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RecRuitment
pRocess
outsouRcing
business
pRocess
outsouRcing
contingent
woRkfoRce
outsouRcing
Human
ResouRces
consulting
caReeR tRansition
& oRganizational
effectiveness
executive
seaRcH
Think ouTside.
embracing alean culTure:achieving operationalexcellence in recruitmentthrough a provenmanuacturing philosophy
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itt p/3
01it t l p/4
02F t t? p/7
03l p/9
04F tt p/14
05l t p/17
c p/20
lean t p/21
at t t p/22
conTenTs
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By embracing the undamentals o Lean manuacturing,
HR leaders at GE Healthcare realized they could lit
recruitment to new heights o efciency and quality.
insighT inTo lean01
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Few organizations epitomize process excellence as
succinctly as General Electric, whose global innovations across myriad
businesses have made the household brand a leader in every one o
its markets. So it might seem surprising that GE Healthcare, one o
the companys astest growing divisions, began implementing Lean
manuacturing methodology within a service line only three and a
hal years ago, even though manuacturers around the world have
been involved with Lean or decades. Was this corporate giant simply
lagging its competitors?
On the contrary, GE Healthcares use o Lean methodology was
ar ahead o its timerearming its status as a trailblazer. The
company had already implemented this highly eective quality
system throughout its manuacturing acilities long ago. But in 2006,
GE broke new ground by adopting the basic tenets o Lean within
its business process services, beginning with the critical unction o
recruitment.
By embracing the undamentals o Lean manuacturingidentiying
value-creating activities, eliminating waste, and ocusing on
continuous improvementHR leaders at GE Healthcare realized that
they could lit recruitment and other back-oce unctions to new
heights o eciency and quality. Moreover, the initiative would give
business partners more insight.
Ultimately, this has been about providing really smart, deliverabledata to our clients and then saying to them, Here are not only the
benchmarks we started rom, but here are the additional eciencies
we can deliver. We have a story we can tell, explained Steven Brown,
talent acquisition leader at GE Healthcare and one o the architects
behind the companys Lean recruitment initiative. We are driven by
improvements. We go over this on a weekly, monthly, and yearly basis
so we expose ourselves to how we are doing.
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becoming lean:
how To geT sTarTed in recruiTmenT
Understanding the Lean philosophy and making a commitment to it in your organization is
a considerable investment. It requires executive sponsorship, buy-in rom the rank and fle,
plus the patience and resources to make it successul. However, when executed well, the
eort can signifcantly improve how you acquire talent.
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Browns outlook refects the Lean philosophy in every respect. As
disciples o continuous improvement, practitioners train themselves
to guard against complacency and remain vigilant in identiying and
solving breakdowns in their processes. Although many companies
have applied the methodology to manuacturing, ew have adopted
it within a business process, where advocates say similar success
can be achieved. Thats why GE Healthcares eorts are considered
groundbreaking, especially in the eld o talent acquisition, an
increasingly strategic service that can give an organization real
competitive advantage.
As part o its Lean journey, GE Healthcare enlisted the support o
its external recruitment service provider, Kelly Outsourcing and
Consulting Group (KellyOCG), which had been an integral part o the
companys recruitment services since 1999. As a learning exercise
or both partners, Lean implementation at GE Healthcare resulted
in cultural shits not only to its internal processes but also to those
o KellyOCG. And now the global outsourcing service provider is
bringing its Lean expertise to other organizations.
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kaizen:
A philosophy
o ongoingimprovement
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A lead HR Outsourcing analyst explained that many
companies today are considering various ways to
standardize and streamline their recruitment processes.
Fad or here To sTay?02
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But as many industry veterans know, quality systems come
and go, and there will always be a ad o the day clamoring or the
attention o operational leaders. Remember ISO 9001? Companies
couldnt le or registration ast enough, but ISOs lingering impact
on corporate culture has aded just as quickly. So what makes Lean
any dierent than previous ads? How can a manuacturing initiative
improve the workings o a business process? And are the benets o
implementing Lean methodology worth the eort?
There is no doubt in my mind that this is a good thing, said Gary
Bragar, lead HR outsourcing analyst at NelsonHall, a global market
analyst and advisory rm. He explained that many companies today
are considering various ways to standardize and streamline their
recruitment processes as the pressure to acquire top talent intensies.
