The Role of Lean Six Sigma in HR

Most would agree that efficient operations are a key ingredient to the success of a company. Certainly, there is a huge opportunity cost to any division or organization that continues to support inefficient and ineffective processes in a highly competitive global market.

To combat these inefficiencies, corporations in every industry have begun to make investments in process improvement methodologies such as Lean Six Sigma.

Lean Six Sigma, when applied properly, can result in more efficient operations that produce better products and services for customers.

As such, investments have been made in various areas of operations, most notably in supply chain, technology and manufacturing. However, one area where you may not have seen as much investment to date is in human resources.

Human resources, by its very nature, does not seem like an area that would benefit from process improvement. After all, HR doesn’t produce a tangible product, and it’s difficult to quantitatively measure the level of satisfaction with this functional area.

However, HR does provide a service with routine operations. And where there are routine operations, there’s room for process improvement that can lead to more efficient and effective service for customers (in this case, a company’s employees).

Lean Six Sigma is Industry Agnostic

One key aspect of Lean, Six Sigma and Lean Six Sigma is that they are industry agnostic. While Six Sigma and Lean began in manufacturing, their ideas translate into any type of business.

Organizations in wide-ranging industries such as healthcare, government, higher education and the military have found success with Lean and Six Sigma tools and techniques.

HR is not unique. It, too, can succeed as other organizational operations have by applying Lean Six Sigma. For example, Lean Six Sigma could help improve HR in these quantifiable areas:

• Compensation processes – Examples include determining bonus pay benchmarks and authorizing overtime
• Orientation processes – Every orientation process involves paperwork and routine tasks that can be optimized
• Recruitment processes – Is the company responding to potential new hires in a timely way? Is the process for creating job postings as efficient as it could be?

That’s just three. In every functional area, including HR, if there’s a process, there’s an opportunity for the application of Lean and Six Sigma to make a positive impact.

Employee Growth and Retention

Lean Six Sigma can help cut waste and make HR processes more efficient. But, HR also can play an active, critical role in establishing a Six Sigma culture at a company.

For example, Six Sigma Black Belts are among the most important members of the organization when it comes to developing and implementing Six Sigma processes. But where can you find the candidates for this critical position, and who will oversee training? Organizations are typically very careful about who they put into these key roles.

HR managers can take a lead in this area, working with executives to establish a competency model that helps identify those with the most potential for excelling in Lean Six Sigma leadership roles.

Some of the areas they can focus on include:

• Communication skills
• Leadership ability
• Management skills
• Expertise in an organization’s processes
• Positive attitude

Training and developing Yellow, Green and Black Belts is important and effective toward improving overall employee retention. This can also provide a highly coveted professional development opportunity to a key employee. This is a win-win for both the individual and the corporation.

Establishing A Six Sigma Culture

Many of the skills listed for Black Belts also apply directly to a leadership role in HR. This is not a coincidence. It is advantageous to have those with skills in Six Sigma in HR leadership positions. Job postings today will often list Lean Six Sigma-related job skills for HR professionals.

With Lean Six Sigma trained employees, HR departments are better suited to establish a culture that aligns with Six Sigma – data-driven, focused on continuous process improvement and analytical in its approach. But even when executives have complete buy-in to the idea, they don’t always know how to create this culture. HR professionals are typically experts in this area and can take the necessary steps to advocate for change and begin to instill processes that support a continuous process improvement culture.

Lean Six Sigma in HR can have a significant impact on an organization. For those working in HR, earning certification in Six Sigma is often the first step toward combining these two areas.