty percent of the purpose of this exercise is to build awareness and
rewire your brain to see many small problems. Twenty percent of the pro-
cess is purposed toward actual improvements. The more you are able to see
the “hard to see” waste, the more you will be able to help your clients see
the same.
Gather the following tools and read the following steps to get started:

◾◾ You will need to print a copy of the following Stand in a Circle

worksheet
◾◾ Grab a pencil or pen and locate a clipboard or firm writing surface
◾◾ Put on comfortable shoes (you will be standing for 60 minutes)
◾◾ Set aside just over an hour of time
◾◾ A camera is preferred but optional†

Steps:

1. Choose a spot in your work environment.

2. For 30 minutes, stand and observe—silently.
3. The key is to practice what the Japanese call kizuki; the ability to
notice.
4. Write down anything you notice that results in waste—energy, time, a
safety concern, and abnormalities of any kind, maybe something that
you notice you’re not doing as efficiently as you could be.
5. Your task is to find 30 things—that’s one every minute, including
­writing time!

Notes:

◾◾ Just observe and write—no need to comment or discuss with others

(other than within necessity of being polite).
◾◾ Describe what you see and why you see this results in waste.
◾◾ Stay in one area and look deeply; it’s easy to find 30 things if you
flutter around like a butterfly and point out the large obvious wastes—
instead, plant yourself like a tree and really see.

* The exercise is used with permission of Simplicated, LLC (http://www.simplicated.com).

† Alessandra, Tony, and Michael J. O’Connor. The Platinum Rule. New York, NY: Warner Books, 1996.
 Where Oh Where Is the End of This Journey? ◾ 61

◾◾ Sometimes waste can be hard to spot—if you need a place to

begin, look for issues pertaining to safety, quality, environment, or
energy losses. Do lights need to be turned off? Perhaps you need
­better ­lighting? Is there a counter, carpet, wall, file cabinet, desk area,
or storage area in need of cleaning? Any work positions with bad
­ergonomics, awkward access?

That’s half of the exercise; now take another 30 minutes to

1. Choose one of the items you noted and make some type of
improvement.
2. Create a next action for another of your notations.

Stand in a Circle Costing You

Exercise
Worksheet
Observation Waste Space Time Energy Money
Category
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

(Continued)
62 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Stand in a Circle Costing You

Exercise
Worksheet
Observation Waste Space Time Energy Money
Category
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Name: Date:

Use this list of

categories or create
your own.
1 Ergonomic issue
2 Potential safety
hazard
3 Energy
inefficiencies
4 Environmental
distraction

(Continued)
 Where Oh Where Is the End of This Journey? ◾ 63

Use this list of

categories or create
your own.
5 Cleanliness and
aesthetics issue
6 Taking too long to
find what is
needed
7 Too many steps to
get to what is
needed
8 Too hard to access
(reaching/
unloading/loading)
9 More quantity of
(X) than needed to
keep/store
10 Excess or clutter
11 Not enough space,
storage, shelving
12 Walking around
things to access
other things
13 Running out of
supplies without
warning
14 Stuff not needed in
this space
15 Obsolete items
16 Out-of-date items
17 Nonfunctioning
items
18 Broken items
(Continued)
64 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Use this list of

categories or create
your own.
19 Takes too long to
process or
complete
20 Too many steps to
finish what has to
get done
21 Overly complex
processes
22 Not getting a
process right every
time
23 Not having a clearly
defined process
for (X)
24 Backlog
25 Logjams
26 Backsliding/letting
systems
deteriorate
27 Planning issues
28 No clarity around a
progress area
29 Poor
follow-through
30 Lack of execution

The Ohno Stand in a Circle tool is primarily to be used for looking at the
demands of internal customers. However, I have already discussed that you
also have external customers. To understand this segment of your business we
need a way to apply the concept of Standing in the Circle to this other aspect
of your business. Like your internal organization, the external segment of the
supply chain may also have its obstacles to your process. This can be achieved
through a series of field visits to the customer base. Exercise 5.4 will take you
on that journey.
 Where Oh Where Is the End of This Journey? ◾ 65

Exercise 5.4 Field Visit

You are out in the field with your leading business development
person, visiting customers. What information would assist you in
meeting the voice of the customer from an HR perspective?

Earlier I asked you to lay out the steps in your hiring process in the form
of a process map. One of the first blocks more than likely was the creation
of a job requisition and or a job description. One of the easiest methods of
determining the content of either of those documents is to ask your e­ xternal
customers. If you are like a majority of human resources professionals,
I have just suggested a concept totally foreign to your business perspective.
I would suggest that you spend 1 day a month out in the field with your
best business development person. Your role in the field visits is to ask the
customer for some assistance in the form of outlining what characteristics
the customer finds beneficial to them in dealing with your organization.
Consider this scenario:

HR Representative: I greatly appreciate you giving us time to visit with

you today. If you don’t mind, I have a couple of questions I would like
to discuss with you?
Client—How can I be of help?
HR Representative—We value your business and need your input.
When your staff interacts with our customer service representatives (or
whoever they interact with) what attributes do you expect to enhance
your experiences in working with our staff?

We asked the client what are the characteristics of the ideal employee with
whom they had to interact. The response to your questions provides you
with the basis for the construction of both your job descriptions and the job
requisitions. It provides you with a list of the key performance indicators
for your specific positions. It in essence provides you with a picture of just
what the customer is willing to pay you for.
Another aspect of the go-and-see effort is to look at the flow of informa-
tion and people through the organization (Figure 5.2).
 66 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Up W/D Frame
components S/R
Cart
Mezzanine
Mezzanine
S/R

W/D Frames
Floor Stud rack Saw S/R Rack
W/D

staging
Framing (Raw material) (Raw
Framing material)
table
S/R

Up
Dry wall
staging
Slitter
W/D Frames
Saw Staging Dumpster
Main production line

S/R
Dumpster

Wall
Studs Saw
rack

Staging
(Raw

S/R
Saw
Desk material)

Saw

End wall Framing table Framing table Framing table

framing table

Saw

Figure 5.2 Spaghetti diagram.

Exercise 5.5 Organizational Flow

As you are out of your office looking at how things flow
through the organization, did you observe anything that looked like
it took an extraordinary amount of time to complete? If so, why?


We can do this by utilizing the tool we call a spaghetti diagram. It maps
out the flow through the organization. The preceding spaghetti diagram
is a process map of the flow of people and data through the organization.
When done properly, it clearly manifests the errors in the way things are
done. A well-known financial services company used this tool to follow a
loan a­ pplication for a new home purchase. When the process was done that
 Where Oh Where Is the End of This Journey? ◾ 67

a­ pplication had moved the distance of eight miles* from beginning to end.
Each step of the process is connected to the next step by a series of lines and
arrows. If the process is working properly, there should be a minimal ­number
of arrows connecting to each other. If you are out of sync with the rest of
the process, you end up with a visual picture that looks much like a bowl of
­spaghetti. When you have finished the spaghetti diagram, your next task is
to look at it with open eyes and see where certain steps can be eliminated to
allow the process to be faster, cheaper, and better.

Tactic 3: Focus on the Process

Exercise 5.6 Process or People
Stop and think for a moment. Your hiring manager comes to you
and tells you that the new employee is not working out and we
have to get rid of him. You work in an employment-at-will state,
but is that really the best answer? How would you respond to the
hiring manager?


I fully understand that we are human. When faced with obstacles or
­adversity the first tendency is to identify whom we can blame for the
­situation. As managers, we tend to immediately decide that when an
­organization has a problem, it has to be a people problem.
This is not to say that there are not detractors within the organization
who are dead set against the changes we are implementing. They are the
ones exemplified by the discussion in Chapter 4. But this comes from the
resistance to change and not the organization as a whole.
In order to achieve a customer-centric view, it is necessary for us to change
our focus so that the very first place we look when a problem arises is the
­process itself. In many, if not in all of these situations, it is the process and the
way we delivery it that is creating the problems. We have constructed steps,

* The description of this project was provided by one of the attendees in our 2-day Achieving HR
Excellence through Six Sigma class.
68 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

which made sense at the time of creation, but as time passed on we did not
review them to see if the steps made the same sense as when they were created.

Tactic 4: Do It Now
Exercise 5.7 When If Not Now?
When your organization last decided to make a change in the
way it did things, how long did it take for management to decide
to make the change happen?


It is critical we recognize that the decisions to correct processes must be
done quickly. Part of the trio of goals in the process improvement spectrum
is do things faster. The experiences discussed in Achieving HR Excellence
through Six Sigma regarding the GE Workout* and the Change Acceleration
Process highlight the need for these actions.
There is a disadvantage to the voice of the customer in that more often
than not we listen to the voice of the customer post that a problem exists.
The customer has expressed some dissatisfaction with our services or
products and so we retroactively respond. The purpose of Exercise 5.3 is to
begin the process of asking questions before we have a problem.

Tactic 5: Gain Knowledge

I have previously discussed that our workplaces are changing rapidly.
Some of the changes are caused by the introduction of new services and
­products. Others are caused by the ever-changing world in which we reside.
Nevertheless, we need to learn what is working and what is not working. An
additional Six Sigma methodology tool available to you to gain that crucial
need which is crucial to your success is benchmarking.

* For a more in-depth understanding of the GE Workout Process, look at Dave Ulrich’s book on the
topic, GE Workout (New York, NY: McGraw Hill, 2002).
 Where Oh Where Is the End of This Journey? ◾ 69

Exercise 5.8 Where Would I Go?

Your CEO has asked you to find out what the best practices are
to resolve a particular issue. What sources would you utilize to
find the answers to the CEO’s question?


Human resource professionals for years have utilized the benchmarking tool
in the delivery of their services to the organization. We have benchmarked
the programs other companies our size have used to offer benefits. We have
used benchmarking when determining whether our salary packages are
aligned with the rest of the industry.
Using these same processes we can review how other organizations
have undertaken the solution of similar problems to ours and what
worked and what did not. Achieving HR Excellence through Six Sigma
contained case studies from Ceridian, BGI, and others to demonstrate
where organizations had utilized the skills discussed previously in
this book.

Tactic 6: Corporate Mantra

Exercise 5.9 Who Is Listening?
You are the vice president of HR and you have just i­mplemented
a new policy and procedure in alignment with the latest
­benchmarking of HR practices. Who is listening to your effort?


70 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

None of what I have discussed so far is worth the effort if no one listens. The
final tool in the customer-centric pillar is that this change must become the
­corporate mantra. For it to become the corporate mantra, it has to become
embedded in everything the organization does. The mantra is part of our
­corporate brand. It is part of our mission statement. It is part of our c­ orporate
values. It is part of our image delivered to the marketplace. It has to be the
tacit understanding that this is the way we do business because our ­customers
demand that we do it this way. If someone can’t work within the new
­environment then they either need to get trained or coached on how to leave the
organization.
me e

Cu
sto f th
r

ltu
Tot
cu ce o

re s
a
ve

ide
i
Vo

l co

p
cti

Co
ew

e ci
rp b
oa

rp m

fic
rat
Pr

uy
rpo

ant

in
Co

ra

Organizational Alignment
Every organization, either in writing or implied, has a mission, a vision,
or an operating statement, which delineates their corporate culture. Your
­corporate culture tells the world who you are and what you stand for. The
combination of the corporate culture and the voice of the customer are the
keys to your organizational alignment. This combination, h­ owever, is unique
to your organization. You can’t go down the street to your c­ ompetitor
and find the exact same cultural components. The corporate culture is so
unique that benchmarking, which I discussed earlier, will be of l­imited
value. We need to begin by establishing a clear view of just what our
 Where Oh Where Is the End of This Journey? ◾ 71

­ rganizational culture is and the role it plays within your organization. Your
o
organization can do that by implementing the following seven strategy tools.

Tactic 7: Change Managers to Leaders

Exercise 5.10 Corporate Governance
How is your organization governed? What is the anticipation of
the role of your human capital assets within the organization?


Go to Amazon and search for the term “management books.” Amazon states
that there are 139,300 titles available in that subject area. The vast majority
of them will advocate the command and control manager style of operating.
Management decides that something will be done and hands down an edict,
which tells the organization hierarchy, “This is the way it will be done.”
In the Theory of Constraints–Lean–Six Sigma (TLS) Continuum, we
require a new approach to this long-standing view of the organization.
Our managers need to migrate to a new philosophy. It is one founded in
the belief of the individual human capital assets. You no longer “manage”
a ­segment of the organization but rather you are part of the whole system
model. As leaders, we have new goals. We need to strive to improve the
work environment for all of our human capital assets, much like the Quaker
Business Model.* Our goal is for an employer to seek for others, the best life
of which they are capable. Our view of the world is not confined to our silo
but must include the whole system we call work.
The success of the TLS continuum is based on the view that an
­organization only functions at its optimum when everyone is involved in the
final consensus on the optimal solution.

* More information on the Quaker Business Model can be found at http://qandb.org/resources

/publications/85-resources/publications/165-quakers-a-business-group-business-principles.
72 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Tactic 8: Transformational Leaders

Is there a difference between a leader and a transformational leader? The
response to the question is centered on your outlook of what your job
responsibilities are. If you believe that your role is to come to work and
manage people, then you do not understand your new role.
On the other hand, if you come to work and are taking positive steps
toward the implementation of empowered change in your organization, then
you meet the criteria for being a transformational leader.

Exercise 5.11 Leadership Role

As a leader, what is your role within the organization?


There is a clear difference between the manager turned leader as we
discussed in the previous strategy tool and the transformational leader.
The transformational leader looks at the organization with a different,
unique eye. This unique eye is focused on the opportunities within
the organization where they can empower change. When they have
­discovered these opportunities they then assume the responsibility to
lead that change. They must create a road map for that change much
like I have done in this book and they must ensure that e­ veryone is
on the same page going forward. I am not suggesting that this new
­transformational leader is a lone wolf, although he or she may start out
that way. Whatever change they are guiding must be in total a­ lignment
with the leadership vision for the organization. The changes they
are leading are changing not a single process but the way the total
­organization functions—the way the total organization operates. It is
creating a new vision, a new mission, and a new work e­ nvironment.
You are taking the organization from where it is to a place it has
never been.
 Where Oh Where Is the End of This Journey? ◾ 73

Tactic 9: Educate and Train

Exercise 5.12 Educate versus Train
Organizations spend millions of dollars on training for their
employees, but what is the difference to you between “educate”
and “train”?