Using a disciplined approach such as the Lean methodology is a smart
way to organize and execute those goals.
Indeed, a number o world-class organizations now apply Lean
principles outside o their manuacturing activities. In his book Going
Lean, author Stephen Rua cites standouts such as Walmart and
Southwest Airlines as pioneers in adopting Lean to combat a turbulent
business environment. The lesson here is that even when external
orces are restless, companies can weather the storm by adhering to
the stabilizing orces o a Lean culture.
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Lean is not a ad; Lean is a liestyle. Lean practices enable an organization to reduce development
cycles, to produce higher quality services and products at a lower cost, and to use resources more
efciently. The application o Lean is now an integral component o our RPO solutions.
candy lewandowski:
v t rpo t ,
k ot ct g
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Just as this approach is capable o turning out a
better car, when applied to recruitment, practitioners
can expect a more efcient and responsive process
or fnding candidates.
lean up close03
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While the Lean movement within a business process
remains nascent, its adoption by the manuacturing community
has been ongoing or decades. Global carmaker Toyota, whose
production system on which the term Lean was coined, leveraged
this approach to grow itsel into the worlds leading automobile
manuacturer. The Toyota Production System (TPS) was so eective
that it spawned an entire industry based on its study. Today, the Lean
philosophy has been adopted by organizations around the globe,
with thousands o trained disciples practicing its methods.
The benets to HR have been documented. According to a study
conducted by two researchers at Coventry University1, Lean principles
applied in a pilot project to improve candidate recruitment at the
institution helped to signicantly raise outcomes. Involving sta rom
the universitys HR recruitment team, external recruitment agencies,
and IT services, as well as customers rom library services, academic
aculty, and student servicesthe project netted a 20 percent
reduction in overall time to approve and ll sta positions. More
importantly, the exercise also helped HR to identiy non-core, ancillary
activities that occupied their time, enabling them to simpliy and
expedite the entire process.
What exactly, then, is the Lean philosophy and how can it be
leveraged to improve corporate recruitment?
In essence, Lean manuacturing is a philosophy in which practitionerscommit to continuous improvements using critical tools to help
them identiy and eliminate waste and irregularities in their
processes. Although it stemmed rom the automotive shop foor, its
undamental tenets can be applied to the back oce as well, since all
organizational activities involve some degree o waste or duplication.
Just as this management approach is capable o turning out a better
car, when applied to recruitment, practitioners can expect a more
ecient and responsive process or nding candidates. Ultimately,
because practicing organizations reduce waste and non-value-added
activities, they also cut costs.
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1 Martin, S. and Arokiam, I. (2008), Investing to Improve OrganisationalDevelopment and the link with Lean or Continuous Quality Improvement,proceedings rom the 11th QMOD Conerence, Helsingborg, Sweden.
Vsm:
Value Stream
Mapping
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muda:
Waste, activities
and results tobe eliminated
It all starts with Value Stream Mapping (VSM), a process by which
managers examine all activities that take place to produce a product
or service. As part o the Lean philosophy, tasks that do not create
value or the customer are considered wasteul, so in drawing up a
VSM, practitioners identiy waste to be targeted or elimination.
In recruitment, or example, an organization may duplicate eorts
when a candidate slate is presented to the hiring manager. Some
companies employ multiple applicant tracking systems that might
require the same inormation to be input several times to meet
customer needs, compliance requirements, or or data retention. This
duplication clearly generates wasted time that adds no value to the
hiring manager or the candidate. By drawing up a comprehensive
VSM, Lean practitioners can address all the unnecessary eorts in the
recruitment process. This allows team members to produce a uture-
state VSM that is ree o the identied waste. Visually, it provides a
map or any organization to ollow.
7 Types oF wasTe recruiTmenT process Flow
Waiting Escalations/approvals, waiting or eedback,
waiting or oers to be entered
Inventory Oers to be processed, rsums to
be reviewed
Deects Incorrect data, requisition olders not updated
Extra Processing Updating JobFlow, Brass Ring, or other ATS
Transportation Shipping oer letters, takes 24 hours
Overproduction Processing beore next operation is ready,
processing prior to need
Motion Tracking down paperwork, walking to and
rom printer, ax, or ling cabinets
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I VSM represents a roadmap or the Lean journey, then the 5 Ss might
be considered gas or the road. These are ve essential principles or
operating in a Lean environment to help ensure process consistency.
