Eli Goldratt & the Recruitment GOAL
1
Eli Goldratt’s Theory of Constraints and the Recruitment Goal The photograph above of a hot air balloon breaking through a group of clouds is a freedom metaphor of breaking against a constraint, and rising above to achieve a goal. The Big Idea behind this unassuming potray is a methodology made famous by Dr Eliyahu Goldratt, who conceived the Theory of Constraints and introduced it to a wide audience through his 1984 novel, The Goal. The similarities of the manufacturing plant, in this fictonal story by Eli Goldratt, and many corporate recruitment departments are striking & its relevance endures even thirty years after it was written Goldratt’s Theory of Constraints applied to Talent Acquisition Shortly after the turn of the century, when Bento Boxes had become Japan’s best known contribution to the culinary world, came the widely popular conveyor belt sushi restaurants. Also known as sushi-go-rounds, the customers could simply pick little portions of fresh sushi and sashimi oftheir choice from a moving conveyor belt & pay based on the number & type of sushiportions consumed. The idea combined japanese minimalism & their loathing for wastage The Theory of Constraints thinking process similarly draws upon this minimalist approach and is built around the core that Every process has a single constraint and that the total process throughput - the rate at which the system makes money through sales can only be improved when the constraint is improved Only improvement of the constraint will further the GOAL This concept when applied to recruitments helps us understand the goal as: Achieving More Profit To maximize the number of quality hires/month for the Organization Eli Goldratt calls this “Throughput” & that there is a fixed amount of Time, Money & Resource ~ constraints that need to be optimized Time Money Resources Low Performance High Performance Average Cost per Hire Resume to Offer Time to Fill Interview to Offer Sourcing Hrs/Qualified Candidate Sourcing Channel Efficiency Offers to Hire A Staffing Supply Chain viewed through the lens of Throughput & Constraints shifts the perspective of the recruitment function from Transaction driven to a Relationship driven process What Can Talent Acquistion Learn from Eli Goldratt More is better philosophy to how efficient we are with the candidate activity in the staffing supply chain funnel Quantity & Cost Containment to Quality of Hire The Throughput is a great TA metric for these very reasons. Most importantly, it illustrates the efficiency & effectiveness of the entire recruiting process by focusing on cradle to grave hiring ratios & help identify low and high performance process zones as exhibited below RG: Revenue Growth; PM: Profit Margin; TI: Total Improvement Source: Boston Consulting Group/WFPMA - From Capability to Profitability, 2012 With Througput everyone sees the value of having a defined role and all stakeholders have a skin in the game enabling a visible bottom-line case The Recruiting function, as per the findings of a research study by BCG below, when executed well, has the highest business impact among all TM functions Recruiting Onboarding & Retention Managing Talent Performance Management Developing Leadership Employer Branding Enhancing Employee Engagement RG PM TI Focus is the essence of Theory of Constraints and using the right metrics, recruiters will be encouraged to focus their behaviours on the causes and not the symptoms of recruitment success Opportunities to analyze fix & improve Best Practices to review, share & apply 3.5x 2.0x 5.5x 2.5x 1.9x 4.4x 2.2x 2.1x 4.3x 2.4x 1.8x 4.2x 2.1x 2.0x 4.1x 2.1x 1.8x 3.9x 1.8x 1.6x 3.4x Source/Photo Credits Singkham: Shutterstock EirngKwan: Shutterstock Author Pradeep Sahay www.toc-goldratt.in en.wikipedia.org/wiki/The_Goal 3.5x 2.0x Goal Constraints Throughput
-
Upload
pradeep-sahay -
Category
Recruiting & HR
-
view
116 -
download
1
description
[INFOGRAPHIC]
Transcript of Eli Goldratt & the Recruitment GOAL
Eli Goldratt’s Theory of Constraints and the Recruitment Goal
The photograph above of a hot air balloon breaking through a group of clouds is a freedom metaphor ofbreaking against a constraint, and rising above to achieve a goal. The Big Idea behind this unassumingpotray is a methodology made famous by Dr Eliyahu Goldratt, whoconceived the Theory of Constraints and introduced it to a wide audience through his 1984 novel, The Goal. The similarities of the manufacturing plant, in this fictonal story by Eli Goldratt, and many corporate recruitment departments are striking & its relevance endures even thirty years after it was written
Goldratt’s Theory of Constraints applied to Talent Acquisition
Shortly after the turn of the century, whenBento Boxes had become Japan’s best knowncontribution to the culinary world, came the widely popular conveyor belt sushi restaurants.Also known as sushi-go-rounds, the customers could simply pick little portions of fresh sushi and sashimi oftheir choice from a movingconveyor belt & pay based on the number & type of sushiportions consumed. The idea combined japanese minimalism & their loathing for wastage
The Theory of Constraints thinking process similarly draws uponthis minimalist approach and is built around the core that
Every process has a single constraint and that thetotal process throughput - the rate at whichthe system makes money through sales can only beimproved when the constraint is improved
Only improvement of the constraint will further the GOAL
This concept when applied to recruitments helps us understand the goal as:
Achieving More Profit
To maximize the number of quality hires/month for the Organization Eli Goldratt calls this “Throughput”
&that there is a fixed amount of Time, Money & Resource ~ constraints that need to be optimized
Time Money Resources
Low Performance High Performance
Average Cost per HireResume to Offer
Time to FillInterview to Offer
Sourcing Hrs/Qualified CandidateSourcing Channel Efficiency
Offers to Hire
A Staffing Supply Chain viewed through the lens of Throughput & Constraints shifts the perspective of the recruitment function from
Transaction driven to a Relationship driven process
What Can Talent Acquistion Learn from Eli Goldratt
More is better philosophy to how efficient we are with the candidate activity in the staffing supply chain funnel
Quantity & Cost Containment to Quality of Hire
The Throughput is a great TA metric for these very reasons. Most importantly, it illustrates the efficiency & effectiveness of the entire recruiting process by focusing on cradle to grave hiring ratios & help identify low and high performance process zones as exhibited below
RG: Revenue Growth; PM: Profit Margin; TI: Total ImprovementSource: Boston Consulting Group/WFPMA - From Capability to Profitability, 2012
With Througput everyone sees the value of having a defined role and all stakeholders have a skin in the game enabling a visible bottom-line caseThe Recruiting function, as per the findings of a research study by BCG below, when executed well, has the highest business impact among all TM functions
Recruiting
Onboarding & Retention
Managing Talent
Performance Management
Developing Leadership
Employer Branding
Enhancing Employee Engagement
RG PM TI
Focus is the essence of Theory of Constraints and using the right metrics, recruiters will be encouraged to focus their behaviours on the causes and not the symptoms of recruitment success
Opportunities to analyze fix & improve
Best Practices to review, share & apply
3.5x 2.0x 5.5x
2.5x 1.9x 4.4x
2.2x 2.1x 4.3x
2.4x 1.8x 4.2x
2.1x 2.0x 4.1x
2.1x 1.8x 3.9x
1.8x 1.6x 3.4x
Source/Photo CreditsSingkham: Shutterstock EirngKwan: Shutterstock
AuthorPradeep Sahay
www.toc-goldratt.inen.wikipedia.org/wiki/The_Goal
3.5x 2.0x
Goal Constraints
Throughput