The TLS Continuum mandates that we need to follow a very clear path.
We begin with the process of educating our organization about the new
process. This education process explains what it is we are going to do,
why we are going to do it, and how we are going to do it. There is one
final piece of the educate side of the equation and that is that we need
to educate the organization regarding what the consequences are if we
do nothing and remain in a state of status quo.
Once we educate the organization, we assume a new role. In any
organization there will be individuals who either can’t or won’t obtain
the necessary skills to perform the duties we ask them to do. In
these cases, we need to immediately determine which option we are
­dealing with. The major reason in most cases is that the i­ndividual
either did not receive or understand the directions they were given.
In this case, the transformational leader must train the individual
to get them up to the key performance indicator level required. If
at first we are not s­uccessful, then we need to continue to train
the i­ndividual until they get the required skills. There also may be
a point at which the employee reaches a level that is b ­ etter than
it was but still does not meet the required skills, and at the point
we reverse the cycle and educate them about alternatives available
for them.
For those who absolutely refuse to become involved with the new
processes, the only thing that can be done is to educate them about what
options are available outside the organization.
74 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Tactic 10: Break Down Silos

Exercise 5.13 Silos
Is your organization totally aligned, or do you still have
­departments that think they are above the rest of the
organization?

Every organization has its departmental functions, and that is a fact

of ­corporate life. What is not true is that they have to operate in this
self-ordained vacuum compared with the rest of the organization. While
some silos such as IT may be needed, they must function within the total
­organizational alignment plan. This is why the benefits of cross-functional
teams are so important in the TLS Continuum.

Tactic 11: Avoid Quotas

Deming told us that the existence of quotas was demeaning to the
­organization. In many cases, these quotas are based on data that was pulled
out of thin air. Forget the arbitrary number and look at the HR metrics that
mean something to the organization. For example, it is of more benefit to
the organization to understand when a department is most likely to lose a
key employee rather than that we need to hire X number of employees per
month to meet our talent needs.
 Where Oh Where Is the End of This Journey? ◾ 75

Cu
me e
sto f th

ltu
r
cu ce o

Tot

re s
ve

al c
i
Vo

Co
cti

pec
te

orp
oa

rp m
ora

ific
Pr

rp

buy
ant
Co

in
ra
Standard work

Remove waste

TLS Continuum

Figure 5.3 Corporate culture specific.

Tactic 12: Coach

Think about the situation I talked about earlier regarding educate and
train. The TLS Continuum places on each manager a critical role. It is your
­responsibility to provide the environment in which each and every human
capital asset is allowed to develop to their maximum potential. The manager’s
role in this scenario is to take the individual from where they are and guide
them to the point where they meet the potential. Sometimes the manager will
suggest that there is a different role in the organization; other times the path for
that individual is to be allowed to graciously exit the organization (Figure 5.3).

The TLS Continuum—Optimal Organization

Empowerment
The final pillar in the TLS continuum is the optimization of the change
effort. This is the segment where the organization ensures that your efforts
to empower organization change have gained traction for the long term. The
final pillar represents the control stage of the DMAIC process. This phase
contains the final four strategic tools that are presented in this book.
76 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Tactic 13: Long-Term Planning to Optimize Services

Exercise 5.14 Succession Plan
Does your organization have a formalized succession plan in place?
If a key member of this project is removed for whatever reasons, do
you have someone who can seamlessly slide into his or her place?


Don’t be alarmed if your answer to the questions in Exercise 5.14 was no. The
majority of organizations do not have a succession plan in place. However, for
the long-range success of any empowerment effort you must create a plan to
ensure that the flow continues in the event of a departure, no matter what the
cause. It further ties into how well your processes are working.
Part of optimal organizational empowerment is based in the creation of a
specific standard of work for each process within the organization. The total
organization needs to understand that if a process is begun, it is completed
using the same steps each and every time. We have in essence created a
standard of work that becomes the benchmark as to how we are doing as
an organization. We may have multiple standards of work governing the
organization with the key being it is a process we follow each and every
time we utilize that process.

Tactic 14: Always a Better Way

We stressed in the beginning of this book that you were embarking on a
journey which had no ending. The reason for this statement is that there is
no finite way to resolve the issue you have uncovered in this journey. When
you have total organizational involvement, the corporate subject m
­ atter
experts (the frontline employees) will know when there is a better way to
do something. The way they resolve the problem may be totally different
than your organization has ever done it before. You need to maintain an
open mind to the new suggestions for improving your processes.
 Where Oh Where Is the End of This Journey? ◾ 77

Tactic 15: Poka Yoke

Another vital part of this final leg of the current journey is to remove v­ ariation
from the process. These variations to the process are nonvalue added
­activities to the customer and to the organization. Chapter 5 in Achieving HR
Excellence through Six Sigma outlined in detail the nine kinds of nonvalue
added ­activities. The important take away here is that to complete the control
state and the optimal organization empowerment we need to ensure that the
­standard of work eliminates the chance for error. Much like the automotive
shop where there is a pegboard with outlines of where the tools go, the human
resources function needs to design a system in which everything has its place
so that the entire organization knows how to place the process into action.

Tactic 16: Drive Out Fear

Exercise 5.15 Driving Out Fear
Is your organization open to experimentation on the part of your
human capital assets, or are they penalized in the end-of-the-year
performance reviews?

I suggested in the beginning of Achieving HR Excellence through Six Sigma

that as HR professionals you had a decision to make. That d ­ ecision entailed
deciding whether you truly wanted to continue in an HR role. It is our
belief that in order for you to continue, you need to speak the ­language
of ­business. More important, you must understand that, much like your
high school science classes and the scientific method, the DMAIC ­process
­provides you with a systematic way to test your hypothesis as to the
­solutions to your problems. Like the scientific method, we enter the measure
stage with the intent to test our expected solutions to the problem. Like the
scientific method, some solutions will succeed and some will fail.
78 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

The point here is not that it happens but rather we can’t expect that our
efforts to empower organizational change will be necessarily a smooth ride.
When things go wrong, and they will, we can’t hold those who worked
on the process improvement to be responsible because something did not
work. The major corporations who have been successful at this effort know
that. They understand that something in the process is why it did not work.
They additionally realize that, like our scientific method example mentioned
earlier, we do not hold the failure as a stick over the human capital asset’s
heads at performance time.
As we stated in the first book, change is frightful. Change is scary.
Change is about developing a problem-solving method that works for your
organization. Change is about taking the risk that your suggestions may
be in error. As Deming suggested, we must change the organization to
empower change without retribution. We need to ensure that no human
capital asset within the organization is afraid to make a mistake.
The human capital assets need to know and understand this. Equally
management needs to know and understand this.
Chapter 6

This Is Where I Get Off

I have a goal in my professional life to deliver a message. It is a message

that will transform our business world to greater heights. If we go back to
the time of the emancipation proclamation, we were deeply involved in the
agricultural age. This was a period when the family ran the farm and each
individual had an integral part in the success of the farm. As we moved to
the industrial age, we lost that human capital asset focus.
In a sense, we have come to this point in our business development to
cash a check. Starting with the Quaker business model, business laid out
a promise to the organization that we, as management, would take care of
our most valued tool in our arsenal to compete in the global marketplace—
our human capital assets that are now nonowned, leased corporate assets.
This promise stated that all programs initiated by the organization would
be centered on a guarantee of being a valued part of the organization. As
we look at many organizations today, it increasingly obvious that American
business has defaulted on this promise. The focus moved from considering
the human capital asset as such to being an expense item that affected the
corporate bottom line.
But we refuse to believe that the promise is bankrupt. We refuse to
believe that there is no room for the organizations to change in the global
workplace. This means, as Dr. Deming suggested, we need to move to a
new philosophy in which management learns their responsibilities and takes
on leadership for change.
If you are reading this page, you are here for one of two reasons. First,
there is a percentage of you who will read the introduction and the end of
a book to get a feel for the contents of the book. If that is your reason for

79
80 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

being here, you have missed a lot. You have missed the acquisition of the
basic knowledge of why we need change and how to work with the tools in
the TLS Continuum to achieve that change.
The second reason you are here is because you have participated in this
journey since its inception and we thank you for being receptive to our
message.
While the TLS (Theory of Constraints–Lean–Six Sigma) Continuum
journey is fret with “alligators,” it is an exciting journey and we were
privileged to have you join us. There is an old English adage dating back
to 1175 that states that you can lead a horse to water but you can’t make
it drink. It in essence is where we are now in the journey to process
improvement.
It has been my honor to guide you this point. I have taken this
­opportunity to lay out my message about the road map to enable you to
gain the resources to empower your organizational change. I can do no
more and no less. I am the carrier of a critical message for sustainability of
your organization and for you as a professional. Hopefully, I have p ­ resented
the importance of taking the journey with all its pitfalls and successes.
The intent was to provide you with a new set of glasses from which you
viewed the world, your organization, and how you serve your c­ ustomers,
both ­external and internal. The intent of this work was for you to gain
the p
­ erspective that those attending the 2-day seminar have. They have
come away with the belief that they never thought of viewing the human
resources (HR) function in the way they do now.
I have done all I can to be your teacher and your sensei on how to begin
this journey. There is nothing more that I can ­contribute to the success of
your personal journey.
From here on out, it is your journey and your choice as to whether you
carry it further. It is your choice whether you gain the knowledge and
understanding of your internal and external customers. It is your choice
whether you transfer that knowledge to ensuring that you only deliver what
they are prepared to pay you for. It is your choice whether you can ascertain
the roles that your customers, vendors, and management play in the error-
free delivery of your services and products to those customers when they
need them, where they need them and how they need them. You decide
whether you are truly delivering your services faster, better, and cheaper
than the next person.
You have a choice to make. Do you play it safe and continue in the
mediocre, commodity-based path that the vast majority of HR people follow
 This Is Where I Get Off ◾ 81

in, or do you take the risk and strive for a whole new vision of where your
organization can go and do.
Are you willing to eliminate or at best reduce the fear of m
­ aking a m
­ istake
and go for it and empower that change required for your o ­ rganization to
thrive in this rapidly changing global workplace we are in today?
I need to also remind the reader that since you began this journey, your
old comfort zone most likely no longer exists in the format you ­remember
it. This leaves you with the options of continuing the journey or failing
to p ­ rovide the valuable human capital management perspective that your
­organization needs to survive.
The TLS Continuum provides you with the road map to get to that new
place where you have never been. The TLS Continuum provides you with
the tools and procedures to ease the journey to this new culture. This
new philosophy, which runs rampant through the entire organization,
determines how you precede going forward. The only way this will
succeed is if the entire organization understands what is in it for them,
what is not in it for them if we don’t take the action, and what the path to
this new normal is.
Once again I thank you for joining me on this journey. The only thing
we ask in return is that you take the chance and begin the journey not with
me or with a class of students but with a self-review of your own ­situation.
If you do so, you will become a better part of the organization. As HR
­professionals you are the catalyst for the empowerment to change due to
your responsibility for the management of the human capital assets. Embrace
that power. Embrace the new function you will play.
I leave you with one expectation. Each and every one of you who has
read this book will go forward and be focused, flexible, and fast within
your organizations. My hope is that you will embrace these o ­ pportunities
to improve the processes that in turn will grow your organization—
that you will embrace these opportunities to empower change within
your o ­ rganization, leading to a new normal embedded throughout the
­organization and centered on the TLS Continuum spectrum.
There is one more thing we ask in return for my guidance along this
journey. Pay it forward. Share the message with your peers both inside
and outside your organization. Become the additional messenger to
alert your fellow professionals to the dynamic opportunities that you
have d ­ iscovered in the course of the journey. Learn how to deliver your
message in the strongest way possible. Reach out in a method where you
will be heard. You have seen the light of the future and now have the
82 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

task to show others the light. I have refrained from recommending one
resource over another but in learning how to deliver your version of my
message I would highly suggest you obtain a copy of Sally Hogshead’s
How the World Sees You.* It will change the way you deliver the message
in a dramatic way.
I look forward to hearing about your successes.

* Hogshead, Sally. How the World Sees You. New York, NY: Harper Business, 2014.
Chapter 7

Case Studies

The purpose of this Field Guide to Achieving HR Excellence through Six

Sigma was to provide you with the tools that will enable you to empower
change within your organization. In Chapter 5, we discussed a tool out of
the toolbox called benchmarking.
Benchmarking is a tool that many human resource professionals
are familiar with, as we have used it for years. You are writing a new
policy so you reach out to the HR community to see what others have
included in their similar policies. You are considering a revision to your
compensation plan, so you reach out to the global marketplace to see how
others are paying professionals with similar skills and education. These
are all examples of benchmarking. It should be noted here that the results
from benchmarking can have either a positive or negative effect on your
organization.
In trying to bring this road map to a natural conclusion, I wanted to find
a way to demonstrate through benchmarking what others have done along
the way toward implementing the TLS Continuum road map. At the same
time, my goal is to present to you the reader evidence-based information
that would explain the process improvement path so that no matter what
your learning style you would be able to draw the same conclusions from
the projects presented in Chapter 7.
The Merriam-Webster dictionary defines a case study as a published
report about a person, group, or situation that has been studied over time
or a situation in real life that can be looked at or studied to learn about

83
84 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

something. Those of you who have had experience studying case studies
know that they typically come in the form of a multiple-page document,
which in narrative form presents the critical information regarding the
events under consideration. They provide a clear picture of processes within
organizations. So, I could not think of a better way to complete this chapter
than to provide you with several case studies of organizations that have
used the tools we have discussed.
Having said that, I will be creating case studies with a twist. These case
studies will have a limited amount of narrative. This is done on purpose to
respond to the learning styles of the reader. In each case study that follows,
I will provide you with a narrative pertaining to two aspects of the situation
involved. First, I will provide you with a brief paragraph describing the
organization involved. Second, I will provide you with a brief paragraph
describing the problem that was being presented. The remainder of the case
study will be all the actual project documents that the organization used.
One last caveat is needed here. In each case, these are real projects with
real results, which generated positive results for the organizations involved.
Finally, we will include a conclusion section, which will describe the results
of the project.
Following are five case studies each of which used the DMAIC process to
respond to an organizational real problem.
The first case study, titled “Training Effectiveness: Is the Cost Justified?”
was the author’s Black Belt project. It looked at the worldwide efforts to
evaluate training and whether the results made the cost we spend (according
to Workforce magazine in 2008, corporations spent $56.2 billion on training)
for training justifiable to an organization.
The second case study is from Sparton Electronics and deals with the
effective time to hire new employees. This project was submitted as the
requirements to complete our How to Become the Critical HR Leader You Are
Meant to Be seminar.
The remaining three case studies come from a medical device
manufacturing corporation dealing with both service and manufacturing
examples of process applications.
List of Case Studies
Case Study 1
Organization: Daniel Bloom & Associates, Inc. (DBAI)
Problem: Training effectiveness: Is the cost justified?
 Case Studies ◾ 85

Case Study 2
Organization: Sparton Electronics
Problem: Excessive hiring time
Case Study 3
Organization: Electromechanical Medical Device Manufacturer
Problem: Extended hiring time
Case Study 4
Organization: Electromechanical Medical Device Manufacturer
Problem: Reduction of hold time on invoices
Case Study 5
Organization: Electromechanical Medical Device Manufacturer
Problem: Process of work packet failure to follow standard of work

Case Study 1: Training Effectiveness: Is the Cost Justified?