They are:
| sorT separation o necessary items rom unnecessary items
(identiying waste)
| seT in order arrange items according to how they will be used
(an enabler o eciency)
| shine maintain work area or sorted and set-in-order items
(maintaining workplace hygiene)
| sTandardize ensure sort, set-in-order, and shine steps are
consistently ollowed (reducing process variations)
| susTain maintain and improve sort, set-in-order, shine, and
standardize steps (ensuring Lean eorts are ongoing)
These ve principles set the oundation on which Lean organizations
execute their operational plans. Each step helps to ensure that
workfow is not compromised by unanticipated problems. And when
issues do arise, all team members pitch in to resolve them.
When the 5 S concept was rst developed, it was aimed at improving
production fow on the manuacturing foor. However, these ideas
can be applied with equal success to recruitment, where unnecessary
activities slow hiring and hinder service delivery to customers. Each
o these tools acilitates waste elimination and minimizes process
variation.
Think about the 5 Ss in recruitment. How do we take it rom the
manuacturing foor to the oce? The foor is your desk and ling
system, where you process your work. It is a sustainable solution. The
principles have been around orever; its a matter o how to apply
them, and how to challenge yoursel to continue applying these
principles to maintain order and eciency daily.
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The FiVe s:
Sort
Set in orderShine
Standardize
Sustain
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kanban:
A card used
to visually faga problem
As the 5 Ss are implemented, organizations typically assemble kaizen
teamsstakeholders who help sustain and administer continuous
improvements. Kaizen, which simply means improvement in
Japanese, is the practice o making changes, monitoring results, and
making adjustments as needed. Without this important component,
Lean would be unsustainable.
Because o the collaborative environment it creates, Lean encourages
transparency into every team members role, so others can weigh in
with suggestions on how to resolve a particular colleagues dicult
issues. Furthermore, although individuals are highly accountable
or their work, the culture is less about blame than about problem-
solving. It also allows or best practices to be more visible, and thus
shared more readily.
When a problem is identied, a kanban, or card is used to visually
fag the problem. For instance, i interview scheduling oten results in
conficts, a kanban is pulled and a kaizen team member documents
the nature o the problem, requency o occurrence, the triggering
mechanism, and other relevant inormation. Are entry errors being
made in the ATS? Is there a communication breakdown between
recruiters and candidates? The kaizen team undertakes a three-step
approach to resolving the issue, including problem identication,
resolution brainstorming, and validation o the solution.
Separately, each o these tools contributes incremental changesin workfowbut when implemented cohesively, they can have
a signicant impact on an organizations culture. However, Lean
experts caution that new practitioners must be patient and allow it to
permeate an organization over time. Rushing to judge its eectiveness
may result in a skewed picture.
As you go through the Lean journey, some things might not seem
like they would make a huge impact, but over timemonths or years
laterthats when you really understand their impact. You must have
patience, advised Roxanne Kitts, U.S. stang process leader within
the KellyOCG RPO practice.
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One o the key benefts or GE Healthcare was
Leans emphasis on standardization.
Focus on pracTiTioners04
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Indeed, even or an organization already obsessed with
operational excellence, adding Lean made a dierence at GE
Healthcare. Adopting this philosophy in recruitment was a natural
progression in the companys pursuit o perection, Steven Brown
said, adding that even beore the business began investing in Lean,
it was already practicing Six Sigma, another quality management
approach. However, Lean methodologies urther elevated the
companys ability to deliver high-quality candidates in a timely
manner.
One o the key benets or GE Healthcare was Leans emphasis
on standardization. Because the company had made numerous
acquisitions over the years, dierent business lines had dierent
approaches to recruitment. Challenges around compliance, reporting,
benchmarking, and other issues were inevitable. This created
tremendous ineciencies in recruitment services and slowed the
delivery o qualied candidates to hiring managers. For a business
highly dependent on its human capital, this was a market handicap.
One o the challenges that we have is the way GE Healthcare has
evolved through acquisitions. We are made up o many businesses.
To have dierent processes to manage each became a challenge you
wouldnt believe, said Brown, recalling the companys recruitment
problems prior to the start o its Lean journey.
