Excellence in Recruiting and Selection through Six Sigma (Part 2)
Posted by Cabot Jaffee on Tue, Oct 19, 2010 @ 09:49 AM
CRUISING THE SIX SIGMA HIGHWAY. Six Sigma is driven along a powerful road map called. DMAIC—Defines, Measures, Analyzes, Improves, and Controls. This system provides incremental improvement for existing processes not meeting specifications, including recruiting and selection applications for HR.
Stop 1 (on DMAIC map) – Defines. First, define the business case, which is driven by some measure of profitability. From there, state the problem, goal, and business case; establishes scope; includes a cost-benefit projection; and project(s) milestones. Next map the process, which has the suppliers on the input side and the customers on the output; the process yields different results. For example, if the scope of the project is to source hirable employees, the talent bank of potential hires, job boards, Web 2.0 sites like LinkedIn are the input, and the output is the selected group of hirable candidates. Final insert the “voice of the customer”, which involves gathering feedback from customers to determine key issues and meet CTQs (critical to quality) defined by the customer which may be percentage of submissions with hard to find skill, requirement to work a night shift, well spoken English, no more than 3 interviews to a fill. The goal is to proactively meet the customer’s expectations with innovation.
Stop 2 (on DMAIC map) -Measure and gather information on the problem at hand, which involves identifying and prioritizing the metrics. Once this occurs, you establish a data collection plan to determine what to measure, how to collect the data, how it will be measured, and how the data will be displayed. After validating the measurement systems, then measure the actual process identify the process capability and display the data. Some companies use their HRIS system to house all this data but other companies need a separate system. Many companies don’t use their HRIS system for these kinds of measures. In these cases it is imperative that another system be set up to keep this data for later analysis.
Stop 3 (on DMAIC map) – Analyze the data to determine the root cause. There are many ways analysis can be conducted. One option is to create a list of what the potential problems are, organize them, and then verify what is causing these problems. Once a problem is determined, you have to ask “why” five times to find an answer.
Another option is a cause-and-effect diagram which can be used to visualize and identify the root causes. You take your problem statement, e.g., “Why did the resume get rejected and identify possible causes for this problem, which are then organized into clusters. Each cluster is labeled with a main problem, and bones are arranged for each cluster. If you know the causes, you may be able to make changes which reduce or eliminate the problem and help meet your goals. The diagram helps problem solve.
Another method is either the process door or data door method. Process door is used to improve an understanding of process flow, address problems with cycle time, and reduce process costs. It involves either basic or detailed flow diagrams with value ads and non-value ads. The data door helps explain what creates variations in a process by using scatter plots or stratification. When you have variable data, which can be divided into categories and analyzed, stratification is used. The data related to your problem needs to be treated individually; it is stratified in layers and checked for variations.
Stop 4 (on DMAIC map) -Improvement. The purpose of this step is to develop, implement, and evaluate the results from the analyze stage. You have to prioritize and generate solutions and perform a cost-benefit analysis of proposed solutions. Next, you select the solution and assess the related risks. The pilot program is operated to make sure the solution you’ve chosen works. It can be run at three phases: original, test, and full scale. The final step is plan implementation: planning the tasks and subtasks; planning when, where, and who is involved; and planning the resources needed. In today’s world both content and technology will be a major part of the solution. Technology will provide for significant ROI related to costs and time to fill positions, improvements in quality of hire, and being able to source enough applicants to provide “choices” when making hiring decisions.
Stop 5 / Final stop (on DMAIC map) - Control. This is the responsibility of the process owner who is accountable for process design and performance. Once you have identified the cause of the problem and a way to fix it, you have to make sure methods are put in place to control the problem and improve on the final plan. The solution needs to be documented and standardized in training manuals, training curriculum, etc. A quality-control process chart documents how standards are maintained. The QC chart includes a flowchart which shows the plan and what needs to be done. Each step has work instructions, control/check points, and the correct response. In other words, just because something has been implemented doesn’t mean that it will work forever. Continue to monitor and adjust the new process for even better gains.
Next is ownership and monitoring, which sets upper and lower control limits; process change management; and the evaluation of project results. After the project is closed, key learning’s document the results and what was learned, and establishes recommendations. Remember, what is measured gets paid attention to. So even though the project is over if someone does not own and continually monitor results then many improvements will be lost.
For more information on applying Six Sigma to your HR processes, please contact AlignMark (http://www.alignmark.com). AlignMark has developed and applies Six Sigma framework to help its’ customers source and hire high quality talent. This system achieves sustainable competitive advantage by providing a set of tools and methods for improvement efforts to reduce “defects” for its users. This reduction in “defects” results in reduced résumés reviewed per hire, time to Offer, Offer to fill ratios, quality of hire, and reduced attrition rates.