The Organization: Created in 1980 and incorporated as a Florida
corporation in 1988, DBAI is a boutique HR consulting firm
specializing in providing services in the areas of HR strategy, the
application of the Six Sigma methodology to HR, retained HR,
coaching, and training. In addition, we facilitate presentations for
associations across a wide spectrum of industries on HR matters.
Based in West Central Florida, we service our clients as subject matter
experts in the field of corporate mobility. We are HR strategists
assisting organizations to empower change within their organizations,
and our client base ranges from the Fortune 100 to small and medium
enterprises nationwide.
The Project: The business environment began as agricultural based, and,
as we began the move to the cities, the marketplace fundamentally
changed. In the Industrial Age, we needed to discover ways to
be competitive with other firms doing the same thing we were
doing. This was based on becoming more innovative in the way
we developed products. The essence of this was the human capital
investment that businesses undertook. The problem was that the
human capital aspect in the Industrial Age was considered to be an
expense of the organization. As a result, when hard times arose in
the marketplace, much like we saw in the global arena in 2009, the
86 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

first thing organizations sought to do was to cut expenses through

a reduction-in-force (RIF). As the world changed further, we moved
from the value of the enterprise being based on what we made to
an organization based on what we knew. This change fundamentally
changed the way the human capital factor was viewed within the
business. Our FTEs were now an asset, a nonowned asset, rather than
an expense. With this change, the need was created to find a way
to increasingly engage the FTEs within the organization. As the new
generations entered the workforce, the developing career portfolio
increasingly became an issue for recruitment and retention. Despite
this new focus, training has always been one of the first areas for
corporations to cut when times got bad.

On January 27, 2009, Daniel T. Bloom, the Six Sigma Black Belt on this
project, with the approval of William Mazurek, project sponsor, began
the process to determine whether the $56.2 billion expended was in fact
a cost-effective use of corporate funds. The Black Belt Project stated that
the current environment for training, in most cases, only involved an
attempt to ascertain whether the FTEs that were being trained enjoyed
the training. There was no attempt to discover whether the organization
was achieving a return on their investment. The purpose of this report
is to present the results of the evaluation of existing training program
across multiple industry segments and explain the solutions being
recommended to gain a better picture of the impact of training on the
organization.
This project analysis utilized a detailed explanation of the current state of
the industry, the available results of training evaluations, and the Six Sigma
DMAIC methodology from which the participants were able to reach clear
and demonstrable conclusions on whether corporate training is cost-effective
both strategically and financially (Figures 7.1 through 7.5).

Figures

1. Project charter
2. SIPOC
3. Fishbone diagram
4. Balanced scorecard
5. Corporate metrics
 Case Studies ◾ 87

Project Charter

Project Name / Title:

Training Effectiveness: Are Our Training Programs Cost-Effective?
Sponsoring Organization:
Daniel Bloom and Associates, Inc.
Project Sponsor:
William F. Mazurek Six Sigma Black Belt
Team Members (Name)      Role
Daniel T. Bloom Black Belt Consultant
Tiffany Krueger First American Title Training Provider
Pat Smolen PSCU Financial Services Training Provider
Kevin Weafer KLA-Tencor Training Provider
David Castaneda Lazy Days RV Superstore Training Provider
Ed Nolen AAASouth Training Provider
Principal Stakeholder Proposed Benefit
Senior Management More Engaged FTE’s
which will in turn make
Training Providers
the business enterprise
Corporate Clients more productive
Corporate Employees (FTE’s)
Sponsor Approval Signature / Date:

Preliminary Plan (Milestones) Target Date Actual Date Approvals

Determine the scope of the 01/27/2009
project
Prepare and submit project 02/04/2009
charter
Determine evaluation methods 02/10/2009
Analyze the training data 04/15/2009
Construct dashboards 04/22/2009
Construct Balance Scorecard 04/27/2009
Deliver final product to 05/06/2009
stakeholders

Figure 7.1 DBAI project charter. (Continued)

88 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Project Name/Title:
Training Effectiveness: Are Our Training Programs Cost Effective?
Problem/Opportunity Statement
In today’s competitive talent market, one attribute most sought after by the generation
coming into the marketplace is the ability to enhance their career portfolio. The
question for training providers and senior management is whether the training they
provide is the right type (training versus education) to meet their needs. In order to
determine this, we must investigate the availability of the correct tools to properly
calculate our return on investment of the various training being delivered.
Project Goal: Solution/Recommendation
The goal of this project will be to create a visual dashboard which will enable the
trainer provider to quickly determine from analyzing the selected evaluation
methods how they are doing with the training programs and from there calculate
the return on investment of said programs. After selecting the best venue for the
evaluation, the strategies from that training will be embedded into a Kaplan and
Norton Balanced Scorecard vehicle for future training development.
Resources Requested (What you need, $, personnel, time, etc.)
• Access to Corporate Training Program Statistics
• Data from the Kirkpatrick’s Four Levels of Training Evaluation
• Data from the Phillips’ Five Level ROI Model
• Data from Total Cost of Ownership calculations
• Data from DuPont Training Attribute Model
• Simple Training ROI
Project Impact Statement
Based on the selection of the evaluation methods of training, we should be able to
demonstrate the best practices in designing training programs for the corporation
which will enhance the career portfolios of the involved FTEs and at the same time,
through increased employee engagement have a direct impact on the corporate
bottom line by getting the most for the dollars spent in providing the training
programs.

Figure 7.1 (Continued) DBAI project charter.

How to Use the Training Attribute Evaluation Tool—A User Guide

The Excel-based Training Attribute Evaluation Tool, developed out a Six
Sigma Black Belt project, is a vehicle to provide management with a method
to identify the relationship between the critical and quality aspects of the
planned training to determine whether or not the organization is receiving a
return on their training dollar investment. Below is a detailed explanation of
the tool. Each worksheet of the tool is designed to carry the manager deeper
into the training implication process.
 Case Studies ◾ 89

SIPOC Diagram

Suppliers Input Process Output Customers

Performance
development Training need Increased Corp human
staff assessment Start: efficiency capital
Design of
Program Management training Increased Various corp
developers buy-in programs engagement departments
Presentation
Program Stakeholder of training External
vendors buy-in programs customers
Type of
training (ILT,
WBT, CBT)

High-Level
Process
Description:

END:

Figure 7.2 DBAI SIPOC diagram. (Continued )

90 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Suppliers Input Process Output Customers

Training
metrics
Calculation of
training ROI

Figure 7.2 (Continued ) DBAI SIPOC diagram.

Materials Process/Methods

Proper training attributes LT?

Training collateral materials WBT?

Feedback format CBT?

Feedback Problem Statement

Is the provision
of training
within the business
enterprise cost-
Management buy-in Audio-visual
effective?
Technology
Organizational development staff
Instructional space
Skill versus will

People Machines

lshikawa Fishbone Diagram

Cause Effect Analysis

Six Sigma Black Belt Project

Training Effectiveness: Is the Cost Justified?

Figure 7.3 DBAI fishbone diagram.

 Case Studies ◾ 91

Training Effectiveness Black Belt Project

Training Balanced Scorecard

Financial
perspective Long-term stakeholder value

Increase in Increase in net Reduction in nonvalue

productivity/increased sales Increase in revenue
profits added expenses

Customer
perspective Better understanding Higher level of Development of More efficient
of voice of the customer client/FTE interaction corp/cust relationship vendor partnership

Internal Higher level

Increased process Increased employee
perspective customer service Increased FTE
efficiency engagement
delivery skill base

Learning and
growth Skill versus will Training delivery Added skill sets
perspective when needed for FTE base

Training Effectiveness Balance Scorecard

Prepared by Daniel T. Bloom
Six Sigma Black Belt Project
May 6, 2009

Figure 7.4 DBAI balanced scorecard.

Training Assessment Tool—Corporate Tactical

Improvement Areas
The evaluation tool begins with the determination of those tactical
areas that management feels are necessary to change in order to
enhance the operations of the organization. While the list of tactical
areas is organization specific, the following example provides a
sample of the kinds of tactical improvement areas that might fit your
organization. In the following examples, we have delineated 14 tactical
areas that the example organization felt needed improvement. These
tactical improvement areas constitute the basis of the rest of the tool
worksheets.
In order to understand the tool in real terms, the 14 tactical improvement
areas are defined as follows.
 92 ◾

Corporate Metrics
Metric/corp Corp 1 Corp 2 Corp 3 Corp 4 Corp 5 Corp 6
Annual sales volume $24,000,000 $564,835,000 $2,521,716,000 $778,000,000 $8,195,605,000 $1,000,000,000
Total training hours 52,583 27,992 56,944 53,013 62,265
Total training—ITL 52,583 4,863 56,944 1,504 62,265
Total training—WBT 23,129 51,513
Total training—CBT
Total FTE trained 4,125 32,855 700 1,638 30,647
Total trained % revenue 0.001% 0.001% 0.0001% 0.00002% 0.003%
Total FTE—ITL
Total FTE—WBT
Total FTE—CBT
Total cost of ownership
Kirkpatrick reaction 4.7
The Field Guide to Achieving HR Excellence through Six Sigma

Figure 7.5 DBAI metrics.

 Case Studies ◾ 93

◾◾ Individual Performance Level—Without exception business

organizations through their management efforts have determined a
certain level of productivity that is needed from each member of the
organization. Deming has charged us with ridding the organizations of
quotas, but these go beyond that. These individual performance levels
are broken down into what each human capital asset must contribute to
the organization in order for the overall organization to sustain itself.
◾◾ Increased Peer Pressure (To Go Do a Good Job)—One of the
outcomes of the movement to a culture of quality is that it is everyone’s
responsibility to ensure that the organization is a place where defects
are not tolerated. As a result, the second tactical area looks at the level
of pressure placed on the human capital assets by their fellow workers
to ensure that we meet the goal of quality work.
◾◾ Employee Motivation (To Go the Extra Mile)—In line with peer
pressure, how far are our human capital assets willing to go to get the
job done? Are we stuck in that’s-not-my-job mind-sets? Do our human
capital assets take ownership of the work with the goal of doing what is
necessary to get it right the first time?
◾◾ Meaningful Performance Assessment (Good/Better/Best)—One
of the difficulties in evaluating any training program is how to judge the
ultimate outcomes of the training on corporate performance. Whether
you use the Kilpatrick or the Phillips model, many trainers believe it is
too difficult to evaluate these programs beyond a simple smile sheet.
The manager is asked whether they believe that you have a meaningful
way to determine the assessment model is good/better/best in class.
◾◾ Incorporating Process Improvement as a Corporate Culture—
An organization can continuously conduct training programs for a
wide variety of reasons. Sometimes we introduce training because
the industry we are in requires it, such as for regulatory reasons. In
other cases, training is conducted to improve the organization skill
levels in the soft skill arena. In either case, the goal is to change the
organizational culture. A key to the outcome is the support of upper
management toward the new culture.
◾◾ Achieving Bottom-Line Results—Management understands that in
order for the organization to survive, the organization must operate at
a certain financial level. The belief of management is that by providing
the training programs, the newly obtained skills will allow the
organization to grow their revenues and as a result increase the bottom
line of the organization.
94 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

◾◾ Respecting Our Corporate Values—Organizations function as

they do based on the organizational culture. One of the training
expectations is that new and current employees will gain a better view
and respect for those cultural aspects that run the organization.
◾◾ Increasing Our Competitive Advantage—We are in an age
where our human capital assets are corporate assets, based on the
knowledge they have of both the industry and the organization they
are functioning in. Training is expected to increase their value to the
organization as a knowledge asset capable of bringing unique solutions
for the customer base of the organization.
◾◾ Maximizing Employee Loyalty—Much is said today about the lack of
employee engagement. One key to changing this perspective is for the
belief on the part of the human capital assets that they are a vital part
of the organization.
◾◾ Employees Perceive Our Compensation Benefits to Be Fair—
Quality training has value. The goal of many of the human capital
assets is to increase their career portfolio of applicable skills. Whether
they are taking free training or a paid seminar, the human capital
assets will understand that this is part of their compensation package.
With this information, when they talk with their various networks,
they will be in a position to evaluate whether they are receiving
competitive benefits for the services they are providing to your
organization.
◾◾ Building Trust through the Organization—In order for training
to be effective, it must cross all parts of the organization. Any training
being offered to the organization should include not only line staff but
also management. The purpose for the interaction between the levels is
to develop the belief that each part of the organization has a valuable
required role within the organization.
◾◾ Relationship Building (Between Levels, Across Levels)—Look
at many of your organizations in your industry and you will find that
many of them have come to the realization that the path to high-
performing organizations is through the use of high-performance
teams. The purpose of the team is to all interact to resolve a critical
issue within the organization. As the teams achieve their purpose,
relationships are built across the organization with common goals.
◾◾ Networking within the Organization—Team-Building Benefits
A side benefit of the cross-functional team approach is that when team
members look outside of their “silos,” there may very well be talent
 Case Studies ◾ 95

resources within the organization that they never knew were there
and available to the organization. In the process of utilizing the cross-
functional teams, you learn where the resources are and how to utilize
the resources for future projects.
◾◾ Open and Honest Coaching and Feedback—The final tactical area
is that of coaching and feedback. The Kirkpatrick model is the ability to
be able to demonstrate that the training has improved the performance
levels of the organization. Training should present a picture of where
and how the human capital asset needs coaching to reach the next
performance level.

Returning to the tool, we can now walk through the completion of the tool.
Completion of the first worksheet within the training effectiveness evaluation
tool (TREEAT) is based on the following tasks.