Because GE Healthcare had outsourced its recruitment to KellyOCGor more than a decade, when deciding to adopt a Lean culture,
it also needed the support o its service provider. In act, it
shepherded KellyOCG through the process by allocating a trained
quality black-belt to serve as an advisor or six monthsturning the
normal customer-vendor relationship on its head. But i it seems GE
Healthcare was being extraordinarily altruistic, Brown conceded that
helping KellyOCG was also sel-serving. By improving the workfow
o its provider, GE Healthcare would ultimately reap the benets.
Moreover, because the two companies operated synergistically, he elt
both companies would need to adopt a Lean culture to maximize the
return on investment.
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Kelly has been part o our stang organization or 10 years, so they
had seen our ineciencies too. They had lived through the challenges
on the operational side, Brown said. We have been in this together
with Kelly since day one. We have been lucky in that we havent had
to change partners.
GE Healthcare began implementation o Lean recruitment in 2006,
producing its rst VSM in May o that year. Relying on an internal
expert who had studied Lean at Toyota and General Motors, the
company moved steadily toward its uture state, building a center o
excellence along the way and creating a knowledge base shared by
other GE businesses such as GE Money, the parent companys nance
business.
Brown said his own team and KellyOCG team members have becomeso immersed in the philosophy that they instinctively tackle problems
in a highly systematic and standardized way. Today, the impact on
hiring managers is that they receive better and more consistent
service, without having to learn about Lean.
Ultimately I dont think the customers care about how you deliver
service, as long as you do it well, Brown concluded.
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Although Talecris had standardized some o its activities,
the Lean tools and principles introduced by KellyOCG
elevated its recruitment to a new level.
lean on a projecT basis
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GE Healthcares implementation is a textbook example o
a permanent cultural shit, but many companies today outsource
their hiring on a project basis. How would a service providers
Lean practices aect them, i at all? For one global organization,
Lean literally became a matter o lie and death. When Talecris
Biotherapeutics, a maker o biotherapeutics and biotechnology
products, needed to open numerous plasma collection centers
in 2008, company ocials were worried about stang up quickly
enough to meet their deadlines. Suzanne Eller, the recruiting manager
and HR business partner, said eective recruitment became an
imperative to all.
Our concern was that i we didnt have these plasma centers
ully staed and trained, the centers would not open, meaning no
production and no service to patients. I we didnt have donors come
to donate plasma, the people needing our pharmaceutical products
would not get them. It was literally a matter o lie and death, she
recalled.
Even though Talecris had internal recruitment capabilitieseach o
the companys three divisions had its own recruiterits sole recruiter
or the new centers was overwhelmed by the volume o work. It
quickly became clear to Eller that Talecris needed outside help.
The company had a successul relationship with Kelly Services
or temporary hiring, but positions at the plasma centers werepermanent. Nevertheless, Eller said she elt condent the provider
could help deliver the right candidates. And with a deadline looming,
Talecris needed to engage external support quickly.
Although Talecris had standardized some o its activities, the Lean tools
and principles introduced by KellyOCG elevated its recruitment to a
new level. In identiying workfow problems and using scorecards to
evaluate the process, the KellyOCG team helped Eller to better plan
and set deadlines. Clear timelines were established or each position
or example, an assistant manager had to be lled three to our months
prior to a centers opening, while a phlebotomist was to be hired witha three-week lead time. Furthermore, kaizen team members worked
closely with hiring managers to perorm gap analysis o any bad hires.
The Lean approach provided Eller with a clear vision o what needed to
be accomplished.
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It was an interesting concept. What would happenand the best
benetwas that we could see how many positions needed to be lled
in a geographic area. We could set deadlines, she said. The outcome
was better than I had expected.
Although Talecris didnt ully adopt Lean within its recruitment
organization, it was the beneciary o an innovative partner that had. At
a time when companies are ocused on improving eciencies, its clear
that a proven management philosophy such as Lean can help recruiters
achieve this goalregardless o whether they embrace it internally
or through a provider. By ocusing on waste, keeping team members
engaged, and promoting continuous improvements, Lean practitioners
are assured o better outcomes and happier customers. In the end,
this presents all organizations involved with competitive business
advantage.
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conclusion
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There is some conusion over how Lean is implemented in a service
environment or within a business process, so its important or new
practitioners to become ully oriented with the concept and how
it applies to their organizations beore getting started. A myriad o
courses and educational material are available, as are consultants
and practice gurus. Companies can send sta to be trained in Lean
methodologies or invite advisors to walk them through the process. In
any o these instances, a signicant investment is required.
