On this topic, K C Gauldine interviewed Human Resources generalist Karl Ahlrichs, Senior Consultant at Gregory & Appel in Indianapolis, Indiana. Ahlrichs holds HR’s highest certification and was named HR Professional of the Year for the State of Indiana.
Gauldine:
Does L.E.A.N really stand for Less Employees Are Needed? In other words, must head count reduction be part of any productivity initiative?
Ahlrichs:
Of course the prospect of head count reduction is scary to people on the factory floor and to those who are face-to-face with customers. Reality is, productivity gives us one of two gifts: Either we can deliver the same volume and quality of goods and services with fewer people doing the work, OR – we can deliver more volume and quality and grow using the same number of people. It is a matter of which business strategy you choose.
Everyone has been puzzled with the so-called jobless recovery, but the answer lies in our productivity numbers. In fact, as the Bureau of Labor Statistics chronicles, “Labor productivity rose in 77% of the 57 detailed manufacturing industries and 3 of the 4 detailed mining industries covered in 2014.” Most organizations over the last five years have grown cash reserves, grown their bottom line, and have not added people. LEAN has had a hand in that.
Gauldine:
Does pursuing LEAN stifle innovation?
Ahlrichs:
LEAN is the next generation of Six Sigma, which grew out of statistical process control, which in turn was the next generation of time motion study. Now, LEAN is starting to be rebranded as AGIL, which I like, because a company that spends all its time documenting for Six Sigma can lose its creative edge. Yes, LEAN is about getting rid of waste and wasted effort, but that very act requires creativity.
After a LEAN initiative, an organization ought to be more creative or at least have the ability to react quickly and with creativity. If you are doing LEAN right, you’re always examining everything.
Gauldine:
So why does LEAN matter in the HR world?
Ahlrichs:
There are really two kinds of HR: Traditional and New Model, the latter of which is a LEAN concept. The traditional model is centralized and administrative. In the LEAN model, administrative functions go to Administration; employee relations go to Department Supervisors; and vision, strategy, talent management and alignment go to Organizational Development – which should report to the CEO/President.
Gauldine:
The implementation of LEAN HR is driven by alignment, linking the five key elements of an organization: People, Process, Customers, Business Strategies, and Leadership. Sustained growth and profit, loyal customers and a high-performing work force are the rewards of alignment. LEAN, if done properly, engages employees and achieves sustainable performance improvement and ongoing culture change.
The strength of LEAN comes from involving everyone in finding ways to improve. Given the pressures on HR to reduce costs and improve effectiveness, there has never been a better time to start down the path of continuous improvement. To do so will require courage to ask questions and wait for answers, challenge the status quo, and be constantly vigilant for opportunities to make large and small changes in the way you work.
LEAN takes a “bottom-up” approach to address issues that your organization is facing each day in the course of normal activities. LEAN does not mean less – it means more!
LEAD Management Consulting, LLC provides process improvement, project management resources and change management services to mid to large corporations and the State of Indiana. LEAD has earned its trusted reputation by delivering extraordinary industry knowledge and expertise, producing results that make a difference.
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K C Gauldine is an accomplished leader with thirty years of C-level experience in business, social enterprise, entrepreneurial and nonprofit enterprises.