Task 1: We have identified the tactical improvement areas and so

now it is the responsibility of management to begin the analysis of
the organization based on these tactical areas. The first column in
this worksheet asks you on a scale of 1–10, with 10 being superior,
to assess where you are in each of the tactical areas. This analysis
represents your current state as it pertains to each tactical area. If
you look at the following example, in our sample organization the
rating scales range from 2 to 6. Once the complete analysis is done
it provides us the ability to identify the critical few tactical areas
that need the most attention. If you look at the ratings example, the
critical few most likely would be represented by employee motivation
and meaningful performance assessment since they are both shown
with a rating of “2.”
Task 2: With management having identified the current state it
now becomes critical that you take it the next step. This involves
management determining what the future state would look like.
Following the training being delivered, how do you picture the
organization? Once again we use the same rating scale and rate each of
these areas on the same 1–10 rating scale, with 10 being superior.
Task 3: The final task on this initial worksheet is to determine how
important that tactical area is to the organization. Every organization
has its priorities and the training outcomes are no different. Using the
same 1–10 scale, management will rate each tactical area on the basis of
how important is that area to the future of the organization.
96 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

The worksheet has embedded in it formulas which determine how to

calculate an improvement goal based on the comparison of the current
state, the future state, and the business priorities. This calculation is
carried forward to a later worksheet (Figure 7.6).

Take a moment and review the discussion of Dettmer’s Goal Tree*.

Dettmer suggested that we begin with a goal (corporate tactical
improvement areas) and from there we have to determine first in order
for us to achieve the goal we need to have certain conditions to be
present.
In this second worksheet, we have the goal and now need to identify
those conditions necessary to achieve the intended training outcome.
Below is a look at the goal versus condition required to achieve the

Current Corporate Business

Improvement
Corporate Tactical Improvement Areas for 2009 Performance Goal Priority
Goal %
(1–10) (1–10) (1–10)
1. Individual’s performance level 3 10 10 333
2. Increased peer pressure—to do a good job 4 7 1 175
3. Employee motivation—to go up and above 2 7 1 350
4. Meaningful performance assessment (good/better/best) 2 8 10 400
5. Incorporating process improvement as a corporate culture 5 10 1 200
6. Achieving bottom-line results 3 8 8 267
7. Perspective on our corporate values 5 8 1 160
8. Increasing our competitive advantage 6 7 7 117
9. Maximizing employee loyalty 5 8 1 160
10. Employee’s perceive our compensation benefits to be fair 5 6 1 120
11. Building trust throughout the organization (between levels) 4 6 1 150
12. Relationship building (between levels, across levels) 4 6 1 150
13. Networking within the organization—team-building efforts 3 5 1 167
14. Open and honest coaching and feedback 4 5 1 125

Corporate Business Improvement

Ranking
Goal Priority Goal %

Not a focal point 1 1

Nice to have 5 5 205
Gotta have 10 10

Results
Achieved
to Date %

Figure 7.6 Training assessment tool—training effectiveness goals.

* Dettmer, William. The Logical Thinking Process. Milwaukee, WI: ASQ Press, 2007, pp. 72–88.
 Case Studies ◾ 97

goal. It will further be shown in the example of the worksheet that

follows the discussion.

Tactical Improvement Area: Individual Performance Levels

The question needs to be asked that, if our intent is to improve the
individual performance levels of our human capital assets, how do we go
about achieving the increase? The following example suggests that there
are three ways to accomplish the goal. First, we need to increase process
efficiency. We need to remove nonvalue added activities that are blocking
that process efficiency. The second method would be to increase the rate of
productivity on the part of the rank and file of the organization. Productivity
is based on the amount of product or service that is made or created and
sent on to the customer. Productivity declines when we have a large amount
of rework to correct errors. The final condition that could lead to higher
productivity levels is how well the team works together.

Tactical Improvement Area: Increased Peer Pressure

Peer pressure can be a good thing and it can be a bad thing. In order to
achieve the improvement within this tactical area it requires the organization
to increase the level of team participation in the organization. We do that
by ensuring that everyone is on the same page. You need to identify who is
serving as an obstacle to process flow. In that same light, the intent is to get
the team together toward a common goal and allow the impact of the team
members to work on those who are refusing to come along for the ride.

Tactical Improvement Area: Employee Motivation

This is the 64-million-dollar question for many organizations: How do we
motivate others within the organization to perform at a higher level? The
answer is based on how motivated the employees are toward their jobs.
Motivation arises out of several directions. The first is pride of ownership.
Deming stated that when the employee owns the business, they perform at
a higher level. We do not mean financially owning the company. We mean
that they take pride in that finished product or service being delivered to
the customer. When the human capital assets feel this sense of ownership of
the process, it leads to a higher level of employee engagement.
98 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Another aspect of employee motivation is whether the training you are

offering is adding to their career portfolio. Is the training adding to the level
of skills they have to bring to the table?
The other side of that coin is whether the new skills are leading them
to a higher visibility within the organization and opening doors to new
opportunities to enhance their careers.
The ultimate benefit of this tactical area is that as you improve it, morale
goes up, retention rates improve, and the organization builds a team spirit.

Tactical Improvement Area: Performance Assessment

Do you know who your HIPOS (high potential, high performing) employees
are? Do you even know how to assess who they are? In order for the
performance assessment tactical area to improve, the organization needs
to first know who your HIPOS are and how to assess the level of their
performance.

Tactical Improvement Area: Focused Process Improvement

Every organization has processes with hiccups. So the question before you
is, how do you minimalize the hiccups? There are three ways to achieve this
goal. First, you need to improve the workflow. We do that by aggressively
ensuring that the obstacles to process flow are removed from the
organization. One way to do that is make sure we are not repeating efforts
that would save us time. For example, we don’t need HR to do a search for
talent and then have the manager repeat the search. Finally, as we discussed
in Achieving HR Excellence through Six Sigma, you need to review your
processes to identify areas where you are not following a standard of work
and allowing Muda creep to come into the organization.

Tactical Improvement Area: Bottom Line Results

The way to improve the bottom-line results is relatively simple. You have to
take in more revenue and spend less on expenses. In looking at this tactical
improvement area, there are a limited number of conditions that must be
present to reach the improvement goal in this area. One additional area in
this area is to remove the nonvalue added activities that reduce the amount
of funds available to the organization.
 Case Studies ◾ 99

The final area is that you need to find a way to raise the value of the
company both to your employees and the external markets.

Tactical Improvement Area: Competitive Values

Your organization has values. Your human capital assets have values.
The questions are 1) are the values in complement to each other and
2) are the accepted corporate values corporate-wide throughout the
organization?
You can improve the competitive values area by creating a strong
corporate communication program to explain the corporate objectives.
Identify what is in the values for the rank and file and why the organization
is making changes. The communication program needs to also create a
sense of buy-in from all levels of the organization.

Tactical Improvement Area: Competitive Advantage

Why do customers come to your organization? What makes you stand out
in the marketplace? These questions are the essence of your competitive
advantage. The example of the worksheet suggests that there are several
ways to enhance your competitive advantage as follows:

1. The golden grail of HR is to make your organization the employer

of choice. It enhances your competitive advantage by attracting the
best and the brightest of the minds in the marketplace. Entwined
with being the employer of choice is that your retention rates will
go up.
2. You provide competitive advantage to the organization by increasing
your knowledge of both the market and the processes which serve the
customer. This knowledge assists the organization in delivering error-free
products and services.
3. You enhance the competitive advantage by encouraging your human
capital assets to take risks. You want them to develop new ideas on how
to do things your business does best.
4. Another key to competitive advantage is how well you deliver on your
promises. Take a look around the marketplace and look at those who
have the best brand recognition. They all have in common the level of
100 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

quality service they deliver. They all meet the criteria set by the voice of
the customer.
5. Finally, the organization must encourage the belief in the system from the
nonsales personnel. Those in finance, IT, etc. must also show the same
energy demonstrated by the sales staff in business development efforts.

Tactical Improvement Area: Employee Loyalty

Tied to the involvement of your employees within the organization and
being the employer of choice is the question of employee loyalty to the
organization. Industry has found that if we have engaged employees, we
see in turn reduced turnover rates and a lower level of reasons not to report
for work.

Tactical Improvement Area: Compensation Benefits

The compensation and benefits area of the tactical improvement areas refers
to the level of compensation you are providing to your human capital assets at
all levels. As the very basis of the consideration is, are you providing a living
wage for your location? When the human capital assets are not treated solely
as an expense item, knowledge levels go up along with employee promotion
rates.

Tactical Improvement Area: Building Trust

Process improvement is based on everyone doing his or her part to enhance
the organization. The result is based on everyone within the organization
trusting others. You need to get to the place in your organization where
you trust people to provide the correct information when you need it. This
same level of trust needs to extend to your customers both internally and
externally to the organization.

Tactical Improvement Area: Relationship Building

Interdependent with the area of building trust is taking that trust to the next
level and building relationships with all segments of the supply chain. The
relationship needs to be established primarily between management and
the human capital assets through recognition of the performance levels of
 Case Studies ◾ 101

the teams and management’s willingness to recognize the results of the

training programs offered.
Another aspect of this area is that from time to time you will find yourself
in a position where you don’t directly have the information you need to
compile solutions to pressing issues. To operate at your maximum potential,
you need to have a wide selection of subject matter experts (SMEs) that you
can turn to. You must also trust these SMEs to provide the answers you need.

Tactical Improvement Area: Networking Benefits

Communication within your organization must be a two-way street. The
number one way of enhancing these communication efforts is to provide
opportunities for human capital assets to network with each other. This
includes with subject matter experts but also with informal access to senior
management. Management should truly have an open-door policy. The
other side of the coin is providing the opportunity for the human capital
assets the ability to provide management with direct feedback on how the
organization is operating.

Tactical Improvement Area: Follow-Up Coaching

I talked earlier about the need for managers today to be leaders. This
evolution included being a coach to the rank and file. This means that
managers, in the situation where the education did not take hold, must be
willing to coach the human capital assets on how they can achieve the level
of performance that the organization needs. This also includes the potential
of explaining to an FTE why the best action would be to leave the current
job, either for an outside position or another department within the company.
The response to the follow-up coaching is increased employee
engagement and a higher level of employee morale.
The TREEAT ask you to make three analysis tasks with the information
you now have in your possession. First, you are asked to subjectively answer
whether you think the provided training had a positive impact on the
corporate improvement area. The question is answered by a simple yes or no.
With that response in hand, on those tactical improvement areas where
you responded that it did have an impact, at what point do you expect to
see the improvement? You are given three choices—3 months, 6 months, or
1 year. The response is entered by the time.
102 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

The third assessment was, in looking at the impact of the training, how
effective the training was in meeting the corporate goal. This is different
than whether there was a positive impact on the area. This is asking you to
determine on a scale of 1–10, with 10 being superior, just what impact the
training had.
The results of your assessment are carried over to the later worksheet, as
will be discussed in later pages in this guide (Figures 7.7 through 7.9).

Training Attribute Tool

If Yes---How Long Will Training

Targeted
It Take to See Tangable How Effective Was Effectiveness
Did Training Positively Corporate
Improvements the Training in Calculation
Impact the Corporate Improve-
Short Term (≤ 3 Months) Meeting the Projected
Improvement Area? ment
Mid Term (≤ 6 Months) Corporate Goal? Improvement
Percentage
Long Term (≤ 12 Months) Results
(%)

Attribute (Yes) or (No) (3)(6) or (12) Scale (1–10)

Performance Levels 333 50

Increased process effciency No 3 2

Increased productivity No 3 2

Increased team performance No 3 2

Increased Peer Pressure 175 87

Increased team participation No 3 5

Increased peer pressure No

Employee Motivation 350 70

Increased pride of
Yes 6 5
job ownership
Increased employee
Yes 6 5
engagement

Increased career portfolio Yes

Increased status and

Yes
promotability
Increased morale Yes 3 3

Built team spirit Yes 3 3

Performance Assessment 400 (Not effective)

Identified top
performers No

Assessed employee
No 0
performance

Figure 7.7 Training effectiveness tool—training impact assessment.

 Case Studies ◾ 103

Employee Loyalty 160 (Not effective)

Reduced turnover No
Reduced absenteeism No

Compensation Benefits 120 45

Improved knowledge levels Yes 3 3
Improved employee promotion
rates
No

Building Trust 150 74

Increased relationship building
among coworkers Yes 6 5

Maintained customer/end-user
relationship Yes 6 5

Relationship Building 150

Increased recognition of improved

No
team performance

Management recognition of effect

of the training to the company
No

Built relationship with subject

No
matter experts

Increased loyalty through career No

portfolio development

Networking Benefits 167 42

Provided networking opportunities Yes 3 5

Provided informal access to senior

management Yes 3 2

Provided opportunity for FTEs to

Yes 3 3
provide feedback

Follow-up Coaching 125 50

Increased employee engagement Yes 3 5

Increased employee
Yes 3 3
morale

Figure 7.8 Training effectiveness tool—training impact assessment page 2.

Training Assessment Tool—ROI Calculations

The third worksheet in the TREEAT is the one that is there because
organizations want to keep track of corporate spending. It puts training
expenses in financial terms. It is provided because the financial side of
your organization wants to know how the expenses you make in training
the organization relate to the bottom line and thus the return for your
investment.
104 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Training Attribute Tool

Confidence in realizing training

Return on investment calculation 75.00%
impact (%)

Training impact: $37,501.88 Total training impact

Training cost: $12,275.00 Misc. cost savings $2.50
Return on investment: 206% Productivity improvement $50,000
Waste elimination $0.00
Scrap reduction $0.00
Training Costs Quality improvement $0.00
Instructor $1,000.00 Trainer
Materials $ 275.00 Books/handouts
Room/support $ 750.00 Logistics
Training materials $ 250.00 Total cost
Net cost (FTEs) $10,000.00 FTE total cost
Total # people being trained 25 # FTEs
Total training time 16 Hours
Average cost per FTE $ 25.00 Per hour
Total $12,275.00

Copyrighted 2009 Daniel Bloom and Associates, Inc. Created by Daniel T. Bloom and William Mazurek
Not for reproduction or distribution without authorization.

Figure 7.9 Training effectiveness tool—ROI calculations.

