When Lean/CI Comes to Your Organization, Can Compensation and HR Practices Be Far Behind?

Lean/Continuous Improvement, Six Sigma and other quality and continuous improvement initiatives are increasingly being adopted by industries outside of manufacturing like healthcare. Lean concepts are founded in the Toyota Production System. Lean processes offer benefits in terms of quality, safety, productivity and cost. The core of the approach, however, is Human Development. The key to success is to change the organization’s culture to one of Continuous Improvement rather than merely using the Lean “tools” for finding and eliminating “waste” in processes. People want to make valuable contributions to the world, and the capacity to improve is limitless.
Human Resources is not always involved in these operational initiatives, but is HR missing a big opportunity? Applying Lean processes in Compensation and Human Resources functions, can free-up time to work with managers on important facilitation and employee engagement issues. Human Resources has many opportunities to streamline the many processes it undertakes.
More importantly though, HR can enhance its role and its importance to operational managers. By incorporating Lean into compensation-related tools like job documentation and design, merit increases and performance assessment, HR can help to build a Lean Culture of Continuous Improvement. The use of incentive pay or bonuses, whether short-term, long-term or spot bonuses, can dramatically capture employee attention and encourage innovative ideas.
We encourage Heads of HR, Compensation Managers and other HR professionals to attend this presentation in order to learn more about Lean/Continuous Improvement, why this is an important undertaking for HR and some examples of how an organization can begin to implement these approaches.

Executives contemplating implementing Lean, Heads of HR, Compensation Managers and other HR professionals

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Read Lindalee Lawrence (Certified in Lean in Healthcare) and Laurie Peck of Beth Israel Deaconess Medical Center on Lean in Healthcare Comes to Human Resources, Lean Principles and How They Apply to Human Resources. Watch Laurie Peck on video (ThedaCare Center for Healthcare Value). View our new page on Lean initiatives and resources. Karen Auge, “Denver Health Saves Millions using Toyota Efficiency Principle”, The Denver Post, 2010. Mark Graban, Lean Hospitals: Improving Quality, Patient Safety, and Employee Satisfaction, CRC Press, 2008. John Grout, “Mistake-proofing the design of health care processes”, (Prepared under an IPA with Berry College). AHRQ Publication No. 07-0020. Rockville, MD: Agency for Healthcare Research and Quality; May 2007. Cheryl M. Jekiel, “Lean Human Resources, Redesigning HR Processes for a Culture of Continuous Improvement”, CRC Press, 2011. Charles Kenney, Transforming Health Care: Virginia Mason Medical Center's Pursuit of the Perfect Patient Experience, CRC Press, 2010 (Forward by Donald Berwick) Jeffrey K. Liker, “Human Resource Development in the Toyota Culture” , 2008 Industry Month Guide. Brian Reed, Interview with Michael Casper, Justin Gillmor, Becky Gillmor, and Ravin Jesuthasan. All Things Considered, NPR November 23, 2009. Shigeo Shingo, Zero Quality Control: Source Inspection and the Poka-yoke System, Japan Management Association, 1985 Monica W. Tracey and Jamie Flinchbaugh “How Human Resource Departments Can Help Lean Transformation” Target Volume 22, Number 3, Third Issue 2006, 5- 10. John Toussaint and Roger Gerard, On the Mend, Lean Enterprise Institute, 2010.

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