1st Edition

Achieving HR Excellence through Six Sigma

By Daniel T. Bloom Copyright 2014
    215 Pages 27 B/W Illustrations
    by Productivity Press

    215 Pages
    by Productivity Press

    Although world-class firms like GE and Motorola have relied on Six Sigma to build their performance cultures, these processes are all too often left out of human resources (HR) functions. This lack of Six Sigma principles is even more surprising because preventing errors and improving productivity are so critical to the people management processes of hiring, retention, appraisal, and development.

    From the history and evolution of the Total Quality movement to initiatives for introducing a Six Sigma continuous process improvement strategy in your HR department, Achieving HR Excellence through Six Sigma introduces a new way to envision your role within the organization. It explains how this powerful methodology works and supplies a roadmap to help you find and eliminate waste in your HR processes.

    Describing exactly what HR excellence means, the book outlines dozens of proven approaches as well as a hierarchy of the exact steps required to achieve it. It illustrates the Six Sigma methodology from the creation of a project to its successful completion. At each stage, it describes the specific tools currently available and provides examples of organizations that have used Six Sigma within HR to improve their organizations.

    The text presents proven approaches that can help you solve and even eliminate people management problems altogether. Filled with real-world examples, it demonstrates how to implement six sigma into the transformational side of your organization. It also includes a listing of additional resources to help you along your Six Sigma journey.

    Explaining how to build a new business model for your HR organization, the book supplies the new perspective and broad view you will need to discover and recommend game-changing alternatives to traditional HR approaches in your organization.

    What Do We Mean by HR Excellence?
    Excellence Is the Acquisition and Integration of Passionate and Culturally Aligned Employees who Are Engaged and Aligned with the Organization’s Goals
    Using Tools and Processes to Advance the Business Mission
         Focus on Elements That Are Strategic, Transactional, and Compliance Issues
         Focus on Gaining and Maintaining a Seat at the Table
         Securing, Training, and Retaining Talent to Meet Corporate Business Strategies
    Do We Know What to Work on Next?
    Where Is HR Excellence Going to Take Us?

    Where Did Six Sigma Come From?
    Deming’s 14 Points of Quality
         Create Consistency of Purpose for Improvement of Products and Services
         Adapt the New Philosophy
         Cease Dependence on Mass Inspections
         End the Practice of Awarding Business on Price Tag Only
         Improve Constantly and Forever the System of Production and Service
         Institute Training
         Institute Leadership
         Drive Out Fear
         Break Down Barriers between Staff Areas
         Eliminate Slogans, Exhortations, and Targets for the Workforce
         Eliminate Numerical Quotas
         Remove Barriers to Pride of Workmanship
         Institute a Vigorous Program of Education and Retraining
         Take Action to Accomplish the Transformation
    Evolution of the Total Quality Management System
         Quality Circles
         Total Quality Management
         GE Workout
         Toyota Production System
         Six Sigma Process
         Lean Six Sigma Framework
         Modern-Day Evolution of Six Sigma
              Ultimate Improvement Cycle
              Rapid Workout

    What Is Six Sigma?
    Objection: It Is a Manufacturing Thing
    Objection: We Tried That, and It Did Not Work in Our Organization
    Objection: It Is Too Complex to Be Used in Most Organizations
    Six Sigma Roles
         Senior Executive
         Executive Committee
         Champion (Project)
         Process Owner
         Master Black Belt
         Black Belt
         Green Belt
         Yellow Belt
         White Belt
    Six Sigma Methodology Themes

    Six Sigma Tool Box
    Define Stage
    Measure Stage
         Question 1: How Do We Measure the VOC Issues?
         Question 2: What Is the Source for the Process Data?
         Question 3: Do the Data Tell Us about the Real Current State?
         Question 4: What Does the Existing Process Tell Us?
         Question 5: How Does the Current Process Operate?
         Question 6: How Does the Current State of the Process Match the VOC?
    Analyze Stage
         Question 1: How Does the Process Perform?
         Question 2: What Areas Are Causing the Problem?
         Question 3: What Does the Current State Show Us?.
         Question 4: What Do the Data Indicate?
         Question 5: Does the Root Cause Affect the VOC Issues?
    Improve Stage
    Control Stage

    In Plain Sight: Sources of Wastes
    Waste Type 1: Overproduction
    Waste Type 2: Waiting
    Waste Type 3: Unnecessary Transport
    Waste Type 4: Overprocessing
    Waste Type 5: Excess Inventory
    Waste Type 6: Unnecessary Movement
    Waste Type 7: Defects
    Waste Type 8: Unused Employee Potential
    Waste Type 9: Material Underutilization

    Applied Six Sigma and Human Capital Management
    Functional Area 1: Human Resources Business Management and Strategy
         Mergers and Acquisitions
         Human Resource Audits
    Functional Area 2: Workforce Planning and Employment
         Accurate Tracking of Family Medical Leave
         Frequently Asked Questions in the Employee Handbook
         Job Posting Rates
         Increased Retention
         Application Response Time
         Removal of Unnecessary Steps in the Process
    Functional Area 3: Human Resource Development
         The Measure Stage: How Bad Is the Problem, and What Might Be Causing It? 
         The Analyze Phase: What Are the Vital Few Causes of the Problem?
         The Improve Phase: What Changes Should We Make to the Process to Eliminate or Reduce the Impact of the Cause?
         Pilot and Acceptance Testing
         The Control Phase: What Process Monitoring Should Be Put in Place to Ensure the Process Changes Are Sustained?
    Functional Area 4: Compensation and Benefits
    Functional Area 5: Employee and Labor Relations
         Complaint Procedures
         Incident Reports
         Control Charts to Show What Benefits Are Most Effective for the Employees
         Control Charts or Pareto Charts to Show the Variation between Work Time and Leisure Time
         Tracking Complaints that Most Likely Will Lead to Employee Assistance Programs
    Functional Area 6: Risk Management
         Data Analysis Regarding Accident Incidents
         Creating a Kanban System in the Workplace
         Kaizen Events to Correct Workplace Issues