In completing the worksheet you are operating under the target that
the chances of your organization realizing the training impact target is
at the 75% level. This means you are reasonably sure that you will at
least in part have a positive impact on the organization with the training
programs to be provided. The ROI assessment, as other worksheets
in the tools, has formulas embedded to carry on further. If you look
at the preceding worksheet, you will see certain blocks shaded in a
different color. As we change the data in these boxes, it changes the
bottom line.
While I believe that the Training Effective Attribute Assessment Tool is
a unique evaluation of your training programs, I still am cognizant of the
fact that the delivery of training offerings is not free of costs. The third
worksheet provides you with the built-in capability to assess your training
costs. The process consists of four sets of data.

◾◾ Training Costs
In the training cost dashboard you will find a series of cells highlighted
in gray. These are the only fields you need to be concerned with.
 Case Studies ◾ 105

Begin by inputting the compensation for the trainer. It should be

based on the actual time in the classroom and not the total annual
compensation.
◾◾ Material Costs
This entry includes the total costs of the books and materials used in
the course of the training.
◾◾ Room/Support Costs
This entry represents the total costs for the room rental and the
audiovisual equipment costs.
◾◾ Net Cost (FTEs)
The net cost is calculated by multiplying the number of FTEs being
trained by the number of required training hours multiplied by the
hourly rate of the FTEs attending the training.

The total of these calculations is entered into the return on investment

data block under Training Costs.
The next data fields to be entered involve the impact of the training on
your organization. This begins with the assumption that you are offering
training with a 75% confidence rate in the ultimate impact on both the
participant and the organization.
From here you calculate five specific impact criteria as follows:

1. The first field is a place to enter the amounts of any miscellaneous

cost savings.
2. The second field is a calculation of the expected productivity
improvement resulting from the training programs you are
presenting.
3. One of the outcomes you are looking for is the elimination of
nonvalue added activities from the process within the organization. In
the third field, you enter the total savings from the elimination of the
waste.
4. The fourth field represents the value of the excess material that
is eliminated because the training has demonstrated how to save
materials.
5. The final field is that of placing a value on the quality improvement
resulting from the training.

The total of these impact costs multiplied by the training confidence

level is entered into the training impact field within the training
106 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Jan Feb March April May June July August Sept Oct Nov Dec
2009 improvement target 17.11% 34.21% 51.32% 68.43% 85.54% 102.64% 119.75% 136.86% 153.96% 171.07% 188.18% 205.29%
2009 actual improvement 0.00% 15.00% 15.00% 40.00% 40.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00% 55.00%

Training Improvement (Goal versus Actual)

4

2
2009 Actual Improvement
2009 Improvement Target
1

0
Jan Feb March April May June July August Sept Oct Nov Dec
Copyrighted 2009 Daniel Bloom and Associates, Inc. Created by Daniel T. Bloom and William Mazurek.

Figure 7.10 Training effectiveness tool—training analysis.

return on investment dashboard. The dashboard will take the training

impact and the training cost and calculate the return on investment
(Figure 7.10).

Training Assessment Tool—Training Improvement

In the discussions of Worksheet 1 and 2 in the TREEAT, I stated that the
results of your judgment calls would be carried forward for use in a future
worksheet. Worksheet 4, shown earlier, is that destination.
In the first worksheet, Training Assessment Tool—Corporate
Tactical Improvement areas, you were asked to determine the current
state versus the future state of your improvement efforts. You were
also asked to determine the business priority of each area for your
organization. This created some backdoor data, which is carried to
this worksheet.
In the preceding worksheet, you will see two lines of data. The first line
represents the anticipated improvement levels by month for a 12-month
period. It tells you that based on your answers, this is the expected
improvement for the year.
 Case Studies ◾ 107

In the second worksheet, the assessment levels you entered for the
expected delivery of the impact on training likewise calculates back data for
the improvement effort.
If you look at the preceding chart, you will see two lines in the
control chart. The first shows the results of the expected improvement
by month compared to the actual improvement impact over the same
time.
In my earlier example, the control chart shows that in this case the
training was not very effective. This provides management with evidence-
based information to make actual changes to the process.

Training Assessment Tool—Course Offerings

The final worksheet of the Training Effectiveness Attribute Assessment Tool
looks at the course offerings your organization has provided over the period
covered by the tool.

Column 1: The worksheet requests your organization to enter the titles

of the courses provided. It is recommended that you be specific
in entering the titles of the various course offerings that you have
provided.
Column 2: The worksheet asks you to provide the location where the
training was provided. The information inserted is your choice. You
could enter the city and state where the training was given. You could
distinguish between those courses that are provided at corporate
or in a division or off-site. Equally acceptable would be an entry
that describes the location in any manner that fits your organizational
needs.
Column 3: It consists of a drop-down menu that asks you for the manner
in which the training was delivered. The drop-down menu provides
you with five options:
– The first option is that of Instructor Led Training, which in the
traditional training programs is with your employees sitting in a
classroom with the program being facilitated by a live professional in
the role of the instructor.
– The second option is that of Web-Based Training, in which the
employee signs into his or her workstation or home computer and
108 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

initiates the training from a web program located at some other

training site. This is different from the next option in that it is all on
the World Wide Web.
– The third option is Computer-Based Training in which the employee
sits at his or her desk and takes a training program which resides on
your organization’s internal computer servers.
– The fourth option is Self-Study Training in which the employee
is provided a set of materials pertaining to the subject of the
training and works their way through the material at their
own pace.
– The fifth and final option is that of Blended Training in which the
method to convey the information utilizes a combination of the
previous methods to deliver the training.
Column 4: It requires you to enter the length of the training. Each and
every training option should contain an established expectation of how
long your organization expects the employee will need to complete the
training, expressed in the number of hours.
Column 5: It asks you to enter the total number of full-time employees
that are participating in the training.
Column 6: It takes the data entered into columns 4 and 5 and multiplies
the two numbers to arrive at the total instructional hours provided for
this particular course offering.

Project Conclusion
This project began seeking an answer to the question whether or not
training is first effective and then whether the cost to conduct training was
justified. What we discovered was that the majority of organizations on
a global level do not make the necessary steps to answer that question.
We have proposed a new model for determining the effectiveness of
the training efforts, which we believe is easier and more comprehensive
then the utilization of the standard evaluation methods such as Kilpatrick
or Phillips. Actual use of the model in a real-world environment will
be the only way we fully determine whether we are correct in our
assumptions.
 Case Studies ◾ 109

Case Study 2: Reduction in the Effective Time

to Hire
The Organization: A provider of complex and sophisticated
electromechanical devices with capabilities that include concept
development, industrial design, design and manufacturing
engineering, production, distribution, and field service. The
primary market classifications served are navigation and
exploration, defense and security, medical, and complex systems.
Headquartered in Schaumburg, Illinois, the business was
founded in 1900 and offers its customers development, design,
manufacturing, and distribution capabilities in a highly collaborative
environment.
The Problem: At their Brooksville, Florida, location, the organization
was witnessing an extended hiring process. The problem was that
this process was costing the organization monies in the way of
productivity, overtime, management being taken away from the
delivery of end products to customers, and costs associated with
agency usage.

Figures

7.11 Project charter

7.12 SIPOC
7.13 Fishbone diagram
7.14 Pick chart
7.15 Spartan Electronic pick items
7.16 Detailed activity sheet
7.17 Candidate activity sheet
7.18 Pareto chart
7.19 Sparton Electronics—HR process for filling open positions.
110 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Project Charter Statement

Black/Green
Quality Manager Business Unit / Location Brooksville
Belt Lead
April 15,
Process Owner HR Manager Project Start Date
2014
September
Conf. Call Info Target Completion Date
30, 2014
Champion Lean Master
Estimated
TBD
Opportunity

Element Description Team Charter

Define the
process in The recruiting process for salaried positions
1. Process which can yield improved performance in the time
opportunity to fill and cost per hire metrics.
exists.
This project seeks to reduce the average time
to fill for salaried positions from 111 days to
Describe the 71 days. This represents a 36% reduction,
project’s which brings the Brooksville facility in line
2. Project
purpose and with the corporate time to fill plan. In
Description
overall addition, we seek to reduce our cost-per-hire
objective. from 13.5% to 9%, representing a 33%
improvement also in line with the corporate
plan.
Define the part
of the process
In Scope – salary-exempt and non-exempt
that will be
positions
3. Project Scope investigated.
Out of Scope – hourly, temporary, and
Include both
contract labor positions
in-and out-of-
scope aspects.

Figure 7.11 Sparton Electronics project charter. (Continued )

 Case Studies ◾ 111

Define the Baseline Entitlement Goal

baseline, the
Time to 111 71
theoretical –36%
fill days days
target, and the
goal for Cost per
13.5% 33% 9%
improvement hire
on the primary
metrics: Rolled
4. Objective Throughput
Yield, Cost of
Poor Quality,
and Capacity /
Productivity.
Metrics may be
changed to
suit your
project.
Summarize the
project
description and
The opportunity exists to streamline the
objective in
recruiting process and improve our time-to-
specific terms.
fill metric. Our current average time to fill for
Include the Key
salaried positions is 111 days. This project
Process Output
5. Opportunity seeks to improve that time by 36%, thereby
Variables, their
Statement averaging 71 days to fill salaried positions. In
current
addition, we seek to improve the cost-per-
baseline, the
hire from 13.5% to 9%. The financial impact
target level for
will be determined in the measurement
improvement,
phase of the project.
and the
financial
impact.
Define the team
Lorri Kindberg–HR, Alex Guzzetta–Finance,
members
6. Team Kathy Ellison–HR, Eduardo Vives—Black Belt/
(number and
Members Customer, Paul Ranzo–
area
CI Lean Master, Lisa Haffey–HR.
represented).

Figure 7.11 Sparton Electronics project charter. (Continued )

112 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Define the final Our customers will receive improved level of

customer, service in quality and response time when we
describe their are a fully staffed workforce.
7. Benefit to most critical The hiring managers will have less downtime
External requirements of vacated positions, allowing for department
Customers: and the benefit responsibilities to maintain performance
they will see levels.
from this Peers of the position will have a shortened
project. period of time to carry the extra work load.
Key milestones /
8. Schedule Project Start 4/15/14
dates
Define scope of
“D” Completion 4/30/14
project
Measure
current state & “M” Completion 5/23/14
metrics
Analyze data,
“A” Completion 6/6/14
Gap analysis
“I” Completion
(delay in hiring
Implement
has pushed back 9/15/14
improvements
implementation
date)
Control new
process & “C” Completion 9/30/14
adjust
Project
9/30/14
Completion
Safety Review N/A
Define any
exceptional
anticipated
9. Support needs:
Required equipment,
hardware, trials,
access, travel,
training, etc.

Figure 7.11 Sparton Electronics project charter. (Continued)

 Case Studies ◾ 113

Follow-
Issue Action Responsible Due Date Comments Up Status
No Develop HR Staff 8/8/2014
structure proactive
or recruiting
dedicated strategy/
resource process
for
recruiting
Slow Agreed HR Staff
response upon
time from turnaround
managers time during
during initial
resume kickoff
review meeting
Improved
skills for
sourcing

Completed
Items
Where are Define and HR Staff 5/7/2014 Complete
the issues collect data
Sort data Quality 5/13/14 Complete
sets
Value stream Quality/HR 6/1/2014t More detail Complete
map
Collect more HR 6/30/2014 Complete
defined
data

Update HR 7/8/2014 Complete

value
stream map
Fishbone HR 7/8/2014 Complete
diagram

Figure 7.11 (Continued) Sparton Electronics project charter.

 114 ◾

SIPOC Diagram
Suppliers Input Process Output Customers
Hiring manager Job requisitions Start: New hire Corp human capital
Increased
organizational skill
Stakeholders Skills/knowledge Job posting levels Managers
Innovation into the
organization through
Employees Referrals Candidate screening new ideas Customers
Electronic job boards Candidates Interviews Onboarding Hiring managers
Recruiters Job requirements Background checks
Request to extend
Social media offer
Managers Offer letter
Professional
organizations
End:
Hiring metrics
The Field Guide to Achieving HR Excellence through Six Sigma

Reduced time to hire

Figure 7.12 Sparton Electronics SIPOC diagram.

 Case Studies ◾ 115

Management Man Machine Other

HR completing forms Slow Internet

for managers connection Facility location and
Initial unclear
desirability
direction of
requirements Scheduling time to
post jobs
Slow to respond to
resume review Limited skill using Talent
Network and other
Internet sourcing
Availability for interviews options

No scheduled time to
source candidates

Interviewers not
prepared for
interview
Why does it take so
long to fill a job
requisition?
Evaluation form not
effective measurement
No electronic recruitment tool
—manual process

No dedicated resource

E-mail box clutter

Assigned agency slow to

respond with candidate
pool

Method Material Measurement

Figure 7.13 Sparton Electronics—fishbone diagram.

BIG SMALL
payoff payoff

Work from home on recruiting Separate resumes into their own job folder
Set dedicated recruiting time Meet with Danielle—Tips and Tricks
Review agency performance Flag resume submissions mgr
t
Establish time limit for manager review Follow-up e-mail to mgr after 48 hours
o Establish time limit to send to agency
i
m
E p
A l
S e
Y m
e
n
t

Implement Possible
t
o Challenge Skill
i Create talent pool of candidates Referral bonus for external people
H m Go to agencies sooner
A p
Use Talent Network-Internet connection inhibits
R l
e Build network
D m
e Use social media
n Review outlook capabilities
t

Figure 7
 .14 Sparton Electronics—pick chart.
116 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Improvement items for consideration Impact Ease Cost Total

Application Wait Process

Separate resumes into their own job folder 3 1 1 5
Create candidate pool of good applicants 1 4 2 7
Use Talent Network 3 3 1 7
Go to agencies sooner 1 1 5 7
Work from home on recruiting 1 1 1 3
Set dedicated recruiting time 1 1 1 3
Build network 2 5 3 10
Review agency performance 1 3 1 5
Danielle Gusser—tips and tricks 3 1 2 6
Redevelop evaluation form—for future sourcing 3 1 1 5
Use social media 2 4 3 9
Referrals—referral bonus 0
0
Wait Manager Review 0
Set time limit and date send to manager 1 1 1 3
Follow up e-mail with managers after a day or two 3 2 1 6
Look at outlook capabilities for follow-up or for organizational purposes 4 3 2 9
Give time limit on Sparton sourcing—When do we go to agencies? 1 1 1 3
Flag as URGENT or HIGH IMPORTANCE 3 1 1 5

Figure 7.15 Sparton Electronics—pick improvement items.

