PROCESS INNOVATION - Reducing Lead Time to Hire

DTE HR Talent Acquisition Team

MLC Kata Practitioner Day Event

June 16, 2016

DTE Team

• Alicia Harris-Turner

– Manager, Employment Strategy

& Compliance

• Scott Miller

– Manager, Talent Acquisition

• Scott Beltz

– CI Manager, HR

• Bill Decker

– CI Manager, CI Strategy Group

•2

• The PROCESS FRAMEWORK supports the maturity of our PROCESSES toward True North, featuring a progression

through three distinct stages:

– Process Definition

– Process Management

– Process Innovation

developing our PEOPLE in each stage:

•3

PROCESS FRAMEWORK

•4

Our Business Challenge Story

1st Coach

(Learner’s Leader)

Teaches PI through

Coaching Cycles

Supervisor & Team

2nd Coach

(Coach’s Leader)

PROCESS INNOVATION and PROCESS

MANAGEMENT RELATIONSHIP (PDCA)

Learner

(Leader responsible

for the Process)

Implements the steps

of Process Innovation

Learner

Applies PI

with Team (Front Line Leader who leads Huddles)

Works with Learner on

PI experimentation

Periodically

observes and

coaches the 1st

coach

5

PROCESS INNOVATION

Focus is on moving the Process mean (step change)

PROCESS MANAGEMENT

Focus is on process stability, and reducing

variability and eliminating waste (Little Ups)

•6

Components of Process Innovation

1. Understand the Direction – “5 x 6”. Reduce Overall Time to Fill from 85 days to 68

days by Dec. 2015. Reduce by 5 days every 6 months.

2. Conducting Process Analysis to deeply understand the Current Condition.

Understanding process conditions from Job Approval to Offer Acceptance

(Stages 1-4 of Recruiting Process)

3. Establish a Near-Term Target Condition (TC) and timing

4. Conduct PDCA cycles to remove obstacles to move toward TC

Understand the Direction

- Setting Targets

Benchmark Data

The Business Challenge for 2015

•7

Metric DTE Energy Electric Utility-Talent

Acquisition GroupBersin / Deloitte

Overall Time to Fill 85 68.2 55

Leader

Satisfaction

= 4.0

or higher

80 days by Feb 28

75 days by June 30

68 days by Dec 31

Process Analysis

•8

Recruiting Huddle Board

• High level trend of Recruiting process stages

Studying the process to deeply

understand the process stages

The PA Coaching Questions

1. Section 3B

•9

•The Coach asks the Learner the PA questions periodically

(at least weekly) during Process Analysis

Total Overall Time to Fill breakdown

and Focus

•10

Overall Time to Fill (Stages 1 - 4) – Target 85 days or less

Process Analysis: Stage 3

•11

•Go & See data:

Avg. Processing

Time - 2 days

•Go & Sees:

•Discussion with

leaders, then

pareto reasons

Stage 3 Time to Fill – Target 50 days or less

•Go & See data:

Avg. Processing

Time - 6 days

Learnings and Improvements

•12

Legacy process created too much variation and

waste. Candidate would get “stuck” in process

with no communication or feedback

•13

•Multiple steps to accomplish one

task (e.g., schedule interview, etc.)

• Dashboard to review candidates

and no system functionality

Results: Candidates lost in process; leaders were

dependent on recruiters to perform all tasks

•Manual communication to

candidates and leaders

•66 combination of “clicks” to hire an

employee

Mean: 115.12

Std Dev: 76.47

System redesigned reduced 50% of “clicks” and

enabled more functionality that improves

everyone’s experience

•14

•28 combinations of “clicks” to hire

an employee

•System automation eliminates

manual review when candidates

complete our pre-hire assessment

• Automatic notifications ensure

candidate “know” their status

•Simple interface to review and

disposition candidates

•Recruiter is notified when

leader requests interview

Results: Improved candidate experience by reducing

time and improving communications.

Learning: Talent Acquisition focus today on candidate

slate timing and quality

•15

Projects

& CI

Leaders

Applicants

Professional

Development

Postings

Networking

External

Partners

Employees

SIPOC

Qualified

Candidates

To Hires

STAGE 3

Capacity

STAGE 0, 1, 2

Full Throttle

Huddle focus: Leaders receiving the top

candidates for the open position

•16

Hiring Leader

receives top

candidatesKeep the list

manageable

Hiring Leaders can

review the entire

shortlist using the slate

approach

Prospects

Applicants

Qualified Candidates

Screened Candidates

Candidate Slate

Interviewed

Hire

•17

We aligned HR huddles to focus on Stage 3C –

Lead time to Hire

•Before – One TA Huddle •After - Stage 3C Huddles Across HR

•Corporate Staff

•DTE Gas

•DTE Electric

•Nuclear

Generation

DTE is more productive compared to peers yet we

have opportunities to reduce lead time in line with

other industries

•181. 2013 EU-Tag data included in this slide

2. Large and medium sized utilities included in this average

Electric Utility Talent

Acquisition Average2Bersin by Deloitte

(Manufacturing Sector)

68 Days 72 Days 65 Days 74 Days 50 Days

Lead Time To Fill (Approval to Offer Acceptance)

36 40 44 44 44 48 48 53 59.272 74

85 87 94

115

144

0

50

100

150

200Hires Per Staffing Employee1

Average = 71

Talent acquisition remains productive against peers, but requires significantly

more time to fill positions compared to other industries. To be Best Operated

we must continue to drive more time from our process

Peer A Peer B

Appendix

Simplify Instructions – Intuitive Software

The Hiring Leader Dashboard

green, yellow, and red.

-----

Green = Schedule Interview

Yellow = Still in Consideration

Red = Not in Consideration

NOTE: This does not provide a

final disposition only a

signal to the recruiter.

•20

Manager Review and

Interview

Schedule Interview

Still In Consideration

Not In Consideration

?

Taleo ATS Hiring Manager Dashboard

•Important Pre-reqs to Hiring Mgr Dashboard:

A. Candidate Short List

B. Reject Applicant Timely

Predictive Interview Scheduling - Timeline

•21

1

2

6

14

21

24

45

51

53

56

Y

86

33

Approval

Schedule Interview Dates

Posting / Sourcing

Last Date of Posting

Last Date of Screening

PHA

Testing

Interview

Manager Provides Feedback

Offer Accepted*

Approval

Posting / Sourcing

Last Date of Posting

Last Date of Screening

PHA

Testing

Interview

Manager Provides Feedback

Offer Accepted

Timeline ( Days)Predictive Interviewing Current StateRapid Experiment – Predictive Interview Scheduling

X

Current Average 86.65 days - Foss Gen. Time to Fill

66

Manager Reviews Candidates Manager Reviews Candidates39

* Varies from 56 to 66 days based on number of positions on a single requisition.