    Business Model Canvas and HR Management
    Business Canvas Segment 1: Value Proposition
    Business Canvas Segment 2: Customer Segments
    Business Canvas Segment 3: Customer Relationships
    Business Canvas Segment 4: Channels
    Business Canvas Segment 5: Revenue Streams
    Business Canvas Segment 6: Key Partners
    Business Canvas Segment 7: Key Resources
    Business Canvas Segment 8: Key Activities
    Business Canvas Segment 9: Cost Structure

    Bringing It All Together
    Long-Term Planning to Optimize Service Delivery
         Corporate Culture
         Value of the Human Capital Assets to the Organization
         Corporate Management Style
         Corporate Decision Process
         Future State of the Corporation
    Continuous Improvement (There Is Always a Better Way)
    Transformational Leaders
    Poka Yoke (Mistake Proof)
    Educate and Train
    Change Managers into Leaders
    Drive Out Fear (Employees Empowered to Express Ideas and Ask Questions)
    Break Down Silos (Create Teams That Reach across Units) Focus on Process, Not People (Avoid the Blame Game)
    Avoid Numerical Quotas for People in Management
    Go and See
    Gain Knowledge
    Do It Now

    Achieving HR Excellence through Six Sigma
    Customer Centric
         Customer-Centric Strategic Initiative
    Organizational Alignment
         Organizational Alignment Initiatives
    Quality Management
         ISO 9001 Section 6.2.2a: The Necessary Competence for Personnel Performing Work Affecting Conformity to Product Requirements
         ISO 9001 Section 6.2.2b: Where Applicable, Provide Training or Take Other Actions to Achieve the Necessary Competence
         ISO 9001 Section 6.2.2c: Evaluate the Effectiveness of the Actions Taken
         ISO 9001 Section 6.2.2d: Ensure that its Personnel are Aware of the Relevance and Importance of their Activities and How they Contribute to the Achievement of the Quality Objectives
         ISO 9001 is Section 6.2.2e: Maintain Appropriate Records of Education, Training, Skills, and Experience

    Further Reading


    Daniel Bloom

    Six Sigma tools give discipline to the HR practices so that they can be designed and delivered efficiently. This book offers an excellent review of Six Sigma principles and a wonderful application of those principles to streamline and improve HR practices. Application of these ideas will mitigate the risks of HR by reducing variance and increasing certainty of HR work. These are the foundation principles which ensure that HR will deliver sustainable value.
    —Dave Ulrich, Professor, Ross School of Business, University of Michigan

    In Achieving HR Excellence through Six Sigma, Dan Bloom faithfully captures the history and practice of Lean Six Sigma. He then proceeds to lay out a vision of high performance and excellence for any HR organization. Finally, through his own experiences and those of other practitioners, he provides numerous valuable examples of what implementation really looks like. A must read for HR professionals that are interested in pursuing excellence.
    —Jeffrey Summers, Operations Manager, Amcor Flexibles and Former Director of Quality and Six Sigma Learning, Motorola University

    If HR is ever to become a critical part of any organization, its leaders MUST learn and properly apply the language of business. Achieving HR Excellence through Six Sigma lays out a clear, sequential, yet easy to understand roadmap that any HR professional can follow that will take their teams to a higher level of business impact. Combining his experience as an expert in both HR and Six Sigma, Dan Bloom is the right expert with the right RX for what ails most HR teams - how to transform themselves from paper-pushing bureaucrats into vital strategic partners.
    —Dr. Jim Harris, Founder of To a Higher Level LLC, former Fortune 500 corporate HR executive, and author of ten business books including The Impacter: A Parable on Transformational Leadership.

    If you think your employees deserve the dependable and quality services that your customers require (and that you demand as a customer of business you patronize) then this book is for you. Dan knows the functional side of HR and with the quality lens and lean sigma tools explained in the book, can help you forge a path to a vastly improved and significantly more effective HR function.
    —Kent Linder, Consultant to Organizations

    It may be that the greatest area for improvement in our organizations today is in the functions – the enabling processes of human resources, finance, and information services. Dan Bloom has written a very helpful book that directly applies lean and Six Sigma thinking to the HR function. Every HR professional will benefit by reading this book, but more importantly applying its wisdom.
    —Lawrence M. Miller, Author of Getting to Lean – Transformational Change Management

    Corporate departments from IT to HR try to avoid Six Sigma by saying: ‘Oh that works for manufacturing, but it won’t work in HR because we don’t manufacture anything.’ Daniel Bloom lays bare the silliness of that statement. Six Sigma can be applied to any business process and Dan shows how easy it can be to apply Six Sigma to HR. If you want to get the ‘right people on the bus’, Six Sigma is the way to do it.
    —Jay Arthur, Author of Lean Six Sigma Demystified and The QI Macros for Excel