Sparton Electronics Detailed Activity Sheet

Action Time Requirement

Post job internal 10
Post job external 15
Source resumes 2 Each
Forward to Manager for Review
Prescreen interview 30
Schedule phone interview with manager 2
Schedule on-site interview 10
E-mail candidate confirmation 5
Airline reservations 45
Interview 90
Plant tour 30
Debrief meeting 15

Figure 7.16 Sparton Electronics—hiring detailed activities. (Continued)

 Case Studies ◾ 117

Action Time Requirement

RTEO 5
Contact candidate with offer 15
Prepare offer letter 3
E-mail candidate offer 2
Offer Letter Received
Schedule drug screen 15
Background check request 10
Pull results 2
Assign ID#/e-mail manager and trainer 1
New hire notification 1
Candidate Starts
Close job folder
Record affirmative action data

Figure 7.16 (Continued) Sparton Electronics—hiring detailed activities.

Time Sparton Electronics Candidate Activity Sheet

Candidate Date/Time to Hiring Response Received

Manager
Candidate 1 6/20/14 11:38 a.m. 6/27/14 6:38 p.m.
Candidate 2 6/23/14 11:46 a.m. 6/27/14 6:38 p.m.
Candidate 3 6/20/14 8:55 a.m.
Candidate 4 6/18/14 8:38 a.m. 6/27/14 6:38 p.m.
Candidate 5 6/16/14 8:38 a.m. 6/27/14 6:38 p.m.
Candidate 6 6/12/14 5:36 p.m. 6/27/14 6:38 p.m.
Candidate 7 6/12/14 10:39 a.m. 6/27/14 6:38 p.m.

Figure 7.17 Sparton Electronics—candidate activity sheet.

 118 ◾

Days
Posting (Ext or Int) to physical interview 56.6
Posting (Ext or Int) to phone interview 54.4
Interview to RTEO 32.9
Internal posting to internal interview 17.7
Offer letter to start date 15.7 Days
Phone interview to physical interview 10 60
Open/updated to posting 4.7 Days
RTEO to offer letter 1.7
Offer letter to accept/reject 1.6

40

20
The Field Guide to Achieving HR Excellence through Six Sigma

0
Posting (Ext or Int) to Internal posting to Open/updated
physical interview internal interview to posting

Figure 7.18 Sparton Electronics—Pareto chart.

 CSM HR Process for Recruiting
Hiring Replacement
Process starts Corporate TAKT
Automatically when (71-day target)
occurs? notice is given?

A10 A20 A30 A40 A50

Job requisition received Qualified candidates Screening of candidates
Resume
in HR Job is posted presented to hiring by hiring manager
collections/sourcing
(signature) Mgr (resumes)
HR/GM 2 Days HR 4 Days HR Ongoing HR ??? Hiring Mgr ???

A60 A70 A80 A90 A100

Phone interview In–plant interviews

Phone interview hiring Scheduling of Travel arrangement for
screening (panel and
manager interviews (in person) out of area candidates
hiring manager)
HR ??? Hiring Mgr ??? HR ??? HR ??? HR 90 Days

Cannot control
timing here.
Position has been
filled.
A110 A120 A130 A140

Request to extend offer Contact candidate Relocation specifics

Send offer letter
(form) (phone) (if needed)
Case Studies

HR 1 Day HR 1 Day HR 1 Day HR N/A

◾

Figure 7.19 Sparton Electronics—HR process for filling open positions.

119
120 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Project Conclusion
After analyzing the data collected, items from the pick list were implemented
and a new process flow chart was developed. During that time, the time-
to-fill metric was changed to stop the clock at the signing of the offer letter
rather than the actual start date. Taking into consideration the reduced target
time to fill, from 71 to 59 days, 59 days became the new goal. To effectively
measure their improvement, the team adjusted the original actual time to fill
from 111 to 97 days.
In FY2014, the company filled 12 salaried positions with an average time
to fill at 97 days (based on the adjusted metric) and an average cost of $5427
per hire. Since implementation of the new process and the writing of this
document, the company has filled eight salaried positions. The result is an
average time to fill of 35 days and average cost of hire at $1744. Respectively,
a 64% improvement in time to fill and a 68% decrease in the average cost
per hire.
 Case Studies ◾ 121

Case Study 3: Streamline Operations Staffing Process

The Organization: This case study was provided by a manufacturing/
development company located in the United States (they did not want
their name mentioned); the end product was considered within the
industrial sector—total employment at this location, as in the 100–300
total employee classification. The company produces sophisticated
electromechanical medical devices with internal capabilities that include
design/development of new products and manufacturing distribution,
and field service support.
The Problem: Currently, it takes up to 75 days to hire a professional
(nonexempt) employee and up to 30 days to hire an hourly employee
after the job requisition has been approved. This is causing major
irruptions to the various supporting groups within the company as well
as eroding customer satisfaction (Figures 7.20 through 7.22).
The Goal: To improve the current hiring process by 50%.

Figures

7.20 Project charter

7.21 Current state map
7.22 Future state map
122 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Kaizen Event #2223 –

Stream Line Operations Staffing Process
To:
Name Role/Function Name Role/Function
Tim McGonnal Team Leader
Gozie Mars HPWT Member
Thomas Thacker HPWT Member
Joann Zimmerman HPWT Member
Shannon Ortega On Call

From: CI

Subject: This kaizen will define and stream line current Operations Staffing Process.

Event scope: The scopes of the event are current and future state maps including opportunities for improvement
Operations Staffing.

Boundary(s): No Software changes (ATS), no changes to the Excel spreadsheets

This memo is to confirm that the above individuals have been selected to participate in this event. Please ensure that
required prep work is completed by the due date and that all participants have adequate coverage to ensure event
attendance. We are committed to keeping up with our daily agenda and will adjust working hours according to our
progress on a daily basis. As a result, poor event attendance or incomplete prep work can result in event
postponement or late working days.

Goals Deliverables / Metrics

• Future State of
- Hiring/Release process (Kelly Services & Permanent)
Define and streamline operations staffing - RRP
processes - Job Postings
- Employee Transfer
- Shift Change List
Reduce the current staffing process by 50%
- Operation Staffing Sheet
- Badges/Security

Monday Tuesday Wednesday Thursday Friday

9-04-12 09-07-12
Time 10:00am – 4:00pm As needed As needed 10:00am – 4:00pm
Activity BPK BPK
Bldg 3 Conf. Bldg 3 Conf.
Location
Room 3 Room 3
Mgmt Update TBD TBD

I am looking forward to working with you. If you have any questions, please feel free to contact me at xxx-xxx-xxxx

Best Regards

CI Team Facilitator

Manager
Approval:

Figure 7.20 Medical device manufacturer—project charter.

TIGER TEAM GOAL

◾◾ To visually map out the current internal hiring process.
◾◾ To develop an improved process map for the internal hiring process
that minimizes cycle time, eliminates wastes, and improves operational
efficiency through better feedback, communication, and timeliness.
 Case Studies ◾ 123

TEAM AGENDA
◾◾ Define the current process
◾◾ Organizational overview
– Identify all departments involved
– Identify functional handoffs
◾◾ Process flow analysis
– Detail each process step
– Focus on value added, nonvalue added, necessary nonvalue
added, and delay operations
◾◾ Development new process map and identify open issues /
­opportunities and roll-out plans

OPPORTUNITIES FOR IMPROVEMENT

1. Job description / posting forms are different. Can we replace with
one common job description to do both functions?
a. FDA requirements
b. Can it be electronic based
2. Can we standardize the job posting format with the job description
format?
3. Posting / internal application forms need to be revised (i.e., to high-
light the need for the applicant that he or she must meet the minimal
“Basic” requirements for the position or you will not be considered).
4. Posting / internal application—add an note > that job consideration
and evaluation will occur only after the close date.
5. What information do we need to capture on the internal application
log (do we need gender, race, military history … etc.) and if so, can
this information be included on the job application form that is filled
out by the candidate?
6. Add the coach’s name on the internal application—this will clarify
who is responsible for the candidate.
7. Can we implement a preaddressed notification feedback form to
indicate to the candidate they are in the pool and being ­considered
… or … they have been rejected?
8. Add a check-box on the application form that the candidate has
been notified of job status. No notification > HR will notify before
change of status form is put into the system.
124 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

9. Can we implement a maximum time (e.g., 3 weeks) an employee

can be frozen before he or she is transferred into the new job
responsibility?

TEAM ISSUES
1. To develop an electronic database (company-wide) to monitor
individual performance issues / write-ups that are below minimal
performance.
2. Extended job openings—how do we ensure all employees are noti-
fied of their status (being rejected or still be considered) when
excessive time is required? What is the poka-yoke solution to ensure
feedback to HR and the candidate?
3. Add a signature line on the job posting form.

Process Map: Direct Labor Hiring Process

Interview
HPWT w/HPWT

Date stamp No Schedule No File

Application Math test thank you
HR enter to thank you testing and
card
received database card interview Attitude Solder Connie makes
test test No verbal offer
File Offer

Review Result Interview Wrap-up Dale tells

Dale given to
sort w/Dale w/team Connie
Dale

Temp Test sent

Outside to be
service evaluated
Service
Day 1 Day 2 Day 3 Day 4

Day 11 Day 10 Days 5–9

Time Line

Update
database Assemble
W-4 sent Enter package
to payroll Update
database Sign Schedule
database
Ensure all Chg. Of paperwork drug and
HR paperwork Complete Start Review (applicant) physical
File status
complete entered I-9 work results

Offer letter
HR Spec. and chg. of
status

Results Start
background background
check check (fax)
Outside
Service Results Perform
drug and drug and
physical physical

Figure 7.21 Medical device manufacturer—nonexempt employee process map.

 HR New Hire Process for Exempt and Non-exempt Employees (draft3.18.2011)
If internal Accepts job Paperwork
put in binin offer drug test

Applicant
HR Dept.
Clarification Make job
Approved ATS HR involved
offer

HR
job req.w/ ? to interview
Fill out job

CGHRM
Review signature process Compensation
req form review

Post Sort Review yes

Brief review
job on into ATS Candidate Fill out HRA is Schedule for
Create of candidate
If okay posting job and meets candidate notified w/a new hire
job folder qualifications
HM takes board files e-mail req’mts log COS orientation
to HM Code ATS
form to ?

HR
5 day waiting no Send COS to

HRA
VP for Pass off for
posting period Time in therese
signature Post-card
Notify job written
and/or Copy Send e-mail
recruiter warnings
of search job req’mts e-mail applications post-card to
rejection and log applicants
(Exempt)

Appt. w/HR Pick up copy Select most Fill out log

senior and Discuss
Start and fill out of job folder code (ATS)
compensation

Hiring
job req. Begin interviewing qualified return folder

Manager
candidate with HR
candidates to HRA
Notification Review ATS
received of and e-mail
job posting to HM

Recruiter
(external)
Appt. w/HR Review ATS Code ATS
Start and fill out and e-mail
job req. to

Recruiter
(internal)
HM

VP reviews

VP
and signs

Review Job posted

Web
posting on Intranet

posting
Review job Job posted
posting Send COS to
ATS external

HR JB
Review
therese
Case Studies

Review job Compensation

HR
posting analysis

Analysis
◾
125

Figure 7.22 Medical device manufacturer—professional employee process map.

126 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

ACTION ITEMS
1. Approval of the fixed effective date (2–3 weeks) by senior
management.
2. Clean up DOPs and present the process map to HR (week of 5/7)
3. Presentation to a sample of hiring managers—feedback of the
steps—postvalidations.
4. Update handbook to reflect changes.
5. Training and roll out to all employees and managers.
6. Revise all forms
a. Candidate log form
b. Internal application
c. Job postings
d. Create postcard notification form

Project Conclusion
The goal of the event was to establish the current condition … walk the
current process with adequate detail of understanding to frame the current
state condition (number of process steps, inputs and outputs, standard work,
and instructions and transactions/decision steps along the way).
The Kaizen event was structured using two 4-hour sessions. During the
first session of the Kaizen event, the team performed a deep dive into the
current state process flow for the nonexempt hiring process as well as the
hourly hiring process. The current state for each process flow was outlined
using “functional swim lanes” (departmental hand-offs between groups) for
each stakeholder group alone with responsibilities/activities/transactions and
approvals). During this process, we discussed issues (not solutions) with the
current flow of information, that is, gaps, bottlenecks, and opportunities for
improvement. The following day, we developed the future state process map
highlighting the improved process flow. The improvement goals were to
achieve the 50% reduction in time to hire.
Results—The nonexempt process went from 75 to 19 days (75%
improvement) and the hourly process from 30 to 20 days (33%
improvement). The team development action items and a detailed
implementation plan along with a 90-day control plan to ensure we truly
achieved the goal. After 90 days, the nonexempt improvement was 63% and
the hourly improvement was 41%. The project was successfully closed out.
 Case Studies ◾ 127

Case Study 4: Invoices on Hold

The Organization: This case study was provided by a service provider/
distribution of final products in the United States (they did not want
their name mentioned); the end product is various consumer-based
e-commerce products—total employment at this location is 350 (three-
shift operation) total employees. The company distributes products
throughout the United States using US mail, UPS, and FedEx.
The Goal: This Kaizen project was to improve company invoices on hold
by 50% (internal error reduction, faster response time).

This company buys and distributes products—when an invoice error occurs

it typically results in a supplier late payments—internal/external influences
impact the error—this Kaizen event will identify and current errors thus
improving supplier satisfaction.

Figures

7.23 Project overview

7.24 Invoice pipe chart
7.25 Metric trend
7.26 Condensed process flow map
7.27 Invoice hold
7.28 Invoice hold breakdown
7.29 Invoice price vs. PO
7.30 Invoice breakdown, invoice vs. PO
7.31 Invoice brainstorming
7.32 Improvement plan
7.33 Improvement plan wrong price
128 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

DMA I C
Project Overview
• Problem Statement: Based on 8 months of data from January
2015, the projected number of invoices that will be put on hold annually
due to price, quantity received or quantity ordered discrepancies is
approximately 2,916 out of 78,286 (projected) invoices (~3.7%). These
“invoices on hold” will require about 500 hours of rework annually.
• Project Scope: Any invoice put on hold for price, quantity received,
or quantity ordered holds.
• Primary Metric: The number of invoices put on hold every month
for price, quantity received, or quantity ordered issues.
• Project Objective: Reduce the number of invoices put on hold for
price, quantity received, or quantity ordered issues by at least 50%.
• Realized Benefits: Reduce labor time and improve the supply chain
by avoiding credit holds.

Figure 7.23 Medical device manufacturer—project overview.