Another option is to engage a recruitment process outsourcing service
provider with a strong Lean background that is capable o passing on
its knowledge. This enables the hiring organization to observe Lean in
practice without having to disrupt its ongoing recruitment work. Using
Lean-embedded processes, such a provider can help clients to ease
into the transition and eventually work in lock-step under the same
Lean culture, sharing all lessons learned and a common vision or a
uture state. When considering such a relationship, remember to ask the
ollowing about the vendor:
| How long has the provider practiced Lean in its own culture?
| How has it applied Lean to other clients to help improve their
recruitment eorts?
| Does the provider have sucient expert resources to help with your
implementation?
| What sort o knowledge base does it oer or your use?
These and other questions will help you identiy the best Lean vendors
to t your needs, and those that can help you successully engender a
sustainable cultural shit in your workplace.
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lean journey checklisT
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Use this quick and easy ten item checklist as a guideline to put your
priorities and lean plan into action. Once you have reached the end o
this list, value stream map your process and repeat!
Invest time in understanding lean concepts (books, webinars,
courses, etc.) or engage a consultant.
Communicate your plan to incorporate lean into the organization as
a new liestyle. Explain the reason or embarking on this journey.
Conduct internal team training or the business group implementing
lean. This should include lean role and responsibility denition,
timelines and expectations.
Value stream map your current and uture state process.
Organize your work and team environment (ie. 5S)
Create kaizen, audit and change management teams.
Create visual management tools.
Review and communicate kaizens, VSM, team roles and goals,
action items and ollow up.
Communicate results, ongoing eorts and next steps.
Celebrate successes! Record and report metrics (ie.return on
investments and process eciency, value and reductions in waste
accomplished, customer satisaction, etc.).
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abouT The auThor
d. zachary misko
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D. Zachary Misko is global director o the Recruitment
Process Outsourcing (RPO) practice o Kelly
Outsourcing and Consulting Group (KellyOCG). The
group is part o Kelly Services, Inc. (NASDAQ: KELYA,
KELYB), a leader in providing workorce solutions,
headquartered in Troy, Michigan.
In this role, Misko works with Fortune 500 companies throughout the world
to develop and implement processes that improve and drive recruitment andretention solutions. Misko joined Kelly Services in 2002 with more than 15
years o human resource and management expertise in areas including direct
merchant, retail, biotechnology, lie sciences, and stang services. Within
these industries, Misko held various positions in the areas o recruitment,
employment law, employee relations, consulting, strategic human resources
planning, perormance management, training, and compensation. His
experience includes managerial posts at several companies: Promega
Corporation, Lands End, and Younkers, Inc.
Misko has earned many proessional certications, including Certied
Diversity Recruiter (CDR), Certied Internet Recruiter (CIR), and Proessional inHuman Resources (PHR). He has also completed advanced certication rom
the Department o Industry, Labor, and Human Relations.
Misko holds a bachelors degree in business administration with an emphasis
in human resources rom Carroll College in Waukesha, Wisconsin. He is
currently a member o the Society or Human Resource Management (SHRM),
the Employers Management Association (EMA), and the National Association
o Personnel Services (NAPS). He is a past president o the Metro Milwaukee
SHRM chapter. He is considered an industry expert in applying Lean
methodologies in the talent acquisition process.
Currently, Misko is a senior executive board member o Best Practice Institute
(BPI) and serves on the Advisory Board or EnticeLabs. He is also co-chair o
the Human Resource Outsource Association (HROA) Research Committee
and a member o the Human Resource Outsource Association (HROA)
Outreach and Education Committee. He has had articles published in many
print and online publications, including Workorce Management magazine,
HRO Today, Human Resource Executive magazine, and HR.com. Misko is
a contributing author to the book, Best Practices in Talent Management,
published in December 2009.
8/2/2019 LEAN Whitepaper-Embracing a LEAN Culture
23/23
abouT kelly ouTsourcing and consulTing group
KellyOCG is a global leader in innovative talent management solutions in the
areas o Recruitment Process Outsourcing (RPO), Business Process Outsourcing(BPO), Human Resources Consulting, Career Transition and Organizational
Eectiveness Consulting, Executive Search and Contingent Workorce
Outsourcing (CWO), which includes Independent Contractor Solutions. Further
inormation about KellyOCG may be ound at kellyocg.com.