DMA I C
Summary of Invoice Holds

12%

Qty billed > Qty rec’d

25% Invoice price > PO price
63% Qty billed > Qty ord’d

• Summarized data from 2015 match hold detail reports

Figure 7.24 Medical device manufacturer—invoice pie chart.

DMA I C
Primary Metric Trend
400
Qty billed > Qty rec’d
350 Invoice price > P.O. price
Number of invoices on hold

Qty billed > Qty ord’d

300
Combined
250

200

150

100

50

0
Feb Apr May Jun Jul Aug Sep Oct Nov
Month

• Summarized data from 2015 match hold detail reports

Figure 7.25 Medical device manufacturer—metric trend.

 Case Studies ◾ 129

DMA I C
Condensed Process Flow Map

Parts PO sent and Goods shipped, Accounting

RI and MRB Invoices Supplier
needed confirmed warehouse processes
inspect matched paid
receives invoice

Possible X’s

-Wrong $ on discrete PO
-Wrong $ on Possible X’s
blanket release
-No pack list
-$ changes after PO
-Pack list incorrect
sent
-Items not received in
-Supplier does not
Oracle Possible X’s
confirm $, QTY,
-Data entry error for
due date
traveler -RI data entry error
-Buyer does not
-Data entry error to for QTY
review confirmation
make extra labels -RI does not accept
-Received on wrong into Oracle after
line inspection
-Receiving does not
reaccept from
RI

Figure 7.26 Medical device manufacturer—process flow map.

D M A I C
HOLD: Qty Billed > Qty Rec’d

18%

QTY rec’d = 0
QTY rec’d > 0
82%

• Summarized data from 2015 match hold detail reports

Figure 7.27 Medical device manufacturer—invoice hold.

130 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

DMA I C
BreakDown of Holds: Qty Rec’d = 0

16%
Staples items not rec'd
31% Should be 2-way match instead
of 3-way match
27% Should have been rec'd but
were not
27% Other

• Data from representative sample of 104 holds

Figure 7.28 Medical device manufacturer—invoice hold breakdown.

DMA I C
HOLD: Invoice Price > PO Price
2%

Wrong PO price
36%
Transitional pricing
62%
Wrong invoice price

• Summarized data from 2012 match hold detail reports

Figure 7.29 Medical device manufacturer—invoice price versus PO.

DMA I C
Breakdown: Invoice Price > PO Price

34%
Nonblanket items
Blanket items
66%

• Summarized data from 2012 match hold detail reports

Figure 7.30 Medical device manufacturer—breakdown invoice versus PO.

 DMA I C Brainstorming on Improvement Option
Verified Critical X’s (inputs) Ratings

Item Not
Wrong Received
Weighted Improvement PO in Invoice Holds
Matrix Price Oracle

Impact Rating
Risk Rating
Cost Rating
Significance Rating of Critical X 4 6
Impact Rating Impact Rating
Overall
Responsible Potential Improvements of Potential of Potential Comments
Improvement Improvement Rating
Default suppliers that do not Will be implemented by
provide physical goods to 2-way 7 28 6 7 1176
Purchasing matching on POs 12/14/2015
Add “confirmed” to standard PO
headers when confirmed. Run 6 24 7 7 1176 Continuous starting
weekly report and follow up on 1/21/2015
Purchasing unconfirmed POs
Retrain CAs and buyers when to 2 12 7 7 588 Will be implemented by
Purchasing use 2-way match 12/14/2015

Retrain receiving personnel on

which deliveries to receive in 2 12 7 7 588 Completed
Receiving Oracle
Retrain mailroom to check
padded envelopes, etc. for POs 2 12 7 7 588 Completed
Receiving and receive in Oracle
Retrain requisitioners to Will be implemented by
receive Staples orders as they 2 12 7 7 588
Purchasing come in 12/14/2015
Buyers and CAs review match hold 1 1 10 7 7 490 Continuous starting
Purchasing report weekly 1/21/2015
Case Studies
◾

Figure 7.31 Medical device manufacturer—invoice brainstorming.

131
132 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

DMA I C Improvement Plan for Qty Rec’d = 0

Invoice Holds Implementation Plan

DEFAULT SUPPLIER SITE THAT DO NOT PROVIDE PHYSICAL GOODS TO 2-WAY MATCH

Individual Estimated
Step Step Description Date Completed Comments
Responsible Comp. Date

Update puchasing supplier

add/change form (SI-000-131 2E) so
1 Jo Dextlar This action item was cancelled
new suppliers are defaulted to the
correct matching type on POs

All buyers and

Buyers and CAs determine suppliers
2 commodity 12/7/2014 Completed (12/6/2014) This action item was cancelled
that never provide physical goods
analysts

Change supplier sites to default to 2-

3 way match in Oracle based on lists Will Smith 12/14/2014 Completed (12/21/2014) This action item was cancelled
provide by buyers and CAs

(a)

DMA I C Improvement Plan for Qty Rec’d = 0

RE-TRAIN RECEIVING PERSONNEL TO OPEN EVERY PACKAGE AND LOOK FOR A P.O. TO BE
RECEIVED IN ORACLE
Individual Estimated
Step Step Description Date Completed Comments
Responsible Comp. Date

1 Update Receiving SI JO CARBON 12/7/2015 Completed (12/5/2014) DI-000-156 BB

RE-TRAIN RECEIVING
PERSONNEL TO OPEN EVERY
2 PACKAGE AND LOOK FOR A JO CARBON 12/7/2015 Completed (12/5/2014)
P.O. TO BE RECEIVED
IN ORACLE
(b)

RE-TRAIN MAILROOM PERSONNEL TO OPEN EVERY PACKAGE AND LOOK FOR A P.O. TO BE
RECEIVED IN ORACLE
Individual Estimated
Step Step Description Date Completed Comments
Responsible Comp. Date
1 Update Mailroom DI JO CARBON 12/7/2014 Completed (12/5/2015) DI-000-152 AB

RE-TRAIN MAILROOM
PERSONNEL TO OPEN EVERY
2 PACKAGE AND LOOK FOR JO CARBON 12/7/2014 Completed (12/5/2015)
A P.O. TO BE
RECEIVED IN ORACLE
(c)

Figure 7.32 Medical device manufacturer—improvement plan (quantity received).

 Case Studies ◾ 133

DMA I C Improvement Plan for Wrong PO Price

ADD “CONFIRMED” TO STANDARD POs HEADERS WHEN CONFIMRED. RUN WEEKLY REPORT AND
FOLLOW UP ON UNCONFIRMED POs
Individual Estimated
Step Step Description Date Completed Comments
Responsible Comp. Date
Call meeting to discuss new
1 Mike Boyddy 12/14/2014 Completed (12/21/2014)
procedure with buyers and CAs

Create SIs (SI-000-507 Rev AA, Both SIs submitted and ECO
2 DI-000-067 Rev AJ) to specify adding Joe James 2/22/2015 should be completed by
“Confirmed” in discreet PO header 2/26/2013

Buyers and CAs individually run

All buyers and Continuous
weekly report of their unconfirmed Continuous starting
3 commodity starting
POs and follow up with suppliers to 1/21/2015
analysts 1/21/2015
confirm

BUYERS & CAs REVIEW MATCH HOLD REPORT WEEKLY

Individual Estimated
Step Step Description Date Completed Comments
Responsible Comp. Date

Purchasing Admin runs match hold

Continuous
detail report weekly, converts using Continuous starting
1 Ken Jason starting
Monarch, filters results, and sends 1/21/2015
1/21/2015
to buyers/CAs

All buyers and Continuous

Continuous starting
2 Buyers/CAs resolve match holds commodity starting
1/21/2015
analysts 1/21/2015

Figure 7.33 Medical device manufacturer—improvement plan (wrong price).

Project Conclusion
The goal of the event was to improve supplier customer satisfaction by
eliminating invoicing errors (expectation was achieving a 50% or greater
improvement).
The first day we reviewed the project scope and goals/boundaries as
management defined. We next detailed the current process (purchasing-to-
supplier to receiving-to-stocking) via standard mapping techniques (number
of process steps and hand-offs, inputs and outputs, standard work, and
instructions and transactions/decision steps along the way).
The Kaizen project was structured over several weeks utilizing
subject experts focusing on internal as well as external processes. The
Kaizen project started by performing a deep dive into the current state
process flow to better understand all touch labor points and transactions.
We also verified computer systems (validation of the data set [price/unit of
134 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

measure, etc.]). The current state for each process flow was outlined using
“functional swim lanes” (departmental hand-offs between internal as well
as external groups) for each stakeholder group along with responsibilities/
activities/transactions and approvals. During this process, we brainstormed
issues and gaps (causation/root cause of the problem) with the current
flow of information to identify bottlenecks/error points and opportunities
for improvement. Next, we developed the future state process map
highlighting the improved process flow along with action items to be
resolved. Variation reduction—during the measuring system analysis
(MSA) phase we confirmed the data collection, conducted a formal MSA
and established data collection forms used in the analysis phase—all
calculations were reviewed and certified by our internal master black belt.
The improvement goal was to achieve the 50% reduction in invoice errors.
Results—The improved process took several months to implement/
resolve. The Black Belt team eliminated 22 hand-offs and reduced
invoice errors by 87%. The team development action items and a detailed
implementation plan along with a 120-day control plan (measurements)
ensured we truly achieved the goal. After 90 days, the improvement was
confirmed to be 93%. The project was successfully closed out.
 Case Studies ◾ 135

Case Study 5: Documentation Errors

The Organization: This case study was provided by a service
organization company located in the United States (they did not want
their name mentioned); the end product was considered within the
hospital sector Medical Device Manufacturer—total employment at this
location is ≥1,000 employees.
The Problem: Currently, the documentation area (close out active work
orders) is not following standard work and is not completing all the
necessary paperwork transactions necessary to close out a work packet.
This is causing excessive rework and 100% inspection to eliminate the
problem.
The Goal: To reduce documentation errors by 75%.

Figures

7.34 Project charter

7.35 Error process map
7.36a, b Documentation error Pareto charts
7.37 Process map (fishbone diagram)
7.38  Brainstorming improvement opportunities matrix (critical X’s)
7.39 Data collection plan
7.40 MSA
136 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Six Sigma Project Charter

Project Title: Submitted by :
Device History Record (DHR) Errors Reduction Mannie LaNieman
Business Unit/Location: Date Submitted:
Northeast Operational Unit (NOU) 06/11/2014

Problem Statement (Situation / issue / need for change; opportunity/magnitude; facts/figures/dates):

From January–March 2015, there were over 105 product Device History Record errors per month, inspected
for at 4 points in the process This in volves Quality and Manufacturing resources to resolve these issues, and
results in delays in job completions. This project aims to discover and prevent the root cause(s) of these
errors.

Linkage to Business (Identify linkage to business plan / departmental objective/strategic go)

By improving the quality of sterile DHRs, we are reducing the resources required to resolve errors, preventing
delays in job completions, and most importantly, reducing regulatory risk.

Defect fination (Describe, in measurable terms, what constitutes a defect; this is the basis for the primary metric;
no mention of frequency):
Of the 4 points in the process, only one of them has a metric: NCRs initiated by QM DHR Technicians (level 4).
All 4 points in the process inspect for DHR compliance to GMP/QSR and various IP per xxx xxx for,
all production departments and QM others TBD.

Primary metric (Describe project metric and source of data; consistent with problem statement and defect defination;
time-series based)
Primary–monthly number of DHR errors detected at level 3–baseline must be established because errors are
currently under–reported.
Consequential Metric–Monthly # of sterile DHR errors detected at level 4 via NCR report.
Sources : High level PFM of DHR review for sterile DHR and NCR M277 query for errors found at QM DHR technician from May 11 through May 12

Present Baseline Goal/Objective

(Frequency of the problem; indicate average per day, (How much of an improvement does this project
week or month; consistent with Primary Metric) aim to make; consistent with Baseline)
Primary metric - Baseline TBD (greater than 84/mo) 1. Improve primary metric by 75% through
Consequential metric - 21 monthly avg. at level 4 prevention or detection earlier in the process.
2. NCR rate at level 4 cannot exceed the baseline.
Project Scope (Where is the focus):
Process bookends: From error generation during product manufacturing through level 4 inspection.
1- Reduce # of DHR errors (new metric) at level 3 by 75% without increasing the number of errors found at
level 4.
2 - Since each subsequent level finds such errors. there is a measurment system problem in that they are not
consistently detecting these errors. Improve reproducibility betweeen level 2&3 to acceptable level.

Please note: Other activities are done by production DHR reviewer and cannot eliminate all those activities
Impact ($) Estimated Financial Benefit Project Benifits

Low (<$40K) (Rough estimate at the beginning of the project) ↓ Defects ↑ Efficiency
Medium (<$40 - 100K) (Describe) ↓ Inventory ↓ Labour
High (>$100K) Total $: 70K/yr FTE hourly + DHR ↓ Cycle time ↓ Expense
correction + additional resources TBD ↑ Service (cust) ↓ Capital
↑ Sales ↑ Safety

Figure 7.34 Medical device manufacturer—project charter.

 Case Studies ◾ 137

DMA I C Process Flow Map

Sterile Product Factories—Implants, Specialty, Shaver Blades, Grinding DHR Review Process Flow Map
Level 1-Operator and machining
Certified Operatorsfill – out and
inspect DHR
Job completed
First Level
Finish
Implants, Specialty FG Cell
Factory Grinding, Shavers,

Cell does cell processes discrete DHR Inspection

Job and processing
area clearance Each operator
cell operators perform discrete
on previous New Job reviews prior
sign-offs Jobs/footie
operators

job-and final Correct

per PT and first label steps and and goes to
label
reconcilations determines if Certified
reconciliation
completed operator
properly inspection
(Product and
Cell/water spider Pulls job DHR)
from staging Rework info/step

Warehouse/water spider
picks next discrete job/
footie (notes on PL qty
Warehouse

and lot # as required)

and dellvers to saging

First picklist inspection

Level 2-Final Certified Operators
fill out and inspect DHR

Second Level DHR Inspection

PT step 700 (Bio only320) Certified
Certified Cell Operator

Implants, Specialty FG
—Grinding, Shavers,

operator reviews
Factory cell Hold DHR prior steps and
Shelf determines if
Rework info/step via hip completed properly
tag in Spec: NCR-
In Implants, Shaver - signs
Blades, Grinding off PT

Level 3-DHR Reviewers

Correctly completed fillout and inspect DHR
Third Level DHR Inspection
PT Step 710
DHR
Production staged
Production DHR

DHR Correctly Move for

Notify AO/ Rework info/step Reviewer reviews completed and Load Prod DHR
Reviewer

cell DHR prior steps and Com- Activ- Ships to pickup

water spider determines if plete ities Sterillzer by
completed properly QA
-signs off PT-if
Other factory/ D or requried
C as Note on takt board-occurrences only
source of error

Fourth Level DHR Inspection

QA DHR
technician
Technician
DHR QA

Rework info/step reviews DHR Correctly completed Files sterile

Write
prior steps
NCR DHR
and determines
if completed
Consequential metric— properly Level 4-QM DHR Reviewers
13 months of data fill out and inspect DHR
with identified errors

Figure 7.35 Medical device manufacturer—documentation error process map.

138 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

DMA I C Pareto of Opportunities

Pareto Chart of Defect Doc/Item
300
100
250
80
200

Percent
Count

60
150

40
100

50 20

0 0
g er
Defect doc/item PT el in PL IR CR ed R
th
ab list N id DH
L
ad Vo O
Lo
Count 146 48 22 13 9 9 6 3 12
Percent 54.5 17.9 8.2 4.9 3.4 3.4 2.2 1.1 4.5
Cum % 54.5 72.4 80.6 85.4 88.8 92.2 94.4 95.5 100.0
(a)

Figure 7.36a Medical device manufacturer—documentation error Pareto chart of

defect doc/item.

D M A I C Pareto of Opportunities-By Factory

of Sterile DHR (no changes)
Pareto Chart of Factory
300

100
250

80
200
Percent
Count

60
150

100 40

50 20
Shaver
Implants Specialty Grinding
Blades
0 0
Factory 22 27 26 24 Other
Count 99 64 50 47 4
Percent 37.5 24.2 18.9 17.8 1.5
Cum % 37.5 61.7 80.7 98.5 100.0
(b)

Figure 7.36b Medical device manufacturer—documentation error Pareto chart of

factory.
 Case Studies ◾ 139

DMA I C Possible Causes Fishbone Diagram

Machines Measurement Method

100% manual inspection

No feedback on Conflicting requirements

DHR errors between QE and factories

Training confusing—
example showed SB

Level 4 metric found

versus source Level 2 inspect product more
and DHR less

Level 3 inspect product less

and DHR more

No standard work for

level 2 and level 3

Documentation
defects

Noisy/shopfloor
Different
interruptions
format

Level 3 from
Rushing to meet load day specialty
shipment—
levels 2 and 3 Lack of standard work/
PT
Add/remove items to Level 2—CO rotate
load at last moment

Levels 1 and 2 were

permanent versus
temp

Environment Material Manpower (personnel)

Figure 7.37 Medical device manufacturer—fishbone diagram.

 D M A I C Identification of Critical Xs

Causes Critical X Potential Root Cause Factory(s)/Level(s) Affected

Human Error -Rushing -to make load -Load Day (Removal / Add
Environ. X of Job(s) / DHR) Factory Level 2 & 3
Environ. Shop floor environ. causes inspection errors Factory Level 2
Material PT-lack of Std work for format Factory Level 2
Material X PT-confusing format for count, etc Factory Level 3
Material X PT-no visual triggers for insp. Factory Level 3
Personnel Level 3 DHR Reviewers from Specialty Factory Level 3
Personnel Level 2 -CO rotate Factory Level 3
Personnel Level 1-permanent vs. temp (errors generated) Factory Level 2 & 3, 4
PT in Implants had reversed label requested sequence vs.
Method X reconciliation Factory Level 1, 2, 3, 4, 5, 6, 7
Method X 100% Manual Inspection Factory Level 2 & 3
Conflicting Requirements between QE and factories for Count on
Method X PT Factory Level 2 & 3

Method X Training Confusing -example showed SB factory DHR Factory Level 1, 2, 3, 4, 5, 6, 7

Method Level 2 Inspect Product More And DHR Less Factory Level 1, 2, 3, 4, 5, 6, 7
Method Level 3 Inspect Product Less And DHR more Factory Level 1, 2, 3, 4, 5, 6, 7
Method X No DHR review Std work for level 3 Factory Level 1, 2, 3, 4, 5, 6, 7
Method X No DHR review Std work for level 2 Factory Level 1, 2, 3, 4, 5, 6, 7
Method X Error with NCR-level 3 inspection uncertainty. Factory Level 1, 2, 3, 4, 5, 6, 7
Measurement X No Specific Feed Back On DHR Errors Factory Level 2 & 3
Measurement X Level 4 Metric Found vs. Source Factory Level 1, 2
In-process audit of DHR review by CO & Level 3 process vs. auditing
140 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

Measurement X of insp. results Factory Level 1

Figure 7.38 Medical device manufacturer—brainstorming improvement opportunities matrix (critical Xs) ID.
 Case Studies ◾ 141

DMA I C Data Collection Plan and Results

What to Measure (Possible x) How to Collect Data Results

Level 3 errors caught via checklist Special study DPMO established

NCR data at level 4 Reporting services query Secondary metric

Results of format changes Via dates submitted Improvement

Figure 7.39 Medical device manufacturer—data collection plan.

DMA I C Results for MSA1 versus MSA2

• DHRs with and without errors were given to two operators twice
for each MSA.
• In MSA1, no checklist was used. In MSA2, checklist was used.

Each Appraiser vs Standard

MSA1
Assessment Agreement
Appraiser # Inspected # Matched Percent 95% CI
1 32 25 78.13 (60.03, 90.72)
#Y / N is Op says 2 32 26 81.25 (63.56, 92.79)
Y and s/b N # Matched: Appraiser’s assessment across trials agrees with the known standard.
Assessment Disagreement Mixed is when Op caught
Appraiser # Y / N Percent # N / Y Percent # Mixed Percent correctly 1 time and
1 1 5.00 0 0.00 6 18.75 missed 2nd time vs std
#N /Y is Op says 2 3 15.00 1 8.33 2 6.25
N and s/b Y MSA 2
Assessment Agreement
Appraiser # Inspected # Matched Percent 95% CI
2 36 34 94.44 (81.34, 99.32)
1 36 27 775.00 (57.80, 87.88)
# Matched: Appraiser’s assessment across trials agrees with the known standard.
Assessment Disagreement 2nd MSA w/Checklist
Appraiser # Y / N Percent # N / Y Percent # Mixed Percent did reduce missing
2 1 4.00 0 0.00 1 2.78
1 3 12.00 1 9.09 5 13.89 error vs std

Conclusion: Although not significantly different, the checklist

does help reduce missing a DHR error when there is one.

Figure 7.40 Medical device manufacturer—results of MSA1 versus MSA2.

Project Conclusion
The goal of the event was eliminating documentation errors (expectation
was achieving a 75% or greater improvement).

Day 1—Reviewed the project scope and goals/boundaries as management

defined. We next detailed the current process (purchasing to supplier
to receiving to stocking) via standard mapping techniques (number of
142 ◾ The Field Guide to Achieving HR Excellence through Six Sigma

process steps and hand-offs, inputs and outputs, standard work, and
instructions and transactions/decision steps along the way).
Day 2—Kaizen event was structured over 5 days, focusing on internal
processes errors. The Kaizen project started by performing a deep dive
into the current state process flow to better understand all touch labor
points and transactions. We also verified standard work (validation of
the data set [inputs and outputs]).
Day 3—The current state for each process flow was outlined using
“functional swim lanes” (departmental hand-offs between internal
as well as external groups) for each stakeholder group along with
responsibilities/activities/transactions and approvals. During this
process, we brainstormed issues and gaps (causation/root cause of the
problem) with the current flow of information to identify bottlenecks/
error points and opportunities for improvement. Next, we developed
the high-level process map highlighting the improved process flow
along with quick-kill action items to be resolved.
Day 4—Variation reduction: During the MSA phase, we confirmed the
data collection, conducted a formal MSA, and established data collection
forms used in the analysis phase—all calculations were reviewed and
certified by our internal master black belt.
Day 5—Improvement implementation was to achieve the 75% reduction in
documentation errors.

Results—The improved process Kaizen took 5 days to implement/

resolve. The Black Belt team eliminated 93% of documentation errors. The
team development action items and a detailed implementation plan along
with a 30-day control plan (measurements) ensured we truly achieved
the goal. Ongoing measurements (real time) were necessary to make sure
operator-dependent errors are minimized. After 90 days, the improvement
was confirmed to be 91.4%. The project was successfully closed out.
Further Readings

Albeanu, Mircea. Six Sigma in HR Transformation. Burlington, VT: Gower

Publishing, 2010.
Arthur, Jay. Free, Perfect and Now. Denver, CO: Knowledgeware International,
2012.
Ashkenas, Ron, Dave Ulrich, Todd Jick, and Steve Kerr. The Boundaryless
Organization: Breaking the Chains of Organizational Structure.
San Francisco, CA: Jossey-Bass, 2002.
Bassi, Laurie. Applying Six Sigma Techniques to Human Capital Management,
July 2006. http://www.dbaiconsulting.com/data/wp/McBassi
SixSigmaAndHumanCapital.pdf
Bloom, Daniel T. Achieving HR Excellence through Six Sigma. New York: NY:
Productivity Press, 2013.
Cox, Allan. Confessions of a Corporate Headhunter. New York, NY: Trident Press,
1973.
Deming, W. Edwards. Out of the Crisis. Boston, MA: MIT Press, 1982.
DiBernardino, Frank. Human Capital Analytics, the Missing Link: Measuring
Financial Returns on the Human Capital Investment. http://www.viennaindex
.com/dynamicdata/data/File/ExecutiveBriefing.pdf
Duggan, Kevin. Defining Operational Excellence, 2011. http://www.instituteopex
.org/cms/index.php?definition
Fleming, John. Human Sigma: Managing the Employee-Customer Encounter.
New York, NY: Gallup Press, 2007.
Goldratt, Eliyahu. The Goal. 2nd Edition. Croton-on-the-Hudson, NY: North River
Press, 1986.
Jekiel, Cheryl. Lean Human Resources. New York, NY: CRC Press, 2011.
Lay, Dwane. Lean HR: Introducing Process Excellence to Your Practice. St. Louis,
MO: Dwane Lay, 2013.
Liker, Jeffrey et al. The Toyota Way: 14 Management Principles from the World’s
Greatest Manufacturer. New York, NY: McGraw-Hill, 2003.
Liker, Jeffrey et al. The Toyota Way Fieldbook. New York, NY: McGraw-Hill, 2005.
Liker, Jeffrey et al. Toyota Talent: Developing Your People the Toyota Way.
New York, NY: McGraw-Hill, 2007.

143
144 ◾ Further Readings

Liker, Jeffrey et al. Toyota Culture: The Heart and Soul of the Toyota Way.
New York, NY: McGraw-Hill, 2008.
Liker, Jeffrey et al. The Toyota Way to Continuous Improvement: Linking Strategy
and Operational Excellence to Achieve Superior Performance. New York, NY:
McGraw-Hill, 2011.
Liker, Jeffrey et al. Toyota Way to Lean Leadership: Achieving and Sustaining
Excellence through Leadership Development. New York, NY: McGraw-Hill,
2011.
Mathis, Robert L. Human Resource Management. 12th Edition. Mason, OH:
Thomson Publishing, 2008.
Sproull, Bob et al. The Ultimate Improvement Cycle: Maximizing Profits through the
Integration of Lean, Six Sigma, and the Theory of Constraints. New York, NY:
CRC Press, 2009.
Sproull, Bob et al. Epiphanized: Unifying Theory of Constraints, Lean, and Six
Sigma. Great Barrington, MA: North River Press, 2012.
Tichy, Noel, and Stratford Sherman. Control Your Destiny or Someone Else Will.
New York, NY: Harper Business, 2005.

Bibliography
Preface
Ulrich, Dave. Human Resource Champions: The Net Agenda for Adding Value and
Delivering Results. Boston, MA: Harvard Business School Press, 1997.
Chapter 3: Flight to Excellence
Dettmer, William. The Logical Thinking Process. Milwaukee, WI: ASQ Press, 2007.
Dictionary.com. http://dictionary.reference.com/browse/enemy?s=t.
Hambleton, Lynne. Treasure Chest of Six Sigma Growth Methods, Tools and Best
Practices. New York, NY: Prentice Hall, 2008.
McCarty, Tom, Lorraine Daniels, Michael Bremer, and Praveen Gupta. The Six
Sigma Black Belt Handbook. New York, NY: McGraw Hill, 2005, p. 366.
Chapter 5: Where Oh Where Is the End of this Journey?
Alessandra, Tony, and Michael O’Connor. The Platinum Rule. New York, NY:
Warner Books, 1996.
Ulrich, Dave, Steve Kerr, and Ron Ashkenas. GE Workout. New York, NY: McGraw
Hill, 2002.
Lean Methods & Implementation / Organizational Culture

The Field Guide to Achieving

HR Excellence through Six Sigma
In an environment where many organizations think of human capital assets as little
more than expense items that impact the bottom line, this book will help human
resource (HR) professionals initiate a shift toward a new culture in which management
views employees as true partners in achieving organizational success.

The Field Guide to Achieving HR Excellence through Six Sigma provides

detailed guidance on how to utilize the Six Sigma methodology and the TLS Continu-
um to achieve the business model that is required to thrive in today’s business environ-
ment. The book demonstrates a clear path to continuous improvement that is based
on the practice of spreading quality throughout the organization so that it becomes
everyone’s responsibility.

This book is the sequel to Achieving HR Excellence through Six Sigma. In this book,
Daniel Bloom provides a road map on how to implement the concepts found in the
first book.

The book begins by explaining how to create an HR Center of Excellence and then
provides an understanding of the define–measure–analyze–improve–control (DMAIC)
process and its implementation for HR. This road map will help you determine where
your organization is failing to meet the voice of the customer.

The book presents proven Six Sigma solutions for initiating and sustaining organiza-
tional change as well as strategies that allow leadership to make adjustments to
processes if your organization falls short of meeting the need of the customer. It
includes case studies of organizations that have successfully utilized the Six Sigma
methodology to improve workflow and correct HR issues including the actual project
documents used to implement the methodology.

A word of caution: If the reason you are looking to improve work flow is to find ways to
reduce headcount, then this is not the book for you. Instead, if you are looking for a
guide that can help you become a strategic partner, administrative expert,
employee champion, and change agent, then fasten your seat belts and begin this
worthwhile journey.

K25356
ISBN-13: 978-1-4987-1567-6
90000

9 781498 715676